NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
133
CITIC ENVIROTECH LTD.
Annual
Report
2015
40 ACQUISITION OF SUBSIDIARIES
The Group acquired the following subsidiaries and accounted for the acquisition using the acquisition
method of accounting:
For the financial year ended December 31, 2015
The Group acquired 100% equity interest of Gaoyang Bishuilantian Water Co. Ltd. and its subsidiary,
businesses and assets (“Gaoyang BSLT”) (the “Acquisition”) for a total cash consideration of
approximately RMB353,720,000 (equivalent to $77,868,000). The effective date of the completion of
the acquisition, as determined by management, is April 1, 2015.
Gaoyang BSLT is a private entity incorporated in China. Its principal activity is the operation of water
treatment plant. The Group acquired the Gaoyang BSLT primarily to strengthen and value add its
core business strategically.
The Group acquired 70% equity interest of PT Sumut Tirta Resource Co Ltd (“PT Sumut”) for a
total cash consideration of approximately $8,234,000. The effective date of the completion of the
acquisition, as determined by management, is November 1, 2015.
PT Sumut is a private entity incorporated in Indonesia. Its principal activity is the operation of water
treatment plant. The Group acquired the PT Sumut primarily to strengthen and value add its core
business strategically.
Details of the fair value of consideration transferred, assets acquired and liabilities assumed at the
date of acquisitions are as follows:
Gaoyang
BSLT PT Sumut
Total
$’000
$’000
$’000
Cash and bank balances
–
2
2
Trade receivables
–
9,160
9,160
Other receivables and prepayments
125
765
890
Prepaid lease
30,732
–
30,732
Property, plant and equipment
29
43
72
Service concession receivable
67,583
–
67,583
Intangible assets
34,896
2,461
37,357
Bank loans
(50,471)
–
(50,471)
Trade payables
(26)
(1,588)
(1,614)
Other payables
–
(39)
(39)
Income tax payable
–
(104)
(104)
Deferred tax liabilities
(5,000)
–
(5,000)
Net assets acquired
77,868
10,700
88,568
Less: Non-controlling interest
–
(2,466)
(2,466)
Total consideration paid
77,868
8,234
86,102
