Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

ACQUISITION

v3.7.0.1
ACQUISITION
 12 Months Ended
Mar. 31, 2017
ACQUISITION  
ACQUISITION

(21)ACQUISITION

 

On September 12, 2016, the Group acquired 60% equity interest in Puhua Technology by injection of RMB 2.0 million in cash. Puhua Technology is primarily engaged in technology development and online education consulting business.  As of March 31, 2017, RMB 2.0 million has been fully paid to Puhua Technology. This acquisition was accounted for under the acquisition method and resulted in Puhua Technology becoming a consolidated subsidiary of the Group.

 

The acquired business contributed net revenue of RMB 71,349 and net loss of RMB 633,513 to the Group for the period from September 12, 2016 to March 31, 2017.

 

The following table summarizes the consideration paid to acquire Puhua Technology and the amount of identifiable assets acquired and liabilities assumed at the acquisition date:

 

 

 

As of September 12, 2016

 

 

 

RMB

 

Fair value of consideration transferred:

 

 

 

Cash paid

 
2,000,000

 

Fair value of non-controlling interests

 
1,333,333

 

Fair value of identifiable assets acquired and liabilities assumed:

 

 

 

Cash

 
2,411,583

 

Other receivables and prepayments

 
746,009

 

Other non-current assets

 
16,848

 

 

 

 

 

Total assets acquired

 
3,174,440

 

Other liabilities

 
(1,353,188

)

 

 

 

 

 

 

 

 

Amount of identifiable net assets

 
1,821,252

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 
1,512,081

 

 

 

 

 

 

The goodwill represents the workforce of the acquired business and synergies expected to arise after the Group’s acquisition of Puhua Technology and expanding the product offering of testing services. All of the goodwill was assigned to the enterprise level.