Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 120 The United Laboratories International Holdings Limited Annual Report 2020 30. CONVERTIBLE BONDS (Continued) The Convertible Bonds contain liability component, conversion option and early redemption option derivatives. The Company’s and the holder’s early redemption option derivatives are not closely related to the host liability component as the early redemption amount is not closed to the amortised cost of the liability on each exercise date. The conversion option and the Company’s and the bond holder’s early redemption option derivatives are measured at fair value with changes in fair value recognised in profit or loss. At the date of issue, the debt component was recognised at fair value, calculated based on the present value of the redemption amount at maturity. In subsequent periods, the debt component is carried at amortised cost using the effective interest method. The effective interest rate of the debt component is 14.6% (2019: 14.6%). The derivatives components of the Convertible Bonds are measured at fair values at the date of issue and in subsequent periods with changes in fair value recognised in profit or loss. In June 2018, the Convertible Bonds with fixed principal amount of USD8,049,000 (equivalent to approximately RMB51,111,000) were converted into total 12,845,770 ordinary shares of HK$0.01 each at a conversion price of HK$4.86 per conversion share. In December 2019, the Convertible Bonds with fixed principal amount of USD1,000,000 (equivalent to approximately RMB6,993,000) were converted into total 1,643,283 ordinary shares of HK$0.01 each at a conversion price of HK$4.72 per conversion share (Note 32). During the year ended 31 December 2020, the entire remaining balance with fixed principal amount of USD120,951,000 (equivalent to approximately RMB792,324,051) was converted into 180,845,022 ordinary shares of HK$0.01 each at a conversion price of HK$4.72 per conversion share and 18,181,433 ordinary shares of HK$0.01 each at a conversion price of HK$4.65 (adjusted after the dividend declared by the Company on 29 June 2020 under the anti-dilution clause of the Convertible Bonds agreement) per conversion share, respectively.