20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

 ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-14542

ASIA PACIFIC WIRE & CABLE

CORPORATION LIMITED

(Exact name of Registrant as specified in its charter)

Bermuda

(Jurisdiction of incorporation or organization)

15/Fl. B, No. 77, Sec. 2

Dunhua South Road

Taipei, 106, Taiwan

Republic of China

(Address of principal executive offices)

Ivan Hsia

15/Fl. B, No. 77, Sec. 2

Dunhua South Road

Taipei, 106, Taiwan

Republic of China

Tel: +886-2-27122558

Email: ivan.hsia@apwcc.com

(Name, telephone, e-mail and/or facsmile number and address of company contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value 0.01 per share	APWC	NASDAQ Global Market

Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

13,819,669 Common Shares

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☒ Yes      ☐ No

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,  or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated Filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Emerging growth company ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 20-F contains forward-looking statements within the meaning of the safe harbor provisions of the U,.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current beliefs or expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Such statements may include words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “believe”, “may”, “should”, “likely”, “seeks” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance.

Such statements are not promises or guarantees and are subject to a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include our ability to maintain and develop market share for our products; global, regional or national economic and financial conditions, the global drop in demand for and the pricing of commodities, including copper, our principal raw material, and their individual or collective impact on demand for our products and services; the introduction of competing products or technologies; the volatility of share prices on major securities exchanges throughout the world, our inability to successfully identify, consummate and integrate acquisitions; our potential exposure to liability claims; the uncertainty and volatility of the markets in which we operate; changes in laws or regulations applicable to the Company in the markets in which we conduct business; the availability and price of copper, our principal raw material; our ability to negotiate extensions of labor agreements on acceptable terms and to successfully deal with any labor disputes; our ability to service and meet all requirements under our debt, and to maintain adequate credit facilities and credit lines; in certain markets, our ability to compete effectively with state-owned enterprises (“SOEs”), which may receive governmental subsidies to enhance results or receive preferred vendor status in state controlled projects; our ability to make payments of interest and principal under our existing and future indebtedness; our ability to increase manufacturing capacity and productivity; the fact that we have operations outside the United States that may be materially and adversely affected by acts of terrorism, war and political and social unrest, or major hostilities; exposure to political and economic developments, crises, instability, terrorism, civil strife, expropriation and other risks of doing business in foreign markets; economic consequences arising from natural disasters and other similar catastrophes, such as floods, earthquakes, hurricanes and tsunamis; the fact that Asia Pacific Wire & Cable Corporation Limited (“APWC” or the “Company”) is a holding company that depends for income upon distributions from operating subsidiaries, most of which are not wholly-owned and for which there may be restrictions on the timing and amount of distributions; price competition and other competitive pressures; the impact of climate change on our business and operations and on our customers; tax inefficiencies associated with our cross-border operations, including without limitation, limitations on our ability to utilize net losses within our group of companies for income tax purposes; fluctuations in currency, exchange and interest rates, operating results and the impact of technological changes and other factors that are discussed in this report and in our other filings made with the Securities and Exchange Commission (the “SEC” or the “Commission”).

In particular, these statements include, among other things, statements relating to:

• our business strategy;

• our prospects for future revenues and profits in the markets in which we operate;

• the impact of political, legal or regulatory changes or developments in the markets in which we do business;

• our dependence upon the level of business activity and investment by our customers for the generation of our sales revenue;

• our reliance on our majority shareholder for research and development relating to our product lines

• the fact that our common shares (the “Common Shares”) are traded on a national exchange in the United States and the relative liquidity or lack thereof, based upon the historical trading volume of our publicly-traded Common Shares;

• our dependence on a limited number of suppliers for our raw materials and our vulnerability to fluctuations in the cost of our raw materials; and

• the liquidity generally of our property and assets.

We undertake no obligation to update any forward-looking statements or other information contained in this Annual Report, whether as a result of new information, future events or otherwise, except as required by law. You are advised, however, to consult any additional disclosures we make in our filings with the SEC. Also note that we provide a cautionary discussion of risks and uncertainties under the “Risk Factors” section of this Annual Report. These are factors that we think could cause our actual results to differ materially from expected results. Other factors besides those listed there could also adversely affect us.

CERTAIN DEFINITIONS AND CONVENTIONS

Unless otherwise specified, all references in this Annual Report to “Thailand” are to the Kingdom of Thailand, all references to “Singapore” are to The Republic of Singapore, all references to “Taiwan” are to Taiwan, The Republic of China, all references to “China” or to the “PRC” are to The People’s Republic of China (for the purpose of this Annual Report, excluding Hong Kong and Macau), all references to “Australia” are to the Commonwealth of Australia and all references to the “United States” or “U.S.” are to the United States of America.

Most measurements in this Annual Report are given according to the metric system. Standard abbreviations of metric units (e.g., “mm” for millimeter) have been employed without definitions. All references in this Annual Report to “tons” are to metric tons, which are equivalent in weight to 2,204.6 pounds.

With respect to measurements relating to the manufacture of wire and cable products, references to “pkm” are to kilometers of twisted pairs of copper wires.

Dollar amounts in this Annual Report are expressed in thousands ($000), except where otherwise indicated or with respect to earnings per share.

Unless otherwise specified, all references in this Annual Report to “$,” “U.S. dollars”, “USD” or “US$” are to United States dollars, the legal tender currency of the United States; all references to “Bt,” “Thai Baht” or “Baht” are to Baht, the legal tender currency of Thailand; all references to “Sing$” or “S$” are to Singapore dollars, the legal tender currency of Singapore; all references to “A$” or “AU$” are to Australian dollars, the legal tender currency of Australia; and all references to “RMB” are to Chinese Renminbi, the legal tender currency of China.

Part I

Item 1: Identity of Directors, Senior Management and Advisers

Not applicable

ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable

Item 3: Key Information

A. Selected Consolidated Financial Data

The following selected consolidated financial data is derived from the consolidated financial statements of the Company for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The selected data set forth below should be read in conjunction with, and is qualified in its entirety by, the discussion in “Item 5: Operating and Financial Review and Prospects” and the consolidated financial statements and the notes thereto referenced in “Item 18: Financial Statements.”

	For the Year Ended December 31,
	2019 (3)			2018 (2)			2017			2016			2015
	(in US$ thousands)
Income Statement Data:
Revenue	$	338,160		$	425,940		$	425,215		$	384,565		$	389,632
Costs of sales		(313,373	)		(389,692	)		(385,527	)		(352,957	)		(366,143	)
Gross profit		24,787			36,248			39,688			31,608			23,489
Other operating income		385			805			5,084			5,441			1,140
Selling, general & administrative expenses		(25,051	)		(26,924	)		(27,248	)		(26,325	)		(27,007	)
Other operating expenses		(770	)		(1,445	)		(909	)		(3,386	)		(332	)
Operating profit/(loss)		(649	)		8,684			16,615			7,338			(2,710	)
Finance costs		(1,012	)		(1,378	)		(1,221	)		(1,147	)		(1,547	)
Finance income		506			482			876			1,045			697
Share of loss of associates		(3	)		(3	)		(3	)		(710	)		(801	)
Impairment of investment in associates		—			—			—			(126	)		—
Loss on liquidation of a subsidiary		—			—			(261	)		—			—
Exchange gain/(loss)		1,550			1,741			2,784			(38	)		(4,223	)
Other income		717			1,817			214			267			119
Other expense		(3	)		(11	)		(336	)		(94	)		(180	)
Profit/(loss) before taxes		1,106			11,332			18,668			6,535			(8,645	)
Income taxes expense		(2,057	)		(3,886	)		(5,140	)		(510	)		(466	)
Profit/(loss) for the year	$	(951	)	$	7,446		$	13,528		$	6,025		$	(9,111	)
Attributable to:
Equity holders of the parent	$	(1,632	)	$	2,928		$	8,720		$	2,853		$	(7,694	)
Non-controlling interests	$	681		$	4,518		$	4,808		$	3,172		$	(1,417	)
Earnings per share (1)
Basic and diluted (loss)/profit for the year attributable to equity holders of the parent	$	(0.12	)	$	0.21		$	0.63		$	0.21		$	(0.56	)

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	As of December 31,
	2019 (3)		2018 (2)		2017		2016		2015
	(in US$ thousands)
Balance Sheet Data:
Cash and cash equivalents	$	53,673	$	60,778	$	46,093	$	48,231	$	51,303
Working capital		185,855		182,410		181,752		157,012		144,306
Total assets		298,911		305,798		334,843		293,596		305,256
Total debts		11,356		24,814		42,688		29,762		39,238
Net assets		228,435		221,816		222,826		197,175		193,275
Capital stock		138		138		138		138		138
Total APWC shareholders’ equity		153,854		150,028		153,328		135,950		134,309

(1) The calculation of the earnings per share is based on 13,819,669 basic and diluted weighted Common Shares issued and outstanding for each of the years ended December 31, 2019, 2018, 2017, 2016 and 2015.

(2) Includes the impact of the application of IFRS 9 and IFRS 15, as explained n Note 4.1(b) of our consolidated financial statement presented herewith.

(3) Includes the impact of the application of IFRS 16, as explained in Note 4.1(a) of our consolidated financial statements presented herewith.

Exchange Rate Information

Unless otherwise noted, for the convenience of the reader, translations of amounts from Baht, Singapore dollars, Renminbi and Australian dollars to U.S. dollars have been made at the respective noon buying rates in New York City for cable transfers in those currencies as certified for customs purposes by the Federal Reserve Bank of New York (the “Noon Buying Rate”) on December 31, 2019. The respective Noon Buying Rates on December 31, 2019 were US$ 1.00 = Bt 29.75; S$ 1.345; RMB 6.962; and A$ 1.423. The respective Noon Buying Rates on March 31, 2020, the latest practicable date before publication of this Annual Report, were US$ 1.00 = Bt 32.70; S$1.422; RMB 7.081 and A$ 1.629. No representation is made that the foreign currency amounts could have been or could be converted into U.S. dollars on these dates at these rates or at any other rates.

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

Thailand

The Thai Baht is convertible into foreign currencies and is subject to a managed float against a basket of foreign currencies, the most significant of which is the U.S. dollar. The composition of the basket for determining the value of the Baht is not made public by the Bank of Thailand. The following tables set forth, for the periods indicated, certain information concerning the Noon Buying Rate of the Thai Baht. No representation is made that the Baht or U.S. dollar amounts referred to herein could have been or could be converted into U.S. dollars or Baht, as the case may be, at any particular rate or at all.

Year Ended December 31,	At Period End		Average(1)		High		Low
	(Bt per $1.00)
2015		36.08		34.39		36.48		32.32
2016		35.81		35.22		36.33		34.54
2017		32.56		33.75		35.89		32.49
2018		32.31		32.27		33.44		31.11
2019		29.75		30.89		32.26		29.75

⁽¹⁾ Average means the average of the Noon Buying Rates on the last day of each month during a year.

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The high and low exchange rates for the six months preceding the date of this Annual Report were:

Month	High		Low
October 2019		30.61		30.16
November 2019		30.43		30.17
December 2019		30.36		29.75
January 2020		31.19		30.15
February 2020		31.83		30.97
March 2020		32.86		31.34

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

Singapore

The Singapore dollar is convertible into foreign currencies and floats against a trade-weighted basket of foreign currencies, the composition of which is not made public by Singapore’s central bank, the Monetary Authority of Singapore, but of which the U.S. dollar is a component. The following tables set forth, for the periods indicated, certain information concerning the Noon Buying Rate of the Singapore dollar. No representation is made that the Singapore dollar or U.S. dollar amounts referred to herein could have been or could be converted into U.S. dollars or Singapore dollars, as the case may be, at any particular rate or at all.

Year Ended December 31,	At Period End		Average(1)		High		Low
	(S$ per $1.00)
2015		1.417		1.378		1.434		1.317
2016		1.447		1.382		1.452		1.337
2017		1.336		1.373		1.450		1.336
2018		1.362		1.350		1.384		1.304
2019		1.345		1.363		1.391		1.345

⁽¹⁾ Average means the average of the Noon Buying Rates on the last day of each month during a year.

The high and low exchange rates for the six months preceding the date of this Annual Report were:

Month	High		Low
October 2019		1.385		1.361
November 2019		1.367		1.357
December 2019		1.366		1.345
January 2020		1.365		1.346
February 2020		1.401		1.369
March 2020		1.461		1.379

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

9

China

The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of Renminbi into foreign currencies, including the conversion rate limitations on capital transfers and through restrictions on foreign trade and other regulatory impediments to the free transferability of capital. The following tables set forth, for the periods indicated, certain information concerning the Noon Buying Rate of the Renminbi. No representation is made that the Renminbi or U.S. dollar amounts referred to herein could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Year Ended December 31,	At Period End		Average(1)		High		Low
	(RMB per $1.00)
2015		6.478		6.287		6.490		6.187
2016		6.943		6.655		6.958		6.448
2017		6.506		6.735		6.958		6.477
2018		6.876		6.629		6.974		6.265
2019		6.962		6.901		7.179		6.682

⁽¹⁾ Average means the average of the Noon Buying Rates on the last day of each month during a year.

The high and low exchange rates for the six months preceding the date of this Annual Report were:

Month	High		Low
October 2019		7.147		7.038
November 2019		7.039		6.977
December 2019		7.061		6.962
January 2020		6.975		6.859
February 2020		7.029		6.965
March 2020		7.110		6.924

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

Australia

The following tables set forth, for the periods indicated, certain information concerning the Noon Buying Rate of the Australian dollar. No representation is made that the Australian dollar or U.S. dollar amounts referred to herein could have been or could be converted into U.S. dollars or Australian dollars, as the case may be, at any particular rate or at all.

Year Ended December 31,	At Period End		Average(1)		High		Low
	(A$ per $1.00)
2015		1.372		1.342		1.446		1.218
2016		1.383		1.346		1.459		1.279
2017		1.280		1.301		1.383		1.239
2018		1.419		1.344		1.425		1.234
2019		1.423		1.438		1.493		1.373

⁽¹⁾ Average means the average of the Noon Buying Rates on the last day of each month during a year.

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The high and low exchange rates for the six months preceding the date of this Annual Report were:

Month	High		Low
October 2019		1.493		1.452
November 2019		1.479		1.446
December 2019		1.468		1.423
January 2020		1.493		1.432
February 2020		1.540		1.482
March 2020		1.738		1.503

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

B. CAPITALIZATION AND INDEBTEDNESS

Not applicable

C. REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable.

D. Risk Factors

You should carefully consider the following risks in connection with any investment in the Company, including any investment in our Common Shares. If any one of these risks or uncertainties occurs, ourbusiness, financial condition and results of operations could be materially and adversely affected. The risks and uncertainties described in this Annual Report on Form 20-F are not the only ones facing us. Additional risks and uncertainties that currently are not known to us or that we currently believe are not material also may adversely affect our business, financial condition and results of operations.

Risks Related to the Common Shares and the Company

Our Common Shares may be delisted from Nasdaq, which could affect their market price and liquidity.  If our Common Shares are delisted, investors may have difficulty disposing of their shares.

On November 21, 2019, the Company received written notification (the "Market Value Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it was not in compliance with the $5 million minimum market value of publicly held shares requirement set forth in the Nasdaq rules for listing on the Nasdaq Global Market tier. In accordance with the Nasdaq Listing Rules, the Company was provided 180 calendar days, or until May 19, 2020 (the "Compliance Period"), to regain compliance. On April 16, 2020, Nasdaq announced  that, as of April 16, 2020, Nasdaq was tolling the compliance periods for bid price and market value of publicly held shares (“MVPHS”) requirements (collectively, the “Price-based Requirements”) for all listed companies through June 30, 2020.    As a result, companies presently in compliance periods for any Price-based Requirements will remain at that same stage of the process through June 30, 2020, and, commencing on July 1, 2020, companies will receive the balance of any pending compliance period in effect at the start of the tolling period to regain compliance.

Accordingly, since the Company had 33 calendar days remaining in its MVPHS compliance period as of April 16, 2020, it will, upon reinstatement of the Price-based Requirements, still have 33 calendar days from July 1, 2020, or until August 3, 2020, to regain compliance Nasdaq has informed us that the Company can regain compliance, either during the suspension or during the compliance period resuming after the suspension, by evidencing compliance with the Price-based Requirements for a minimum of 10 consecutive trading days. For the Company to regain compliance, the market value of our publicly held shares has to equal or exceed $5 million for a minimum of 10 consecutive business days. On April 22, 2020, the minimum market value of our publicly held Common Shares was $3,592,234. If the Company does not regain compliance by August 3, 2020, Nasdaq has informed us that Nasdaq will delist the Company's Common Shares from Nasdaq unless the Company requests a hearing before the

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Nasdaq Hearings Panel or unless the Company transfers its listing of the Common Shares to the Capital Market tier, which transfer would require that the Company then meet the criteria for transfer to the Capital Market tier.  Amongst the requirements for continued listing on the Capital Market tier is that the minimum market value of publicly held CommonShares of the Company equal or exceed $1 million and that the minimum closing bid price of the Common Shares equal or exceed $1 per share. On April 22, 2020, the closing bid price for our Common Shares was $1.01.

In addition to the specified criteria for continued listing, Nasdaq also has broad discretionary public interest authority that it can exercise to apply additional or more stringent criteria for the continued listing of the Common Shares, or suspend or delist securities even though the securities met all enumerated criteria for continued listing on Nasdaq. We cannot assure you that Nasdaq will not exercise such discretionary authority.

In addition, in accordance with the provisions of the Exchange Control Act 1972, as amended, and related regulations of Bermuda, the permission of the Bermuda Monetary Authority (the “BMA”) is required for all issuances and transfers of shares (which includes our Common Shares) of Bermuda companies to or from a non-resident of Bermuda for exchange control purposes, other than in cases where the BMA has granted a general permission. The BMA, in its notice to the public dated June 1, 2005, has granted a general permission for the issue and subsequent transfer of any securities of a Bermuda company from and/or to a non-resident of Bermuda for exchange control purposes for so long as any “Equity Securities” of the company (which include our Common Shares) are listed on an “Appointed Stock Exchange” (which would include Nasdaq). In granting the general permission the BMA accepts no responsibility for our financial soundness or the correctness of any of the statements made or opinions expressed herein.  Consequently, if our Common Shares are delisted from Nasdaq, it will be necessary to obtain the prior permission of the BMA to transfer such Common Shares to any transferee, subject to any applicable general permissions issued by the BMA.

There can be no assurance that our Common Shares will remain listed on Nasdaq on any tier. Any delisting of our Common Shares could materially adversely affect a shareholder's ability to dispose, or obtain quotations as to the market value, of such shares. If our Common Shares are delisted, we expect our Common Shares would be quoted on an over-the-counter market. If this were to occur, our shareholders could face significant material adverse consequences, including the need to receive permission from the BMA to transfer our Common Shares, limited availability of market quotations for our Common Shares and reduced liquidity for the trading of our Common Shares. In addition, we could experience a decreased ability to issue additional securities and obtain additional financing in the future.

As a foreign private issuer, we are exempt from a number of rules under the U.S. securities laws and are permitted to file less information with the SEC than a U.S. company.

We are a “foreign private issuer”, as defined in the SEC’s rules and regulations and, consequently, we are not subject to all of the disclosure requirements applicable to public companies organized within the United States. For example, we are exempt from certain rules under the Securities Exchange Act of 1934 (the “Exchange Act”) that regulate disclosure obligations and procedural requirements related to the solicitation of proxies, consents or authorizations applicable to a security registered under the Exchange Act, including the U.S. proxy rules under Section 14 of the Exchange Act. In addition, our senior management and directors are exempt from the reporting and “short-swing” profit recovery provisions of Section 16 of the Exchange Act and related rules with respect to their purchases and sales of our securities. Moreover, we are not required to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. public companies, and are not required to file quarterly reports on Form 10-Q or current reports on Form 8-K under the Exchange Act.  Accordingly, there is less publicly available information concerning the Company than there would be if we were a U.S. public company.

Future sales of our Securities may cause the prevailing market price of our Common Shares to decrease

There may be future sales or other dilution of our equity, which could materially adversely affect the market price of our Common Shares.  The Company may, from time to time, issue equity securities, including Common Shares or securities that are convertible into or exchangeable for, or that represent the right to receive, Common Shares. The market price of our Common Shares could decline as a result of issuances of any such equity securities

12

or any such securities that are convertible into or exchangeable for, or that represent the right to receive, Common Shares, or as a result of the perception that such issuances could occur.

The Market for Our Common Shares May Not Be Liquid

Active, liquid trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investors, compared to less active and less liquid markets. Liquidity of a securities market is often a function of the volume of the underlying shares that are publicly held by unrelated parties.  Approximately 75.417% of our issued and outstanding Common Shares are directly or beneficially owned by Pacific Electric Wire & Cable Co., Ltd. (“PEWC”), a Taiwanese company, which Common Shares are subject to restrictions on trading.  In addition, although our Common Shares currently remain traded on the Nasdaq Global Market tier, the trading and demand for our Common Shares has been limited. As a consequence, shareholders may find that the value of their Common Shares and/or their ability to sell their Common Shares quickly or in substantial amounts may be materially adversely affected by the limited public trading market. Thinly-traded securities equity can be more volatile than equity securities for which there is significant trading volume. The high and low daily closing prices for our Common Shares during the past 24 months (April 11, 2018 – April 09,2020) were $2.77 and $0.89, respectively. In the future, our Common Shares may experience significant price fluctuations which could materially adversely affect that the value of your ownership interest in the Company.

We May Not Be Able to Resume Paying a Dividend and Any Dividends Paid in the Future Could be Reduced or Eliminated

We did not pay a dividend in 2019. We may not be able, or may choose not to reinstate our dividend program and pay future dividends, and if reinstated any future dividend could again be eliminated or reduced. The declaration, amount and payment of future dividends are at the discretion of our board of directors and will be dependent on our future operating results and the cash requirements of our business. There are a number of factors that can affect our ability to pay dividends and there is no guarantee that we will pay dividends in any given year or pay any specific amount of dividends. In addition, we will not pay dividends in the event we are not allowed to do so under Bermuda law. The reduction, suspension or elimination of dividends may negatively affect the market price of our Common Shares. Furthermore, since we are a holding company, nearly all of the assets shown on our consolidated balance sheet are held by our subsidiaries. Accordingly, our earnings and cash flow and our ability to pay dividends are dependent upon distributions from our subsidiaries.

Control of the Company Rests with Majority Shareholder; Controlled Company and Foreign Private Issuer Exemptions; Risks Related to PEWC

Our Common Shares currently remain traded on Nasdaq. However, as the Company has a more than fifty percent (50%) shareholder, the Company relies upon a “controlled company exemption” to the requirement that a company have a board of directors comprised of a majority of independent directors in order to be listed on Nasdaq. At present, a majority of the board of directors of the Company is affiliated with PEWC.  The Company also relies on Nasdaq’s allowance for foreign private issuers to follow home country practices in lieu of the requirement that listed companies have regularly scheduled meetings at which only independent directors are present (“executive sessions”). The independent directors of the Company meet periodically in executive session in their capacity as members of the Audit Committee of the Board of Directors of the Company  (“Board of Directors”) without other directors present, but on occasion meet with the independent auditors of the Company present in such executive session, and on occasion meet with members of management present in order to understand more fully management’s analysis of the Company’s financial performance and compliance with relevant corporate governance requirements.

As our majority shareholder, PEWC has sufficient votes to control the outcome of any matter presented for a shareholder vote, including the election of each member of the Board of Directors of the Company. PEWC may vote its shares in the Company in the manner that it sees fit. In addition, subject to applicable securities laws, PEWC may sell, convey or encumber all or a portion of its ownership interest in the Company without regard to the best interests of the other shareholders of the Company except to the extent that it is prohibited from engaging in conduct

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oppressive to non-controlling interests under applicable law.  The interests of PEWC may conflict with our interests or the interests of our other shareholders.  As a result, PEWC may take actions with respect to us or our business that may not be in our or our other shareholders’ best interest.

Due to executive malfeasance at PEWC that was uncovered in 2003, PEWC was delisted from the Taipei Stock Exchange and remains subject to ongoing regulatory review by Taiwan securities regulators as a public company in Taiwan.  Financial or corporate governance issues at PEWC may affect PEWC’s attention to and actions with respect to APWC, including with respect to its performance of its obligations under, or increase uncertainty regarding its ability to perform its obligations under, the Composite Services Agreement between PEWC and the Company. (See “PEWC may not perform its obligations under the Composite Services Agreement” below and see Item 10.3 – “Material Contracts” – for a description of the Composite Services Agreement.).

Potential Conflict of Certain Officers and Directors

We have three independent directors. The other six members of the Board of Directors are also directors or officers of, or otherwise affiliated with, PEWC, our majority shareholder.  Certain of our officers are also affiliated with PEWC. In each case, they may be subject to potential conflicts of interest. In addition, certain of our officers and directors who are also officers and/or directors of PEWC may be subject to conflicts of interest in connection with, for example, pursuing corporate opportunities in which we and PEWC or one of its affiliates have competing interests, and in the performance by us and PEWC of our respective obligations under existing agreements, including the Composite Services Agreement. In addition, some of these persons devote time to the business and affairs of PEWC and its affiliates, which could reduce the amount of time available for overseeing or managing our business and affairs.

Any failure to achieve and maintain effective internal controls could have a material adverse effect on our reputation, business, financial conditions, and results of operations and the market price of our Common Shares.

Effective internal controls are necessary for us to provide reasonable assurance with respect to our financial reports and to prevent fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. As a result, even effective internal controls are able to provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. Any failure in our internal control over financial reporting could result in a decline of investor confidence in the reliability of our financial statements, which could materially adversely affect the market price of our Common Shares.

Our auditor’ China affiliate, like other independent registered public accounting firm operating in China, are not permitted to be subject to inspection by Public Company Accounting Oversight Board, and consequently investors are deprived of the benefits of such inspection.

Our auditor, the independent registered public accounting firm that issued the audit report included elsewhere in this annual report, as auditor of companies that are traded publicly in the United States and firm registered with the Public Company Accounting Oversight Board (United States), or PCAOB, are subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor’s China affiliate is located in, and organized under the laws of, the PRC, which is a jurisdiction where the PCAOB has been unable to conduct inspections without the approval of the Chinese authorities. In May 2013, the PCAOB announced that it had entered into a Memorandum of Understanding on Enforcement Cooperation with the China Securities Regulatory Commission (“CSRC”) and the PRC Ministry of Finance, which established a cooperative framework between the parties for the production and exchange of audit documents relevant to investigations undertaken by PCAOB, the CSRC or the PRC Ministry of Finance in the

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United States and the PRC, respectively. PCAOB continues to be in discussions with the CSRC, and the PRC Ministry of Finance to permit joint inspections in the PRC of audit firm that are registered with PCAOB and audit Chinese companies that trade on U.S. exchanges.

On December 7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulators in their oversight of financial statement audits of U.S.-listed companies with significant operations in China. However, it remains unclear what further actions, if any, the SEC and PCAOB will take to address the problem.

This lack of PCAOB inspections in China prevents the PCAOB from fully evaluating audits and quality control procedures of our independent registered public accounting firm. As a result, we and investors in our Common Shares are deprived of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditor in China makes it more difficult to evaluate the effectiveness of our independent registered public accounting firm’s China affiliate’s audit procedures or quality control procedures as compared to auditor outside of China that are subject to PCAOB inspections, which could cause investors and potential investors in our Common Shares to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

Holding Company Structure; Potential Restrictions on the Payment of Dividends

We are a holding company with no direct business operations other than our ownership of the capital stock of our subsidiaries andequity investees. Our principal assets are the equity interests we directly or indirectly hold in our operating subsidiaries. As a holding company, our ability to pay dividends and meet our other obligations depends upon the amount of distributions, if any, received from our operating subsidiaries and other holdings and investments. Our operating subsidiaries and other holdings and investments, from time to time, may be subject to restrictions on their ability to make distributions to us, including, but not limited to, as a result of restrictive covenants contained in loan agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other currency, and other regulatory restrictions. For example, PRC legal restrictions permit payments of dividends by our business entities in the PRC only out of their retained earnings, if any, determined in accordance with relevant PRC accounting standards and regulations. Under PRC law, such entities are also required to set aside a portion of their net income each year to fund certain reserve funds. These reserves are not distributable as cash dividends. The foregoing restrictions may also affect our ability to fund operations of one subsidiary with dividends and other payments received from another subsidiary.  Distributions may also be limited from time to time by reason of restrictions protective of the rights of minority shareholders of our subsidiaries and by reason of the current cash requirements of our operating subsidiaries.

Corporate Matters; Limited Recourse; Limited Enforceability

We are incorporated in and organized pursuant to the laws of Bermuda. In addition, all of our directors and officers reside outside the United States and our material assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon such persons or to realize judgements against them in courts of the United States predicated upon civil liabilities under the United States federal securities laws. Even if investors are successful in realizing judgments against such persons in courts of the United States, the laws of Taiwan may render such investors unable to enforce the judgment against the Company’s assets or the assets of its officers and directors. Also, investors may have difficulty in bringing an original action based upon the United States federal securities law against such persons in the Taiwan courts. Additionally, there is doubt as to the enforcement in Bermuda, in original actions or in actions for enforcement of judgments of United States courts, of liabilities predicated upon U.S. federal securities laws. As a result, shareholders may encounter more difficulties in enforcing their rights and protecting their interests in the face of actions taken by management, the Board of Directors or controlling shareholders than they would if the Company were organized under the laws of the United States or one of the states therein, or if the Company had material assets located within the United States, or some of the directors and officers resided within the United States.

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If we lose control of Charoong Thai, Charoong Thai’s financial results would not be consolidated with ours.

As of December 31, 2019, the Company effectively owned 50.93% of the issued and outstanding shares of Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai” or “CTW”). While the Company holds preemptive rights that would permit it to maintain majority ownership of CTW, there may be circumstances under which the Company cannot maintain majority ownership of Charoong Thai. In the event Charoong Thai were to make a further offering of voting securities, or securities convertible into or exchangeable for voting securities, and the Company decided not to, or was not in a position to, fund or finance its participation in the offering, the ownership interest of the Company in Charoong Thai could fall below a level necessary for consolidated treatment, and the Company may lose the controlling interest in Charoong Thai. If that were the case, the accounts of the Charoong Thai group, which includes all of the Company’s Thailand operations, would not be consolidated under IFRS, but instead would be accounted for under the equity method. In such an event, the Company’s accounts would show a significant decrease in revenue and most categories of assets and liabilities, which could materially adversely affect the Company and the value of the Common Shares.

Risks Relating to Our Business

COVID-19 Could Have a Material Adverse Effect on Our Business, Financial Condition and Results of Operations

The recent outbreak in China of the Coronavirus Disease 2019 (“COVID-19”), which has been declared by the World Health Organization to be a “public health emergency of international concern,” has spread across the globe and is impacting worldwide economic activity and financial markets.  Our manufacturing and production have been affected by the outbreak of COVID-19. COVID-19 has disrupted our operations and the operations of our suppliers, customers, and other business partners and may continue to do so for an indefinite period of time, including as a result of travel restrictions and/or business shutdowns. A slowdown in economic activity as a result of COVID-19 can be expected to result in a reduction in demand for our products. The outbreak of COVID-19 has also resulted in a decline in the price of copper, which has had the effect of reducing the market value of our inventory of copper.

Due to the measures instituted in China in response to COVID-19, our China production facilities have been  operating below normal production levels and our production levels have not yet fully recovered to normal levels. We do not know when our production levels will recover to normal levels.

In addition, the Singapore Government has ordered most businesses to close from April 7, 2020 until June 1, 2020.  We have been permitted to continue to operate during this period with reduced on site staff. Since April 7, 2020, approximately half of the employees of our Singapore operation have been working from home while the remaining employees have continued to work on site. We do not know if the Singapore Government will extend (or otherwise alter the terms of) its order requiring most business to close or whether our employees who continue to work on site will continue to be permitted to do so.

In order to protect the employees from COVID-19, the Company had enforced everyone to check the body temperature twice a day, and the employees of Singapore subsidiary took turns to work from home.

This is a rapidly evolving situation and the impact of COVID-19 on the global economy and our business is uncertain at this time. While it is not possible at this time to estimate the impact that COVID-19 could have on worldwide economic activity and our business, the continued spread of COVID-19 and the measures taken by governments, businesses and other organizations in response to COVID-19 are expected to reduce our revenues and could have a material adverse impact our business, financial condition and results of operations.

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PEWC May not Perform Its Obligations under the Composite Services Agreement

We engage in transactions in the ordinary course of business with PEWC, including the purchase of certain raw materials and the distribution of PEWC products in various countries in the Asia Pacific region.  We and PEWC have entered into a composite services agreement dated November 7, 1996, as amended and supplemented (the “Composite Services Agreement”), which contains provisions that define our relationship and the conduct of our respective businesses. The Composite Services Agreement is renewable at our option and is currently in force. Under the Composite Services Agreement, PEWC supplies copper and provides research and development for our products. However, we are unable to ensure that PEWC will not in the future seek to limit, or be unable to perform in whole or in part, the business it conducts with the Company pursuant to the terms of the Composite Services Agreement.  Any such limitation or inability to perform the Composite Services Agreement on PEWC’s part could have a material adverse effect on our business, financial condition and results of operations. (See Item 10.3 - Material Contracts – for a description of the Composite Services Agreement.)

Risks Relating to Copper

Copper is the principal raw material we use, accounting for a majority of the cost of sales. Our prevailing practice is to purchase copper at prices based on the average prevailing international spot market prices on the London Metal Exchange (the “LME”) for copper for the one month prior to purchase. The price of copper is affected by numerous factors beyond our control, including global economic and political conditions, supply and demand, inventory levels maintained by suppliers, actions of participants in the commodities markets and currency exchange rates. As with other costs of production, changes in the price of copper may affect the Company’s cost of sales. Whether this has a material impact on our operating margins and financial results depends primarily on the Company’s ability to adjust selling prices to its customers, such that increases and decreases in the price of copper are fully reflected in those selling prices and customers continue to place orders. Most of our sales of manufactured products reflect the cost of copper used to manufacture those products at the time the products are ordered. In the ordinary course of business we maintain inventories of raw materials and finished products reasonably necessary for the conduct of our business. These inventories typically reflect the cost of copper prevailing in the market at the time of purchase. A long-term decrease in the price of copper would require the Company to revalue its inventory at periodic intervals to the then net realizable value, which could be below cost. Copper prices have been subject to considerable volatility, and it is not always possible to manage our copper purchases and inventory so as to neutralize the impact of copper price volatility. In addition, an excessive increase in the price of copper could result in fewer orders from customers and negatively impact the Company. Accordingly, significant volatility in copper prices could have a material adverse effect on our business, financial condition and results of operations.

Restrictive covenants and default provisions in our existing debt agreements may materially restrict our operations as well as adversely affect our liquidity, business, financial condition and results of operations.

As of December 31, 2019, the Company had a total of $287.0 million in credit available to itself, or one or more of its operating subsidiaries. Out of total available credit, $207.9 million was unused and available for borrowing. The weighted average borrowing rate, for all the outstanding loans combined, was 3.72% for 2019. If our business units do not generate sufficient cash flows from operations, we may be unable to make required payments on our debt. Any such failure to make any such payment could have a material adverse effect on our liquidity, business, financial condition and results of operations.

In addition our debt agreements contain restrictive covenants and default provisions. Covenants in the agreements governing our existing debt, and debt we may incur in the future, may materially restrict our operations, including our ability to incur debt, pay dividends, make certain investments and payments, and encumber or dispose of assets. In addition, any global economic deterioration may cause us to incur significant net losses or force us to assume considerable liabilities. We cannot assure you that we will be able to remain in compliance with our financial covenants, which, as a result, may lead to a default. This may thereby restrict our ability to access unutilized credit facilities or the global capital markets to meet our liquidity needs. Furthermore, a default under any agreement by us or our subsidiaries may trigger cross-defaults under our other agreements. In the event of default, we may not be able to cure the default or obtain a waiver on a timely basis. An event of default under any agreement timely governing our existing or future debt, if not cured or waived, could have a material adverse effect on our liquidity,business, financial condition and results of operations.

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We Face Uncertainties Relating to the Phasing Out of LIBOR

In July 2017, the U.K. Financial Conduct Authority, which regulates the London interbank offered rate (LIBOR), announced that it intends to phase out LIBOR by the end of 2021. Discontinuation of LIBOR and uncertainty as to the nature of such potential changes, alternative reference rates or other reforms may adversely affect the amounts of interest we pay under our debt arrangements and materially adversely affect our business, financial condition and results of operations.

Risks Related to Our Customer Base and Our Geographic Markets

Our sales of products are made primarily to customers that use our products as components in their own products or in construction or infrastructure projects in which they participate. The volume of our sales is significantly correlated with overall economic conditions in the markets in which we operate, including how much our customers invest in their own product manufacturing or project development. Increases or decreases in economic activity and investment in the markets where we operate generally will result in higher or lower sales volume and higher or lower net income for the Company.Any such decrease could have a material adverse effect on our business, financial condition and results of operations.

Business Disruptions Could Affect Our Operating Results

Operations and other business conducted at our plants and other facilities are at risk to uncontrollable natural and climatic events (often referred to as force majeure events).  We cannot predict with any certainty whether we will be affected by a force majeure event in the future. Flooding, earthquakes, weather event, fire or other catastrophic events that results in the destruction or disruption of any of our facilities, or our suppliers’ or customers’ facilities, could severely affect our ability to conduct normal business operations and, as a result, our business, financial condition and results of operations could be materially adversely affected.

Our Insurance Coverage Does Not Cover All of Our Business Risks

Our global operations are subject to many risks including errors and omissions, infrastructure disruptions, including large-scale outages or interruptions of service from utilities or telecommunications providers, supply chain interruptions, third-party liabilities and fires or natural disasters. The Company maintains insurance policies covering certain buildings, machinery and equipment against specified amounts of damage or loss caused by fire, flooding, other natural disasters and burglary and theft. The Company does not carry insurance for consequential loss arising from business interruptions or political disturbances and does not carry product liability insurance. In addition, the Company does not have business liability or disruption insurance for its operations in China and the Company does not have coverage for flood damage or business interruption for its operations in Thailand. Consequently, the amount of our insurance coverage may not be adequate to cover all potential claims or liabilities, and we may be forced to bear substantial costs resulting from the lack of adequate insurance.  No assurance can be given that we will not incur losses beyond the limits or outside the scope of coverage of our insurance policies.  Accordingly, we may be subject to an uninsured or under-insured loss in such situations.  Any failure to maintain adequate insurance coverage on terms favorable to us, or at all, could have a material adverse effect on our business, financial condition and results of operations.

If we were to lose control of Charoong Thai, our business, financial condition and results of operations could be materially adversely affected

As of December 31, 2019, the Company effectively owned 50.93% of the issued and outstanding shares of Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai” or “CTW”).  All of the Company’s operations in Thailand are conducted through Charoong Thai and its subsidiaries and accounted  for approximately 50.98% of our total net sales in 2019. While the Company holds preemptive rights that would permit it to maintain majority ownership of CTW, there may be circumstances under which the Company cannot maintain majority ownership of Charoong Thai. In the event Charoong Thai were to make a further offering of voting securities, or securities convertible into or exchangeable for voting securities, and the Company decided not to, or was not in a position to, fund or finance its participation in the offering, the ownership interest of the Company in Charoong Thai

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could fall below a level necessary for the Company to control Charoong Thai. If the Company were to lose control of Charoon Thai, such loss of control could materially adversely affect the Company’s business, financial condition and results of operations.

Risks Relating to Thailand

A substantial portion of our Thai operations, whose sales accounted for approximately 50.98% of our net sales in 2019, consists of the manufacture of telecommunications and power cables and sales of those products for use in large-scale telecommunications projects and various construction projects in Thailand.  As a result, the performance of the Company’s Thai operations are affected by the political situation in Thailand and the general state of the Thai economy. The volume of sales of our products tends to correlate with the general level of economic activity in Thailand. In recent years, the level of government involvement in infrastructure development has tended to track increases or contractions in Thailand’s gross domestic product and the Thai economy has been highly cyclical and volatile, depending for economic growth in substantial part on a number of government initiatives for economic expansion. In addition, the Baht has been volatile and subject to significant fluctuations in relation to the U.S. dollar, which fluctuations can materially adversely affect us. Overall, the construction industry and infrastructure projects have slowed considerably, thereby affecting local sales, placing competitive pressure on prices and prompting the Company to rationalize Thai operations and actively seek overseas export markets. Political tensions remain high in Thailand and political instability in Thailand tends to diminish governmental focus on infrastructure development projects, which can materially adversely impact the volume of sales to (and payment by) our customers who are engaged in large infrastructure projects and, consequently, also materially adversely affect our business, financial condition and results of operations.  

Economic Reform Measures in the PRC May Materially Adversely Affect the Company’s Operations or Financial Condition

The PRC government has gradually moved away from a planned economic model and implemented economic reform measures emphasizing decentralization, utilization of market forces in the development of the economy and a high level of management autonomy. The government has decreased its focus on export-oriented activities and placed greater emphasis on building up rural areas in China, including integrating a number of primitive, largely inaccessible agricultural areas into the national economy. However, many of the reforms are unprecedented and may be subject to revision, modification or termination based on the outcomes of the reform efforts and other considerations, including their impact on societal stability. There is not sufficient administrative or judicial precedent to allow the Company to determine with any degree of certainty how the reforms will impact our business in China.

Any Decrease in Real Estate Development and Construction Activities in China May Materially Adversely Affect the Company’s Business, Operations or Financial Condition

Our wire and cable products manufactured and sold in China are used in the commercial and residential real estate industry and in infrastructure development. Therefore, the demand for our wire and cable products is affected by the pace of modernization and the growth of the real estate industry in China, which could in turn be affected by a number of factors, such as the level of governmental investment in infrastructure development, the strength of the commercial and residential real estate markets, the level of disposable income, consumer confidence, unemployment rate, interest rates, credit availability and volatility in the stock markets.

To dampen an over-heated real estate market, the PRC government implemented a series of measures in the real estate market. The real estate market in China may also be negatively affected by the reform of the real estate tax system in respect of levying real estate tax on individually owned real estate which is not used for a business purpose, which has already been implemented by certain local government authorities and may be expanded nationwide sometime in the future.

Any decrease in commercial and residential real estate development and construction activities would adversely affect demand for our manufactured products and could materially adversely affect the Company’s business, results of operations and financial condition.

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The PRC Legal System May Limit the Company’s Remedies

The PRC legal system is a civil law system based on written statutes. Prior court decisions may be cited for reference but have limited precedential value. Since the late 1970s, the PRC central government has promulgated a large volume of laws and regulations governing economic matters such as foreign investment, corporate organization and governance, commerce, taxation and trade. In particular, since reforms were first introduced in 1979, the PRC’s legislation and regulations have enhanced the protections provided to various forms of foreign investment in China. However, China has not developed a fully integrated legal system. Recently enacted laws and regulations may not sufficiently cover all aspects of economic activities since they are relatively new, there is a limited volume of published decisions which are nonbinding and the interpretation and enforcement of these laws and regulations is not always uniform, which may limit the remedies available to us in the event of any claims or disputes with third parties. In addition, any litigation in China may be protracted and could result in substantial costs and diversion of resources and management attention. As the PRC legal system continues to evolve, we cannot predict future developments in the PRC legal system, including promulgation of new laws, changes to existing laws or the interpretation and enforcement thereof that may be detrimental to the Company and have a material adverse effect on its business, financial condition and results of operations.

Uncertainties Exist with respect to the interpretation and implementation of the newly enacted PRC Foreign Investment Law and how it may affect the Company’s Corporate Governance

On January 1, 2020, the PRC Foreign Investment Law (the “Foreign Investment Law”) and the Regulations for Implementation of the Foreign Investment Law (the “Implementation Regulations”), came into effect and replaced the trio of prior laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law, and the Wholly Foreign-invested Enterprise Law, together with their implementation rules. The Foreign Investment Law and the Implementation Regulations embody an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. The Foreign Investment Law and the Implementation Regulations establish the basic framework for the access, promotion, protection and administration of foreign investments in view of investment protection and fair competition.

Since the Foreign Investment Law and the Implementation Regulations are relatively new, uncertainties still exist in relation to its interpretation and implementation. The Foreign Investment Law and the Implementation Regulations may affect our relevant corporate governance practices and increase our compliance costs. For instance, the Foreign Investment Law and the Implementation Regulations requires that foreign-invested enterprises established before the Foreign Investment Law became effective have 5 years to complete the necessary adjustments to their organization form, governance structure and other required matters to comply with the PRC Company Law, the Partnership Enterprise Law and other laws. The PRC Company Law significantly differs from the Sino-foreign Equity Joint Venture Enterprise Law and the Sino-foreign Cooperative Joint Venture Enterprise Law. These differences include, but are not limited to, an enterprise’s highest authority, minimum number of directors, quorum, term of directors, voting mechanisms, profit distributions and equity transfer restrictions. According to the Implementation Regulations, the provisions regarding equity interest transfer and distribution of profits or remaining assets may remain the same as previously provided in the contracts among the joint venture parties of a foreign-invested enterprise. Uncertainties still exist with respect to the specific adjustments foreign-invested enterprises must make.  The local branch of the State Administration for Market Regulation of the PRC (the “SAMR”) may, at its discretion, require our PRC subsidiaries to make necessary adjustments to their articles of association and other filing documents to comply with the PRC Company Law and the Partnership Enterprise Law.

In addition, the Foreign Investment Law and the Implementation Regulations impose information reporting requirements on foreign investors and foreign-invested enterprises. Any foreign investors or foreign-invested enterprises found to be non-compliant with these reporting obligations may be subject to fines or administrative liabilities.

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The Foreign Investment Law does not address intercompany loans or the registration of profits of foreign-invested enterprises. It is not known whether these matters will be addressed by additional laws or regulations promulgated pursuant to the Foreign Investment Law.The Foreign Investment Law and the Implementation Regulations could be interpreted and implemented in a manner that could have a material adverse effect on the Company’s business, financial condition and results of operations.

PRC Regulations of Loans to and Direct Investment in PRC Entities by Offshore Holding Companies may delay or prevent us from making Loans or additional Capital Contributions to our PRC Subsidiaries, which could materially adversely affect our ability to fund and expand our business

We conduct substantial business operations in China. We may make loans or capital contributions to our PRC subsidiaries. Loans or capital contributions by APWC or any of our offshore subsidiaries to our PRC subsidiaries, which are treated as foreign-invested enterprises under PRC law, may be subject to PRC regulations and/or foreign exchange loan registrations. Such loans to any of our PRC subsidiaries to finance their activities generally cannot exceed statutory limits and must be filed with the State Administration of Foreign Exchange (the “SAFE”) through the online filing system of SAFE. The statutory limit for the total amount of foreign debts of a foreign-invested enterprise is the greater of (i) the difference between the amount of total investment and the amount of registered capital of such foreign-invested enterprise and (ii) 2.5 times the amount of such foreign-invested enterprise’s net assets. We may also decide to finance our PRC subsidiaries by means of capital contributions, in which case the PRC subsidiary is required to register the details of the capital contribution with the SAMR and submit a report on the capital contribution via the online enterprise registration system to the PRC Ministry of Commerce.

According to the Circular of the SAFE on Reforming the Management Approach regarding the Settlement of Foreign Exchange Capital of Foreign Invested Enterprises promulgated on March 30, 2015 and the Circular of the SAFE on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts promulgated on June 9, 2016, the RMB capital converted from foreign exchange capital, foreign debt funds, and proceeds remitted from foreign listings of a foreign-invested enterprise may not be directly or indirectly used for purposes beyond the business scope of such foreign-invested enterprise.  On October 23, 2019, the SAFE issued the Circular on Further Promoting Cross-border Trade and Investment Facilitation, or SAFE Circular 28.  Among other things, SAFE Circular 28 relaxes prior restrictions and allows foreign-invested enterprises that do not have equity investments in their approved business scope to use their capital obtained from foreign exchange settlement to make domestic equity investments as long as the investments are real and in compliance with the foreign investment-related laws and regulations.

In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, including the SAFE circulars referred to above, we cannot assure that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if at all, with respect to future loans or capital contributions by APWC to our PRC subsidiaries and conversion of such loans or capital contributions into RMB. If we fail to complete such registrations or obtain such approvals, our ability to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially adversely affect the Company’s business, financial condition and results of operations.

Political or Social Instability, Health Epidemics and Environmental Issues in the PRC May Materially Adversely Affect the Company’s Operations or Financial Condition

Political or social instability in China could also materially adversely affect our business operations or financial condition. Our corporate headquarters are located in Taipei, Taiwan. Any escalation in political tensions between the PRC and the government of Taiwan could materially adversely impact our ability to manage our operations in the PRC efficiently or without third party interference. The PRC government has long advocated a one-China policy with regard to the Republic of China. Any overtly aggressive actions by the PRC towards Taiwan could have a materially destabilizing impact on Taiwan generally, and on our business in particular. In addition, adverse public health epidemics or pandemics in China could not only interfere with our ability to operate our PRC subsidiaries, but could also affect the country’s overall economic growth, which could in turn affect the sales of our products in China. Growing environmental awareness and concern over the deterioration of the quality of the environment in China, including air and water quality, could dampen domestic industrial growth and reduce foreign investor interest in PRC investment.

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PRC State-Owned Enterprises (“SOEs”) May Have Competitive Advantages that We May Not Be Able to Overcome

Much of the PRC's manufacturing output is still conducted through SOEs, which are often subsidized by the government such that they are protected against the challenges of market forces confronting private enterprises. As a consequence, it can become untenable for private enterprises in competition with SOEs to conduct profitable operations when the SOEs are being subsidized by the government and may operate in a loss position for an extended period. APWC’s ’s business, financial condition and results of operations may be materially adversely affected in the event it must compete with such SOEs.

Inflation in the PRC May Materially Adversely Affect the Company’s Business, Results of Operations and Financial Condition

The rapid growth of the PRC economy has historically resulted in high levels of inflation. If inflation is significant, our costs would likely increase, and there can be no assurance that we would be able to increase our prices to an extent that would offset the increase in our expenses.

PRC Power Shortages May Materially Adversely Affect Our Operations or Financial Condition

We consume substantial amounts of electricity in our manufacturing processes at our production facilities in China. Certain parts of China have been subject to power shortages in recent years. We have experienced a number of power shortages at our production facilities in China to date, particularly in Shenzhen where numerous clusters of factories are situated. We are sometimes given advance notice of power shortages, but often power shortages or outages occur unexpectedly for various periods of time. We currently have a backup power system at certain of our production facilities in China. However, there can be no assurance that in the future our backup power system will be completely effective in the event of a power shortage, particularly if that power shortage is over a sustained period of time and/or we are not given advance notice thereof. Any power shortage, brownout or blackout for a significant period of time may disrupt our manufacturing, and as a result, could have a material adverse impact on our business, financial condition and results of operations.

Dividends Payable by Our PRC Subsidiaries to Their Respective Offshore Investors Are Subject to PRC Withholding Taxes

Under Chinese tax law and related regulations, dividends, interests, rent or royalties payable by a foreign-invested enterprise, such as our PRC subsidiaries, to any of its foreign non-resident enterprise investors, and proceeds from any such foreign enterprise investor’s disposition of assets (after deducting the net value of such assets) are subject to a 10% withholding tax, unless the foreign enterprise investor’s jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. Undistributed profits earned by foreign-invested enterprises prior to January 1, 2008 are exempted from any withholding tax. Bermuda, where APWC, the ultimate owner of our PRC subsidiaries and investments, is incorporated, does not have such a tax treaty with China. Hong Kong, where Crown Century Holdings Limited (“CCH HK”), the sole shareholder in Pacific Electric Wire and Cable (Shenzhen) (“PEWSC”), is incorporated, has a tax arrangement with China that currently provides for a 5% withholding tax on dividends subject to certain conditions and requirements, such as the requirement that the Hong Kong resident enterprise owns at least 25% of the PRC enterprise distributing the dividend at all times within the 12-month period immediately preceding the distribution of dividends and be a “beneficial owner” of the dividends. However, if CCH HK is not considered to be the beneficial owner of the dividends paid to it by PEWSC under the Announcement of the State Administration of Taxation on Issues Relating to “Beneficial Owner” in Tax Treaties promulgated on February 3, 2018, such dividends would be subject to withholding tax at a rate of 10%. Consequently, if our PRC subsidiaries declare a dividend or distribution and distribute profits earned after January 1, 2008 to their respective offshore investors, such payments will be subject to withholding tax.

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Labor Law Legislation in the PRC May Materially Adversely Affect the Company’s Operations or Financial Condition

The PRC Labor Contract Law formalizes workers’ rights concerning overtime hours, pensions, layoffs, employment contracts and the role of labor unions. Considered one of the strictest labor laws in the world, this law requires, among other things, an employer to conclude an “open-ended employment contract” with any employee who either has worked for the employer for ten years or more or has had two consecutive fixed-term contracts. An “open-ended employment contract” is in effect a lifetime, permanent contract, which is terminable only in specified circumstances, such as a material breach of the employer’s rules and regulations, or for a serious dereliction of duty. Such employment contracts with qualifying workers would not be terminable if, for example, the Company determined to downsize its workforce in the event of an economic downturn. Under the Labor Contract Law, downsizing by 10% or more (or more than 20 persons) may occur only under specified circumstances, such as a restructuring undertaken pursuant to the PRC Enterprise Bankruptcy Law, or where a company suffers serious difficulties in production and/or business operations. Any of the Company’s staff employed to work exclusively within the PRC are covered by the Labor Contract Law and thus, the Company’s ability to adjust the size of its operations when necessary in periods of recession or less severe economic downturns is limited. Accordingly, if the Company faces future periods of decline in business activity, the Labor Contract Law can be expected to exacerbate the adverse effect of the economic environment on the Company’s business, results of operations and financial condition. Additionally, the Labor Contract Law has affected the labor costs of our customers, which could adversely affect such customers’ business and result in a corresponding decrease in their purchase of our products.  Any of the foregoing could have a material adverse impact on the Company’s business, financial condition and results of operations.

In addition, under the PRC Social Insurance Law and the Regulation on the Administration of Housing Accumulation Funds, an employer is required to pay various statutory employee benefits, including social insurance (namely pension insurance, work-related injury insurance, medical insurance, unemployment insurance, and maternity insurance) and housing funds to relevant government authorities for the benefit of its employees. If we fail to make adequate social insurance and housing fund contributions, we may be subject to late payment fees, fines and/or other penalties, and our business, financial condition and results of operations could be materially adversely affected.

Risks Relating to Our Exposure to Foreign Exchange Fluctuations

Although our reporting currency is the U.S. dollar, the functional currency of our Thailand region, which accounted for 50.98% of sales in 2019, is the Thai Baht. The functional currencies of our ROW region, which accounted for 26.38% of sales in 2019, are the Australia dollar and the Singapore dollar. The functional currencies for our North Asia operations, which, in total accounted for 22.64% of sales in 2019, are divided into two groups: (i) Shandong Pacific Rubber Cable Company, Ltd. (“SPRC”), equity investee with 25% equity owned by APWC, (accounting under equity method), Shanghai Asia Pacific Electric Co., Ltd. (“Shanghai Yayang”), and PEWSC, whose functional currency is the Renminbi, and (ii) CCH HK, whose functional currency is the U.S. dollar. Accordingly, the functional currency accounts of these operations are all translated into U.S. dollars utilizing the reporting date exchange rate for balance sheet accounts, and an average exchange rate for the year for the income statement accounts, for reporting purposes. Any devaluation of the Baht, the Australian dollar, the Singapore dollar, or the Renminbi against the U.S. dollar would adversely affect our financial performance, as measured in U.S. dollars.

Fluctuations in foreign exchange rates affect our results of operations. Our principal operations and properties are located in the three regions that constitute our business segments, namely the North Asia, Thailand and Rest of the World (“ROW”) regions. A substantial portion of our aggregate revenues is denominated in the following currencies: Renminbi, Baht, Australian dollars and Singapore dollars. Significant proportions of raw materials are in U.S. dollars, and consequently are directly affected by foreign currencies and exchange rates. Ongoing equipment upgrade and maintenance programs are also significantly impacted by foreign exchange rates. Any devaluation of the Baht, the Australian dollar, the Singapore dollar or the Renminbi against the U.S. dollar would increase the effective cost of foreign manufacturing equipment and the amount of our foreign currency denominated expenses and liabilities. This would have an adverse impact on our operations. An increase in U.S dollar borrowing costs and any increase in the strength of the US$ in foreign exchange markets (which could also increase borrowing rates) could materially adversely affect our business in the markets where we have operating plants (Thailand, China, Singapore and Australia). Our financial statements for our operating subsidiaries in those markets are reported and denominated in local currencies (referred to as our “functional currencies”) and, when translated into U.S. dollars (our reporting currency), these operating subsidiaries suffer a decrease in reported

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revenue and operating profits by reason of increased U.S. dollar borrowing costs or an increase in the value of the US$ as against one or more of our functional currencies. Moreover, our purchases of materials are based on U.S. dollar quotations, which mean that our operating subsidiaries have to pay more in local currency in order to meet their trade payable obligations in the case of such an increase in the value of the U.S. dollar.  Consequently, adverse movements in exchange rates could have a material adverse effect on our business, financial condition and results of operations.

