NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2022 19. BUSINESS COMBINATION (continued) Acquisition of subsidiaries that are not businesses (continued) The Group also acquired the following subsidiaries during the period ended 30 June 2022 for a total consideration of US$32,892,000: Name of subsidiaries acquired Equity interest acquired Month of acquisition Hainan Hujiang Enterprise Management Co., Ltd 100% January 2022 Shanghai Zhaoran Enterprise Management Co., Ltd 75% January 2022 Foshan Rongjin Food and Beverage Co., Ltd 75% June 2022 Sanhe City Yiyang E-commerce Industrial Park Co., LTD 87.3% June 2022 On the acquisition date, there were no other material assets and liabilities other than those disclosed in the table below. The transactions were accounted for as an asset acquisition. Net assets acquired US$’000 Net assets acquired Investment properties 52,922 Cash and bank balances 5,263 Prepayments, other receivables and other assets 44 Deferred tax assets 16 Trade payables, accruals and other payables (22,238) Non-controlling interests (3,115) 32,892 Satisfied by Cash 14,812 Consideration payable 18,080 32,892 An analysis of the cash flows in respect of the acquisition of subsidiaries are as follows: Cashflow on acquisition US$’000 Cash consideration (14,812) Cash and bank balances acquired 5,263 Net outflow of cash and cash equivalents included in cash flows related to investing activities (9,549) E S R G R O U P L I M I T E D I N T E R I M R E P O R T 2 0 2 2 75
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