annual_report_2019_en

130 Huawei Investment & Holding Co., Ltd.

24 Cash and cash equivalents

(CNY million) 2019 2018

Cash on hand 5 7

Deposits with banks and other financial institutions 142,374 95,900

Highly liquid short-term investments 28,200 88,126

Deposits with third party merchants 105 73

Cash and cash equivalents in the summary consolidated statement

of financial position

170,684 18 4,106

Reclassified as assets held for sale 386 –

Cash and cash equivalents in the summary consolidated statement

of cash flows

171,070 18 4,106

Short-term investments included in cash and cash equivalents are highly liquid, readily convertible into known

amounts of cash and subject to an insignificant risk of changes in value. As at December 31, 2019, highly liquid

short-term investments comprised wealth management products of CNY26,200 million and reverse repurchase

agreements with maturities of less than three months of CNY2,000 million. The wealth management products are

purchased from commercial banks with maturities of less than three months or with maturities of less than one

year which can be redeemed at any time without penalty and are measured at amortised cost.

As at December 31, 2019, cash and cash equivalents of CNY488 million (2018: CNY659 million) were held in

countries where exchange controls or other legal restrictions were in force.

At December 31, 2019, the Group held CNY2,940 million (2018: CNY4,969 million) of cash in two multicurrency

pooling arrangements used to meet its day to day cash requirements and also to economically hedge foreign

exchange rate movements arising from foreign currency cash flows. The facilities allow participating subsidiaries

to place deposits and borrow funds from the counterparty banks in any freely convertible currency subject to the

overall balance on the pools being positive.

As at December 31, 2019 and 2018, the Group did not hold any cash and cash equivalents pledged as collateral

for liabilities or contingent liabilities.

25 Loans and borrowings

Contractual terms of the Group’s loans and borrowings are summarised below.

(CNY million) 2019 2018

Short-term loans and borrowings:

• Intra-group guaranteed – 40


• Unsecured 733 2,738
  733 2,778
  Long-term loans and borrowings:


• Intra-group guaranteed 903 1,890


• Trade receivables financing (note 22(c)) 25 30


• Unsecured 73,247 34,576


• Corporate bonds 37, 25 4 30,667
  111,429 6 7,163
  112,162 69,941
  Non-current portion 104,531 66,170
  Current portion 7,631 3,771
  112,162 69,941

Intra-group guaranteed loans are external borrowings which have been raised by one group entity but contractual

payments of principal and interest are guaranteed by another group entity.