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Leases

12 Months Ended

Dec. 31, 2019

19.

Leases

Group as a lessee

The Group has lease contracts for land, motor vehicles, office space and staff accommodations used in its operations. These leases generally with lease term of between 1 and 6 years. The Group’s obligations under its leases are secured by the lessor’s title to the leased assets.

The Group also has certain leases of office space and staff accommodations with lease terms of 12 months or less. The Group has applied the “short-term leases” recognition exemptions for these leases

Set out below are the carrying amounts of

right-of-use

assets recognized and the movements during the year.


	Leasehold land RMB’000			Building and office space RMB’000			Office furniture, fittings and equipment RMB’000			Total RMB’000			Total US$’000

At January 1, 2019		—			—			—			—			—
Effect of adopting of IFRS 16 (i)		369,925			76,644			39			446,608			63,035

At January 1, 2019 (Restated)		369,925			76,644			39			446,608			63,035
Addition		—			11,473			—			11,473			1,619
Depreciation expenses		(14,347	)		(26,597	)		(14	)		(40,958	)		(5,781	)
Disposal		(1,771	)		—			—			(1,771	)		(250	)
Translation difference		—			36			(4	)		32			5

At December, 31, 2019		353,807			61,556			21			415,384			58,628

Note:

(i)

Upon the adoption of IFRS 16 on January 1, 2019, the Group has reclassified the carrying amount of prepaid operating lease and office furniture, fittings and equipment held under finance leases at December 31, 2018 to right-of-use assets.

Set out below are the carrying amounts of lease liabilities and the movements during the year:


	2019			2019
	RMB’000			US$’000

At January 1		—			—
Effect of adopting of IFRS 16 (Note 2.4)		96,852			13,670

At January 1 (Restated)		96,852			13,670
Additions		11,473			1,619
Accretion of interest (Note 8.3)		2,918			412
Payments		(51,283	)		(7,238	)
Translation difference		47			6

At December 31		60,007			8,469

Current (Note 27)		28,633			4,041
Non-current (Note 27)		31,374			4,428

Total		60,007			8,469

The maturity analysis of lease liabilities is disclosed in Note 27.

The following are the amounts recognized in profit of loss:


	2019 RMB’000		2019 US$’000

Depreciation charge for right-of-use assets		40,958		5,781
Interest expenses on lease liabilities (Note 8.3)		2,918		412
Expenses relating to short-term leases (included in selling, general and administrative costs and research and development cost)		14,341		2,024

Total amount recognized in profit or loss		58,217		8,217

The Group had total cash outflows for leases of RMB 65.6 million (US$9.3 million) in 2019. The Group also had non-cash additions to right-of-use assets and lease liabilities of RMB 11.5 million (US$1.6 million) in 2019. The future cash outflows relating to leases that have not yet commenced are disclosed in Note 31.

Group as a lessor

The Group has entered into operating leases on some of its assets, including surplus office and warehouse. Theses leases have terms between 1 to 12 years. Rental income recognized by the Group during the year is RMB 11.9 million (US$ 1.7 million) (2018: RMB 11.0 million).

Future minimum rental receivables under

non-cancellable

operating leases as at 31 December are as follows:


	31.12.2018		31.12.2019		31.12.2019
	RMB’000		RMB’000		US$’000
Within 1 year
- related parties		1,248		1,787		252
- joint venture		2,308		2,691		380
- third parties		1,391		892		126
After 1 year but within 5 years
- related parties		1,030		660		93
- joint venture		9,087		10,526		1,486
- third parties		1,463		1,504		212
After than 5 years
- related parties		455		—		—
- joint venture		9,272		5,643		796
- third parties		—		889		125

		26,254		24,592		3,470