Leases

12 Months Ended

Dec. 31, 2021

24. Leases

Group as a lessee

The Group has lease contracts for various items of property, plant and equipment. Leases of a building and music education equipment generally have lease terms between 3 and 5 years.

The Group also has certain leases with lease terms of 12 months or less and leases of low-value assets. The Group applies recognition exemptions for “short-term leases” and “leases of low-value assets” for these leases.

Set out below are the carrying amounts of

right-of-use

assets recognised and the movements during the years:


	Building			Music education equipment			Total
	RMB’000			RMB’000			RMB’000
At January 1, 2020		2,569			8,159			10,728
Additions		1,286			4,396			5,682
Acquisition from business combinations (Note 8)		2,988			—			2,988
Depreciation charge		(2,525	)		(1,955	)		(4,480	)

At December 31, 2020		4,318			10,600			14,918
Additions		2,259			475			2,734
Depreciation charge		(3,443	)		(696	)		(4,139	)
Lease termination		(74	)		(10,379	)		(10,453	)

As December 31, 2021		3,060			—			3,060

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


	2021			2020
	RMB’000			RMB’000
At January 1		17,490			14,713
Additions		2,734			5,682
Accretion of interest		1,082			2,561
Covid-19-related rent concessions from a lessor		—			(778	)
Lease termination		(14,379	)		—
Payments		(3,648	)		(4,688	)

At December 31		3,279			17,490

Current		2,486			7,660
Non-current		793			9,830


	2021		2020			2019
	RMB’000		RMB’000			RMB’000
Depreciation expense of right-of-use assets		4,139		4,480			1,618
Interest expense on lease liabilities		1,082		2,561			613
Covid-19-related rent concessions from a lessor		—		(778	)		—
Expense relating to short term leases and leases of low-value assets included in administrative expenses		1,604		775			112

Total amount recognised in profit or loss		6,825		7,038			2,343

The total cash outflow for leases included in the statements of cash flows is as follows:


	2021		2020		2019
	RMB’000		RMB’000		RMB’000
Total cash outflow for leases		5,252		5,463		2,672

Group as a lessor

The Group entered into

sub-lease

agreements on its office. These leases have terms of

three and a half years

, which are equal to the lease term of the head lease.

Future minimum rentals receivable under

non-cancellable

finance leases as at each of the reporting dates are as follows:


	December 31, 2021			December 31, 2020
	RMB’000			RMB’000
Amounts receivable:
Within one year		357			219
After one year but within two years		—			219
After two years but within five years		—			—

Total future undiscounted minimum rentals receivable		357			438
Unearned finance income		(2	)		(25	)

Net investments in subleases		355			413

Current		355			211
Non-current		—			202