Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 145 The United Laboratories International Holdings Limited Annual Report 2021 38. FINANCIAL INSTRUMENTS (Continued) Financial risk management objectives and policies (Continued) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulties in meeting its financial obligations as and when they fall due. In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilisation of bank borrowings and ensures its compliance with loan covenants. The Group relies on bank and other borrowings as a significant source of liquidity. At the date of these consolidated financial statements, the Group has available unutilised banking facilities of RMB3,814,306,000 (2020: RMB6,557,367,000). The directors of the Company are of the view that the banking facilities could be renewed based on historical experience that the Group has not encountered any difficulties to obtain banking facilities. The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table has been drawn up based on the undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the relevant market rates at the reporting date) of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Weighted On demand 3 months Total average or less than 1 – 3 to 1 – 5 undiscounted Carrying interest rate 1 month months 1 year years cash flows amount % RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 31 December 2021 Trade and other payable – 715,054 2,006,609 871,396 – 3,593,059 3,593,059 Borrowings – floating-rate 2.12 3,163 40,922 1,344,425 473,715 1,862,225 1,812,765 – fixed-rate 2.57 5,886 7,514 5,077 – 18,477 18,353 Lease liabilities 6.32 276 865 3,274 7,738 12,153 10,996 724,379 2,055,910 2,224,172 481,453 5,485,914 5,435,173 Derivative – gross settlement Cross currency interest rate swaps – inflow – 1,930 3,451 861,484 – 866,865 866,865 – outflow – (2,111) (3,774) (866,792) – (872,677) (872,677) (181) (323) (5,308) – (5,812) (5,812)