NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 5. INVESTMENT IN SUBSIDIARIES AND AMOUNTS DUE FROM/(TO) SUBSIDIARIES (CONT’D) Acquisition of businesses in 2025 (cont’d) Acquisition of business in United States (cont’d) (i) Chicago Communications, Inc (cont’d) Provisional accounting of the acquisition of asset and business The purchase price allocation of the acquisition of asset and business in the financial year ended 31 December 2025 was provisional as the Group had sought a valuation for the acquisitions. The results of this valuation had not been finalised at the date the 2025 financial statements were authorised for issue. Goodwill arising from acquisition The goodwill arising from the acquisition of Chicago Communications comprises the value of expanding and strengthening the Group’s market position in provision of radio communication business and solutions in the United States. Acquisition of businesses in 2024 Acquisition of business in United States (i) RFC Wireless, Inc In July 2024, a wholly-owned subsidiary of the Group, CSE Crosscom USA, Inc acquired 100% of the issued share capital in RFC Wireless, Inc (“RFC”) for a consideration of USD 10.7 million (approximately $14.3 million). The acquisition allowed the Group to expand and extend its existing radio communication business and solutions to its customers in the United States. The fair values of the identifiable assets and liabilities acquired as follows: Fair value recognised on acquisition $’000 Customer relationships 6,172 Property, plant and equipment 238 Inventories 454 Trade and other receivables 2,727 Cash and bank balances 714 Total assets 10,305 Contract liabilities (770) Trade and other payables (2,273) Loans and borrowings (36) Total liabilities (3,079) Total identifiable net assets at fair value 7,226 Goodwill arising from acquisition 7,119 Cash paid on acquisition 14,345 Less: cash and bank balances (714) Cash paid on acquisition, representing net cash outflow on acquisition 13,631 ANNUAL REPORT 2025 151
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