Group as a lessee

The Group has lease contracts for land, motor vehicles, office space and staff accommodations used in its operations. These leases are 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, 2020		353,807			61,556			21			415,384			65,702
Addition		2,058			13,198			—			15,256			2,413
Depreciation expenses		(14,102	)		(29,182	)		(14	)		(43,298	)		(6,848	)
Disposal		(3,198	)		—			—			(3,198	)		(506	)
Translation difference		—			(142	)		(1	)		(143	)		(22	)

At December 31, 2020 and January 1, 2021		338,565			45,430			6			384,001			60,739
Addition		1,355			22,558			58			23,971			3,792
Depreciation expenses		(13,655	)		(27,790	)		(13	)		(41,458	)		(6,558	)
Disposal		(21,620	)		—			—			(21,620	)		(3,420	)
Translation difference		—			(80	)		—			(80	)		(13	)

At December 31, 2021		304,645			40,118			51			344,814			54,540

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


	2020			2021			2021
	RMB’000			RMB’000			US$’000
At January 1		60,007			39,778			6,291
Additions		15,256			23,971			3,792
Accretion of interest (Note 7.3)		2,198			1,819			288
Payments		(37,561	)		(24,940	)		(3,945	)
Translation difference		(122	)		(97	)		(16	)

At December 31		39,778			40,531			6,410


Current (Note 25)		22,755			27,125			4,290
Non-current (Note 25)		17,023			13,406			2,120

Total		39,778			40,531			6,410

The maturity analysis of lease liabilities is disclosed in Note 25.

The following are the amounts recognized in profit of loss:


	2020 RMB’000		2021 RMB’000		2021 US$’000
Depreciation charge for right-of-use assets		43,127		41,458		6,558
Interest expenses on lease liabilities (Note 7.3)		2,198		1,819		288
Expenses relating to short-term leases (included in selling, general and administrative expenses and research and development expenses)		14,313		27,686		4,379

Total amount recognized in profit or loss		59,638		70,963		11,225

In 2021, the Group had total cash outflows for leases of RMB 52.6 million (US$ 8.3 million) (2020: RMB 51.9 million). The Group also had

non-cash

additions to

right-of-use

assets and lease liabilities of RMB 24.0 million (US$ 3.8 million) in 2021 (2020: RMB 15.3 million). The future cash outflows relating to leases that have not yet commenced are disclosed in Note 29.

Group as a lessor

The Group has entered into operating leases on some of its assets, including surplus

offices

and

warehouses

. Theses leases have terms between 1 to 15 years. Rental income recognized by the Group during the year is RMB 15.2 million (US$ 2.4 million) (2020: RMB 13.3 million).

Future minimum rental receivables under

non-cancellable

operating leases as of 31 December are as follows:


	31.12.2020		31.12.2021		31.12.2021
	RMB’000		RMB’000		US$’000
Within 1 year
- related parties		902		598		95
- joint venture		2,590		1,425		225
- third parties		5,058		5,573		882
After 1 year but within 5 years
- related parties		—		2,358		373
- joint venture		10,720		5,698		901
- third parties		13,305		7,240		1,145
More than 5 years
- joint venture		14,141		10,566		1,671
- third parties		4,392		4,272		676

		51,108		37,730		5,968