# 16. INVESTMENT IN AN ASSOCIATE (Continued)

Details of the Group’s associate at the end of the reporting period are as follows:

<table><tr><td>Name of entity</td><td>Country of 
reigstration</td><td>Principal 
lpace of 
business</td><td colspan="2">Proportion of 
ownership interest 
held by the Group</td><td colspan="2">Proportion of 
voting rihgts 
held by the Group</td><td>Principal activity</td></tr><tr><td></td><td></td><td></td><td>2020</td><td>2019</td><td>2020</td><td>2019</td><td></td></tr><tr><td>Shanhiiga Duonng 
BiotechnoloCgy o., 
Ltd. (“Duonin”g)</td><td>PRC</td><td>PRC</td><td>15.86%</td><td>8.13%</td><td>20%</td><td>20%</td><td>Sales of serum-free media and 
disposable products, formulation 
production and services</td></tr></table>

In April 2019, the Group acquired 9.32% of the equity interest in Duoning from independent third parties for a total purchase price of US\$5,000,000 (equivalent to RMB33,798,000). In December 2019, other investors further invested in Duoning and the Group’s equity interest was diluted to 8.13%. In December 2020, the Group further acquired 7.73% of the equity interest in Duoning from its shareholders for a purchase price of RMB154,526,000. The Group is able to exercise significant influence over Duoning because it has the power to appoint one out of the five directors of Duoning under the Articles of Association of Duoning.

# 17. DEFERRED TAXATION

For the purpose of presentation in the consolidated statement of financial position, certain deferred tax assets and liabilities have been offset. The following is a summary of the deferred tax balances for financial reporting purposes:

<table><tr><td rowspan="2"></td><td>2020</td><td>2019</td></tr><tr><td>RMB’000</td><td>RMB’000</td></tr><tr><td>Deferred tax assets</td><td>80,136</td><td>36,043</td></tr><tr><td>Deferred tax liabilities</td><td>(180,885)</td><td>(24,734)</td></tr><tr><td></td><td>(100,749)</td><td>11,309</td></tr></table>

# 17. DEFERRED TAXATION (Continued)

The following are the major deferred tax assets and liabilities recognized and movements thereon before offsetting during the reporting periods:

<table><tr><td rowspan="2"></td><td>Deferred 
income</td><td>Allowance 
on 
inventories 
and credit 
losses</td><td>Accrued 
expenses</td><td>Accelerated 
tax 
depreciation</td><td>Deferred 
rental 
under 
IFRS 16</td><td>Fair value 
adjustment 
arising 
from 
acquisition 
of 
subsidiaries</td><td>Unrealized 
exchange 
gain</td><td>Derivative 
financial 
instruments</td><td>Others</td><td>Total</td></tr><tr><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td><td>RMB’000</td></tr><tr><td>At January 1, 2019</td><td>13,383</td><td>10,780</td><td>6,125</td><td>(10,487)</td><td>2,746</td><td>—</td><td>—</td><td>—</td><td>—</td><td>22,547</td></tr><tr><td>Acquisition of subsidiaries</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(27,401)</td><td>—</td><td>—</td><td>—</td><td>(27,401)</td></tr><tr><td>Credited to profit or loss</td><td>5,795</td><td>2,512</td><td>1,465</td><td>2,390</td><td>1,307</td><td>2,667</td><td>—</td><td>—</td><td>27</td><td>16,163</td></tr><tr><td>At December 31, 2019</td><td>1917,8</td><td>132,92</td><td>7,590</td><td>(8,097)</td><td>4,053</td><td>(247,34)</td><td>—</td><td>—</td><td>27</td><td>11,309</td></tr><tr><td>Credited (charged) to profit or loss</td><td>1272,3</td><td>2022,8</td><td>6,334</td><td>2,658</td><td>221,9</td><td>7,061</td><td>(124,375)</td><td>—</td><td>(68)</td><td>(7322,0)</td></tr><tr><td>Charged to OCI</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(391)</td><td>(38447,)</td><td>—</td><td>(38,838)</td></tr><tr><td>At December 31, 2020</td><td>31,901</td><td>33,520</td><td>13,924</td><td>(54,39)</td><td>6272,</td><td>(17,673)</td><td>(1247,66)</td><td>(38447,)</td><td>(41)</td><td>(10074,9)</td></tr></table>

As at December 31, 2020, the Group had unused tax losses of RMB47,182,000 (2019: RMB88,366,000) available to offset against future profits. No deferred tax asset has been recognized in respect of such losses in both 2020 and 2019 due to the unpredictability of future profit streams.

Apart from unused tax losses as mentioned above, at December 31, 2020, the Group had other deductible temporary differences of RMB504,630,000 (2019: RMB218,947,000), available to offset against future profits. As at December 31, 2020 and 2019, all the deductible temporary differences had been recognized in deferred tax assets.