Income Tax (Tables)

12 Months Ended

Dec. 31, 2018

Major Components Of Tax Expense Income [Abstract]

Major Components of Income Tax Expenses

The major components of income tax expenses for the years ended December 31, 2018, 2017 and 2016 are:

	2018			2017			2016
	US$’000			US$’000			US$’000
Consolidated income statements
Current income tax:
Current income tax charge		4,068			4,785			(681	)
Previously unrecognized tax loss used to reduce current income tax		(128	)		(1,066	)		(21	)
Adjustments for current income tax of prior years		1			348			77
Total current income tax		3,941			4,067			(625	)
Deferred tax expenses/(benefits):
Relating to origination and reversal of temporary differences		243			1,210			1,135
Relating to change in tax rate		—			—			—
Previously unrecognized tax loss used to reduce deferred tax expenses		(298	)		(137	)		—
Total deferred tax expenses/(benefits)		(55	)		1,073			1,135
Income tax expense reported in the income statement		3,886			5,140			510
Consolidated statements of comprehensive income
Deferred tax related to items recognized in other comprehensive income during the year:
Change in the fair value of equity instrument measured at fair value through other comprehensive income
Recognized during the year		(84	)		(16	)		(20	)
Effect of change in tax rate		—			—			—
Net loss on actuarial gains and losses
Recognized during the year		(82	)		(154	)		—
Effect of change in tax rate		—			—			—
Income tax benefits charged to other comprehensive (loss) income		(166	)		(170	)		(20	)

Reconciliation of Statutory Tax Rate and Effective Tax Rate

The reconciliation of the statutory tax rate and the Company’s effective tax rate is as follows:

	2018			2017			2016
	US$’000			US$’000			US$’000
Profit before tax		11,332			18,668			6,535
Tax at statutory rate of 20% (2017: 20%; 2016: 20%)		2,266			3,734			1,307
Foreign income taxed at different rate		697			1,151			599
Expenses not deductible for tax purpose		(33	)		600			225
Utilization of previously unrecognized tax losses		(128	)		(1,066	)		(21	)
Tax benefit arising from previously unrecognized tax losses		(298	)		(137	)		—
Net deferred tax asset not recognized		679			78			1,305
Written-off deferred tax		(4	)		10			(678	)
Tax exempt on income		(135	)		(245	)		(21	)
Uncertain tax position		11			(270	)		(3,010	)
Return to provision adjustment		1			348			77
Deferred tax liability arising from undistributed earnings		578			602			681
Withholding tax on dividends		270			349			118
Others		(18	)		(14	)		(72	)
Income tax expense reported in income statement		3,886			5,140			510

Summary of Deferred Tax

Deferred tax relates to the following:

	Consolidated balance sheet						Consolidated income statement
	As of December 31,						For the year ended Decembers 31,
	2018			2017			2018			2017			2016
	US$’000			US$’000			US$’000			US$’000			US$’000
Outside basis differences		(3,614	)		(3,036	)		578			602			(269	)
Revaluations of financial assets at fair value through other comprehensive income (2017: Revaluations of available-for-sale investment to fair value)		(345	)		(429	)		—			—			—
Accrued interest income		(154	)		(141	)		12			11			39
Unutilized building allowance (net)		(133	)		(235	)		(95	)		11			119
Unused tax losses		644			197			(459	)		455			133
Allowance for doubtful accounts		290			200			(97	)		(25	)		(36	)
Inventory impairment		657			422			(236	)		(161	)		714
Allowance for impairment in investments		—			—			0			0			382
Rebates and other accrued liabilities		426			427			(38	)		(6	)		171
Unpaid retirement benefits		1,353			1,291			(54	)		(62	)		(47	)
Deferred revenue and cost of sales		16			2			(14	)		393			(62	)
Actuarial loss		450			368			—			—			—
Unabsorbed depreciation		701			699			(55	)		(45	)		34
Mark-to-Market value of forward contract		28			—			(28	)		—			—
Others		(325	)		103			431			(100	)		(43	)
Deferred tax expenses / (benefits)								(55	)		1,073			1,135
Net deferred tax assets		(6	)		(132	)

Disclosure Of Reconciliation Of Changes In Deferred Tax Liability Asset Explanatory

Reconciliation of deferred tax assets, net

	2018			2017			2016
	US$’000			US$’000			US$’000
Opening balance as of January 1		(132	)		526			1,601
Tax benefit/(expenses) during the period recognized in profit or loss		55			(1,073	)		(1,135	)
Tax benefit/(expenses) during the period recognized in other comprehensive income		166			170			20
Exchange difference on translation foreign operations		(95	)		245			40
Closing balance as of December 31		(6	)		(132	)		526

Year of Expiration and Amount of Available Unused Net Operating Losses

The Company has available unused net operating losses which arose in Thailand, China, Hong Kong, Singapore and Australia as of December 31, 2018, and arose in Thailand, China and Hong Kong as of December 31, 2017, that may be applied against future taxable income and that expire as follows respectively:

	As of December 31,
Year of expiration	2018		2017
	US$’000		US$’000
2018		—		891
2019		784		802
2020		3,020		4,601
2021		5,121		5,220
2022		2,105		1,399
2023		4,760		—
No expiration		972		843
		16,762		13,756

Reconciliation of Beginning and Ending Amounts of Uncertain Tax Position

A reconciliation of the beginning and ending amounts of uncertain tax position is as follows:

Change in Uncertain Tax Positions
	2018			2017			2016
	US$’000			US$’000			US$’000
Balance as of January 1		706			828			1,856
Additions based on tax positions related to the current year		—			—			—
Decrease due to lapses in statute of limitations		—			(175	)		(923	)
Exchange difference		(32	)		53			(105	)
Balance as of December 31		674			706			828

Accrued Interest and Penalties on Uncertain Tax Position

The amount of related interest and penalties the Company has provided as of the dates listed below were:

	As of December 31,
	2018		2017		2016
	US$’000		US$’000		US$’000
Accrued interest on uncertain tax position		867		800		897
Accrued penalties on uncertain tax position		461		486		535
Total accrued interest and penalties on uncertain tax position		1,328		1,286		1,432