Annual Report 2022

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2022 95 The United Laboratories International Holdings Limited Annual Report 2022 8. FINANCE COSTS 2022 2021 RMB’000 RMB’000 Interest on borrowings 87,971 63,532 Interest on lease liabilities 570 697 88,541 64,229 Less: amounts capitalised in the cost of qualifying assets (6,946) (3,998) 81,595 60,231 Borrowing costs capitalised during the current year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 3.87% (2021: 2.61%) per annum to expenditure on qualifying assets. 9. IMPAIRMENT LOSSES (REVERSED) RECOGNISED UNDER EXPECTED CREDIT LOSS MODEL, NET 2022 2021 RMB’000 RMB’000 Impairment losses (reversed) recognised: – trade receivables (15,470) 2,612 – banker’s acceptance bills receivables 848 – – other receivables (3,471) 4,267 – consideration receivables – 294,865 – commercial bills receivables 6,375 (5,185) (11,718) 296,559 Details of impairment assessment are set out in Note 38.