In addition to our operating revenues being generated in local currencies, a portion of our investment properties and financial instruments are also denominated in currencies other than the U.S. dollar. Accordingly, our investment results will be subject to possible currency rate fluctuations as well as the volatility of overseas capital markets. Our results of operations may be materially impacted by those fluctuations and volatility.

Competition

The wire and cable industry in the Asia Pacific region is highly competitive, and if we fail to successfully invest in and maintain product development, productivity improvements and customer service and support, sales of our products could be materially adversely affected. Our competitors include a large number of independent domestic and foreign suppliers. Certain competitors in each of our markets have substantially greater manufacturing, sales, research and financial resources than we do. We and other wire and cable producers compete primarily on the basis of product quality and performance, reliability of supply, customer service, and price. To the extent that one or more of our competitors are more successful with respect to the primary competitive factors, our business could be materially adversely affected. In addition, the Company’s business could be materially adversely impacted if low margin wire and cable manufacturers in China enter into the markets where we operate. Certain of our products are made to common specifications and may be interchangeable with the products of certain of our competitors. Since customers could potentially substitute our products with those of our competitors, customer loyalty is an important pillar of our business’s competitive position.

In addition, in order to remain competitive in the industry, the Company must periodically make substantial investments in capital equipment to ensure that our production processes are and remain state-of-the-art. Capital expenditures are not always predictable, as they are often driven by customer requirements for enhanced products. We cannot guarantee we will have the available capital to make such capital expenditures when required, which could materially adversely affect our business, financial condition and results of operations.

International Trade Policies May Negatively Impact Our Business, Results of Operations and Financial Condition

Government policies on international trade and investment such as import quotas, tariffs, and capital controls, whether adopted by individual governments or addressed by regional trade blocs, can affect the demand for our products and services and those of our customers and impact the competitive position of our products or services or those of our customers. For example, the business of our customers in China may be adversely impacted by the continuing trade friction between the United States and China. We cannot predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our products, our costs, our customers, and our suppliers, which in turn could materially adversely impact our business, financial condition and results of operations.

Alternative Transmission Technologies

Our telecommunications cable business is subject to competition from other transmission technologies, principally wireless-based technologies. Wireless telecommunications businesses have sometimes made substantial inroads in early emerging markets where sufficient funding may not then be available to install the infrastructure necessary for market-wide fixed line telecommunications. In addition, the ease of use of wireless telecommunications may make that medium an attractive alternative in circumstances where access to fixed line telecommunications is limited. These technologies present significant competition in the markets in which we conduct or plan to conduct business and no assurance can be given that the future development and use of such alternative technologies will not materially adversely affect our business, financial condition and results of operations.

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We Operate in Highly Concentrated Markets

Failure to properly execute customer projects in markets where a small number of customers are responsible for a large portion our sales could materially adversely impact our ability to obtain similar contracts from other customers in that market and may result in material financial penalties. In certain of our markets, sales of manufactured products are highly concentrated in large state-controlled entities or large private infrastructure developers. As those markets are often highly concentrated, the loss of individual customers in such markets could have a material adverse impact on our position in that market as a whole and could materially adversely affect our business, financial condition and results of operations.

Risks Associated With Required Productivity Increases

Our business strategy includes a focus on improving our financial results through increased efficiency and productivity. In the event we are not able to implement measures to increase efficiencies and productivity, we may be limited in achieving improved financial results or our financial results may worsen. Moreover, productivity increases are linked to capacity utilization rates. A drop in the utilization rate of our manufacturing capacity would adversely impact productivity and could have a material adverse effect on our business, financial condition and results of operations.

Employees’ Unions

Some of the operating subsidiaries of the Company have a large number of employees that are members of employees’ unions. Failure to successfully negotiate and/or renew collective agreements, strikes, or other labor disputes could result in a disruption of our operations. Any such labor dispute could lead to a disruption of our operations, hindering our ability to serve our customers, and could have a material adverse effect on the Company’s and could materially adversely affect our business, financial condition and results of operations.

Information Systems

The Company's subsidiaries each have their respective information systems to support the operation of such subsidiary. Some of the Company’s subsidiaries have implemented systems upon which they place great reliance for efficient operations. Most business operations, including sales, procurement, production, inventory and accounting, are processed by our internal information systems. While our operating subsidiaries vary in the degree of reliance that they place on their information systems, they all may be materially adversely affected by the failure or breakdown of their information system. A disruption of a subsidiary’s information system could materially adversely affect the Company’s business, financial condition and results of operations. Among other things, financial data may be corrupted and financial information may not be accurately reported or presented in a timely manner, which could impair the Company’s ability to timely file periodic or annual reports with the SEC or timely disseminate material information to shareholders.  A system failure could also result in a decrease in customer satisfaction because of a delay in the delivery of goods or order processing. Intellectual property, company reputation, and competitive advantages could also be harmed with an information system failure.

Increased reliance on information systems requires the implementation of IT security measures to protect networks, computers, programs and data from attack, damage or unauthorized access and ensure the confidentiality, availability and integrity of Company data. If the Company’s IT security measures are compromised or otherwise fail to protect systems, networks and data, or if an event of force majeure occurs and the Company’s disaster recovery plan does not operating effectively, the Company’s business may be disrupted and stand to lose assets, reputation and business, and potentially face regulatory fines and litigation as well as the cost of remediation, which could materially adversely impact the Company’s business, financial condition and results of operations.

Cyber Security Breaches Could Have A Material Adverse Effect on Our Business And Operations

Intense competition in the wire and cable sector renders APWC vulnerable to theft and copying of design specifications. While the Company relies upon its majority shareholder, PEWC, for much of its research and development, APWC’s products are designed precisely to meet customer specifications for the applications for which they are intended. Our cybersecurity systems are intended to protect not only our manufacturing and assembling methodologies, but also the proprietary data and operating systems of our customers and of third-party

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licensors who may make their intellectual property available for use by us or by our customers in the development of our customers’ end product.

Cybersecurity risks create potential for a material adverse impact on the Company’s business, financial condition and result of operations due to, but not limited to, losing intellectual property, implementing reactive measures, managing litigation or investigations, addressing reputational harm, or losing a competitive advantage. Mitigating these risks requires ongoing management oversight to ensure that sufficient controls and procedures are in place for appropriate persons to receive pertinent cybersecurity risk information to take appropriate action. The Company cannot offer any assurances that those controls and procedures will be sufficient to protect against cybersecurity risks.

APWC employs safeguards, both technological and contractual, in order to protect its proprietary interests and those of its customers and third-party licensors, including, without limitation, certain insurance  against theft and risk of loss, and in order to preserve the APWC’s reputation as a reliable manufacturer and distributor of finished goods for which good and clean title may pass. However, we cannot guarantee that such safeguards will protect the Company from all types of cybersecurity threats which could result in a material adverse effect on the Company’s business, financial condition and results of operations.

Employees and Personnel

If we fail to retain our key employees and attract qualified personnel, our business may be harmed. The loss of any of our executive officers or other key employees could have a material adverse effect on our business, financial condition and results of operations. The loss of executive officers or key employees could impair customer relationships and result in the loss of vital industry knowledge, expertise, and experience. There is also a risk of losing key employees to our competitors, which could pose a possible risk of the theft of trade secrets, with competitors then gaining valuable information about our manufacturing process. The Company’s future success depends on its continued ability to attract and retain talented and qualified personnel.

Impairment Charges

In prior years, we have on occasion recognized impairment charges on certain property, plant and equipment due to lack of profitability. We recognized impairment charges of $546 thousand for 2019.

An impairment charge may be incurred for various reasons including, but not limited to, strategic decisions made in response to changes in economic and competitive conditions, the impact of the economic environment on our business or a material adverse change in any material relationships with our clients. If we recognize significant impairment charges, our results of operations may be materially adversely affected.

Environmental Liabilities

We are subject to certain environmental protection laws and regulations governing our operations and the use, handling, disposal and remediation of hazardous substances used by us. We could incur environmental liability from our manufacturing activities in the event of a release or discharge by us of a hazardous substance. Under certain environmental laws, we could be held responsible for the remediation of any hazardous substance contamination at our facilities and at third party waste disposal sites and could also be held liable for any consequences arising out of human exposure to such substances or other environmental damage. There can be no assurance that the costs of complying with environmental, health and safety laws and requirements arising from our current operations, or the liabilities arising from past releases of, or exposure to, hazardous substances, will not result in future liabilities incurred, or expenditures payable, by us that would materially adversely affect our business, financial condition and results of operations.

International Business Risks

We are subject to risks specific to our international business operations, including: the risk of supply disruption; production disruption or other disruption arising from events of force majeure, such as severe weather and climatic events; the outbreak of highly infectious or communicable diseases such as COVID-19, Severe Acute Respiratory Syndrome, swine influenza or pandemics of a similar nature; the risk of potential conflict and further instability in the relationship between Taiwan and the PRC; risks related to national and international political instability, such as disruptions to business activities and investment arising out of the political unrest and turmoil in Thailand; risks related to the recent global economic turbulence and adverse economic developments in

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a number of Asian markets; risks associated with the possible interest rate increases, which could result in increases in the cost of borrowing and reduced liquidity for us and our customers; risks related to changes in governmental or private sector policies and priorities with respect to infrastructure investment and development; unpredictable consequences on the economic conditions in the U.S. and the rest of the world arising from terrorist attacks, and other military or security operations; unexpected changes in regulatory requirements or legal uncertainties regarding tax regimes; tariffs and other trade barriers, including current and future import and export restrictions; difficulties in staffing and managing international operations in countries such as Australia, Singapore, the PRC, Thailand and Taiwan; risks that changes in foreign currency exchange rates will make our products comparatively more expensive; limited ability to enforce agreements and other rights in foreign countries; changes in labor conditions; longer payment cycles and greater difficulty in collecting accounts receivable; burdens and costs of compliance with a variety of foreign laws; limitation on imports or exports and the possible expropriation of private enterprises; and reversal of the current policies (including favorable tax and lending policies) encouraging foreign investment or foreign trade by our host countries.

ITEM 4: INFORMATION ON THE COMPANY

A. History and Development of the Company

Asia Pacific Wire & Cable Corporation Limited was formed on September 19, 1996 as a Bermuda exempted company limited by shares and incorporated under the Bermuda Companies Act 1981, as amended (the “Companies Act”). The address of the Company’s principal place of business is Room B, 15th Floor, No. 77, Sec. 2, Dunhua South Road, Taipei, 106, Taiwan, and its telephone number is +(886) 2-2712-2558. Puglisi & Associates, located at 850 Library Avenue, Suite 204, Newark, Delaware 19711, is the Company’s agent for service of process in the United States.

The Company is principally engaged in the manufacture and distribution of telecommunications (primarily copper, but also fiber optic) and power cable, enameled wire and electronic wire products in the Asia Pacific region, primarily in Thailand, China, Singapore and Australia. The Company also provides project engineering services to certain customers.

Shanghai Yayang, which had previously produced enameled wires, ceased production by end of October of 2019 and has been restructured as a trading company in Shanghai that supplies mainly transformer, motor and coil manufacturers in the eastern part of China, locally in the Shanghai market and to certain Taiwanese-based manufacturers.

Principal capital expenditures consisted purchases of property, plant and equipment totaling $5.4 million in 2019, $4.4 million in 2018 and $4.9 million in 2017, mostly for the purchase of production machinery and equipment for the CTW group in Thailand.

In 2017, Ningbo Pacific Cable Co., Ltd. (“Ningbo” or “NPC”), sold real estate and land use rights, which yielded $4.4 million in operating profit.

The Company is currently planning to launch the following CAPEX projects: to purchase new equipment to expand the production capacity in China and Thailand, to build new factory buildings in Thailand and to purchase a new warehouse in Australia.

The Company’s present plans include seeking to develop an alternative energy business in Taiwan by availing itself of new tax-driven development incentives provided by the Taiwan government for the expansion of “green” energy alternatives. This project remains at a development-stage and has not generated any revenues to date.

Please see Note 29 (Subsequent Events) to the consolidated financial statements referenced in Item 18 hereof for information on recent material events, which Note contains information regarding recent development in respect of the risk of the delisting of our Common Shares from Nasdaq and in respect of the material adverse effects of COVID-19 on the Company, its business, operations, financial condition, employees and customers.

Our website is located at www.apwcc.com. The information contained or linked to on our website is not included in, or incorporated by reference into, this Annual Report on Form 20-F.  Our filings with the SEC, including reports, proxy and information statements, and other information regarding us that is filed electronically with the SEC are available on the SEC’s websites at www.sec.gov.

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B. Business Overview

The Company is a holding company that operates its business through operating subsidiaries and associates, principally located in Thailand, China, Singapore and Australia.

The Company is principally engaged in the manufacture and distribution of telecommunications (primarily copper, but also fiber optic) and power cable, enameled wire and electronic wire products in the Asia Pacific region, primarily in Thailand, China, Singapore and Australia. The Company also provides project engineering services to certain customers.

The Company’s present plans include seeking to develop an alternative energy business in Taiwan by availing itself of new tax-driven development incentives provided by the Taiwan government for the expansion of “green” energy alternatives. This project remains at a development-stage and has not generated any revenues to date.

The following chart shows the organizational structure of the Company as of December 31, 2019 and its principal operating subsidiaries, including affiliate ownerships, and the percentage of ownership interest and voting power in each case. The location of the headquarters of each company is indicated in parentheses under the company’s name (“T” for Thailand, “C” for China or Hong Kong, “S” for Singapore and “A” for Australia).

Thailand Region

The Company’s Thai operations are conducted through Charoong Thai, Siam Pacific, Double D Cable Company Ltd. (“DD”) and Siam Fiber Optics Co. Ltd. (“Siam Fiber Optics”). Charoong Thai and Siam Pacific are the Company’s principal entities in Thailand.

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Charoong Thai is a publicly-traded Thai corporation, the shares of which are listed on the Stock Exchange of Thailand (“SET”). It manufactures aluminum and copper electric wire, medium and high voltage power cables and telecommunications cables. It has subsidiaries and affiliates in the businesses of optic fiber cable manufacturing and telecommunication and network services. Charoong Thai was established in Thailand in 1967 as a limited public company. As of December 31, 2019, the Company effectively owned 50.93% of the issued and outstanding shares of Charoong Thai. The Company’s present intention is to maintain majority ownership of the voting securities of Charoong Thai. The board of directors of Charoong Thai may authorize the issuance of additional shares of common stock of Charoong Thai. The Company has preemptive rights to purchase its pro rata share of any additional authorized shares, less amounts reserved for directors, officers or employees. In the event the board of Charoong Thai decides to cause it to issue additional shares, the Company may decide not to exercise its preemptive rights, in which case the Company’s interest may be diluted.

Siam Pacific was established in 1988 as a joint venture between PEWC and Italian-Thai Development Plc. Siam Pacific is now a 100%-owned subsidiary of Charoong Thai and focuses on the manufacture of telecommunications cables, and enameled wires for the domestic Thai market.

North Asia Region

During 2019, the Company’s China (and North Asia) principal operations were conducted through five business entities – Shanghai Asia Pacific Electric Co., Ltd. (“Shanghai Yayang”), Crown Century Holdings Limited (“CCH HK”), Pacific Electric Wire and Cable (Shenzhen) (“PEWSC”), Shandong Pacific Rubber Cable Company, Ltd. (“SPRC”), and Asia Pacific New Energy Corp. Ltd. (“APNEC”). The operating entities include Shanghai Yayang, formerly known as Shanghai Pacific Electric Co., Ltd., a subsidiary in Shanghai incorporated in June 1998 to manufacture enameled wires. The Company’s effective holding in Shanghai Yayang is 68.75%. Shanghai Yayang manufactured enameled wires with a diameter between 0.05mm and 2.5mm for sale and distribution in the eastern part of China, and to Chinese and Taiwanese based end-users up to end of October 2019, then it has been restructured as a trading company.

The Company has an effective holding of 97.93% of the capital stock of CCH HK, a Hong Kong registered company, and its wholly-owned subsidiary company, PEWSC. PEWSC manufactures enameled wires for electric, video and audio products for both domestic and export sales.

The Company holds a 25.0% interest in SPRC, which manufactures rubber cables for the China market. The remaining 75% is owned by Shandong Yanggu Wire & Cable Corp. Ltd. (“Shandong Yanggu”), an established cable manufacturer in Shandong Province that produces a wide range of cable products.

The Company continues to own the equity of Ningbo, which still holds its government-granted business license. The Company has disposed of the buildings and most of the equipment and the land use rights for the property where the Ningbo operations were situated.  The principal machinery utilized at the Ningbo facility has either been sold or stored at other operating facilities of APWC.

The Company established a new entity, APNEC, in Taipei City on October 26, 2018 for the new renewable energy business. APNEC seeks to develop an alternative energy business in Taiwan by availing itself of incentives provided by the Taiwan energy authority for the expansion of “green” energy alternatives. This project remains at a development-stage and has not generated any revenues to date.

Rest of the World (“ROW”) Region

The Company’s ROW region currently consists of its Singapore and Australian operations.

The Company’s Singapore operations are principally conducted through Sigma Cable Company (Private) Limited (“Sigma Cable”), an indirect, 98.3%-owned subsidiary of the Company. The Company believes that Sigma Cable is one of the major suppliers of power cable products in Singapore. Sigma Cable manufactures and sells a range of low voltage power cable products, used mainly in infrastructure projects and commercial and residential developments. Sigma Cable is the exclusive distributor in Singapore of medium and high voltage wire and cable products manufactured by PEWC. It is also the distributor for general wires manufactured by a third-party supplier.

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Sigma Cable also has project engineering operations in Singapore to supply, deliver and install (referred to as “SDI”) primarily medium and high voltage cables to power transmission projects. While the Company currently obtains its supply of medium and high voltage power cables for its SDI operations from PEWC, other suppliers are also available if necessary.

Sigma Cable owns 100% of the capital stock of Epan Industries Pte. Ltd. (“Epan”) a Singaporean Company. Currently, Epan is acting as the distributor of Sigma Cable products and those of other third party suppliers.

The Company’s business in Australia is conducted by Australia Pacific Electric Cable Pty. Ltd. (“APEC”). The Company’s indirect, beneficial ownership interest in APEC is 98.06%. APEC is located near Brisbane and is one of three major wire and cable manufacturers in Australia. APEC produces a range of power cables supplemented by imports from overseas sister companies. APEC possesses a substantial marketing and distribution infrastructure with a network of sales offices and warehouses in the cities of Brisbane, Sydney, Melbourne and Perth.

4.2.1 Products and Services

Across the Company’s three reporting segments, the Company engages in three principal business lines that consist of manufacturing and distributing wire and cable products, such as power cables and enameled wires, and providing project engineering services to certain customers. The Company manufactures and sells a wide variety of wire and cable products in primarily four general categories: telecommunications cables, power transmission cables, enameled wires, and electronic wires. The Company’s telecommunications and power cables are used in a range of infrastructure projects and in commercial and residential developments. The Company’s enameled wires are used in the manufacturing of components and sub-components of a number of household appliances and small machinery. The electronic wire products are used in the electronics, computer, building automation, audio and communication industries. In addition, the Company acts as a distributor of wire and cable products manufactured by PEWC and other third party suppliers in Singapore. The Company also offers SDI project engineering services of medium and high voltage cables for power transmission projects in Singapore.

Services

Fabrication

The Company performs fabrication services for its customers, converting raw materials to wire and cable products. Raw materials, such as copper, aluminum, polyvinyl chloride, polyethylene and optic fibers, are commodities traded on global markets with anticipated price fluctuations and currency risk. Given these risks, the Company provides fabrication services using customer-owned materials to pass exposure to the customer.

SDI Project Engineering Services

Given government and private sector infrastructure projects and residential and commercial buildings activity in Singapore, the Company anticipates modest demand for medium and high voltage power and for value added services in the power supply industry.  To take advantage of these opportunities, the Company has developed an SDI project engineering capability. This SDI project engineering involves supply, delivery and installation of primarily medium and high voltage cables to power transmission projects in Singapore. Through entering into a contract to supply, deliver and install cables for a power transmission project, the Company delivers medium and high voltage cables and enters into subcontracting agreements with local companies to install the cables as required by the project.

Products

Copper rod is the base component for most of the Company’s products. The manufacturing processes for these products require that the rod be “drawn” and insulated. In the “drawing” process, copper rod is drawn through a series of dies to reduce the copper to a specific diameter. For certain applications, the drawn copper conductor is then plated with tin. Copper used in cables is covered with various insulating materials that are applied in an extrusion process. The insulated wires are then combined, or “cabled” to produce the desired electrical properties and transmission capabilities. Then, depending upon the cable, some form of protective cover is placed over the cabled wires. A summary of the manufacturing process used for the Company’s primary wire and cable products is set forth below.

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Telecommunications Cable

The Company produces a wide range of bundled telecommunications cables for telephone and data transmissions with different capacities and insulations designed for use in various internal and external environments. The principal use of these cables is as access cables to connect buildings and residents to trunk cables. Telecommunications cables produced by the Company include copper-based and fiber optic cables.

Production of copper-based telecommunications cables begins by drawing a copper rod until it has reached the desired diameter, after which the drawn wires are subjected to a process called “annealing” in which the wires are heated in order to make the wires softer and more pliable. Utilizing an extrusion process, which involves the feeding, melting and pumping of a compound through a die to shape it in final form as it is applied to insulate the wire, the wires are then covered by a polyethylene (“PE”) or polyvinyl chloride (“PVC”) compound and foam skin, suitable for different installations and environmental conditions. In order to reduce the cross-talk between pairs of communication wires, the insulated wires are then “twinned” or twisted so that two insulated single wires are combined to create a color-coded twisted pair. The twisted pairs of wires are then “cabled” or “stranded” into units of 25 twisted pairs for combination with other 25 pair units to form cable of various widths and capacities. The appropriate number of units is cabled together after stranding to form a round cables core. Depending upon the planned environment, a petroleum jelly compound may then be added to fill the cable core to seal out moisture and water vapor. Aluminum or copper tape is used to “shield” the cables and, finally, the shielded cable core is covered by plastic outer sheathing. The Company manufactures telecommunications cables with capacities and sizes ranging from 25 to 3,000 pairs of 0.4 mm-diameter wires to 10 to 600 pairs of 0.9 mm-diameter wires.

Power Cable

The Company produces a range of armored and unarmored low voltage power transmission cables. Low voltage power cables, generally considered to be cable with a capacity of 1 to 3.3 kilovolts, is typically used to transmit electricity to and within commercial and residential buildings, as well as to outdoor installations such as street lights, traffic signals and other signs. Armored low-voltage power cables are usually used for public lighting and power transmission running to buildings and installed either above or below ground. Unarmored low voltage cables are mainly used as lighting and power supply cables inside and outside of buildings. The voltage capacity of the Company’s power cables ranges from 300 volts to 1 kilovolt.

Production of unarmored cables begins by drawing and annealing of copper rods. The drawn copper wires are then stranded or “bunched” into round or sector-shaped conductors in sizes ranging from 1.5 square millimeters to 1000 square millimeters. The copper conductors are then covered in an extrusion process with a plastic insulator such as PVC, after which 2-5 conductors are twisted into a circular cable core in a cabling process and covered by a plastic outer cover.

Unarmored cables are composed of one or more cores of copper wire, insulated by substances such as PVC. Armored cables are produced in the same manner and the same range of configurations as unarmored cables, but with the addition of an outer layer of galvanized steel or iron wires to protect the cables from damage.

Enameled Wire

The Company also produces several varieties of enameled wires. Enameled wires are copper wires varnished, in an enameling process, by insulating materials. The enameling process makes the wires more resistant to oil, heat, friction and fusion, and therefore suitable for use in machinery and components and sub-components of manufactured goods. The Company manufactures enameled wires in sizes that range from 0.02 mm to 4.00 mm in diameter, varnished by various types of petroleum insulation materials including polyvinyl formal, polyurethane wires and polyester. Enameled wire products are used in the assembly of a wide range of electrical products, including oil-filled transformers, refrigerator motors, telephones, radios, televisions, fan motors, air conditioner compressors and other electric appliances.

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4.2.2 Raw Materials

Copper is the principal raw material used by the Company for copper-based products. The Company typically purchases copper at prices based on the average prevailing international spot market prices on the LME for copper for the one month prior to purchase. The price of copper is influenced heavily by global supply and demand as well as speculative trading. As with other costs of production, changes in the price of copper can affect the Company’s cost of sales. Whether this has a material impact on the Company’s operating margins and financial results depends primarily on the Company’s ability to adjust selling prices to its customers, such that increases and decreases in the price of copper are reflected in those selling prices. Most sales of the Company’s manufactured products reflect copper prices prevailing at the time the products are ordered. A long-term decrease in the price of copper would require the Company to revalue the value of its inventory at periodic intervals to the then net realizable value, which could be below cost.

The Company purchases copper in the form of rods and cathodes. Copper cathodes are thin sheets of copper purified from copper ore. The Company presently utilizes the services of Thai Metal Processing Co., Ltd. to process its copper cathodes into copper rods in Thailand although the Company has a variety of processing companies from which it may obtain these services. Copper rods are drawn into copper wires for the production of telecommunications cables, power cables and enameled wires.

The Company has historically purchased a substantial portion of its copper rods from PEWC. Under the Composite Services Agreement between the Company and PEWC, PEWC has agreed to supply to the Company on a priority basis with its copper rod requirements at prices at least as favorable as prices charged to other purchasers in the same markets purchasing similar quantities. However, the Company has diversified its copper purchases from among a number of preferred copper suppliers to ensure that we are consistently getting the most advantageous pricing on our copper purchases. Under the Company’s copper rod supply arrangements, orders are typically placed between eight to ten weeks before the desired delivery date, with prices “pegged” to the average spot price of copper on the LME for the one month prior to delivery plus a premium.

The Company imports both copper cathodes and copper rods in Thailand, with copper cathodes subjected to lower import duty than copper rods. The key suppliers are PT. Karya Sumiden Indonesia - Indonesia, PEWC-Taiwan, Walsin Lihwa Corporation.- Taiwan, Mitsubishi Corporation RtM International Ptd.- Singapore, Glencore International AG.-Switzerland, and Marubeni Corporation-Japan. The Company attempts to maintain approximately a three to five week supply of copper rods and cathodes for its Thai operations and approximately a two to four week supply in Singapore. In PEWSC, the Company generally maintains one to two weeks of supply of copper rods and cathodes. In APEC, the copper supply is generally maintained at one to two weeks of anticipated requirements.The Company has regularly signed one-year contracts with each of the copper suppliers, pursuant to which the Company agrees to purchase a set quantity of copper each month. Under the terms of such contracts, the price of copper is typically pegged to the monthly average of the spot price of copper on the LME for the delivery month (M-0), or 1 month before delivery month (M-1) plus a premium. The Company has not had and does not anticipate any material supply interruption or difficulty in obtaining a sufficient supply of copper rod or cathode. The Company anticipates that its copper suppliers will be capable of providing an adequate supply of copper to meet the Company’s requirements and the Company does not anticipate any change in relations with its copper suppliers in the near term.

Other raw materials used by the Company include aluminum used as a conductor in power cables and petroleum-based insulation materials such as PE, PVC and jelly compounds for insulating covers on cables and varnishes on enameled wires; aluminum foils for sheathing of communication cables; and galvanized steel wires for the production of armored wires. The Company has not had and does not anticipate any difficulty in maintaining adequate supplies of these raw materials and expects to continue to be able to purchase such raw materials at prevailing market prices.

Other than import tariffs in Thailand, the Company does not face any restriction or control on the purchase or import of its raw materials. The Company may freely choose its suppliers and negotiate the price and quantity of material with its suppliers. The Company formulates consumption plans for raw materials regularly and continually monitors market conditions in respect of the supply, price and quality of raw materials.

Inflation would increase the cost of raw materials and operating expenses for the Company.  If inflation increases, the Company would try to maintain its operating margins by increasing the prices of its products.

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4.2.3 Quality Control

In order to maintain product quality, the Company has implemented a range of quality control procedures under the supervision of dedicated quality control staff. Quality control procedures are implemented from the raw material to the finished product stages at each of the Company’s major production facilities. Raw materials are inspected to ensure they meet the necessary level of quality before production begins. During the manufacturing process, quality control procedures are performed at several stages of production. Upon completion, finished goods are brought to quality control centers set up in the factory for inspection and testing of different electrical and physical properties.

Depending on the requirements of its customers, the Company has the capability to manufacture its products to meet a variety of different quality and production standards. These include local standards and certifications, such as the Singapore Institute of Standards and Industrial Research Quality Mark and the Thailand Industrial Standard, as well as other standards including the National Electrical Manufacturers Association Standard, the British Standard, the Japan Industrial Standard and Underwriters Laboratories Inc. Standard, as applicable.

All major companies in the APWC group have attained International Standards Organization (“ISO”) 9002 certification for quality management and assurance standards in the manufacture of electric wires and cables and have maintained that certification for at least the last ten years. The certifications mean that the companies have in place quality assurance systems and the capability to consistently manufacture products of quality.

4.2.4 Reporting Segments

The Company’s telecommunications cable and power cable products are primarily sold in the domestic markets of the countries where they are manufactured, whereas most of the enameled wires manufactured by the Company in Thailand are exported, primarily to customers throughout Southeast Asia. The following table sets forth the Company’s sales revenues for the periods indicated in its three reporting segments – North Asia region, Thailand region and ROW region for its three principal product lines, i.e., power, enameled and others together with their respective percentage share of total sales by reporting segment for such periods.

Year ended December 31, 2019	North Asia		Thailand		ROW		Total segments Consolidated
	US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		49,493		78,686		128,179
Enamel		76,575		102,997		—		179,572
Others*		—		19,889		10,520		30,409
		76,575		172,379		89,206		338,160

Year ended December 31, 2018	North Asia		Thailand		ROW		Total segments Consolidated
	US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		64,771		92,130		156,901
Enamel		103,647		114,247		—		217,894
Others*		—		34,406		16,739		51,145
		103,647		213,424		108,869		425,940

Year ended December 31, 2017	North Asia		Thailand		ROW		Total segments Consolidated
	US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		104,426		95,820		200,246
Enamel		101,533		94,791		—		196,324
Others*		—		7,268		21,377		28,645
		101,533		206,485		117,197		425,215

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* Includes revenues from SDI service contracts, fabrications service contracts, and sales of other wires and cable products.

	Year ended December 31,
	2017 (a)
	US$’000
Manufactured Products		361,853
Distributed Products		41,985
SDI		21,377
Total Revenue		425,215

(a) The Company’s disaggregated revenues transitioned from reporting of Manufactured Products, Distributed Products and SDI segments in 2017 to reporting of Power, Enamel and Others product lines in 2018. Reported results of Power, Enamel and Others product lines provide improved understanding and insight to the performance of the Company and its products and services.

Our operating subsidiaries are also responsible for sales planning, marketing strategy and customer liaison. The Company’s sales staff is knowledgeable about the Company’s products and also renders technical assistance, consulting services and repair and maintenance services to the Company’s customers. The Company does not conduct sales through independent sales agents on a commission basis but uses its own sales employees located at the operating subsidiaries.

As copper constitutes the most significant component of the Company’s wire and cable products, the price of the Company’s products depends primarily upon the price of copper. In order to minimize the impact of copper price fluctuations, the Company attempts to determine the prices of its products based on the prevailing market price of copper. The Company may be affected, to a degree, in the short term by significant fluctuations in the price of copper.

Payment methods for the Company’s products vary with markets and customers. The majority of sales by the Company requires payment within 90 days, but may vary depending on the customer and payment record. Sales pursuant to a successful project tender or sales to governmental or public utilities are conducted in accordance with the tender or other applicable regulations. In connection with the distribution of medium and high voltage power cables manufactured by PEWC, the Company is required to pay PEWC 90% of the cost of the products either within 30 days of receipt of the product or, in the case of SDI products, upon installation, with the remaining 10% in either case to be paid within one year. In connection with the purchase of copper rod, the Company is required to pay PEWC the cost of the copper rod within 30 days from obtaining the products from PEWC. For the export market, payment is usually made by prior delivery of an irrevocable letter of credit. Neither the Company nor its operating subsidiaries offers financing for purchases of the Company’s products. Company employees engaged in sales and marketing are paid a salary and may also receive a bonus based on performance.

Products are marketed under the respective names of the operating subsidiaries. For instance, products manufactured by Siam Pacific are marketed under the “Siam Pacific” trade name. Products manufactured by Sigma Cable are sold under the “Sigma Cable” brand.

North Asia

The Company produces and sells enameled wires and electronic wires in China. The Company’s principal China operations are conducted through China business entities. The Company generally sells enameled wires directly to manufacturers of electric motors for use in various consumer appliances.

Thailand

The Company produces and sells telecommunication cables, enameled wires and power cables in Thailand. Charoong Thai is one of the leading cable manufacturers in Thailand. Our distribution channels include both direct sales to government entities and private sector participants in the infrastructure sector, and sales to agents for governmental entities. Sales within the Thailand region are made directly by the sales department of the Company’s operating subsidiaries in accordance with terms and pricing set by the local subsidiaries. The major customers of the Company include clients working with the government and its contractors.

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ROW

The Company produces and sells low voltage power cables in Singapore and Australia. In addition, the Company sells a wide range of wire and cable products produced by third party suppliers and PEWC. The Company also offers SDI project engineering services for medium and high voltage power cables to power transmission projects in Singapore.

In 2019, sales of wire and cable products accounted for 86% of the total net sales in Singapore, with the remaining 14% of sales in Singapore representing SDI project engineering services. SP Power Assets Ltd. has historically been the principal customer for the Company’s SDI services, accounting for nearly all of our SDI sales. Sales to SP Power Assets Ltd. are under a comprehensive contract, with purchase orders placed from time to time.

4.2.5 Competition

The wire and cable industry in the Asia Pacific region is highly competitive. The Company’s competitors include a large number of independent domestic and foreign suppliers. Certain competitors in each of the Company’s markets have substantially greater manufacturing, sales, research and financial resources than the Company. The Company and other wire and cable producers primarily compete on the basis of product quality and performance, reliability of supply, customer service and price.

Thailand

The wire and cable industry in Thailand is highly competitive. In its various product lines, the Company competes with a total of approximately thirty local wire and cable manufacturers and, to a lesser extent, with foreign producers for sales in Thailand of telecommunications cables, power cables and enameled wires. The Company is one of the five largest producers in the Thai market. These five largest producers are the only producers of telecommunications cables approved by the Thai Industrial Standards Institute and, therefore, the only cable producers whose products may be used in government-commissioned projects. Governmental approval processes, tariffs and other import restrictions have limited competition in the Thailand market from foreign wire and cable producers. The Company also experiences significant competition from a number of smaller producers with regard to sales of enameled wire products.

Singapore

Although the Company believes that Sigma Cable is one of the major suppliers of power cable products in Singapore, it is subject to significant competition from producers within the region. There is no tariff or other barrier against foreign competition in the local Singapore market and potential competitors are free to enter the industry. Because of high capital costs, the Company does not presently anticipate that it is likely there will be new domestic entrants to the wire and cable industry in Singapore in the near future that would present material competition to the Company or be in a position to capture a material percentage of the Company's share of the market. However, the performance of Sigma Cable in 2019 was impacted adversely by increased intense competition from Chinese manufacturers seeking to capture a greater share of the Singaporean market.

Australia

Currently, besides APEC, there are two major wire and cable producers with operations located in Australia: Olex Cables (owned by Nexans) and Prysmian Cables, with factories in the States of Victoria and New South Wales, respectively. A significant portion of Australian market is serviced by two importers: (i) Electra Cables which reportedly imports cables from China factories; and (ii) World Wire Cables, which reportedly also sources cables from its Chinese partners to sell in Australian market. These companies are APEC’s principal competitors. APEC is the only power cable producer in the State of Queensland and therefore seeks to take advantage of its comparative proximity to Queensland-based customers in contrast to competitors that are required to transport their products into Queensland from other states in Australia. APEC has sales offices with warehousing facilities in Sydney, Melbourne, Brisbane, and Perth in order to attract and serve the customers in those regions. APEC also has a distribution agreement with one of the regional suppliers with the goal of generating additional business for the Australia operations.

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China

PEWSC manufactures enameled wires in the Shenzhen Special Economic Zone in Guangdong Province for electronic, video and audio products for the South China market and for export. It supplies mainly to overseas transformer, motor and coil manufacturers.  It faces competition principally from overseas imports and local manufacturers.

Shanghai Yayang has been restructured as a trading company in Shanghai and it supplies mainly transformer, motor and coil manufacturers in the eastern part of China, locally in the Shanghai market and certain Taiwanese-based manufacturers. It faces competition principally from overseas imports and manufacturers from other provinces in China.

4.2.6 Regional Considerations

The principal Asian markets in which we do business have displayed higher overall economic growth in recent years compared to the United States and a number of other more developed markets, subject to occasional episodes of economic and currency exchange volatility attributable to various factors including the increased risks of emerging market investment, actual or potential political instability and occasional pandemics. In some countries, the International Monetary Fund (the “IMF”) exerts considerable influence over economic policy and provides support to stabilize the domestic economy. In general, the Asian markets in which we do business have been export-driven in recent years and have, in the case of China and Singapore, for example, accumulated considerable capital reserves, which contributes to a more stable business environment.

Thailand Region

A substantial portion of the Company’s Thai operations, whose sales accounted for approximately 50.98% of the Company’s net sales in 2019, consists of the manufacture and sale of telecommunications and power cable for use in large-scale telecommunications projects and various construction projects in Thailand. The volume of sales of these products tends to correlate with the general level of economic activity in Thailand. As a result, the performance of the Company’s Thai operations depends in significant part on the general state of the Thai economy. Infrastructure development and related construction projects in Thailand depend significantly upon government sponsored initiatives. In recent years, the level of government involvement in infrastructure development has tended to track increases or contractions in Thailand’s gross domestic product (“GDP”). Overall, the construction industry and infrastructure projects have slowed considerably, thereby affecting local sales, placing competitive pressure on prices and prompting the Company to rationalize Thai operations and actively seek overseas export markets. Political instability in Thailand tends to diminish governmental focus on infrastructure development projects, which can adversely impact the volume of sales to our customers who are engaged in large infrastructure projects.

Telecommunication and Enameled Wires

Sales of the Company’s telecommunication products in Thailand have depended to a significant degree on the substantial investment in and development of the telecommunications sector by the Thai government. In particular, the Company’s sales of products are affected by the value of contracts awarded by the government for telecommunications and other infrastructure projects.

The Company produces and sells copper core telecommunications cables, enameled copper wires and enameled aluminum wires in the Thai market and exports enameled wires to overseas markets. Sales of telecommunications cables, one of the Company’s leading products in Thailand, are conducted either by tender for participation in large scale telecommunications projects of the Telephone Organization of Thailand Corporation Plc. (“TOT”), or by sales directly to subcontractors of Triple T and True, the two private telephone line contractors licensed by TOT for particular projects. The Company generally sells enameled wires directly to electrical appliance manufacturers or to OEMs (original equipment manufacturers) for both the local and export markets, and in smaller units that are sold to local dealers.

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Power

In Thailand, the prevailing historical trend has been that economic growth stimulates rapid growth in the demand for electric power, and annual rates of growth in electricity demand outpace annual economic growth rates. Despite the rapid growth in electricity demand, electricity consumption in Thailand remains low by international standards. The Company believes that, in the medium to longer term, there will be an increased demand for power supply which should lead to increased demand for the Company’s power cable products from both developers of power production facilities and contractors installing power supply lines.

Singapore

The Company’s distribution and project engineering business segments operate only in the Singapore market. In 2019, the Company realized $7.6 million in revenues from SDI projects, compared to $16.7 million in 2018 and $21.4 million in 2017.

Future revenue is expected to mirror population and residential growth while the Company continues to seek alternative ways to increase business volume in its project engineering business segment.

China

The economy of China differs from that of most developed free-market economies in a number of respects, including structure, degree of government involvement, level of development, growth rate, capital reinvestment, allocation of resources, rate of inflation and balance of payments position. In recent years, the PRC government has implemented economic reform measures which emphasize decentralization, expansion of consumption in the domestic market, residential and commercial real estate development, infrastructure development, utilization of market forces and the development of foreign investment projects of which Shanghai Yayang is an example.

C. OrganizationAL Structure

Please refer to Business Overview in Item 4.B above.

D. Property, PlantS and Equipment

The Company’s manufactured products are produced at facilities located on premises owned or leased by Siam Pacific, Charoong Thai, Sigma Cable, APEC, Shanghai Yayang and PEWSC. The following is a summary of the Company’s material facilities and operations.

Siam Pacific owns a 7.45 acre production facility near Bangkok, Thailand, located on a 26.79 acre site that it also owns. Telecommunications cables and enameled wires are manufactured at this facility. The production facility constitutes a portion of certain property and assets which are pledged to financial institutions.

Charoong Thai owns a 34 acre production facility in Chachoengsao province, near Bangkok, Thailand, where telecommunications cables and power cables are manufactured. The production facility is located on a 65 acre site which Charoong Thai also owns. Neither the production facility nor the land is mortgaged.

Sigma Cable produces power cables on a 19,373 square meter site in Singapore leased from the Jurong Town Corporation (“JTC”) for 30 years from September 16, 2000 to September 16, 2030. JTC is a government-linked corporation and is Singapore’s largest industrial landlord. Building assets are pledged to United Overseas Bank.

APEC owns a 6,735 square meter power cable manufacturing facility on a 39,000 square meter land parcel in Brisbane, Australia.

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Shanghai Yayang ceased production by end of October of 2019 and has been restructured as a trading company, located in an area of approximately 27,839 square meters of state-owned land in an industrial district in Fengxian, Shanghai. The land and building are pledged to Industrial and Commercial Bank of China as security for a $1.8 million bank loan.

PEWSC manufactures enameled wires in a facility on 36,000 square meters of state-owned land with a built-up area of 20,367 square meters in Long Gang, Shenzhen, China. A leasehold right of industrial land use for the land has been granted for 49 years. The land and building are pledged to Agricultural Bank of China as security for a $1.1 million bank loan.

All of the Company’s facilities in Thailand, Singapore, Australia and China use production processes and equipment imported from Europe, the United States, Taiwan, or Japan.

The production capacity and extent of utilization of the Company’s facilities varies from time to time, and such information is considered to be commercially sensitive and proprietary information.

4.5 Insurance

The Company maintains insurance policies covering certain buildings, machinery and equipment against specified amounts of damage or loss caused by fire, flooding, other natural disasters and burglary and theft. The Company does not carry insurance for consequential loss arising from business interruptions or political disturbances and does not carry product liability insurance. In addition, the Company does not have business liability or disruption insurance for its operations in China and the Company does not have coverage for flood damage or business interruption for its operations in Thailand. Consequently, the amount of our insurance coverage may not be adequate to cover all potential claims or liabilities, and we may be forced to bear substantial costs resulting from the lack of adequate insurance.  No assurance can be given that we will not incur losses beyond the limits or outside the scope of coverage of our insurance policies.  Accordingly, we may be subject to an uninsured or under-insured loss in such situations.

4.6 Environmental Regulations

The Company is subject to a variety of laws and regulations covering the storage, handling, emission and discharge of materials into the environment. The Company believes that all of its operations are in material compliance with, and in certain circumstances exceed the requirements of, all applicable environmental laws and regulations. The Company has not been subjected to any material legal, regulatory or other action alleging violations or breaches of environmental standards.

ITEM 4A: UNRESOLVED STAFF COMMENTS

Not applicable

ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion should be read in conjunction with the information contained in our audited consolidated financial statements and notes thereto (the “Financial Statements”) referenced in Item 18 of this Annual Report.

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5.1Disclosures of Critical Accounting Policies

Summarized below are our accounting policies that we believe are important to the presentation of our financial results and require us to make estimates about the effect of matters that are uncertain in nature. Actual results may differ from these estimates, judgments and assumptions. Certain accounting policies are particularly critical because of their significance to our reported financial results and the possibility that future events may differ significantly from the conditions and assumptions underlying the estimates used and judgments made by our management in preparing our financial statements. The following discussion should be read in conjunction with the consolidated financial statements and related notes, which are included in this annual report.

Impairment of non-financial assets

At each reporting date or whenever events indicate that the asset’s value has declined or significant changes in the market with an adverse effect have taken place, the Company assesses whether there is an indication that an asset in the scope of IAS 36 may be impaired. If any indication exists, the Company completes impairment testing for the cash generating unit (“CGU”) to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or CGU is the higher of fair value less costs to sell and its value in use. The fair value less costs of disposal calculation is based on available data from binding sale arrangements, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposal of the assets. The value in use is measured at the net present value of the future cash flows the entity expects to derive from the asset or CGU. Cash flow projection involves subjective judgments and estimates which include the estimated useful lives of property, plant and equipment, capacity that generates future cash flows, capacity of physical output, potential fluctuations of economic cycle in the industry and the Company’s operating situation. See Note 15 – Property, Plant and Equipment – of our consolidated financial statements presented herewith.

Fair value of financial instruments

Where the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including income approach (for example, the discounted cash flows model) or the market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 11 of our consolidated financial statements presented herewith.

Measurement of ECL allowance for trade receivables

The Company applies the IFRS 9 simplified approach to measure lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of the sales over a period of 36 month before December 31, 2019 and the historical credit loss experience within this period. The historical loss rates are adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of customers to settle receivables. The Company has identified the default rate of the countries where it sells goods and services as the most relevant factor and adjusts the historical loss rates based on expected changes accordingly.

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Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the taxing authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Post-employment benefits under defined benefit plans

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rate of 1 to 13 times of their monthly salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees at rates of 1 to 26 times of their final monthly salary.

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexity of the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the inactive corporate bond trading  in Thailand, taking into account the yields on Thai Government Bonds and extrapolated maturity corresponding to the expected duration of the defined benefit obligation.

The mortality rate is based on most recent mortality investigation on policyholders of life insurance companies in Thailand. Future salary increases and pension increases are based on expected future inflation rates derived from external economic data, together with historical experience of Charoong Thai.

Revenue recognition of SDI projects

Changes in percentage of completion result in changes in contract revenue and costs recognized in the statement of comprehensive income during the year. Significant estimation by management is also required in assessing the recoverability of contracts based on estimated total contract revenue and contract costs.  In making such estimation, management’s evaluation is based on the actual level of work performed and past experience.

5.2Selected Operating Data

This discussion should be read in conjunction with the information contained in our Consolidated Financial Statements referenced in Item 18 of this Annual Report.

Results are analyzed and reported along the lines of our three principal business segments, consisting of the North Asia region, the Thailand region, and the ROW region. Included in the summary table below are certain results within our 3 business segments with regard to net sales, operating profit and operating profit margin for the periods covered. The following table sets forth selected summary data for the periods indicated (dollar ($) amounts in thousands of US$).

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During 2018, Management changed the presentation of the operating data line items, replacing gross profit and gross profit margin with operating profit (loss) and operating profit (loss) margin. This change is intended to provide readers of our financial statements with more relevant information and a better explanation of the elements of performance.

5.3 Operating Results

	For the year ended December 31,
	2019			2018			2017
	(in thousands except for percentage)
Net Sales:
North Asia region	$	76,575		$	103,647		$	101,533
Thailand region		172,379			213,424			206,485
ROW region		89,206			108,869			117,197
Total	$	338,160		$	425,940		$	425,215
Operating profit (loss):
North Asia region	$	1,237		$	5,234		$	3,256
Thailand region		3,042			9,539			11,053
ROW region		(1,659	)		(2,306	)		1,205
Corporate expenses & adjustments		(3,269	)		(3,783	)		1,101
Total operating profit (loss)	$	(649	)	$	8,684		$	16,615
Operating profit (loss) margin:
North Asia region		1.62	%		5.05	%		3.21	%
Thailand region		1.76	%		4.47	%		5.35	%
ROW region		(1.86	)%		(2.12	)%		1.03	%

The Company is 75.4% beneficially owned and controlled by PEWC, a Taiwanese company. The remaining 24.6% of the outstanding Common Shares are publicly-traded in the United States and listed on Nasdaq. Based upon a review of Schedule 13D and 13G filings made with the Commission by shareholders, and a review of the share register maintained by the Company’s transfer agents in Bermuda and the U.S., the Company is not aware that it has any shareholders resident in the jurisdictions where the Company has business operations. While the Company’s operations and results are impacted by economic, fiscal, monetary and political policies of the respective governments in the countries where the Company operates, that impact is not a function of the shareholder base of the Company.

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5.3.1 Year Ended December 31, 2019 Compared with Year Ended December 31, 2018

General

	For the Year Ended December 31,
	2019			2018			Changes in $			Changes in %
	(in thousands)
Income Statement Data:
Revenue	$	338,160			425,940			(87,780	)		(20.6	)
Costs of sales		(313,373	)		(389,692	)		76,319			19.6
Gross profit		24,787			36,248			(11,461	)		(31.6	)
Other operating income		385			805			(420	)		(52.2	)
Selling, general and administrative expenses		(25,051	)		(26,924	)		1,873			7.0
Other operating expenses		(770	)		(1,445	)		675			46.7
Operating profit		(649	)		8,684			(9,333	)		(107.5	)
Finance costs		(1,012	)		(1,378	)		366			26.6
Finance income		506			482			24			5.0
Share of loss of associates		(3	)		(3	)		—			—
Exchange gain/(loss)		1,550			1,741			(191	)		(11.0	)
Other income		717			1,817			(1,100	)		(60.5	)
Other expense		(3	)		(11	)		8			72.7
Profit before tax		1,106			11,332			(10,226	)		(90.2	)
Income taxes expense		(2,057	)		(3,886	)		1,829			47.1
Profit for the year		(951	)		7,446			(8,397	)		(112.8	)
Attributable to:
Equity holders of the parent		(1,632	)		2,928			(4,560	)		(155.7	)
Non-controlling interests		681			4,518			(3,837	)		(84.9	)

Results of operations are determined primarily by market demand and government infrastructure projects, market selling prices of our products, our ability to manufacture high quality products efficiently in quantities sufficient to meet demand and to control production and operating costs.  Our results are also influenced by a number of factors, including currency stability in the countries in which our operations are located, competition and the cost of raw materials, especially copper, which accounted for the majority of our cost of sales in 2019 and 2018.

In order to minimize the impact of copper price fluctuations, we attempt to “peg” the prices of our products to the prevailing market price of copper and pass changes in the cost of copper through to customers as much as possible.  In certain circumstances, however, we remain affected by fluctuations in the price of copper.  A recent rise or decline in copper prices may not be fully reflected under this pricing scheme for several months.

Average copper prices per metric ton decreased by 7.97% from $6,525 in 2018 to $6,005 in 2019 (annual average).  

Copper prices indicated in this report are quoted from the index published by the LME.  The 2019 and 2018 copper prices were as follows:

		2019		2018
Average LME copper price ($/Ton)	Q1		6,220		6,959
	Q2		6,114		6,872
	Q3		5,798		6,103
	Q4		5,888		6,168
	Year		6,005		6,525

The average copper price in March 2020 on the LME was $5,179 per metric ton.

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Revenue

Total sales in the North Asia region decreased by $27.1 million, or 26.1%, from $103.6 million in 2018 to $76.6 million in 2019.  The decrease was attributable primarily due to the negative impact of the trade war between the United States and China.

Revenue from the Thailand region decreased by $41.0 million, or 19.2%, from $213.4 million in 2018 to $172.4 million in 2019.  The decrease was primarily due to the postponement of the delivery of products per the request of a major client.

Revenue decreased by $19.7 million, or 18.1%, from $108.9 million in 2018 to $89.2 million in 2019 in the ROW region. The decrease was primarily due to intense competition.

Gross Profit

While fluctuations in raw material acquisition are preferably placed upon the customer, limiting factors reduced the effects of this strategy and impacted Gross Profit. A decrease in average copper prices per metric ton of 7.97% plus the intense competition and market slowdown primarily due to the trade war between USA and China all led to the material change in Gross Profit of (31.6%) for 2019.

Operating (Loss)

Operating (loss) for 2019 was $(0.6) million, representing a decrease by $9.3 million, or (107.5)% from operating profit $8.7 million in 2018.

The operating profit margin of the North Asia region decreased from 5.05% in 2018 to 1.69% in 2019. The decrease was attributable primarily toa decrease in sales volume, which eroded the profit margin, and an increase in severance payments due to the restructure of Shanghai Yayang.

The operating profit margin of the Thailand region decreased from 4.47% in 2018 to 1.76% in 2019. The decrease was attributable primarily to the decrease in sales of higher margin products.

The operating loss margin of the ROW region decreased from (2.12)% in 2018 to (1.86)% in 2019. The decrease was attributable primarily to a decrease in selling price, margin erosion because of competition, as well as higher unit costs.

Finance Cost

Our finance cost consists of interest on bank loans and borrowings.  Interest cost decreased to $1.0 million in 2019 compared to $1.4 million in 2018. However, interest-bearing loans and borrowings decreased to $11.3 million in 2019 compared to $24.8 million in 2018 due to loan repayments made in 2019.

Finance Income

The finance income consists of interest earned on bank deposits.  Interest income remained consistent from $0.5 million in 2018 to $0.5 million in 2019.

Share of Loss of Associates

The share of loss remained consistent in 2019 compared to that of 2018. This was primarily due to the loss that the Company recognized in accordance with its percentage ownership interest in Siam Pacific Holding Company.

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Exchange Gain/(Loss)

The exchange gain of 2019 was primarily contributed by the appreciation of Thai Baht. The exchange rates at December 31, 2019 and 2018 are listed below, based on the Noon Buying Rate.  However, they do not actually reflect the ongoing rates during the year when transactions actually took place.

	As of December 31,
	2019		2018
Foreign currency to US$1:
Thai Baht		29.75		32.31
Singapore $		1.345		1.362
Australian $		1.423		1.419
Chinese RMB		6.962		6.876

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

Income taxes

Income tax expense was $2.1 million in 2019 compared to $3.9 million in 2018. The change was mainly due to the decrease of taxable income.

5.3.2 Year Ended December 31, 2018 Compared with Year Ended December 31, 2017

	For the Year Ended December 31,
	2018			2017			Changes in $			Changes in %
	(in thousands)
Income Statement Data:
Revenue	$	425,940		$	425,215			725			0.2
Costs of sales		(389,692	)		(385,527	)		(4,165	)		(1.1	)
Gross profit		36,248			39,688			(3,440	)		(8.7	)
Other operating income		805			5,084			(4,279	)		(84.2	)
Selling, general & administrative expenses		(26,924	)		(27,248	)		324			1.2
Other operating expenses		(1,445	)		(909	)		(536	)		(59.0	)
Operating profit		8,684			16,615			(7,931	)		(47.7	)
Finance costs		(1,378	)		(1,221	)		(157	)		(12.9	)
Finance income		482			876			(394	)		(45.0	)
Share of loss of associates		(3	)		(3	)		—			—
Loss on liquidation of a subsidiary		—			(261	)		261			100.0
Exchange gain/(loss)		1,741			2,784			(1,043	)		(37.5	)
Other income		1,817			214			1,603			749.1
Other expense		(11	)		(336	)		325			96.7
Profit before tax		11,332			18,668			(7,336	)		(39.3	)
Income taxes expense		(3,886	)		(5,140	)		1,254			24.4
Profit for the year	$	7,446		$	13,528			(6,082	)		(45.0	)
Profit attributable to APWC		2,928			8,720			(5,792	)		(66.4	)
Profit attributable to non-controlling interests		4,518			4,808			(290	)		(6.0	)

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General

Results of operations are determined primarily by market demand and government infrastructure projects, market selling prices of our products, our ability to manufacture high quality products efficiently in quantities sufficient to meet demand and to control production and operating costs. Our results are also influenced by a number of factors, including currency stability in the countries in which our operations are located, competition and the cost of raw materials, especially copper, which accounted for the majority of our cost of sales in 2018 and 2017.

In order to minimize the impact of copper price fluctuations, we attempt to “peg” the prices of our products to the prevailing market price of copper and pass changes in the cost of copper through to customers as much as possible. In certain circumstances, however, we remain affected by fluctuations in the price of copper. A recent rise or decline in copper prices may not be fully reflected under this pricing scheme for several months.

Average copper prices per metric ton increased by 5.87% from $6,163 in 2017 to $6,525 in 2018 (annual average).

Copper prices indicated in this report are quoted from the LME index. The 2018 and 2017 copper prices were as follows:

		2018		2017
Average LME copper price ($/Ton)	Q1		6,959		5,834
	Q2		6,872		5,663
	Q3		6,103		6,347
	Q4		6,168		6,808
	Year		6,525		6,163

The average copper price in March 2019 on the LME was $6,451 per metric ton.

