(a)	Amounts recognized in the statement of financial position

The statement of financial position shows the following amounts relating to leases:


	As of December 31,
	2020		2021
Right-of-use assets	RMB’000		RMB’000
Properties		973,547		804,990

Lease liabilities		979,419		794,544

(b)	Amounts recognized in the statement of profit or loss

The statement of profit or loss shows the following amounts relating to leases:


	Year ended December 31,
	2019		2020		2021
Depreciation charge of right-of-use assets	RMB’000		RMB’000		RMB’000
Properties		509,026		604,018		608,889

Interest expense (included in finance costs)		58,170		46,567		38,709
Expense relating to short-term leases (included in operation and servicing expenses; general and administrative expenses; technology and analytics expenses; sales and marketing expenses)		61,836		115,741		55,408
Expense relating to leases of low-value assets (included in operation and servicing expenses; general and administrative expenses; technology and analytics expenses; sales and marketing expenses)		22,441		26,684		25,550

The total cash outflow for leases for years end December 31, 2019, 2020 and 2021 were RMB660 million, RMB794 million and RMB713 million respectively.

(c)	The Group’s leasing activities and how these are accounted for

The Group leases various offices. Rental contracts are typically made for fixed periods of 1 to 6 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as

collateral

for borrowing purposes.

(d)	Movement of right-of-use assets


	Year ended December 31,
	2019			2020			2021
	RMB’000			RMB’000			RMB’000
Opening net book amount		740,240			914,960			973,547
Additions		683,746			697,403			501,663
Early termination		—			(34,798	)		(61,331	)
Depreciation charge		(509,026	)		(604,018	)		(608,889	)

Closing net book amount		914,960			973,547			804,990


	As of December 31,
	2020			2021
	RMB’000			RMB’000
Cost		1,731,022			1,810,222
Accumulated depreciation		(757,475	)		(1,005,232	)

Net book amount		973,547			804,990