Employee Benefit (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Components of Net Benefit Expense Recognized in Income Statement and Funded Status and Amounts Recognized in Consolidated Balance Sheets

The following tables summaries the components of net benefit expense recognized in the income statement and the funded status and amounts recognized in the consolidated balance sheet for the plan:

	For the year ended December 31,
Net benefit cost	2017		2016		2015
	US$’000		US$’000		US$’000
Current service cost		360		410		362
Interest cost on benefit obligation		210		180		189
Net benefit cost		570		590		551

	For the year ended December 31,
Other comprehensive income	2017		2016			2015
	US$’000		US$’000			US$’000
Actuarial (gain) / loss – experience		251		217			(15	)
Actuarial (gain) / loss – demographic assumption		184		—			(2	)
Actuarial (gain) / loss – financial assumption		337		(219	)		171
Actuarial loss		772		(2	)		154

	For the year ended December 31,
Change in the defined obligation	2017			2016			2015
	US$’000			US$’000			US$’000
Defined benefit obligation at January 1		6,652			6,305			6,738
Current service cost		360			410			362
Interest cost on benefit obligation		210			180			189
Benefits paid directly by the Company		(274	)		(269	)		(597	)
Actuarial loss in other comprehensive income		772			(2	)		154
Exchange differences		573			28			(541	)
Defined benefit obligation at December 31		8,293			6,652			6,305

Significant Assumptions Used in Determining Actuarial Present Value of Defined Benefit Obligations

The significant assumptions used in determining the actuarial present value of the defined benefit obligations for the year ended December 31, 2017 and 2016 are as follows:

Maturity Profile of Defined Benefit Obligation

The following pension benefit payments are expected payments to be made in the future years out of the defined benefit plan obligation:

	As of December 31,
	2017		2016
	US$’000		US$’000
Within the next 12 months (next annual reporting period)		877		594
Between 2 and 5 years		1,616		1,496
Between 5 and 10 years		3,183		2,431
Beyond 10 years		15,392		13,541
Total expected payments		21,068		18,062

Weight average duration of defined benefit obligation	11 years		11 - 12 years

Sensitivity Analysis of One-percentage Point Change in Assumed Rates

A one-percentage point change in the assumed rates would have yielded the following effects:

	2017			2016
	US$’000			US$’000
Discount rate – 1% increase		(721	)		(588	)
Discount rate – 1% decrease		844			687
Rate of salary increase – 1% increase		808			661
Rate of salary increase – 1% decrease		(707	)		(574	)