Annual Report 2023

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 91 The United Laboratories International Holdings Limited Annual Report 2023 8. FINANCE COSTS 2023 2022 RMB’000 RMB’000 Interest on borrowings 81,974 87,971 Interest on lease liabilities 443 570 82,417 88,541 Less: amounts capitalised in the cost of qualifying assets (15,521) (6,946) 66,896 81,595 Borrowing costs capitalised during the current year arose on the general borrowing pool and are calculated by applying a capitalisation rate of 4.35% (2022: 3.87%) per annum to expenditure on qualifying assets. 9. IMPAIRMENT LOSSES REVERSED UNDER EXPECTED CREDIT LOSS MODEL, NET 2023 2022 RMB’000 RMB’000 Impairment losses recognised (reversed): – trade receivables 5,620 (15,470) – banker's acceptance bills receivables (655) 848 – other receivables (552) (3,471) – commercial bills receivables (6,375) 6,375 (1,962) (11,718) Details of impairment assessment are set out in Note 39.