Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 142 The United Laboratories International Holdings Limited Annual Report 2021 38. FINANCIAL INSTRUMENTS (Continued) Financial risk management objectives and policies (Continued) Credit risk and impairment assessment (Continued) Changes in the loss allowance for trade receivables are mainly due to: 2021 Increase (decrease) in lifetime ECL 2020 Increase (decrease) in lifetime ECL Not credit- Credit- Not credit- Credit– impaired impaired impaired impaired RMB’000 RMB’000 RMB’000 RMB’000 Newly originated trade receivable balance in 2021, with gross amount of RMB1,642,198,000 (2020: RMB1,420,450,000) 22,309 – 19,697 – Settlement in full of trade debtors with a gross carrying amount of RMB1,420,450,000 (2020: RMB1,241,536,000) (19,697) – (23,167) – The Group writes off a receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over three years past due, whichever occurs earlier.