0175 Geely Automobile Holdings Limited Annual Report 2011

Annual Report 2011Geely Automobile Holdings LimitedNOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTSFor the year ended 31 December 201138. Acquisition of Assets and Liabilities Through Acquisition of SubsidiariesOn 21 January 2011, the Company entered into agreements with Zhejiang Geely Holding Group Company Limitedand its subsidiary to acquire 100% interests in Ningbo Vision Automobile Parts and Components Company Limited(“Ningbo Vision”) and Shandong Geely Gearbox Company Limited (“Shandong Geely”) for cash considerations ofRMB437.3 million and RMB20 million respectively. There is a further capital injection of RMB80 million for ShandongGeely immediately after the completion of its acquisition. The acquisition of Ningbo Vision and Shandong Geelywas completed during the year. Details of the acquisition have been set out in the Company’s announcementdated 21 January 2011.Ningbo Vision and Shandong Geely have not engaged in any operating activities, and did not have sufficientworkforce and all necessary plant and equipment ready for production at the acquisition dates and the acquisitionwas accounted for as purchases of assets and liabilities of which no goodwill was recognised.The assets and liabilities acquired in the acquisition of Ningbo Vision and Shandong Geely at the acquisitiondates are as follows:The assets and liabilities acquired:Carrying amountRMB’000Property, plant and equipment 541,776Intangible assets 155,839Prepaid land lease payments 194,003Trade and other receivables 41,038Inventories 7,732Cash and cash equivalents 59,319Trade and other payables (542,365)457,342Total consideration satisfied by:Cash 457,342Net cash outflow arising on acquisition:Cash consideration paid (457,342)Bank balances and cash acquired 59,319(398,023 )123