Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 121 The United Laboratories International Holdings Limited Annual Report 2020 30. CONVERTIBLE BONDS (Continued) The fair value of the Convertible Bonds with embedded derivatives were determined by the directors with reference to a valuation report carried out by an independent valuer. The movement of the Convertible Bonds for the years ended 31 December 2020 and 2019 are set out as below: Debt Derivative Total component components amount RMB’000 RMB’000 RMB’000 At 1 January 2019 645,640 185,254 830,894 Interest charged 97,356 – 97,356 Interest paid (37,924) – (37,924) Conversion into ordinary shares (5,878) (2,459) (8,337) Exchange loss 11,768 4,559 16,327 Loss arising on changes of fair value – 110,117 110,117 At 31 December 2019 710,962 297,471 1,008,433 Interest charged 42,981 – 42,981 Interest paid (13,226) – (13,226) Conversion into ordinary shares (747,149) (614,215) (1,361,364) Exchange loss 6,432 2,130 8,562 Loss arising on changes of fair value – 314,614 314,614 At 31 December 2020 – – – Binomial model is used for valuation of the derivative components of the Convertible Bonds. Details of the inputs and assumptions of the model are as follows: 31 December 2019 Share price of the Company HK$5.68 Exercise price HK$4.72 Remaining life 1.93 years Risk-free rate 1.737% Expected volatility 40.811% Expected dividend yield 1.202%