Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 94 The United Laboratories International Holdings Limited Annual Report 2019 7. OTHER GAINS AND LOSSES/OTHER EXPENSES 2019 2018 RMB’000 RMB’000 (a) Other gains and losses, net Impairment losses recognised on intangible assets – 17,960 Loss on derivative financial instruments (Note) 1,640 3,813 Reversal of write-down of deposits for property, plant and equipment (7,237) – Net losses on disposal of property, plant and equipment 14,411 29,529 Net foreign exchange (gain) loss (7,079) 70,005 Others 38 (174) 1,773 121,133 (b) Other expenses Research and development costs 367,968 283,224 Temporary production suspension costs 6,478 11,263 Tax penalty 4,312 7,700 Others 8,071 7,735 386,829 309,922 Note: During the years ended 31 December 2019 and 2018, the Group had entered into several foreign currency forward contracts with banks and financial institutions to reduce its exposure to foreign currency risks. These derivatives were not accounted for under hedge accounting. There were no outstanding foreign currency forward contracts held by the Group as at 31 December 2019 and 2018.