Annual Report 2023

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 139 The United Laboratories International Holdings Limited Annual Report 2023 39. 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: 2023 Increase (decrease) in lifetime ECL Not credit- impaired 2022 Increase (decrease) in lifetime ECL Not credit- impaired RMB’000 RMB’000 Newly originated trade receivable balance in 2023 with gross amount of RMB2,359,889,000 (2022: RMB2,096,565,000) 12,346 5,660 Settlement in full of trade debtors with a gross carrying amount of RMB2,077,816,000 (2022: RMB1,610,012,000) (6,726) (21,130) 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.