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EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
16. Investments in subsidiaries (continued)
Acquisitions of subsidiaries
On 25 August 2015, the Group acquired 100% of equity interest in Hangzhou Chongxian Port Investment Co.,
Ltd., Hangzhou Chongxian Port Logistics Co., Ltd., Hangzhou Bei Gang Logistics Co., Ltd., and Hangzhou Fu Zhuo
Industrial Co., Ltd. for considerations of RMB956,500,000 (equivalent to S$209,760,000).
On 9 September 2015, the Group acquired 100% of equity interest in Hangzhou Fu Heng Warehouse Co., Ltd. for
consideration of RMB168,900,000 (equivalent to S$37,462,000).
On 6 November 2015, the Group acquired 100% of equity interest in Zhejiang Hengde Sangpu Logistics Co., Ltd.
for consideration of RMB250,000,000 (equivalent to S$55,375,000).
The cash flow and net assets of the subsidiaries acquired are provided below:
Cost recognised
on acquisition
2015
S$'000
Investment properties (Note 14)
448,676
Investment properties under development (Note 15)
50,693
Trade and other receivables
259,088
Cash and cash equivalents
50,895
Deferred income tax assets – net (Note 19)
1,947
811,299
Trade and other payables
(230,729)
Current income tax payable
(2,395)
Government grants
(788)
Borrowings
(274,790)
Total liabilities
(508,702)
Total identifiable net assets
302,597
Consideration transferred for acquisition:
Purchase consideration
302,597
Less: Exchange gain – unrealised
(3,172)
Purchase consideration due to Sponsor
299,425