annual_report_2019_en

(coco) #1

2019 Annual Report (^129)
(c) Transferred trade receivables that are not derecognised in their entirety
As at December 31, 2019, the Group’s trade receivables with the face value of CNY25 million (2018: CNY30
million) have been transferred to banks and the Group received the corresponding remittance of CNY25 million
(2018: CNY30 million). As these transactions are with recourse, the Group therefore has retained substantially all
the risks and rewards and continues to recognise these trade receivables and the relevant financing as loans and
borrowings (note 25).
As at December 31, 2019, the Group’s trade receivables with the carrying amount of CNY3,333 million (2018:
CNY3,190 million) have been transferred to banks. These trade receivables are covered by insurance policies
issued by third party credit insurance agencies with the transferees as the loss payees. In these transactions,
the Group retains risk not covered by the insurance, therefore the Group has neither transferred nor retained
substantially all the risks and rewards in relation to the trade receivables and the Group is considered to
have retained control of these trade receivables as the transferees have no practical ability to sell these trade
receivables without the Group’s consent. As such, the Group continues to recognise the transferred trade
receivables of CNY808 million (2018: CNY840 million) and the associated liabilities of CNY874 million (2018:
CNY845 million) to the extent of its continuing involvement. The associated liabilities are included in Other
liabilities. As at December 31, 2019, loss allowances of CNY554 million (2018: CNY577 million) were made on
these transferred receivables.
(d) Collateral
Except as disclosed in note 22(c), as at December 31, 2019 and 2018, the Group did not hold any other trade and
bills receivable pledged as collateral for liabilities or contingent liabilities.
23 Other assets
(CNY million) Note 2019 2018
Advance payments to suppliers 2,868 2,860
Tax receivables on unbilled deliveries (i) 4,760 6,077
Income tax related assets 2,215 3,810
Other tax related assets 8,659 9,789
Pledged deposits with banks 2,116 2,078
Restricted deposits relating to government grants (ii) 1,259 1,737
Other third party receivables 9,515 6,188
Other long-term deferred assets 340 546
Related party receivables 32 376 332
Prepayment for acquisition of long-term leasehold land 50 46
Assets held for sale (iii) 2,164 2
34,322 33,465
Non-current portion 5,196 5,423
Current portion 29,126 28,042
34,322 33,465
(i) Under PRC tax regulations, value added tax (“VAT”) and other surcharges are payable at the earlier of delivery
of goods and services or issuance of VAT invoices. These balances represent VAT and surcharge receivable
from customers on unbilled deliveries and will be reclassified to trade receivables upon billing.
(ii) Conditional government grants received by the Group are required to be deposited in restricted bank accounts
until the government acceptance documents for the related research and development projects are obtained.
(iii) With the purpose of focusing on the Group’s core businesses, the Group has signed an agreement with a third
party for sale of its submarine business during the year and the sale was subsequently completed on March 6,



  1. The assets and liabilities of this business are therefore separately presented as Assets held for sale and
    Liabilities directly associated with the assets held for sale within Other liabilities (note 28) as at December 31,
    2019, which mainly include cash and cash equivalents, operating receivables and payables, contract assets and
    contract liabilities. Both assets and liabilities are presented as current.

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