Basis of preparation and accounting policies (Tables)

12 Months Ended

Dec. 31, 2019

Statement [LineItems]

Estimated Useful Life of Assets

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:

Freehold buildings	:	50 years
Leasehold land, buildings and improvements	:	Shorter of 15 to 50 years or lease term
Plant and machinery	:	3 to 20 years
Office furniture, fittings and equipment	:	3 to 20 years
Motor and transport vehicles	:	3.5 to 15 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognized.

Disclosure of detailed information about intangible assets useful life

A summary of the policies applied to the Group’s intangible assets is as follows:

	Trademarks	Technology know-how	Development costs
Useful lives	Indefinite	10 years	*
Amortization method used	No amortization	Amortized on a straight-line basis over the period of the technology know-how	*
Internally generated or acquired	Acquired	Internally generated	Internally generated

* Development costs relate to on-going development projects that have not been completed and are not available for use.

Disclosure of detailed information about right-of-use assets useful life

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and estimated useful lives of the assets, as follows:

•   Leasehold land	Shorter of 3 years to 50 years
•   Building and office space	1 to 6 years
•   Office furniture, fittings and equipment	5 years

Disclosure of detailed information about the effect of adoption IFRS 16

The effect of adoption IFRS 16 as at January 1, 2019 (increase/(decrease)) is, as follows:

	RMB’000			US$’000
Assets
Prepaid operating leases		(367,092	)		(51,812	)
Property, plant and equipment		(39	)		(6	)
Right-of-use assets		446,608			63,035
Trade and other receivables - Prepayment		(1,770	)		(250	)
Total assets		77,707			10,967
Current Liabilities
Lease liabilities		42,457			5,992
Other liabilities		(14	)		(2	)
Trade and other payables - Accruals		(19,097	)		(2,695	)
Total current liabilities		23,346			3,295
Non-current Liabilities
Lease liabilities		54,395			7,677
Other liabilities		(34	)		(5	)
Total non-current liabilities		54,361			7,672

The Group has lease contracts for various items of land, motor vehicle, office space and other equipment. Before the adoption of IFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. Refer to Note 2.3 (q) Leases for the accounting policy prior to January 1, 2019.

Schedule of operating lease commitments reconciliation

The lease liabilities as at January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018, as follows:

	RMB’000			US$’000
Assets
Operating lease commitments as at December 31, 2018		101,700			14,354
Less:
Commitments relating to short-term leases		(2,140	)		(302	)
Revised rental		(13,878	)		(1,959	)
Adjusted operating lease commitments		85,682			12,093
Weighted average incremental borrowing rate as at January 1, 2019		4.34	%		4.34	%
Discounted operating lease commitments as at January 1, 2019		79,477			11,218
Less:
Prepayment adjusted to lease liabilities		(1,770	)		(250	)
Add:
Commitments relating to leases previously classified as finance leases		48			7
Accrual adjusted to lease liabilities		19,097			2,695
Lease liabilities as at January 1, 2019 (Note 19)		96,852			13,670