Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 125 The United Laboratories International Holdings Limited Annual Report 2019 30. OBLIGATIONS UNDER FINANCE LEASES Present value Minimum of minimum lease payments lease payments 2019 2018 2019 2018 RMB’000 RMB’000 RMB’000 RMB’000 Amounts payable under finance leases Within one year – 111,609 – 108,572 In more than one year but not more than two years – 7,496 – 7,423 – 119,105 – 115,995 Less: future finance charges – (2,575) N/A N/A Less: arrangement fee charges – (535) N/A N/A Present value of lease obligations – 115,995 – 115,995 Less: amount due for settlement within one year (shown under current liabilities) – (108,572) Amount due for settlement after one year – 7,423 Interest rates underlying all obligations under finance leases are fixed at respective contract dates ranging from 3.95% to 4.50% (2018: 3.95% to 4.50%) per annum. These leases have no terms of renewal or purchase options and escalation clauses. As at 31 December 2018, deposits of RMB46,737,000, which is interest free, were pledged to respective financing institutions against finance leases. Pledged deposits against finance lease of RMB26,709,000 will be released in the coming year upon the expiry of respective leases in 2019 and are therefore classified as current assets while the remaining balance of RMB20,028,000 is included in non-current assets as the deposits will be released after one year from the end of the reporting period.