Revenue

Total sales in the North Asia region slightly increased by $2.1 million, or 2.1%, from $101.5 million in 2017 to $103.6 million in 2018.  The increase was attributable primarily to an increase in copper price.

Revenue from the Thailand region slightly increased by $6.9 million from $206.5 million in 2017 to $213.4 million in 2018, or 3.4%.  The increase was primarily because the appreciation of the Baht against the US dollar.

Revenue decreased by $8.3 million, or 7.1%, from $117.2 million in 2017 to $108.9 million in 2018 in the ROW region. While increased product sales in APEC led to increased revenue of 7.7%, intense competition from Chinese imports decreased the revenue of Sigma Cable by 13.4%.

Gross Profit

While fluctuations in raw material acquisition are preferably placed upon the customer, limiting factors reduced the effects of this strategy and impacted Gross Profit. An increase in average copper prices per metric ton of 5.87% caused Revenue to experience an increase of 0.2%. However, strong competition limited pricing flexibility as a mitigation measure for the copper price increase and the Company experienced an increased Cost of sales of (1.1%). The increases in both Revenue and Cost of sales led to the material change in Gross Profit of (8.7%) for 2018.

Operating Profit

Operating profit for 2018 was $8.7 million, representing a decrease by $7.9 million, or (47.7)% from $16.6 million in 2017.

The operating profit margin of the North Asia region increased from 3.21% in 2017 to 5.05% in 2018. The increase was attributable primarily to the decrease in the costs and expenses related to NPC.

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The operating profit margin of the Thailand region slightly decreased from 5.35% in 2017 to 4.47% in 2018. The decrease was attributable primarily to the increase in sales of lower margin products, decrease in sales of higher margin products and increase in payroll expenses.

The operating profit margin of the ROW region decreased from 1.03% in 2017 to operating loss (2.12)% in 2018. The decrease was attributable primarily to the decrease in revenue.

Finance Cost

Our finance cost consists of interest on bank loans and borrowings.  Interest cost increased to $1.4 million in 2018 compared to $1.2 million in 2017. However, interest-bearing loans and borrowings decreased to $24.8 million in 2018 compared to $41.1 million in 2017 due to the extinguishment of current liabilities at year end of 2018.

Finance Income

The finance income consists of interest earned on bank deposits.  Interest income decreased by $0.4 million, or 45.0%, from $0.9 million in 2017 to $0.5 million in 2018.

Share of Loss of Associates

The share of loss of an associate remained the same in 2018 compared to that of 2017. This was primarily due to the loss that the Company recognized in accordance with its percentage ownership interest in SPHC.

Loss on liquidation of subsidiaries

The Company incurred a total write-off of its interest in Sigma Epan, which amounted to $0.3 million during 2017 due to the strike-off of Sigma Epan Industry.

Exchange Gain/(Loss)

The exchange rates at December 31, 2018 and 2017 are listed below, based on the Noon Buying Rate.  However, they do not actually reflect the ongoing rates during the year when transactions actually took place.

	As of December 31,
	2018		2017
Foreign currency to US$1:
Thai Baht		32.31		32.56
Singapore $		1.362		1.336
Australian $		1.419		1.280
Chinese RMB		6.876		6.506

Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal Reserve Statistical Release H.10, from the website of the Board of Governors of the Federal Reserve System at http://www.federalreserve.gov.

Income taxes

Income tax expense was $3.9 million in 2018 compared to $5.1 million in 2017. The change was mainly due to the decrease of the income before income tax.

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5.4 Liquidity and Capital Resources

As of December 31, 2019, we had $53.7 million in cash and cash equivalents, primarily in bank accounts and cash on hand. Our current sources of cash are our cash on hand, cash generated by our operations and our credit facilities. Our liquidity is primarily utilized for the purchase and replacement of property, plant and equipment, future acquisitions and expenditures for ongoing operations.

We maintain several working capital and overdraft credit facilities with various commercial bank groups and financial institutions. Under our line of credit arrangements for short-term debt with our banks, we may borrow up to approximately $287.0 million, including letters of credit for commodity purchases, on such terms as we and the banks mutually agreed upon. These arrangements do not have termination dates but are reviewed annually for renewal. As of December 31, 2019, the unused portion of the credit lines was approximately $207.9 million. Letters of credit are issued on our behalf in the ordinary course of business by our banks as required by certain supplier contracts. As of December 31, 2019, the Company had obligations in respect of amounts callable under issued, but undrawn, letters of credit totaling $15.2 million. Liabilities relating to the letters of credit are included in current liabilities. There is no seasonality to the Company’s borrowing.

We have no direct business operations other than our ownership of the capital stock of our subsidiaries and equity investees. As a holding company, the Company’s ability to pay dividends, as well as to meet its other obligations, depends upon the amount of distributions, if any, received from the Company’s operating subsidiaries and other holdings and investments. Consequently, our subsidiaries have been and will continue to be our primary source of funds. Of the $53.7 million in cash and cash equivalents that we had on hand as of December 31, 201, $1.3 million was held at the holding company, and the remainder was held by subsidiaries. All of the approximately $287.0 million of our credit lines are at the subsidiary level; the holding company does not have any credit lines. Corporate needs (including holding company needs) are funded primarily by distributions from our subsidiaries. We rely upon distributions of dividends from our subsidiaries in order to pay dividends declared by our Board of Directors.  Our operating subsidiaries and other holdings and investments, from time to time, may be subject to restrictions on their ability to make distributions to us, including, but not limited to, as a result of restrictive covenants contained in our loan agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other currency, and other regulatory restrictions. For example, PRC legal restrictions permit payments of dividends by our business entities in the PRC only out of their retained earnings, if any, determined in accordance with relevant PRC accounting standards and regulations. Under PRC law, such entities are also required to set aside a portion of their net income each year to fund certain reserve funds. These reserves are not distributable as cash dividends. The foregoing restrictions may also affect our ability to fund operations of one subsidiary with dividends and other payments received from another subsidiary.  Distributions may also be limited from time to time by reason of restrictions protective of the rights of minority shareholders of our subsidiaries and by reason of the current cash requirements of the operating subsidiaries. Consequently, we periodically need to manage our corporate cash needs to align with the permitted timing of distributions.

Net cash provided by operating activities in the year ended December 31, 2019 was $15.1 million, as compared to $40.6 million of net cash provided in operating activities in the year ended December 31, 2018. The decrease in cash generated from operations was primarily due to decrease in sales.

Net cash provided by operating activities in the year ended December 31, 2018 was $40.6 million, as compared to $16.9 million of net cash used in operating activities in the year ended December 31, 2017. The increase in cash generated from operations was primarily due to decrease in inventory and accounts receivable, which was related to the increased revenue in late 2018.

Days of sales outstanding (“DSO”) is a measure of the average collection period of accounts receivable, and although the calculation is influenced by the period used and the timing of sales within that period, it can provide insight into the variances in collections from period to period. Our days of sales outstanding for 2019 was 83 days, as compared to 82 days for 2018. We have in place policies across the Company that emphasize the importance of continuous focus on collection efforts.

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In 2019, cash used in investing activities was $6.4 million compared to $4.8 million used in investing activities in 2018. The increase in net cash used in investing activities was primarily attributable to increased purchase in property, plant and equipment.

In 2018, cash used in investing activities was $4.8 million compared to $3.4 million provided by investing activities in 2017. The decrease in net cash provided by investing activities was primarily attributable to the proceeds from disposal of equipment of our Ningbo Pacific Cable Co. Ltd. subsidiary (“NPC”) in 2017.

Net cash used in financing activities was $17.9 million in 2019.  In 2019, net cash used in financing activities reflected primarily the repayment of borrowings.

Net cash used in financing activities was $19.6 million in 2018.  In 2018, net cash used in financing activities reflected primarily the repayment of borrowings.

We believe funds generated by our operating activities, our cash on hand and amounts available to us under our credit facilities will provide adequate cash to fund our requirements through at least the next twelve months. We believe that we have sufficient liquidity to meet our anticipated working capital, capital expenditures, general corporate requirements, and other short-term and long-term obligations as they come due. We may enhance our liquidity by way of one or more debt and/or equity financings (including by engaging in debt and/or equity financings with our principal shareholder).

5.5 Research and Development

The Company does not currently engage in its own research and development. Under the Composite Services Agreement with PEWC described herein, the Company benefits from research and development conducted by PEWC at little or no cost to the Company. Accordingly, the Company has not made material expenditures on or commitments to research and development since formation.

5.6 Trend Information

We are not aware of any trend, commitment, event or uncertainty that can reasonably be expected to have a material effect on our current or future business other than the following, each of which has materially impacted our financial results in the past and may do so in the future:

• Uncertainty arising from the volatility in the cost of copper, our principal raw material.  In 2019, the copper price went down from $6,525 (yearly average for 2018) per metric ton to $6,005 per metric ton (yearly average for 2019). Under our business model, the Company, like other companies in the industry, remains subject to movements in the price of copper, our principal raw material.

• Fluctuations in the demand for our products in the markets in which we do business, based upon variations in the level of governmental and private investments in communications, power and industrial projects and programs that utilize our products.  We are not an end-user of our products and, therefore, we depend upon the requirements of our customers to generate sales.

See “Quantitative and Qualitative Disclosures About Market Risks.”

5.7 Off-Balance Sheet Arrangements

The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative instruments, or other contingent arrangements that expose the Company to material continuing risks, contingent liabilities, or any other obligation in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support to the Company.

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5.8 Contractual Obligations

The following table sets forth the Company’s contractual obligations as of December 31, 2019:

	Payments due by period
Contractual obligations (In thousands of US$)	Total		Less than 1 year		1-5 years		More than 5 years
Bank loans and overdrafts	$	11,356		11,356		—		—
Lease obligations (principal amount only)		2,828		574		1,169		1,085
Finance charges on lease obligations		364		82		185		97
Operating lease obligations		12		11		1		—
Capital commitment relating to installation of equipment and acquisition of machinery		5,817		5,817		—		—
Capital commitment relating to repair and maintenance consulting service		348		348		—		—
Purchase obligations for copper cathodes		290,371		290,371		—		—
	$	311,096		308,559		1,355		1,182

The contractual obligation for the purchase of copper cathodes disclosed in the table above reflects the minimum purchase commitment. For more details on financial commitments and contingencies, please refer to our audited consolidated financial statements and the notes thereto referenced in Item 18: “Financial Statements”.

5.9 Safe Harbor

Please see the section of this report entitled “Cautionary Statement Regarding Forward-Looking Statements”

ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6.1 Directors and Senior Management

There is only one class of directorships and no one or more directors possess any veto power over matters presented to the Board or any other special or enhanced voting rights. The Bye-Laws provide that a quorum consists of a majority of the directors then in office. As of December 31, 2019, there were a total of nine (9) directors on the Board, including three independent directors, Mr. Anson Chan, Dr. Yichin Lee, and Dr. Lambert Ding. By a resolution passed at the Company’s most recent annual general meeting of shareholders (the “2019 AGM”) held on August 30, 2019, the shareholders determined that the minimum number of directors shall be fixed at two (2) and the maximum number of directors be fixed at nine (9). Each director is entitled to one vote, and approval of any matter requires a simple majority assuming a quorum is present. The following table sets forth certain information concerning the current directors and certain other officers of the Company. All directors are subject to annual election by the shareholders of the Company. Each of the directors was reelected at the Company’s 2019 AGM. Officers generally hold office for such period and upon such terms as the Board may determine.

Name	Date of Birth	Position
Ocorian Services (Bermuda) Limited.	N/A	Assistant Resident Secretary
Anson Chan	November 3, 1963	Independent director, Audit Committee Chairman
Andy C.C. Cheng	April 29, 1958	Director and Non-Executive Chairman of the Board
Fang Hsiung Cheng	May 31, 1942	Director
Daphne Hsu	August 12, 1962	Financial Controller
Lambert L. Ding	October 12, 1959	Independent director, Audit Committee Member
Michael C. Lee	September 28, 1951	Director
Yichin Lee	January 4, 1961	Independent director, Audit Committee Member
Alex Chen	December 30, 1957	Director
David Sun	December 22, 1953	Director

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Yuan Chun Tang	November 26, 1960	Director, Chief Executive Officer
William Gong Wei	October 31, 1961	Chief Operating Officer
Ivan Hsia	August 14, 1973	Chief Financial Officer

Certain officers and directors of the Company are or were also officers or directors of PEWC and/or PEWC affiliates, as described below. A brief professional summary for each member of the Board of Directors and senior management is as follows:

Mr. Anson Chan has been an independent member of the Company’s Board of Directors and a member and Chairman of the Audit Committee and compensation committee since 2007. Mr. Chan is also a Managing Director of the Bonds Group of Companies and was a Senior Advisor to Elliott Associates from 2005 to 2008.

Mr. Andy C.C. Cheng was a member of the Company’s Board of Directors from 2004 to 2005 and was re-elected in 2007. Mr. Cheng was appointed as Chairman of the Board in 2009. From 1987 to 2003, Mr. Cheng served as Vice President in charge of procurement at PEWC. Mr. Cheng has been an Executive Vice President at PEWC since 2004 and Chairman of each of the investment divisions of PEWC, Tai Ho Investment Co., Ltd. and You Chi Investment Co., Ltd., since June 2008. Mr. Andy C.C. Cheng is not related to Mr. Fang Hsiung Cheng. Mr. Cheng currently is also a member of PEWC’s Board of Directors.

Mr. Fang Hsiung Cheng has been a member of the Company’s Board of Directors since 2006.  He also serves as Assistant Vice President of PEWC. Mr. Fang Hsiung Cheng is not related to Mr. Andy C.C. Cheng.

Ms. Daphne Hsu has been Financial Controller of the Company since March 2005, prior to which she served as Financial Controller for ten years in Taiwan and China at a Thomson SA joint venture.

Dr. Lambert Ding was appointed March 17, 2011 as an independent member of the Board of Directors. Dr. Ding is the president and CEO of Union Environmental Engineering Services and before that, he was an associate professor at Yuan Ze University. Dr. Ding holds a Doctor of Philosophy degree from the University of Southern California, awarded in 1989. He is also a Registered Environment Assessor and holds several patents. Dr. Ding serves as a member of the audit committee and compensation committee.

Mr. Michael C. Lee has been a member of the Company’s Board of Directors since 2004 and is also Chief Executive Officer of PEWC and Chairman of Pacific USA Holdings, Ltd. Mr. Michael C. Lee is not related to Dr. Yichin Lee.Mr. Lee currently is also a member of PEWC’s Board of Directors.

Dr. Yichin Lee has been an independent member of the Company’s Board of Directors and served on the Audit Committee since 2007. He is also a member of the compensation committee. Dr. Lee is the Managing Director of FCC partners. Dr. Yichin Lee holds a doctorate degree in Resource Planning and Management from Stanford University. Dr. Yichin Lee is not related to Mr. Michael C. Lee.

Mr. Alex Chen has been a member of the Company’s Board of Directors since 2015. He also served as Chief Marketing Officer of APWC from July 1, 2015 until December 31, 2019. Mr. Chen was first assigned to PEWC as Engineer, Assistant to General Manager, and later Manager of Quality Assurance Department from 1983 to 2008. He was appointed as Managing Director of Siam Pacific Electric Wire & Cable Co. Ltd. in Thailand from 2008 to 2015. Mr. Chen also serves as Vice President and General Division Manager of the General Sales Division of PEWC, and as a Director of the Taiwan Electric Research & Testing Center.

Mr. David Sun has been a member of the Company’s Board of Directors since 2007. He also serves as President of PEWC and Managing Director of Charoong Thai Wire and Cable Public Company Limited.

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Mr. Yuan Chun Tang has been a member of the Company’s Board of Directors since 2004 and Chief Executive Officer since 2005. Mr. Yuan served as the Company’s Chairman from 2005 to 2009. He has also served as Chairman of PEWC since 2004 and has been the Director of Pacific Construction Corp. Ltd since 2002. Mr. Yuan served as the Director of the Taiwan Co-generation Corp. from 2005 to 2008. Mr. Yuan has also been the Chairman of the Taiwan Electric Wire & Cable Industries Association since 2004. He has served as the Supervisor to the Taipei Importers/Exporters Association as well as the Director of Chinese National Federation of Industries in Taiwan since 1998 and 2004, respectively.

Mr. William Gong Wei was appointed Chief Operating Officer effective April 1, 2013. He was first assigned to Charoong Thai Wire and Cable Pte. Co. Ltd. as Engineer, Assistant Plant Manager, and later consultant to the high voltage cable division from 1991 to 2000. Thereafter, Mr. Gong Wei left Charoong Thai to pursue other professional activities until he rejoined the Company in 2009. In April 2009 he was appointed as General Manager of Sigma Cable in Singapore. Mr. Gong Wei holds a master’s degree from the Asian Institute of Technology in Bangkok, Thailand.

Mr. Ivan Hsia was appointed as Chief Financial Officer effective August 1, 2013. Mr. Hsia previously served as the Deputy CFO of the Company. Prior to that, he served as the Senior Internal Audit Manager of the Company. Before joining APWC, Mr. Hsia was the head of internal audit at Newegg.com in Los Angeles, CA, USA.

The Company’s Common Shares currently trade on the Global Markets tier of Nasdaq. Notwithstanding that, the Board of Directors is not composed of a majority of independent directors. The Company is relying upon the “controlled company exemption” that is available to issuers under the rules of Nasdaq. In effect, the “controlled company exemption” provides that an issuer is not required to have its Board of Directors consist of a majority of independent directors if a shareholder, or two or more shareholders who constitute a group, have beneficial ownership of more than 50% of the issued and outstanding voting securities of the issuer. PEWC owns and controls, directly or indirectly, 75.4% of the issued and outstanding Common Shares of the Company.

No service contract exists between any officers or directors sitting on the Board and the Company or any of its subsidiaries providing for benefits upon termination of employment.

The Company has no arrangements or understandings with any major shareholders, customers, suppliers or others, pursuant to which any person referred to above was selected as a director or member of senior management.

6.2 Audit Committee

The Audit Committee of the Board of Directors primarily functions to assist the Board in its oversight of: (i) the reliability and integrity of accounting policies and financial reporting and disclosure practices and (ii) the establishment and maintenance of processes to ensure that there is compliance with all applicable laws, regulations and company policy and an adequate system of internal control, management of business risks and safeguard of assets.

The Audit Committee is composed of Mr. Anson Chan, Dr. Yichin Lee and Dr. Lambert Ding, with Mr. Chan serving as the chairman of the Audit Committee.

The Audit Committee, as currently constituted, complies with the requirements of Regulation 10A-3 of the Exchange Act and the corporate governance requirements of Nasdaq.

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6.3 Compensation Committee

The Compensation Committee primarily functions to assist the Company in determining the compensation to be paid to the executive directors and certain members of the senior management of the Company. According to the charter under which it operates, the Compensation Committee is authorized to: (i) review and recommend to the Board, or determine, the annual salary, bonus, stock options, and other benefits, direct and indirect, of the senior management of the Company and its principal operating subsidiaries; (ii) review new executive compensation programs, review on a periodic basis the operations of the Company’s executive compensation programs to determine whether they are properly coordinated, establish and periodically review policies for the administration of executive compensation programs, and take steps to modify any executive compensation programs that yield payments and benefits that are not reasonably related to executive performance; (iii) engage outside auditors and consultants to advise on market compensation; and (iv) establish and periodically review policies in the area of management perquisites.

The Compensation Committee is comprised of three independent directors, Mr. Anson Chan, Dr. Yichin Lee, and Dr. Lambert Ding. In addition, Mr. Andy Cheng and Mr. Yuan Chun Tang, the Company’s Chairman and Chief Executive Officer, respectively, serve in a non-voting advisory capacity to the Compensation Committee.

6.4 Compensation

The aggregate amount of compensation paid by the Company to all of the Company’s directors and executive officers, as a group, for services in all capacities during 2019 was approximately $1.7 million. As of March 31, 2020, our directors and executive officers beneficially owned approximately 101,000 Common Shares representing approximately 0.7% of the issued and outstanding Common Shares. The annual compensation of its executive officers and directors on an individual basis is not a disclosure item under the laws and regulations applicable to the Company.

In 2019, the fee payable to each independent director was $30,000 per year, together with, in each case, reimbursement of reasonable travel expenses for attendance at meetings of the Board of Directors or any of its committees. Director fees of 2019 for six directors who held positions at PEWC group this year was rescinded.

No funds or provisions have been set aside for providing compensation to directors or management except for government mandated programs.

6.5 Employees

The Company employed a total of 1,227 employees as of December 31, 2019, of which about 14.2% were administrative and management personnel.  Approximately 65.7% of employees were located in the Thailand region, 18.3% in the North Asia region and 16.0% in the ROW region. Production workers are usually organized into two 12-hour shifts or three 8-hour shifts to allow continuous factory operations.

The Company offers a range of employee benefits, which it believes are comparable to industry practice in its local markets. Such benefits include performance-based pay incentives, medical benefits, vacation, pension, housing for a small number of workers in Singapore and in Thailand, and a small housing supplement to other workers. The Company also provides training programs for its personnel designated to improve worker productivity and occupational safety.

Presently, there is no group bonus, profit-sharing or stock option plan. However, some of the Company’s subsidiaries have bonus or profit-sharing plans based on individual performance and the profitability of the particular subsidiary for the fiscal year, which plans are generally in accordance with the industry practice and market conditions in the respective countries.

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The Company has several defined benefit and defined contribution plans covering its employees in Thailand, Australia, the PRC and Singapore. Additionally, the Company has as defined benefit plan in accordance with Thailand labor law. In its Thai subsidiaries, the Company also pay a retiring employee from one to twenty-six times such employee’s salary rate during his or her final month, depending on the length of service. During 2019, the Company’s total expenses under this labor law were $0.9 million. These plans are not funded and the amount is recognized and included in Employee Benefit Liabilities in the Company’s balance sheet. The Company settles it obligations as and when employees retire. The accumulated benefit obligations under this plan amounted to $11.7 million as at December 31, 2019.

Approximately 19% of the employees of Sigma Cable are members of the United Workers of Electronics & Electrical Industries, an employees’ union in Singapore. Under the terms of a collective agreement signed in June 2003, the Company is required to negotiate salary and wage increases yearly. All other worker benefits and employment terms are included in the collective agreement. The Company believes that approximately 100% and 90.63% of the employees of PEWS and Shanghai Yayang, respectively, are members of their respective Company Workers’ Unions. These unions generally operate in accordance with related labor regulations in China. Approximately 15% of the employees of APEC are members of the Australian Workers’ Union. None of the employees of the other operating subsidiaries of the Company are members of a union.

The Company has never experienced a strike or other disruption due to labor disputes. The Company considers its employee relations to be satisfactory and has not experienced difficulties attracting and retaining qualified employees.

ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

7.1 Major Shareholders

A total of 11,100 Common Shares are now issued but not outstanding and are booked as treasury shares. On August 21, 2015, PEWC and Moon View Ventures Limited, a BVI company and wholly-owned subsidiary of PEWC, acquired 1,355,415 Common Shares that were held indirectly by a private equity investor group. In connection with the sale of those Common Shares, the parties terminated an Amended and Restated Shareholders’ Agreement, which termination benefited the Company by reason of the elimination of certain U.S. tax indemnification obligations of the Company (and PEWC) in favor of the private equity investor, and the termination of the Company’s obligation to maintain effective a shelf registration statement on Form F-3, covering the Common Shares held by the private equity investor. As a result of that transaction, PEWC held, and it continues to hold, approximately 75.4% of the issued and outstanding Common Shares. The remaining approximately 24.6% of the issued and outstanding Common Shares are presently publicly traded in the U.S. and are currently listed on the Nasdaq Global Markets tier under the trading symbol “APWC”.

The following table sets forth certain information regarding beneficial ownership of the Company’s Common Shares as of March 31, 2020 by (i) all persons who are known to the Company to own beneficially more than five percent of the Common Shares of the Company and (ii) the officers and directors of the Company as a group. The information set forth in the following table is derived from public filings made by holders and information obtained from directors and officers. The voting rights attaching to the Common Shares below are the same as those attaching to all other Common Shares.

Identity of Person or Group	Numberof Shares		Percent of Class
Pacific Electric Wire & Cable Co., Ltd.(1)		10,430,769		75.417	%
LONSIN Capital Limited		714,170		5.170	%
Directors and Officers of the Company		98,954		0.716	%

⁽¹⁾ PEWC owns 1,410,739 shares directly and owns its remaining shares indirectly, as a result of PEWC’s control of its direct wholly-owned subsidiary, Moon View Ventures Limited, a BVI company, which beneficially owns 7,661,235 Common Shares, and as a result of PEWC’s control of its indirect wholly-owned subsidiary, Pacific Holdings Group, a Nevada corporation, which beneficially owns 1,358,795 Common Shares.

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The Company has 6,166,154 Common Shares that were registered, of which 3,388,900 Common Shares are publicly-traded on the Nasdaq Global Market tier, which represents approximately 24.6% of the issued and outstanding Common Shares. With regard to the remaining 2,777,254 such Common Shares, 2,766,154 Common Shares are held by PEWC and its subsidiaries, and 11,100 Common Shares are held by the Company in treasury, and all of those shares are subject to trading restrictions under Rule 144 promulgated under the U.S. Securities Act of 1933. Other than (i) the approximately 98,954 Common Shares held by directors or officers who are not resident in the United States, (ii) the 2,766,154 registered securities held indirectly by PEWC and (iii) the 714,170 Common Shares reported to be held beneficially by Lonsin Capital Limited, a company organized under the laws of the United Kingdom (“Lonsin”), and by two of its managers who reportedly control managed accounts of customers of Lonsin, the Company believes that substantially all of its registered securities are held by U.S. residents (other than the 11,100 Common Shares held by the Company in treasury). The Company has no means to definitively confirm that belief, which is based upon a review of the share registers maintained by the Company’s Bermuda transfer agent and U.S. transfer agent and the addresses provided by the record holders. Based upon a review of the records of the Company’s U.S. transfer agent, including a list of non-objecting beneficial holders (“NOBOs”), the Company believes there are substantially more than 400 beneficial holders that are resident in the United States, although that constitutes only the Company’s best estimate of the number of U.S. beneficial holders.

7.2 Related Party Transactions

The Company incurs ordinary course trade payables with PEWC in connection with copper purchases under the Composite Services Agreement and the sale by the Company of Distributed Products that are manufactured by PEWC.

As of December 31, 2019 the Company, including its subsidiaries, had a net principal balance outstanding of $1.9million borrowed from PEWC and subsidiaries of PEWC. This short-term indebtedness is payable on a demand basis and does not accrue interest.

The Company used the proceeds from each of the related party loans described above for working capital and purchases of capital equipment. The terms of borrowing by APWC or any of its subsidiaries from PEWC are on terms at least as favorable than terms available in arms-length transactions with unaffiliated parties.

Under the terms of the Composite Services Agreement, APWC pays a management fee to PEWC in connection with the secondment, or temporary assignment and relocation, of certain PEWC managers to APWC facilities in Thailand and China. The assigned managers assist APWC in implementing the results of certain research and development conducted by PEWC and made available by PEWC to the Company under the terms of the Composite Services Agreement. The assigned managers also assist APWC in the procurement of raw materials, primarily copper, which is also provided for under the Composite Services Agreement. The amount of such annual management fee was approximately $199 thousand in 2019.

From time to time we have engaged in a variety of transactions with our affiliates. We generally conduct transactions with our affiliates on an arm’s-length basis. The sales and purchase prices with related parties are determined through negotiation, generally based on the quoted copper price on the LME plus a certain premium.

Additional details regarding related party balances as of December 31, 2019 and related party transactions, including copper purchases from PEWC, are disclosed in our audited consolidated financial statements referenced in Item 18: Financial Statements. Please refer to Note 24 of our consolidated financial statements presented herewith.

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ITEM 8: FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

8.1 Consolidated Statements

See Item 18: Financial Statements

8.2 Legal Proceedings

There are currently no material proceedings in which any director, senior manager, or affiliate is adverse to the Company or has an adverse material interest. There are no actual or pending legal proceedings to which the Company is, or is likely to become, a party which may reasonably be expected to have, or have had in the recent past, a material effect on the Company’s condition (financial or otherwise) or results of operations.

8.3 Dividend Policy

In November 2016, the Company announced that its Board of Directors had approved the implementation of a dividend policy as part of the Company's ongoing commitment to increasing shareholder value and return on investment. The goal of the dividend policy is to pay cash dividends of at least 25% of the Company's net post-tax audited consolidated profits attributable to shareholders to be paid on an annual basis in cash, if and when available for distribution. In accordance with its dividend policy, on November 30, 2018, the Company paid a cash dividend to shareholders of record as of September 14, 2018 in the amount of $0.08 per Common Share. In December 2019, the Company’s Board of Directors determined not to pay a dividend for 2019 given that the Company had funding requirements and unsatisfied business performance.

As a holding company, the Company’s ability to pay dividends, as well as to meet its other obligations, depends upon the amount of distributions, if any, received from the Company’s operating subsidiaries and other holdings and investments. The Company’s operating subsidiaries and other holdings and investments, from time to time, may be subject to restrictions on their ability to make distributions to the Company. Those restrictions may also affect the Company’s ability to fund operations of one subsidiary with dividends and other payments received from another subsidiary.

In addition, the ability of the Company's operating subsidiaries to make distributions to APWC will depend upon a number of factors, including operating results, capital requirements, expansion plans, business prospects, obligations in respect of non-recurring items, debt covenants and other factors that may arise from time to time. The Company cannot provide any unconditional assurances to holders of Common Shares with regard to the Company's ability to pay further dividends in accordance with the Company's dividend policy.

B. Significant Changes

Please see Note 29 (Subsequent Events) to the consolidated financial statements referenced in Item 18 hereof for information on recent material events, which Note contains information regarding recent development in respect of the risk of the delisting of our Common Shares from Nasdaq and in respect of the material adverse effects of COVID-19 on the Company, its business, operations, financial condition, employees and customers. There have been no material or significant changes in the Company’s affairs since the end of the fiscal year ended December 31, 2019 that have not been described herein or in such Note 29.

ITEM 9: THE OFFER AND LISTING

9.1 Markets

The Company’s Common Shares currently trade on Nasdaq Global Markets tier under the symbol “APWC”. The Common Shares are not listed on any other exchanges or otherwise publicly traded within or outside the United States.

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ITEM 10: ADDITIONAL INFORMATION

10.1 Share Capital

As of December 31, 2019, and as of the date of the filing of this Annual Report, there were and there are 13,830,769 Common Shares issued, with 13,819,669 Common Shares issued and outstanding and 11,100 Common Shares held in Treasury. No capital of the Company is under option or agreed conditionally or unconditionally to be put under option. The Company does not have any classes of capital stock other than its Common Shares.

10.2 Memorandum of Association and Bye-Laws

10.2.1 General

For a detailed description of the Company’s principal activities, see Section 4.1: “History and Development of the Business.” Pursuant to the Company’s Bye-Laws the Board of Directors consists of a single class of directors, each director has one vote on all matters put to the Board, and a quorum consists of a majority of the members of the Board of Directors then in office.

10.2.2 Description of Shareholder Rights Attaching to Our Common Shares

The Company was incorporated in Bermuda on September 19, 1996 under the Companies Act. The rights of our shareholders are governed by Bermuda law and our memorandum of association and Bye-Laws.

Our authorized share capital as of December 31, 2019 was $500,000 consisting of 50,000,000 Common Shares, par value $0.01 per share, of which, as of December 31, 2019, and as of the date of the filing of this Annual Report, there were and are 13,830,769 Common Shares issued of which 13,819,669 Common Shares are outstanding and eligible to vote. There are 11,100 Common Shares that are issued (but not outstanding and not currently eligible to vote) and held as treasury shares by the Company.

• Holders of the Common Shares have no preemptive, redemption, conversion or sinking fund rights.

• Holders of the Common Shares are entitled to one vote per share on all matters submitted to a poll vote of holders of Common Shares and do not have any cumulative voting rights.

• In the event of our liquidation, dissolution or winding-up and subject to any alternative resolution that may be pursued by our shareholders, the holders of Common Shares are entitled to share ratably in our assets, if any, remaining after the payment of all our debts and liabilities.

• Our outstanding Common Shares are fully paid and non-assessable.

• Additional authorized but unissued Common Shares, and issued shares held in treasury, may be issued or conveyed by the Board without the approval of the shareholders.

The holders of Common Shares will receive such dividends, if any, as may be declared by the Board of Directors out of funds legally available for such purposes. We may not declare or pay a dividend, or make a distribution out of contributed surplus, if there are reasonable grounds for believing that:

• we are, or after the payment would be, unable to pay our liabilities as they become due; or

• the realizable value of our assets after such payment or distribution would be less than the aggregate amount of our liabilities.

The following is a summary of provisions of Bermuda law and our organizational documents, including our memorandum of association and Bye-Laws. We refer you to our memorandum of association and our Bye-Laws, copies of which have been filed with the SEC. You are urged to read these documents in their entirety for a complete understanding of the terms thereof.

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10.2.3 Share Capital

Our authorized capital consists of one class of Common Shares. Under our Bye-Laws, our Board of Directors has the power to issue any authorized and unissued shares on such terms and conditions as it may determine. Any shares or class of shares may be issued with such preferred, deferred, qualified or other special rights or any restrictions with regard to such matters, whether in regard to dividend, voting, return of capital or otherwise, as we may from time to time by resolution of the shareholders prescribe, or in the absence of such shareholder direction, as the Board of Directors may determine. This provision in the Bye-Laws could be used to prevent a takeover attempt, or to make a takeover attempt prohibitively expensive, and thereby preclude shareholders from realizing a potential premium over the market value of their shares.

10.2.4 Voting Rights

Generally, under Bermuda law and our Bye-Laws, questions brought before a general meeting are decided by a simple majority vote of shareholders present or represented by proxy, with no provision for cumulative voting. Matters will be decided by votes cast by way of voting cards, proxy cards or a show of hands unless a poll is demanded.

If a poll is demanded, each shareholder who is entitled to vote and who is present in person or by proxy has one vote for each Common Share entitled to vote on such question. A poll may only be demanded under the Bye-Laws by:

• the chairman of the meeting;

• at least three shareholders present in person or represented by proxy;

• any shareholder or shareholders present in person or represented by proxy and holding between them not less than one-tenth of the total voting rights of all shareholders having voting rights; or

• a shareholder or shareholders present in person or represented by proxy holding Common Shares conferring the right to vote on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all Common Shares.

Unless the Board of Directors otherwise determines, no shareholder shall be entitled to vote at any general meeting unless all calls or other sums presently payable by that shareholder in respect of all shares held by such shareholder have been paid.

10.2.5 Dividend Rights

Under Bermuda law, a company may declare and pay dividends unless there are reasonable grounds for believing that the company is, or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of the company’s assets would thereby be less than its liabilities.

Under our Bye-Laws, the Board may from time to time declare dividends or distributions out of contributed surplus to be paid to the shareholders according to their rights and interests. With the sanction of a shareholders resolution, the Board of Directors may determine that any dividend may be paid by distribution of specific assets, including paid-up shares or debentures of any other company. The Board of Directors may also pay any fixed cash dividend which is payable on any of our Common Shares half-yearly or on other dates, whenever our position, in the opinion of the Board of Directors, justifies such payment.

Dividends, if any, on our Common Shares will be at the discretion of our Board of Directors, and will depend on our future operations and earnings, capital requirements, surplus and general financial condition as our Board of Directors may deem relevant.

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10.2.6 Purchases by the Company of its own Common Shares

Under Bermuda law and as authorized by the Company’s memorandum of association, we may purchase our own Common Shares out of the capital paid up on the Common Shares in question or out of funds that would otherwise be available for dividend or distribution or out of the proceeds of a fresh issue of Common Shares made for the purposes of the purchase. We may not purchase our Common Shares if, on the date on which the purchase is to be effected, there are reasonable grounds for believing that the Company is, or after the purchase would be, unable to pay its liabilities as they become due.

However, to the extent that any premium is payable on the purchase, the premium must be provided out of the funds of the Company that would otherwise be available for dividend or distribution or out of the Company’s share premium account.

10.2.7 Preemptive Rights

Our Bye-Laws generally do not provide the holders of our Common Shares preemptive rights in relation to any issues of Common Shares by us or any transfer of our shares.

10.2.8 Variation of Rights

We may issue more than one class of shares and more than one series of shares in each class. The rights attached to any class of shares may be altered or abrogated either:

• with the consent in writing of the holders of more than fifty percent of the issued shares of that class; or

• pursuant to a resolution of the holders of such shares.

The Bye-Laws provide that the necessary quorum shall be two or more shareholders present in person or by proxy holding a majority of shares of the relevant class in issue and entitled to vote. The Bye-Laws specify that the creation or issuance of shares ranking pari passu with existing shares will not, subject to any statement to the contrary in the terms of issuance of those shares or rights attached to those shares, vary the special rights attached to existing shares.

10.2.9 Transfer of Common Shares

Subject to the “Transfer Restrictions” section below, a shareholder may transfer title to all or any of his shares by completing an instrument of transfer in the usual common form or in such other form as the Board of Directors may approve. The form of transfer is required to be signed by or on behalf of the transferor and also the transferee where any share is not fully paid. The transferor shall be deemed to remain the holder of the shares until the name of the transferee is entered in the register of members of the Company.

10.2.10 Transfer Restrictions

The Board of Directors may, in its absolute discretion and without assigning any reason therefor, decline to register any transfer of any share which is not a fully paid share. The Board of Directors may also refuse to register an instrument of transfer of a share unless:

• the instrument of transfer is duly stamped, if required by law, and lodged with the Company;

• the instrument is accompanied by the relevant share certificate for the shares to which it relates, and such other evidence as the Board of Directors shall reasonably require to show the right of the transferor to make the transfer;

• the instrument of transfer is in respect of only one class of shares;

• where applicable, the permission of the Bermuda Monetary Authoritywith respect thereto has been obtained; and

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• subject to the Companies Act, the Bye-Laws and any directions of the Board of Directors from time to time in force, the secretary of the Company may exercise the powers and discretions of the Board of Directors with respect to: (i) the transfer of shares by a shareholder by way of an instrument of transfer in the usual common form and (ii) sending to a notice of refusal to register a transfer of shares where the Board of Directors declines to register such transfer, within three months after the date on which the instrument of transfer was lodged.

In accordance with the provisions of the Exchange Control Act 1972, as amended, and related regulations of Bermuda, the permission of the Bermuda Monetary Authority (the “BMA”) is required for all issuances and transfers of shares (which includes our Common Shares) of Bermuda companies to or from a non-resident of Bermuda for exchange control purposes, other than in cases where the BMA has granted a general permission. The BMA, in its notice to the public dated June 1, 2005, has granted a general permission for the issue and subsequent transfer of any securities of a Bermuda company from and/or to a non-resident of Bermuda for exchange control purposes for so long as any “Equity Securities” of the company (which include our Common Shares) are listed on an “Appointed Stock Exchange” (which would include Nasdaq). In granting the general permission the BMA accepts no responsibility for our financial soundness or the correctness of any of the statements made or opinions expressed herein.

Accordingly, our Common Shares benefit from a general permission for free transferability for all transfers between persons who are not resident in Bermuda for exchange control purposes, for as long as such Common Shares remain listed on an appointed stock exchange. In the event that our Common Shares are delisted from Nasdaq, it will be necessary to obtain the prior permission of the BMA to transfer such Common Shares to any transferee, subject to any applicable general permissions issued by the BMA.

10.2.11 Transmission of Shares

In the event of the death of a shareholder, the survivor or survivors, where the deceased shareholder was a joint holder, and the estate representative, where the deceased shareholder was sole holder, shall be the only persons recognized by us as having any title to the shares of the deceased. “Estate representative” means the person to whom probate or letters of administration has or have been granted in Bermuda, or failing any such person, such other person as the Board of Directors may in its absolute discretion determine to be the person recognized by us for this purpose.

10.2.12 Disclosure of Interests

Under the Companies Act, a director who has an interest in a material contract or a proposed material contract, or a 10% or more interest (directly or indirectly) in an entity that is interested in a contract or proposed contract or arrangement with us, is obligated to declare the nature of such interest at the first opportunity at a meeting of the Board of Directors, or by writing to the Board of Directors. If the director has complied with the relevant sections of the Companies Act and the Bye-Laws with respect to the disclosure of his interest, the director may vote at a meeting of the Board of Directors or a committee thereof on a contract, transaction or arrangement in which that director is interested, in which case his vote shall be counted and he shall be taken into account in ascertaining whether a quorum is present.

10.2.13 Rights in Liquidation

Under Bermuda law, in the event of liquidation or winding-up of a company, after satisfaction in full of all claims of creditors and subject to the preferential rights accorded to any series of preferred shares, the proceeds of such liquidation or winding-up are distributed among the holders of shares in accordance with a company’s bye-laws.

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Under our Bye-Laws, if we are wound up, the liquidator may, pursuant to a resolution of the shareholders and any approval required by the Companies Act, divide among the shareholders in cash or other assets the whole or part of our assets, whether such assets shall consist of property of the same kind or not, and may for such purposes set such values as such liquidator deems fair upon any property to be divided and may determine how such division shall be carried out as between the shareholders.

10.2.14 Meetings of Shareholders

Under Bermuda law, a company, unless it elects to dispense with the holding of annual general meetings, is required to convene at least one general meeting per calendar year. The directors of a company, notwithstanding anything in such company’s bye-laws, shall, on the requisition of the shareholders holding at the date of the deposit of the requisition not less than one-tenth of the paid-up capital of the company carrying the right of vote, duly convene a special general meeting. Our Bye-Laws provide that the Board of Directors may, whenever it thinks fit, convene a special general meeting.

Bermuda law requires that shareholders be given at least five days’ notice of a meeting of the Company. Our Bye-Laws extend this period to provide that not less than 20 days’ written notice of a general meeting must be given to those shareholders entitled to receive such notice. The accidental omission to give notice to or non-receipt of a notice of a meeting by any person does not invalidate the proceedings of a meeting.

Our Bye-Laws state that no business can be transacted at a general meeting unless a quorum of at least two shareholders representing a majority of the issued shares of the Company are present in person or by proxy and entitled to vote.

Under our Bye-Laws, notice to any shareholders may be delivered either personally or by sending it through the post, by airmail where applicable, in a pre-paid letter addressed to the shareholder at his address as appearing in the share register or by delivering it to, or leaving it at, such registered address. Any notice sent by post shall be deemed to have been served seven (7) days after dispatch. A notice of a general meeting is deemed to be duly given to the shareholder if it is sent to him by cable, telex or tele-copier or other mode of representing or reproducing words in a legible and non-transitory form and such notice shall be deemed to have been served twenty-four (24) hours after its dispatch.

10.2.15 Access to Books and Records and Dissemination of Information

Under Bermuda law, members of the general public have the right to inspect the public documents of a company available at the office of the Bermuda Registrar of Companies. These documents include the memorandum of association and any amendment to the memorandum of association.

Under Bermuda law, the minutes of shareholder meetings will be open for inspection by any shareholder or director without charge for not less than two hours during business hours each day, subject to any reasonable restrictions that we may impose. The shareholders shall be entitled to receive a copy of every balance sheet and statement of income and expenditure before a general meeting as required under the Bye-Laws.

Under our Bye-Laws, unless the Board otherwise determines, the register of shareholders of the Company is required to be open for inspection between 10:00 a.m. and 12:00 noon each working day without charge to members of the general public. A company is required to maintain its share register in Bermuda but may, subject to the provisions of the Companies Act, establish a branch register outside of Bermuda. We have established a branch register with our transfer agent, Computershare Limited, which is based in Jersey City, New Jersey.

Under Bermuda Law, a company is required to keep at its registered office a register of its directors and officers that is open for inspection for not less than two hours in each day by members of the public without charge. Under our Bye-Laws, the register of directors and officers is available for inspection by the public between 10:00 a.m. and 12:00 noon every working day.

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Bermuda law does not provide a general right for shareholders to inspect or obtain copies of any other corporate records, except for the Bye-Laws of the Company.

10.2.16 Election or Removal of Directors

The Bye-Laws provide that the number of directors will be such number, not less than two, as our shareholders by resolution may from time to time determine. A director will serve until re-elected or his successor is appointed at the next annual general meeting or his prior removal in the manner provided by the Companies Act or the Bye-Laws. There is no requirement under Bermuda law, the Company’s memorandum of association or its Bye-Laws that a majority of the Company’s directors be independent.

The Bye-Laws provide that each director shall have one vote on all matters presented to the Board for a vote. At the Annual General Meeting held on August 30, 2019, all nine directors then in office were re-elected.

The shareholders may by resolution determine that one or more vacancies in the Board of Directors shall be deemed casual vacancies for the purposes of the Bye-Laws. The Board, so long as a quorum of directors remains in office, shall have the power at any time and from time to time to appoint any individual to be a director so as to fill a casual vacancy. The shareholders may approve the appointment of alternate directors or may authorize the Board to appoint them. Directors may also appoint and remove their own alternates. At the Annual General Meeting held on August 31, 2018, the shareholders approved of the total number of directors.

We may, in a special general meeting called for this purpose, remove a director, provided notice of such meeting is served upon the director concerned not less than fourteen days before the meeting and he shall be entitled to be heard at that meeting.

The office of a director will be vacated in the event of any of the following:

• if he resigns his office by notice in writing to be delivered to our registered office or tendered at a meeting of the Board of Directors;

• if he becomes of unsound mind or a patient for any purpose under any statute or applicable law relating to mental health and the Board of Directors resolves that his office is vacated;

• if he becomes bankrupt or enters into a general settlement with his creditors;

• if he is prohibited by law from being a director; or

• if he ceases to be a director by virtue of the Companies Act or is removed from office pursuant to the Bye-Laws.

10.2.17 Amendment of Memorandum of Association and Bye-Laws

Bermuda law provides that the memorandum of association of a company may be amended by resolution passed at a general meeting of which due notice has been given. An amendment to a memorandum of association does not require the consent of the Minister of Finance of Bermuda save for specific circumstances, for example, the adopting of any authority to carry on restricted business activities.

Under Bermuda law, the holders of:

• an aggregate of not less than twenty percent in par value of a company’s issued share capital or any class thereof; or

• not less in the aggregate than twenty percent of the company’s debentures entitled to object to amendments to its memorandum of association,

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have the right to apply to the Supreme Court of Bermuda for an annulment of any amendment of the memorandum of association. Where such an application is made, the amendment becomes effective only to the extent that it is confirmed by the Bermuda Supreme Court. An application for an annulment of an amendment of the memorandum of association must be made within twenty-one days after the date on which the resolution amending the memorandum of association is passed and may be made on behalf of the persons entitled to make the application by one or more of their number as they may appoint in writing for the purpose.

Our Bye-Laws may be amended in the manner provided for in the Companies Act, which provides that the directors may amend the Bye-Laws, provided that any such amendment shall be effective only to the extent approved by the shareholders.

10.2.18 Merger or Amalgamation

The Companies Act provides that two or more Bermuda companies may merge and their undertaking, property and liabilities shall vest in one of such companies as the surviving company (referred to as a “merger” under Bermuda law). The Companies Act also provides that a Bermuda company may amalgamate with another company and continue as an amalgamated company (referred to as an “amalgamation” under Bermuda law). A merger or amalgamation requires a merger or amalgamation agreement which must be approved by the board of directors and at a meeting of the shareholders by seventy-five percent of the shareholders present and entitled to vote at such meeting in respect of which the quorum shall be two persons holding or representing by proxy more than one-third of the issued shares of the company. These provisions do not apply where a holding company is merging or amalgamating with one or more of its wholly-owned subsidiaries or where two or more wholly-owned companies of the same holding company are merging or amalgamating.

Under Bermuda law, in the event of a merger or an amalgamation of a Bermuda company, a shareholder who did not vote in favor of the transaction and who is not satisfied that fair value has been offered for the shares, may apply to the Supreme Court of Bermuda within one month of notice of the meeting of shareholders to appraise the fair value of those shares.

10.2.19 Class Actions and Derivative Actions

Class actions, as they are commonly understood in the United States, are not available to shareholders under Bermuda law. Derivative actions are generally only available to shareholders under Bermuda law in very limited circumstances. A shareholder may commence an action in the name of a company to remedy a wrong done to the company where the wrongdoers are in control of the company and the act complained of is of a fraudulent character, oppressive, beyond the corporate power of the company, illegal or would have required the approval of a greater percentage of the company’s shareholders than those that actually approved it. A shareholder may not commence such an action where the wrong complained of is capable of ratification by the company in a general meeting by ordinary resolution.

Since the July 2018 amendment to the Rules of the Supreme Court, if a derivative action is commenced and the relevant defendant enters an appearance, leave of the Supreme Court of Bermuda must be obtained before the derivative action can proceed.

When one or more shareholders believes the affairs of a company are being conducted in a manner which is oppressive or prejudicial to the interest of some part of the shareholders, the Supreme Court of Bermuda, upon petition, brought by the shareholder(s), may make such order as it sees fit if it is satisfied that the affairs of the company are or have been conducted in such an oppressive or prejudicial manner and, that, as a result, it would be just and equitable to wind up the company, but that to so wind up the company would unfairly prejudice the part of the shareholders ; such an order can include (with limitation) provisions regulating the conduct of the company’s affairs in the future or ordering the purchase of the shares of any shareholders by other shareholders or by the company, and in the case of a purchase of the shares by the company, for the reduction accordingly of the company’s capital or otherwise.

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10.2.20 Personal Liability of Directors and Indemnity

The Companies Act requires every officer, including directors, of a company in exercising powers and discharging duties, to act honestly in good faith with a view to the best interests of the company, and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. The Companies Act further provides that any provision, whether in the bye-laws of a company or in any contract between the company and any officer or any person employed by the company as auditor, exempting such officer or person from liability, or indemnifying him against any liability which by virtue of any rule of law would otherwise attach to him, in respect of any fraud or dishonesty of which he may be guilty in relation to the company, shall be void.

Every director, officer and committee member shall be indemnified out of our funds against all civil liabilities, loss, damage or expense including liabilities under contract, tort and statute or any applicable foreign law or regulation and all reasonable legal and other costs and expenses properly payable, incurred or suffered by him as director, officer or committee member; provided that the indemnity contained in the Bye-Laws will not extend to any matter which would render it void under the Companies Act as discussed above.

10.2.21 Exchange Controls

We have been designated by the Bermuda Monetary Authority as a non-resident under the Exchange Control Act of 1972 (the “Exchange Control Act”). This designation allows us to engage in transactions in currencies other than the Bermuda dollar.

The transfer of Common Shares between persons regarded as resident outside Bermuda for exchange control purposes and the issue of Common Shares to such persons may be effected without specific consent under the Exchange Control Act and regulations thereunder, provided the Common Shares are listed on an appointed stock exchange.

Notwithstanding the recording of any special capacity, we are not bound to investigate or incur any responsibility in respect of the proper administration of any estate or trust.

We will take no notice of any trust applicable to any of our Common Shares whether or not we had notice of such trust.

As an “exempted company,” we are exempt from Bermuda laws which restrict the percentage of share capital that may be held by non-Bermudians. However, as an exempted company we may not participate in certain designated business transactions, which we do not consider relevant to our present or planned business activities.

10.3 Material Contracts

Composite Services Agreement (“CSA”)

The Company engages in transactions in the ordinary course of business with PEWC, including the purchase of certain raw materials and the distribution of PEWC products in various countries in the Asia Pacific region. The Company and PEWC are parties to a Composite Services agreement dated November 7, 1996 (the “Composite Services Agreement” or “CSA”), which the Company has renewed annually, at its option. The Composite Services Agreement contains provisions that define the relationship and the conduct of the respective businesses of the Company and PEWC and confers certain preferential benefits on the Company. In 2019, there were no material changes to the CSA between APWC and PEWC. Pursuant to the Composite Services Agreement,

• PEWC agrees to (a) sell copper rod to the Company, upon the Company’s request, (i) at a price consisting of the spot price of copper on the LME plus an agreed upon premium and (ii) at prices and on terms at least as favorable as PEWC provides copper rod to other purchasers of similar amounts of copper rod in the same markets, and (b) give priority in the supply of copper rod to the Company over other purchasers of copper rod from PEWC.

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• The Company has the right to distribute any wire or cable product manufactured by PEWC in all markets in which the Company presently distributes or develops the capability to distribute in the future such products on such terms as have historically been in effect or on terms at least as favorable as PEWC grants to third parties that distribute such products in such markets. However, PEWC is not required to grant to the Company the right to distribute products manufactured by PEWC in the future in markets where the Company does not currently have the capability to distribute unless and until PEWC has no pre-existing contractual rights which would conflict with the grant of such right to the Company.

• Each of PEWC and the Company will offer the other party the right to participate in any negotiations with a third party concerning the establishment of any facility or similar venture to manufacture or distribute any wire or cable product outside of the markets where the Company currently manufactures or distributes, or intends to develop the capability to manufacture or distribute, any wire or cable product. Unless the Company and PEWC mutually agree otherwise, the Company has the right of first refusal to enter into any definitive agreement with such third party. If, however, such third party would not agree to the substitution of the Company for PEWC or such substitution would prevent the successful completion of the facility or venture, PEWC has agreed to arrange for the Company to participate to the extent possible.

• PEWC agrees to make available to the Company, upon the Company’s request and on terms to be mutually agreed between PEWC and the Company from time to time, certain services and technology with respect to the design and manufacture of wire and cable products (including fiber optic products), and certain services with respect to computerization, inventory control, purchasing, internal auditing, quality control, emergency back-up services, and recruitment and training of personnel; such services may include the training of the Company’s employees and managers at PEWC facilities and the secondment of PEWC employees and managers to the Company.

• Without the consent of the Company, PEWC will not compete with respect to the manufacture or distribution of wire and cable products in any market in which the Company is manufacturing or has taken significant steps to commence manufacturing.

• For purposes of the Composite Services Agreement, each province in China is considered the equivalent of a country.

To the extent that transactions occur in the future between the Company and PEWC or affiliates of PEWC other than under the Composite Services Agreement, such transactions will be entered into on an arm’s length basis on terms no less favorable than those available from unaffiliated third parties.

10.4 Taxation

The following is a summary of the material tax consequences of the acquisition, ownership and disposition of Common Shares based on the tax laws of the United States and Bermuda, subject to the assumptions, qualifications and limitations in our discussion below. Such summary is subject to changes in United States and Bermuda law, including changes that could have retroactive effect. The following summary does not take into account the individual circumstances of an investor, nor does it purport to be a complete technical analysis or examination of all potential tax effects relevant to a decision to purchase Common Shares, including without limitation, the tax laws of the various states or localities within the United States.

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10.4.1 United States Taxation

The following is a summary of the material United States federal income tax consequences of the acquisition, ownership and disposition of Common Shares by a U.S. Holder (as defined below) and a Non-U.S. Holder (as defined below), in each case, subject to the assumptions, qualifications and limitations in our discussion below. Such summary is subject to changes in United States law, including changes that could have retroactive effect. The summary does not purport to be a comprehensive description of all possible tax considerations that may be relevant to a decision to purchase Common Shares. This summary is based upon the Internal Revenue Code of 1986, as amended (the “Code”), regulations promulgated under the Code by the U.S. Treasury Department (the “Treasury”) (including proposed and temporary regulations), rulings, current administrative interpretations and official pronouncements of the IRS, and judicial decisions, all as currently in effect and all of which are subject to differing interpretations or to change, possibly with retroactive effect. Such change could materially and adversely affect the tax consequences described below. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax consequences described below. Further, this summary does not discuss any foreign, state or local tax consequences.

In particular, this summary deals only with Common Shares held as capital assets and does not address the United States tax treatment of U.S. Holders and Non-U.S. Holders that are subject to special treatment under the Code, such as dealers in stocks, securities, or currencies, traders in securities that elect to use a mark-to-market method of accounting for their securities holdings, financial institutions, insurance companies, tax-exempt entities, real estate investment trusts, regulated investment companies, qualified retirement plans, individual retirement accounts, and other tax deferred accounts, expatriates of the United States, persons subject to the alternative minimum tax, persons holding shares as part of a hedging or conversion transaction or a straddle, or other integrated transaction, persons who acquired Common Shares pursuant to the exercise of any employee stock option or otherwise as compensation for services, or persons whose functional currency is not the United States dollar or who own (directly, indirectly or by attribution) 10% or more of the stock of the Company. This discussion is limited to investors who hold their shares as capital assets. No ruling has been or will be sought from the IRS regarding any matter discussed herein. Counsel to the Company has not rendered any legal opinion regarding any tax consequences to the Company or others of an investment in the Company. Consequently, prospective purchasers who are U.S. Holders or Non-U.S. Holders are advised to satisfy themselves as to the overall United States federal, state, local and foreign tax consequences of their acquisition, ownership and disposition of Common Shares by consulting their own tax advisors.

