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104 Notes to the Consolidated Financial Statements Summary
Huawei Longshine from Longshine Information
Technology Company Limited (“Longshine
Information”) for a consideration of CNY116
million. As a result of this acquisition, the
Group’s equity interest in Beijing Huawei
Longshine increased from 52% to 100% and
Beijing Huawei Longshine became a wholly-
owned subsidiary of the Company.
Beijing Huawei Longshine is a China-based
company established in 1996. Beijing Huawei
Longshine is principally engaged in production
and sale of network communication products,
computer hardware and software and provision
of related services.
In the period from the acquisition date to
December 31, 2012, Beijing Huawei Longshine
contributed revenue of CNY130 million and
profit of CNY13 million to the Group’s results.
If the acquisition had occurred on January 1,
2012, management estimate that consolidated
revenue would have been increased by CNY130
million, and consolidated profit for the year
would have been decreased by CNY9 million.
In determining these amounts, management
have assumed that the fair value adjustments
that arose on the acquisition date would have
been the same if the acquisition had occurred
on January 1, 2012.
The above acquisitions had the following effect on the Group’s assets and liabilities on the acquisition date:
Recognised values on acquisition
2013 2012
Caliopa Fastwire Huawei
Digital HK
Beijing
Huawei
Longshine
CNY million CNY million CNY million CNY million
Note 29(c)(i) Note 29(c)(ii) Note 29(c)(iii) Note 29(c)(iv)
Property, plant and equipment 2 1 88 2
Available-for-sale financial assets – – 26 –
Intangible assets 26 116 375 92
Trade and other receivables 5 7 509 62
Inventories – – 543 16
Cash and cash equivalents 3 1 1,025 33
Trade and other payables (15) (15) (1,629) (24)
Borrowings –(1) (170) (63)
Defined benefit obligations – – (313) –
Deferred tax liabilities (1) –(61) (14)
Total net identifiable assets 20 109 393 104
Acquisition-related costs 1 3 28 –
Consideration, satisfied by cash 56 117 3,337 116
Analysis of the net outflow of cash and cash
equivalents in respect of the acquisitions:
Cash consideration paid 53 117 3,337 116
Cash and cash equivalents acquired (3) (1) (1,025) (33)
Net cash outflow 50 116 2,312 83