annual_report_2019_en

120 Huawei Investment & Holding Co., Ltd.

For impairment test purposes, the recoverable amounts of the CGUs are based on value-in-use calculations

by using a discounted cash flow model. The calculations use cash flow projections based on financial budgets

approved by management covering a five-year period, based on industry knowledge. Cash flows beyond the

five-year periods are extrapolated using an estimated growth rate which does not exceed the long-term average

growth rate for the business in which the CGU or group of CGUs operates. Cash flows are discounted using

pre-tax discount rates that reflect specific risks relating to respective CGU or group of CGUs.

As at December 31, 2019 and 2018, all of the carrying amount of goodwill is allocated across multiple CGUs and

the amount so allocated to each unit is not significant.

The Group performed the impairment test for the year ended December 31, 2019 and did not consider further

impairment to the remaining goodwill is required.

(c) As at December 31, 2019 and 2018, the Group did not hold any intangible assets whose title is restricted or

pledged as security for liabilities.

15 Property, plant and equipment

(CNY million)

Freehold

land

Buildings Machinery

Electronic

and other

equipment

Motor

vehicles

Construction

in progress

Investment

property

Decoration

and

leasehold

improvements

Total

Cost:

At January 1, 2018 296 16,702 17, 0 6 8 31,373 579 14,819 172 12,903 93,912

Exchange adjustments (3) (18) (8) (134) (9) (30) (2) (38) (242)

Additions 141 798 2,911 11, 262 38 14,730 213 433 30,526

Acquisition of subsidiaries – – 16 18 – – – 4 38

Transfer from construction

in progress

• 4,569 2,837 1,898 – (14,458) – 5,154 –
  Transferred from investment
  property


• 60 – – – – (60) – –
  Disposals – – (164) (1,658) (43) (63) – (140) (2,068)
  Hyperinflation adjustments – – – 109 1 – – 21 131
  At December 31, 2018 434 2 2,111 22,660 42,868 566 14,998 323 18,337 122,297
  At January 1, 2019 434 22,111 22,660 42,868 566 14,998 323 18,337 122,297
  Exchange adjustments 16 24 20 193 (2) (16) 25 66 326
  Additions 1 227 4,230 4,138 84 32,330 – 108 41,118
  Acquisition of subsidiaries – – – 1 – – – 1 2
  Transfer from construction
  in progress


• 4,759 6,547 16,934 3 (33,229) – 4,986 –
  Disposals – (385) (446) (1,528) (60) (108) – (415) (2,942)
  Reclassified as assets held
  for sale


• – (18) (20) (1) (1) – (2) (42)
  Hyperinflation adjustments – – 1 72 1 – – 16 90
  At December 31, 2019 451 26,736 32,994 62,658 591 13,974 348 23,097 160,849