As used herein, the term “U.S. Holder” means a beneficial owner of Common Shares that is (i) a citizen or resident of the United States, (ii) a corporation (including any entity treated as a corporation for U.S. federal income tax purposes) created or organized in the United States or under the laws of the United States or any state (or the District of Columbia), (iii) an estate, the income of which is subject to United States federal income tax regardless of its source, or (iv) a trust, if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more “United States persons” (as defined in Section 7701(a)(30) of the Code) has the authority to control all substantial decisions of the trust, or, to the extent provided in the Regulations, certain trusts in existence on August 20, 1996, and treated as U.S. Persons prior to such date, that elect to be treated as U.S. Persons.

The term “Non-U.S. Holder” means a beneficial owner of Common Shares that is not a U.S. Holder. As described in “Taxation of Non-U.S. Holders” below, the consequences to a Non-U.S. Holder may differ substantially from the tax consequences to a U.S. Holder.

If a partnership (including for this purpose any entity treated as a partnership for U.S. federal income tax purposes) is a beneficial owner of Common Shares, the U.S. federal income tax consequences to a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. A holder of Common Shares that is a partnership and the partners in such partnership should consult their own tax advisors regarding the U.S. federal income tax consequences of the ownership and disposition of Common Shares.

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U.S. Federal Income Taxation of the Company

The Company expects that it will be treated as a foreign corporation for U.S. federal income tax purposes, and it will make no election to the contrary. As a foreign corporation, subject to the rules discussed below, the income, gains, losses, deductions and expenses of the Company will not be passed through to the investors, and all distributions by the Company to the investors will be treated as dividends, return of capital, and/or capital gains.

The Company currently does not conduct activities in the United States and expects that it will continue to conduct activities in a manner so as not to constitute the conduct of a trade or business in the United States or, invest in securities the income from which is treated, for U.S. federal income tax purposes, as arising from a U.S. trade or business. As a result, the income of the Company generally should not be subject to U.S. federal income tax on a net income basis. However, gains realized from certain investments in United States real property interests by foreign persons, such as the Company, may be subject to U.S. federal income tax on a net basis, withholding tax and a branch profits tax. Debt instruments with an equity component linked to a United States real property interest and stock in certain United States corporations holding significant real property interests may be considered United States real property interests taxable as described above.

Taxation of U.S. Holders

The discussion in “Taxation of Dividends” and “Taxation of Capital Gains” below assumes that the Company will not be treated as a PFIC for U.S. federal income tax purposes. For a discussion of the rules that apply if the Company is treated as a PFIC, see the discussion in “Passive Foreign Investment Company” below.

Taxation of Dividends

In November 2016, the Company announced the implementation of a dividend policy pursuant to which the Company would seek to distribute as a cash dividend at least 25% of its net post-tax audited consolidated profit attributable to APWC shareholders. On November 30, 2018, the Company paid a cash dividend of $0.08 per Common Share to holders of record as of September 14, 2018, in accordance with the Company's dividend policy. A U.S. Holder receiving a distribution with respect to Common Shares generally will be required to include such distribution in gross income (as ordinary income subject to regular, and not reduced, tax rates) on the day received as foreign-source dividend income to the extent such distribution is paid from the Company’s current or accumulated earnings and profits (as determined under United States federal income tax principles). Such dividends will not be eligible for the dividends received deduction (generally allowed to certain United States corporations in respect of dividends received from United States corporations). U.S. Holders that are corporations and directly own 10% or more of the voting stock of the Company may be entitled to claim a foreign tax credit for United States federal income tax purposes in respect of foreign taxes paid by the Company and certain subsidiaries. However, if a U.S. Holder claims the foreign tax credit, it must “gross-up” the deemed tax payment and treat the grossed-up amount as part of the dividend distribution, so that the amount included in income is equal to the dividend received plus the amount of the foreign tax deemed paid by such U.S. Holder.

Under U.S. federal income tax laws, a dividend paid to an individual U.S. shareholder from either a domestic corporation or a “qualified foreign corporation” is subject to tax at the reduced rates applicable to certain capital gains. A qualified foreign corporation includes certain foreign corporations that are eligible for benefits of a comprehensive income tax treaty with the United States which the Secretary of the Treasury determines is satisfactory for purposes of this provision and which includes an exchange of information program. In addition, a foreign corporation not otherwise treated as a qualified foreign corporation is so treated with respect to any dividend it pays if the stock with respect to which it pays such dividend is readily tradable on an established securities market in the United States.

In the absence of a comprehensive income tax treaty between the United States and Bermuda, the Company will not be treated as a “qualified foreign corporation” under the treaty test. So long as the Company is not a PFIC (as discussed below), dividends paid by the Company to individual shareholders would qualify for these reduced rates if its stock was treated as readily tradable on an established securities market in the United States.

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In Notice 2003-71, 2003-2 C.B. 922, the IRS determined that common or ordinary stock, or an American depositary receipt in respect of such stock, is considered readily tradable on an established securities market in the United States if it is listed on a national securities exchange that is registered under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) or on The Nasdaq Stock Market. As stated in the SEC’s Annual Report for 2002, registered national exchanges as of September 30, 2002 include the American Stock Exchange (now known as NYSE Amex Equities), the Boston Stock Exchange, the Cincinnati Stock Exchange, the Chicago Stock Exchange, the NYSE, the Philadelphia Stock Exchange, and the Pacific Exchange, Inc.

For so long as the Common Shares continue to be traded on Nasdaq, or are readily tradable on any other established securities market in the United States, any dividends paid by the Company should qualify for the reduced rates referred to above so long as they remain in effect.

To the extent any distribution exceeds the current and accumulated earnings and profits of the Company for a taxable year, the distribution will be treated as a non-taxable return of capital to the extent of the U.S. Holder’s adjusted tax basis in the Common Shares with respect to which the distribution is made, causing a reduction in the adjusted basis of the Common Shares (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by the U.S. Holder on a subsequent disposition of the Common Shares). To the extent such distribution exceeds the U.S. Holder’s adjusted tax basis in the Common Shares, such excess will be treated as capital gain.

Taxation of Capital Gains

A U.S. Holder will recognize taxable gain or loss on any sale, exchange or other disposition of Common Shares (including a liquidation, dissolution or as a result of a non-pro rata redemption of Common Shares that qualified for treatment as a sale or exchange for United States federal income tax purposes) in an amount equal to the difference between the amount realized for the Common Shares and the U.S. Holder’s adjusted tax basis in the Common Shares. Such gain or loss generally will be treated as capital gain or loss and will be long-term capital gain or loss if the Common Shares have been held for more than one year on the date of the sale, exchange or other disposition thereof, and will be short-term capital gain or loss if the Common Shares have been held for one year or less on the date of the sale or exchange thereof. Any gain recognized by a U.S. Holder generally will be treated as United States source income. In general, an individual’s short-term capital gains are taxable as ordinary income and an individual’s long-term capital gains are subject to U.S. federal income tax at preferential rates.

Long-term capital gains of corporations generally are subject to the U.S. federal income tax at a current rate of 21%. Short-term capital gain generally is taxable at ordinary income rates. Although capital gains of corporations currently are taxed at the same rates as ordinary income, the distinction between capital gain and ordinary income or loss is relevant for purposes of, among other things, limitations on the deductibility of capital losses. Corporations may deduct capital losses only to the extent of capital gains and generally may carry back capital losses to each of the preceding three years and carry forward capital losses to each of the succeeding five years. Individuals may deduct capital losses to the extent of capital gains plus up to $3,000 ($1,500 for married individuals filing separate returns) and may carry forward capital losses indefinitely.

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Backup Withholding

In general, information reporting requirements may be applicable to dividend payments (or other taxable distributions) made in respect of Common Shares to non-corporate U.S. Holders, and “backup withholding” at the rate of 24% will apply to such payments (i) if the holder or beneficial owner fails to provide a taxpayer identification number in the manner required by U.S. law and applicable regulations, (ii) if the IRS notifies the payor that the taxpayer identification number furnished by the holder or beneficial owner is incorrect, (iii) if there has been notification from the IRS of a failure by the holder or beneficial owner to report all interest or dividends required to be shown on its United States federal income tax returns or (iv) in certain circumstances, if the holder or beneficial owner fails to comply with applicable certification requirements. In general, payment of the proceeds from a sale of Common Shares to or through a United States office of a broker is subject to both United States backup withholding and information reporting unless the holder or beneficial owner establishes an exemption. U.S. Holders who are required to establish their exempt status generally must provide such certification on IRS Form W-9. Amounts withheld under the backup withholding rules may be credited against a holder’s tax liability, and a holder may obtain a refund of any excess amounts withheld under the backup withholding rules by timely filing the appropriate claim for refund with the IRS. Payment of the proceeds from the sale of Common Shares effected outside the United States by a foreign office of certain United States connected brokers will not be subject to backup withholding tax but will be subject to information reporting requirements unless the broker has documentary evidence in its records that the beneficial owner is a non-U.S. Holder and has no actual knowledge to the contrary, or the beneficial owner otherwise establishes an exemption.

Passive Foreign Investment Company

In general, the Company will be treated as a PFIC for United States federal income tax purposes for any taxable year if either (i) at least 75% of the gross income of the Company is passive income or (ii) at least 50% of the value (determined on the basis of a quarterly average) of the Company’s assets is attributable to assets that produce or are held for the production of passive income. The Company believes, based on its current operations and assets, that it is not a PFIC and does not expect to become a PFIC in the future. This conclusion is a factual determination based on, among other things, a valuation of the Company’s assets, which will likely change from time to time.

If the Company were a PFIC for any taxable year during which a U.S. Holder held Common Shares, the U.S. Holder would be subject to special tax rules with respect to (i) any “excess distribution” by the Company to the U.S. Holder (generally any distribution received by the U.S. Holder in a taxable year that is greater than 125% of the average annual distribution received by the U.S. Holder in the three preceding taxable years, or the U.S. Holder’s holding period for the Common Shares, if shorter) and (ii) any gain realized on the sale or other disposition (including a pledge) of Common Shares.

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Under these special tax rules, (i) the excess distribution or gain would be allocated ratably over the U.S. Holder’s holding period for the Common Shares, (ii) the amount allocated to the U.S. Holder’s current taxable year and to any period prior to the first taxable year in which the Company was a PFIC would be includible as ordinary income in the U.S. Holder’s current taxable year and (iii) the amount allocated to a prior year during which the Company was a PFIC would be subject to tax at the highest tax rate in effect for that year, and an interest charge would also be imposed with respect to the resulting tax attributable to each such prior year. The interest charge is computed using the applicable rates imposed on underpayments of United States federal income tax for the relevant periods.The above rules will not apply if a “mark-to-market” election is available and a U.S. Holder validly makes such an election by filing a properly completed IRS Form 8621. If such election were made, a U.S. Holder generally would be required to take into account the difference, if any, between the fair market value and its adjusted tax basis in the Common Shares at the end of each taxable year as ordinary income or ordinary loss (to the extent of any net mark-to-market gains previously included in income). Thus, the U.S. Holder may recognize taxable income without receiving any cash to pay its tax liability with respect to such income. A U.S. Holder’s tax basis in the Common Shares would be adjusted to reflect any such income or loss amount. In addition, any gain from a sale, exchange or other disposition of the Common Shares would be treated as ordinary income, and any loss would be treated as ordinary loss (to the extent of any net mark-to-market gains previously included in income). A mark-to-market election is available to a U.S. Holder only if the Common Shares are considered “marketable stock” for these purposes. Generally, shares of a PFIC will be considered marketable stock if they are “regularly traded” on a “qualified exchange” within the meaning of applicable U.S. Treasury regulations. A class of shares is regularly traded during any calendar year during which such class of shares is traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. A “qualified exchange” is defined to include a national securities exchange registered with the SEC or certain foreign exchanges. As the Common Shares of the Company commenced trading on Nasdaq beginning on April 29, 2011, the mark-to-market election under the rules discussed above is available if the Company were otherwise classified as a PFIC, for so long as the Common Shares continue to be regularly traded on Nasdaq or another qualified exchange.

The special tax rules described above will also not apply to a U.S. Holder if the U.S. Holder elects to have the Company treated as a “qualified electing fund” (a “QEF election”) and the Company provides certain information to U.S. Holders. If the Company is treated as a PFIC, it will notify the U.S. Holders and provide such holders with the information necessary to make an effective QEF election, including information as to the procedures for making such an election. The QEF election is made on a shareholder-by-shareholder basis and can ordinarily be revoked only with the consent of the IRS.

A U.S. Holder that makes a valid QEF election will be currently taxable on its pro rata share of the Company’s ordinary earnings and net capital gain (at ordinary income and capital gains rates, respectively) for each taxable year that the Company is classified as a PFIC, regardless of whether distributions are received. Thus, the U.S. Holder may recognize taxable income without receiving any cash to pay its tax liability with respect to such income. The U.S. Holder’s basis in the Common Shares will be increased to reflect taxed but undistributed income. Distributions of income that have been previously taxed will result in a corresponding reduction of basis in the Common Shares and will not be taxed again as a distribution to the U.S. Holder.

A U.S. Holder owning Common Shares during any year that the Company is a PFIC must file IRS Form 8621. U.S. Holders should consult their tax advisors concerning the United States federal income tax consequences of holding Common Shares and of making a mark-to-market or QEF election if the Company is treated as a PFIC in the future.

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Controlled Foreign Corporation

A non-U.S. corporation generally will be a CFC for U.S. tax purposes if United States shareholders collectively own more than 50 percent of the total combined voting power or total value of the corporation’s stock on any day during any taxable year. For this purpose, United States shareholders are limited to those U.S. persons who own, directly, indirectly or constructively, 10 percent or more of the total combined voting power of all classes of stock of the non-U.S. corporation. If a corporation is a CFC for an uninterrupted period of 30-days in any tax year, every United States shareholder that owns stock on the last day of the CFC’s tax year, must include in gross income such shareholder’s pro rata share of the CFC’s “subpart F income” and income from investments in certain types of U.S. property (i.e., tangible personal property located in the United States, stock of a United States corporation, an obligation of a United States person, or a right to use patents, copyrights, and other similar property in the United States) even if the income has not been distributed to the shareholders in the form of dividends or otherwise. Subpart F income consists of certain specified categories of income including, among others, dividends, interest, rents, royalties, net gains from the sale of property giving rise to such income and income from certain types of transactions involving “related persons” as defined for U.S. federal income tax purposes.

The Tax Cuts and Jobs Act of 2017 introduced a new category of income called Global Intangible Low Tax Income (“GILTI”) that, like subpart F income, is deemed repatriated in the year earned. GILTI is basically the income of a CFC reduced by certain adjustments such as U.S. effectively connected income or other subpart F income, that exceeds 10% of the CFC’s Qualified Business Asset Investment (“QBAI”). QBAI is the CFC’s fixed assets that are depreciable as trade or business assets and does not include the CFC’s patents, trademarks, and certain other amortizable intangible property.

Taxation of Non-U.S. Holders

Taxation of Dividends

Subject to the discussion in “Backup Withholding” below, Non-U.S. Holders generally will not be subject to U.S. federal income tax, including withholding tax, on distributions received on Common Shares, unless the distributions are effectively connected with a trade or business conducted in the United States (and, if an applicable income tax treaty so requires, attributable to a permanent establishment maintained in the United States).

If distributions are effectively connected with a U.S. trade or business (and, if applicable, attributable to a U.S. permanent establishment), Non-U.S. Holders generally will be subject to tax on such distributions in the same manner as U.S. Holders, as described in “Taxation of U.S. Holders — Taxation of Dividends” above. In addition, any such distributions received by a corporate Non-U.S. Holder may also, under certain circumstances, be subject to an additional “branch profits tax” at a 30% rate or such lower rate as may be specified by an applicable income tax treaty.

Taxation of Capital Gains

Gain realized by Non-U.S. Holders upon the sale or exchange or complete redemption of Common Shares held as a capital asset generally should not be subject to United States federal income tax provided that the gain is not effectively connected with a trade or business conducted in the United States (and, if an applicable tax treaty so requires, attributable to a permanent establishment maintained in the United States). However, in the case of nonresident alien individuals, such gain will be subject to the 30% (or lower tax treaty rate) U.S. flat tax if (i) such person is present in the United States for 183 days or more during the taxable year (on a calendar year basis unless the nonresident alien individual has previously established a different taxable year) and certain other conditions are met; and (ii) such gain is derived from U.S. sources.

Generally, the source of gain upon the sale or exchange or complete redemption of Common Shares is determined by the place of residence of the shareholder. For purposes of determining the source of gain, the Code defines residency in a manner that may result in an individual who is otherwise a nonresident alien with respect to the United States being treated as a United States resident for purposes of determining the source of income only. Each potential individual investor who anticipates being present in the United States for 183 days or more (in any taxable year) should consult a separate, outside tax advisor with respect to the possible application of this rule.

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Special rules may apply in the case of shareholders (i) that have an office or fixed place of business in the United States to which a distribution or gain in respect of the Common Shares is attributable; or (ii) that are former citizens or residents of the United States, CFCs, foreign personal holding companies or corporations that accumulate earnings to avoid United States federal income tax. Such persons in particular are urged to consult their United States tax advisors before investing in the Company.

Backup Withholding

In the case of Common Shares held by a Non-U.S. Holder, or held in the United States by a custodian or nominee for a Non-U.S. Holder, U.S. back-up withholding taxes may apply to distributions in respect of such Common Shares unless such Non-U.S. Holder properly certifies as to its non-U.S. status using the appropriate version of IRS Form W-8.

Backup withholding is not an additional tax. Amounts withheld as backup withholding from a payment to a Non-U.S. Holder may be credited against his U.S. federal income tax liability and a Non-U.S. Holder may obtain a refund of any excess amounts withheld by filing the appropriate claim for refund with the IRS and furnishing any required information in a timely manner.

Future Tax Legislation

Future amendments to the Code, other legislation, new or amended U. S. Treasury Regulations, administrative rulings or guidance by the IRS, or judicial decisions may adversely affect the federal income tax aspects of an investment in the Company, with or without advance notice, and retroactively or prospectively.

U.S. Treasury Circular 230 Notice

Any United States federal tax advice included in this Annual Report (a) was not intended to be used, and cannot be used, for the purpose of avoiding United States federal tax penalties, and (b) was not written to support the promotion or marketing of the Company, its Common Shares or any transaction(s) or matter(s) addressed in the written advice. The taxpayer should seek advice based upon the taxpayer’s particular circumstances from an independent tax adviser.

10.4.2 Bermuda Taxation

The following discussion correctly describes the material tax consequences of the ownership of Common Shares under Bermuda law, subject to the assumptions, qualifications and limitations in the discussion below. Such summary is subject to changes in Bermuda law, including changes that could have retroactive effect.

Under current Bermuda law, there are no taxes on profits, income or dividends nor is there any capital gains tax. Furthermore, the Company has received from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act of 1966, as amended, an undertaking that, in the event that Bermuda enacts any legislation imposing tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax shall not be applicable to the Company or to any of its operations, or the shares, debentures or other obligations of the Company, until March 31, 2035. This undertaking does not, however, prevent the imposition of any such tax or duty on such persons as are ordinarily resident in Bermuda and holding such shares, debentures or obligations of the Company or of property taxes on Company-owned real property or leasehold interests in Bermuda.

As an exempted company, the Company must pay to the Bermuda government an annual government fee calculated on a sliding-scale basis by reference to its assessable capital, that is, its authorized share capital plus any share premium.

There is no stamp duty or other transfer tax payable upon the transfer of shares in the Company by shareholders.

71

The United States does not have a comprehensive income tax treaty with Bermuda.

10.5 Documents on Display

We are required to comply with the reporting requirements of the Exchange Act, applicable to a foreign private issuer. We are currently required to file annually a Form 20-F no later than four months after the close of our fiscal year, which is December 31. Any time the Company is delinquent in filing timely any periodic reports, including an Annual Report on Form 20-F, with the SEC, that delinquency may adversely affect the Company’s status on any exchange or quotation service on which its shares are listed or quoted and the Company may not be entitled to use certain abbreviated registration statements with the SEC in connection with the registration of any of its securities. We have not been delinquent in filing our annual reports in any of the past five years.

As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

Our reports and other information, when so filed, may be accessed over the Internet on the SEC’s website at http://www.sec.gov.

In addition, we post certain information regarding the Company and its operations on our website located at www.apwcc.com. Summary information regarding the Company posted on our website should not be considered to be a substitute for, or a restatement of, the more complete information regarding the Company, its results of operations and financial condition set forth in this Annual Report or other documents or information which we may file with the SEC.

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

The Company has exposure to several quantitative market risks, including fluctuations in interest rates, foreign currency exchange rates and the pricing of commodities, principally copper, the Company’s main raw material. Risk management measures undertaken by the Company include entering into derivative agreements covering foreign exchange rates and copper pricing, as well as copper forward pricing agreements. The Company does not purchase or sell derivative instruments for trading purposes. The Company does not engage in trading activities involving copper contracts for which a lack of marketplace quotations would necessitate the use of fair value estimation techniques.

11.1 Interest Rate Risk

The Company is not currently a party to any derivative instruments to manage interest rate exposure. In the current interest rate environment, the Company does not believe that the limited potential loss limitation protection available through the purchase of interest rate swaps or other derivative instruments against its exposure under floating rate finance facilities merits the cost that would be incurred in those transactions.

11.2 Foreign Currency Risk

The Company has exposure to fluctuations in currency exchange rates. The Company’s revenues are generated primarily in the local currency or currencies in its principal operating regions, North Asia, Thailand, and the ROW, which are also its reporting segments. However, significant proportions of raw materials are in U.S. dollars.

72

As the Company’s operating subsidiaries incur operating costs in the local currency where they operate, the Company believes it is prudent that those operating subsidiaries incur indebtedness in the local currency when debt financing is necessary. The amount of indebtedness incurred by our operating subsidiaries from time to time is a function of our business strategy, the attractiveness of borrowing as opposed to other methods of financing operations and tax implications, among other considerations. The Company has exposure to currency exchange risk when the results of its operating subsidiaries are translated from the local currency into the U.S. dollar. At December31, 2019 and 2018, the other comprehensive income in the total equity section of the consolidated balance sheets included currency translation adjustments of $9.8 million and $15.3 million, respectively.

11.3 Market Risks Relating to Copper

Copper is the principal raw material we use, accounting for a majority portion of the cost of sales in 2019. We purchase copper at prices based on the average prevailing international spot market prices on the LME for copper for the one month prior to purchase. The price of copper is influenced heavily by global supply and demand as well as speculative trading. As with other costs of production, changes in the price of copper may affect our cost of sales. Whether this has a material impact on our operating margins and financial results depends primarily on our ability to adjust our selling prices to our customers, such that increases and decreases in the price of copper are reflected in those selling prices. The purchase price of our products is based in part on the cost of copper used to manufacture those products. In addition, in the ordinary course of business we maintain inventories of raw materials and finished products reasonably necessary for the conduct of our business. These inventories typically reflect the cost of copper prevailing in the market at the time we purchase. Most of our sales of Manufactured Products reflect copper prices prevailing at the time the products are ordered. A long-term decrease in the price of copper would require the Company to revalue the value of its inventory at periodic intervals to the then market value, which could be below cost. Copper prices have been subject to considerable volatility and it is not always possible to manage our copper purchases and inventory so as to neutralize the impact of copper price volatility. Accordingly, significant volatility in copper prices could have a material adverse effect on the results of our operations. No assurance can be given that such volatility will not recur.

11.4 Equity Price Risk

The Company is exposed to equity price risk as a result of our unlisted available-for-sale equity securities. The carrying value of these investments in private companies is subject to fluctuations and their fair market value may be significantly different from the carrying value.

11.5 Fair Value of Designated Market-Sensitive Derivative Contracts

Not applicable

Item 12: Description of Securities Other Than Equity Securities

Not applicable

73

Part II

Item 13: Defaults, Dividend Arrearages and Delinquencies

The Company has not experienced any material default in the payment of principal, interest, a sinking or purchase fund installment, or incurred any other material default, not cured within 30 days relating to the Company’s or any of its consolidated subsidiaries’ indebtedness.

Item 14: Material Modifications to the Rights of Security Holders and Use of Proceeds

Not applicable

ITEM 15: CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of our disclosure controls and procedures in accordance with the provisions of Rule 13a-15 promulgated under the Securities Exchange Act of 1934, as amended. Based upon that evaluation, our management concluded that our disclosure controls and procedures were effective as of December 31, 2019.

Management’s report on Internal Control over Financial Reporting

The Company’s management, including our CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting. We do not expect that our internal control will prevent all errors and all fraud, or eliminate the possibility of fraudulent conduct. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

The Company’s management, including its CEO and CFO, has assessed the effectiveness of our internal control over financial reporting as of December 31, 2019 (the “Assessment Date”). In making its assessment, management used the criteria set forth in Internal Control — Integrated Framework issued in 2013 by the Committee of Sponsoring Organizations (“COSO”) of the Treadway Commission. These criteria include the control environment, risk assessment, control activities, information and communication and monitoring of each of the above criteria. Based on this assessment, the Company’s management, including its CEO and CFO, concluded that the Company’s internal control over financial reporting was effective as of the Assessment Date.

No Requirement of Auditor Attestation

This annual report does not contain an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Commission that permit the Company to provide only management's report in this annual report.

74

Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting, identified in connection with the evaluation of such internal control that occurred during the last fiscal year that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16A: AUDIT COMMITTEE FINANCIAL EXPERT

For more than the past five (5) years, the Common Shares of the Company have been trading on Nasdaq. During those periods of time when the Company did not have any independent directors, our full Board of Directors fulfilled the functions of an audit committee pursuant to Section 3(a)(58)(B) of the Exchange Act. For each of 2017, 2018 and 2019, our audit committee has consisted of our three independent directors, Mr. Anson Chan, Dr. Yichin Lee and Dr. Lambert L. Ding, with Mr. Chan serving as the Audit Committee’s chairman and financial expert. The Audit Committee of the Company’s Board of Directors meets the requirements set forth in Regulation 10A-3 under the Exchange Act and under the rules of Nasdaq.

Item 16B: Code of Ethics

On April 26, 2005, the Company adopted a code of ethics applicable to its Chief Executive Officer and senior financial officers. A copy of the Company’s code of ethics for senior executives is on file with the SEC.

Item 16C: Principal Accountant Fees and Services

Audit Fees

The aggregate fees for fiscal years 2019 and 2018 for professional services rendered by the principal independent accountant for the audit of the Company’s annual financial statements totaled $0.9 million and $0.8 million, respectively.

Tax Fees

The aggregate fees for fiscal years 2019 and 2018 for professional services rendered by the principal independent accountant for tax compliance, tax advice and tax planning totaled approximately $39 thousand and $40 thousand, respectively.

All Other Fees

(None)

Audit Committee Approval

The engagement of the independent accountant to render audit, audit-related and non-audit services is entered into pursuant to pre-approval policies and procedures established in the Charter of the Audit Committee of the Company. Each of the services described in this Item 16C was approved by the Audit Committee.

ITEM 16D: EXEMPTIONS FROM THE LISTING STANDARDS FOR THE AUDIT COMMITTEES

The Audit Committee of the Company’s Board of Directors consists of three directors, each of whom is independent, as such term is defined in Regulation 10A-3 promulgated under the Exchange Act, and one of whom is a financial expert.

Item 16E: Purchases of Equity Securities by the Issuer and Affiliated Purchasers

75

Not applicable

ITEM 16F: CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable

ITEM 16G: CORPORATE GOVERNANCE

The Common Shares of the Company are currently traded on the Nasdaq Global Market tier. However, as the Company has a more than fifty percent (50%) shareholder, the Company relies upon a “controlled company exemption” that exempts it from having a board of directors comprised of a majority of independent directors. At present, a majority of the directors of the Company is affiliated with PEWC. The Company also relies on Nasdaq’s allowance for foreign private issuers to follow home country practices in lieu of the requirement that listed companies have regularly scheduled meetings at which only independent directors are present (“executive sessions”). The independent directors of the Company meet periodically in executive session in their capacity as members of the Audit Committee of the Board of Directors of the Company without other Directors present, but on occasion meet with the independent auditors of the Company present in such executive session, and on occasion meet with members of management present in order to understand more fully management’s analysis of the Company’s financial performance and compliance with relevant corporate governance requirements. These are the only material differences between the Company’s corporate governance practices and the corporate governance practices set forth for domestic companies under the Nasdaq rules on the subject matter.

ITEM 16H: MINE SAFETY DISCLOSURE

Not applicable

76

Part III

ITEM 17: FINANCIAL STATEMENTS

The Company has elected to provide the financial statements and related information specified in Item 18 in lieu of Item 17.

ITEM 18: FINANCIAL STATEMENTS

See pages F-1 – F-105.

ITEM 19: EXHIBITS

19.1 Index to Audited Financial Statements

Report of independent registered public accounting firm

Consolidated income statements for the years ended December 31, 2019, 2018 and 2017

Consolidated statements of comprehensive income for the years ended December 31, 2019, 2018 and 2017

Consolidated balance sheets as of December 31, 2019 and 2018

Consolidated statements of changes in equity for the years ended December 31, 2019, 2018 and 2017

Consolidated statements of cash flows for the years ended December 31, 2019, 2018 and 2017

Notes to consolidated financial statements

19.2 Index to Exhibits

1.1	Memorandum of Association of Asia Pacific Wire & Cable Corporation Limited (incorporated by reference to Exhibit 1.1 of the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission on June 21, 2001). (P)
1.2	Third Amended and Restated Bye-Laws of Asia Pacific Wire & Cable Corporation Limited (incorporated by reference to Exhibit 3.2 of the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission on April 30, 2012).
2.1	Description of theRights of Holders of Common Shares.
4.1	Composite Services Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Form F-1 filed with the Securities and Exchange Commission on November 13, 1996). (P)
4.2	Amended and Restated summaries of Joint Venture Agreements (incorporated by reference to Exhibit 4.6 of the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission on April 30, 2013).
4.3	Loan Facility Agreement between Crown Century Holdings Limited and Bangkok Bank Public Company Limited dated March 17, 2011 (incorporated by reference to Exhibit 10.8 of the Company’s Post-Effective Amendment No. 8 to Form F-1 on Form F-3 filed with the Securities and Exchange Commission on August 31, 2011).
8	List of significant subsidiaries (see Note 2.2 to the consolidated financial statements).
11	Code of Ethics (incorporated by reference to Exhibit 11 of the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission on November 9, 2007).
12.1	Certification of Chief Executive Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act (filed herewith).

77

12.2	Certification of Chief Financial Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act (filed herewith).
13.1	Certification by Chief Executive Officer of periodic financial report pursuant to 18 U.S.C. Section 1350, as mandated by Section 906 of the Sarbanes-Oxley Act (filed herewith).
13.2	Certification by Chief Financial Officer of periodic financial report pursuant to 18 U.S.C. Section 1350, as mandated by Section 906 of the Sarbanes-Oxley Act (filed herewith).
15.1	Amended and Restated Audit Committee Charter (incorporated by reference to Exhibit 16.G of the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on May 13, 2011).

(P) – Paper filings

78

SIGNATURE

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

	ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED
April  27  , 2020	/s/ Yuan Chun Tang
	Name:	Yuan Chun Tang
	Title:	Chief Executive Officer

79

Asia Pacific Wire & Cable Corporation Limited

Audited ConsolidatedFinancialStatements

As of December31, 2019 and 2018

Years ended December 31, 2019, 2018 and 2017

INDEX TO FINANCIAL STATEMENTS

CONTENTS

Reports of independent registered public accounting firm	F-2
Consolidated income statements	F-3
Consolidated statements of comprehensive income	F-4
Consolidated balance sheets	F-5
Consolidated statements of changes in equity	F-6
Consolidated statements of cash flows	F-7
Notes to the consolidated financial statements	F-8

1. Principal activities and corporate information

2. Basis of preparation

2.1 Basis of preparation

2.2 Basis of consolidation

3. Summary of significant accounting policies

4. New Standards and interpretations

5. Segment information

6. Material partly-owned subsidiaries

7. Income and expenses items

8. Income tax

9. Earnings per share

10. Cash and cash equivalents

11. Financial assets and financial liabilities

12. Trade and other receivables

13. Inventories

14. Contract assets

15. Property, plant and equipment

16. Prepaid land lease payments

17. Investment properties

18. Intangible assets

19. Investment in associates

20. Trade and other payables

21. Employee benefit

22. Other current liabilities

23. Equity

24. Related party transactions

25. Commitments and contingencies

26. Fair value measurement

27. Financial risk management objectives

28. Cash flow information

29. Subsequent event

30. Approval of the financial statements

F-1

Report of Independent Registered Public Accounting Firm

To theBoard of Directors and Shareholders of Asia Pacific Wire & Cable Corporation Limited:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Asia Pacific Wire & Cable Corporation Limited and its subsidiaries (the “Company”) as of December 31, 2019 and 2018, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2019, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Change in Accounting Principles

As discussed in Note 4.1 the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019 and the manner in which it accounts for financial instruments and revenue from contracts with customers in 2018.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.  Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.  We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers, Taiwan

Taipei, Taiwan

Republic of China

April 27, 2020

We have served as the Company's auditor since 2017.

F-2

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

CONSOLIDATED INCOME STATEMENTS

For the years ended December 31, 2019, 2018 and 2017

			2019			2018			2017
	Note		US$’000			US$’000			US$’000
Revenue	5(e)			338,160			425,940			425,215
Cost of sales	7(g),13			(313,373	)		(389,692	)		(385,527	)
Gross profit				24,787			36,248			39,688
Other operating income	7(a)			385			805			5,084
Selling, general and administrative expenses	7(g)			(25,051	)		(26,924	)		(27,248	)
Other operating expenses	7(b)			(770	)		(1,445	)		(909	)
Operating (loss) /profit				(649	)		8,684			16,615
Finance costs	7(c)			(1,012	)		(1,378	)		(1,221	)
Finance income	7(d)			506			482			876
Share of loss of associates		19		(3	)		(3	)		(3	)
Loss on liquidation of a subsidiary				—			—			(261	)
Exchange gain				1,550			1,741			2,784
Other income	7(e)			717			1,817			214
Other expense	7(f)			(3	)		(11	)		(336	)
Profit before tax				1,106			11,332			18,668
Income tax expense		8		(2,057	)		(3,886	)		(5,140	)
(Loss) /Profit for the year				(951	)		7,446			13,528
Attributable to:
Equity holders of the parent				(1,632	)		2,928			8,720
Non-controlling interests				681			4,518			4,808
				(951	)		7,446			13,528
(Loss) /earnings per share
Basic and diluted (loss)/profit for the year attributable to equity holders of the parent		9	$	(0.12	)	$	0.21		$	0.63

The accompanying notes are an integral part of these consolidated financial statements.

F-3

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2019, 2018 and 2017

			2019			2018			2017
	Note		US$’000			US$’000			US$’000
Profit /(loss) for the year				(951	)		7,446			13,528
Other comprehensive income/(loss)
Other comprehensive income /(loss) to be reclassified to profit or    loss in subsequent periods:
Exchange differences on translation of foreign    operations, net of tax of $0	23(c)			10,677			(4,388	)		15,882
Cumulative translation differences reclassified    to profit or loss on liquidation of a subsidiary	23(c)			—			—			248
				10,677			(4,388	)		16,130
Net gain/(loss) on available-for-sale financial assets				—			—			(80	)
Income tax effect		8		—			—			16
Other comprehensive income from available-for-sale financial assets, net of tax		22		—			—			(64	)
Other comprehensive income/(loss) not to be reclassified    to profit or loss in subsequent periods:
Changes in the fair value of equity instruments measured at fair value through other comprehensive income	11(d)			1,670			(419	)		—
Income tax effect		8		(334	)		84			—
Other comprehensive income from equity instruments measured at fair value, net of tax	22			1,336			(335	)		—
Re-measuring loss on defined benefit plans		21		(1,727	)		(410	)		(772	)
Income tax effect		8		345			82			154
Defined benefit pension plan, net of tax		22		(1,382	)		(328	)		(618	)
Other comprehensive income/(loss) for the year,    net of tax				10,631			(5,051	)		15,448
Total comprehensive income for the year,    net of tax				9,680			2,395			28,976
Attributable to:
Equity holders of the parent				3,786			(2,038	)		18,992
Non-controlling interests				5,894			4,433			9,984
				9,680			2,395			28,976

The accompanying notes are an integral part of these consolidated financial statements.

F-4

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

CONSOLIDATED BALANCE SHEETS

As of December 31, 2019 and 2018

			As of December 31,
			2019			2018
	Note		US$’000			US$’000
Assets
Current assets
Cash and cash equivalents		10		53,673			60,778
Trade receivables		12		74,077			79,617
Other receivables	12,27(e)			6,868			12,422
Contract assets		14		4,686			1,460
Due from related parties		24		11,566			12,061
Inventories		13		85,187			83,925
Prepayments	16(c)			1,926			1,140
Other current assets				1,521			2,745
				239,504			254,148
Non-current assets
Financial assets at fair value through other comprehensive income	11,26			4,062			2,332
Property, plant and equipment	15,27(e)			41,747			41,418
Right-of-use assets	16(a)			3,735			—
Prepaid land lease payments	16(c)			—			978
Investment properties	7(a),17,26			730			720
Intangible assets		18		128			157
Investments in associates		19		935			864
Deferred tax assets		8		3,939			3,919
Other non-current assets				4,131			1,262
				59,407			51,650
Total assets				298,911			305,798
Liabilities
Current liabilities
Interest-bearing loans and borrowings	11(b)			11,356			24,814
Trade and other payables		20		16,879			21,127
Due to related parties		24		3,284			2,997
Financial liabilities at fair value through profit or loss	11,26			3			142
Accruals				14,437			14,197
Current tax liabilities		8		2,872			3,863
Employee benefit liabilities		21		1,888			1,282
Lease liabilities	11(d)			574			44
Other current liabilities	22			2,356			3,272
				53,649			71,738
Non-current liabilities
Employee benefit liabilities		21		10,434			8,273
Lease liabilities	11(d)			2,254			46
Deferred tax liabilities		8		4,139			3,925
				16,827			12,244
Total liabilities				70,476			83,982
Equity		23
Issued capital				138			138
Additional paid-in capital				110,416			110,376
Treasury shares				(38	)		(38	)
Retained earnings				53,384			55,016
Other components of equity				(10,046	)		(15,464	)
Equity attributable to equity holders of the parent				153,854			150,028
Non-controlling interests		6		74,581			71,788
Total equity				228,435			221,816
Total liabilities and equity				298,911			305,798

The accompanying notes are an integral part of these consolidated financial statements.

F-5

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the years ended December 31, 2019, 2018 and 2017

		Attributable to the equity holders of the parent
		Issued capital		Additional paid-in capital			Treasury shares			Retained earnings			Remeasurement of defined benefit plans			Available-for-sale reserve			Financial assets at FVOCI reserve			Foreign currency translation reserve			Total			Non-controlling interests			Total equity
	Note	US$’000		US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Balance at January 1, 2017			138		110,608			(38	)		46,012			(435	)		907			—			(21,242	)		135,950			61,225			197,175
Net profit			—		—			—			8,720			—			—			—			—			8,720			4,808			13,528
Other comprehensive income/(loss)	23		—		—			—			—			(315	)		(33	)		—			10,620			10,272			5,176			15,448
Total comprehensive income/(loss)			—		—			—			8,720			(315	)		(33	)		—			10,620			18,992			9,984			28,976
Dividend paid	23		—		—			—			(1,382	)		—			—			—			—			(1,382	)		(1,943	)		(3,325	)
Effect from the changes in shareholding percentage in subsidiary	2.2		—		(232	)		—			—			—			—			—			—			(232	)		232			—
Balance at December 31, 2017			138		110,376			(38	)		53,350			(750	)		874			—			(10,622	)		153,328			69,498			222,826
Reclassification on adoption of IFRS 9 and IFRS 15	4.1		—		—			—			(156	)		—			(874	)		874			—			(156	)		63			(93	)
Balance at January 1, 2018			138		110,376			(38	)		53,194			(750	)		—			874			(10,622	)		153,172			69,561			222,733
Net profit			—		—			—			2,928			—			—			—			—			2,928			4,518			7,446
Other comprehensive income/(loss)	23		—		—			—			—			(167	)		—			(170	)		(4,629	)		(4,966	)		(85	)		(5,051	)
Total comprehensive income/(loss)			—		—			—			2,928			(167	)		—			(170	)		(4,629	)		(2,038	)		4,433			2,395
Dividends paid	23		—		—			—			(1,106	)		—			—			—			—			(1,106	)		(2,206	)		(3,312	)
Balance at December 31, 2018			138		110,376			(38	)		55,016			(917	)		—			704			(15,251	)		150,028			71,788			221,816
Net loss			—		—			—			(1,632	)		—			—			—			—			(1,632	)		681			(951	)
Other comprehensive income/(loss)	23		—		—			—			—			(704	)		—			680			5,442			5,418			5,213			10,631
Total comprehensive income/(loss)			—		—			—			(1,632	)		(704	)		—			680			5,442			3,786			5,894			9,680
Dividends paid	23		—		—			—			—			—			—			—			—			—			(2,763	)		(2,763	)
Effect from the changes in shareholding percentage in subsidiary	2.2		—		40			—			—			—			—			—			—			40			(338	)		(298	)
Balance at December 31, 2019			138		110,416			(38	)		53,384			(1,621	)		—			1,384			(9,809	)		153,854			74,581			228,435

The accompanying notes are an integral part of these consolidated financial statements.

F-6

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2019, 2018, and 2017

			2019			2018			2017
	Note		US$’000			US$’000			US$’000
Operating activities:
Profit before tax				1,106			11,332			18,668
Adjustments to reconcile profit before tax to net cash    provided by operating activities:
Depreciation	15,16,17			5,274			4,936			4,972
Impairment of property, plant and equipment		15		546			11			223
Amortization of prepaid land lease payments		16		—			38			35
Amortization of intangible assets		18		50			44			49
Gain on disposal of property, plant and equipment	7(a)			(88	)		(93	)		(99	)
Gain on disposal of assets classified as held for sale	7(a)			—			—			(4,525	)
Adjustment for loss (gain) on fair value of derivatives	7(e),7(f)			(146	)		2			332
Dividend income	7(e)			(109	)		(105	)		(100	)
Finance income	7(d)			(506	)		(482	)		(876	)
Finance costs	7(c)			1,012			1,378			1,221
Share of loss of associates		19		3			3			3
Impairment (reversal of impairment) for trade receivables	12(a)			(122	)		570			302
Impairment for trade receivables for related parties	7(b)			—			1			27
Impairment of other receivable	7(b)			30			53			—
Impairment (write-back of impairment) of inventories		13		(322	)		1,613			532
Unrealized foreign exchange difference, net				(503	)		(742	)		(1,771	)
Loss on liquidation of subsidiary				—			—			261
Changes in operating assets and liabilities
Trade and other receivable, net				16,031			27,993			(17,438	)
Contract assets				(3,160	)		(1,317	)		—
Inventories				3,166			10,339			(11,523	)
Prepayment and other current assets				484			133			123
Amounts due to/from related parties				1,177			(1,422	)		2,733
Other non-current assets				(238	)		(55	)		77
Trade and other payables, accruals, other current liabilities and    other non-current liabilities				(5,527	)		(8,518	)		(6,778	)
Net cash flows (used in) provided by operating activities				18,158			45,712			(13,552	)
Dividend received				109			105			100
Interest received				457			405			858
Interest paid				(894	)		(1,216	)		(1,043	)
Income tax paid				(2,690	)		(4,357	)		(2,787	)
Net cash provided (used in) by operating activities				15,140			40,649			(16,424	)
Investing activities:
Purchases of property, plant and equipment		28		(5,442	)		(4,441	)		(4,903	)
Purchases of intangible assets		18		(20	)		(67	)		(10	)
Purchases of investment properties		17		—			—			(84	)
Purchases of long-term bank deposits				(272	)		(410	)		(475	)
Purchases of short-term bank deposits				(835	)		—			—
Proceeds from disposal of held for sale assets	7(a)			—			—			8,011
Proceeds from disposal of property, plant and equipment				171			100			510
Proceeds from disposal of other financial assets-held to maturity				—			—			340
Net cash (used in) provided by investing activities				(6,398	)		(4,818	)		3,389
Financing activities:
Dividend paid to non-controlling shareholders of subsidiaries				(2,763	)		(2,206	)		(1,943	)
Dividend paid to company's shareholders	23(b)			—			(1,106	)		(1,382	)
Repayments of borrowings				(19,811	)		(25,737	)		(17,306	)
Proceeds from borrowings				5,349			9,517			27,714
Change in financial lease liabilities				—			(46	)		(41	)
Principal elements of lease payments		28		(426	)		—			—
Effect from the changes in shareholding percentage in subsidiary				(298	)		—			—
Net cash (used in) provided by financing activities				(17,949	)		(19,578	)		7,042
Effect of exchange rate				2,102			(1,568	)		3,855
Net (decrease) increase in cash and cash equivalents				(7,105	)		14,685			(2,138	)
Cash and cash equivalents at beginning of year		10		60,778			46,093			48,231
Cash and cash equivalents at end of year		10		53,673			60,778			46,093

The accompanying notes are an integral part of these consolidated financial statements.

F-7

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. PRINCIPAL ACTIVITIES AND CORPORATE INFORMATION

Asia Pacific Wire & Cable Corporation Limited (“APWC” or the “Company”), which is a subsidiary of Pacific Electric Wire & Cable Co., Ltd. (“PEWC”), a Taiwanese company, was incorporated as an exempted company in Bermuda on September 19, 1996 under the Companies Act 1981 of Bermuda (as amended) for the purpose of acting as a holding company. The Company is principally engaged in owning operating companies engaged in the power cable, telecommunication cable, enameled wire and electronic cable industry. The Company’s registered office is located at Victoria Place, 5th Floor, 31 Victoria Street, Hamilton HM 10, Bermuda. The Company’s executive business office is presently located in Taipei, Taiwan.

The Company’s operating subsidiaries (the “Operating Subsidiaries”) are engaged in the manufacturing and distribution of telecommunications, power cable and enameled wire products in Singapore, Thailand, Australia, the People’s Republic of China (“PRC”) and other markets in the Asia Pacific region. Major customers of the Operating Subsidiaries include government organizations, electric contracting firms, electrical dealers, and wire and cable factories. The Company’s Operating Subsidiaries also engage in the distribution of certain wire and cable products manufactured by PEWC and third parties. The Company also provides project engineering services in supply, delivery and installation (the “SDI”) of power cable to certain of its customers.

Since 1997, the Company has been a U.S. public company with its common shares registered with the Securities and Exchange Commission (the “SEC” or the “Commission”). On April 29, 2011, the Company’s common shares commenced trading on Nasdaq Capital Market tier. On February 15, 2013, the Company’s common shares started trading on the Nasdaq Global Market tier.

PEWC is currently holding 75.4% of the equity of the Company and is the Company’s ultimate parent company

Share Capital Repurchase Program

The Company’s Board of Directors authorized a share capital repurchase program on August 28, 2012.  During 2012 and 2013, the Company repurchased 11,100 shares with total considerations of $38 until the Company suspended the share capital repurchase program as of June 30, 2013. The Company records the value of its common shares held in the treasury at cost.

On August 13, 2014, the Company announced that its Board of Directors authorized the future implementation of a share repurchase program of up to $1 million worth of its Common Shares. The Company did not announce a commencement date for that future share repurchase program, and, to date, it has not yet been implemented, and no financial liability has been recognized.

F-8

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. BASIS OF PREPARATION

2.1 The consolidated financial statements are prepared in accordance with International Financial Reporting Standard (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The financial statements have been prepared on a historical basis except where otherwise disclosed in the accounting policies. TheconsolidatedfinancialstatementsarepresentedinU.S. dollarsandallvaluesare roundedtothenearestthousand(US$’000), exceptwhenotherwiseindicated.

2.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, 2019 and 2018, and the results of operations of the Company and all subsidiaries for the years ended December 31, 2019, 2018 and 2017.

Subsidiaries are fully consolidated from the date of acquisition (the date on which the Company obtains control), and continue to be consolidated until the date that such control ceases. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statements, statements of comprehensive income, statements of changes in equity and balance sheets, respectively. Total comprehensive income (loss) within a subsidiary is attributed to the non-controlling interest even if it results in a deficit balance.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it:

► Derecognizes the assets (including goodwill) and liabilities of the subsidiary

► Derecognizes the carrying amount of any non-controlling interest

► Derecognizes the cumulative transaction differences recorded in equity

► Recognizes the fair value of the consideration received

► Recognizes the fair value of any investment retained

► Recognizes any surplus or deficit in profit or loss

► Reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or liability.

F-9

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

The subsidiaries of the Company are set out below:

	Percentage of equity interest
Place of incorporation and operations	2019			2018
The British Virgin Islands
APWC General Holdings Limited		100	%		100	%
PRC (APWC) Holding Ltd.		100	%		100	%
Samray Inc.		100	%		100	%
Siam (APWC) Holdings Ltd.		100	%		100	%
Moon View Ltd.		100	%		100	%
Trigent Investment Holdings Limited		100	%		100	%
Crown Century Holdings Ltd.		100	%		100	%
Singapore
Sigma Cable Company (Private) Limited (“Sigma Cable”)		98.30	%		98.30	%
Epan Industries Pte Ltd.		98.30	%		98.30	%
Singvale Pte Ltd.		100	%		100	%
The People’s Republic of China (“PRC”)
Ningbo Pacific Cable Co., Ltd. (“Ningbo Pacific”)		97.93	%		97.93	%
Shanghai Yayang Electric Co., Ltd. (“SYE”)		68.75	%		68.75	%
Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. (“PEWS”)		97.93	%		97.93	%
Hong Kong
Crown Century Holdings Limited (“CCH (HK)”)		97.93	%		97.93	%
Australia
Australia Pacific Electric Cable Pty Limited (“APEC”)		98.06	%		98.06	%
Thailand
Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai”) (i)		50.93	%		50.93	%
Siam Pacific Electric Wire & Cable Company Limited (“Siam Pacific”)		50.93	%		50.93	%
Double D Cable Company Limited (“Double D”)		50.93	%		50.93	%
Hard Lek Limited.		73.98	%		73.98	%
APWC (Thailand) Co., Ltd.		99.48	%		99.48	%
PEWC (Thailand) Co., Ltd.		99.48	%		99.48	%
CTW Beta Co., Ltd.		50.89	%		50.89	%
Siam Fiber Optics Co., Ltd. (“SFO”) (ii)		45.84	%		30.56	%
Taiwan
Asia Pacific New Energy Corporation Limited ("APNEC") (iii)		100.00	%		100.00	%
YASHIN Energy Corporation Limited ("YASHIN") (iii)		100.00	%		100.00	%
YADING Energy Corporation Limited ("YADING") (iii)		100.00	%		100.00	%

F-10

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

(i) Charoong Thai is listed on the Stock Exchange of Thailand and is engaged in the manufacturing of wire and cable products for the power and telecommunications industries in Thailand.

(ii) The directors have concluded that the Company controls SFO, even though it holds less than half of the voting rights of this subsidiary. This is because the Company is the largest shareholder with a 50.93% equity interest in Charoong Thai, which held a 90% and 60% equity interest of SFO as of December 31. 2019 and 2018, respectively.

On October 30, 2019, Charoong Thai acquired additional 30% interest in SFO for a total consideration of THB 9 million, thereby increasing the Company’s interest in SFO from 30.56% to 45.84%. The Company recorded the effect of change in shareholding of the subsidiaries, amounting to $40 under the caption of “Additional paid-in capital” in the consolidated statement of change in equity.  

(iii) On June 19, 2018, APWC’s Board of Directors approved to set up APNEC as the Company’s subsidiary with 100% held. APNEC registered its incorporation on October 26, 2018 with TWD 500 million registered capital and a paid-up capital of TWD 4 million.

In December 2018, APNEC acquired 100% of interest both in YASHIN and YADING from a subsidiary of PEWC at cash consideration of TWD 0.5 million, respectively.

F-11

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except as mentioned otherwise (see also Note 4.1).

3.1 Current versus non-current classification

The Company presents assets and liabilities in the balance sheets based on current and non-current classification. An asset is current when it is:

Expected to be realized or intended to be sold or consumed in the normal operating cycle;

► Held primarily for the purpose of trading;

► Expected to be realized within twelve months after the reporting period; or

► Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in a normal operating cycle;

► It is held primarily for the purpose of trading;

► It is due to be settled within twelve months after the reporting period; or

► There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

3.2 Operating profit

The operating profit is the profit earned from core business operations, and it does not include any profit earned from investment and the effects of interest and taxes.

3.3 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. In addition, fair values of financial instruments measured at amortized cost are disclosed in Note 11(d).

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

► In the principal market for the asset or liability, or

► In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

F-12

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.3 Fair value measurement (continued)

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

► Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

► Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly

► Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.4 Cash and cash equivalents

Cash and cash equivalents in the consolidated balance sheet comprise of cash at banks and highly liquid investments with purchased maturities of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the consolidated statements of cash flows, cash and cash equivalents are net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

The balance of bank overdraft was nil as of December 31, 2019 and 2018.

3.5 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost of manufactured goods is determined on the weighted average basis and, in the case of work in progress and finished goods, comprises direct materials, direct labor and an appropriate proportion of overheads based on the normal operating capacity. Cost of distributed goods is determined on the weighted average basis. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and the estimated cost necessary to make the sale.

F-13

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciates them accordingly.

Spare parts and servicing equipment are usually carried as inventory and recognized in profit or loss as consumed. However, major spare parts and stand-by equipment qualify as property, plant and equipment when an entity expects to use them for more than one year.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. A provision shall be recognized when:

(a) an entity has a present obligation (legal or constructive) as a result of a past event;

(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

If these conditions are not met, no provision shall be recognized.

Depreciation

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

►      Buildings	20-30 years
►      Building improvement	3-20 years
►      Machinery and equipment	4-20 years
►      Motor vehicles	3-10 years
►      Office equipment	2-20 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end, and adjusted prospectively, if appropriate.

F-14

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment (continued)

Impairment

If circumstances arise which indicate assets might be impaired, a review should be undertaken of their cash generating abilities through either use or sales. This review will produce an amount, which should be compared with the asset’s carrying value, and if the carrying value is higher, the difference must be written off as an impairment adjustment in the income statement. Further detailed methodology used for an impairment test is given in Note 3.11 - Impairment of non-financial assets.

3.7 Leases

From January 1, 2019

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, the Company assesses whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company, as a lessee, applies a single accounting model to recognize assets and liabilities for all leases, except for the lease term is 12 months or less or the underlying asset has a low value. The Company recognizes lease liabilities to make lease payment and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

►Land use right	2 to 37 years
►Buildings	2 to  3 years
►Motor vehicles	1 to  3 years
►Office equipment	5        years

If the ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies Note 3.11 impairment of non-financial assets.

F-15

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

(ii) Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payment to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payment) or a change in the assessment of an option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition exemption to its leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases for which the Company is a lessor are classified each of its leases as either an operating lease or finance lease.

Finance lease

Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset, the lease is classified as a finance lease. Amount due from lessees under finance lease are recognized as receivables at the amount of the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases.

Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the consolidated income statements due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

Property (land and/or a building, or part of a building) subject to an operating lease shall be recognized as an investment property.

F-16

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

Prior to January 1, 2019

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Finance leases

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the Company, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the income statement.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating leases

Operating lease payments are recognized as an operating expense in the income statement on a straight-line basis over the lease term.

Prepaid land lease payments under operating leases are initially stated at cost and subsequently recognized on the straight-line basis over the lease terms. The prepaid land lease payments are presented as current or non-current assets on the face of balance sheet, depending on the amount to be recognized less or more than twelve months after the reporting period.

3.8 Borrowing costs

Borrowing costs are required to be capitalized as part of the cost of the asset if they are directly attributable to the acquisition, construction or productions of a qualifying asset (whether or not the funds have been borrowed specifically). All other borrowing costs are recognized as an expense in the period in which they are incurred.

A qualifying asset is an asset that necessarily takes a substantial period to get ready for its intended use or sale.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.8 Borrowing costs (continued)

Borrowing costs include:

► interest expense calculated using the effective interest method;

► finance charges in respect of finance leases; and

► exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Exchange differences are generally regarded as borrowing costs only to the extent that the combined borrowing costs, including exchange differences, approximate the amount of borrowing costs on functional currency equivalent borrowings.

For specific borrowings, the borrowing costs eligible for capitalization are the actual borrowing costs incurred related to funds that are borrowed specifically to obtain a qualifying asset less any investment income earned on the temporary investment of those borrowings.

For general borrowings, the capitalization rate applied to borrowing costs on the consolidation level will be based on cash management strategy, which might be the weighted average of the group borrowings outstanding during the period.

