TRADE RECEIVABLES

12 Months Ended

Dec. 31, 2018

Disclosure Of TRADE RECEIVABLES [Abstract]

Disclosure of trade and other receivables [text block]

17.

TRADE RECEIVABLES

	As of December 31,
	2018			2017
	RMB’000			RMB’000
Trade receivables		650,963			627,865
Less: provision for bad debt allowance		(426,849	)		(95,504	)
		224,114			532,361

The Company’s trade receivables are denominated in Renminbi and non-interest bearing. In 2011, the credit period granted to distributors was generally for a period within 90 days. Since the end of 2012, the Company had extended the collection period to 150 days to address funding pressures of its distributors. Other customers were granted a credit period of 90 days in the year ended December 31, 2013, and extended to 120 days in the year ended December 2016 and 2017. As of December 31, 2018 and 2017, the Company accrued RMB 426,849,000 and RMB 95,504,000, respectively, as a provision for bad debt related to the amount of outstanding trade receivables that did not conform with the Company’s credit policy.

All of the trade receivables are expected to be recovered within one year. An aging analysis of the Company's trade receivables, based on the invoice date, is as follows:

	As of December 31,
	2018		2017
	RMB’000		RMB’000
Within 90 days		57,785		246,441
Between 3 and 6 months		69,037		275,329
More than 6 months		97,292		10,591
		224,114		532,361

An aging analysis of trade receivables that were neither past due nor impaired or past due but not impaired, is as follows:

			Past due but not impaired
	Neither past due nor impaired		Less than 30 days		31 to 120 days		Over 120 days		Sub-total		Total
	RMB'000		RMB'000		RMB'000		RMB'000		RMB'000		RMB'000
December 31, 2017		521,770		10,591		-		-		-		532,361
December 31, 2018		126,823		97,291		-		-		-		224,114

Receivables that were neither past due nor impaired relate to a large number of customers for whom there was no recent history of default. All amounts are short-term. The Company does not hold any collateral over these receivables.

The net carrying value of trade receivables is considered a reasonable approximation of fair value. As of December 31, 2018, the Company is exposed to certain credit risks as 30% and 97% of the total trade receivables were due from the Company's largest and the five largest customers, respectively. As of December 31, 2017, the Company is exposed to certain credit risks as 13% and 43% of the total trade receivables were due from the Company's largest and the five largest customers, respectively.