Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 128 The United Laboratories International Holdings Limited Annual Report 2019 31. BORROWINGS (Continued) Interest rate (Continued) During the year ended 31 December 2019, other borrowing of RMB337,035,000 (2018: nil) has been advanced from other financing institutions, independent third parties not connected to the Group, which is subject to floating interest rate and secured by plant and machinery with carrying amount of RMB843,228,000. As at 31 December 2019, deposits of RMB31,423,000, which is interest free, were pledged to respective financing institutions. The deposits of RMB7,423,000 will be released in the coming year upon the expiry of respective loans in 2020 and are therefore classified as current assets while the remaining balance of RMB24,000,000 is included in non-current assets as the deposits will be released after one year from the end of the reporting period. Other than borrowings of RMB1,291,680,000 (2018: RMB953,807,000) and RMB687,063,000 (2018: RMB165,415,000) are denominated in HK$ and EUR, respectively, the remaining borrowings are all in RMB. 32. CONVERTIBLE BONDS On 5 December 2016, the Company issued USD denominated HKD settled 4.5% unsecured convertible bonds (the “Convertible Bonds”) at par with the aggregate principal amount of USD130,000,000 with initial conversion price of HK$5.35 (subject to adjustments) per share at a fixed exchange rate of HK$7.7563 to USD1.00. An adjustment has been made to the conversion price from HK$5.35 to HK$4.86 on a one- time basis on 13 December 2016 pursuant to the terms and conditions as prescribed in the subscription agreement dated 21 November 2016. Subsequently, an adjustment has been made to the conversion price from HK$4.86 to HK$4.72 on a one-time basis on 31 October 2019 pursuant to the terms and conditions as prescribed in the subscription agreement dated 21 November 2016. The Convertible Bonds are listed on the Hong Kong Stock Exchange (“Stock Exchange”). The Convertible Bonds bear interest from (and including) the issue date at the rate of 4.5% per annum calculated by reference to the principal amount thereof and payable semi-annually in arrears on 5 June and 5 December of each year, commencing with the first interest payment date falling on 5 June 2018. The Convertible Bonds will mature on 5 December 2021 and shall be redeemed by the Company at par, together with accrued interest thereon, on 5 December 2021. Conversion at the option of the bondholder may occur at any time between 15 January 2017 and 27 November 2021. The Company will, at the option of the bondholder, redeem all or some of the Convertible Bonds on 5 December 2019 at their principal amount, with accrued but unpaid interest excluding the date fixed for redemption. As at 5 December 2019, no bondholder has redeemed the Convertible Bonds and the option expired.