Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 105 The United Laboratories International Holdings Limited Annual Report 2021 18. RIGHT-OF-USE ASSETS Leasehold Leased Motor lands properties vehicles Total RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2020 230,928 373 1,336 232,637 Additions – – 1,800 1,800 Depreciation (6,778) (264) (1,264) (8,306) Lease modification – – (223) (223) At 31 December 2020 224,150 109 1,649 225,908 Additions – 8,821 3,534 12,355 Depreciation (6,778) (2,441) (1,870) (11,089) At 31 December 2021 217,372 6,489 3,313 227,174 Year ended Year ended 31/12/2021 31/12/2020 RMB’000 RMB’000 Total cash outflow for leases 3,742 1,721 For the year ended 31 December 2021, the Group leases staff quarters, office buildings and vehicles (2020: staff quarters and motor vehicles) for its operations. Lease contracts are entered into for fixed term of 3 years to 10 years. In addition, the Group owns several industrial buildings where its manufacturing facilities are primarily located and office buildings. The Group is the registered owner of these property interests, including the underlying leasehold lands. Lump sum payments were made upfront to acquire these property interests. The leasehold land components of these owned properties are presented separately only if the payments made can be allocated reliably.