In HK$ million The Group
2014 Trademarks Content licence and capitalized programme costs Wireless broadband licences Carrier licences Customer acquisition costs Customer
base Software Others Total Cost
Beginning of year 1,595 324 436 956 3,225 52 686 45 7,319
Additions – 192 – 108 2,558 – 296 4 3,158
Additions upon business combinations 1,343 – – 2,332 – 2,716 – – 6,391
Disposal of interests in subsidiaries (note 42) – – – – – – – (31) (31)
Write-off – (33) – – (1,796) – – – (1,829)
Exchange differences (9) – (24) – – (6) – – (39)
End of year 2,929 483 412 3,396 3,987 2,762 982 18 14,969
Accumulated amortization and impairment
Beginning of year 1,018 193 220 433 1,797 8 68 8 3,745
Charge for the year (note b) 128 160 27 353 1,827 307 71 – 2,873
Write-off – (33) – – (1,796) – – – (1,829)
Exchange differences (1) – (14) – – – – – (15)
End of year 1,145 320 233 786 1,828 315 139 8 4,774
Net book value
End of year 1,784 163 179 2,610 2,159 2,447 843 10 10,195
Beginning of year 577 131 216 523 1,428 44 618 37 3,574
a. During the year ended December 31, 2014, the Group has completed an internal reorganization in connection with the acquisition
of CSL Holdings Limited (formerly known as CSL New World Mobility Limited) and its subsidiaries (together the “CSL Group”). As a result, management has made changes to the Group’s internal reporting that caused changes to intangible assets presentation. The prior year information has been restated to conform with the revised presentation.
b. The amortization charge for the year is included in “General and administrative expenses” in the consolidated income statement.
21 INTERESTS IN SUBSIDIARIES
In HK$ million The Company
2013 2014
Unlisted shares, at cost 132,425 137,400
Capital contribution in respect of employee share-based compensation 276 276
132,701 137,676
Less: Provision for impairment in value (120,612) (120,604)
The provision for impairment in value of approximately HK$120,604 million (2013: HK$120,612 million) relates to certain subsidiaries of the Company.
Dividends from the People’s Republic of China (the “PRC”) entities accounted for as subsidiaries will be declared based on the profits in the statutory financial statements of these PRC entities which are prepared using accounting principles generally accepted in the PRC. Such profits may be different from the amounts reported under HKFRSs.
a. As at December 31, 2014, particulars of the principal subsidiaries of the Company are as follows:
Company name
Place of incorporation/
operations Principal activities
Amount of issued capital/registered capital Interest held by the Company non- controlling interests Directly Indirectly
HKT Limited Cayman Islands/ Hong Kong
Investment holding HK$3,785,871.167 ordinary shares and HK$3,785,871.167 preference shares
– 63.1% 36.9%
HKT Group Holdings Limited3
(“HKTGH”)
Cayman Islands Investment holding US$636,000,005 – 63.1% 36.9%
Hong Kong Telecommunications (HKT) Limited3 (“HKTL”)
Hong Kong Provision of telecommunications services HK$2,488,200,001 – 63.1% 36.9%
HKT Services Limited3 Hong Kong Provision of management services to group
companies
HK$1 – 63.1% 36.9%
Esencia Investments Limited British Virgin Islands Investment holding US$1 – 100% – Great Epoch Holdings Limited British Virgin Islands Investment holding US$1 – 100% – PCCW-HKT Technical Services
Limited
Hong Kong Provision of technical support services, electronics and communications engineering, products and solutions
HK$700,002 – 100% –
CSL Mobile Limited3
(formerly known as PCCW Mobile HK Limited)
Hong Kong Provision of mobile services to its customers, which is procured from HKTL, and the sale of mobile phones and accessories
HK$7,900,280,100 ordinary shares and HK$1,254,000,000 non-voting deferred
shares
– 63.1% 36.9%
PCCW Media Limited Hong Kong Provision of pay television programme services, interactive multimedia services, the sale of advertising in various telephone directories, the publishing of those directories in Hong Kong and the sale of advertising on the Internet
