Annual Financial Review slide image

Annual Financial Review

9. TRADE RECEIVABLES, NET The aging of trade receivables based on the date of invoice is set out below: In HK$ million 2020 2021 1 - 30 days 2,043 2,829 31 - 60 days 61 - 90 days 91 - 120 days Over 120 days 455 440 274 180 106 92 570 575 3,448 4,116 Less: loss allowance (195) (163) 3,253 3,953 As at December 31, 2021, included in trade receivables, net were amounts due from related parties of HK$39 million (2020: HK$21 million). The Groups' normal credit period for customers is ranging up to 30 days from the date of invoice unless there is a separate mutual agreement on extension of the credit period. The Groups maintain a well-defined credit policy and individual credit evaluations are performed on all customers requiring credit over a certain amount. These evaluations focus on the customer's past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. Debtors who have overdue balances are requested to settle all outstanding balances before any further credit is granted. 10. TRADE PAYABLES The aging of trade payables based on the date of invoice is set out below: In HK$ million 2020 2021 1 - 30 days 1,708 2,318 31 - 60 days 61 - 90 days 91 - 120 days 906 696 548 879 268 547 Over 120 days 515 810 3,945 5,250 11. As at December 31, 2021, included in trade payables were amounts due to related parties of HK$22 million (2020: HK$28 million). SUBSEQUENT EVENT On January 18, 2022, HKT Capital No. 6 Limited, an indirect wholly-owned subsidiary of the Company, issued US$650 million 3.00% guaranteed notes due 2032, which are listed on the Singapore Exchange Securities Trading Limited. The notes are irrevocably and unconditionally guaranteed by HKT Group Holdings Limited ("HKTGH”) and Hong Kong Telecommunications (HKT) Limited ("HKTL"), both being wholly-owned subsidiaries of the Company, and rank pari passu with all other outstanding unsecured and unsubordinated obligations of HKTGH and HKTL. 29
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