3.9 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are carried at historical cost less provisions for depreciation and impairment. Additional costs incurred subsequent to the acquisition of an asset increase the carrying amount of the asset or recognized as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Company and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred. While land is not depreciated, all other investment property is depreciated based on the respective assets estimated useful lives ranging from 20 to 30 years using the straight-line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the property is derecognized.

International Accounting Standards (“IAS”) 40 requires disclosures about the fair value of any investment property recorded at cost. See Note 17 – Investment Properties.

F-18

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments

From January 1, 2018

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets

Classification and measurement

Except for certain trade receivables, the company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs directly attributable to the acquisition or issue of the financial asset. Financial instruments are subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL). The classification is based on two criteria: the objective of the company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).

The classification and measurement of financial assets is as follows:

► Debt instruments at amortized cost

Financial assets meeting both conditions: (i) held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and (ii)  the contractual terms of the financial assets give arise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost.

The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest rate (“EIR”) method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, and any impairment charges for such instruments are recognized in profit or loss.  

The Company’s financial assets at amortized costs include cash and cash equivalents, trade receivables, other receivable, and the receivable from related party.

► Debt instruments at FVOCI with gains or losses recycled to profit or loss on derecognition

Financial assets that are held within a business model whose objective is to hold financial assets in order to both collecting contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income, foreign exchange gains and losses, and any impairment charges on such instruments are recognized in profit or loss. All other fair value gains and losses are recognized in OCI. On disposal of these debt instruments, any related balance with FVOCI reserve is reclassified to profit or loss.

F-19

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

► Equity instruments designated at FVOCI with no recycling of gains or losses on derecognition

These instruments are undertakings in which the Company does not have significant influence or control, generally evidenced by ownership of less than 20% of the voting rights. The Company designates these investments on an instrument by instrument basis as equity securities at FVOCI because they represent investments held for long term strategic purposes.

Investments in equity instruments at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in OCI. These investments are not subject to impairment testing and upon disposal, the cumulative gain or loss in OCI is not reclassified to profit or loss on disposal. Dividends from such investments continue to be recognized in profit or loss when the Company’s right to receive payments is established.

The Company elected to classify irrevocably its non-listed equity investments under this category.

► Financial assets at fair value through profit or loss (FVPL)

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is recognized in profit or loss in the period in which it arises.

Even if an instrument meets the two requirements to be measured at amortized cost or FVOCI, the Company may, at initial recognition, irrevocably designate a financial asset as measured at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency.

Changes in the fair value of financial assets at FVPL are recognized in the statement of profit or loss as applicable.

Reclassification

When, and only, the Company changes its business model for managing financial assets it shall reclassify all affected financial assets according to the classification and measurement criteria discussed earlier. If the Company reclassifies financial assets, it shall apply the reclassification prospectively from the reclassification date and shall not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s consolidated balance sheet) when and only when:

(a)  the rights to receive cash flows from the asset have expired, or

(b) the Company has transferred its rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to one or more recipients under a “pass-through” arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates the extent to which, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset and has not transferred the control of the assets, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay (“the guarantee amount”).

(ii) Financial liabilities

Classification and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.  

All financial liabilities are recognized initially at fair value and, net of directly attributable transaction costs in the case of loans and borrowings.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-being loans and borrowings. These financial liabilities represent liabilities for goods and services provided to the Company and refund liabilities arising from contracts with customers. Trade payable are non-interest bearing and are normally settled on 60-day terms. The refund liabilities are rebate and discounts for the sale of goods to external customers in the ordinary course of the Company’s activities. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using the EIR method.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

F-21

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Financial liabilities (continued)

Classification and measurement (continued)

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iii) Foreign currency forward contracts

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently re-measured at fair value, and the gains or losses are recognized in profit or loss.

(iv) Impairment of financial instruments

The following financial instruments are included within the scope of the impairment requirements in IFRS 9 Financial Instruments:

(a)   Financial assets measured at amortized cost;

(b)   Financial assets mandatorily measured at FVOCI;

(c)   Loan commitments when there is a present obligation to extend credit (except where these are

        measured at FVPL);

(d)   Financial guarantee contracts to which IFRS 9 is applied (except those measured at FVPL);

(e)   Lease receivables within the scope of IFRS 16 Leases from January 1, 2019 and IAS 17 prior to

January 1, 2019.

(f)   Contract assets within the scope of IFRS 15 Revenue from Contracts with Customers.

From January 1, 2018, the Company assesses on a forward looking basis the expected credit losses (ECLs) associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With the exception of purchased or originated credit impaired financial assets, ECLs are required to be measured through a loss allowance at an amount equal to:

(a)  credit risk has not increased significantly since initial recognition – recognize 12-month ECLs , and recognize interest on a gross basis; or

(b) credit risk has increased significantly since initial recognition – recognize lifetime ECL, and recognize interest on a gross basis.  

A loss allowance for full lifetime ECLs is required for contract assets or trade receivables that do not constitute a financing transaction in accordance with IFRS 15. The Company may select its accounting policy for contract assets and trade receivables, containing a significant financing component and lease receivables to measure the loss allowance at an amount equal to lifetime ECLs.

F-22

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

For trade receivables and contract assets, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables, see Note 12(c) for further details.  

The Company recognizes in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

(v) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if when the following conditions are met: (i) there is a currently enforceable legal right to offset the recognized amounts; and (ii) there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(vi) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Recent arm’s length market transactions

► Current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

F-23

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Prior to January 1, 2018

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value presented as net loss on financial instruments (negative net changes in fair value) or net gain on financial instruments (positive net changes in fair value) in the income statement.

Derivatives not designated as hedging instruments

A derivative is a financial instrument or other contract within the scope of IAS 39 with all of the following characteristics:

(a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’);

(b) it requires no initial net investment, or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and

(c) it is settled at a future date.

Fair value is the measurement basis for all financial instruments meeting the definition of a derivative. Change in fair value of non-hedged item is recorded in profit and loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (“EIR”) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the income statement. The losses arising from impairment are recognized in the other operating expenses for receivables.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held to maturity when the Company has the positive intention and ability to hold them to maturity. After initial measurement, held to maturity investments are measured at amortized cost using the EIR, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance income or finance cost in the income statement. The losses arising from impairment are recognized in the income statement as finance costs.

F-24

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets

Available-for-sale financial assets include equity investments and debt securities. Equity investments classified as available for sale are those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions.

After initial measurement, available-for-sale financial assets are subsequently measured at fair value with unrealized gains or losses recognized as other comprehensive income in the available-for-sale reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the available-for-sale reserve to the income statement in finance costs. Interest earned whilst holding available-for-sale financial investments is reported as finance income using the EIR method.

For a financial asset reclassified out of the available-for-sale category, the fair value carrying amount at the date of reclassification becomes its new amortized cost and any previous gain or loss on the asset that has been recognized in equity is amortized to profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortized cost and the maturity amount is also amortized over the remaining life of the asset using the EIR. If the asset is subsequently determined to be impaired, then the amount recorded in equity is recognized in the income statement.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when:

► The rights to receive cash flows from the asset have expired, or

► The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

F-25

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Impairment of financial assets

The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if there is objective evidence of impairment as a result of one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

Financial assets carried at amortized cost

For financial assets carried at amortized cost, the Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current EIR.

The carrying amount of the asset is reduced through the use of an allowance account, and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as finance income in the income statement. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to finance costs in the income statement.

F-26

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Trade receivables impairment

For trade receivables, impairment assessment is performed firstly on an individual basis:

A financial asset is impaired (and impairment losses are determined) if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after initial recognition (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset that can be reliably estimated.

Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the holder about the following loss events:

► significant financial difficulty of the issuer or obligor;

► breach of contract, such as a default or delinquency in interest or principal payments;

► the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that would not otherwise be considered;

► it becoming probable that the borrower will enter bankruptcy or other financial reorganization;

► the disappearance of an active market for that asset because of financial difficulties (but not simply because the asset is no longer publicly traded ; or

► observable data indicating that there is a measurable decrease in the estimated future cash flows from a Company of financial assets since initial recognition, although the decrease cannot yet be identified with the individual assets in the Company, including:

• adverse changes in the payment status of borrowers in the Company (e.g. an increased number of delayed payments); or

• national or local economic conditions that correlate with defaults on the assets in the Company.

For trade receivables that have been individually assessed, but for which there is no objective evidence of impairment, the review for impairment is performed on a group basis, based on similar credit risk characteristics.

Available-for-sale financial assets

For available-for-sale financial assets, the Company assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.

In the case of equity investments classified as available-for-sale, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. ‘Significant’ is evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. The Company’s policy considers a significant decline to be one in which the fair value is below the weighted average original cost by more than 20%. A prolonged decline is considered to be one in which the fair value is below the weighted average original cost for a period of more than 12 months. When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement – is removed from other comprehensive income and recognized in the income statement. Impairment losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognized directly in other comprehensive income.

F-27

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets(continued)

In the case of debt instruments classified as available for sale, impairment is assessed based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement.

Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the income statement, the impairment loss is reversed through the income statement.

(iii) Financial liabilities

Financial liabilities initial recognition and measurement

Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-bearing loans and borrowings.

Subsequent measurement

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different  terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iv) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

F-28

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(v) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Using recent arm’s length market transactions

► Reference to the current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

3.11 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use. A CGU is the smallest group of assets that generates cash inflows that are largely independent of the cash flows from other assets or groups of assets. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognized in the income statement in expense categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated income statement.

F-29

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.12 Intangible assets

Computer software

The costs of acquiring software is capitalized separately as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software. Acquired software (licenses) is stated at cost less accumulated amortization and impairment losses.

Amortization of software applications is charged to operating expenses and/or cost on a straight-line basis over 2 to 10 years from the date they are available for use.

The residual values and useful lives are reviewed at each balance sheet date and adjusted, if appropriate.

3.13 Taxes

Current income tax

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities.  The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

► When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

► In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

► When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.13 Taxes

Deferred tax (continued)

► In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Uncertain tax position

An entity’s tax position might be uncertain; for example, where the tax treatment of an item of expense or structured transaction may be challenged by the tax authorities.

The Company considers each uncertain tax positions individually, by first considering whether each position taken in the tax return is probable of being sustained on examination by the taxing authority, and recognizing a liability for each item that is not probable of being sustained. The liability then is measured using a single best estimate of the most likely outcome. The uncertain tax positions are presented in the current tax liabilities.

The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition

The Company generates revenue primarily from the sales of wires and cables and supply, delivery and installation services to its customers (see Note 5(e)).

Revenue from contract with customers is recognized when (or as) control of the goods or services (i.e. assets) are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has concluded that it is the principal in its revenue arrangements because it controls the goods or services before transferring them to the customer. The Company has certain contracts with customers to perform fabrication services for its customers, converting customer-owned raw materials to wire and cable products. The Company is responsible for fulfilling the promise to provide the specified services.

Revenue is recognized as control is passed, either over time or at a point in time.

The Company recognizes revenue over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the entity performs;

(b) the Company’s performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced; or

(c) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.

If the Company does not satisfy its performance obligation over time, it satisfies it at a point in time. Revenue will therefore be recognized when control is passed at a certain point in time. Factors that may indicate the point in time at which control passes include, but are not limited to:

(a) the entity has a present right to payment for the asset;

(b) the customer has legal title to the asset;

(c) the entity has transferred physical possession of the asset;

(d) the customer has the significant risks and rewards of ownership of the asset; or

(e) the customer has accepted the asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price that is allocated to that performance obligation.

While deferred payment terms may be agreed in certain circumstances, the deferral never exceeds twelve months.  The Company applies the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Sales of wires and cables

Revenue from sales of wires and cables is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the wires and cables.

Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at a contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

The amount of consideration can vary because of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. The promised consideration can also vary if a Company’s entitlement to the consideration is contingent on the occurrence or non-occurrence of a future event.

The Company estimates an amount of variable consideration by using either of (a) the expected value, or (b) the most likely amount, depending on which the Company expects to better predict the amount of consideration to which it will be entitled.

At the end of each reporting period, the Company updates the estimated transaction price (including updating its assessment of whether an estimate of variable consideration is constrained) to represent faithfully the circumstances present at the end of the reporting period and the changes in circumstances during the reporting period. The Company allocates any subsequent changes in the transaction price to the performance obligations on the same basis as at contract inception.

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design. Revenue from SDI is recognized when the Company satisfies performance obligations which occurs when the control of either goods or services are transferred to the customer. Transfer of control to a customer can occur either over a period of time or at a single point in time, and the transfer of controls  depends on the scope of service work orders.

Service work order that involves supply of cables, installation and/or labor (e.g. maintenance or repairing service) are not distinct and are identified to be one performance obligation satisfied over time since the elements of the service work order are highly interrelated, customized and modified for the customer. The Company selects an input method (cost-to-cost) to measure the progress toward satisfaction of the performance obligation. The Company’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation may revise when there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Custodial and transportation services under bill and hold arrangement

A bill and hold arrangement is a contract under which an entity bills a customer for a product but the entity retains physical possession of the product until it is transferred to the customer at a point in time in the future. The Company identifies multiple performance obligations for its bill and hold arrangements, including sales of wires and cables, custodial service and transportation service.

Sales of wires and cables are recognized revenue when the products are placed into warehouse and the customer has accepted the products because the control of the products has transferred to the customer.

Custodial service revenue and transportation service are recognized over time. The transaction price allocated to these services is recognized as a contract liability at the time of the initial sales transaction and released on actual basis over the period of services.

Onerous operating contracts

Onerous contract is a type of contract in which the costs of meeting the obligations under the contract are higher than the economic benefits received under the contract.

The Company has contracts to supply products that may become onerous due to changing circumstances. The Company establishes the unavoidable costs of meeting the obligations under the contract as an accrued liability for the contractual responsibilities. For example, when rising copper price renders a contract onerous, the liability is calculated based on the difference between the copper price on the London Metal Exchange (the “LME”) at reporting date and the prices determined in the contracts, if the difference exceeds the profit of the original contract.  The unavoidable costs exceeding the profit of the contract is recognized in cost of sales or other operating expense based on the nature of the unavoidable costs.

Prior to January 1, 2018

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The specific recognition criteria described below must also be met before revenue is recognized.

Sales of manufactured goods and distributed products

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design.  Revenue of SDI is accounted for using the percentage-of-completion method, based on the customer certification of the length of cables laid with respect to the estimated total length of cables under the contract in accordance with IAS 11.

When the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is made. Provision for losses is recognized in the period in which they become evident. On a quarterly basis, the Company reviews the budget and forecast whether a loss provision should be recorded.

Bill and hold transaction

The Company recognizes revenue from sales of goods under bill and hold arrangements when they have yet to be delivered, since delivery is delayed at the buyer’s request and the buyer takes title and accepts the billing and that the usual terms of payment apply.

Moreover, the inventory is on hand, clearly identified and ready for delivery to the buyer at the time the revenue is recognized and it is highly probable that delivery will be made.

Sales of goods under bill and hold arrangements are the invoiced value, excluding value added tax after deducting discounts and allowances.

Rebates

Based on IAS 18, the amount of revenue arising on a transaction is usually determined by agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity. Consequently, where an entity provides sales incentives to a customer when entering into a contract these are usually treated as rebates and will be included in the measurement of (i.e. deducted from) revenue when the goods are delivered or services provided.

Provisions for rebates based on attainment of sales targets are estimated and accrued as each of the underlying sales transactions is recognized.

Provision for rebate should only be recorded when there is a contractually formal signed rebate contract exists.

At interim dates, if no reliable estimate can be made, the revenue recognized on the transaction should not exceed the consideration that would be received if the maximum rebates were taken. Therefore, the Company assumes that the customers will achieve the necessary sales volume target to earn the maximum rebate. The provisions are subject to continuous review and adjustment as appropriate based on the most recent information available to management.

As of the balance sheet date, the Company recalculates and adjusts the provision for rebate based on the actual sales.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.15 Foreign currencies

The Company’s consolidated financial statements are presented in USD, which is also the parent company’s functional currency. For each entity the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Differences arising on settlement or translation of monetary items are recognized in profit or loss with the exception of monetary items that are designated as part of the hedge of the Company’s net investment of a foreign operation. These are recognized in other comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively).

Translation to the presentation currency

The results and financial position of an entity whose functional currency are translated into a different presentation currency using the following procedures:

a. assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

b. income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) are translated at exchange rates at the dates of the transactions;

c. all resulting exchange differences shall be recognized in other comprehensive income; and

d. for equity items, the historical rate is used; therefore, these equity items are not retranslated.

PEWSC functional currency change

Due to the increased sales to the domestic market in recent years, USD no longer faithfully represented the underlying transactions events and conditions of PEWSC in 2018. Management concluded that RMB should be the functional currency of PEWSC beginning on the financial year January 1, 2018.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.16 Employee benefits

The Company has both defined contribution and defined benefit obligation. The liabilities of the Company arising from defined benefit obligations, and the related current service cost, are determined using the projected unit credit method.

For defined benefit plans, the cost charged to the income statement consists of current service cost, net interest cost and past service cost. Remeasurements comprising of actuarial gains and losses are recognized in the period in which they occur, directly in other comprehensive income. They are included in other comprehensive income in the statement of changes in equity and in balance sheet. Remeasurements are not reclassified to profit or loss in subsequent periods. Contributions to defined contribution plans are charged to the income statement as incurred.  All past service costs are recognized at the earlier of when the amendment occurs.

Compensated absence

The cost of accumulating paid absences is recognized when employees render the service that increases their entitlement to future paid absences.

The cost of accumulating paid absences is measured as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period.

3.17 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the period, adjusted for own shares held.

In calculating diluted EPS, the number of shares should be that used in calculating the basic EPS, plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential common shares into common shares. The earnings figure should be that used for basic EPS adjusted to reflect any post-tax effects from changes that would arise if the potential shares outstanding in the period were actually issued.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.18 Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity.  No gain or loss is recognized in the profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in additional paid-in capital. Voting rights related to treasury shares are nullified and no dividends are allocated to them.

3.19 Investments in an associate

The Company’s investment in its associates are accounted for using the equity method. An associate is an entity in which the Company has significant influence. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment.

The income statement reflects the Company’s share of the results of operations of the associate. Any change in other comprehensive income of those investees is presented as part of the Company’s other comprehensive income.  When there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate.

The Company’s share of profit or loss of an associate is shown on the face of the income statement and represents profits or loss after tax and non-controlling interests in the subsidiaries of the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company.

After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in associates is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in share of losses of associates in the income statement.

Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.20 Government grant

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as other income on a systematic basis over the periods that the related costs, which it is intended to compensate, are expensed.  When the grant relates to an asset, it is recognized as a liability in equal amounts over the expected useful life of the related asset.

The government grants received during 2019 and 2018 were immaterial. See Note 22 for further details.

3.21 Non-current assets held for sale

The Company classifies non-current assets and disposal groups as held for sale/distribution to owners if their carrying amounts will be recovered principally through a sale/distribution rather than through continuing use. Non-current assets and disposal groups are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.  

Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortized.

When equity method investments are classified as held for sale, the investor discontinues the use of the equity method from the date that the investment (or the portion of it) is classified as held for sale; instead, the associate or joint venture is then measured at the lower of its carrying amount and fair value less cost to sell.

3.22 Finance and other income

Interest income

Interest revenue shall be calculated by using the effective interest method. This shall be calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the entity shall apply the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Rental income

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in revenue due to its operating nature.

Dividends

Revenue is recognized when the company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Revenue recognition - identifying single performance obligation in SDI projects  

SDI projects comprise various activities such as supply cables, installation, jointing services and testing services. Those tasks are activities to fulfil the cable management service (supply and installation) and not a separate promise within the context of the contract. The Company determines the supply cables and installation services are not capable of being distinct and identifies to be one performance obligation because of (i) the customer could not benefit from the installed cables on its own, neither using it or to sell it for an amount greater than scrap value; (ii) the Company is providing a significant integration service, and it would not be able to fulfil its promise to transfer the cables separately from its promise to the subsequent installation; (iii) the cables and installation are highly interrelated, and the customer could not benefit from the cables being delivered without subsequent installation.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Impairment of non-financial assets

At each reporting date or whenever events indicate that the asset’s value has declined or significant changes in the market with an adverse effect have taken place, the Company assesses whether there is an indication that an asset in the scope of IAS 36 may be impaired. If any indication exists, the Company completes impairment testing for the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or CGU is the higher of fair value less costs to sell and its value in use. The fair value less costs of disposal calculation is based on available data from binding sale arrangements, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposal of the assets. The value in use is measured at the net present value of the future cash flows the entity expects to derive from the asset or CGU. Cash flow projection involves subjective judgments and estimates which include the estimated useful lives of property, plant and equipment, capacity that generates future cash flows, capacity of physical output, potential fluctuations of economic cycle in the industry and the Company’s operating situation. See Note 15 – Property, Plant and Equipment.

Fair value of financial instruments

Where the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including income approach (for example, the discounted cash flows model) or the market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 11 for more details.

Measurement of ECL allowance for trade receivables

The Company applies the IFRS 9 simplified approach to measure lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of the sales over a period of 36 month before December 31, 2019 and the historical credit loss experience within this period. The historical loss rates are adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of the customers to settle the receivables. The Company has identified the default rate of the countries where it sells the goods and services as the most relevant factor and adjusts the historical loss rates based on the expected changes accordingly.

Refer to Note 12 and Note 27 for more information regarding the impairment of trade receivables and the related credit risks.

Net realizable value of inventory

Net realized value is the estimated selling price in the ordinary course of business less estimated costs to completion and the estimated costs necessary to make the sale. Management makes reference to actual sales prices after reporting date when making their estimate of net realizable value.

Refer to Note 13 for more information regarding the net realizable value of inventory.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the taxing authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

As of December 31, 2019, the Company has $20,580 (2018: $16,762) of tax losses carried forward. These losses related to subsidiaries that have a history of losses, do not expire and may not be used to offset taxable income elsewhere in the Company except for $546 (2018: $644) that will be realized. The subsidiaries do not have any tax planning opportunities available that could support the recognition of these losses as deferred tax assets. On this basis, the Company has determined that it cannot recognize deferred tax assets on the tax losses carried forward.

If the Company was able to recognize all unrecognized deferred tax assets, profit and equity would have increased by $5,068 (2018: $3,876; 2017: $3,947). Further details on taxes are disclosed in Note 8.

Post-employment benefits under defined benefit plans

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rate of 1 to 13 times of their final monthly salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees at rates of 1 to 26 times of their final monthly salary.

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexity of the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the inactive corporate bond trading in Thailand, taken into account the yields on Thai Government Bonds and extrapolated maturity corresponding to the expected duration of the defined benefit obligation.

The mortality rate is based on most recent mortality investigation on policyholders of life insurance companies in Thailand. Future salary increases and pension increases are based on expected future inflation rates derived from external economic data, together with historical experience of Charoong Thai.

Further details about the assumptions used, including a sensitivity analysis, are given in Note 21.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Revenue recognition of SDI projects

Changes in percentage of completion would result in changes in contract revenue and costs recognized in the statement of comprehensive income during the year. Significant estimation by management is also required in assessing the recoverability of the contracts based on estimated total contract revenue and contract costs.  In making the estimation, management’s evaluation is based on the actual level of work performed and past experience.

The carrying amount of the Company’s gross amounts due from customers for contract work-in-progress is disclosed in Note 14.

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ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS

4.1 Recently applied accounting pronouncements

(a) New and amended standard applied effective in 2019

The Company has initially applied IFRS 16 from January 1, 2019. The nature and effect of the changes as a result of application of the new accounting standard is described below.

IFRS 16 Leases

IFRS 16 supersedes IAS 17, Leases and related interpretation, and it sets out the requirements for the recognition, measurement, presentation and disclosure of leases. IFRS 16 provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting still uses the dual classification approach to classify each lease as an operating lease or a finance lease.

The Company applied IFRS 16 initially on January 1, 2019 using the modified retrospective method. In accordance with the IFRS 16 transition guidance, the cumulative effect of adopting the new standard is recognized as an adjustment to the opening balance of retained earnings at January 1, 2019, with no restatement of comparative information.

Upon the application of IFRS 16 on January 1, 2019, the Company applied the following practical expedients permitted by the standard:

►the use of a single discount rate to a portfolio of leases with reasonably similar characteristics

► the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases

► the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and

► the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

F-44

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

The significant effects of adopting the IFRS 16 as of January 1, 2019 are summarized as below:

Affected items of consolidated balance sheet	As of December 31, 2018		Effect of application of new standards			As of January 1, 2019		Remarks
	US$’000		US$’000			US$’000
Assets
Prepayments		1,140		(59	)		1,081	B
Lease assets*		66		(66	)		—	A
Right-of-use assets		—		3,801			3,801	A, B, C
Prepaid land lease payments		978		(978	)		—	B
Total affected assets		2,184		2,698			4,882
Liabilities
Financial lease liabilities - current		44		362			406	C
Financial lease liabilities - non-current		46		2,336			2,382	C
Total affected liabilities		90		2,698			2,788
* included in the line "Property, plant and equipment" in the balance sheet

A. Lease assets of $66 previously recognized under finance leases were reclassified from property, plant and equipment to right-of-use assets.

B. Prepaid land lease payments of $59 and $978 previously classified as prepayment under current assets and prepaid land lease payments under non-current assets were reclassified to right-of-use assets.

C.  The Company recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases under IAS 17, except for short-term leases and leases of low-value asset. The Company recognized right-of-use assets based on the amount equal to the lease liabilities. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at January 1, 2019.

Additionally, operating cash flows increased and financing cash flows decreased by $354 for the year ended December 31, 2019 as repayments on the principal portion of non-finance lease liabilities were classified as cash flows from financing activities for the year ended December 31, 2019, where previously it was classified as operating cash flows.

F-45

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

Reconciliation of IAS 17 non-cancelled operating lease commitment to IFRS 16 lease liability:

	2019
	US$’000
Operating lease commitments disclosed as at December 31, 2018		3,263
Add: finance lease liabilities recognized as at December 31, 2018		90
Discounted using the incremental borrowing rate at January 1, 2019		(380	)
Recognition exemption for:
Short-term leases		(169	)
Leases of low-value assets		(16	)
Lease liabilities recognized as at January 1, 2019		2,788

         As of January 1, 2019, the weighted average discount rate was 3.48%.

(b) New and amended standard applied effective in 2018

The Company has initially applied IFRS 15 and IFRS 9 from January 1, 2018. The nature and effect of the changes as a result of adoption of these new accounting standard are described below.

IFRS 15 Revenue from contracts with customers

IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related interpretation, and it applies with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires the revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.

The Company adopted IFRS 15 using the modified retrospective method of adoption with the date of initial application of January 1, 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Company elected to apply the standard retrospectively only to contracts that are not completed as of January 1, 2018. The Company opted to apply the practical expedient for contract modification to all modifications that occurred before the date of initial application.

The cumulative effect of initially applying IFRS 15 is recognized at the date of initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under IAS 11, IAS 18 and related interpretations.

IFRS 9 Financial Instruments

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

F-46

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

The Company has elected not to restate prior period financial statements using the modified retrospective approach under IFRS 9 as of January 1, 2018. The comparative information has not been restated which continues to be reported under IAS 39. Differences arising from the adoption of IFRS 9 have been recognized directly in retained earnings and other components of equity.

The significant effects of adopting the new standards as of January 1, 2018 are summarized as below:

Affected items of consolidated balance sheet	As of December 31, 2017		Effect of application of new standards			As of January 1, 2018		Remarks
	US$’000		US$’000			US$’000
Assets
Contract assets - current		—		162			162	A
Gross amounts due from customers for contract work-in-progress		162		(162	)		—	A
Trade receivables		112,403		16			112,419	C
Financial assets – available for sale		2,747		(2,747	)		—	B
Financial assets at fair value through other comprehensive income		—		2,747			2,747	B
Deferred income tax assets		3,022		4			3,026	D
Total affected assets		118,334		20			118,354
Liabilities
Contract liabilities - current		—		113			113	E
Total affected liabilities		—		113			113
Equity
Retained earnings		53,350		(93	)		53,257	B, C, D, E
Total affected equity		53,350		(93	)		53,257
Total affected liabilities and equity		53,350		20			53,370

A. In accordance with IFRS 15, the Company reclassified gross amounts due from customers for contract work-in-progress in the amount of $162 to contract assets as of January 1, 2018.

B. Equity investments in non-listed equity investments previously classified as available-for-sale financial assets were reclassified and measured as financial assets at FVOCI because these investments are held as long-term strategic investments purpose. As a result, assets with fair value of $2,747 were reclassified from available-for-sale financial assets to financial assets at FVOCI and fair value gains of $1,717 were reclassified from the available-for-sale financial assets reserve to the FVOCI reserve on January 1, 2018, of which $843 was related to non-controlling interests.

C. The application of IFRS 9 has fundamentally changed the Company’s accounting for impairment losses for trade receivable by replacing IAS 39’s incurred loss approach with a forward looking ECL approach.  Upon application of IFRS 9, the Company reversed impairment on trade receivables by $16. As a result, trade receivables and retained earnings increased by $16.

D. The Company recognized deferred income tax assets for the temporary differences arising from the adjustments upon initial application of IFRS 9 and IFRS 15. Deferred income tax assets and retained earnings both increased by $4.

F-47

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

E. In accordance with IFRS 15, the Company’s performance obligation to provide custodial and transportation services are recognized as contract liabilities under bill-and-hold agreements. After adopting IFRS 15, the Company recognizes revenue from custodial services over time and transportation revenue upon delivery. As of January 1, 2018, the balance of contract liabilities increased by $113, and retained earnings decreased by $113.

The following tables summarized the impacts of adopting IFRS 15 on the consolidated income statement for the year ended December 31, 2018 and its consolidated balance sheet as of December 31, 2018 for each of the line items affected. There was no material impact on the consolidated statement of cash flows for the year ended December 31, 2018.

Affected items of consolidated income statement for the year ended December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Revenue		425,940			(26	)		425,914
Gross profit		36,248			(26	)		36,222
Operating profit		8,684			(26	)		8,658
Profit before tax		11,332			(26	)		11,306
Income tax expense		(3,886	)		5			(3,881	)
Profit for the year		7,446			(21	)		7,425

Affected items of consolidated balance sheet as of December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Assets
Contract assets - current		1,460			(1,460	)		—
Gross amounts due from customers for contract work-in-process		—			1,460			1,460
Deferred income tax assets		3,919			(18	)		3,901
Total affected assets		5,379			(18	)		5,361
Liabilities
Other current liabilities		3,272			(88	)		3,184
Total affected liabilities		3,272			(88	)		3,184
Equity
Retained earnings		55,016			34			55,050
Foreign currency translation reserve		(15,251	)		1			(15,250	)
Non-controlling interests		71,788			35			71,823
Total affected equity		111,553			70			111,623
Total affected liabilities and equity		114,825			(18	)		114,807

F-48

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

Prior to the application of IFRS 15, the Company recognized revenue based on the accounting treatment of the sales of goods for bill and hold transactions. In accordance with IFRS 15, the Company allocated the transaction prices to those custodial and transportation services under bill and hold transactions, and recognizes revenues from custodial and transportation services only when the services fulfilled. As a result, the Company will recognized contract liabilities and adjusted related deferred income tax assets and equity accordingly.

Reclassifications are made to reflect the terms used under IFRS 15. Amounts previously presented in “Gross amounts due from customers for contract” are reclassified into “contract assets-current”.

4.2 New accounting pronouncements not effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below.  The Company intends to adopt these standards, if applicable, when they become effective.

Sales or contribution of assets between an investor and its associate or joint venture-Amendments to IFRS 10 and IAS 28

In September 2014, the IASB issued amendments to IFRS 10, Consolidated Financial Statements and IAS 28, Investments in Associates and Joint Ventures, entitled Sales or Contribution of Assets between an Investor and its Associate or Joint Ventures. These narrow scope amendments clarify, that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not), and a partial gain or loss is recognized when a transaction involves assets that do not constitute a business. On December 17, 2015, the IASB issued an amendment that postpones the application of the amendments to IFRS 10 and IAS 28 indefinitely.

The Company does not expect the amendments to have an impact on its consolidated financial statements.

Definition of a business: Amendments to IFRS 3

In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of activities and assets a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. The amendment applies to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted.

Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Company will not be affected by these amendments on the date of transition.

Definition of material: Amendments to IAS 1 and IAS 8

In October 2018, the IASB issued amendments of IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of “material” across the standards and to clarify certain aspects of the definition. The new definition states that “information is material if omitting, misstating or obscuring if could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific report entity.” The amendments take effect for materiality judgements made in annual periods beginning on or after January 1, 2020, and are applied prospectively. Earlier application is permitted (the entity must disclose that fact).

The Company does not expect the amendments to have an impact on its consolidated financial statements.

F-49

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.2 New accounting pronouncements not effective (continued)

Classification of liabilities as current or non-current: Amendments to IAS 1

On January 23, 2020, the IASB issued a narrow-scope amendment to IAS 1 to clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period.

They:

► clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting date and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability;

► clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and

► make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and are to be applied retrospectively. Earlier application is permitted.

The amendment could affect the classification of liabilities, particularly for previously considered management’s intention to determine classification and for some liabilities that can be converted into equity. The Company is based on the contractual arrangement in place at the reporting date for the classification, thus, the Company does not expect the amendment to have an impact on its consolidated financial statements.  

F-50

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION

5(a)Basis of segments

Each segment engages in business activities which generate revenues and incur expenses. Based upon the information provided to the Company’s chief operating decision maker (“CODM”) to make decisions on resource allocation and operating performance evaluation, the Company has determined that it has three reportable segments.  

The Company organizes its business segments along reporting lines and has three operating segments, consisting of the North Asia region, the Thailand region and the Rest of the World (“ROW”) region. The Company considers the economic characteristics similarity in determining the reportable segments.

As the three operating segments exceed the quantitative thresholds, they are also reportable segments. The accounting policies for segment information, including transactions entered between segments are generally the same as those described in the summary of significant accounting policies.

During 2018, CODM changed the measures of profitability by operating segments, replacing gross profit and gross profit margin with operating profit (loss) and operating profit (loss) margin. This change reflects a better explanation of the elements of performance. This change has been applied to comparative figures for 2017 presented in this document.

Inter-segment revenues are eliminated upon consolidation and reflected in the “adjustments and eliminations” column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

5(b)Information about reportable segments

Year ended December 31, 2019	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		76,575			172,379			89,206			338,160			—			338,160
Inter-segment		—			6			—			6			(6	)		—
Segment operating profit/(loss)		1,237			3,042			(1,659	)		2,620			(2,884	)		(264	)
Depreciation and amortization		(811	)		(2,842	)		(1,613	)		(5,266	)		(58	)		(5,324	)
Depreciation from right of use assets		(44	)		—			(441	)		(485	)		(22	)		(507	)
Impairment of property, plant and equipment		(549	)		3			—			(546	)		—			(546	)
Interest income		57			403			45			505			1			506
Interest expense		(239	)		(481	)		(102	)		(822	)		(23	)		(845	)
Income tax (expense)/benefit		(561	)		(1,235	)		105			(1,691	)		(366	)		(2,057	)
Other disclosures
Capital expenditure		552			4,590			242			5,384			78			5,462

F-51

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION (continued)

5(b)Information about reportable segments (continued)

Year ended December 31, 2018	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		103,647			213,424			108,869			425,940			—			425,940
Inter-segment		4,076			392			6,308			10,776			(10,776	)		—
Segment operating profit/(loss)		5,234			9,539			(2,306	)		12,467			(3,143	)		9,324
Depreciation and amortization		(829	)		(2,836	)		(1,333	)		(4,998	)		(20	)		(5,018	)
Impairment of property, plant and equipment		—			(11	)		—			(11	)		—			(11	)
Interest income		117			611			42			770			(288	)		482
Interest expense		(397	)		(748	)		(34	)		(1,179	)		(21	)		(1,200	)
Income tax (expense)/benefit		(1,212	)		(2,152	)		384			(2,980	)		(906	)		(3,886	)
Other disclosures
Capital expenditure		1,188			2,859			451			4,498			10			4,508

Year ended December 31, 2017	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		101,533			206,485			117,197			425,215		—				425,215
Inter-segment		890			1,044		—				1,934			(1,934	)		—
Segment operating profit/(loss)		3,256			11,053			1,205			15,514			(3,074	)		12,440
Depreciation and amortization		(979	)		(2,760	)		(1,314	)		(5,053	)		(3	)		(5,056	)
Impairment of property, plant and equipment		(213	)		(10	)	—				(223	)	—				(223	)
Interest income		51			845			61			957			(81	)		876
Interest expense		(428	)		(553	)		(52	)		(1,033	)		67			(966	)
Income tax (expense)/benefit		(1,395	)		(2,727	)		(342	)		(4,464	)		(676	)		(5,140	)
Other disclosures
Capital expenditure		991			3,332			590			4,913			—			4,913

Adjustments and eliminations

Corporate expenses, gain on disposal of investment, and share of gain (loss) of associates are not allocated to individual segments as the underlying instruments are managed on a group basis.

F-52

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION (continued)

5(c)Reconciliation of segment operating profit (loss)

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Segment operating profit		2,620			12,467			15,514
Corporate expenses adjustments and eliminations		(2,884	)		(3,143	)		(3,074	)
		(264	)		9,324			12,440
Other operating income		385			805			5,084
Other operating expenses		(770	)		(1,445	)		(909	)
Operating profit		(649	)		8,684			16,615
Finance costs		(1,012	)		(1,378	)		(1,221	)
Finance income		506			482			876
Share of loss of associates		(3	)		(3	)		(3	)
Loss on liquidation of subsidiary		—			—			(261	)
Exchange gain		1,550			1,741			2,784
Other income		717			1,817			214
Other expense		(3	)		(11	)		(336	)
Profit before tax		1,106			11,332			18,668

5(d)Segment assets and liabilities

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Total assets		49,379		165,579		76,618		291,576		7,335		298,911
Total liabilities		14,212		26,706		21,834		62,752		7,724		70,476
As of December 31, 2018
Total assets		54,250		173,398		70,574		298,222		7,576		305,798
Total liabilities		20,169		42,887		14,015		77,071		6,911		83,982

Reconciliation of assets:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating assets		291,576			298,222
Corporate and other assets		2,466			2,869
Investment in associates		935			864
Deferred tax assets		3,939			3,919
Inter-segment elimination		(5	)		(76	)
Total assets		298,911			305,798

F-53

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION (continued)

5(d)Segment assets and liabilities (continued)

Reconciliation of liabilities:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating liabilities		62,752			77,071
Corporate liabilities		3,591			3,019
Deferred tax liabilities		4,139			3,925
Inter-segment elimination		(6	)		(33	)
Total liabilities		70,476			83,982

5(d-1)The application of IFRS 16 increased the segment assets and liabilities as below:

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Assets		—		—		2,506		2,506		192		2,698
Liabilities		—		—		2,552		2,552		205		2,757

5(e)Disaggregated revenues and geographical information

The Company’s disaggregated revenues transitioned from reporting of Manufactured Products, Distributed Products and SDI segments in 2017 to reporting of Power, Enamel and Others product lines in 2018. The updated reporting of results best reflects the relevant information and granularity desired by all stakeholders to conduct decisions and operations. Reported results of Power, Enamel and Others product lines provide improved understanding and insight to the performance of the Company and its products and services.

Revenue from external customers is summarized as the following major categories:

Year ended December 31, 2019	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		49,493		78,686		128,179		—		128,179
Enamel		76,575		102,997		—		179,572		—		179,572
Others*		—		19,889		10,520		30,409		—		30,409
		76,575		172,379		89,206		338,160		—		338,160
Timing of revenue recognition
At a point in time		76,575		172,031		82,584		331,190		—		331,190
Over time		—		348		6,622		6,970		—		6,970
		76,575		172,379		89,206		338,160		—		338,160
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

F-54

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION (continued)

5(e)Disaggregated revenues and geographical information (continued)

Year ended December 31, 2018	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		64,771		92,130		156,901		—		156,901
Enamel		103,647		114,247		—		217,894		—		217,894
Others*		—		34,406		16,739		51,145		—		51,145
		103,647		213,424		108,869		425,940		—		425,940
Timing of revenue recognition
At a point in time		103,647		213,212		92,133		408,992		—		408,992
Over time		—		212		16,736		16,948		—		16,948
		103,647		213,424		108,869		425,940		—		425,940
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

The Company recognizes no revenues from performance obligations satisfied in previous years in 2019 and 2018.

	Year ended December 31,
	2017
	US$’000
Manufactured Products		361,853
Distributed Products		41,985
SDI		21,377
Total Revenue		425,215

Revenue from external customers is attributed to individual countries based on the customer’s country of domicile and is summarized as follows:

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Revenues from external customers
Thailand		116,160		154,207		158,565
Singapore		46,218		63,781		76,453
Australia		34,447		37,594		34,901
China		81,813		111,917		108,561
India		36,121		45,008		31,291
Southeast Asia		23,390		13,339		15,394
Northeast Asia		11		94		50
		338,160		425,940		425,215

Countries in the Southeast Asia region include Cambodia, Vietnam, Indonesia, Brunei, Laos, Malaysia and Myanmar; countries in the Northeast Asia region include Japan and South Korea.

F-55

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. SEGMENT INFORMATION (continued)

5(e)Disaggregated revenues and geographical information (continued)

Major customer information

Revenue from one customer in the Thailand region amounted to $23,118 represented 6.84% of 2019 consolidated revenue. Revenue from another customer in the ROW region amounted to $37,197 in 2018 and $36,518 in 2017 represented 8.73% and 8.59% of 2018 and 2017 consolidated revenue, respectively.

Non-current assets information

The total non-current assets other than financial instruments and deferred tax assets broken down by the country of domicile are summarized as follow:

	As of December 31,
	2019		2018
	US$’000		US$’000
Non-current assets by country:
Thailand		32,723		28,407
Singapore		7,869		5,868
China		5,661		6,592
Australia		2,661		2,684
Other		290		54
Total non-current assets		49,204		43,605

F-56

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. MATERIAL PARTLY-OWNED SUBSIDIARIES

6(a)Material subsidiaries

The Company has subsidiaries with material non-controlling interests (“NCI”). Information regarding the subsidiaries is as follows:

Proportion of equity interest held by NCI:

	Country of incorporation	As of December 31,
Name	and operation	2019	2018
Charoong Thai and its subsidiaries (“CTW Consolidated”)	Thailand	49.07%	49.07%
SYE	China	31.25%	31.25%

From APWC group perspective, SYE is considered an entity with material non-controlling interests and should be separated from Charoong Thai group.

6(b)Summarized financial information about the subsidiaries

The summarized financial information of the subsidiaries is provided below. This information is based on amounts before inter-company eliminations:

Summarized income statements	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		172,385			213,424			207,529
Profit before tax		4,352			11,736			12,985
Income tax expense		(1,235	)		(2,150	)		(2,727	)
Profit for the year		3,117			9,586			10,258
Other comprehensive income		9,194			3,965			10,182
Total comprehensive income		12,311			13,551			20,440
Profit attributable to non-controlling interests		1,378			4,509			4,896
Dividends paid to non-controlling interests		2,763			2,181			1,943
Summarized income statements	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		20,743			33,790			33,533
Loss before tax		(2,272	)		(837	)		(161,011	)
Income tax expense		—			—			—
Loss for the year		(2,272	)		(837	)		(161,011	)
Other comprehensive income/(loss)		(46	)		(255	)		345
Total comprehensive loss		(2,318	)		(1,092	)		(160,666	)
Loss attributable to non-controlling interests		(710	)		(262	)		(15	)
Dividends paid to non-controlling interests		—			—			—

F-57

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. MATERIAL PARTLY-OWNED SUBSIDIARIES (continued)

Summarized balance sheets	CTW consolidated						SYE
	As of December 31,						As of December 31,
	2019			2018			2019			2018
	US$’000			US$’000			US$’000			US$’000
Current assets		127,539			141,761			9,038			11,293
Non-current assets		49,009			42,691			1,385			1,881
Current liabilities		(15,350	)		(33,715	)		(8,239	)		(8,671	)
Non-current liabilities		(11,358	)		(8,161	)		—			—
Total equity		149,840			142,576			2,184			4,503
Equity attributable to:
Equity holders of the parent		76,216			73,621			1,502			3,096
Non-controlling interests		73,624			68,955			682			1,407

Summarized cash flow information	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		10,776			38,784			(24,018	)
Investing		2,319			(9,137	)		6,589
Financing		(20,260	)		(12,585	)		12,836
Effect of changes in exchange rate on cash		2,376			(102	)		1,678
Net (decrease) increase in cash and cash equivalents		(4,789	)		16,960			(2,915	)
Summarized cash flow information	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		5,135			3,648			833
Investing		(165	)		(277	)		(252	)
Financing		(1,847	)		(4,005	)		(563	)
Effect of changes in exchange rate on cash		(28	)		(34	)		65
Net increase (decrease) in cash and cash equivalents		3,095			(668	)		83

F-58

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. INCOME AND EXPENSES ITEMS

7(a)Other operating income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Gain on disposal of property, plant, and equipment		88		93		99
Reversal of allowance for trade receivable		122		—		—
Gain on disposal of assets classified as held for sale		—		—		4,525
Reversal of allowance for foreseeable loss		—		507		—
Other operating income – others		175		205		460
Total other operating income		385		805		5,084

On December 13, 2016, the Company entered into an agreement to sell its buildings and land use rights at its Ningbo Pacific subsidiary. The transaction was completed in March 2017 for a consideration of RMB 60.6 million, or approximately US$8.8 million (including $0.8 million tax related expenses). The Company recognized gain on disposal of assets classified as held for sale amounted $4,525 for the year ended December 31, 2017.

7(b)Other operating expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Allowance for trade receivables for related parties		—		1		27
Allowance for trade receivables		—		570		302
Allowance for other receivable		30		53		—
Allowance for foreseeable loss		193		—		276
Impairment of property, plant, and equipment		546		11		223
Other operating expenses – others		1		810		81
Total other operating expenses		770		1,445		909

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.

F-59

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. INCOME AND EXPENSES ITEMS (continued)

7(c)Finance costs

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest on debts and borrowings		754		1,196		962
Interest on leases liabilities		91		4		4
Total interest expenses		845		1,200		966
Banking charges		167		178		255
Total finance costs		1,012		1,378		1,221

7(d)Finance income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest income		506		482		876
Total finance income		506		482		876

7(e)Other income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Other income		462		1,712		114
Dividend income		109		105		100
Net gain on financial instruments		146		—		—
Total other income		717		1,817		214

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.

7(f)Other expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Others		3		9		4
Net loss on financial instruments		—		2		332
Total other expenses		3		11		336

F-60

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Depreciation – tangible assets		4,089		4,162		4,148
Depreciation – right-of-use assets		135		—		—
Amortization – intangible assets		10		9		9
Operating lease expenses		3		16		15
Included in selling expenses:
Depreciation – tangible assets		93		141		132
Depreciation – right-of-use assets		112		—		—
Amortization – intangible assets		1		1		—
Operating lease expenses		1		184		193
Included in general and administrative expenses:
Depreciation – tangible assets		552		598		657
Depreciation – right-of-use assets		260		—		—
Amortization – intangible assets		39		34		40
Amortization – prepaid land lease payment		—		38		35
Depreciation – investment property		33		35		35
Operating lease expenses		170		200		201
		5,498		5,418		5,465

7(h)Employee benefits expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Wages and salaries		14,429		13,674		13,474
Labor and health insurance costs		126		162		168
Pension costs		994		890		869
Other employment benefits		816		892		817
Included in selling expenses:
Wages and salaries		3,495		3,685		3,641
Labor and health insurance costs		12		14		14
Pension costs		330		324		325
Other employment benefits		50		68		64
Included in general and administrative expenses:
Wages and salaries		8,117		8,818		8,364
Labor and health insurance costs		85		224		219
Pension costs		757		671		656
Director fees		640		1,046		1,119
Other employment benefits		286		325		342
Total employee benefits expenses		30,137		30,793		30,072

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

F-61

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX

Under current Bermuda law, the Company is not subject to tax on income or capital gains, nor is withholding tax of Bermuda imposed upon payments of dividends by the Company to its shareholders.

The Company’s investments in the Operating Subsidiaries are held through subsidiaries incorporated in the British Virgin Islands (“BVI”). Under current BVI law, dividends from the BVI subsidiaries’ investments are not subject to income taxes and no withholding tax is imposed on payments of dividends by the BVI subsidiaries to the Company.

The Operating Subsidiaries and equity investees are governed by the income tax laws of Singapore, Thailand, Australia and the PRC.  The corporate income tax rate in Singapore was 17% for each of the three years ended December 31, 2019, and there is no withholding tax on dividends applicable to the Company.  For Thailand, the statutory corporate income tax rate was 20% for each of the three years ended December 31, 2019 and a withholding tax of 10% is levied on dividends received by the Company. Charoong Thai is listed on Stock Exchange of Thailand (“SET”). In Australia, the corporate income tax rate was 30% for 2016/2017, 2017/2018 and 2018/2019 tax years. The applicable corporate income tax rate for the subsidiaries in the PRC was 25% for each of the three years ended December 31, 2019.

Dividends received from the Operating Subsidiaries and equity investees may be subjected to withholding taxes. Under the current Singapore corporate tax system, dividends paid by a Singapore resident company is tax exempt, and is not subject to withholding taxes. In Australia, dividends paid to non-residents are exempt from dividend withholding taxes except when dividends are paid out of profit that is not taxed by Australian income tax (i.e. unfranked dividends). For Thailand, dividends paid by a company to any individual or corporate payee overseas are subject to a withholding tax of 10%. Under the Corporate Income Tax Law of the PRC, dividend distribution of profits to foreign investor(s) is subject to withholding tax of 10%.

F-62

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX (continued)

The major components of income tax expenses for the years ended December 31, 2019, 2018 and 2017 are:

	2019			2018			2017
	US$’000			US$’000			US$’000
Consolidated income statements
Current income tax:
Current income tax charge		1,699			4,068			4,785
Previously unrecognized tax loss used to reduce current income tax		—			(128	)		(1,066	)
Adjustments for current income tax of prior years		(16	)		1			348
Total current income tax		1,683			3,941			4,067
Deferred tax expenses/(benefits):
Relating to origination and reversal of temporary differences		374			243			1,210
Relating to change in tax rate		—			—			—
Previously unrecognized tax loss used to reduce deferred tax expenses		—			(298	)		(137	)
Total deferred tax expenses/(benefits)		374			(55	)		1,073
Income tax expense reported in the income statement		2,057			3,886			5,140
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		334			(84	)		(16	)
Effect of change in tax rate		—			—			—
Net loss on actuarial gains and losses
Recognized during the year		(345	)		(82	)		(154	)
Effect of change in tax rate		—			—			—
Income tax benefits charged to other comprehensive (loss) income		(11	)		(166	)		(170	)

F-63

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX (continued)

The parent company’s tax is filed in Bermuda, which does not have a statutory tax rate. The provision for income taxes differs based on the tax incurred by the Operating Subsidiaries, in their respective jurisdiction. The Company determines its statutory tax rate based on its major commercial domicile that is its subsidiaries in Thailand. The reconciliation of the statutory tax rate and the Company’s effective tax rate is as follows:

	2019			2018			2017
	US$’000			US$’000			US$’000
Profit before tax		1,106			11,332			18,668
Tax at statutory rate of 20% (2018: 20%; 2017: 20%)		221			2,266			3,734
Foreign income taxed at different rate		499			697			1,151
Expenses not deductible for tax purpose		221			(33	)		600
Utilization of previously unrecognized tax losses		—			(128	)		(1,066	)
Tax benefit arising from previously unrecognized tax losses		—			(298	)		(137	)
Net deferred tax asset not recognized		949			679			78
Written-off deferred tax		218			(4	)		10
Tax exempt on income		(144	)		(135	)		(245	)
Uncertain tax position		(454	)		11			(270	)
Return to provision adjustment		(16	)		1			348
Deferred tax liability arising from undistributed earnings		215			578			602
Withholding tax on dividends		355			270			349
Others		(7	)		(18	)		(14	)
Income tax expense reported in income statement		2,057			3,886			5,140

F-64

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX (continued)

Deferred tax

Deferred tax relates to the following:

	Consolidated balance sheet						Consolidated income statement
	As of December 31,						For the year ended Decembers 31,
	2019			2018			2019			2018			2017
	US$’000			US$’000			US$’000			US$’000			US$’000
Outside basis differences		(3,829	)		(3,614	)		215			578			602
Revaluations of financial assets at fair value through other comprehensive income (2017: Revaluations of available-for-sale investment to fair value)		(679	)		(345	)		—			—			—
Accrued interest income		(181	)		(154	)		13			12			11
Unutilized building allowance (net)		(36	)		(133	)		(98	)		(95	)		11
Unused tax losses		546			644			119			(459	)		455
Allowance for doubtful accounts		245			290			47			(97	)		(25	)
Inventory impairment		554			657			147			(236	)		(161	)
Rebates and other accrued liabilities		472			426			(46	)		(38	)		(6	)
Unpaid retirement benefits		1,553			1,353			(81	)		(54	)		(62	)
Deferred revenue and cost of sales		23			16			(6	)		(14	)		393
Actuarial loss		796			450			—			—			—
Unabsorbed depreciation		637			701			57			(55	)		(45	)
Mark-to-Market value of forward contract		—			28			28			(28	)		—
Others		(301	)		(325	)		(21	)		431			(100	)
Deferred tax expenses / (benefits)								374			(55	)		1,073
Net deferred tax assets		(200	)		(6	)

Reconciliation of deferred tax assets, net

	2019			2018			2017
	US$’000			US$’000			US$’000
Opening balance as of January 1		(6	)		(132	)		526
Tax benefit/(expenses) during the period recognized in profit or loss		(374	)		55			(1,073	)
Tax benefit/(expenses) during the period recognized in other comprehensive income		11			166			170
Exchange difference on translation foreign operations		169			(95	)		245
Closing balance as of December 31		(200	)		(6	)		(132	)

The Company offset tax assets and liabilities if and only if it has legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same tax authority.

F-65

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX (continued)

The Company has available unused net operating losses which arose in Thailand, China, Hong Kong, Singapore and Australia as of December 31, 2019 and 2018, that may be applied against future taxable income and that expire as follows respectively:

	As of December 31,
Year of expiration	2019		2018
	US$’000		US$’000
2019		—		784
2020		3,067		3,020
2021		5,246		5,121
2022		2,216		2,105
2023		4,855		4,760
2024		3,605		—
No expiration		1,591		972
		20,580		16,762

Deferred tax assets have not been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in the Company, as they have arisen in subsidiaries that have been loss-making for some time, and there are no other tax planning opportunities or other evidence of recoverability in the near future. The Company did not recognize deferred tax assets of $4,038 (2018: $3,084; 2017: $2,803) in respect of tax losses amounting to $18,422 (2018: $13,698; 2017: $12,769).

In addition, the Company did not recognize deferred assets of $1,030 (2018: $792; 2017: $1,144) in relation to deductible temporary differences amounting to $4,695 (2018: $3,557; 2017: $4,930).

There are no income tax consequences attached to the payment of dividends in either 2019 or 2018 by the Company to its shareholders.

As of December 31, 2019 and 2018, the Company is subject to taxation in PRC, Australia, Thailand, and Singapore.  The Company’s tax years from 2011 and forward are still subject to examination by the tax authorities in various tax jurisdictions.

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

Change in Uncertain Tax Positions	2019			2018			2017
	US$’000			US$’000			US$’000
Balance as of January 1		674			706			828
Additions based on tax positions related to the current year		—			—			—
Decrease due to lapses in statute of limitations		(215	)		—			(175	)
Exchange difference		(8	)		(32	)		53
Balance as of December 31		451			674			706

The Company is not expecting there would be any reasonably possible change in the total amounts of uncertain tax position within twelve months of the reporting date. As of December 31, 2019, 2018, and 2017 the amount of uncertain tax position (excluding interest and penalties) included in the consolidated balance sheets that would, if recognized, affect the effective tax rate is $451, $674 and $706, respectively.

F-66

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAX (continued)

The Company recognized interest expense and penalties related to income tax matters as a component of income tax expense. The amount of related interest and penalties the Company has provided as of the dates listed below were:

	As of December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Accrued interest on uncertain tax position		713		867		800
Accrued penalties on uncertain tax position		384		461		486
Total accrued interest and penalties on uncertain tax position		1,097		1,328		1,286

For the years ended December 31, 2019, 2018 and 2017, the Company recognized $81, $108 and $114 in interest and $nil, $nil and $nil in penalty, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company reversed $223, $nil and $276 in interest and $71, $nil and $87 in penalties, respectively, due to lapses in statute of limitations. For the years ended December 31, 2019, 2018 and 2017, the exchange difference $(12), $(41) and $ 65 relating to interests, $(6), $(25) and $38 relating to penalty were included in income tax expenses.