HK$5,507,310,269 ordinary shares, HK$1 “A” Class share and HK$4 “B” Class shares
– 100% –
PC Music Holdings Limited British Virgin Islands Investment holding US$11 – 100% – PCCW Productions Limited Hong Kong Production of content for different media HK$2 – 100% – PCCW Teleservices (Hong Kong)
Limited3
Hong Kong Provision of customer relationship management and customer contact management solutions and services
HK$350,000,002 – 63.1% 36.9%
PCCW Teleservices Operations (Hong Kong) Limited3
Hong Kong Provision of customer relationship management and customer contact management solutions and services
HK$2 – 63.1% 36.9%
廣州電盈綜合客戶服務技術發展 有限公司1, 3
(PCCW Customer Management Technology and Services (Guangzhou) Limited*)
The PRC Customer service and consultancy HK$93,240,000 – 63.1% 36.9%
PCCW (Macau), Limitada2, 3 Macau Selling customer premises equipment and related
solutions, conducting systems integration projects and providing outsourced call center services
MOP2,000,000 – 47.3% 52.7%
Company name
Place of incorporation/
operations Principal activities
Amount of issued capital/registered capital Interest held by the Company non- controlling interests Directly Indirectly
PCCW Global B.V.3 Netherlands/France Sales, distribution and marketing of integrated global
communications solutions and products of PCCW Global Limited and PCCW Global (HK) Limited
EUR18,000 – 63.1% 36.9%
PCCW Global (HK) Limited3 Hong Kong Provision of satellite-based and network-based
telecommunications services
HK$10 – 63.1% 36.9%
PCCW Global Limited3 Hong Kong/Dubai
Technology and Media Free Zone
Provision of network-based telecommunications services
HK$167,743,479 – 63.1% 36.9%
PCCW Global, Inc.3 Delaware, U.S. Supply of broadband internet access solutions and
web services
US$18.01 – 63.1% 36.9%
HKT Global (Singapore) Pte. Ltd.3 Singapore Provision of telecommunications solutions related
services
S$60,956,485.64 – 63.1% 36.9%
Gateway Global Communications Limited3
United Kingdom Provision of network-based telecommunications services to customers, and the provision of sales and marketing services to related companies
GBP1 – 63.1% 36.9%
電訊盈科（北京）有限公司1
(PCCW (Beijing) Limited*)
The PRC Systems integration, consulting and informatization project
US$10,250,000 – 100% –
PCCW Solutions Limited Hong Kong Provision of computer services and IP/IT related value-added services to business customers
HK$36,294,067.89 – 100% –
電訊盈科信息技術（廣州） 有限公司1
(PCCW Solutions (Guangzhou) Limited*)
The PRC Systems integration and technology consultancy HK$12,600,000 – 100% –
PCCW Business eSolutions Limited Hong Kong Provision of IP/IT related value-added services to business customers
HK$2 – 100% –
PCCW Powerbase Data Center Services (HK) Limited
Hong Kong Provision of data center services HK$2 – 100% –
Power Logistics Limited Hong Kong Logistics, printing, business process and ICT solutions
HK$100,000 – 100% –
Pacific Century Premium Developments Limited
Bermuda/Hong Kong Investment holding HK$201,334,156.50 – 70.8% 29.2%
Cyber-Port Limited4 Hong Kong Property development HK$2 – 70.8% 29.2%
Talent Master Investments Limited4 British Virgin Islands/
Hong Kong
Property development US$1 – 70.8% 29.2%
Nihon Harmony Resorts KK4 Japan Ski operation JPY405,000,000 – 70.8% 29.2%
Harmony TMK4 Japan Property development JPY100,000,000
specified shares and JPY4,150,000,000 preferred shares
– 70.8% 29.2%
PT Prima Bangun Investama4 Indonesia Property development and management US$26,000,000 – 70.8% 29.2%
Phang-nga Leisure Limited2, 4 Thailand Property holding and leasing THB2,000,000 – 27.6% 72.4%
Phang-nga Paradise Limited2, 4 Thailand Property holding and leasing THB2,000,000 – 27.6% 72.4%
UK Broadband Limited United Kingdom Public fixed wireless access licence businesses GBP1 – 100% –
* Unofficial company name
Certain subsidiaries which do not materially affect the results or financial position of the Group are not included.