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Right-of-use assets
12 Months Ended
Jun. 30, 2022
Right-of-use assets  
Right-of-use assets

15 Right-of-use assets

The analysis of the net book value of right-of-use assets by class of underlying asset is as follows:

    

    

Warehouse

    

Land use

Property

equipment

right

(Note (i))

(Note (ii))

(Note (iii))

Total

    

RMB’000

    

RMB’000

    

RMB’000

    

RMB’000

Cost:

  

  

  

At July 1, 2020

 

832,657

 

24,857

 

857,514

Acquisitions through business combination

36,632

36,632

Additions

 

392,648

 

11,305

 

403,953

Derecognition

 

(155,478)

 

(24,179)

 

(179,657)

Exchange adjustments

 

(29,042)

 

(281)

 

(29,323)

At June 30, 2021

 

1,077,417

 

11,702

 

1,089,119

Acquisition of a subsidiary (Note 33(b))

1,781,595

1,781,595

Additions

 

337,717

 

414

 

815

338,946

Derecognition

 

(408,249)

 

(1,470)

 

(409,719)

Exchange adjustments

 

6,239

 

2

 

6,241

At June 30, 2022

 

1,013,124

 

10,648

 

1,782,410

2,806,182

Accumulated depreciation:

 

  

 

  

 

  

At July 1, 2020

 

(299,001)

 

(13,018)

 

(312,019)

Charge for the year

 

(205,344)

 

(8,146)

 

(213,490)

Derecognition

 

131,424

 

19,425

 

150,849

Exchange adjustments

 

13,033

 

191

 

13,224

At June 30, 2021

 

(359,888)

 

(1,548)

 

(361,436)

Charge for the year

 

(275,310)

 

(3,765)

 

(30,531)

(309,606)

Derecognition

 

243,575

 

1,470

 

245,045

Exchange adjustments

 

(2,917)

 

(1)

 

(2,918)

At June 30, 2022

 

(394,540)

 

(3,844)

 

(30,531)

(428,915)

Impairment:

 

  

 

  

 

  

At July 1, 2020

 

(42,628)

 

 

(42,628)

Charge for the year

 

 

 

Derecognition

1,759

1,759

Exchange adjustments

 

3,073

 

 

3,073

At June 30, 2021

 

(37,796)

 

 

(37,796)

Charge for the year

 

 

 

Derecognition

 

4,249

 

 

4,249

Exchange adjustments

(1,131)

(1,131)

At June 30, 2022

 

(34,678)

 

 

(34,678)

Net book value:

 

  

 

  

 

At June 30, 2021

 

679,733

 

10,154

 

689,887

At June 30, 2022

 

583,906

 

6,804

 

1,751,879

2,342,589

The analysis of expense items in relation to leases recognized in profit or loss is as follows:

For the year ended June 30, 

    

2020

2021

    

2022

    

RMB’000

    

RMB’000

    

RMB’000

Depreciation charge of right-of-use assets by class of underlying asset:

  

  

Property

 

203,662

205,344

 

275,310

Warehouse equipment

 

10,455

8,146

 

3,765

Land use right

30,531

 

214,117

213,490

 

309,606

Interest on lease liabilities (Note 10)

 

26,117

26,817

 

32,991

Expense relating to short-term leases and other leases with remaining lease term ending on or before June 30

 

28,486

28,656

 

28,384

Variable lease payments not included in the measurement of lease liabilities

 

3,521

2,846

 

4,648

COVID-19 rent concessions

 

(12,802)

(42,698)

 

(35,548)

Details of total cash outflow for leases and the maturity analysis of lease liabilities are set out in Note 25(c) and Note 28, respectively.

Notes:

(i)Property – right-of-use assets

The Group leases properties for its offices space, warehouse storage and retail stores. The leases of offices space typically run for a period of two to fourteen years, leases of warehouse storage and retail stores typically run for two to ten years.

Variable lease payments based on sales

Some leases of self-operated stores contain variable lease payments, which typically range from 1% to 15% of the annual sales that each store makes in excess of a certain breakpoint predetermined with landlord. These terms are common in retail stores in countries such as United states, Canada and Singapore where the Group operates. The relative magnitude of variable lease payments to fixed payments is low given sales from most stores with variable lease payments terms did not exceed the breakpoints. The Group expects the relative proportions of variable lease payments to fixed lease payments to increase in future years when sales from these stores increase.

(ii)Warehouse equipment – right-of-use assets

The Group leases warehouse equipment, with lease terms of two to three years.

(iii)Land use right

The Group acquired the land use right of a parcel of land located in the PRC during the year ended June 30, 2022 through the acquisition of a subsidiary as disclosed in Note 33(b), with a lease term of 40 years.

(iv)Rental deposits

The refundable rental deposit itself is not part of the lease payments and is in the scope of IFRS 9. Therefore, the rental deposit should be measured at fair value on initial recognition. The difference between the initial fair value and the nominal value of the deposit is an additional lease payment made by the Group and it is included in the measurement of the right-of-use assets.

(v)COVID-19-Related Concessions

As disclosed in Note 2(c), the Group has early adopted the 2020 Amendment to IFRS 16, Leases, COVID-19-Related Rent Concessions and the 2021 Amendment to IFRS16, Leases, COVID-19-Related Concessions beyond 30 June 2021, and has applied the practical expedient introduced by the Amendment to all eligible rent concessions received by the Group during the years ended June 30, 2021 and 2022.