25. Trade and other receivables
|
|
|
12/31/17 |
|
12/31/16 |
|
12/31/15 |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Trade receivables |
|
407,975 |
|
491,018 |
|
399,200 |
|
Allowance on doubtful trade receivables |
|
(1,335) |
|
(1,491) |
|
(41,976) |
|
|
|
406,640 |
|
489,527 |
|
357,224 |
|
Other receivables and refundable deposits |
|
209,668 |
|
156,295 |
|
142,622 |
|
|
|
616,308 |
|
645,822 |
|
499,846 |
The Group determines credit terms mostly ranging from 30 to 60 days for each customer on a case- by-case basis, based on its assessment of such customer’s financial standing and business potential with the Group.
The Group determines its allowance on doubtful trade receivables based on the Group’s historical experience and the relative aging of receivables as well as individual assessment of certain debtors. The Group provides allowance on doubtful trade receivables based on recoverable amount by making reference to the age category of the remaining receivables and subsequent settlement. The Group’s allowance on doubtful trade receivables excludes receivables from a limited number of customers due to their high credit worthiness. The Group recognized US$0.3 million, US$0.2 million and US$0.5 million of allowance on doubtful trade receivables respectively during the year ended December 31, 2017, 2016 and 2015 respectively. The Group reviews, analyzes and adjusts allowance on doubtful trade receivables on a monthly basis.
In evaluating the customers’ credit quality, the Group used an internal system based on each customer’s operation size, financial performance, listing status, payment history and other qualitative criteria. These criteria are reviewed and updated annually. Based on such evaluation, the Group believes the recoverability of those receivables that are not impaired is reasonably assured.
Trade receivables
Of the trade receivables balance at the end of the year of 2017, 2016 and 2015, US$228.9 million, US$208.3 million and US$125.7 million respectively are due from the Group’s two largest customers.
The following is an aged analysis of trade receivables presented based on the invoice date at the end of the reporting period.
Age of receivables
|
|
|
12/31/17 |
|
12/31/16 |
|
12/31/15 |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Within 30 days |
|
148,131 |
|
274,087 |
|
177,542 |
|
31–60 days |
|
187,623 |
|
179,453 |
|
151,377 |
|
Over 60 days |
|
72,221 |
|
37,478 |
|
70,281 |
|
Total trade receivables |
|
407,975 |
|
491,018 |
|
399,200 |
Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting for which the Group has not recognized an allowance on doubtful trade receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
|
|
|
12/31/17 |
|
12/31/16 |
|
12/31/15 |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Neither past due nor impaired |
|
331,469 |
|
444,145 |
|
312,479 |
|
Past due but not impaired |
|
|
|
|
|
|
|
Within 30 days |
|
62,267 |
|
34,872 |
|
39,737 |
|
31–60 days |
|
9,583 |
|
8,875 |
|
3,534 |
|
Over 60 days |
|
3,321 |
|
1,635 |
|
1,474 |
|
Total carrying amount |
|
406,640 |
|
489,527 |
|
357,224 |
|
Average overdue days |
|
26 |
|
27 |
|
23 |
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
Movement in allowance on doubtful trade receivables
|
|
|
12/31/17 |
|
12/31/16 |
|
12/31/15 |
|
|
|
USD’000 |
|
USD’000 |
|
USD’000 |
|
Balance at beginning of the year |
|
1,491 |
|
41,976 |
|
42,014 |
|
Addition in allowance on doubtful trade receivables |
|
301 |
|
201 |
|
528 |
|
Amounts written off during the year as uncollectible |
|
(19) |
|
(39,083) |
|
(25) |
|
Reversal of allowance on doubtful trade receivables |
|
(438) |
|
(1,603) |
|
(541) |
|
Balance at end of the year |
|
1,335 |
|
1,491 |
|
41,976 |
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the end of the reporting period.