Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 51 The United Laboratories International Holdings Limited Annual Report 2019 2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (Continued) New and amendments to HKFRSs that are mandatorily effective for the current year (Continued) 2.1 HKFRS 16 Leases (Continued) As a lessee (Continued) When recognising the lease liabilities for leases previously classified as operating leases, the Group has applied incremental borrowing rates of the relevant group entities at the date of initial application. The weighted average incremental borrowing rate applied by the Group is 6.25%. At 1 January 2019 Note RMB’000 Operating lease commitments disclosed as at 31 December 2018 476 Lease liabilities discounted at relevant incremental borrowing rate 400 Add: Termination options reasonably certain not to be exercised 2,910 Lease liabilities relating to operating leases recognised upon application of HKFRS 16 3,310 Add: Obligations under finance leases recognised at 31 December 2018 (b) 115,995 Lease liabilities as at 1 January 2019 119,305 Analysed as Current 110,119 Non-current 9,186 119,305