The Company considers each uncertain tax positions individually, by first consider whether each position taken in the tax return is probable of being sustained on examination by the taxing authority. It should recognize a liability for each item that is not probable of being sustained. The liability then is measured using a single best estimate of the most likely outcome. The uncertain tax positions presented in the current tax liability is the total liability for uncertain tax positions.

F-67

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9.(LOSS) EARNINGS PER SHARE

(Loss) earnings per share are calculated by dividing net (loss) profit attributable to equity holders of the parent by the weighted average number of shares outstanding during the year. The Company does not have any dilutive securities. The treasury shares transaction resulted in an immediate reduction in outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted (loss) earnings per share.

The following table sets forth the computation of basic and diluted earnings attributable to common shareholders per share:

	For the year ended December 31,
	2019			2018		2017
	US$’000			US$’000		US$’000
	(except for number of shares and earnings per share)
Numerator:
Net (loss) profit attributable to APWC from continuing operations		(1,632	)		2,928		8,720
Net (loss) profit attributable to APWC		(1,632	)		2,928		8,720
Denominator:
Weighted-average common shares    outstanding – basic and diluted		13,819,669			13,819,669		13,819,669
(Loss) earnings per share – basic and diluted
Continuing operations		(0.12	)		0.21		0.63
Total (loss) earnings per share – basic and diluted		(0.12	)		0.21		0.63

Income from continuing operations attributable to non-controlling interests are $681, $4,518, and $4,808for the years ended December 31, 2019, 2018 and 2017, respectively.

10. CASH AND CASH EQUIVALENTS

	As of December 31,
	2019		2018
	US$’000		US$’000
Cash on hand and cash at banks		53,673		60,778

Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition. Other short-term deposits are presented as other receivables if they are pledged, or if they have a maturity over three months from the date of acquisition.

F-68

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

11(a)Other financial assets and liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Financial assets at fair value through other comprehensive income
Equity instrument (Note 11(d))		4,062		2,332
		4,062		2,332
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts (Note 11(c))		3		142
		3		142

(i) Financial assets and liabilities at fair value through profit or loss

Financial assets and liabilities at fair value through profit or loss reflect the changes in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are intended to reduce the level of foreign currency risk for expected sales and purchase transactions.  

(ii) Financial assets at fair value through other comprehensive income - unquoted equity instrument

On January 1, 2018, the date of initial application of IFRS 9, the Company elected to reclassify its unquoted equity instrument in Thai Metal Processing Co., Ltd (“TMP”), which is engaged in the fabrication of copper rods, from financial assets – available-for-sale to financial assets at fair value through other comprehensive income due to the investment being hold as a long-term strategic investment and not expected to be sold in the short to medium term. During the years ended December 31, 2019, 2018, and 2017, the Company received dividends of $109, $105, and $100 from TMP, respectively, which were recorded in other income (Note 7(e)) in the consolidated income statements.

F-69

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(b)Interest-bearing loans and borrowings

Under the line of credit arrangements for short-term debt with the Company’s banks, the Company may borrow up to approximately $287,017 and $275,334as of December 31, 2019 and 2018, respectively, on such terms as the Company and the banks may mutually agree upon. These arrangements do not have termination dates but are reviewed annually for renewal. As of December 31, 2019 and 2018, the unused portion of the credit lines was approximately $207,928 and $182,361, respectively, which included unused letters of credit amounting to $113,255 and $92,256, respectively.

Letters of credit are issued by the Company in the ordinary course of business through major financial institutions as required by certain vendor contracts. As of December 31, 2019 and 2018, the Company had open letters of credit amounting to $15,209 and $22,426, respectively. Liabilities relating to the opened letters of credit are included in current liabilities.

	As of December 31,
	2019					2018
	Interest rate	Maturity	Local currency			Interest rate	Maturity	Local currency
	%		‘000	US$’000		%		‘000	US$’000
Current interest-bearing loans and borrowings
Bank loans
Bank loans	5.00 ~ 5.50	Mar. 2020 ~ Sept. 2020	RMB$20,400		2,929	4.70 ~ 4.79	Jan. 2019 ~ Sept. 2019	RMB$42,100		6,130
Trust receipt	1.90 ~ 2.70	Jan. 2020 ~ Jun. 2020	THB$161,018		5,423	1.10 ~ 2.10	Jan. 2019 ~ Jun. 2019	THB$602,150		18,684
Trust receipt	3.05	Feb. 2020 ~ Apr. 2020	SGD$4,042		3,004
Total					11,356					24,814

F-70

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(c)Hedging activities and derivatives

(i) Commodity price risk

The Company purchases copper on an ongoing basis as its operating activities require a continuous supply of copper for manufacturing products. To reduce the exposures to copper shortage, the Company enters into purchase contracts with commitment of monthly minimum purchase at market prices for selected operating units. The majority of these transactions take the form of contracts that are entered into and continue to be held for the purpose of receipt or delivery of the copper based on the Company’s expected purchase, sale or usage requirements. Such purchase commitment contracts are not deemed financial instruments or derivatives. To date, these contract positions have not had a material effect on the Company’s financial position, results of operations, and cash flow. Whether the annual copper purchase quantity needs to be reduced for the subsequent development, please see the Note 29 Subsequent event.

(ii) Foreign currency risk

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchase transactions. These contracts are entered into the periods consistent with foreign currency exposure of the underlying transaction, generally from one to 12 months. These contracts are not designated in hedge relationships, and are measured at fair value through profit or loss.

As of December 31, 2019 and 2018, the Company had outstanding forward contracts with notional amounts of $(0.9) million and $(9.4) millionrespectively.  The outstanding forward contracts at December 31, 2019 and 2018 mature between June 10 and June 23, 2020 and April 29 and June 17, 2019, respectively. The Company recognized gain (loss) on forward contracts as other income (expenses) – refer to Note 7(e) and Note 7(f).

The forward contract balance varies with the expected foreign currency transactions and changes in foreign exchange rate.

	2019				2018
	Assets		Liabilities		Assets		Liabilities
	US$’000		US$’000		US$’000		US$’000
Foreign currency forward contracts
Fair value		—		3		—		142

F-71

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(d)Fair values

Set out below is a comparison of the carrying amounts and fair value of the Company’s financial instruments that are carried in the financial statements:

	Carrying amount				Fair value
	As of December 31,				As of December 31,
	2019		2018		2019		2018
	US$’000		US$’000		US$’000		US$’000
Financial assets-current
Cash and cash equivalents		53,673		60,778		53,673		60,778
Trade receivables		74,077		79,617		74,077		79,617
Other receivables		6,868		12,422		6,868		12,422
Due from related parties		11,566		12,061		11,566		12,061
Financial assets-non-current
Financial assets at fair value through other comprehensive income		4,062		2,332		4,062		2,332
Long-term bank deposits*		1,246		887		1,246		887
Total		151,492		168,097		151,492		168,097
Financial liabilities-current
Interest-bearing loans and borrowings		11,356		24,814		11,356		24,814
Trade and other payables		16,879		21,127		16,879		21,127
Due to related parties		3,284		2,997		3,284		2,997
Financial liabilities at fair value through profit or loss		3		142		3		142
Financial lease liabilities		574		44		574		44
Financial liabilities-non-current
Financial lease liabilities		2,254		46		2,254		46
Total		34,350		49,170		34,350		49,170
* included in other non-current assets

(i) Methods and assumptions used to estimate fair value

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

► Cash and cash equivalents, trade receivables, other receivables, due from related parties, trade and other payables, due to related parties, and financial lease liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

► Fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances were provided to account for the expected losses of these receivables. As of December 31, 2019 and 2018, the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values.

► Fixed rate long-term bank deposits and fixed rate and variable-rate borrowings are evaluated using discounted cash flows and the market rates or current rates for deposits of similar remaining maturities.

► Fair valueoffinancialliabilities at fair value through profit or loss - derivativesisderivedfrom inputs other than quoted prices that are observable for the asset or liability.

F-72

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

(i) Methods and assumptions used to estimate fair value (continued)

► Fair valueofinterest-bearing borrowings and loans are determined by using discounted cash flow method with discount rate that reflects the issuer’s borrowing rate as of the end of the reporting period. The non-performance risk as of December 31, 2019 was assessed to be insignificant.

(ii) Description of significant unobservable inputs to valuation

	Valuation technique	Significant unobservable inputs	Liquidity discount (2019 and 2018)	Sensitivity of the input to fair value
				2019	2018
Financial asset
Unquoted equity instrument	Market Approach Method	Liquidity Discount	30%	5%  decrease in the discount would increase in fair value by $290	5%  decrease in the discount would increase in fair value by $167

The Company estimates the fair value of investment in equity instrument by using the market approach (market comparatives approach). The key in this method is the selection of quoted comparable companies and accommodate adjustments to bring the accounts of different companies into a broadly consistent framework for analysis. Then, select appropriate Indicators of Value. The followings should be taken into account:

► Enterprise Value (EV) versus Market Capitalization;

► Earnings-based: EBITDA +/or EBIT versus Net Earnings +/or Net Cash Flow

► Balance Sheet based: Net Total Assets versus Shareholders Funds

Discount for the lack of liquidity to reflect the lesser liquidity of this equity instrument compared with those of its comparable public company peers. The Company assessed the discount for the lack of liquidity to be 30 percent on the basis of relevant studies applicable in the region and industry as well as on the specific facts and circumstances of the equity instrument. The equity instrument’s finance performance is characterized by stable, consistent growth and profitability. The Company believes the liquidity discount of 30% would be appropriate.

The Company carries the equity instrument as financial assets at fair value through other comprehensive income classified as level 3 within the fair value hierarchy.  A reconciliation of the beginning and closing balances is summarized below:

	2019		2018
	US$’000		US$’000
At January 1		2,332		2,747
Re-measurement financial assets to fair value, recognized in other comprehensive income/(loss)		1,670		(419	)
Exchange difference on translation		60		4
At December 31		4,062		2,332

F-73

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. TRADE AND OTHER RECEIVABLES

	As of December 31,
	2019			2018
	US$’000			US$’000
Trade receivables		75,627			81,274
Less: Loss allowances		(1,550	)		(1,657	)
Trade receivable, net		74,077			79,617
Other receivables		6,986			12,502
Less: Loss allowances		(118	)		(80	)
Other receivable, net		6,868			12,422

12(a) Movement in the loss allowance on trade receivables

	2019			2018
	US$’000			US$’000
At January 1		1,657			3,456
Charge for the year		72			726
Write-off		(1	)		(2,292	)
Unused amounts reversed		(194	)		(156	)
Currency translation adjustment		19			(74	)
Reclassification		(3	)		(3	)
At December 31		1,550			1,657

The Company recorded a loss allowance on trade receivables amounted to $2.0 million, for a specific customer of a subsidiary, as of December 31, 2017. This loss allowance on trade receivables was written off in 2018 based on the court judgement with no reasonable expectation of recovery.

12(b)Aging analysis of trade receivables

					Past due
	Total		Current		1-30 days		31-60 days		61-90 days		91-120 days		>120 days
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
December 31, 2019
Expected loss rate	2.05%		0.14%		0.76%		3.75%		9.52%		23.89%		75.97%
Gross carrying amount - trade receivables		75,627		59,867		9,979		3,759		294		180		1,548
Loss allowances		1,550		86		76		141		28		43		1,176
Trade receivable, net		74,077		59,781		9,903		3,618		266		137		372
December 31, 2018
Expected loss rate	2.04%		0.07%		0.86%		3.95%		20.18%		31.71%		64.70%
Gross carrying amount - trade receivables		81,274		67,318		9,183		2,276		327		82		2,088
Loss allowances		1,657		45		79		90		66		26		1,351
Trade receivable, net		79,617		67,273		9,104		2,186		261		56		737

F-74

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. TRADE AND OTHER RECEIVABLES (continued)

12(c)Accounting policy for impairment of trade receivables

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the Company’s historical credit loss experience, adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of the customers to settle the receivables.

The impairment of trade receivables was assessed based on the incurred loss model as of December 31, 2017. The Company measured estimated impairment losses on trade receivables based on the inability of its customers to make required payments. The Company considered the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, customer financial condition, past transaction history with the customer, current economic industry trends, and changes in customer payment terms.

12(d)Material collateral obtained

The Company obtained collateral in respect of doubtful receivables from customers. The collateral takes the form of a lien over the customer’s assets and gives the Company a claim on these assets for the doubtful receivables.

In March 2017, a lawsuit was filed by a debtor to rescind the foreclosure that the Company has undertaken on the collateral in Thailand. The Company’s foreclosure prevailed according to the judgement from the Appeal Court on November 28, 2017. The debtor’s petition reached to the Supreme Court on June 19, 2018, and was denied on March 27, 2019. The Company performed a valuation to determine the fair value of the collateral. As of December 31, 2019 and 2018, the fair value of the collateral was $1,339 and $1,200, respectively, which was lower than the amount of the associated delinquent account, and the Company recognized an impairment loss of $30 and $52 in other operating expenses, respectively.

See Note 27(b) credit risk of trade receivables for discussions on how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

12(e)Other receivables pledged as collateral

The carrying amounts of other receivables pledged as collateral against credit facilities received from financial institutions are disclosed in Note 27(e)(ii).

F-75

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

13. INVENTORIES

	As of December 31,
	2019			2018
	US$’000			US$’000
Raw materials and supplies		19,712			25,717
Work in progress		19,118			15,598
Finished goods		50,309			46,592
		89,139			87,907
Allowance for inventories		(3,952	)		(3,982	)
Total inventories at the lower of cost and net    realizable value		85,187			83,925

Inventories recognized as an expense during the year ended December 31, 2019, December 31, 2018 and December 31, 2017 amounted to $313,695, $388,079 and $384,995 respectively.

For the year ended December 31, 2019, the amount of $322 was credited to cost of sales when the circumstances, such as copper price fluctuation, that caused the net realizable value of inventory to be lower than its cost no longer existed.

For the year ended December 31, 2018 and 2017, the Company recognized allowance for inventory of $1,613 and $532 as an expense in cost of sales for inventories carried at net realizable value.

F-76

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14. contract ASSETs

14(a)Assets related to contracts with customers

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract assets - current		4,686		1,460

There were no advances received or retentions on SDI service contracts during the financial years ended December 31, 2019 and 2018.

The Company mainly conducts its SDI services contract with customers within public sector, and the expected credit loss on contract assets is close to zero.

14(b)Unsatisfied supply, delivery, and installation (SDI) services contracts

The following table shows the aggregate amount of the transaction price allocated to the unsatisfied performance obligations.

	As of December 31,
	2019		2018
	US$’000		US$’000
Unsatisfied long-term SDI contracts
Expected to be recognized as revenue over 3 years		156,592		14,922

F-77

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

15. PROPERTY, PLANT AND EQUIPMENT

	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Cost
At January 1, 2018		6,227			48,421			5,622			96,964			5,230			6,959			1,047			170,470
Additions		—			229			76			480			624			395			2,694			4,498
Disposals		—			(8	)		—			(1,120	)		(503	)		(490	)		—			(2,121	)
Transfer		—			—			3			1,418			505			102			(2,028	)		—
Exchange differences		(21	)		(752	)		14			(1,024	)		(76	)		(244	)		(40	)		(2,143	)
At December 31, 2018		6,206			47,890			5,715			96,718			5,780			6,722			1,673			170,704
Effects on initial application of IFRS 16		—			—			—			—			(192	)		—			—			(192	)
Adjusted balance at January 1, 2019		6,206			47,890			5,715			96,718			5,588			6,722			1,673			170,512
Additions		—			7			119			292			433			315			2,240			3,406
Disposals		—			—			(4	)		(2,308	)		(524	)		(331	)		—			(3,167	)
Transfer		—			(167	)		746			1,748			180			139			(2,582	)		64
Exchange differences		632			2,813			454			7,419			332			247			47			11,944
At December 31, 2019		6,838			50,543			7,030			103,869			6,009			7,092			1,378			182,759
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Depreciation/Impairment
At January 1, 2018		—			(33,082	)		(3,254	)		(82,490	)		(3,430	)		(5,888	)		—			(128,144	)
Depreciation charge for the year		—			(1,164	)		(296	)		(2,435	)		(604	)		(402	)		—			(4,901	)
Impairment		—			—			—			(10	)		—			(1	)		—			(11	)
Depreciation on disposals		—			6			0			1,119			503			486			—			2,114
Transfer		—			—			—			(46	)		—			46			—			—
Exchange differences		—			510			(17	)		914			49			200			—			1,656
At December 31, 2018		—			(33,730	)		(3,567	)		(82,948	)		(3,482	)		(5,559	)		—			(129,286	)
Effects on initial application of IFRS 16		—			—			—			—			126			—			—			126
Adjusted balance at January 1, 2019		—			(33,730	)		(3,567	)		(82,948	)		(3,356	)		(5,559	)		—			(129,160	)
Depreciation charge for the year		—			(1,044	)		(338	)		(2,391	)		(541	)		(420	)		—			(4,734	)
Impairment		—			—			(1	)		(550	)		7			(2	)		—			(546	)
Depreciation on disposals		—			—			4			2,274			477			329			—			3,084
Transfer		—			265			(265	)		—			(64	)		—			—			(64	)
Exchange differences		—			(2,361	)		(297	)		(6,517	)		(185	)		(232	)		—			(9,592	)
At December 31, 2019		—			(36,870	)		(4,464	)		(90,132	)		(3,662	)		(5,884	)		—			(141,012	)
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Net book value
At December 31, 2019		6,838			13,673			2,566			13,737			2,347			1,208			1,378			41,747
At December 31, 2018		6,206			14,160			2,148			13,770			2,298			1,163			1,673			41,418
At January 1, 2018		6,227			15,339			2,368			14,474			1,800			1,071			1,047			42,326

F-78

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

15. PROPERTY, PLANT AND EQUIPMENT (continued)

15(a)Impairment of property, plant and equipment

In 2019, 2018 and 2017 the Company recorded an impairment loss of $546, $11 and $223 on property, plant and equipment at Shanghai Yayang, Ningbo Pacific and SFO facilities. The impairment is presented within other operating expenses in Note 7(b), and the impairment of property, plant and equipment of North Asia and Thailand segments in Note 5.

The Company performed a valuation for utilized machinery measured at fair value less costs to sell using a cost approach due to closure of the manufacturing facilities at Shanghai Yayang and Ningbo Pacific. Its fair value measurement was classified as Level 3 of the fair value hierarchy. After considering the relevant evidence, the key assumption used included replacement costs, residual value and remaining useful life of these existing assets. The impairment test revealed that the recoverable amount was lower than the carrying amount.

The Company considers the market demand for SFO’s products and performed an impairment test on the CGU composed of property, plant and equipment used in the manufacturing of fiber optic cables at SFO. The Company determined the recoverable amount of the CGU to be $0 based on the value in use. The key assumptions used in calculating the value in use included the revenue growth and a discount rate of 14.8%.  

15(b)Financial leases under property, plant and equipment

The carrying value of motor vehicles under financial leases as of December 31, 2019, 2018 and 2017 were $0, $66 and $50, respectively. These assets under financial lease are pledged for financial lease liabilities (Note 25(b)).

On January 1, 2019, the Company reclassified “Lease assets” from “Property, plant and equipment” to “right-of-use assets” upon adoption of IFRS 16.  See the Note 4.1.

15(c)Pledge

Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 27(e) (i).

F-79

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. RIGHT-OF-USE ASSETS

16(a)Amounts recognized in the consolidated balance sheets

	As of December 31,
	2019
Right-of-use assets	US$’000
Land		3,029
Buildings		546
Motor vehicle and  other  asset		58
Office  equipment		102
		3,735

The Company leases various assets including land, buildings, business vehicles and multifunction printers. Rental contracts are typically made for periods of 1 to 36 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

Additions to the right-of-use assets during the 2019 financial year were $473.

16(b)Amounts recognized in the consolidated income statements

	2019
Depreciation charge of right-of-use assets	US$’000
Land		211
Buildings		233
Motor vehicle and  other  asset		38
Office  equipment		25
		507
Interest expenses (included in finance cost)		91
Expenses relating to short-term leases		159
Expenses relating to lease of low-value assets that are not short-term leases		15

The total cash outflow for lease in 2019 was $691.

F-80

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. RIGHT-OF-USE ASSETS (continued)

16(c)Prepaid land lease payments

	2018
	US$’000
Carrying amount as of January 1,		1,103
Recognized lease expense during the year		(38	)
Exchange difference		(53	)
Carrying amount as of December 31,		1,012
Current portion included in prepayments		34
Non-current portion included in prepaid land lease    payments		978

The property land is situated in Mainland China and is held under a long-term operating lease for 50 years.

Information about the prepaid land lease payments that were pledged to others as collaterals is provided in Note 27(e)(i).

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

F-81

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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).

F-82

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18. INTANGIBLE ASSETS

Computer software

	2019			2018
	US$’000			US$’000
Cost
At January 1		586			526
Addition		20			67
Exchange difference		15			(7	)
At December 31		621			586
Accumulated amortization
At January 1		(429	)		(388	)
Amortization		(50	)		(44	)
Exchange difference		(14	)		3
At December 31		(493	)		(429	)
Net book value
At December 31		128			157

19. INVESTMENTS IN ASSOCIATES

19(a)Associates of the Company

			Percentage of equity interest
			As of December 31
Company Name	Nature of business	Country of incorporation	2019	2018
Shandong Pacific Rubber Cable Co., Ltd. (“SPRC”)	Manufacturing of rubber cable	PRC	25.00%	25.00%
Siam Pacific Holding Company Limited (“SPHC”)	Investment & holding company	Thailand	49.00%	49.00%
Loxpac (Thailand) Company Limited (“Loxpac”) (Formerly known as “Loxley Pacific Co., Ltd.)	Providing telecommunication service	Thailand	21.39%	21.39%
Loxpac Hong Kong Co., Limited (“Loxpac HK”) (Formerly known as “Loxley Pacific Hong Kong Co., Limited” )	Investment & holding company	Hong Kong	23.10%	23.10%

19(b)Carrying amounts of investment in associates

	As of  December 31,
	2019			2018
	US$’000			US$’000
At January 1		864			861
Share of loss of associates		(3	)		(3	)
Exchange difference		74			6
At December 31		935			864

The investments in SPRC, Loxpac and Loxpac HK have been fully impaired.

F-83

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19. INVESTMENTS IN ASSOCIATES

19(c)Summarized financial information for associates

The following table summarized financial information of the Company’s investments in associates:

	As of December 31,
	2019			2018
	US$’000			US$’000
Summarized financial information of SPHC:
Current assets		3			9
Non-current assets		2,103			1,938
Current liabilities		(3	)		(3	)
Non-current liabilities		(196	)		(181	)
Equity		1,907			1,763
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%
Carrying amount of the investment		935			864

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Summarized financial information of SPHC:
Revenue		—			—			—
Loss for the year		(6	)		(5	)		(5	)
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%			49%
Share of the associates’ profit for the year:		(3	)		(3	)		(3	)

As of December 31, 2019 and 2018, the Company's associates had no contingent liabilities or capital commitments.

F-84

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

20. TRADE AND OTHER PAYABLES

	As of December 31,
	2019		2018
	US$’000		US$’000
Trade payables		10,509		15,941
Other payables		6,370		5,186
		16,879		21,127

Other payables included refund liabilities arising from contracts with customers, which amounted to $4,393 and $3,831 as of December 31, 2019 and 2018, respectively.

21. EMPLOYEE BENEFIT

	As of December 31,
	2019						2018
	Current		Non-current		Total		Current		Non-current		Total
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Employee benefit liabilities
Pension-Defined benefit plans		1,436		10,306		11,742		855		8,161		9,016
Long service leave		452		128		580		427		112		539
Total		1,888		10,434		12,322		1,282		8,273		9,555

21(a)Pension – Defined contribution plans

The Company has several defined contribution plans covering its employees in Australia, PRC, Singapore, Thailand, and Taiwan. Contributions to the plan are made monthly. Total charges for the years ended December 31, 2019, 2018 and 2017, were $1,160, $1,264, and $1,280, respectively.

21(b)Pension – Defined benefit plans

The defined benefit liability recognized in the consolidated balance sheet in respect to defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period, together with adjustments for past service costs and actuarial gains or losses. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using future actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits.

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rates of 1 to 13 times of their final month’s salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees, at rates of 1 to 26 times of final month's salary. The plan is not funded. The Company pays to settle the obligations as and when employees retire.

F-85

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

21. EMPLOYEE BENEFIT (continued)

21(b)Pension – Defined benefit plans (continued)

The following tables summaries the components of net benefit expense recognized in the income statement and the funded status and amounts recognized in the consolidated balance sheet for the plan:

	For the year ended December 31,
Net benefit cost	2019		2018		2017
	US$’000		US$’000		US$’000
Current service cost		546		419		360
Past service cost		121		—		—
Interest cost on benefit obligation		254		202		210
Net benefit cost		921		621		570

	For the year ended December 31,
Other comprehensive income	2019		2018		2017
	US$’000		US$’000		US$’000
Actuarial (gain) / loss – experience		494		396		251
Actuarial (gain) / loss – demographic assumption		18		1		184
Actuarial (gain) / loss – financial assumption		1,215		13		337
Actuarial loss		1,727		410		772

	For the year ended December 31,
Change in the defined obligation	2019			2018			2017
	US$’000			US$’000			US$’000
Defined benefit obligation at January 1		9,016			8,293			6,652
Current service cost		546			419			360
Past service cost		121			—			—
Interest cost on benefit obligation		254			202			210
Benefits paid directly by the Company		(535	)		(352	)		(274	)
Actuarial loss in other comprehensive income		1,727			410			772
Exchange differences		613			44			573
Defined benefit obligation at December 31		11,742			9,016			8,293

Actuarial assumptions

The significant assumptions used in determining the actuarial present value of the defined benefit obligations for the year ended December 31, 2019 and 2018 are as follows:

	2019		2018
	%		%
Discount rate		1.5		2.6 ~ 2.7
Rate of salary increase	5.0~6.0		5.0 ~ 6.0
Pre-retirement mortality	* Thailand TMO17 Tables		* Thailand TMO17 Tables
* TMO represented as Thailand Mortality Ordinary Tables

F-86

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

21. EMPLOYEE BENEFIT (continued)

21(b)Pension – Defined benefit plans (continued)

Maturity profile of defined benefit obligation

The following pension benefit payments are expected payments to be made in the future years out of the defined benefit plan obligation:

	As of December 31,
	2019		2018
	US$’000		US$’000
Within the next 12 months (next annual reporting period)		1,340		855
Between 2 and 5 years		2,489		2,374
Between 6 and 10 years		4,391		4,187
Beyond 10 years		16,917		17,084
Total expected payments		25,137		24,500
Weighted average duration of defined benefit obligation	9 years		10 - 11 years

Sensitivity analysis

A one-percentage point change in the assumed rates would have yielded the following effects:

	2019			2018
	US$’000			US$’000
Discount rate – 1% increase		(1,003	)		(777	)
Discount rate – 1% decrease		1,178			908
Rate of salary increase – 1% increase		1,115			869
Rate of salary increase – 1% decrease		(973	)		(762	)

The sensitivity result above determines their individual impact on the plan’s year-end defined benefit obligation. In reality, the plan is subject to multiple external experience items which may move the defined benefit obligation in similar or opposite directions, while the plan’s sensitivity to such changes can vary over time.

21(c) Long service leave

The liability for long service leave is recognized in the provision for employee benefits and measured as present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bond with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. As of December 31, 2019 and 2018, the amount of long service leave obligation was $580 and $539, respectively.

F-87

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

22. OTHER CURRENT LIABILITIES

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract liabilities		216		756
Dividend payable		674		565
Deferred government grant		—		318
Onerous contracts provisions		238		42
Other current liabilities		1,228		1,591
Total		2,356		3,272

The Company was subject to two expropriations by the PRC government in 2018. The government grant related to the completed appropriation, amounted to $106, is recognized as other income for the year ended December 31, 2018. The government grant for the expropriation in progress, amounted to $318, is recognized as other current liabilities as of December 31, 2018, and as other income for the year ended December 31, 2019.

Other current liabilities include undue value added tax, unpaid withholding tax, and other miscellaneous liabilities.

22(a)Onerous contracts provisions

	2019			2018
	US$’000			US$’000
At January 1		42			555
Recognized		218			37
Reversed		(25	)		(544	)
Exchange differences		3			(6	)
At December 31		238			42

22(b)Contract Liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Current contract liabilities
Advance from customers		93		668
Custodial service		63		71
Transportation service		60		17
Total current contract liabilities		216		756

The Company applied IFRS 15 from January 1, 2018 and recognized contract liabilities when considerations from customers had been received or due before the Company satisfied the performance obligations.

F-88

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

22. OTHER CURRENT LIABILITIES (continued)

22(b)Contract Liabilities (continued)

Revenue recognized in relation to contract liabilities

	For the year ended December 31,
	2019		2018
	US$’000		US$’000
Revenue recognized that was included in the contract liabilities balance at the beginning of the year
Advance from customers		668		—
Custodial service		59		85
Transportation service		17		28
		744		113

23. EQUITY

23(a)Common shares

	As of December 31,
	2019		2018
Authorized shares	Number of shares		Number of shares
Common shares of US$0.01 each		50,000,000		50,000,000

Common shares issued and fully paid	Number of shares		US$’000
At December 31, 2019		13,830,769		138
At December 31, 2018		13,830,769		138
At January 1, 2018		13,830,769		138

23(b)Dividends

On November 11, 2016, the Company announced that the Board of Directors approved the implementation of a dividend policy as part of the Company's ongoing commitment to increasing shareholder value and return on investment. Pursuant to the dividend policy, subject to review and approval by the Board of Directors, the Company may pay cash dividends of at least 25% of its net post-tax audited consolidated profits attributable to shareholders. As APWC is a holding company, its ability to pay dividends is dependent upon distributions that it receives from its operating subsidiaries and affiliates, which are subject to a number of factors including operating results, capital requirements, expansion plans, debt covenants, business prospects, consideration for non-recurring items and other factors that are deemed relevant from time to time by the respective boards of our subsidiaries and affiliates. The dividend policy will be reviewed on an ongoing basis and updated at the discretion of the Board of Directors as business circumstances and available capital and capital requirements may change.

The Company recognized dividends distributed to owners amounting to $nil ($nil per share), $1,106 ($0.08 per share) and $1,382 ($0.1 per share) for the years ended December 31, 2019, 2018 and 2017, respectively.

F-89

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23. EQUITY (continued)

23(c)Other comprehensive income – net of tax

The disaggregation of changes of other comprehensive income by each type of reserve in equity is shown below:

	For the year ended December 31, 2019
	Remeasurement of defined benefit plans			Financial assets at FVOCI reserve		Foreign currency translation reserve		Total
	US$’000			US$’000		US$’000		US$’000
Exchange difference on translation of foreign operations		—			—		10,677		10,677
Re-measuring losses on defined benefit plans		(1,382	)		—		—		(1,382	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			1,336		—		1,336
		(1,382	)		1,336		10,677		10,631

	For the year ended December 31, 2018
	Remeasurement of defined benefit plans			Available-for-sale reserve			Financial assets at FVOCI reserve			Foreign currency translation reserve			Total
	US$’000			US$’000			US$’000			US$’000			US$’000
Reclassification of application of IFRS 9		—			(1,717	)		1,717			—			—
Exchange difference on translation of foreign operations		—			—			—			(4,388	)		(4,388	)
Re-measuring losses on defined benefit plans		(328	)		—			—			—			(328	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			—			(335	)		—			(335	)
		(328	)		(1,717	)		1,382			(4,388	)		(5,051	)

	For the year ended December 31, 2017
	Remeasurement of defined benefit plans			Available-for-sale reserve			Foreign currency translation reserve		Total
	US$’000			US$’000			US$’000		US$’000
Exchange difference on translation of foreign operations		—			—			15,882		15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary		—			—			248		248
Re-measuring losses on defined benefit plans		(618	)		—			—		(618	)
Net loss on available-for-sale financial assets		—			(64	)		—		(64	)
		(618	)		(64	)		16,130		15,448

F-90

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. RELATED PARTY TRANSACTIONS

The related parties are defined as affiliates of the Company; entities for which investments are accounted for by the equity method by the Company; the principal owners of the Company; its management; members of the immediate families of the principal owners of the Company and its management.

Moon View Venture Limited (“Moon View”), PEWC, Singapore Branch, PEWC Singapore Co. (Pte) Ltd., and PEWC (HK) are controlled by PEWC. Moon View is the immediate holding company of the Company. Italian-Thai Development Public Company Limited (“Italian-Thai”) is the non-controlling shareholder of one of the Company’s operating subsidiaries in Thailand. SPHC is one of the Company’s equity investees. Fujikura Limited is a non-controlling shareholder of one of the Company’s operating subsidiaries in Thailand.

24(a)Outstanding balance with related parties

The following table provided the total amount of outstanding balance at December 31, 2019 and 2018.

	Amounts due from related parties				Amounts due to related parties
	As of December 31,				As of December 31,
	2019		2018		2019		2018
	US$’000		US$’000		US$’000		US$’000
The ultimate parent company
PEWC		—		—		862		45
PEWC, Singapore Branch		21		15		—		—
PEWC Singapore Co. (Pte) Ltd.		—		—		1,027		1,005
PEWC (HK)		5,247		5,989		20		399
Associate
SPHC		196		181		1,362		1,362
Non-controlling shareholder of subsidiary
Italian-Thai and its affiliates		6,102		5,876		—		—
Fujikura Limited		—		—		—		136
Others		—		—		13		50
Total		11,566		12,061		3,284		2,997

As of December 31, 2019 and 2018, the interest rates on the balance due to PEWC Singapore Co., (Pte) Ltd. range from 3.09% to 3.79% and 2.70% to 3.40%, respectively, and the payables are repayable upon demand. All balances with related parties are unsecured.

 .

F-91

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. RELATED PARTY TRANSACTIONS (continued)

24(b)Transactions with related parties

The transactions undertaken with related parties are summarized as follows:

		For the year ended December 31,
		2019		2018		2017
		US$’000		US$’000		US$’000
The ultimate parent company
PEWC	Purchases		2,745		521		18,170
	Sales		—		14		1,457
	Fabrication income received		140		412		208
	Management fee paid		199		136		143
	Information technology service fee paid		101		115		114
PEWC, Singapore Branch	Management fee received		14		14		14
PEWC Singapore Co. (Pte) Ltd.	Interest expenses paid		22		21		15
PEWC (HK)	Purchases		—		2,479		4,180
	Sales		17,831		23,498		24,437
	Service fee paid		218		231		—
The immediate holding company
Moon View	Income from discharge of liability*		—		1,537		—
Non-controlling shareholder of subsidiary
Italian Thai and its affiliates	Sales		4,188		6,814		6,203
	Construction of factory building expenses		215		—		—
Fujikura Limited	Purchases		249		750		1,115

Moon Viewdischarged the Company’s liabilities towards Moon View due to the financial arrangement between related parties. The company wrote off the liabilities amounted to $1,537 from “due to related parties”, and recognized other income amounted to $1,537 for the year ended December 31, 2018.

24(c)Terms and condition of transactions with related parties

The sales to and purchases from related parties are based on negotiation by the entities. Outstanding balances at the year-end are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The Company purchases from PEWC copper rods as raw materials, low to high voltage power cable, and wire for distribution purposes. The purchase price from PEWC is determined by reference to the quoted copper prices on the LME. No sales commission was received from PEWC during the years ended December 31, 2019, 2018 and 2017.  

F-92

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. RELATED PARTY TRANSACTIONS (continued)

24(c)Terms and condition of transactions with related parties (continued)

Pursuant to the composite services agreement with PEWC: 

(i) PEWC will sell copper rod to the Company, upon the Company’s request, (1) at a price consisting of the average spot price of copper on the LME for the one month prior to purchase plus an agreed upon premium, (2) at prices and on terms at least as favorable as it provides copper rod to other purchasers of similar amounts of copper rod in the same markets as PEWC and (3) will give priority in the supply of copper rod to the Company over other purchasers of copper rod from PEWC.

(ii) PEWC grants to the Company the right to distribute any wire or cable product manufactured by PEWC in all markets in which the Company presently distributes or develops the capability to distribute in the future, such products on such terms as have historically been in effect or on terms at least as favorable as PEWC grants to third parties that distribute such products in such markets. However, PEWC shall not be required to grant to the Company the right to distribute products manufactured by PEWC in the future in markets where the Company does not currently have the capability to distribute unless and until PEWC has no pre-existing contractual rights which would conflict with the grant of such right to the Company.

(iii) PEWC will make available to the Company, upon the Company’s request and on terms to be mutually agreed between PEWC and the Company from time to time, access to certain of PEWC’s technology (and PEWC personnel necessary to use such technology) with respect to the design and manufacture of wire and cable products, including, without limitation, certain fiber optic technology. The Company benefits from research and development conducted by PEWC at little or no cost to the Company.

(iv) PEWC will make available to the Company, upon the Company’s request and on terms to be mutually agreed between PEWC and the Company from time to time, certain services with respect to the design and manufacture of wire and cable products, computerization, inventory control, purchasing, internal auditing, quality control, emergency back-up services, and recruitment and training of personnel; such services may include the training of the Company’s employees and managers at PEWC facilities and the secondment of PEWC employees and managers to the Company.

(v) Each of PEWC and the Company will offer the other party the right to participate in any negotiations with a third party concerning the establishment of any facility or similar venture to manufacture or distribute any wire or cable product outside of the markets where the Company currently manufactures or distributes, or intends to develop the capability to manufacture or distribute, any wire or cable product. Unless the Company and PEWC mutually agree otherwise, the Company shall have the right of first refusal to enter into any definitive agreement with such third party. If, however, such third party would not agree to the substitution of the Company for PEWC or such substitution would prevent the successful completion of the facility or venture, PEWC will arrange for the Company to participate to the extent possible.

F-93

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. RELATED PARTY TRANSACTIONS (continued)

24(d)Compensation of key management personnel of the Company

	For the years ended December, 31
	2019		2018		2017
	US$’000		US$’000		US$’000
Short-term employee benefits		3,073		3,814		3,900
Post-employment benefits		179		102		103
Termination benefits		—		47		43
Total compensation paid to key management    personnel		3,252		3,963		4,046

The amounts disclosed in the table were recognized as expenses during the reporting periods.

25. COMMITMENTS AND CONTINGENCIES

25(a)Non-cancellableoperating lease commitments – the Company as lessee

The Company leases a piece of land and some buildings in Singapore under non-cancellable operating lease arrangements for terms from 1 to 30 years.From January 1, 2019, the company has recognized right-of-use assets for these leases (see Note 16 and Note 27(c)).

	As of December 31,
	2018
	US$’000
Within one year		616
After one year but not more than five years		1,279
More than five years		1,368
		3,263

25(b)Finance lease liabilities

Future minimum payments under finance leases with initial terms of one year or more consisted of the following for December 31, 2018. (see Note 16 and Note 27(c)).

	2018
	Minimum payments			Present value of payments
	US$’000			US$’000
Within one year		47			44
After one year but not more than five years		47			46
More than five years		—			—
Total minimum lease payments		94			90
Less: amount representing finance charges		(4	)		—
Present value of minimum lease payment		90			90

The finance lease liabilities are secured by the leased motor vehicles. The average discount interest rate implicit in the lease is 5.18% for 2018.

F-94

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. COMMITMENTS AND CONTINGENCIES (continued)

25(c)Purchase commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had commitments to purchase raw materials totaling $200 million to $290 million and $136 million to $176 million (20,996 to 30,580 metric tons and 22,450 to 28,940 metric tons), respectively, from third parties at the prices stipulated in the contracts.

25(d)Capital commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had capital commitment relating to the construction of factory building improvement and acquisition of machinery, totaling $5.8 million and $0.6 million, respectively.

25(e)Guarantees

As of December 31, 2019 and 2018, one of Charoong Thai’s subsidiaries had guarantee obligations of bank credit line of its operating subsidiary at approximately $0 million and $2 million, respectively.

As of December 31, 2019 and 2018, the Company provided a corporate guarantee not exceeding the sum of $24.7 million and $24.3 million, respectively, for the bond performance and banking facility of Sigma Cable.

As of December 31, 2019 and 2018, there were outstanding bank guarantees of $38.5 million and $36.9 million, respectively, issued by the banks on behalf of Charoong Thai and its subsidiaries in respect of certain performance bonds as required in the normal course of business of the companies. These guarantees generally expire within 1 year.

25(f)Service commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had commitments in respect of management consulting services with related parties totaling $0.3 million and $0.2 million, respectively.

F-95

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

26. FAIR VALUE MEASUREMENT

Fair value information:
As of December 31, 2019	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(3	)		—		(3	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		4,062			—		—			4,062
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		11,566			—		—			11,566
Office buildings		1,460			—		—			1,460

There have been no transfers between Level 1 and Level 2 during the year.

Fair value information:
As of December 31, 2018	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(142	)		—		(142	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		2,332			—		—			2,332
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		10,656			—		—			10,656
Office buildings		1,397			—		—			1,397

There have been no transfers between Level 1 and Level 2 during the year.

F-96

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES

Financial risks are those derived from financial instruments the Company is exposed to during or at the closing of each fiscal year. The objective of the Company’s financial risk management is to minimize its risk exposure against various financial risks, which include market risk, credit risk and liquidity risk. The Company uses derivative instruments to cover certain risks when it considers them necessary. It is the Company’s policy that no trading in derivatives for speculative purposes shall be undertaken.

The Company manages its exposure to key financial risks, as described in the succeeding paragraphs.

27(a)Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, equity price risk, foreign currency risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings, financial instruments at fair value through profit or loss, and financial instruments at fair value through other comprehensive income.

The sensitivity analysis in the following sections relate to the position as of December 31, 2019 and 2018.

The analysis excludes the impact of movements in market variables on the carrying value of other post-retirement obligations provisions and on the non-financial assets and liabilities of foreign operations.

(i) Interest rate risk

The Company’s exposure to interest rate risk arises from borrowing at floating interest rates. Changes in interest rate will affect future cash flows but not the fair value. Less than 25% of the Company’s financial liabilities bear floating interest rate, and the rest of its financial liabilities bear fixed interest rate which are close to the market rate or are non-interest bearing.

At the reporting dates, a change of 30 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2019 and 2018 to increase/decrease by $46 and $64, respectively.

(ii) Equity price risk

The Company’s exposure to equity price risk arises from unquoted instrument held by the Company and classified in the balance sheet as non-current financial assets at fair value through other comprehensive income.

The fair value and the sensitivity analysis of the held equity instrument are disclosed in Note 11(d).

F-97

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(a)Market risk (continued)

(iii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates arise from sales, purchases and borrowings by operating units in currencies other than the unit’s functional currency. The Company’s principal operations are located in Thailand, the PRC, Singapore and Australia and a substantial portion of its revenues are denominated in Thai Baht, RMB, Australian dollars or Singapore dollars, whereas a substantial portion of the Company’s cost of sales are denominated in US dollars, its reporting currency. Any devaluation of the functional currencies of the Company’s principal subsidiaries against the US dollar would likely have an adverse impact on the operations of the Company. The Company currently does not maintain a foreign currency hedging policy. However, management monitors the foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise.

The balance of financial assets and liabilities denominated in a currency different from the Company’s each functional currency are summarized below.

	Financial Assets				Financial Liabilities
	As of December 31,				As of December 31
	2019		2018		2019		2018
United States dollar (USD)		19,263		21,529		4,802		25,733
Thai Baht (THB)		346		349		87,779		30
Singapore dollar (SGD)		233		170		20		62
Taiwan dollar (TWD)		9,711		5,227		7,648		4,872
Renminbi (RMB)		119		19		—		179
Hong Kong dollar (HKD)		7,526		20,005		83		43
Australian dollar (AUD)		—		66		—		—
Euro (EUR)		—		—		—		199
Japanese yen (JPY)		—		—		—		14,768

Foreign currency sensitivity

The following table demonstrates the sensitivity of the Company’s profit before tax and equity to a reasonably possible change of each foreign currency exchange rates against all other non-functional currencies, with all other variables held constant.

	Change rate	USD			THB			SGD			TWD			RMB			HKD			AUD			JPY			EUR
	5%		723			(147	)		8			3			1			48			—			—			—
2019	-5%		(723	)		147			(8	)		(3	)		(1	)		(48	)		—			—			—
	5%		(210	)		—			4			1			(1	)		127			2			(7	)		(11	)
2018	-5%		210			—			(4	)		(1	)		1			(127	)		(2	)		7			11

F-98

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

(iv) Commodity price risk

The Company is affected by the volatility of certain commodities. Copper is the principal raw material used by the Company. The Company purchases copper at price closely related to the prevailing international spot market on the London Metal Exchange for copper. The price of copper is influenced heavily by global supply and demand as well as speculative trading. Consequently, a change in the price of copper will have a direct effect on the Company’s cost of sales.  The Company does not use derivative instruments to hedge the price risk associated with the purchase of this commodity.  However, we cover some of these risks through long-term purchase contracts.

Commodity price sensitivity

The following table shows the potential effect of price changes in copper.

	Change in year-end price			Effect on profit before tax			Effect on equity
	US$’000			US$’000			US$’000
2019		+16	%		(3,473	)	N/A
Copper		-16	%		3,473		N/A
2018		+23	%		6,461		N/A
Copper		-23	%		(6,461	)	N/A

On average, copper composes around 82% and 85%of the product cost in 2019 and 2018, respectively. The above sensitivity analysis is based on the most significant fluctuation rate of the month in 2019 as compared to the same month in 2018 and the most significant fluctuation rate of the month in 2018 as compared to the same month in 2017 and one month manufacturing lead time to estimate its impact on profit before tax in 2019 and 2018, respectively.

27(b)Credit risk

Credit risk arises from cash and cash equivalents, bank deposits, foreign currency forward contracts, trade receivables, contract assets, other receivables excluding bank deposits, and amounts due from related parties. The Company’s exposure to credit risk arises from default of counterparty, with maximum exposure equal to the carrying amount of these financial instruments.

(i) Risk management

The Company maintains cash and cash equivalents, as well as bank deposits with various financial institutions located in Singapore, Thailand, Australia, Hong Kong and the People’s Republic of China. The Company’s policy is designed to limit its exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy.

Foreign currency forward contracts are only used for economic hedging purposes and not as speculative investments. The counterparties on these forward contracts are banks with international operations and good credit quality.

F-99

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(b)Credit risk (continued)

Concentrations of credit risk with respect to trade receivables and contract assets are limited due to the large number of entities comprising the Company’s customer base. The Company analysis the credit risk for each of the new clients before credit limits are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The Company carefully assesses the financial strength of its customers and generally does not require any collateral. Compliances with credit limits are monitored, and exceptions beyond a certain threshold are discussed regularly. Customers’ credit terms are extend over time only when they establish good payment patterns with the Company. Other receivables excluding bank deposits mainly contain doubtful receivables from customers. The Company obtained collateral in respect of those material receivables, and performed the valuation of the collateral.

The Company enters into transactions with related parties in the ordinary course of its business. Refer to Note 24(c) for the Company’s general credit risk management practices.

(ii) Definition of default

The Company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

► when there is a breach of financial covenants by the debtor; or

► information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Company, in full (without taking into account any collateral held by the Company).       

(iii) Measurement and recognition of expected credit losses

The Company recognizes a loss allowance for expected credit losses on trade receivables and contract assets by using a provision matrix. Refer to Note 12(c) for the approach used to measure expected credit losses of trade receivables, Note 12(b) for the loss allowance recognized,and Note 12(a) for changes in the loss allowance on trade receivables. While contract assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial.

The Company applies the general approach for all other financial assets that are subject to the expected credit loss model. The expected credit losses of the respective financial instruments for the years ended December 31, 2019 and 2018 were immaterial. While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was also immaterial.

(iv) Write off policy

Financial instruments are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than generally 90 days past due.

(v) Concentrations of credit risk

As of December 31, 2019 and 2018, trade receivables from one customer represented 9.31% and 8.2% of total trade receivables of the Company, respectively. The credit concentration risk of other trade receivables is insignificant.

F-100

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(c)Liquidity risk

Liquidity risk arises from the financial liabilities of the Company and its subsidiaries and their subsequent ability to meet obligations to repay their financial liabilities as and when they fall due. Management manages the Company’s liquidity risk by closely monitoring cash flow from the operations. The Company has about $54 million in cash and cash equivalents, $208 million in unutilized amounts of bank loans, and the total financial liabilities is $35 million at the reporting date, which for financial assets and liabilities results in a net asset position. Liquidity risk is considered low as of December 31, 2019.  Refer to Note 29 for development subsequent to year end.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payment obligations.

	< 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
	US$’000		US$’000		US$’000		US$’000		US$’000
As of  December 31, 2019
Financial liabilities
Interest-bearing loans and borrowings		11,484		—		—		—		11,484
Trade and other payables		16,879		—		—		—		16,879
Due to related parties		3,284		—		—		—		3,284
Financial liabilities at fair value through profit or loss		3		—		—		—		3
Lease liability		656		910		444		1,182		3,192
		32,306		910		444		1,182		34,842
As of December 31, 2018
Financial liabilities
Interest-bearing loans and borrowings		25,151		—		—		—		25,151
Trade and other payables		21,127		—		—		—		21,127
Due to related parties		2,997		—		—		—		2,997
Financial liabilities at fair value through profit or loss		142		—		—		—		142
Finance lease liability		47		36		11		—		94
		49,464		36		11		—		49,511

27(d)Capital management

The primary objectives of the Company’s capital management are to safeguard the Company’s ability to continue as a going concern and maintain healthy capital ratios in order to support its business, maximize shareholders’ value and to maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the risks characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares or conduct stock repurchase programs. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2019 and 2018.

F-101

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(d)Capital management (continued)

In line with industry practices, the Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

	As of December 31,
	2019			2018
	US$’000			US$’000
Interest bearing loans and borrowings		11,356			24,814
Trade and other payables		16,879			21,127
Less: cash and cash equivalents		(53,673	)		(60,778	)
Net debt		(25,438	)		(14,837	)
Total Equity		228,435			221,816
Capital and net debt		202,997			206,979
Gearing ratio	0.0%			0.0%

The Company has no direct business operations other than its ownership of the capital stock of its subsidiaries and equity investees holdings. As a holding company, the Company’s ability to pay dividends, as well as to meet its other obligations, depends upon the amount of distributions, if any, received from the Company’s operating subsidiaries and other holdings and investments.  The Company’s operating subsidiaries and other holdings and investments, from time to time, may be subject to restrictions on their ability to make distributions to the Company, including as a result of restrictive covenants contained in loan agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other hard currency and other regulatory restrictions.  For example, PRC legal restrictions permit payments of dividends by our business entities in PRC only out of their retained earnings, if any, determined in accordance with relevant PRC accounting standards and regulations.  Under PRC law, such entities are also required to set aside a portion of their net income each year to fund certain reserve funds.  These reserves are not distributable as cash dividends.  The foregoing restrictions may also affect the Company’s ability to fund operations of one subsidiary with dividends and other payments received from another subsidiary.

27(e)Collateral

The credit lines of the Company were collateralized by:

(i) Mortgage of the Company’s land, buildings, machinery and equipment, investment properties and land use rights with a total carrying amount of $15,099 at December 31, 2019 (2018: $9,084);

(ii) Pledge of other receivables of $4,847 at December 31, 2019 (2018: $7,525) ;

(iii) Corporate guarantee issued by the Company and a subsidiary of the Company.

(iv) A trading facility was secured by all the assets and uncalled capital with total carrying amount of $27,454 of a subsidiary as of December 31, 2019 (2018: $ 27,731).

The weighted average interest rates on bank loans and overdrafts as of December 31, 2019 and 2018 were 3.72% and 3.68% per annum, respectively.

F-102

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

28. CASH FLOW INFORMATION

28(a) Investing activities with partial cash payments

	For the year end December 31,
	2019			2018
	US$’000			US$’000
Acquisition of property, plant and equipment		3,406			4,498
Add: Payable for PPE or CIP - Opening		213			311
Less: Payable for PPE or CIP - Ending		(355	)		(213	)
Less: Prepayment for PPE & CIP - Opening		(210	)		(304	)
Add: Prepayment for PPE & CIP - Ending		2,388			210
Less: acquisition by means of a lease		—			(61	)
Cash paid during the year		5,442			4,441

28(b) Reconciliation of liabilities arising from financing activities

	Interest -bearing loans and borrowings			Financial lease liabilities			Total
	US$’000			US$’000			US$’000
Balance at January 1, 2017		41,151			78			41,229
Changes in cash flows		-16,220			(46	)		(16,266	)
Foreign exchange adjustments		(117	)		(8	)		(125	)
Acquisition of PP&E by means of a lease		—			61			61
Other changes		—			5			5
Balance at December 31, 2018		24,814			90			24,904
Recognized on adoption of IFRS 16		—			2,651			2,651
Changes in cash flows		(14,462	)		(426	)		(14,888	)
Foreign exchange adjustments		1,004			29			1,033
Acquisition leases		—			476			476
Other changes		—			8			8
Balance at December 31, 2019		11,356			2,828			14,184

F-103

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

29. SUBSEQUENT EVENT

29(a) CTW dividend payments

On March 20, 2020, the Board of Directors of Charoong Thai declared a cash dividend distribution to its shareholders amounted to $2.9 million (Baht 79.6 million, equivalent to Baht 0.2 per share), $ 1.4 million of which will be distributed to non-controlling interest. The dividend will be paid on May 15, 2020. This dividend distribution plan requires the approval of the 2019 Annual General Meeting of Shareholders of Charoong Thai.

29(b) COVID-19 Could Have a Material Adverse Effect on Our Business, Financial Condition and Results of Operations

The recent outbreak in China of the Coronavirus Disease 2019 (“COVID-19”), which has been declared by the World Health Organization to be a “public health emergency of international concern,” has spread across the globe and is impacting worldwide economic activity and financial markets.  Our manufacturing and production have been affected by the outbreak of COVID-19. COVID-19 has disrupted our operations and the operations of our suppliers, customers, and other business partners and may continue to do so for an indefinite period of time, including as a result of travel restrictions and/or business shutdowns. A slowdown in economic activity as a result of COVID-19 can be expected to result in a reduction in demand for our products. The outbreak of COVID-19 has also resulted in a decline in the price of copper, which has had the effect of reducing the market value of our inventory of copper.

Due to the measures instituted in China in response to COVID-19, our China production facilities have been  operating below normal production levels and our production levels have not yet fully recovered to normal levels. We do not know when our production levels will recover to normal levels.

In addition, the Singapore Government has ordered most business to close from April 7, 2020 until June 1, 2020.  We have been permitted to continue to operate during this period with reduced on site staff. Since April 7, 2020, approximately half of the employees of our Singapore operations have been working from home while the remaining employees have continued to work on site. We do not know if the Singapore Government will extend (or otherwise alter the terms of) its order requiring most business to close or whether our employees who continue to work on site will continue to be permitted to do so.

This is a rapidly evolving situation and the impact of COVID-19 on the global economy and our business is uncertain at this time. While it is not possible at this time to estimate the impact that COVID-19 could have on worldwide economic activity and our business, the continued spread of COVID-19 and the measures taken by  governments, businesses and other organizations in response to COVID-19 are expected to reduce our revenues and could have a material adverse impact our business, financial condition and results of operations.

F-104

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

29(c) Continued Listing Standards Letter from Nasdaq

On November 21, 2019, the Company received written notification (the "Market Value Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it was not in compliance with the $5 million minimum market value of publicly held shares requirement set forth in the Nasdaq rules for listing on the Nasdaq Global Market tier. In accordance with the Nasdaq Listing Rules, the Company was provided 180 calendar days, or until May 19, 2020 (the "Compliance Period"), to regain compliance. On April 16, 2020, Nasdaq announced that, as of April 16, 2020, Nasdaq was tolling the compliance periods for bid price and market value of publicly held shares (“MVPHS”) requirements (collectively, the “Price-based Requirements”) for all listed companies through June 30, 2020.  As a result, companies presently in compliance periods for any Price-based Requirements will remain at that same stage of the process through June 30, 2020 and, commencing on July 1, 2020, companies will receive the balance of any pending compliance period in effect at the start of the tolling period to regain compliance. Accordingly, since the Company had 33 calendar days remaining in its MVPHS compliance period as of April 16, 2020, it will, upon reinstatement of the Price-based Requirements, still have 33 calendar days from July 1, 2020, or until August 3, 2020, to regain compliance. Nasdaq has informed us that the Company can regain compliance, either during the suspension or during the compliance period resuming after the suspension, by evidencing compliance with the Price-based Requirements for a minimum of 10 consecutive trading days. For the Company to regain compliance, the market value of our publicly held shares has to equal or exceed $5 million for a minimum of 10 consecutive business days. On April 22, 2020, the minimum market value of our publicly held Common Shares was $3,592,234.  If the Company does not regain compliance by August 3, 2020, Nasdaq has informed us that Nasdaq will delist the Company's common shares from Nasdaq unless the Company requests a hearing before the Nasdaq Hearings Panel or unless the Company transfers its listing of the Common Shares to the Capital Market tier, which transfer would require that the Company then meet the criteria for transfer to the Capital Market tier. The Company will closely watch the stock price trend to see whether to take actions to meet MVPHS requirements.

