Basis of preparation and accounting policies (Tables)

12 Months Ended

Dec. 31, 2018

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:


Freehold buildings	:	50 years
Leasehold land, buildings and improvements	:	Shorter of 15 to 50 years or lease term
Plant and machinery	:	3 to 20 years
Office furniture, fittings and equipment	:	3 to 20 years
Motor and transport vehicles	:	3.5 to 15 years

The effect of adopting IFRS 15 is, as follows:

Impact on statement of profit or loss (increase/(decrease))


			31.12.2016			31.12.2017
	Adjustment		RMB’000			RMB’000
Revenue from contracts with customers		(a)		(21,645	)		(24,623	)
Cost of sales		(a)		(29,912	)		134,349
Gross profit				8,267			(158,972	)
Other income		(b)		—			(115,235	)
Selling, general and administrative cost		(a)		(4,087	)		(162,998	)
Operating profit				12,354			(111,209	)
Income tax expense		(b)		—			(25,995	)
Profit for the year				12,354			(85,214	)
Attributable to:
Equity holders of the parent		(a)&(b)		9,440			(65,113	)
Non-controlling interests		(a)&(b)		2,914			(20,101	)

Impact on basic and diluted earnings per share (EPS) (increase/(decrease) in EPS)


			31.12.2016			31.12.2017
	Adjustment		RMB			RMB
Earnings per share
Basic		(a)&(b)		0.23			(1.60	)
Diluted		(a)&(b)		0.23			(1.60	)

Impact on the consolidated statement of financial position (increase/(decrease)):
			1.1.2017			31.12.2017
	Adjustment		RMB’000			RMB’000
Assets
Intangible asset		(b)		(31,704	)		—
Investments in associate and joint venture		(b)		(73,061	)		—
Deferred tax assets		(b)		(25,995	)		—

Total non-current assets				(130,760	)		—
Trade and other receivables		(b)		50,000			—

Total current assets				50,000			—

Total assets				(80,760	)		—

Equity and liabilities
Contract liabilities		(a)		27,372			34,759

Total non-current liabilities				27,372			34,759
Trade and other payables		(b)		(170,000	)		—
Contract liabilities		(a)		63,870			81,105
Provision for product warranty		(a)		(69,844	)		(98,492	)

Total current liabilities				(175,974	)		(17,387	)

Total liabilities				(148,602	)		17,372
Equity
Retained earnings		(a)&(b)		51,838			(13,275	)
Non-controlling interests		(a)&(b)		16,004			(4,097	)

Total equity				67,842			(17,372	)

Total equity and liabilities				(80,760	)		—

Impact on the consolidated statement of cash flows (increase/(decrease)):


		31.12.2016			31.12.2017
	Adjustment	RMB’000			RMB’000
Profit before tax	(a)&(b)		12,354			(111,209	)
Adjustments:
Gain on disposal of intangible asset	(b)		—			115,235
Profit before tax after adjustments	(a)&(b)		12,354			4,026
Changes in working capital
Decrease in trade and other receivables	(b)		—			50,000
Increase in trade and other payables and contract liabilities	(a)		(12,354	)		(4,026	)
Cash flows from operating activities	(a)&(b)		—			50,000
Net cash flows from operating activities	(a)&(b)		—			50,000
Investing activities
Proceeds from disposal of intangible asset	(b)		—			(50,000	)
Net cash flows from investing activities	(a)&(b)		—			(50,000	)