Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 118 The United Laboratories International Holdings Limited Annual Report 2020 29. BORROWINGS (Continued) Interest rate 2020 2019 RMB’000 RMB’000 Fixed rate 81,493 2,057,204 HIBOR plus 2.20% to 2.35% (2019: HIBOR plus 1.50% to 3.00%) 1,687,315 1,291,680 PRC Loan Prime Rate (“LPR”) (LPR plus 0.5% to 0.86%) (2019: LPR plus 0.5% to 0.86%) 193,475 342,035 LIBOR plus 2.00% (2019: LIBOR plus 0.80% to 2.00%) 247,368 297,070 2,209,651 3,987,989 The range of effective interest rates of the floating rate borrowings at 31 December 2020 is 2.00% to 4.71% (2019: 0.80% to 6.19%) per annum. The range of effective interest rates of the fixed rate borrowings at 31 December 2020 is 2.05% to 5.85% (2019: 0.3% to 5.72%) per annum. In March 2017, the Group issued fixed rate bonds of RMB1,100,000,000 carrying a fixed coupon rate of 5.5% per annum with a maturity of three years (extendable to five years) and was redeemable at par value (the “Corporate Bonds”). As the bondholders have the right to demand payment of the Corporate Bonds from the Group at 31 December 2019, the Corporate Bonds have been included in current liabilities at 31 December 2019. During the year ended 31 December 2020, the fixed rate bonds have been fully repaid. The carrying amount of the Corporate Bonds was RMB1,095,418,000 at 31 December 2019. During the year ended 31 December 2020, other borrowing of RMB193,475,000 (2019: RMB337,035,000) 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 RMB732,029,000 (2019: RMB843,228,000). At 31 December 2020, deposits of RMB24,000,000 (2019: RMB31,423,000), which are interest-free, were pledged to respective financing institutions. The balance of RMB24,000,000 has been included in non- current assets for both years as the deposits will be released after one year from the end of the reporting period. Deposits of RMB7,423,000 were released in 2020 upon the expiry of respective loans in 2020 and were therefore classified as current assets for the year ended 31 December 2019. Other than borrowings of RMB1,687,315,000 (2019: RMB1,291,680,000) and RMB247,368,000 (2019: RMB687,063,000) are denominated in HK$ and EUR, respectively, the remaining borrowings are all in RMB.