Founded in 1987, Huawei is a leading global provider of information and communications

19 Inventories and other contract costs
(CNY million)
2020
2019
Inventories
 
 
Raw materials
89,196
58,520
Manufacturing work in progress
24,869
27,103
Finished goods
34,384
52,241
Dispatched goods and contract work in progress
12,534
20,527
Other inventories
6,320
6,970
167,303
165,361
Other contract costs
364
2,029
167,667
167,390
As at December 31, 2020 and 2019, the Group did not hold any inventories pledged as collateral for liabilities or 
contingent liabilities.
(a) Amount of inventories recognised as an expense and included in profit or loss:
(CNY million)
2020
2019
Carrying amount of inventories sold
460,028
456,577
Write-down of inventories
11,308
3,796
471,336
460,373
The Group wrote down certain raw materials and manufacturing work in progress that may not be capable of 
being used in production as a result of the Events disclosed in note 5(c). The write-down is included in Cost of 
sales.
(b) Contract costs
The Group’s contract costs represent contract fulfilment costs incurred to deliver services to customers, which will 
be charged to Cost of sales when the corresponding performance obligations are satisfied.
No provision for impairment was required on contract costs as at December 31, 2020 or 2019.

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2020 Annual Report