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2020
2019
At January 1
3,953
4,265
Loss allowances recognised
266
46
Uncollectible amounts written-off
(233)
(420)
Collection of previously written-off debtors
31
49
Reclassified as assets held for sale
(2)
(4)
Disposal of a subsidiary
(2)
–
Exchange adjustments
(251)
17
At December 31
3,762
3,953
Representing loss allowance
– on trade receivables
3,405
3,525
– on contract assets
20
322
377
– included in OCI on trade receivables at FVOCI
35
51
Total
3,762
3,953

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2020 Annual Report
 
       
117
Loss allowances recognised on trade receivables and contract assets are included in Selling and administrative 
expenses.
During the year ended December 31, 2020, loss allowances recognised increased following the Group’s credit risk 
management policies; out of the uncollectible amounts written-off, CNY195 million was due from customers in 
Latin American, Southern African and Eurasian markets.
(c) Transferred trade receivables not derecognised in their entirety
As at December 31, 2020, the Group’s undue trade receivables with the face value of CNY63 million (2019: CNY25 
million) have been transferred to banks and the Group received the corresponding remittance of CNY63 million 
(2019: CNY25 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 24).
As at December 31, 2020, the Group’s trade receivables with the carrying amount of CNY3,162 million (2019: 
CNY3,333 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 CNY695 million (2019: CNY808 million) and associated liabilities of CNY750 million (2019: CNY874 
million) to the extent of its continuing involvement. The associated liabilities are included in Other liabilities. As 
at December 31, 2020, loss allowances of CNY476 million (2019: CNY554 million) were made on these transferred 
receivables.
(d) Collateral
Except as disclosed in note 21(c), as at December 31, 2020 and 2019, the Group did not hold any other trade and 
bills receivable pledged as collateral for liabilities or contingent liabilities.

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118
       
Huawei Investment & Holding Co., Ltd.