Other than the above events, the Company is not aware of any matter or circumstance that has significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company.

30. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved and authorized for issuance by the board of directors on April 24, 2020.

F-105

EX-2.1

EXHIBIT 2.1

DESCRIPTION OF THE RIGHTS OF HOLDERS OF COMMON SHARES

The following is a summary of provisions of Bermuda law and the organizational documents of Asia Pacific Wire & Cable Corporation Limited (the “Company”, “we”, “us”, and “our”), including our memorandum of association and Bye-Laws, regarding the rights of holders of our Common Shares. You are urged to read our memorandum of association and our Bye-Laws in their entirety, copies of which have been filed with the Securities and Exchange Commission (the “SEC”), for a complete understanding of the terms thereof.

Description of Shareholder Rights Attaching to Our Common Shares

The Company was incorporated in Bermuda on September 19, 1996 under the Bermuda Companies Act 1981, as amended (the “Companies Act”). The rights of our shareholders are governed by Bermuda law and our memorandum of association and Bye-Laws.

Our authorized share capital as of December 31, 2019 was $500,000 consisting of 50,000,000 Common Shares, par value $0.01 per share, of which, as of December 31, 2019, there were and are 13,830,769 Common Shares issued of which 13,819,669 Common Shares are outstanding and eligible to vote. There are 11,100 Common Shares that are issued (but not outstanding and not currently eligible to vote) and held as treasury shares by the Company.

• Holders of the Common Shares have no preemptive, redemption, conversion or sinking fund rights.

• Holders of the Common Shares are entitled to one vote per share on all matters submitted to a poll vote of holders of Common Shares and do not have any cumulative voting rights.

• In the event of our liquidation, dissolution or winding-up and subject to any alternative resolution that may be pursued by our shareholders, the holders of Common Shares are entitled to share ratably in our assets, if any, remaining after the payment of all our debts and liabilities.

• Our outstanding Common Shares are fully paid and non-assessable.

• Additional authorized but unissued Common Shares, and issued shares held in treasury, may be issued or conveyed by the Board without the approval of the shareholders.

The holders of Common Shares will receive such dividends, if any, as may be declared by the Board of Directors out of funds legally available for such purposes. We may not declare or pay a dividend, or make a distribution out of contributed surplus, if there are reasonable grounds for believing that:

• we are, or after the payment would be, unable to pay our liabilities as they become due; or

• the realizable value of our assets after such payment or distribution would be less than the aggregate amount of our liabilities.

Share Capital

Our authorized capital consists of one class of Common Shares. Under our Bye-Laws, our Board of Directors has the power to issue any authorized and unissued shares on such terms and conditions as it may determine. Any shares or class of shares may be issued with such preferred, deferred, qualified or other special rights or any restrictions with regard to such matters, whether in regard to dividend, voting, return of capital or otherwise, as we may from time to time by resolution of the shareholders prescribe, or in the absence of such shareholder direction, as the Board of Directors may determine. This provision in the Bye-Laws could be used to prevent a takeover attempt, or to make a takeover attempt prohibitively expensive, and thereby preclude shareholders from realizing a potential premium over the market value of their shares.

Voting Rights

Generally, under Bermuda law and our Bye-Laws, questions brought before a general meeting are decided by a simple majority vote of shareholders present or represented by proxy, with no provision for cumulative voting. Matters will be decided by votes cast by way of voting cards, proxy cards or a show of hands unless a poll is demanded.

If a poll is demanded, each shareholder who is entitled to vote and who is present in person or by proxy has one vote for each Common Share entitled to vote on such question. A poll may only be demanded under the Bye-Laws by:

• the chairman of the meeting;

• at least three shareholders present in person or represented by proxy;

• any shareholder or shareholders present in person or represented by proxy and holding between them not less than one-tenth of the total voting rights of all shareholders having voting rights; or

• a shareholder or shareholders present in person or represented by proxy holding Common Shares conferring the right to vote on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all Common Shares.

Unless the Board of Directors otherwise determines, no shareholder shall be entitled to vote at any general meeting unless all calls or other sums presently payable by that shareholder in respect of all shares held by such shareholder have been paid.

Dividend Rights

Under Bermuda law, a company may declare and pay dividends unless there are reasonable grounds for believing that the company is, or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of the company’s assets would thereby be less than its liabilities.

Under our Bye-Laws, the Board may from time to time declare dividends or distributions out of contributed surplus to be paid to the shareholders according to their rights and interests. With the sanction of a shareholders resolution, the Board of Directors may determine that any dividend may be paid by distribution of specific assets, including paid-up shares or debentures of any other company. The Board of Directors may also pay any fixed cash dividend which is payable on any of our Common Shares half-yearly or on other dates, whenever our position, in the opinion of the Board of Directors, justifies such payment.

Dividends, if any, on our Common Shares will be at the discretion of our Board of Directors, and will depend on our future operations and earnings, capital requirements, surplus and general financial condition as our Board of Directors may deem relevant.

Purchases by the Company of its own Common Shares

Under Bermuda law and as authorized by the Company’s memorandum of association, we may purchase our own Common Shares out of the capital paid up on the Common Shares in question or out of funds that would otherwise be available for dividend or distribution or out of the proceeds of a fresh issue of Common Shares made for the purposes of the purchase. We may not purchase our Common Shares if, on the date on which the purchase is to be effected, there are reasonable grounds for believing that the Company is, or after the purchase would be, unable to pay its liabilities as they become due.

However, to the extent that any premium is payable on the purchase, the premium must be provided out of the funds of the Company that would otherwise be available for dividend or distribution or out of the Company’s share premium account.

2

Preemptive Rights

Our Bye-Laws generally do not provide the holders of our Common Shares preemptive rights in relation to any issues of Common Shares by us or any transfer of our shares.

Variation of Rights

We may issue more than one class of shares and more than one series of shares in each class. The rights attached to any class of shares may be altered or abrogated either:

• with the consent in writing of the holders of more than fifty percent of the issued shares of that class; or

• pursuant to a resolution of the holders of such shares.

The Bye-Laws provide that the necessary quorum shall be two or more shareholders present in person or by proxy holding a majority of shares of the relevant class in issue and entitled to vote. The Bye-Laws specify that the creation or issuance of shares ranking pari passu with existing shares will not, subject to any statement to the contrary in the terms of issuance of those shares or rights attached to those shares, vary the special rights attached to existing shares.

Transfer of Common Shares

Subject to the “Transfer Restrictions” section below, a shareholder may transfer title to all or any of his shares by completing an instrument of transfer in the usual common form or in such other form as the Board of Directors may approve. The form of transfer is required to be signed by or on behalf of the transferor and also the transferee where any share is not fully paid. The transferor shall be deemed to remain the holder of the shares until the name of the transferee is entered in the register of members of the Company.

Transfer Restrictions

The Board of Directors may, in its absolute discretion and without assigning any reason therefor, decline to register any transfer of any share which is not a fully paid share. The Board of Directors may also refuse to register an instrument of transfer of a share unless:

• the instrument of transfer is duly stamped, if required by law, and lodged with the Company;

• the instrument is accompanied by the relevant share certificate for the shares to which it relates, and such other evidence as the Board of Directors shall reasonably require to show the right of the transferor to make the transfer;

• the instrument of transfer is in respect of only one class of shares;

• where applicable, the permission of the Bermuda Monetary Authority with respect thereto has been obtained; and

• subject to the Companies Act, the Bye-Laws and any directions of the Board of Directors from time to time in force, the secretary of the Company may exercise the powers and discretions of the Board of Directors with respect to: (i) the transfer of shares by a shareholder by way of an instrument of transfer in the usual common form and (ii) sending to a notice of refusal to register a transfer of shares where the Board of Directors declines to register such transfer, within three months after the date on which the instrument of transfer was lodged.

In accordance with the provisions of the Exchange Control Act 1972, as amended, and related regulations of Bermuda, the permission of the Bermuda Monetary Authority (the “BMA”) is required for all issuances and transfers of shares (which includes our Common Shares) of Bermuda companies to or from a non-resident of Bermuda for exchange control purposes, other than in cases where the BMA has granted a general permission. The BMA, in its notice to the public dated June 1, 2005, has granted a general permission for the issue and subsequent transfer of any securities of a Bermuda company from and/or to a non-resident of Bermuda for exchange control purposes for so long as any “Equity Securities” of the company (which include our Common Shares) are listed on an

3

“Appointed Stock Exchange” (which would include Nasdaq). In granting the general permission the BMA accepts no responsibility for our financial soundness or the correctness of any of the statements made or opinions expressed herein.

Accordingly, our Common Shares benefit from a general permission for free transferability for all transfers between persons who are not resident in Bermuda for exchange control purposes, for as long as such Common Shares remain listed on an appointed stock exchange. In the event that our Common Shares are delisted from Nasdaq, it will be necessary to obtain the prior permission of the BMA to transfer such Common Shares to any transferee, subject to any applicable general permissions issued by the BMA.

Transmission of Shares

In the event of the death of a shareholder, the survivor or survivors, where the deceased shareholder was a joint holder, and the estate representative, where the deceased shareholder was sole holder, shall be the only persons recognized by us as having any title to the shares of the deceased. “Estate representative” means the person to whom probate or letters of administration has or have been granted in Bermuda, or failing any such person, such other person as the Board of Directors may in its absolute discretion determine to be the person recognized by us for this purpose.

Disclosure of Interests

Under the Companies Act, a director who has an interest in a material contract or a proposed material contract, or a 10% or more interest (directly or indirectly) in an entity that is interested in a contract or proposed contract or arrangement with us, is obligated to declare the nature of such interest at the first opportunity at a meeting of the Board of Directors, or by writing to the Board of Directors. If the director has complied with the relevant sections of the Companies Act and the Bye-Laws with respect to the disclosure of his interest, the director may vote at a meeting of the Board of Directors or a committee thereof on a contract, transaction or arrangement in which that director is interested, in which case his vote shall be counted and he shall be taken into account in ascertaining whether a quorum is present.

Rights in Liquidation

Under Bermuda law, in the event of liquidation or winding-up of a company, after satisfaction in full of all claims of creditors and subject to the preferential rights accorded to any series of preferred shares, the proceeds of such liquidation or winding-up are distributed among the holders of shares in accordance with a company’s bye-laws.

Under our Bye-Laws, if we are wound up, the liquidator may, pursuant to a resolution of the shareholders and any approval required by the Companies Act, divide among the shareholders in cash or other assets the whole or part of our assets, whether such assets shall consist of property of the same kind or not, and may for such purposes set such values as such liquidator deems fair upon any property to be divided and may determine how such division shall be carried out as between the shareholders.

Meetings of Shareholders

Under Bermuda law, a company, unless it elects to dispense with the holding of annual general meetings, is required to convene at least one general meeting per calendar year. The directors of a company, notwithstanding anything in such company’s bye-laws, shall, on the requisition of the shareholders holding at the date of the deposit of the requisition not less than one-tenth of the paid-up capital of the company carrying the right of vote, duly convene a special general meeting. Our Bye-Laws provide that the Board of Directors may, whenever it thinks fit, convene a special general meeting.

Bermuda law requires that shareholders be given at least five days’ notice of a meeting of the Company. Our Bye-Laws extend this period to provide that not less than 20 days’ written notice of a general meeting must be given to those shareholders entitled to receive such notice. The accidental omission to give notice to or non-receipt of a notice of a meeting by any person does not invalidate the proceedings of a meeting.

4

Our Bye-Laws state that no business can be transacted at a general meeting unless a quorum of at least two shareholders representing a majority of the issued shares of the Company are present in person or by proxy and entitled to vote.

Under our Bye-Laws, notice to any shareholders may be delivered either personally or by sending it through the post, by airmail where applicable, in a pre-paid letter addressed to the shareholder at his address as appearing in the share register or by delivering it to, or leaving it at, such registered address. Any notice sent by post shall be deemed to have been served seven (7) days after dispatch. A notice of a general meeting is deemed to be duly given to the shareholder if it is sent to him by cable, telex or tele-copier or other mode of representing or reproducing words in a legible and non-transitory form and such notice shall be deemed to have been served twenty-four (24) hours after its dispatch.

Access to Books and Records and Dissemination of Information

Under Bermuda law, members of the general public have the right to inspect the public documents of a company available at the office of the Bermuda Registrar of Companies. These documents include the memorandum of association and any amendment to the memorandum of association.

Under Bermuda law, the minutes of shareholder meetings will be open for inspection by any shareholder or director without charge for not less than two hours during business hours each day, subject to any reasonable restrictions that we may impose. The shareholders shall be entitled to receive a copy of every balance sheet and statement of income and expenditure before a general meeting as required under the Bye-Laws.

Under our Bye-Laws, unless the Board otherwise determines, the register of shareholders of the Company is required to be open for inspection between 10:00 a.m. and 12:00 noon each working day without charge to members of the general public. A company is required to maintain its share register in Bermuda but may, subject to the provisions of the Companies Act, establish a branch register outside of Bermuda. We have established a branch register with our transfer agent, Computershare Limited, which is based in Jersey City, New Jersey.

Under Bermuda Law, a company is required to keep at its registered office a register of its directors and officers that is open for inspection for not less than two hours in each day by members of the public without charge. Under our Bye-Laws, the register of directors and officers is available for inspection by the public between 10:00 a.m. and 12:00 noon every working day.

Bermuda law does not provide a general right for shareholders to inspect or obtain copies of any other corporate records, except for the Bye-Laws of the Company.

Election or Removal of Directors

The Bye-Laws provide that the number of directors will be such number, not less than two, as our shareholders by resolution may from time to time determine. A director will serve until re-elected or his successor is appointed at the next annual general meeting or his prior removal in the manner provided by the Companies Act or the Bye-Laws. There is no requirement under Bermuda law, the Company’s memorandum of association or its Bye-Laws that a majority of the Company’s directors be independent.

The Bye-Laws provide that each director shall have one vote on all matters presented to the Board for a vote.

The shareholders may by resolution determine that one or more vacancies in the Board of Directors shall be deemed casual vacancies for the purposes of the Bye-Laws. The Board, so long as a quorum of directors remains in office, shall have the power at any time and from time to time to appoint any individual to be a director so as to fill a casual vacancy. The shareholders may approve the appointment of alternate directors or may authorize the Board to appoint them. Directors may also appoint and remove their own alternates. At the Annual General Meeting held on August 31, 2018, the shareholders approved of the total number of directors.

5

We may, in a special general meeting called for this purpose, remove a director, provided notice of such meeting is served upon the director concerned not less than fourteen days before the meeting and he shall be entitled to be heard at that meeting.

The office of a director will be vacated in the event of any of the following:

• if he resigns his office by notice in writing to be delivered to our registered office or tendered at a meeting of the Board of Directors;

• if he becomes of unsound mind or a patient for any purpose under any statute or applicable law relating to mental health and the Board of Directors resolves that his office is vacated;

• if he becomes bankrupt or enters into a general settlement with his creditors;

• if he is prohibited by law from being a director; or

• if he ceases to be a director by virtue of the Companies Act or is removed from office pursuant to the Bye-Laws.

Amendment of Memorandum of Association and Bye-Laws

Bermuda law provides that the memorandum of association of a company may be amended by resolution passed at a general meeting of which due notice has been given. An amendment to a memorandum of association does not require the consent of the Minister of Finance of Bermuda save for specific circumstances, for example, the adopting of any authority to carry on restricted business activities.

Under Bermuda law, the holders of:

• an aggregate of not less than twenty percent in par value of a company’s issued share capital or any class thereof; or

• not less in the aggregate than twenty percent of the company’s debentures entitled to object to amendments to its memorandum of association,

have the right to apply to the Supreme Court of Bermuda for an annulment of any amendment of the memorandum of association. Where such an application is made, the amendment becomes effective only to the extent that it is confirmed by the Bermuda Supreme Court. An application for an annulment of an amendment of the memorandum of association must be made within twenty-one days after the date on which the resolution amending the memorandum of association is passed and may be made on behalf of the persons entitled to make the application by one or more of their number as they may appoint in writing for the purpose.

Our Bye-Laws may be amended in the manner provided for in the Companies Act, which provides that the directors may amend the Bye-Laws, provided that any such amendment shall be effective only to the extent approved by the shareholders.

Merger or Amalgamation

The Companies Act provides that two or more Bermuda companies may merge and their undertaking, property and liabilities shall vest in one of such companies as the surviving company (referred to as a “merger” under Bermuda law). The Companies Act also provides that a Bermuda company may amalgamate with another company and continue as an amalgamated company (referred to as an “amalgamation” under Bermuda law). A merger or amalgamation requires a merger or amalgamation agreement which must be approved by the board of directors and at a meeting of the shareholders by seventy-five percent of the shareholders present and entitled to vote at such meeting in respect of which the quorum shall be two persons holding or representing by proxy more than one-third of the issued shares of the company. These provisions do not apply where a holding company is merging or amalgamating with one or more of its wholly-owned subsidiaries or where two or more wholly-owned companies of the same holding company are merging or amalgamating.

6

Under Bermuda law, in the event of a merger or an amalgamation of a Bermuda company, a shareholder who did not vote in favor of the transaction and who is not satisfied that fair value has been offered for the shares, may apply to the Supreme Court of Bermuda within one month of notice of the meeting of shareholders to appraise the fair value of those shares.

Class Actions and Derivative Actions

Class actions, as they are commonly understood in the United States, are not available to shareholders under Bermuda law. Derivative actions are generally only available to shareholders under Bermuda law in very limited circumstances. A shareholder may commence an action in the name of a company to remedy a wrong done to the company where the wrongdoers are in control of the company and the act complained of is of a fraudulent character, oppressive, beyond the corporate power of the company, illegal or would have required the approval of a greater percentage of the company’s shareholders than those that actually approved it. A shareholder may not commence such an action where the wrong complained of is capable of ratification by the company in a general meeting by ordinary resolution.

Since the July 2018 amendment to the Rules of the Supreme Court, if a derivative action is commenced and the relevant defendant enters an appearance, leave of the Supreme Court of Bermuda must be obtained before the derivative action can proceed.

When one or more shareholders believes the affairs of a company are being conducted in a manner which is oppressive or prejudicial to the interest of some part of the shareholders, the Supreme Court of Bermuda, upon petition, brought by the shareholder(s), may make such order as it sees fit if it is satisfied that the affairs of the company are or have been conducted in such an oppressive or prejudicial manner and, that, as a result, it would be just and equitable to wind up the company, but that to so wind up the company would unfairly prejudice the part of the shareholders; such an order can include (with limitation) provisions regulating the conduct of the company’s affairs in the future or ordering the purchase of the shares of any shareholders by other shareholders or by the company, and in the case of a purchase of the shares by the company, for the reduction accordingly of the company’s capital or otherwise.

Personal Liability of Directors and Indemnity

The Companies Act requires every officer, including directors, of a company in exercising powers and discharging duties, to act honestly in good faith with a view to the best interests of the company, and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. The Companies Act further provides that any provision, whether in the bye-laws of a company or in any contract between the company and any officer or any person employed by the company as auditor, exempting such officer or person from liability, or indemnifying him against any liability which by virtue of any rule of law would otherwise attach to him, in respect of any fraud or dishonesty of which he may be guilty in relation to the company, shall be void.

Every director, officer and committee member shall be indemnified out of our funds against all civil liabilities, loss, damage or expense including liabilities under contract, tort and statute or any applicable foreign law or regulation and all reasonable legal and other costs and expenses properly payable, incurred or suffered by him as director, officer or committee member; provided that the indemnity contained in the Bye-Laws will not extend to any matter which would render it void under the Companies Act as discussed above.

Exchange Controls

We have been designated by the Bermuda Monetary Authority as a non-resident under the Exchange Control Act of 1972 (the “Exchange Control Act”). This designation allows us to engage in transactions in currencies other than the Bermuda dollar.

7

The transfer of Common Shares between persons regarded as resident outside Bermuda for exchange control purposes and the issue of Common Shares to such persons may be effected without specific consent under the Exchange Control Act and regulations thereunder, provided the Common Shares are listed on an appointed stock exchange.

As an “exempted company,” we are exempt from Bermuda laws which restrict the percentage of share capital that may be held by non-Bermudians.

8

EX-12.1

Exhibit 12.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Yuan Chun Tang, certify that:

1. I have reviewed this annual report on Form 20-F of Asia Pacific Wire & Cable Corporation Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by this annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date:  April 27, 2020

/s/ Yuan Chun Tang
Name:	Yuan Chun Tang
Title:	Chief Executive Officer

EX-12.2

Exhibit 12.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ivan Hsia, certify that:

1. I have reviewed this annual report on Form 20-F of Asia Pacific Wire & Cable Corporation Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by this annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date:  April 27, 2020

/s/ Ivan Hsia
Name:	Ivan Hsia
Title:	Chief Financial Officer

EX-13.1

Exhibit 13.1

Certification Pursuant to 18 U.S.C. Section 1350

In connection with the Annual Report of Asia Pacific Wire & Cable Corporation Limited (the “Company”) on Form 20-F for the period ended December 31, 2019 as filed with the Securities and Exchange Commission (the “Report”), I, Yuan Chun Tang, Chief Executive Officer of the Company, hereby certify, solely for purposes of 18 U.S.C. Section 1350, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

Date: April 27, 2020	/s/ Yuan Chun Tang
	Name: Yuan Chun Tang
	Title: Chief Executive Officer

EX-13.2

Exhibit 13.2

Certification Pursuant to 18 U.S.C. Section 1350

In connection with the Annual Report of Asia Pacific Wire & Cable Corporation Limited (the “Company”) on Form 20-F for the period ended December 31, 2019 as filed with the Securities and Exchange Commission (the “Report”), I, Ivan Hsia, Chief Financial Officer of the Company, hereby certify, solely for purposes of 18 U.S.C. Section 1350, that to the best of my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

Date: April 27, 2020	/s/ Ivan Hsia
	Name: Ivan Hsia
	Title: Chief Financial Officer

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Investment Properties

12 Months Ended

Dec. 31, 2019

Disclosure Of Investment Property [Abstract]

Investment Properties

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).

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Principal Activities and Corporate Information

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Principal Activities and Corporate Information

1. PRINCIPAL ACTIVITIES AND CORPORATE INFORMATION

Asia Pacific Wire & Cable Corporation Limited (“APWC” or the “Company”), which is a subsidiary of Pacific Electric Wire & Cable Co., Ltd. (“PEWC”), a Taiwanese company, was incorporated as an exempted company in Bermuda on September 19, 1996 under the Companies Act 1981 of Bermuda (as amended) for the purpose of acting as a holding company. The Company is principally engaged in owning operating companies engaged in the power cable, telecommunication cable, enameled wire and electronic cable industry. The Company’s registered office is located at Victoria Place, 5th Floor, 31 Victoria Street, Hamilton HM 10, Bermuda. The Company’s executive business office is presently located in Taipei, Taiwan.

The Company’s operating subsidiaries (the “Operating Subsidiaries”) are engaged in the manufacturing and distribution of telecommunications, power cable and enameled wire products in Singapore, Thailand, Australia, the People’s Republic of China (“PRC”) and other markets in the Asia Pacific region. Major customers of the Operating Subsidiaries include government organizations, electric contracting firms, electrical dealers, and wire and cable factories. The Company’s Operating Subsidiaries also engage in the distribution of certain wire and cable products manufactured by PEWC and third parties. The Company also provides project engineering services in supply, delivery and installation (the “SDI”) of power cable to certain of its customers.

Since 1997, the Company has been a U.S. public company with its common shares registered with the Securities and Exchange Commission (the “SEC” or the “Commission”). On April 29, 2011, the Company’s common shares commenced trading on Nasdaq Capital Market tier. On February 15, 2013, the Company’s common shares started trading on the Nasdaq Global Market tier.

PEWC is currently holding 75.4% of the equity of the Company and is the Company’s ultimate parent company

Share Capital Repurchase Program

The Company’s Board of Directors authorized a share capital repurchase program on August 28, 2012.  During 2012 and 2013, the Company repurchased 11,100 shares with total considerations of $38 until the Company suspended the share capital repurchase program as of June 30, 2013. The Company records the value of its common shares held in the treasury at cost.

On August 13, 2014, the Company announced that its Board of Directors authorized the future implementation of a share repurchase program of up to $1 million worth of its Common Shares. The Company did not announce a commencement date for that future share repurchase program, and, to date, it has not yet been implemented, and no financial liability has been recognized.

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Investments in Associates - Movements in Investments in Associates (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Significant Investments In Associates [Abstract]
At January 1	$ 864	$ 861
Share of loss of associates	(3)	(3)	$ (3)
Exchange difference	74	6
At December 31	$ 935	$ 864	$ 861

XML

Investment Properties - Amount Recognized in Profit Arising from Investment Properties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Rental Income From Investment Property Net Of Direct Operating Expense [Abstract]
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

XML

Inventories

12 Months Ended

Dec. 31, 2019

Classes Of Inventories [Abstract]

Inventories

13. INVENTORIES

	As of December 31,
	2019			2018
	US$’000			US$’000
Raw materials and supplies		19,712			25,717
Work in progress		19,118			15,598
Finished goods		50,309			46,592
		89,139			87,907
Allowance for inventories		(3,952	)		(3,982	)
Total inventories at the lower of cost and net    realizable value		85,187			83,925

Inventories recognized as an expense during the year ended December 31, 2019, December 31, 2018 and December 31, 2017 amounted to $313,695, $388,079 and $384,995 respectively.

For the year ended December 31, 2019, the amount of $322 was credited to cost of sales when the circumstances, such as copper price fluctuation, that caused the net realizable value of inventory to be lower than its cost no longer existed.

For the year ended December 31, 2018 and 2017, the Company recognized allowance for inventory of $1,613 and $532 as an expense in cost of sales for inventories carried at net realizable value.

XML

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Comprehensive Income [Abstract]
Income tax effect on exchange differences on translation of foreign operations	$ 0	$ 0	$ 0

XML

Employee Benefit

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Employee Benefit

21. EMPLOYEE BENEFIT

	As of December 31,
	2019						2018
	Current		Non-current		Total		Current		Non-current		Total
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Employee benefit liabilities
Pension-Defined benefit plans		1,436		10,306		11,742		855		8,161		9,016
Long service leave		452		128		580		427		112		539
Total		1,888		10,434		12,322		1,282		8,273		9,555

21(a)Pension – Defined contribution plans

The Company has several defined contribution plans covering its employees in Australia, PRC, Singapore, Thailand, and Taiwan. Contributions to the plan are made monthly. Total charges for the years ended December 31, 2019, 2018 and 2017, were $1,160, $1,264, and $1,280, respectively.

21(b)Pension – Defined benefit plans

The defined benefit liability recognized in the consolidated balance sheet in respect to defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period, together with adjustments for past service costs and actuarial gains or losses. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using future actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits.

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rates of 1 to 13 times of their final month’s salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees, at rates of 1 to 26 times of final month's salary. The plan is not funded. The Company pays to settle the obligations as and when employees retire.

21. EMPLOYEE BENEFIT (continued)

21(b)Pension – Defined benefit plans (continued)

The following tables summaries the components of net benefit expense recognized in the income statement and the funded status and amounts recognized in the consolidated balance sheet for the plan:

	For the year ended December 31,
Net benefit cost	2019		2018		2017
	US$’000		US$’000		US$’000
Current service cost		546		419		360
Past service cost		121		—		—
Interest cost on benefit obligation		254		202		210
Net benefit cost		921		621		570

	For the year ended December 31,
Other comprehensive income	2019		2018		2017
	US$’000		US$’000		US$’000
Actuarial (gain) / loss – experience		494		396		251
Actuarial (gain) / loss – demographic assumption		18		1		184
Actuarial (gain) / loss – financial assumption		1,215		13		337
Actuarial loss		1,727		410		772

	For the year ended December 31,
Change in the defined obligation	2019			2018			2017
	US$’000			US$’000			US$’000
Defined benefit obligation at January 1		9,016			8,293			6,652
Current service cost		546			419			360
Past service cost		121			—			—
Interest cost on benefit obligation		254			202			210
Benefits paid directly by the Company		(535	)		(352	)		(274	)
Actuarial loss in other comprehensive income		1,727			410			772
Exchange differences		613			44			573
Defined benefit obligation at December 31		11,742			9,016			8,293

Actuarial assumptions

The significant assumptions used in determining the actuarial present value of the defined benefit obligations for the year ended December 31, 2019 and 2018 are as follows:

	2019		2018
	%		%
Discount rate		1.5		2.6 ~ 2.7
Rate of salary increase	5.0~6.0		5.0 ~ 6.0
Pre-retirement mortality	* Thailand TMO17 Tables		* Thailand TMO17 Tables
* TMO represented as Thailand Mortality Ordinary Tables

21. EMPLOYEE BENEFIT (continued)

21(b)Pension – Defined benefit plans (continued)

Maturity profile of defined benefit obligation

The following pension benefit payments are expected payments to be made in the future years out of the defined benefit plan obligation:

	As of December 31,
	2019		2018
	US$’000		US$’000
Within the next 12 months (next annual reporting period)		1,340		855
Between 2 and 5 years		2,489		2,374
Between 6 and 10 years		4,391		4,187
Beyond 10 years		16,917		17,084
Total expected payments		25,137		24,500
Weighted average duration of defined benefit obligation	9 years		10 - 11 years

Sensitivity analysis

A one-percentage point change in the assumed rates would have yielded the following effects:

	2019			2018
	US$’000			US$’000
Discount rate – 1% increase		(1,003	)		(777	)
Discount rate – 1% decrease		1,178			908
Rate of salary increase – 1% increase		1,115			869
Rate of salary increase – 1% decrease		(973	)		(762	)

The sensitivity result above determines their individual impact on the plan’s year-end defined benefit obligation. In reality, the plan is subject to multiple external experience items which may move the defined benefit obligation in similar or opposite directions, while the plan’s sensitivity to such changes can vary over time.

21(c) Long service leave

The liability for long service leave is recognized in the provision for employee benefits and measured as present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bond with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. As of December 31, 2019 and 2018, the amount of long service leave obligation was $580 and $539, respectively.

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Financial Assets and Financial Liabilities - Foreign Currency Forward Contracts (Detail) - Foreign currency forward contracts [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Financial Instruments [Line Items]
Assets	$ 0	$ 0
Liabilities	$ 3	$ 142

XML

Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Disclosure of financial assets [Line Items]
Trade receivables	$ 74,077	$ 79,617	$ 112,419	$ 112,403
Other receivables	6,868	12,422
Gross carrying amount [Member]
Disclosure of financial assets [Line Items]
Trade receivables	75,627	81,274
Other receivables	6,986	12,502
Loss allowances [Member]
Disclosure of financial assets [Line Items]
Trade receivables	(1,550)	(1,657)
Other receivables	$ (118)	$ (80)

XML

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Inventories [Line Items]
Inventories	$ 85,187	$ 83,925
Gross carrying amount [Member]
Disclosure Of Inventories [Line Items]
Raw materials and supplies	19,712	25,717
Work in progress	19,118	15,598
Finished goods	50,309	46,592
Inventories	89,139	87,907
Accumulated impairment [Member]
Disclosure Of Inventories [Line Items]
Inventories	$ (3,952)	$ (3,982)

XML

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of income tax expense [Line Items]
Statutory corporate income tax rate	20.00%	20.00%	20.00%
Amount of uncertain tax position (excluding interest and penalties) included in the consolidated balance sheets	$ 451	$ 674	$ 706
Interest	845	1,200	966
Unused tax losses [Member]
Disclosure of income tax expense [Line Items]
Unused net operating losses for which no deferred tax assets have been recognized	4,038	3,084	2,803
Tax losses unrecognized deferred tax assets (before tax effect)	18,422	13,698	12,769
Deductible Temporary Differences [Member]
Disclosure of income tax expense [Line Items]
Deductible temporary differences for which no deferred tax asset is recognized	1,030	792	1,144
Deductible temporary differences (before tax effect) not recognized deferred tax assets.	4,695	3,557	4,930
Uncertain tax position [Member]
Disclosure of income tax expense [Line Items]
Interest	81	108	114
Penalty	0	0	0
Interest reversed	223	0	276
Penalty reversed	71	0	87
Exchange differences relating to interest	(12)	(41)	65
Exchange differences relating to penalty	$ (6)	$ (25)	$ 38
Singapore (Country of domicile) [Member]
Disclosure of income tax expense [Line Items]
Statutory corporate income tax rate	17.00%	17.00%	17.00%
Withholding tax on dividends	0.00%	0.00%	0.00%
Thailand (Country of domicile) [Member]
Disclosure of income tax expense [Line Items]
Statutory corporate income tax rate	20.00%	20.00%	20.00%
Withholding tax on dividends	10.00%	10.00%	10.00%
Australia (Country of domicile) [Member]
Disclosure of income tax expense [Line Items]
Statutory corporate income tax rate	30.00%	30.00%	30.00%
The People's Republic of China (Country of domicile) [Member]
Disclosure of income tax expense [Line Items]
Statutory corporate income tax rate	25.00%	25.00%	25.00%
Withholding tax on dividends	10.00%	10.00%	10.00%

XML

Principal Activities and Corporate Information - Additional Information (Detail) - USD ($)		10 Months Ended
	Aug. 13, 2014	Jun. 30, 2013	Dec. 31, 2019	Dec. 31, 2018
Disclosure corporate information [Line Items]
Number of shares repurchased under share capital repurchase program		(11,100)
Total consideration for shares repurchased under share capital repurchase program		$ 38,000
Financial liabilities recognized	$ 0		$ 34,350,000	$ 49,170,000
Top of range [Member]
Disclosure corporate information [Line Items]
Monetary amount of common shares authorized to repurchase under share capital repurchase program	$ 1,000,000
Pacific Electric Wire & Cable Co., Ltd. [Member]
Disclosure corporate information [Line Items]
Percentage of equity interest held by the ultimate parent company			75.40%

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Right of Use Assets Under Non-cancellable Operating Lease Commitments

From January 1, 2019, the company has recognized right-of-use assets for these leases (see Note 16 and Note 27(c)).

	As of December 31,
	2018
	US$’000
Within one year		616
After one year but not more than five years		1,279
More than five years		1,368
		3,263

Future Minimum Payments under Finance Leases with Initial Terms of One Year or More

Future minimum payments under finance leases with initial terms of one year or more consisted of the following for December 31, 2018. (see Note 16 and Note 27(c)).

	2018
	Minimum payments			Present value of payments
	US$’000			US$’000
Within one year		47			44
After one year but not more than five years		47			46
More than five years		—			—
Total minimum lease payments		94			90
Less: amount representing finance charges		(4	)		—
Present value of minimum lease payment		90			90

XML

Income and Expenses Items - Summary of Finance Costs and Finance Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis Of Income And Expense [Abstract]
Interest on debts and borrowings	$ 754	$ 1,196	$ 962
Interest on leases liabilities	91	4	4
Total interest expenses	845	1,200	966
Banking charges	167	178	255
Total finance costs	1,012	1,378	1,221
Interest income	506	482	876
Total finance income	$ 506	$ 482	$ 876

XML

Cash Flow Information - Summary of Reconciliation of Liabilities Arising from Financing Activities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Balance at January 1	$ 24,904	$ 41,229
Recognized on adoption of IFRS 16	2,651
Changes in cash flows	(14,888)	(16,266)
Foreign exchange adjustments	1,033	(125)
Acquisition of PP&E by means of a lease	476	61
Other changes	8	5
Balance at December 31	14,184	24,904
Interest-bearing loans and borrowings [Member]
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Balance at January 1	24,814	41,151
Recognized on adoption of IFRS 16
Changes in cash flows	(14,462)	(16,220)
Foreign exchange adjustments	1,004	(117)
Acquisition of PP&E by means of a lease
Other changes
Balance at December 31	11,356	24,814
Financial lease liabilities [Member]
Disclosure Of Reconciliation Of Liabilities Arising From Financing Activities [Line Items]
Balance at January 1	90	78
Recognized on adoption of IFRS 16	2,651
Changes in cash flows	(426)	(46)
Foreign exchange adjustments	29	(8)
Acquisition of PP&E by means of a lease	476	61
Other changes	8	5
Balance at December 31	$ 2,828	$ 90

XML

Trade and Other Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Summary of Trade and Other Receivables

	As of December 31,
	2019			2018
	US$’000			US$’000
Trade receivables		75,627			81,274
Less: Loss allowances		(1,550	)		(1,657	)
Trade receivable, net		74,077			79,617
Other receivables		6,986			12,502
Less: Loss allowances		(118	)		(80	)
Other receivable, net		6,868			12,422

Movement in Provision for Impairment of Trade Receivables

12(a) Movement in the loss allowance on trade receivables

	2019			2018
	US$’000			US$’000
At January 1		1,657			3,456
Charge for the year		72			726
Write-off		(1	)		(2,292	)
Unused amounts reversed		(194	)		(156	)
Currency translation adjustment		19			(74	)
Reclassification		(3	)		(3	)
At December 31		1,550			1,657

Aging Analysis of Trade Receivables

12(b)Aging analysis of trade receivables

					Past due
	Total		Current		1-30 days		31-60 days		61-90 days		91-120 days		>120 days
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
December 31, 2019
Expected loss rate	2.05%		0.14%		0.76%		3.75%		9.52%		23.89%		75.97%
Gross carrying amount - trade receivables		75,627		59,867		9,979		3,759		294		180		1,548
Loss allowances		1,550		86		76		141		28		43		1,176
Trade receivable, net		74,077		59,781		9,903		3,618		266		137		372
December 31, 2018
Expected loss rate	2.04%		0.07%		0.86%		3.95%		20.18%		31.71%		64.70%
Gross carrying amount - trade receivables		81,274		67,318		9,183		2,276		327		82		2,088
Loss allowances		1,657		45		79		90		66		26		1,351
Trade receivable, net		79,617		67,273		9,104		2,186		261		56		737

XML

Equity - Authorized Shares and Common Shares Issued and Fully Paid (Parenthetical) (Detail) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Classes Of Share Capital [Abstract]
Common shares par value	$ 0.01	$ 0.01

XML

New Standards and Interpretations (Tables)

12 Months Ended

Dec. 31, 2019

IFRS 16 [Member]

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Schedule of Significant Effects of Adopting New Standards

Affected items of consolidated balance sheet	As of December 31, 2018		Effect of application of new standards			As of January 1, 2019		Remarks
	US$’000		US$’000			US$’000
Assets
Prepayments		1,140		(59	)		1,081	B
Lease assets*		66		(66	)		—	A
Right-of-use assets		—		3,801			3,801	A, B, C
Prepaid land lease payments		978		(978	)		—	B
Total affected assets		2,184		2,698			4,882
Liabilities
Financial lease liabilities - current		44		362			406	C
Financial lease liabilities - non-current		46		2,336			2,382	C
Total affected liabilities		90		2,698			2,788
* included in the line "Property, plant and equipment" in the balance sheet

A. Lease assets of $66 previously recognized under finance leases were reclassified from property, plant and equipment to right-of-use assets.

B. Prepaid land lease payments of $59 and $978 previously classified as prepayment under current assets and prepaid land lease payments under non-current assets were reclassified to right-of-use assets.

C.  The Company recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases under IAS 17, except for short-term leases and leases of low-value asset. The Company recognized right-of-use assets based on the amount equal to the lease liabilities. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at January 1, 2019.

Summary of Reconciliation of IAS 17 Non-cancelled Operating Lease Commitment to IFRS 16 Lease Liability

Reconciliation of IAS 17 non-cancelled operating lease commitment to IFRS 16 lease liability:

	2019
	US$’000
Operating lease commitments disclosed as at December 31, 2018		3,263
Add: finance lease liabilities recognized as at December 31, 2018		90
Discounted using the incremental borrowing rate at January 1, 2019		(380	)
Recognition exemption for:
Short-term leases		(169	)
Leases of low-value assets		(16	)
Lease liabilities recognized as at January 1, 2019		2,788

IFRS 9 and IFRS 15 [Member]

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Schedule of Significant Effects of Adopting New Standards

The significant effects of adopting the new standards as of January 1, 2018 are summarized as below:

Affected items of consolidated balance sheet	As of December 31, 2017		Effect of application of new standards			As of January 1, 2018		Remarks
	US$’000		US$’000			US$’000
Assets
Contract assets - current		—		162			162	A
Gross amounts due from customers for contract work-in-progress		162		(162	)		—	A
Trade receivables		112,403		16			112,419	C
Financial assets – available for sale		2,747		(2,747	)		—	B
Financial assets at fair value through other comprehensive income		—		2,747			2,747	B
Deferred income tax assets		3,022		4			3,026	D
Total affected assets		118,334		20			118,354
Liabilities
Contract liabilities - current		—		113			113	E
Total affected liabilities		—		113			113
Equity
Retained earnings		53,350		(93	)		53,257	B, C, D, E
Total affected equity		53,350		(93	)		53,257
Total affected liabilities and equity		53,350		20			53,370

A. In accordance with IFRS 15, the Company reclassified gross amounts due from customers for contract work-in-progress in the amount of $162 to contract assets as of January 1, 2018.

B. Equity investments in non-listed equity investments previously classified as available-for-sale financial assets were reclassified and measured as financial assets at FVOCI because these investments are held as long-term strategic investments purpose. As a result, assets with fair value of $2,747 were reclassified from available-for-sale financial assets to financial assets at FVOCI and fair value gains of $1,717 were reclassified from the available-for-sale financial assets reserve to the FVOCI reserve on January 1, 2018, of which $843 was related to non-controlling interests.

C. The application of IFRS 9 has fundamentally changed the Company’s accounting for impairment losses for trade receivable by replacing IAS 39’s incurred loss approach with a forward looking ECL approach.  Upon application of IFRS 9, the Company reversed impairment on trade receivables by $16. As a result, trade receivables and retained earnings increased by $16.

D. The Company recognized deferred income tax assets for the temporary differences arising from the adjustments upon initial application of IFRS 9 and IFRS 15. Deferred income tax assets and retained earnings both increased by $4.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

E. In accordance with IFRS 15, the Company’s performance obligation to provide custodial and transportation services are recognized as contract liabilities under bill-and-hold agreements. After adopting IFRS 15, the Company recognizes revenue from custodial services over time and transportation revenue upon delivery. As of January 1, 2018, the balance of contract liabilities increased by $113, and retained earnings decreased by $113.

IFRS 15 [Member]

Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]

Schedule of Significant Effects of Adopting New Standards

The following tables summarized the impacts of adopting IFRS 15 on the consolidated income statement for the year ended December 31, 2018 and its consolidated balance sheet as of December 31, 2018 for each of the line items affected. There was no material impact on the consolidated statement of cash flows for the year ended December 31, 2018.

Affected items of consolidated income statement for the year ended December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Revenue		425,940			(26	)		425,914
Gross profit		36,248			(26	)		36,222
Operating profit		8,684			(26	)		8,658
Profit before tax		11,332			(26	)		11,306
Income tax expense		(3,886	)		5			(3,881	)
Profit for the year		7,446			(21	)		7,425

Affected items of consolidated balance sheet as of December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Assets
Contract assets - current		1,460			(1,460	)		—
Gross amounts due from customers for contract work-in-process		—			1,460			1,460
Deferred income tax assets		3,919			(18	)		3,901
Total affected assets		5,379			(18	)		5,361
Liabilities
Other current liabilities		3,272			(88	)		3,184
Total affected liabilities		3,272			(88	)		3,184
Equity
Retained earnings		55,016			34			55,050
Foreign currency translation reserve		(15,251	)		1			(15,250	)
Non-controlling interests		71,788			35			71,823
Total affected equity		111,553			70			111,623
Total affected liabilities and equity		114,825			(18	)		114,807

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

XML

Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017 are:

	2019			2018			2017
	US$’000			US$’000			US$’000
Consolidated income statements
Current income tax:
Current income tax charge		1,699			4,068			4,785
Previously unrecognized tax loss used to reduce current income tax		—			(128	)		(1,066	)
Adjustments for current income tax of prior years		(16	)		1			348
Total current income tax		1,683			3,941			4,067
Deferred tax expenses/(benefits):
Relating to origination and reversal of temporary differences		374			243			1,210
Relating to change in tax rate		—			—			—
Previously unrecognized tax loss used to reduce deferred tax expenses		—			(298	)		(137	)
Total deferred tax expenses/(benefits)		374			(55	)		1,073
Income tax expense reported in the income statement		2,057			3,886			5,140
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		334			(84	)		(16	)
Effect of change in tax rate		—			—			—
Net loss on actuarial gains and losses
Recognized during the year		(345	)		(82	)		(154	)
Effect of change in tax rate		—			—			—
Income tax benefits charged to other comprehensive (loss) income		(11	)		(166	)		(170	)

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:

	2019			2018			2017
	US$’000			US$’000			US$’000
Profit before tax		1,106			11,332			18,668
Tax at statutory rate of 20% (2018: 20%; 2017: 20%)		221			2,266			3,734
Foreign income taxed at different rate		499			697			1,151
Expenses not deductible for tax purpose		221			(33	)		600
Utilization of previously unrecognized tax losses		—			(128	)		(1,066	)
Tax benefit arising from previously unrecognized tax losses		—			(298	)		(137	)
Net deferred tax asset not recognized		949			679			78
Written-off deferred tax		218			(4	)		10
Tax exempt on income		(144	)		(135	)		(245	)
Uncertain tax position		(454	)		11			(270	)
Return to provision adjustment		(16	)		1			348
Deferred tax liability arising from undistributed earnings		215			578			602
Withholding tax on dividends		355			270			349
Others		(7	)		(18	)		(14	)
Income tax expense reported in income statement		2,057			3,886			5,140

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,
	2019			2018			2019			2018			2017
	US$’000			US$’000			US$’000			US$’000			US$’000
Outside basis differences		(3,829	)		(3,614	)		215			578			602
Revaluations of financial assets at fair value through other comprehensive income (2017: Revaluations of available-for-sale investment to fair value)		(679	)		(345	)		—			—			—
Accrued interest income		(181	)		(154	)		13			12			11
Unutilized building allowance (net)		(36	)		(133	)		(98	)		(95	)		11
Unused tax losses		546			644			119			(459	)		455
Allowance for doubtful accounts		245			290			47			(97	)		(25	)
Inventory impairment		554			657			147			(236	)		(161	)
Rebates and other accrued liabilities		472			426			(46	)		(38	)		(6	)
Unpaid retirement benefits		1,553			1,353			(81	)		(54	)		(62	)
Deferred revenue and cost of sales		23			16			(6	)		(14	)		393
Actuarial loss		796			450			—			—			—
Unabsorbed depreciation		637			701			57			(55	)		(45	)
Mark-to-Market value of forward contract		—			28			28			(28	)		—
Others		(301	)		(325	)		(21	)		431			(100	)
Deferred tax expenses / (benefits)								374			(55	)		1,073
Net deferred tax assets		(200	)		(6	)

Disclosure Of Reconciliation Of Changes In Deferred Tax Liability Asset Explanatory

Reconciliation of deferred tax assets, net

	2019			2018			2017
	US$’000			US$’000			US$’000
Opening balance as of January 1		(6	)		(132	)		526
Tax benefit/(expenses) during the period recognized in profit or loss		(374	)		55			(1,073	)
Tax benefit/(expenses) during the period recognized in other comprehensive income		11			166			170
Exchange difference on translation foreign operations		169			(95	)		245
Closing balance as of December 31		(200	)		(6	)		(132	)

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, 2019 and 2018, that may be applied against future taxable income and that expire as follows respectively:

	As of December 31,
Year of expiration	2019		2018
	US$’000		US$’000
2019		—		784
2020		3,067		3,020
2021		5,246		5,121
2022		2,216		2,105
2023		4,855		4,760
2024		3,605		—
No expiration		1,591		972
		20,580		16,762

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	2019			2018			2017
	US$’000			US$’000			US$’000
Balance as of January 1		674			706			828
Additions based on tax positions related to the current year		—			—			—
Decrease due to lapses in statute of limitations		(215	)		—			(175	)
Exchange difference		(8	)		(32	)		53
Balance as of December 31		451			674			706

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,
	2019		2018		2017
	US$’000		US$’000		US$’000
Accrued interest on uncertain tax position		713		867		800
Accrued penalties on uncertain tax position		384		461		486
Total accrued interest and penalties on uncertain tax position		1,097		1,328		1,286

XML

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of transactions between related parties [Line Items]
Other income	$ 717	$ 1,817	$ 214
Immediate Holding Company [Member]
Disclosure of transactions between related parties [Line Items]
Income from discharge of liability		1,537
Other income		$ 1,537
Bottom of range [Member] | PEWC Singapore Co. (Pte) Ltd. [Member]
Disclosure of transactions between related parties [Line Items]
Interest rates on the balance due to related party	3.09%	2.70%
Top Of Range [Member] | PEWC Singapore Co. (Pte) Ltd. [Member]
Disclosure of transactions between related parties [Line Items]
Interest rates on the balance due to related party	3.79%	3.40%

XML

Segment Information - Revenue From External Customers Based Major Categories (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 338,160	$ 425,940	$ 425,215
At a point in time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	331,190	408,992
Over time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	6,970	16,948
North Asia (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	76,575	103,647
North Asia (Segment) [Member] | At a point in time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	76,575	103,647
Thailand (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	172,379	213,424
Thailand (Segment) [Member] | At a point in time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	172,031	213,212
Thailand (Segment) [Member] | Over time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	348	212
ROW (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	89,206	108,869
ROW (Segment) [Member] | At a point in time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	82,584	92,133
ROW (Segment) [Member] | Over time [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	6,622	16,736
Power [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	128,179	156,901
Power [Member] | Thailand (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	49,493	64,771
Power [Member] | ROW (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	78,686	92,130
Enamel [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	179,572	217,894
Enamel [Member] | North Asia (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	76,575	103,647
Enamel [Member] | Thailand (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	102,997	114,247
Others [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	30,409	51,145
Others [Member] | Thailand (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	19,889	34,406
Others [Member] | ROW (Segment) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 10,520	$ 16,739
Manufactured Products [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue			361,853
Distributed Products [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue			41,985
SDI [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue			$ 21,377

XML

Commitments and Contingencies - Future Minimum Payments under Finance Leases with Initial Terms of One Year or More (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Disclosure of finance lease and operating lease by lessee [Line Items]
Minimum payments	$ 94
Less: amount representing finance charges	(4)
Present value of minimum lease payment	90
Within one year [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Minimum payments	47
Present value of minimum lease payment	44
After one year but not more than five years [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Minimum payments	47
Present value of minimum lease payment	$ 46

XML

New Standards And Interpretations - Schedule of Significant Effects of Adopting IFRS 16 (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Right of use assets	$ 3,735	$ 3,801	$ 0
Effect of Application of New Standards [Member] | Property, plant and equipment [member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Right of use assets		66
Effect of Application of New Standards [Member] | Prepayment under Current Assets [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Right of use assets		59
Effect of Application of New Standards [Member] | Prepaid Land Lease Payments under Non-current Assets [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Right of use assets		$ 978

XML

New Standards And Interpretations - Schedule of Significant Effects of Adopting New Standards (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Contract assets	$ 4,686	$ 1,460	$ 162
Available-for-sale financial assets expected to reclassify			2,747
Fair value gains on financial assets reclassified from available-for-sale financial assets reserve to fair value other comprehensive income reserve			1,717
Trade receivables	74,077	79,617	112,419	$ 112,403
Retained earnings	53,384	55,016	53,257	53,350
Deferred tax assets	3,939	3,919	3,026	$ 3,022
Contract liabilities - current	$ 216	$ 756	113
IFRS 9 [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Trade Receivables Impairment			16
Trade receivables			16
Retained earnings			16
Effect of IFRS 9 And IFRS 15 [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Retained earnings			4
Deferred tax assets			4
Non-controlling interests [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Fair value gains on financial assets reclassified from available-for-sale financial assets reserve to fair value other comprehensive income reserve			843
Increase (decrease) due to application of IFRS 15 [member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Contract assets			162
Gross amounts due from customers for contract work-in-progress			(162)
Retained earnings			(113)
Contract liabilities - current			$ 113

XML

Material Partly-Owned Subsidiaries - Subsidiaries with Material Non-controlling Interests (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CTW Consolidated [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations	Thailand
Percentage of equity interest held by non-controlling interests	49.07%	49.07%
Shanghai Yayang Electric Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations	The People's Republic of China
Percentage of equity interest held by non-controlling interests	31.25%	31.25%

XML

Financial Risk Management Objectives - Sensitivity of Profit Before Tax and Equity to a Reasonably Possible Change of Each Foreign Currency Exchange Rates (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
5% increase in rate [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of foreign currency exchange rates	5.00%	5.00%
Change in profit before tax due to change of foreign currency exchange rates	$ 723	$ (210)
5% increase in rate [Member] | Thai Baht (THB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	(147)
5% increase in rate [Member] | Singapore dollars (SGD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	8	4
5% increase in rate [Member] | Taiwan dollar (TWD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	3	1
5% increase in rate [Member] | Renminbi (RMB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	1	(1)
5% increase in rate [Member] | Hong Kong, dollar (HKD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	$ 48	127
5% increase in rate [Member] | Australian dollar (AUD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		2
5% increase in rate [Member] | Japanese yen (JPY) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		(7)
5% increase in rate [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		$ (11)
5% decrease in rate [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of foreign currency exchange rates	(5.00%)	(5.00%)
Change in profit before tax due to change of foreign currency exchange rates	$ (723)	$ 210
5% decrease in rate [Member] | Thai Baht (THB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	147
5% decrease in rate [Member] | Singapore dollars (SGD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	(8)	(4)
5% decrease in rate [Member] | Taiwan dollar (TWD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	(3)	(1)
5% decrease in rate [Member] | Renminbi (RMB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	(1)	1
5% decrease in rate [Member] | Hong Kong, dollar (HKD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates	$ (48)	(127)
5% decrease in rate [Member] | Australian dollar (AUD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		(2)
5% decrease in rate [Member] | Japanese yen (JPY) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		7
5% decrease in rate [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Change in profit before tax due to change of foreign currency exchange rates		$ 11

XML

Cash Flow Information - Summary of Investing Activities with Partial Cash Payments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Investing Activities With Partial Cash Payments [Abstract]
Acquisition of property, plant and equipment	$ 3,406	$ 4,498
Add: Payable for PPE or CIP - Opening	213	311
Less: Payable for PPE or CIP - Ending	(355)	(213)
Less: Prepayment for PPE & CIP - Opening	(210)	(304)
Add: Prepayment for PPE & CIP - Ending	2,388	210
Less: acquisition by means of a lease		(61)
Cash paid during the year	$ 5,442	$ 4,441	$ 4,903

XML

Employee Benefit - Sensitivity Analysis of One-percentage Point Change in Assumed Rates (Parenthetical) (Detail)	Dec. 31, 2019	Dec. 31, 2018
Discount rate [Member]
Disclosure of sensitivity analysis for actuarial assumptions [Line Items]
Rate increase	1.00%	1.00%
Rate decrease	1.00%	1.00%
Rate of salary increase [Member]
Disclosure of sensitivity analysis for actuarial assumptions [Line Items]
Rate increase	1.00%	1.00%
Rate decrease	1.00%	1.00%

XML

Investment Properties (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of detailed information about investment property [Line Items]

Net Book Value of 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

Reconciliation of Net Book Value of Investment Properties

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

Amount Recognized in Profit Arising from Investment Properties

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

Investment Properties [Member]

Disclosure of detailed information about investment property [Line Items]

Fair Value of Assets

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

XML

Inventories (Tables)

12 Months Ended

Dec. 31, 2019

Classes Of Inventories [Abstract]

Summary of Inventories

	As of December 31,
	2019			2018
	US$’000			US$’000
Raw materials and supplies		19,712			25,717
Work in progress		19,118			15,598
Finished goods		50,309			46,592
		89,139			87,907
Allowance for inventories		(3,952	)		(3,982	)
Total inventories at the lower of cost and net    realizable value		85,187			83,925

XML

Employee Benefit - Summary of Components of Net Benefit Expense Recognized in Income Statement and Funded Status and Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Net Defined Benefit Liability Asset [Abstract]
Current service cost	$ 546	$ 419	$ 360
Past service cost	121
Interest cost on benefit obligation	254	202	210
Net benefit cost	921	621	570
Actuarial (gain) / loss - experience	494	396	251
Actuarial (gain) / loss - demographic assumption	18	1	184
Actuarial (gain) / loss - financial assumption	1,215	13	337
Re-measuring gain/(loss) on defined benefit plans	1,727	410	772
Defined benefit obligation at January 1	9,016	8,293	6,652
Benefits paid directly by the Company	(535)	(352)	(274)
Exchange differences	613	44	573
Defined benefit obligation at December 31	$ 11,742	$ 9,016	$ 8,293

XML

Employee Benefit (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Summary of Employee Benefits Liabilities

	As of December 31,
	2019						2018
	Current		Non-current		Total		Current		Non-current		Total
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Employee benefit liabilities
Pension-Defined benefit plans		1,436		10,306		11,742		855		8,161		9,016
Long service leave		452		128		580		427		112		539
Total		1,888		10,434		12,322		1,282		8,273		9,555

Summary of Components of Net Benefit Expense Recognized in Income Statement and Funded Status and Amounts Recognized in Consolidated Balance Sheets

21. EMPLOYEE BENEFIT (continued)

21(b)Pension – Defined benefit plans (continued)

The following tables summaries the components of net benefit expense recognized in the income statement and the funded status and amounts recognized in the consolidated balance sheet for the plan:

	For the year ended December 31,
Net benefit cost	2019		2018		2017
	US$’000		US$’000		US$’000
Current service cost		546		419		360
Past service cost		121		—		—
Interest cost on benefit obligation		254		202		210
Net benefit cost		921		621		570

	For the year ended December 31,
Other comprehensive income	2019		2018		2017
	US$’000		US$’000		US$’000
Actuarial (gain) / loss – experience		494		396		251
Actuarial (gain) / loss – demographic assumption		18		1		184
Actuarial (gain) / loss – financial assumption		1,215		13		337
Actuarial loss		1,727		410		772

	For the year ended December 31,
Change in the defined obligation	2019			2018			2017
	US$’000			US$’000			US$’000
Defined benefit obligation at January 1		9,016			8,293			6,652
Current service cost		546			419			360
Past service cost		121			—			—
Interest cost on benefit obligation		254			202			210
Benefits paid directly by the Company		(535	)		(352	)		(274	)
Actuarial loss in other comprehensive income		1,727			410			772
Exchange differences		613			44			573
Defined benefit obligation at December 31		11,742			9,016			8,293

Significant Assumptions Used in Determining Actuarial Present Value of Defined Benefit Obligations

The significant assumptions used in determining the actuarial present value of the defined benefit obligations for the year ended December 31, 2019 and 2018 are as follows:

	2019		2018
	%		%
Discount rate		1.5		2.6 ~ 2.7
Rate of salary increase	5.0~6.0		5.0 ~ 6.0
Pre-retirement mortality	* Thailand TMO17 Tables		* Thailand TMO17 Tables
* TMO represented as Thailand Mortality Ordinary Tables

Maturity Profile of Defined Benefit Obligation

The following pension benefit payments are expected payments to be made in the future years out of the defined benefit plan obligation:

	As of December 31,
	2019		2018
	US$’000		US$’000
Within the next 12 months (next annual reporting period)		1,340		855
Between 2 and 5 years		2,489		2,374
Between 6 and 10 years		4,391		4,187
Beyond 10 years		16,917		17,084
Total expected payments		25,137		24,500
Weighted average duration of defined benefit obligation	9 years		10 - 11 years

Sensitivity Analysis of One-percentage Point Change in Assumed Rates

A one-percentage point change in the assumed rates would have yielded the following effects:

	2019			2018
	US$’000			US$’000
Discount rate – 1% increase		(1,003	)		(777	)
Discount rate – 1% decrease		1,178			908
Rate of salary increase – 1% increase		1,115			869
Rate of salary increase – 1% decrease		(973	)		(762	)

XML

Basis of Preparation (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Basis Of Preparation Of Financial Statements [Abstract]

Subsidiaries of the Company

The subsidiaries of the Company are set out below:

	Percentage of equity interest
Place of incorporation and operations	2019			2018
The British Virgin Islands
APWC General Holdings Limited		100	%		100	%
PRC (APWC) Holding Ltd.		100	%		100	%
Samray Inc.		100	%		100	%
Siam (APWC) Holdings Ltd.		100	%		100	%
Moon View Ltd.		100	%		100	%
Trigent Investment Holdings Limited		100	%		100	%
Crown Century Holdings Ltd.		100	%		100	%
Singapore
Sigma Cable Company (Private) Limited (“Sigma Cable”)		98.30	%		98.30	%
Epan Industries Pte Ltd.		98.30	%		98.30	%
Singvale Pte Ltd.		100	%		100	%
The People’s Republic of China (“PRC”)
Ningbo Pacific Cable Co., Ltd. (“Ningbo Pacific”)		97.93	%		97.93	%
Shanghai Yayang Electric Co., Ltd. (“SYE”)		68.75	%		68.75	%
Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. (“PEWS”)		97.93	%		97.93	%
Hong Kong
Crown Century Holdings Limited (“CCH (HK)”)		97.93	%		97.93	%
Australia
Australia Pacific Electric Cable Pty Limited (“APEC”)		98.06	%		98.06	%
Thailand
Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai”) (i)		50.93	%		50.93	%
Siam Pacific Electric Wire & Cable Company Limited (“Siam Pacific”)		50.93	%		50.93	%
Double D Cable Company Limited (“Double D”)		50.93	%		50.93	%
Hard Lek Limited.		73.98	%		73.98	%
APWC (Thailand) Co., Ltd.		99.48	%		99.48	%
PEWC (Thailand) Co., Ltd.		99.48	%		99.48	%
CTW Beta Co., Ltd.		50.89	%		50.89	%
Siam Fiber Optics Co., Ltd. (“SFO”) (ii)		45.84	%		30.56	%
Taiwan
Asia Pacific New Energy Corporation Limited ("APNEC") (iii)		100.00	%		100.00	%
YASHIN Energy Corporation Limited ("YASHIN") (iii)		100.00	%		100.00	%
YADING Energy Corporation Limited ("YADING") (iii)		100.00	%		100.00	%

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

(i) Charoong Thai is listed on the Stock Exchange of Thailand and is engaged in the manufacturing of wire and cable products for the power and telecommunications industries in Thailand.

