Investment Properties

12 Months Ended

Dec. 31, 2019

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, 2019
Cost		467		716			1,183
Less: Accumulated depreciation		—		(453	)		(453	)
Net book value		467		263			730

	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

17.	INVESTMENT PROPERTIES (continued)

17(a)Net book value of investment properties (continued)

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

	2019			2018
	US$’000			US$’000
Net book value at January 1		720			763
Depreciation (included in administrative expenses)		(33	)		(35	)
Exchange difference		43			(8	)
Net book value at December 31		730			720

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

	2019			2018			2017
	US$’000			US$’000			US$’000
Rental income derived from investment properties		78			84			68
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	)
Net profit arising from investment properties carried at cost		77			83			66

Undiscounted lease payments receivable to be received during the lease terms are immaterial.

17(c)Measuring investment properties at fair value

The fair value of the investment properties are stated below:

	As of December 31,
	2019		2018
	US$’000		US$’000
Land not being used for operation		11,566		10,656
Office buildings for rent		1,460		1,397

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).