ESR Interim Report 2020 (EN)

Notes to Condensed Consolidated Financial Information 30 June 2020 60 17. BUSINESS COMBINATION Acquisition of subsidiaries that are not business The Group acquired the following subsidiaries during the six months ended 30 June 2020 for a total consideration of US$60,775,000: Name of subsidiaries acquired Equity interest acquired Month of acquisition Chung-Kang Steel Structure (Kunshan) Co., Ltd. 100% May 2020 Jurong Xiexin Yuncang Technology Co., Ltd. 100% June 2020 Xuzhou Xiexin Yuncang Logistics Technology Development Co., Ltd. 100% June 2020 On the acquisition date, there were no other material assets and liabilities other than those disclosed in the table below. The transactions were accounted for as an assets acquisitions. Net assets acquired US$’000 Net assets acquired: Cash and bank balances 1,972 Trade receivables 2,662 Prepayments, other receivables and other assets 34,637 Investment properties 124,187 Bank and other borrowings (58,636) Trade payables, accruals and other payables (44,047) 60,775 Satisfied by: Cash 18,183 Receivable from previous shareholder of the acquired subsidiary (30,429) Consideration payable 73,021 60,775 An analysis of the cash flows in respect of the acquisition of subsidiaries are as follows: Cashflow on acquisition US$’000 Cash consideration (18,183) Cash and bank balances acquired 1,972 Net outflow of cash and cash equivalents included in cash flows used in investing activities (16,211)