INVESTMENT PROPERTIES

12 Months Ended

Dec. 31, 2022

Disclosure of detailed information about investment property [abstract]

17(a) Net book value of investment properties


	Land not being used for operation	Office buildings for rent	Warehouse	Land leasehold right	Other	Total
	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000
As of December 31, 2022
Cost	403	515	5,018	91	11	6,038
Less: Accumulated depreciation	—	(385)	(397)	(5)	(1)	(788)
Net book value	403	130	4,621	86	10	5,250

As of December 31, 2021
Cost	418	716	5,366	98	—	6,598
Less: Accumulated depreciation	—	(516)	(270)	(3)	—	(789)
Net book value	418	200	5,096	95	—	5,809

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


	2022	2021
	US$’000	US$’000
Net book value at January 1	5,809	6,378
Addition	12	—
Disposals	(30)	—
Depreciation (included in administrative expenses)	(176)	(196)
Exchange difference	(365)	(373)
Net book value at December 31	5,250	5,809

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


	2022	2021	2020
	US$’000	US$’000	US$’000
Rental income derived from investment properties	243	170	190
Direct operating expenses (including repairs and maintenance) generating rental income	(157)	(174)	(145)
Direct operating expenses (including repairs and maintenance) that did not generate rental income	(21)	(23)	—
Net profit (loss) arising from investment properties carried at cost	65	(27)	45

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,
	2022	2021
	US$’000	US$’000
Land not being used for operation	10,322	10,528
Office buildings for rent	1,995	2,444
Warehouse	5,291	5,658
Land leasehold right	158	173
Other	11	—

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).