annual_report_2019_en

2019 Annual Report (^121)
(CNY million)
Freehold
land
Buildings Machinery
Electronic
and other
equipment
Motor
vehicles
Construction
in progress
Investment
property
Decoration
and
leasehold
improvements
Total
Accumulated depreciation
and impairment:
At January 1, 2018 – 3,776 6,869 18,608 316 13 89 8,152 37, 82 3
Exchange adjustments – (9) (3) (38) (5) – (3) (12) (70)
Depreciation charge for
the year

• 494 1,669 7, 570 78 – 3 1,838 11,6 52

Impairment loss – – – 34 – – – – 34

Transferred from investment

property

• 1 – – – – (1) – –
  Disposals – – (132) (1,556) (34) (6) – (139) (1,867)
  Hyperinflation adjustments – – – 54 1 – – 8 63
  At December 31, 2018 – 4,262 8,403 24,672 356 7 88 9,847 47,635
  At January 1, 2019 – 4,262 8,403 24,672 356 7 88 9,847 47,635
  Exchange adjustments – 2 5 109 (1) – 1 31 147
  Depreciation charge for
  the year


• 430 3,369 10,834 73 – 9 2,920 17,635

Impairment loss – – 31 62 – 8 – 22 123

Disposals – (273) (362) (1,386) (53) (5) – (386) (2,465)

Reclassified as assets held

for sale

• – (3) (9) – – – (1) (13)

Hyperinflation adjustments – – – 54 1 – – 13 68

At December 31, 2019 – 4,421 11,4 43 34,336 376 10 98 12,446 63,130

Carrying amount:

At December 31, 2019 451 22,315 21,551 28,322 215 13,964 250 10,651 97,719

At December 31, 2018 434 17, 8 49 14,257 18,196 210 14,991 235 8,490 74,662

Based on the use of related assets, the depreciation charge for the year is allocated to Cost of sales, Research
and development expenses, Selling and administrative expenses, and the impairment losses are charged to Cost
of sales and Other income, net in the summary consolidated statement of profit or loss and other comprehensive
income.

As at December 31, 2019 and 2018, the Group did not hold any property, plant and equipment as collateral for
liabilities or contingent liabilities.

Investment property

The fair value of investment property as at December 31, 2019 is estimated by management to be CNY417 million
(2018: CNY360 million).

The fair value of investment property is determined by the Group internally with reference to market conditions
and discounted cash flow forecasts, taking into account current lease agreements on an arm’s-length basis.