content_image/168444.jpg content_image/168446.jpg
## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

(RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA) 

## 15. Other financial liabilities (cont’d) 

## (b) Interest-bearing loans and borrowings (cont’d) 

## Factoring arrangement 

The Group factored a portion of the trade receivables during the years ended December 31, 2012 and 2013. Factoring is done with reputable bank in China. As of December 31, 2013, Rmb 500.0 million (2012: Rmb Nil) was included in the “interest-bearing loans and borrowings” representing the Group’s obligation to the banks for trade receivables factored with recourse. 

## 16. Deferred grants 

<img src='content_image/168444.jpg'>

Government grants have been received for the purchase of certain items of property, plant and equipment. 

## 17. Inventories 

Inventories are comprised of: 

<img src='content_image/168446.jpg'>

Inventories recognized as an expense in “Cost of sales” are Rmb 10,975,089, Rmb 9,477,769 and Rmb 11,283,308 (US$1,843,648) for the years ended December 31, 2011, 2012 and 2013 respectively. 

