Trade and other receivables

12 Months Ended

Dec. 31, 2019

17.	Trade and other receivables


	31.12.2018 RMB’000			31.12.2019 RMB’000			31.12.2019 US$’000
Trade receivables, gross		438,586			794,678			112,161
Less: Allowance for expected credit losses		(30,586	)		(57,611	)		(8,131	)

Net trade receivables		408,000			737,067			104,030
Bills receivable (i)		6,981,106			7,005,234			988,728

Total (Note 7.2, Note 36)		7,389,106			7,742,301			1,092,758

Amounts receivable:
- associates and joint ventures (trade)		174			609			86
- associates and joint ventures (non-trade)		56,405			11,185			1,579
- related parties (trade)		32,702			73,243			10,338
- related parties (non-trade)		2,156			2,092			295
Staff advances		5,513			7,133			1,007
Interest receivables		8,220			12,224			1,725
Bills receivable in transit		8,850			8,700			1,228
Refundable deposits		3,029			2,131			301
Others		23,456			49,218			6,946
Less: Impairment losses – other receivables (ii )		—			(5,243	)		(740	)

Other receivables carried at amortized cost (Note 36)		140,505			161,292			22,765
Tax recoverable		140,316			223,652			31,566
Prepayments		115,360			63,048			8,899

Net other receivables		396,181			447,992			63,230

Total trade and other receivables		7,785,287			8,190,293			1,155,988

Note:

(i)

As of December 31, 2019, bills receivable include bills received from joint venture and related parties amounted to RMB Nil (US$ Nil) (2018: RMB 18.1 million) and RMB 1,050.7 million (US$148.3 million) (2018: RMB 17.0 million) respectively.

As of December 31, 2019, there was no bills receivable pledged to secure bank facilities. As of December 31, 2018, bills receivable of RMB 558.6 million were pledged to secure bank facilities.

(ii)

This comprised of impairment loss on bills receivable in transit of RMB 5.0 million (US$0.7 million) as of December 31, 2019 (2018: RMB Nil). This impairment loss was charged to the consolidated statement of profit or loss under “selling, general and administrative expenses”.

Trade receivables are

non-interest

bearing and are generally on 60 days’ term. They are recognized at their original invoice amounts which represent their fair values on initial recognition.

As of December 31, 2018, the

non-trade

receivable due from joint ventures comprised of a loan of RMB 50.0 million that was unsecured and bore interest at 4.35% per annum. The amount was fully repaid in 2019. Other than that,

non-trade

balance from associates, joint ventures and other related parties are unsecured, interest-free, and repayable on demand.

Movement in the allowance for expected credit losses of trade and other receivables is as follows:


	31.12.2018 RMB’000			31.12.2019 RMB’000			31.12.2019 US$’000

At January 1		43,775			30,586			4,316
(Credit)/debit to consolidated statement of profit or loss (under “selling, general and administrative expenses”)		(11,052	)		32,340			4,565
Written off		(2,137	)		(62	)		(9	)
Translation difference		—			(10	)		(1	)

At December 31 (Note 33)		30,586			62,854			8,871

As of December 31, 2018 and 2019, outstanding bills receivable discounted with banks for which the Group retained a recourse obligation totaled RMB 1,272.4 million and RMB 2,268.4 million (US$320.2 million) respectively. All bills receivable discounted have contractual maturities within 12 months at time of discounting.

As of December 31, 2018 and 2019, outstanding bills receivable endorsed to suppliers with recourse obligation were RMB 1,627.5 million and RMB 1,120.3 million (US$158.1 million) respectively.

As of December 31, 2018 and 2019, gross trade receivables due from a major customer group, Dongfeng Automobile Co., Ltd. and its affiliates (the “Dongfeng companies”) were RMB 54.1 million and RMB 136.4 million (US$19.2 million), respectively. See Note 33 for further discussion of customer concentration risk.

For terms and conditions relating to related parties, refer to Note 30.