annual_report_2019_en

128 Huawei Investment & Holding Co., Ltd.

(a) Ageing analysis

At the end of the reporting period, the ageing analysis of trade receivables is as follows:

(CNY million) 2019 2018

Not past due 68,378 74,276

Less than 90 days past due 13,249 13,559

90 days to 1 year past due 5,409 5,229

1 year and above past due 1,783 1,803

88,819 94,867

Less: loss allowances (3,525) (3,815)

85,294 91,052

Trade receivables are generally due within 30 days from the date of billing.

(b) Loss allowances of trade receivables and contract assets

Loss allowances in respect of trade receivables and contract assets are recorded using an allowance account

unless the Group is satisfied there is no reasonable expectation of further recoveries in which case the receivables

are written off (see note 3(e)(i)).

The movement in loss allowances in respect of trade receivables and contract assets during the year is as follows.

(CNY million) Note 2019 2018

At January 1 4,265 4,799

Loss allowances recognised 46 74

Uncollectible amounts written-off (420) (718)

Collection of previously written-off debtors 49 143

Reclassified as assets held for sale (4) –

Exchange adjustments 17 (33)

At December 31 3,953 4,265

Representing

• Loss allowance on trade receivables 3,525 3,815


• Loss allowance on contract assets 21 377 417


• Loss allowance included in OCI on trade receivables at FVOCI 51 33
  Total 3,953 4,265

Loss allowances recognised on trade receivables and contract assets are included in Selling and administrative

expenses.

During the year ended December 31, 2019, the loss allowance of trade receivables and contract assets decreased

mainly due to the write-off of uncollectible amounts. CNY177 million of the write-off was due from customers in

EMEA markets.