Huawei 2008 Annual Report Download - page 32

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Investment properties
The Group is engaged in the manufacturing, sales and
marketing of telecommunications equipment and the provision
of related services. Beginning from 1 January 2004, it leased
certain buildings to an ex-subsidiary and a former related
company. Such buildings are classied as investment properties.
The carrying value of investment properties as of 31 December
2008 is USD 35,424 thousand (2007:USD 39,105 thousand).
The fair value of investment properties as of 31 December
2008 is estimated by the directors to be USD 68,360 thousand
(2007: USD 62,594 thousand). The investment properties have
not been valued by an external independent valuer.
The fair value of investment properties is determined by
the Group internally by reference to market conditions and
discounted cash ow forecasts. The Group's current lease
agreements, which were entered into on an arm's-length
basis, were taken into account.
Inventories
Raw materials
Work in progress
Finished goods
Goods delivered but not
completely installed
Total
2008
USD'000
601,019
307,731
872,613
1,596,274
3,377,637
2007
USD'000
537,736
269,343
810,344
649,853
2,267,276
Trade receivables
Other receivables
Pledged deposit
Total
2008
USD'000
6,988,320
1,679,445
182,753
8,850,518
2007
USD'000
5,148,013
340,046
18
5,488,077
Trade and other receivables
Cash and cash equivalents
2008
USD'000
3,080,612
2007
USD'000
1,892,266
Cash and cash equivalents
Trade payables
Dividends payable
Other trade payables
Total
2008
USD'000
6,078,337
14,714
2,589,235
8,682,286
2007
USD'000
4,247,896
5
1,781,604
6,029,505
Trade and other payable
Operating leases
Leases as lessee
Non-cancellable operating lease rentals are payable as follows:
Less than one year
Between one and two years
Between two and ve years
Total
2008
USD'000
54,349
33,536
25,509
113,395
2007
USD'000
36,293
21,805
11,348
69,446
The Group leases a number of warehouses, factory
facilities, office premises and staff apartments under
operating leases. The leases typically run for an initial
period of between one and ve years. None of the leases
includes contingent rentals. During the year ended 31
December 2008, USD 166,789 thousand was recognized
as an expense in the consolidated income statement in
respect of operating leases (2007: USD 145,695 thousand).
Leases as lesser
The Group leases out certain of its properties under
operating leases. Non-cancellable operating lease rentals
are receivable as follows:
Less than one year
Between one and ve years
Total
2008
USD'000
1,125
4,523
5,648
2007
USD'000
6,752
5,097
11,849
During the year ended 31 December 2008, USD 11,741
thousand was recognised as rental income in the consolidated
income statement (2007: USD 7,849 thousand).
FINANCIAL REPORT29