Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 122 The United Laboratories International Holdings Limited Annual Report 2020 30. CONVERTIBLE BONDS (Continued) Risk-free rate was determined by using the average of 3-year yield and 5-year yield of HK$ Hong Kong Sovereign bonds on each of the end of the reporting period. Expected volatility was determined by using the annualised standard deviation of the continuously compounded rate of return on the daily average adjusted share price of the Company over periods that are commensurate with the time to maturity at the respective valuation date. Expected dividend yield was determined by the sustainability of the Company’s dividend policy. 31. DEFERRED TAXATION The followings are the deferred tax assets (liabilities) recognised and movements thereon for the current and prior years: Fair value change on investment properties Accelerated (tax) accounting depreciation Unrealised profit on inventories Withholding tax on undistributed profits of the PRC subsidiaries Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2019 (223,154) (4,256) 15,516 (69,456) (281,350) Credit (charge) to profit or loss for the year 38,121 12,962 (585) (8,347) 42,151 Disposal of a subsidiary (Note 10) 185,033 27,652 – – 212,685 At 31 December 2019 – 36,358 14,931 (77,803) (26,514) Credit (charge) to profit or loss for the year – 16,633 10,331 (41,779) (14,815) At 31 December 2020 – 52,991 25,262 (119,582) (41,329)