Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 95 The United Laboratories International Holdings Limited Annual Report 2019 8. FINANCE COSTS 2019 2018 RMB’000 RMB’000 Interest on borrowings 185,240 160,480 Interest on convertible bonds (Note 32) 97,356 88,648 Interest on finance leases – 19,748 Interest on lease liabilities 2,551 – 285,147 268,876 Less: amounts capitalised in property, plant and equipment (4,309) (21,979) 280,838 246,897 Borrowing costs capitalised during the year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 4.47% (2018: 6.81%) per annum to expenditure on qualifying assets. 9. IMPAIRMENT LOSSES UNDER EXPECTED CREDIT LOSS MODEL, NET OF REVERSAL 2019 2018 RMB’000 RMB’000 Impairment losses (recognised) reversed: – trade receivables 2,351 (6,306) – other receivables (10,006) 8,412 (7,655) 2,106 Details of impairment assessment for the years ended 31 December 2019 and 2018 are set out in Note 41.