Investment Properties

12 Months Ended

Dec. 31, 2018

Disclosure Of Investment Property [Abstract]

17.	INVESTMENT PROPERTIES

17(a)Net book value of investment properties

	Land not being used for operation		Office buildings for rent			Total
	US$’000		US$’000			US$’000
As of December 31, 2018
Cost		430		695			1,125
Less: Accumulated depreciation		—		(405	)		(405	)
Net book value		430		290			720

	Land not being used for operation		Office buildings for rent			Total
	US$’000		US$’000			US$’000
As of December 31, 2017
Cost		429		712			1,141
Less: Accumulated depreciation		—		(378	)		(378	)
Net book value		429		334			763

A reconciliation of the net book value of investment properties was as follow:

	2018			2017
	US$’000			US$’000
Net book value at January 1		763			653
Depreciation (included in administrative expenses)		(35	)		(35	)
Addition		—			84
Exchange difference		(8	)		61
Net book value at December 31		720			763

17(b)The amount recognized in profit arising from the investment properties

	2018			2017			2016
	US$’000			US$’000			US$’000
Rental income derived from investment properties		84			68			36
Direct operating expenses (including repairs and maintenance) generating rental income		(1	)		(1	)		(1	)
Direct operating expenses (including repairs and maintenance) that did not generate rental income		—			(1	)		(1	)
Net profit arising from investment properties carried at cost		83			66			34

17.	INVESTMENT PROPERTIES (continued)

17(c)Measuring investment properties at fair value

The fair value of the investment properties are stated below:

	As of December 31,
	2018		2017
	US$’000		US$’000
Land not being used for operation		10,656		9,548
Office buildings for rent		1,397		1,303

The fair value of aforementioned investment properties have been determined based on the valuation and is considered a level 3 measurement. The valuation has been made on the assumption to sell the property interests in the open market in the neighborhood without the benefit of any deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which would serve to increase the value of the property interests. The valuation adopted market comparison approach to estimate the fair market value of the properties. Under the market comparison approach, the appraisal is based on recent sales and listings of comparable property. Adjustments were made for differences between the subject property and those actual sales and listings regarded as comparable. The factors which used for considering the property valuation include the significant unobservable inputs, such as location, transportation, land uses, facilities, neighboring area, land characteristics, potential, regulations and liquidity.

17(d)Pledge

Information about the investment properties that were pledged to others as collaterals is provided in Note 27(e) (i).