annual_report_2019_en

122 Huawei Investment & Holding Co., Ltd.

16 Long-term leasehold prepayments

(CNY million) 2018

At January 1 5,152

Additions 1,876

Amortisation for the year (132)

At December 31 6,896

On transition to IFRS 16, the long-term leasehold prepayments which represent the premium, resettlement fee

and taxes paid in relation to acquisition of the underlying land use right, were reclassified as right-of-use assets

at January 1, 2019. See note 4.

17 Interests in associates and joint ventures

Associates A Joint venture Total

(CNY million) 2019 2018 2019 2018 2019 2018

Material 497 486 – – 497 486

Immaterial 195 36 57 58 252 94

Subtotal 692 522 57 58 749 580

Less: impairment loss (18) (18) – – (18) (18)

Total 674 504 57 58 731 562

Associates and the joint venture are accounted for using the equity method.

Particulars of the material associate, which is an unlisted corporate entity whose quoted market price is not

available, are set out below:

Name of associate

Form of business

structure

Place of

incorporation

and business

Proportion of ownership

interest

Principal activities

2019 2018

Associate

TD Tech Holding Limited

(TD Tech)

Incorporated Hong Kong, PRC 49% 49% Note

Note: TD Tech’s principal activity is to provide wireless enterprise solution for vertical market.