Annual Report 2012 - Haitian International Holdings Ltd.

Notes to the Consolidated Financial Statements (Continued)
(All amounts in RMB unless otherwise stated)
10. Inventories — Group
2012 2011
RMB’000
RMB’000
Raw materials 637,050 774,298
Work-in-progress 197,173 151,715
Finished goods 583,153 525,700
1,417,376 1,451,713
The cost of inventories recognised as expense and included in cost of sales amounted to approximately RMB4,401,315
thousand (2011: RMB4,928,963 thousand).
In 2012, the Group recorded reversal of write-down of inventories of approximately RMB1,231 thousand (2011: RMB7,748
thousand). This amount has been included in cost of sales.
As at 31 December 2011, a batch of finished goods with a cost of RMB1,231 thousand was considered as obsolete (2010:
RMB7,748 thousand). A provision of RMB1,231 thousand was made as at 31 December 2011 (2010: RMB7,748 thousand).
The Group reversed in 2012 RMB1,231 thousand of this inventory write-down due to subsequent sale of all these products
(2011: RMB7,748 thousand).
11. Trade and Bills Receivables — Group
2012 2011
RMB’000 RMB’000
Trade and bills receivables 2,080,545 2,092,337
Less: provision for impairment (32,352) (39,630)
2,048,193 2,052,707
The fair values of trade and bills receivables approximate their carrying amounts.
As at 31 December 2012, there was no individual customer with outstanding balance exceeding 10% of the Group’s total
trade and bills receivables (2011: None).
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