Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 128 The United Laboratories International Holdings Limited Annual Report 2021 33. GOVERNMENT GRANTS (Continued) Government grants comprise: (Continued) (iii) Certain subsidies relate to the development of pharmaceutical products or improvement of production efficiency amounting of RMB56,078,000 (2020: RMB57,256,000) at 31 December 2021 are included as deferred income. The amounts are recognised as income when the Group has fulfilled the relevant conditions attaching to the grants, including but not limited to obtaining the medical licenses of the pharmaceutical products or the starting of commercial sales of the pharmaceutical products. During the current year, the Group has recognised the government grant of approximately RMB3,818,000 (2020: RMB3,413,000) as income in profit or loss. (iv) Government subsidies granted for the acquisition of property, plant and equipment by the Group brought forward from prior year had been treated as deferred income and was transferred to income over the useful lives of the relevant assets. At 31 December 2021, an amount of RMB55,319,000 (2020: RMB65,351,000) were included in non-current liabilities. During the year ended 31 December 2021, RMB10,032,000 (2020: RMB9,368,000) was released to the profit or loss. The aggregate subsidy income recognised to the profit or loss during the year ended 31 December 2021 amounted to RMB44,419,000 (2020: RMB66,207,000) (Note 6). 34. CAPITAL COMMITMENTS 2021 2020 RMB’000 RMB’000 Capital expenditure in respect of the acquisition of property, plant and equipment contracted for but not provided in the consolidated financial statements 293,642 354,725