Income and Expenses Items

12 Months Ended

Dec. 31, 2020

7.	INCOME AND EXPENSES ITEMS

7(a)Other operating income

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Gain on disposal of property, plant, and equipment		239		88		93
Rental income		199		89		99
Reversal of allowance for other receivable		80		—		—
Reversal of allowance for trade receivables for related parties		11		—		—
Reversal of allowance for trade receivable		—		122		—
Reversal of allowance for foreseeable loss		—		—		507
Other operating income – others		285		86		106
Total other operating income		814		385		805

7(b)Other operating expenses

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Allowance for trade receivables		124		—		570
Impairment of property, plant, and equipment		4		546		11
Allowance for foreseeable loss		—		193		—
Allowance for other receivable		—		30		53
Allowance for trade receivables for related parties		—		—		1
Other operating expenses – others		1		1		810
Total other operating expenses		129		770		1,445

For the year ended December 31, 2018, the Company recognized other operating expenses – others, which amounted to $749, due to a write-off of other current assets.

7.	INCOME AND EXPENSES ITEMS (continued)

7(c)Finance costs

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Interest on debts and borrowings		536		754		1,196
Interest on leases liabilities		79		91		4
Total interest expenses		615		845		1,200
Banking charges		129		167		178
Total finance costs		744		1,012		1,378

7(d)Finance income

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Interest income		320		506		482
Total finance income		320		506		482

7(e)Other income

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Government grants		973		425		106
Dividend income		108		109		105
Net gain on financial instruments		3		146		—
Other income		89		37		1,606
Total other income		1,173		717		1,817

Other Income for the year ended December 31, 2018 includes income from discharge of related party liabilities, which amounted to $1,537. Refer to Note 24(b) for related party transactions.

The government grants for year 2020 due to the COVID-19 epidemic is US $882K.

7(f)Other expenses

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Others		1		3		9
Net loss on financial instruments		—		—		2
Total other expenses		1		3		11

7.	INCOME AND EXPENSES ITEMS (continued)

7(g)Depreciation, amortization and lease expense included in the consolidated income statements

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Included in cost of sales:
Depreciation – tangible assets		3,893		4,089		4,162
Depreciation – right of use assets		121		135		—
Amortization – intangible assets		19		10		9
Operating lease expenses		2		3		16
Included in selling expenses:
Depreciation – tangible assets		92		93		141
Depreciation – right of use assets		113		112		—
Amortization – intangible assets		1		1		1
Operating lease expenses		1		1		184
Included in general and administrative expenses:
Depreciation – tangible assets		590		552		598
Depreciation – right of use assets		387		260		—
Amortization – intangible assets		42		39		34
Amortization – prepaid land lease payment		—		—		38
Depreciation – investment property		144		33		35
Operating lease expenses		14		170		200
		5,419		5,498		5,418

7(h)Employee benefits expenses

	For the year ended December 31,
	2020		2019		2018
	US$’000		US$’000		US$’000
Included in cost of sales:
Wages and salaries		13,065		14,429		13,674
Labor and health insurance costs		71		126		162
Pension costs		736		994		890
Other employment benefits		702		816		892
Included in selling expenses:
Wages and salaries		3,557		3,495		3,685
Labor and health insurance costs		7		12		14
Pension costs		300		330		324
Other employment benefits		14		50		68
Included in general and administrative expenses:
Wages and salaries		8,861		8,117		8,818
Labor and health insurance costs		89		85		224
Pension costs		640		757		671
Director fees		1,065		640		1,046
Other employment benefits		186		286		325
Total employee benefits expenses		29,293		30,137		30,793

The accrued compensation and retirement benefits for expatriates were included in employee benefits expenses and in accruals.