ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 212 Focused 34. BUSINESS COMBINATION (continued) (c) Acquisition of subsidiaries that are not business (continued) On the acquisition date, there were no other material assets and liabilities carried by Langfang Hongke other than cash and bank balances and investment properties. The transaction was accounted for as an asset acquisition. Wuxi Lekun Kawajima Shanghai Yibian Langfang Hongke USD’000 USD’000 USD’000 USD’000 Net assets acquired: Cash and bank balances 1,344 1,946 1,279 114 Trade receivables 10 – 4 – Prepayments, other receivables and other assets 70 – 5 4 Property, plant and equipment – – 176 – Investment properties 63,342 82,673 12,685 7,155 Bank and other borrowings (24,873) – – – Trade payables, accruals and other payables (1,302) (1,946) (184) – 38,591 82,673 13,965 7,273 Satisfied by: Cash 38,591 82,673 13,965 6,477 Consideration payable – – – 796 38,591 82,673 13,965 7,273 An analysis of the cash flows in respect of the acquisition of subsidiaries are as follows: Wuxi Lekun Kawajima Shanghai Yibian Langfang Hongke USD’000 USD’000 USD’000 USD’000 Cash consideration (38,591) (82,673) (13,965) (6,477) Cash and bank balances acquired 1,344 1,946 1,279 114 Net outflow of cash and cash equivalents included in cash flows used in investing activities (37,247) (80,727) (12,686) (6,363)