annual_report_2019_en

136 Huawei Investment & Holding Co., Ltd.

30 Leases

(a) As a lessee

The Group leases office premises, staff apartments, warehouses, production equipment and motor vehicles in

its normal course of business. These leases typically run for an initial period of one to five years. Some property

leases contain extension options after the contract period and only a limited number of leases comprise variable

payments. The Group also holds land use rights in the PRC, which are recognised as right-of-use assets at the

date the Group became entitled to the rights.

Information about leases for which the Group is a lessee is presented below. Comparative information has not

been provided.

(i) Right-of-use assets

(CNY million)

Land

use rights

Buildings

Motor

vehicles

and others

Total

At January 1, 2019 (note 4) 6,896 6,513 740 14,149

Depreciation charge for the year (176) (2,340) (378) (2,894)

Additions 1,676 4,650 426 6,752

Derecognition (209) (149) (204) (562)

Hyperinflation adjustments – 8 1 9

Reclassified as assets held for sale – (13) – (13)

Impairment loss – (53) – (53)

Exchange adjustments (13) 26 16 29

At December 31, 2019 8,174 8,642 601 17,417

During the year ended December 31, 2019, certain right-of-use assets were derecognised as a result of lease

cancellation or entering into finance sub-leases.

(ii) Amounts recognised in profit or loss

(CNY million) Note 2019

Interest expenses on lease liabilities 11 374

Expenses relating to short-term leases 1,747

Expenses relating to leases of low-value assets, excluding short-term leases

of low-value assets

41

Variable lease payments not included in the measurement of lease liabilities 5

Income from subleasing right-of-use assets 66

During the year ended December 31, 2018, CNY4,014 million was recognised as an expense in the consolidated

statement of profit or loss and other comprehensive income in respect of operating leases under IAS 17.