| 33 | Trade receivables |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Trade receivables |
2,712 | 3,026 | ||||||
|
Less: allowance for doubtful debts |
(37 | ) | (37 | ) | ||||
|
|
|
|
|
|||||
| 2,675 | 2,989 | |||||||
|
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|
|
|
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| (a) | Ageing analysis |
Credit terms granted by the Group to sales agents and other customers generally range from one to three months. Ageing analysis of trade receivables based on transaction date is set out below:
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Within 1 month |
2,067 | 2,536 | ||||||
|
More than 1 month but less than 3 months |
497 | 321 | ||||||
|
More than 3 months but less than 12 months |
112 | 142 | ||||||
|
More than 1 year |
36 | 27 | ||||||
|
|
|
|
|
|||||
| 2,712 | 3,026 | |||||||
|
Less: allowance for doubtful debts |
(37 | ) | (37 | ) | ||||
|
|
|
|
|
|||||
| 2,675 | 2,989 | |||||||
|
|
|
|
|
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All of the trade receivables are expected to be recovered within one year.
| (i) | Impairment loss in respect of trade receivables is recorded using an allowance account unless the Group is satisfied that recovery of the amount is remote, in which case the impairment loss is written off against trade receivables directly (Note 2(l) (i)). |
The movements in the allowance for doubtful debts during the year are as follows:
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
At January 1 |
37 | 33 | ||||||
|
Impairment loss recognized |
8 | 14 | ||||||
|
Impairment loss written back |
— | (1 | ) | |||||
|
Uncollectible amounts written off |
(8 | ) | (9 | ) | ||||
|
|
|
|
|
|||||
|
At December 31 |
37 | 37 | ||||||
|
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|
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| (ii) | As at December 31, 2017, trade receivables of RMB36 million (December 31, 2016: RMB31 million) were past due but not impaired. These relate to a number of independent customers for whom there is no significant financial difficulty and based on experience, the overdue amounts can be recovered. |
The ageing analysis of these trade receivables is as follows:
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
3 to 12 months |
31 | 26 | ||||||
|
More than 1 year |
5 | 5 | ||||||
|
|
|
|
|
|||||
| 36 | 31 | |||||||
|
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|
|
|
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| (iii) | As at December 31, 2017, trade receivables of RMB40 million (December 31, 2016: RMB50 million) were impaired. The amount of the provision was RMB37 million as at December 31, 2017 (December 31, 2016: RMB37 million). The impaired receivables mainly relate to customers which are in unexpectedly difficult economic situations. It was assessed that a portion of the receivables is expected to be recovered. The ageing of these receivables is as follows: |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
3 to 12 months |
9 | 28 | ||||||
|
More than 1 year |
31 | 22 | ||||||
|
|
|
|
|
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| 40 | 50 | |||||||
|
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|
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| (b) | Trade receivables that are not impaired |
The ageing analysis of trade receivables that are neither individually nor collectively considered to be impaired is as follows:
| 2017 RMB million |
2016 RMB million |
|||||||
|
Neither past due nor impaired |
2,636 | 2,945 | ||||||
|
|
|
|
|
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Trade receivables that were neither past due nor impaired relate to customers for whom there was no recent history of default.
| (c) | Trade receivables by currencies |
The carrying amounts of the Group’s trade receivables are denominated in the following currencies:
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
RMB |
2,061 | 2,303 | ||||||
|
USD |
179 | 268 | ||||||
|
EURO |
171 | 129 | ||||||
|
AUD |
52 | 53 | ||||||
|
TWD |
33 | 40 | ||||||
|
GBP |
36 | 23 | ||||||
|
Others |
180 | 210 | ||||||
|
|
|
|
|
|||||
| 2,712 | 3,026 | |||||||
|
|
|
|
|
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As at December 31, 2017, the fair value of trade receivables approximates its carrying amount.