Huawei: it has received a deposit of RMB 10 billion paid by the buyer for the sale of glory

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    On March 31, Huawei released its 2020 annual report. According to the report, in 2020, Huawei’s sales revenue was 891.4 billion yuan, a year-on-year increase of 3.8%, and its net profit was 64.6 billion yuan, a year-on-year increase of 3.2%.
    In addition, the annual report also disclosed Huawei’s progress in selling glory. Huawei has received a deposit of 10 billion yuan from the buyer for the sale of glory. The original 100% equity of glory Terminal Co., Ltd. was changed to Shenzhen Zhixin on November 17, 2020. Affected by the epidemic situation, the delivery of relevant assets will be completed no later than June 30, 2021.
    The following is the announcement in the annual report:
    This year, the group reached an agreement with Shenzhen Zhixin new information technology Co., Ltd. (“Shenzhen Zhixin”) to sell the glory business (an important brand and component of the group’s consumer business) to Shenzhen Zhixin. The original 100% equity of Group subsidiary glory Terminal Co., Ltd. (glory terminal) was changed to Shenzhen Zhixin on November 17, 2020. Affected by the epidemic situation, the delivery of relevant assets will be completed no later than June 30, 2021.
    According to the agreement, Shenzhen Zhixin will pay the consideration for the acquisition of glory business in installments, and the consideration that the group can ultimately obtain is uncertain based on the terms of the agreement. The sale deposit of RMB 10000 million received by the group in this year is included in the “other liabilities” in the consolidated statement of financial position and listed in the investment activities in the consolidated statement of cash flow. On December 31, 2020, the assets and liabilities involved in the sale to be delivered are presented as “assets held for sale” under “other assets” and “liabilities directly related to assets held for sale” under “other liabilities”.