XML 36 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2018
Disclosure Of Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

15.

PROPERTY, PLANT AND EQUIPMENT

 

 

Land

 

Buildings

 

Building improvement

 

Machinery and equipment

 

Motor vehicle

and other asset

and assets under

finance lease

 

Office

equipment

 

Construction in

progress

 

Total

 

 

US$’000

 

US$’000

 

US$’000

 

US$’000

 

US$’000

 

US$’000

 

US$’000

 

US$’000

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2017

 

4,449

 

 

44,235

 

 

4,861

 

 

88,897

 

 

4,608

 

 

6,227

 

 

2,070

 

 

155,347

 

Additions

 

1,120

 

 

34

 

 

19

 

 

400

 

 

1,119

 

 

396

 

 

1,845

 

 

4,933

 

Disposals

 

 

 

 

 

 

 

(4,392

)

 

(914

)

 

(213

)

 

 

(5,519

)

Transfer

 

 

 

292

 

 

2,600

 

 

 

 

124

 

 

(3,016

)

 

 

Exchange differences

 

658

 

 

4,152

 

 

450

 

 

9,459

 

 

417

 

 

425

 

 

148

 

 

15,709

 

At December 31, 2017

 

6,227

 

 

48,421

 

 

5,622

 

 

96,964

 

 

5,230

 

 

6,959

 

 

1,047

 

 

170,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions

 

 

 

229

 

 

76

 

 

480

 

 

624

 

 

395

 

 

2,694

 

 

4,498

 

Disposals

 

 

 

(8

)

 

 

 

(1,120

)

 

(503

)

 

(490

)

 

 

 

(2,121

)

Transfer

 

 

 

 

 

3

 

 

1,418

 

 

505

 

 

102

 

 

(2,028

)

 

 

Exchange differences

 

(21

)

 

(752

)

 

14

 

 

(1,024

)

 

(76

)

 

(244

)

 

(40

)

 

(2,143

)

At December 31, 2018

 

6,206

 

 

47,890

 

 

5,715

 

 

96,718

 

 

5,780

 

 

6,722

 

 

1,673

 

 

170,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

Buildings

 

Building improvement

 

Machinery and equipment

 

Motor vehicle

and other asset

and assets under

finance lease

 

Office

equipment

 

Construction in

progress

 

Total

 

Depreciation/Impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2017

 

 

 

(28,612

)

 

(2,731

)

 

(75,482

)

 

(3,522

)

 

(5,363

)

 

 

 

(115,710

)

Depreciation charge for the year

 

 

 

(1,356

)

 

(254

)

 

(2,513

)

 

(477

)

 

(337

)

 

 

 

(4,937

)

Impairment

 

 

 

 

 

(217

)

 

 

 

(6

)

 

 

 

(223

)

Depreciation on disposals

 

 

 

 

 

4,024

 

 

877

 

 

207

 

 

 

 

5,108

 

Exchange differences

 

 

 

(3,114

)

 

(269

)

 

(8,302

)

 

(308

)

 

(389

)

 

 

 

(12,382

)

At December 31, 2017

 

 

 

(33,082

)

 

(3,254

)

 

(82,490

)

 

(3,430

)

 

(5,888

)

 

 

 

(128,144

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation charge for the year

 

 

 

(1,164

)

 

(296

)

 

(2,435

)

 

(604

)

 

(402

)

 

 

 

(4,901

)

Impairment

 

 

 

 

 

 

 

(10

)

 

 

 

(1

)

 

 

 

(11

)

Depreciation on disposals

 

 

 

6

 

 

 

 

1,119

 

 

503

 

 

486

 

 

 

 

2,114

 

Transfer

 

 

 

 

 

 

 

(46

)

 

 

 

46

 

 

 

 

 

Exchange differences

 

 

 

510

 

 

(17

)

 

914

 

 

49

 

 

200

 

 

 

 

1,656

 

At December 31, 2018

 

 

 

(33,730

)

 

(3,567

)

 

(82,948

)

 

(3,482

)

 

(5,559

)

 

 

 

(129,286

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

Buildings

 

Building improvement

 

Machinery and equipment

 

Motor vehicle

and other asset

and assets under

finance lease

 

Office

equipment

 

Construction in

progress

 

Total

 

Net book value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2018

 

6,206

 

 

14,160

 

 

2,148

 

 

13,770

 

 

2,298

 

 

1,163

 

 

1,673

 

 

41,418

 

At December 31, 2017

 

6,227

 

 

15,339

 

 

2,368

 

 

14,474

 

 

1,800

 

 

1,071

 

 

1,047

 

 

42,326

 

At January 1, 2017

 

4,449

 

 

15,623

 

 

2,130

 

 

13,415

 

 

1,086

 

 

864

 

 

2,070

 

 

39,637

 

 

 

15.

PROPERTY, PLANT AND EQUIPMENT (continued)

15(a)Impairment of property, plant and equipment

In 2018, 2017 and 2016 the Company recorded an impairment loss of $11, $223 and $2,524 on property, plant and equipment at Ningbo Pacific and SFO facilities.

The Company determined to dispose building, land use rights and machinery at Ningbo Pacific due to lack of profitability. The Company has entered into an agreement to sell building and land use rights, the assets has classified as held for sale as of December 31, 2016. See the Note 7(a). The Company performed a valuation for utilized machinery measured at fair value less costs to sell using a cost approach. Its fair value measurement was classified as Level 3 of the fair value hierarchy. After considering the relevant evidence, the key assumption used included replacement costs, residual value and remaining useful life of these existing assets. The impairment test revealed that the recoverable amount was lower than the carrying amount, the Company recognized an impairment of $1,131 in other operating expenses accordingly in 2016. In 2017, the company provided an impairment loss of $223 because there are no future plans for the remaining machinery and equipment. The impairment is presented within the impairment of property, plant and equipment of North Asia segment in Note 5.

In 2016, SFO has not been able to make a profit due to Thailand's political situation and change in market demand, the Company considered this situation had an indication of possible impairment and performed an impairment test on the CGU composed of property, plant and equipment used in the manufacturing of fiber optic cables. The Company determined the recoverable amount of the CGU to be $0 based on the value in use. The key assumptions used in calculating the value in use included the revenue growth and a discount rate of 14.8%; as a result, the Company recognized an impairment of $1,393 in other operating expenses. The impairment is presented within the impairment of property, plant and equipment of Thailand segment in Note 5.

15(b)Financial leases under property, plant and equipment

The carrying value of motor vehicles under financial leases as of December 31, 2018, 2017 and 2016 were $66, $50 and $71, respectively. These assets under financial lease are pledged for financial lease liabilities (Note 25(b)).

15(c)Pledge

Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 27(e) (i).