Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 88 The United Laboratories International Holdings Limited Annual Report 2020 8. FINANCE COSTS 2020 2019 RMB’000 RMB’000 Interest on borrowings 145,953 185,240 Interest on convertible bonds (Note 30) 42,981 97,356 Interest on lease liabilities 80 2,551 189,014 285,147 Less: amounts capitalised in property, plant and equipment (7,741) (4,309) 181,273 280,838 Borrowing costs capitalised during the current year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 4.28% (2019: 4.47%) per annum to expenditure on qualifying assets. 9. IMPAIRMENT LOSSES UNDER EXPECTED CREDIT LOSS MODEL, NET OF REVERSAL 2020 2019 RMB’000 RMB’000 Impairment losses (reversed) recognised: – trade receivables (3,470) (2,351) – other receivables 2,666 (3,377) – consideration receivables 31,326 13,383 – commercial bills receivables 35,390 – 65,912 7,655 Details of impairment assessment are set out in Note 39.