Annual Report 2021

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2021 92 The United Laboratories International Holdings Limited Annual Report 2021 8. FINANCE COSTS 2021 2020 RMB’000 RMB’000 Interest on borrowings 63,532 145,953 Interest on convertible bonds (Note 29) – 42,981 Interest on lease liabilities 697 80 64,229 189,014 Less: amounts capitalised in property, plant and equipment (3,998) (7,741) 60,231 181,273 Borrowing costs capitalised during the current year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 2.61% (2020: 4.28%) per annum to expenditure on qualifying assets. 9. IMPAIRMENT LOSSES UNDER EXPECTED CREDIT LOSS MODEL, NET OF REVERSAL 2021 2020 RMB’000 RMB’000 Impairment losses recognised (reversed): – trade receivables 2,612 (3,470) – other receivables 4,267 2,666 – consideration receivables 294,865 31,326 – commercial bills receivables (5,185) 35,390 296,559 65,912 Details of impairment assessment are set out in Note 38.