(ii) The directors have concluded that the Company controls SFO, even though it holds less than half of the voting rights of this subsidiary. This is because the Company is the largest shareholder with a 50.93% equity interest in Charoong Thai, which held a 90% and 60% equity interest of SFO as of December 31. 2019 and 2018, respectively.

On October 30, 2019, Charoong Thai acquired additional 30% interest in SFO for a total consideration of THB 9 million, thereby increasing the Company’s interest in SFO from 30.56% to 45.84%. The Company recorded the effect of change in shareholding of the subsidiaries, amounting to $40 under the caption of “Additional paid-in capital” in the consolidated statement of change in equity.  

(iii) On June 19, 2018, APWC’s Board of Directors approved to set up APNEC as the Company’s subsidiary with 100% held. APNEC registered its incorporation on October 26, 2018 with TWD 500 million registered capital and a paid-up capital of TWD 4 million.

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Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

24. RELATED PARTY TRANSACTIONS

The related parties are defined as affiliates of the Company; entities for which investments are accounted for by the equity method by the Company; the principal owners of the Company; its management; members of the immediate families of the principal owners of the Company and its management.

Moon View Venture Limited (“Moon View”), PEWC, Singapore Branch, PEWC Singapore Co. (Pte) Ltd., and PEWC (HK) are controlled by PEWC. Moon View is the immediate holding company of the Company. Italian-Thai Development Public Company Limited (“Italian-Thai”) is the non-controlling shareholder of one of the Company’s operating subsidiaries in Thailand. SPHC is one of the Company’s equity investees. Fujikura Limited is a non-controlling shareholder of one of the Company’s operating subsidiaries in Thailand.

24(a)Outstanding balance with related parties

The following table provided the total amount of outstanding balance at December 31, 2019 and 2018.

	Amounts due from related parties				Amounts due to related parties
	As of December 31,				As of December 31,
	2019		2018		2019		2018
	US$’000		US$’000		US$’000		US$’000
The ultimate parent company
PEWC		—		—		862		45
PEWC, Singapore Branch		21		15		—		—
PEWC Singapore Co. (Pte) Ltd.		—		—		1,027		1,005
PEWC (HK)		5,247		5,989		20		399
Associate
SPHC		196		181		1,362		1,362
Non-controlling shareholder of subsidiary
Italian-Thai and its affiliates		6,102		5,876		—		—
Fujikura Limited		—		—		—		136
Others		—		—		13		50
Total		11,566		12,061		3,284		2,997

As of December 31, 2019 and 2018, the interest rates on the balance due to PEWC Singapore Co., (Pte) Ltd. range from 3.09% to 3.79% and 2.70% to 3.40%, respectively, and the payables are repayable upon demand. All balances with related parties are unsecured.

 .

24. RELATED PARTY TRANSACTIONS (continued)

24(b)Transactions with related parties

The transactions undertaken with related parties are summarized as follows:

		For the year ended December 31,
		2019		2018		2017
		US$’000		US$’000		US$’000
The ultimate parent company
PEWC	Purchases		2,745		521		18,170
	Sales		—		14		1,457
	Fabrication income received		140		412		208
	Management fee paid		199		136		143
	Information technology service fee paid		101		115		114
PEWC, Singapore Branch	Management fee received		14		14		14
PEWC Singapore Co. (Pte) Ltd.	Interest expenses paid		22		21		15
PEWC (HK)	Purchases		—		2,479		4,180
	Sales		17,831		23,498		24,437
	Service fee paid		218		231		—
The immediate holding company
Moon View	Income from discharge of liability*		—		1,537		—
Non-controlling shareholder of subsidiary
Italian Thai and its affiliates	Sales		4,188		6,814		6,203
	Construction of factory building expenses		215		—		—
Fujikura Limited	Purchases		249		750		1,115

Moon Viewdischarged the Company’s liabilities towards Moon View due to the financial arrangement between related parties. The company wrote off the liabilities amounted to $1,537 from “due to related parties”, and recognized other income amounted to $1,537 for the year ended December 31, 2018.

24(c)Terms and condition of transactions with related parties

The sales to and purchases from related parties are based on negotiation by the entities. Outstanding balances at the year-end are unsecured and interest free. There have been no guarantees provided or received for any related party receivables or payables. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The Company purchases from PEWC copper rods as raw materials, low to high voltage power cable, and wire for distribution purposes. The purchase price from PEWC is determined by reference to the quoted copper prices on the LME. No sales commission was received from PEWC during the years ended December 31, 2019, 2018 and 2017.  

24. RELATED PARTY TRANSACTIONS (continued)

24(c)Terms and condition of transactions with related parties (continued)

Pursuant to the composite services agreement with PEWC: 

(i) PEWC will sell copper rod to the Company, upon the Company’s request, (1) at a price consisting of the average spot price of copper on the LME for the one month prior to purchase plus an agreed upon premium, (2) at prices and on terms at least as favorable as it provides copper rod to other purchasers of similar amounts of copper rod in the same markets as PEWC and (3) will give priority in the supply of copper rod to the Company over other purchasers of copper rod from PEWC.

(ii) PEWC grants to the Company the right to distribute any wire or cable product manufactured by PEWC in all markets in which the Company presently distributes or develops the capability to distribute in the future, such products on such terms as have historically been in effect or on terms at least as favorable as PEWC grants to third parties that distribute such products in such markets. However, PEWC shall not be required to grant to the Company the right to distribute products manufactured by PEWC in the future in markets where the Company does not currently have the capability to distribute unless and until PEWC has no pre-existing contractual rights which would conflict with the grant of such right to the Company.

(iii) PEWC will make available to the Company, upon the Company’s request and on terms to be mutually agreed between PEWC and the Company from time to time, access to certain of PEWC’s technology (and PEWC personnel necessary to use such technology) with respect to the design and manufacture of wire and cable products, including, without limitation, certain fiber optic technology. The Company benefits from research and development conducted by PEWC at little or no cost to the Company.

(iv) PEWC will make available to the Company, upon the Company’s request and on terms to be mutually agreed between PEWC and the Company from time to time, certain services with respect to the design and manufacture of wire and cable products, computerization, inventory control, purchasing, internal auditing, quality control, emergency back-up services, and recruitment and training of personnel; such services may include the training of the Company’s employees and managers at PEWC facilities and the secondment of PEWC employees and managers to the Company.

(v) Each of PEWC and the Company will offer the other party the right to participate in any negotiations with a third party concerning the establishment of any facility or similar venture to manufacture or distribute any wire or cable product outside of the markets where the Company currently manufactures or distributes, or intends to develop the capability to manufacture or distribute, any wire or cable product. Unless the Company and PEWC mutually agree otherwise, the Company shall have the right of first refusal to enter into any definitive agreement with such third party. If, however, such third party would not agree to the substitution of the Company for PEWC or such substitution would prevent the successful completion of the facility or venture, PEWC will arrange for the Company to participate to the extent possible.

24. RELATED PARTY TRANSACTIONS (continued)

24(d)Compensation of key management personnel of the Company

	For the years ended December, 31
	2019		2018		2017
	US$’000		US$’000		US$’000
Short-term employee benefits		3,073		3,814		3,900
Post-employment benefits		179		102		103
Termination benefits		—		47		43
Total compensation paid to key management    personnel		3,252		3,963		4,046

The amounts disclosed in the table were recognized as expenses during the reporting periods.

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Contract Assets - Aggregate Amount of the Transaction Price Allocated to the Unsatisfied Performance Obligations (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Unsatisfied long-term SDI contracts
Expected to be recognized as revenue over 3 years	$ 156,592	$ 14,922

XML

Right of Use Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of detailed information about Right-of-use assets [Line Items]
Additions to the right of use assets	$ 473
Cash outflow for lease	$ 691
Long-term operating lease duration		50 years
Bottom of range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease term of contract	1 year
Top Of Range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease term of contract	36 years

XML

Cash Flow Information

12 Months Ended

Dec. 31, 2019

Disclosure Of Cash Flow Information [Abstract]

Cash Flow Information

28. CASH FLOW INFORMATION

28(a) Investing activities with partial cash payments

	For the year end December 31,
	2019			2018
	US$’000			US$’000
Acquisition of property, plant and equipment		3,406			4,498
Add: Payable for PPE or CIP - Opening		213			311
Less: Payable for PPE or CIP - Ending		(355	)		(213	)
Less: Prepayment for PPE & CIP - Opening		(210	)		(304	)
Add: Prepayment for PPE & CIP - Ending		2,388			210
Less: acquisition by means of a lease		—			(61	)
Cash paid during the year		5,442			4,441

28(b) Reconciliation of liabilities arising from financing activities

	Interest -bearing loans and borrowings			Financial lease liabilities			Total
	US$’000			US$’000			US$’000
Balance at January 1, 2017		41,151			78			41,229
Changes in cash flows		-16,220			(46	)		(16,266	)
Foreign exchange adjustments		(117	)		(8	)		(125	)
Acquisition of PP&E by means of a lease		—			61			61
Other changes		—			5			5
Balance at December 31, 2018		24,814			90			24,904
Recognized on adoption of IFRS 16		—			2,651			2,651
Changes in cash flows		(14,462	)		(426	)		(14,888	)
Foreign exchange adjustments		1,004			29			1,033
Acquisition leases		—			476			476
Other changes		—			8			8
Balance at December 31, 2019		11,356			2,828			14,184

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Financial Assets and Financial Liabilities - Summary of Other Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income	$ 4,062	$ 2,332	$ 2,747
Other financial assets	4,062	2,332
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts	3	142
Other financial liabilities	$ 3	$ 142

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(Loss) Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

(Loss) Earnings Per Share

9.(LOSS) EARNINGS PER SHARE

(Loss) earnings per share are calculated by dividing net (loss) profit attributable to equity holders of the parent by the weighted average number of shares outstanding during the year. The Company does not have any dilutive securities. The treasury shares transaction resulted in an immediate reduction in outstanding shares used to calculate the weighted-average common shares outstanding for both basic and diluted (loss) earnings per share.

The following table sets forth the computation of basic and diluted earnings attributable to common shareholders per share:

	For the year ended December 31,
	2019			2018		2017
	US$’000			US$’000		US$’000
	(except for number of shares and earnings per share)
Numerator:
Net (loss) profit attributable to APWC from continuing operations		(1,632	)		2,928		8,720
Net (loss) profit attributable to APWC		(1,632	)		2,928		8,720
Denominator:
Weighted-average common shares    outstanding – basic and diluted		13,819,669			13,819,669		13,819,669
(Loss) earnings per share – basic and diluted
Continuing operations		(0.12	)		0.21		0.63
Total (loss) earnings per share – basic and diluted		(0.12	)		0.21		0.63

Income from continuing operations attributable to non-controlling interests are $681, $4,518, and $4,808for the years ended December 31, 2019, 2018 and 2017, respectively.

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Income Tax - Accrued Interest and Penalties on Uncertain Tax Position (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Change In Tax Positions [Abstract]
Accrued interest on uncertain tax position	$ 713	$ 867	$ 800
Accrued penalties on uncertain tax position	384	461	486
Total accrued interest and penalties on uncertain tax position	$ 1,097	$ 1,328	$ 1,286

XML

Income Tax - Summary of Deferred Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	$ (200)	$ (6)	$ (132)	$ 526
Deferred tax expenses / (benefits)	374	(55)	1,073
Outside basis differences [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	(3,829)	(3,614)
Deferred tax expenses / (benefits)	215	578	602
Revaluations of financial assets at fair value through other comprehensive income [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	(679)	(345)
Accrued interest income [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	(181)	(154)
Deferred tax expenses / (benefits)	13	12	11
Unutilized building allowance (net) [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	(36)	(133)
Deferred tax expenses / (benefits)	(98)	(95)	11
Unused tax losses [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	546	644
Deferred tax expenses / (benefits)	119	(459)	455
Allowance for doubtful accounts [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	245	290
Deferred tax expenses / (benefits)	47	(97)	(25)
Inventory impairment [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	554	657
Deferred tax expenses / (benefits)	147	(236)	(161)
Rebates and other accrued liabilities [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	472	426
Deferred tax expenses / (benefits)	(46)	(38)	(6)
Unpaid retirement benefits [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	1,553	1,353
Deferred tax expenses / (benefits)	(81)	(54)	(62)
Deferred revenue and cost of sales [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	23	16
Deferred tax expenses / (benefits)	(6)	(14)	393
Actuarial loss [Member
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	796	450
Unabsorbed depreciation [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	637	701
Deferred tax expenses / (benefits)	57	(55)	(45)
Mark-to-Market value of forward contract [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets		28
Deferred tax expenses / (benefits)	28	(28)
Others [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Net deferred tax assets	(301)	(325)
Deferred tax expenses / (benefits)	$ (21)	$ 431	$ (100)

XML

Segment Information

12 Months Ended

Dec. 31, 2019

Disclosure Of Operating Segments [Abstract]

Segment Information

5. SEGMENT INFORMATION

5(a)Basis of segments

Each segment engages in business activities which generate revenues and incur expenses. Based upon the information provided to the Company’s chief operating decision maker (“CODM”) to make decisions on resource allocation and operating performance evaluation, the Company has determined that it has three reportable segments.  

The Company organizes its business segments along reporting lines and has three operating segments, consisting of the North Asia region, the Thailand region and the Rest of the World (“ROW”) region. The Company considers the economic characteristics similarity in determining the reportable segments.

As the three operating segments exceed the quantitative thresholds, they are also reportable segments. The accounting policies for segment information, including transactions entered between segments are generally the same as those described in the summary of significant accounting policies.

During 2018, CODM changed the measures of profitability by operating segments, replacing gross profit and gross profit margin with operating profit (loss) and operating profit (loss) margin. This change reflects a better explanation of the elements of performance. This change has been applied to comparative figures for 2017 presented in this document.

Inter-segment revenues are eliminated upon consolidation and reflected in the “adjustments and eliminations” column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

5(b)Information about reportable segments

Year ended December 31, 2019	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		76,575			172,379			89,206			338,160			—			338,160
Inter-segment		—			6			—			6			(6	)		—
Segment operating profit/(loss)		1,237			3,042			(1,659	)		2,620			(2,884	)		(264	)
Depreciation and amortization		(811	)		(2,842	)		(1,613	)		(5,266	)		(58	)		(5,324	)
Depreciation from right of use assets		(44	)		—			(441	)		(485	)		(22	)		(507	)
Impairment of property, plant and equipment		(549	)		3			—			(546	)		—			(546	)
Interest income		57			403			45			505			1			506
Interest expense		(239	)		(481	)		(102	)		(822	)		(23	)		(845	)
Income tax (expense)/benefit		(561	)		(1,235	)		105			(1,691	)		(366	)		(2,057	)
Other disclosures
Capital expenditure		552			4,590			242			5,384			78			5,462

5. SEGMENT INFORMATION (continued)

5(b)Information about reportable segments (continued)

Year ended December 31, 2018	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		103,647			213,424			108,869			425,940			—			425,940
Inter-segment		4,076			392			6,308			10,776			(10,776	)		—
Segment operating profit/(loss)		5,234			9,539			(2,306	)		12,467			(3,143	)		9,324
Depreciation and amortization		(829	)		(2,836	)		(1,333	)		(4,998	)		(20	)		(5,018	)
Impairment of property, plant and equipment		—			(11	)		—			(11	)		—			(11	)
Interest income		117			611			42			770			(288	)		482
Interest expense		(397	)		(748	)		(34	)		(1,179	)		(21	)		(1,200	)
Income tax (expense)/benefit		(1,212	)		(2,152	)		384			(2,980	)		(906	)		(3,886	)
Other disclosures
Capital expenditure		1,188			2,859			451			4,498			10			4,508

Year ended December 31, 2017	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		101,533			206,485			117,197			425,215		—				425,215
Inter-segment		890			1,044		—				1,934			(1,934	)		—
Segment operating profit/(loss)		3,256			11,053			1,205			15,514			(3,074	)		12,440
Depreciation and amortization		(979	)		(2,760	)		(1,314	)		(5,053	)		(3	)		(5,056	)
Impairment of property, plant and equipment		(213	)		(10	)	—				(223	)	—				(223	)
Interest income		51			845			61			957			(81	)		876
Interest expense		(428	)		(553	)		(52	)		(1,033	)		67			(966	)
Income tax (expense)/benefit		(1,395	)		(2,727	)		(342	)		(4,464	)		(676	)		(5,140	)
Other disclosures
Capital expenditure		991			3,332			590			4,913			—			4,913

Adjustments and eliminations

Corporate expenses, gain on disposal of investment, and share of gain (loss) of associates are not allocated to individual segments as the underlying instruments are managed on a group basis.

5. SEGMENT INFORMATION (continued)

5(c)Reconciliation of segment operating profit (loss)

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Segment operating profit		2,620			12,467			15,514
Corporate expenses adjustments and eliminations		(2,884	)		(3,143	)		(3,074	)
		(264	)		9,324			12,440
Other operating income		385			805			5,084
Other operating expenses		(770	)		(1,445	)		(909	)
Operating profit		(649	)		8,684			16,615
Finance costs		(1,012	)		(1,378	)		(1,221	)
Finance income		506			482			876
Share of loss of associates		(3	)		(3	)		(3	)
Loss on liquidation of subsidiary		—			—			(261	)
Exchange gain		1,550			1,741			2,784
Other income		717			1,817			214
Other expense		(3	)		(11	)		(336	)
Profit before tax		1,106			11,332			18,668

5(d)Segment assets and liabilities

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Total assets		49,379		165,579		76,618		291,576		7,335		298,911
Total liabilities		14,212		26,706		21,834		62,752		7,724		70,476
As of December 31, 2018
Total assets		54,250		173,398		70,574		298,222		7,576		305,798
Total liabilities		20,169		42,887		14,015		77,071		6,911		83,982

Reconciliation of assets:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating assets		291,576			298,222
Corporate and other assets		2,466			2,869
Investment in associates		935			864
Deferred tax assets		3,939			3,919
Inter-segment elimination		(5	)		(76	)
Total assets		298,911			305,798

5. SEGMENT INFORMATION (continued)

5(d)Segment assets and liabilities (continued)

Reconciliation of liabilities:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating liabilities		62,752			77,071
Corporate liabilities		3,591			3,019
Deferred tax liabilities		4,139			3,925
Inter-segment elimination		(6	)		(33	)
Total liabilities		70,476			83,982

5(d-1)The application of IFRS 16 increased the segment assets and liabilities as below:

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Assets		—		—		2,506		2,506		192		2,698
Liabilities		—		—		2,552		2,552		205		2,757

5(e)Disaggregated revenues and geographical information

The Company’s disaggregated revenues transitioned from reporting of Manufactured Products, Distributed Products and SDI segments in 2017 to reporting of Power, Enamel and Others product lines in 2018. The updated reporting of results best reflects the relevant information and granularity desired by all stakeholders to conduct decisions and operations. Reported results of Power, Enamel and Others product lines provide improved understanding and insight to the performance of the Company and its products and services.

Revenue from external customers is summarized as the following major categories:

Year ended December 31, 2019	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		49,493		78,686		128,179		—		128,179
Enamel		76,575		102,997		—		179,572		—		179,572
Others*		—		19,889		10,520		30,409		—		30,409
		76,575		172,379		89,206		338,160		—		338,160
Timing of revenue recognition
At a point in time		76,575		172,031		82,584		331,190		—		331,190
Over time		—		348		6,622		6,970		—		6,970
		76,575		172,379		89,206		338,160		—		338,160
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

5. SEGMENT INFORMATION (continued)

5(e)Disaggregated revenues and geographical information (continued)

Year ended December 31, 2018	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		64,771		92,130		156,901		—		156,901
Enamel		103,647		114,247		—		217,894		—		217,894
Others*		—		34,406		16,739		51,145		—		51,145
		103,647		213,424		108,869		425,940		—		425,940
Timing of revenue recognition
At a point in time		103,647		213,212		92,133		408,992		—		408,992
Over time		—		212		16,736		16,948		—		16,948
		103,647		213,424		108,869		425,940		—		425,940
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

The Company recognizes no revenues from performance obligations satisfied in previous years in 2019 and 2018.

	Year ended December 31,
	2017
	US$’000
Manufactured Products		361,853
Distributed Products		41,985
SDI		21,377
Total Revenue		425,215

Revenue from external customers is attributed to individual countries based on the customer’s country of domicile and is summarized as follows:

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Revenues from external customers
Thailand		116,160		154,207		158,565
Singapore		46,218		63,781		76,453
Australia		34,447		37,594		34,901
China		81,813		111,917		108,561
India		36,121		45,008		31,291
Southeast Asia		23,390		13,339		15,394
Northeast Asia		11		94		50
		338,160		425,940		425,215

Countries in the Southeast Asia region include Cambodia, Vietnam, Indonesia, Brunei, Laos, Malaysia and Myanmar; countries in the Northeast Asia region include Japan and South Korea.

5. SEGMENT INFORMATION (continued)

5(e)Disaggregated revenues and geographical information (continued)

Major customer information

Revenue from one customer in the Thailand region amounted to $23,118 represented 6.84% of 2019 consolidated revenue. Revenue from another customer in the ROW region amounted to $37,197 in 2018 and $36,518 in 2017 represented 8.73% and 8.59% of 2018 and 2017 consolidated revenue, respectively.

Non-current assets information

The total non-current assets other than financial instruments and deferred tax assets broken down by the country of domicile are summarized as follow:

	As of December 31,
	2019		2018
	US$’000		US$’000
Non-current assets by country:
Thailand		32,723		28,407
Singapore		7,869		5,868
China		5,661		6,592
Australia		2,661		2,684
Other		290		54
Total non-current assets		49,204		43,605

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Financial Risk Management Objectives - Summary of Capital Management (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Objectives Policies And Processes For Managing Capital [Abstract]
Interest-bearing loans and borrowings	$ 11,356	$ 24,814
Trade and other payables	16,879	21,127
Less: cash and cash equivalents	(53,673)	(60,778)	$ (46,093)	$ (48,231)
Net debt	(25,438)	(14,837)
Total equity	228,435	221,816	$ 222,826	$ 197,175
Capital and net debt	$ 202,997	$ 206,979
Gearing ratio	0.00%	0.00%

XML

Segment Information - Summary of Application of IFRS 16 Increased the Segment Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Operating Segments [Line Items]
Assets	$ 298,911	$ 305,798
Liabilities	70,476	83,982
Increase due to application of IFRS 16 [member]
Disclosure Of Operating Segments [Line Items]
Assets	2,698
Liabilities	2,757
Operating segments [Member]
Disclosure Of Operating Segments [Line Items]
Assets	291,576	298,222
Liabilities	62,752	77,071
Operating segments [Member] | Increase due to application of IFRS 16 [member]
Disclosure Of Operating Segments [Line Items]
Assets	2,506
Liabilities	2,552
Operating segments [Member] | North Asia (Segment) [Member]
Disclosure Of Operating Segments [Line Items]
Assets	49,379	54,250
Liabilities	14,212	20,169
Operating segments [Member] | Thailand (Segment) [Member]
Disclosure Of Operating Segments [Line Items]
Assets	165,579	173,398
Liabilities	26,706	42,887
Operating segments [Member] | ROW (Segment) [Member]
Disclosure Of Operating Segments [Line Items]
Assets	76,618	70,574
Liabilities	21,834	14,015
Operating segments [Member] | ROW (Segment) [Member] | Increase due to application of IFRS 16 [member]
Disclosure Of Operating Segments [Line Items]
Assets	2,506
Liabilities	2,552
Corporate expense adjustments and eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Assets	7,335	7,576
Liabilities	7,724	$ 6,911
Corporate expense adjustments and eliminations [Member] | Increase due to application of IFRS 16 [member]
Disclosure Of Operating Segments [Line Items]
Assets	192
Liabilities	$ 205

XML

Commitments and Contingencies - Right of Use Assets Under Non-cancellable Operating Lease Commitments (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Disclosure of finance lease and operating lease by lessee [Line Items]
Right of use assets under non-cancellable operating leases	$ 3,263
Within one year [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Right of use assets under non-cancellable operating leases	616
After one year but not more than five years [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Right of use assets under non-cancellable operating leases	1,279
More than five years [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Right of use assets under non-cancellable operating leases	$ 1,368

XML

New Standards And Interpretations - Schedule of Significant Effects of Adopting IFRS 16 (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Prepayments		$ 1,081	$ 1,140
Lease assets		0	66
Right-of-use assets	$ 3,735	3,801	0
Prepaid land lease payments		0	978
Total affected assets		4,882	2,184
Liabilities
Financial lease liabilities - current		406	44
Financial lease liabilities - non-current		2,382	46
Total affected liabilities		2,788	$ 90
Effect of Adoption of New Standards [Member]
Assets
Prepayments		(59)
Lease assets		(66)
Right-of-use assets		3,801
Prepaid land lease payments		(978)
Total affected assets		2,698
Liabilities
Financial lease liabilities - current		362
Financial lease liabilities - non-current		2,336
Total affected liabilities		$ 2,698

XML

New Standards And Interpretations - Schedule of Significant Effects of Adopting New Standards (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Contract assets	$ 4,686	$ 1,460	$ 162
Gross amounts due from customers for contract work-in-progress				$ 162
Trade receivables	74,077	79,617	112,419	112,403
Financial assets – available for sale				2,747
Financial assets at fair value through other comprehensive income	4,062	2,332	2,747
Deferred tax assets	3,939	3,919	3,026	3,022
Total affected assets			118,354	118,334
Liabilities
Contract liabilities - current	216	756	113
Total affected liabilities			113
Equity
Retained earnings	$ 53,384	$ 55,016	53,257	53,350
Total affected equity			53,257	53,350
Total affected liabilities and equity			53,370	$ 53,350
Effect of Application of New Standards [Member]
Assets
Contract assets			162
Gross amounts due from customers for contract work-in-progress			(162)
Trade receivables			16
Financial assets – available for sale			(2,747)
Financial assets at fair value through other comprehensive income			2,747
Deferred tax assets			4
Total affected assets			20
Liabilities
Contract liabilities - current			113
Total affected liabilities			113
Equity
Retained earnings			(93)
Total affected equity			(93)
Total affected liabilities and equity			$ 20

XML

Segment Information - Summary of Non-Current Assets Other Than Financial Instruments and Deferred Tax Assets Broken Down by Country of Domicile (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	$ 49,204	$ 43,605
Thailand (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	32,723	28,407
Singapore (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	7,869	5,868
The People's Republic of China (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	5,661	6,592
Australia (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	2,661	2,684
Other
Disclosure Of Geographical Areas [Line Items]
Total non-current assets	$ 290	$ 54

XML

Financial Risk Management Objectives - Summary of Balance of Financial Assets and Liabilities Denominated in a Currency Different from the Company's Reporting Currency (Detail) € in Thousands, ฿ in Thousands, ¥ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2019 THB (฿)	Dec. 31, 2019 TWD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2019 SGD ($)	Dec. 31, 2019 HKD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 THB (฿)	Dec. 31, 2018 TWD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2018 SGD ($)	Dec. 31, 2018 HKD ($)	Dec. 31, 2018 AUD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 JPY (¥)	Aug. 13, 2014 USD ($)
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different	$ 151,492,000						$ 168,097,000
Financial liabilities denominated in a currency different	34,350,000						49,170,000									$ 0
Foreign currency risk [Member] | United States dollar (USD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different	19,263,000						21,529,000
Financial liabilities denominated in a currency different	$ 4,802,000						$ 25,733,000
Foreign currency risk [Member] | Thai Baht (THB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different | ฿		฿ 346						฿ 349
Financial liabilities denominated in a currency different | ฿		฿ 87,779						฿ 30
Foreign currency risk [Member] | Singapore dollars (SGD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different					$ 233						$ 170
Financial liabilities denominated in a currency different					$ 20						$ 62
Foreign currency risk [Member] | Taiwan dollar (TWD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different			$ 9,711						$ 5,227
Financial liabilities denominated in a currency different			$ 7,648						$ 4,872
Foreign currency risk [Member] | Renminbi (RMB) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different | ¥				¥ 119						¥ 19
Financial liabilities denominated in a currency different | ¥										¥ 179
Foreign currency risk [Member] | Hong Kong, dollar (HKD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different						$ 7,526						$ 20,005
Financial liabilities denominated in a currency different						$ 83						$ 43
Foreign currency risk [Member] | Australian dollar (AUD) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial assets denominated in a currency different													$ 66
Foreign currency risk [Member] | Euro (EUR) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial liabilities denominated in a currency different | €														€ 199
Foreign currency risk [Member] | Japanese yen (JPY) [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Financial liabilities denominated in a currency different | ¥															¥ 14,768

XML

Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Other Current Liabilities [Abstract]

Schedule of other current liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract liabilities		216		756
Dividend payable		674		565
Deferred government grant		—		318
Onerous contracts provisions		238		42
Other current liabilities		1,228		1,591
Total		2,356		3,272

Schedule of onerous contracts provisions

22(a)Onerous contracts provisions

	2019			2018
	US$’000			US$’000
At January 1		42			555
Recognized		218			37
Reversed		(25	)		(544	)
Exchange differences		3			(6	)
At December 31		238			42

Schedule of contract liabilities

22(b)Contract Liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Current contract liabilities
Advance from customers		93		668
Custodial service		63		71
Transportation service		60		17
Total current contract liabilities		216		756

Schedule of revenue recognized in relation to contract liabilities

Revenue recognized in relation to contract liabilities

	For the year ended December 31,
	2019		2018
	US$’000		US$’000
Revenue recognized that was included in the contract liabilities balance at the beginning of the year
Advance from customers		668		—
Custodial service		59		85
Transportation service		17		28
		744		113

XML

Other Current Liability - Summary of Other Current Liability (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Miscellaneous Current Liabilities [Abstract]
Liabilities arising from contracts with customers	$ 216	$ 756
Dividend payable	674	565
Deferred government grant		318
Onerous contracts provisions	238	42	$ 555
Other current liabilities	1,228	1,591
Total	$ 2,356	$ 3,272

XML

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Intangible Assets [Abstract]

Summary of Intangible Assets

	2019			2018
	US$’000			US$’000
Cost
At January 1		586			526
Addition		20			67
Exchange difference		15			(7	)
At December 31		621			586
Accumulated amortization
At January 1		(429	)		(388	)
Amortization		(50	)		(44	)
Exchange difference		(14	)		3
At December 31		(493	)		(429	)
Net book value
At December 31		128			157

XML

Contract Assets (Tables)

12 Months Ended

Dec. 31, 2019

Contract Assets [Abstract]

Schedule of Assets Related to Contracts with Customers

Assets related to contracts with customers

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract assets - current		4,686		1,460

Aggregate Amount of the Transaction Price Allocated to the Unsatisfied Performance Obligations

The following table shows the aggregate amount of the transaction price allocated to the unsatisfied performance obligations.

	As of December 31,
	2019		2018
	US$’000		US$’000
Unsatisfied long-term SDI contracts
Expected to be recognized as revenue over 3 years		156,592		14,922

XML

Employee Benefit - Significant Assumptions Used in Determining Actuarial Present Value of Defined Benefit Obligations (Detail)		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Actuarial assumption of discount rates		1.50%
Pre-retirement mortality	[1]	* Thailand TMO17 Tables	* Thailand TMO17 Tables
Bottom of range [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Actuarial assumption of discount rates			2.60%
Actuarial assumption of expected rates of salary increases		5.00%	5.00%
Top of range [Member]
Disclosure Of Net Defined Benefit Liability Asset [Line Items]
Actuarial assumption of discount rates			2.70%
Actuarial assumption of expected rates of salary increases		6.00%	6.00%

[1] TMO represented as Thailand Mortality Ordinary Tables

XML

Equity

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Equity

23. EQUITY

23(a)Common shares

	As of December 31,
	2019		2018
Authorized shares	Number of shares		Number of shares
Common shares of US$0.01 each		50,000,000		50,000,000

Common shares issued and fully paid	Number of shares		US$’000
At December 31, 2019		13,830,769		138
At December 31, 2018		13,830,769		138
At January 1, 2018		13,830,769		138

23(b)Dividends

On November 11, 2016, the Company announced that the Board of Directors approved the implementation of a dividend policy as part of the Company's ongoing commitment to increasing shareholder value and return on investment. Pursuant to the dividend policy, subject to review and approval by the Board of Directors, the Company may pay cash dividends of at least 25% of its net post-tax audited consolidated profits attributable to shareholders. As APWC is a holding company, its ability to pay dividends is dependent upon distributions that it receives from its operating subsidiaries and affiliates, which are subject to a number of factors including operating results, capital requirements, expansion plans, debt covenants, business prospects, consideration for non-recurring items and other factors that are deemed relevant from time to time by the respective boards of our subsidiaries and affiliates. The dividend policy will be reviewed on an ongoing basis and updated at the discretion of the Board of Directors as business circumstances and available capital and capital requirements may change.

The Company recognized dividends distributed to owners amounting to $nil ($nil per share), $1,106 ($0.08 per share) and $1,382 ($0.1 per share) for the years ended December 31, 2019, 2018 and 2017, respectively.

23. EQUITY (continued)

23(c)Other comprehensive income – net of tax

The disaggregation of changes of other comprehensive income by each type of reserve in equity is shown below:

	For the year ended December 31, 2019
	Remeasurement of defined benefit plans			Financial assets at FVOCI reserve		Foreign currency translation reserve		Total
	US$’000			US$’000		US$’000		US$’000
Exchange difference on translation of foreign operations		—			—		10,677		10,677
Re-measuring losses on defined benefit plans		(1,382	)		—		—		(1,382	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			1,336		—		1,336
		(1,382	)		1,336		10,677		10,631

	For the year ended December 31, 2018
	Remeasurement of defined benefit plans			Available-for-sale reserve			Financial assets at FVOCI reserve			Foreign currency translation reserve			Total
	US$’000			US$’000			US$’000			US$’000			US$’000
Reclassification of application of IFRS 9		—			(1,717	)		1,717			—			—
Exchange difference on translation of foreign operations		—			—			—			(4,388	)		(4,388	)
Re-measuring losses on defined benefit plans		(328	)		—			—			—			(328	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			—			(335	)		—			(335	)
		(328	)		(1,717	)		1,382			(4,388	)		(5,051	)

	For the year ended December 31, 2017
	Remeasurement of defined benefit plans			Available-for-sale reserve			Foreign currency translation reserve		Total
	US$’000			US$’000			US$’000		US$’000
Exchange difference on translation of foreign operations		—			—			15,882		15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary		—			—			248		248
Re-measuring losses on defined benefit plans		(618	)		—			—		(618	)
Net loss on available-for-sale financial assets		—			(64	)		—		(64	)
		(618	)		(64	)		16,130		15,448

XML

Contract Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Financial Instruments [Line Items]
Advances or retentions received from construction contracts	$ 0	$ 0
SDI [Member]
Disclosure Of Financial Instruments [Line Items]
Decrease through impairment, contract assets	$ 0

XML

Right of Use Assets - Summary of Right of Use Assets Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Disclosure of detailed information about Right-of-use assets [Line Items]
Right of use assets	$ 3,735	$ 3,801	$ 0
Land [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Right of use assets	3,029
Buildings [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Right of use assets	546
Motor vehicle and other asset [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Right of use assets	58
Office equipment [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Right of use assets	$ 102

XML

Financial Risk Management Objectives

12 Months Ended

Dec. 31, 2019

Disclosure Of Financial Instruments [Abstract]

Financial Risk Management Objectives

27. FINANCIAL RISK MANAGEMENT OBJECTIVES

Financial risks are those derived from financial instruments the Company is exposed to during or at the closing of each fiscal year. The objective of the Company’s financial risk management is to minimize its risk exposure against various financial risks, which include market risk, credit risk and liquidity risk. The Company uses derivative instruments to cover certain risks when it considers them necessary. It is the Company’s policy that no trading in derivatives for speculative purposes shall be undertaken.

The Company manages its exposure to key financial risks, as described in the succeeding paragraphs.

27(a)Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, equity price risk, foreign currency risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings, financial instruments at fair value through profit or loss, and financial instruments at fair value through other comprehensive income.

The sensitivity analysis in the following sections relate to the position as of December 31, 2019 and 2018.

The analysis excludes the impact of movements in market variables on the carrying value of other post-retirement obligations provisions and on the non-financial assets and liabilities of foreign operations.

(i) Interest rate risk

The Company’s exposure to interest rate risk arises from borrowing at floating interest rates. Changes in interest rate will affect future cash flows but not the fair value. Less than 25% of the Company’s financial liabilities bear floating interest rate, and the rest of its financial liabilities bear fixed interest rate which are close to the market rate or are non-interest bearing.

At the reporting dates, a change of 30 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2019 and 2018 to increase/decrease by $46 and $64, respectively.

(ii) Equity price risk

The Company’s exposure to equity price risk arises from unquoted instrument held by the Company and classified in the balance sheet as non-current financial assets at fair value through other comprehensive income.

The fair value and the sensitivity analysis of the held equity instrument are disclosed in Note 11(d).

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(a)Market risk (continued)

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates arise from sales, purchases and borrowings by operating units in currencies other than the unit’s functional currency. The Company’s principal operations are located in Thailand, the PRC, Singapore and Australia and a substantial portion of its revenues are denominated in Thai Baht, RMB, Australian dollars or Singapore dollars, whereas a substantial portion of the Company’s cost of sales are denominated in US dollars, its reporting currency. Any devaluation of the functional currencies of the Company’s principal subsidiaries against the US dollar would likely have an adverse impact on the operations of the Company. The Company currently does not maintain a foreign currency hedging policy. However, management monitors the foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise.

The balance of financial assets and liabilities denominated in a currency different from the Company’s each functional currency are summarized below.

	Financial Assets				Financial Liabilities
	As of December 31,				As of December 31
	2019		2018		2019		2018
United States dollar (USD)		19,263		21,529		4,802		25,733
Thai Baht (THB)		346		349		87,779		30
Singapore dollar (SGD)		233		170		20		62
Taiwan dollar (TWD)		9,711		5,227		7,648		4,872
Renminbi (RMB)		119		19		—		179
Hong Kong dollar (HKD)		7,526		20,005		83		43
Australian dollar (AUD)		—		66		—		—
Euro (EUR)		—		—		—		199
Japanese yen (JPY)		—		—		—		14,768

Foreign currency sensitivity

The following table demonstrates the sensitivity of the Company’s profit before tax and equity to a reasonably possible change of each foreign currency exchange rates against all other non-functional currencies, with all other variables held constant.

	Change rate	USD			THB			SGD			TWD			RMB			HKD			AUD			JPY			EUR
	5%		723			(147	)		8			3			1			48			—			—			—
2019	-5%		(723	)		147			(8	)		(3	)		(1	)		(48	)		—			—			—
	5%		(210	)		—			4			1			(1	)		127			2			(7	)		(11	)
2018	-5%		210			—			(4	)		(1	)		1			(127	)		(2	)		7			11

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

(iv) Commodity price risk

The Company is affected by the volatility of certain commodities. Copper is the principal raw material used by the Company. The Company purchases copper at price closely related to the prevailing international spot market on the London Metal Exchange for copper. The price of copper is influenced heavily by global supply and demand as well as speculative trading. Consequently, a change in the price of copper will have a direct effect on the Company’s cost of sales.  The Company does not use derivative instruments to hedge the price risk associated with the purchase of this commodity.  However, we cover some of these risks through long-term purchase contracts.

Commodity price sensitivity

The following table shows the potential effect of price changes in copper.

	Change in year-end price			Effect on profit before tax			Effect on equity
	US$’000			US$’000			US$’000
2019		+16	%		(3,473	)	N/A
Copper		-16	%		3,473		N/A
2018		+23	%		6,461		N/A
Copper		-23	%		(6,461	)	N/A

On average, copper composes around 82% and 85%of the product cost in 2019 and 2018, respectively. The above sensitivity analysis is based on the most significant fluctuation rate of the month in 2019 as compared to the same month in 2018 and the most significant fluctuation rate of the month in 2018 as compared to the same month in 2017 and one month manufacturing lead time to estimate its impact on profit before tax in 2019 and 2018, respectively.

27(b)Credit risk

Credit risk arises from cash and cash equivalents, bank deposits, foreign currency forward contracts, trade receivables, contract assets, other receivables excluding bank deposits, and amounts due from related parties. The Company’s exposure to credit risk arises from default of counterparty, with maximum exposure equal to the carrying amount of these financial instruments.

(i) Risk management

The Company maintains cash and cash equivalents, as well as bank deposits with various financial institutions located in Singapore, Thailand, Australia, Hong Kong and the People’s Republic of China. The Company’s policy is designed to limit its exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy.

Foreign currency forward contracts are only used for economic hedging purposes and not as speculative investments. The counterparties on these forward contracts are banks with international operations and good credit quality.

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(b)Credit risk (continued)

Concentrations of credit risk with respect to trade receivables and contract assets are limited due to the large number of entities comprising the Company’s customer base. The Company analysis the credit risk for each of the new clients before credit limits are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The Company carefully assesses the financial strength of its customers and generally does not require any collateral. Compliances with credit limits are monitored, and exceptions beyond a certain threshold are discussed regularly. Customers’ credit terms are extend over time only when they establish good payment patterns with the Company. Other receivables excluding bank deposits mainly contain doubtful receivables from customers. The Company obtained collateral in respect of those material receivables, and performed the valuation of the collateral.

The Company enters into transactions with related parties in the ordinary course of its business. Refer to Note 24(c) for the Company’s general credit risk management practices.

(ii) Definition of default

The Company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

► when there is a breach of financial covenants by the debtor; or

► information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Company, in full (without taking into account any collateral held by the Company).       

(iii) Measurement and recognition of expected credit losses

The Company recognizes a loss allowance for expected credit losses on trade receivables and contract assets by using a provision matrix. Refer to Note 12(c) for the approach used to measure expected credit losses of trade receivables, Note 12(b) for the loss allowance recognized,and Note 12(a) for changes in the loss allowance on trade receivables. While contract assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial.

The Company applies the general approach for all other financial assets that are subject to the expected credit loss model. The expected credit losses of the respective financial instruments for the years ended December 31, 2019 and 2018 were immaterial. While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was also immaterial.

(iv) Write off policy

Financial instruments are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than generally 90 days past due.

(v) Concentrations of credit risk

As of December 31, 2019 and 2018, trade receivables from one customer represented 9.31% and 8.2% of total trade receivables of the Company, respectively. The credit concentration risk of other trade receivables is insignificant.

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(c)Liquidity risk

Liquidity risk arises from the financial liabilities of the Company and its subsidiaries and their subsequent ability to meet obligations to repay their financial liabilities as and when they fall due. Management manages the Company’s liquidity risk by closely monitoring cash flow from the operations. The Company has about $54 million in cash and cash equivalents, $208 million in unutilized amounts of bank loans, and the total financial liabilities is $35 million at the reporting date, which for financial assets and liabilities results in a net asset position. Liquidity risk is considered low as of December 31, 2019.  Refer to Note 29 for development subsequent to year end.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payment obligations.

	< 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
	US$’000		US$’000		US$’000		US$’000		US$’000
As of  December 31, 2019
Financial liabilities
Interest-bearing loans and borrowings		11,484		—		—		—		11,484
Trade and other payables		16,879		—		—		—		16,879
Due to related parties		3,284		—		—		—		3,284
Financial liabilities at fair value through profit or loss		3		—		—		—		3
Lease liability		656		910		444		1,182		3,192
		32,306		910		444		1,182		34,842
As of December 31, 2018
Financial liabilities
Interest-bearing loans and borrowings		25,151		—		—		—		25,151
Trade and other payables		21,127		—		—		—		21,127
Due to related parties		2,997		—		—		—		2,997
Financial liabilities at fair value through profit or loss		142		—		—		—		142
Finance lease liability		47		36		11		—		94
		49,464		36		11		—		49,511

27(d)Capital management

The primary objectives of the Company’s capital management are to safeguard the Company’s ability to continue as a going concern and maintain healthy capital ratios in order to support its business, maximize shareholders’ value and to maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the risks characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares or conduct stock repurchase programs. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2019 and 2018.

27. FINANCIAL RISK MANAGEMENT OBJECTIVES (continued)

27(d)Capital management (continued)

In line with industry practices, the Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

	As of December 31,
	2019			2018
	US$’000			US$’000
Interest bearing loans and borrowings		11,356			24,814
Trade and other payables		16,879			21,127
Less: cash and cash equivalents		(53,673	)		(60,778	)
Net debt		(25,438	)		(14,837	)
Total Equity		228,435			221,816
Capital and net debt		202,997			206,979
Gearing ratio	0.0%			0.0%

The Company has no direct business operations other than its ownership of the capital stock of its subsidiaries and equity investees holdings. As a holding company, the Company’s ability to pay dividends, as well as to meet its other obligations, depends upon the amount of distributions, if any, received from the Company’s operating subsidiaries and other holdings and investments.  The Company’s operating subsidiaries and other holdings and investments, from time to time, may be subject to restrictions on their ability to make distributions to the Company, including as a result of restrictive covenants contained in loan agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other hard currency and other regulatory restrictions.  For example, PRC legal restrictions permit payments of dividends by our business entities in PRC only out of their retained earnings, if any, determined in accordance with relevant PRC accounting standards and regulations.  Under PRC law, such entities are also required to set aside a portion of their net income each year to fund certain reserve funds.  These reserves are not distributable as cash dividends.  The foregoing restrictions may also affect the Company’s ability to fund operations of one subsidiary with dividends and other payments received from another subsidiary.

27(e)Collateral

The credit lines of the Company were collateralized by:

(i) Mortgage of the Company’s land, buildings, machinery and equipment, investment properties and land use rights with a total carrying amount of $15,099 at December 31, 2019 (2018: $9,084);

(ii) Pledge of other receivables of $4,847 at December 31, 2019 (2018: $7,525) ;

(iii) Corporate guarantee issued by the Company and a subsidiary of the Company.

(iv) A trading facility was secured by all the assets and uncalled capital with total carrying amount of $27,454 of a subsidiary as of December 31, 2019 (2018: $ 27,731).

The weighted average interest rates on bank loans and overdrafts as of December 31, 2019 and 2018 were 3.72% and 3.68% per annum, respectively.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Disclosure Of Summary Of Significant Accounting Policies [Abstract]

Current versus non-current classification

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except as mentioned otherwise (see also Note 4.1).

3.1 Current versus non-current classification

The Company presents assets and liabilities in the balance sheets based on current and non-current classification. An asset is current when it is:

Expected to be realized or intended to be sold or consumed in the normal operating cycle;

► Held primarily for the purpose of trading;

► Expected to be realized within twelve months after the reporting period; or

► Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in a normal operating cycle;

► It is held primarily for the purpose of trading;

► It is due to be settled within twelve months after the reporting period; or

► There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating profit

3.2 Operating profit

The operating profit is the profit earned from core business operations, and it does not include any profit earned from investment and the effects of interest and taxes.

Fair value measurement

3.3 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. In addition, fair values of financial instruments measured at amortized cost are disclosed in Note 11(d).

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

► In the principal market for the asset or liability, or

► In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.3 Fair value measurement (continued)

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

► Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

► Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly

► Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Cash and cash equivalents

3.4 Cash and cash equivalents

Cash and cash equivalents in the consolidated balance sheet comprise of cash at banks and highly liquid investments with purchased maturities of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the consolidated statements of cash flows, cash and cash equivalents are net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

The balance of bank overdraft was nil as of December 31, 2019 and 2018.

Inventories

3.5 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost of manufactured goods is determined on the weighted average basis and, in the case of work in progress and finished goods, comprises direct materials, direct labor and an appropriate proportion of overheads based on the normal operating capacity. Cost of distributed goods is determined on the weighted average basis. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and the estimated cost necessary to make the sale.

Property, Plant and Equipment

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciates them accordingly.

Spare parts and servicing equipment are usually carried as inventory and recognized in profit or loss as consumed. However, major spare parts and stand-by equipment qualify as property, plant and equipment when an entity expects to use them for more than one year.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. A provision shall be recognized when:

(a) an entity has a present obligation (legal or constructive) as a result of a past event;

(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

If these conditions are not met, no provision shall be recognized.

Depreciation

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

►      Buildings	20-30 years
►      Building improvement	3-20 years
►      Machinery and equipment	4-20 years
►      Motor vehicles	3-10 years
►      Office equipment	2-20 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end, and adjusted prospectively, if appropriate.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment (continued)

Impairment

If circumstances arise which indicate assets might be impaired, a review should be undertaken of their cash generating abilities through either use or sales. This review will produce an amount, which should be compared with the asset’s carrying value, and if the carrying value is higher, the difference must be written off as an impairment adjustment in the income statement. Further detailed methodology used for an impairment test is given in Note 3.11 - Impairment of non-financial assets.

Leases

3.7 Leases

From January 1, 2019

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, the Company assesses whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company, as a lessee, applies a single accounting model to recognize assets and liabilities for all leases, except for the lease term is 12 months or less or the underlying asset has a low value. The Company recognizes lease liabilities to make lease payment and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

►Land use right	2 to 37 years
►Buildings	2 to  3 years
►Motor vehicles	1 to  3 years
►Office equipment	5        years

If the ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies Note 3.11 impairment of non-financial assets.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

(ii) Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payment to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payment) or a change in the assessment of an option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition exemption to its leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases for which the Company is a lessor are classified each of its leases as either an operating lease or finance lease.

Finance lease

Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset, the lease is classified as a finance lease. Amount due from lessees under finance lease are recognized as receivables at the amount of the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases.

Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the consolidated income statements due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

Property (land and/or a building, or part of a building) subject to an operating lease shall be recognized as an investment property.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

Prior to January 1, 2019

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Finance leases

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the Company, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the income statement.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating leases

Operating lease payments are recognized as an operating expense in the income statement on a straight-line basis over the lease term.

Prepaid land lease payments under operating leases are initially stated at cost and subsequently recognized on the straight-line basis over the lease terms. The prepaid land lease payments are presented as current or non-current assets on the face of balance sheet, depending on the amount to be recognized less or more than twelve months after the reporting period.

Borrowing Costs

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.8 Borrowing costs (continued)

Borrowing costs include:

► interest expense calculated using the effective interest method;

► finance charges in respect of finance leases; and

► exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Exchange differences are generally regarded as borrowing costs only to the extent that the combined borrowing costs, including exchange differences, approximate the amount of borrowing costs on functional currency equivalent borrowings.

For specific borrowings, the borrowing costs eligible for capitalization are the actual borrowing costs incurred related to funds that are borrowed specifically to obtain a qualifying asset less any investment income earned on the temporary investment of those borrowings.

For general borrowings, the capitalization rate applied to borrowing costs on the consolidation level will be based on cash management strategy, which might be the weighted average of the group borrowings outstanding during the period.

Investment Properties

3.9 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are carried at historical cost less provisions for depreciation and impairment. Additional costs incurred subsequent to the acquisition of an asset increase the carrying amount of the asset or recognized as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Company and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred. While land is not depreciated, all other investment property is depreciated based on the respective assets estimated useful lives ranging from 20 to 30 years using the straight-line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the property is derecognized.

International Accounting Standards (“IAS”) 40 requires disclosures about the fair value of any investment property recorded at cost. See Note 17 – Investment Properties.

Financial Instruments

3.10 Financial instruments

From January 1, 2018

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets

Classification and measurement

Except for certain trade receivables, the company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs directly attributable to the acquisition or issue of the financial asset. Financial instruments are subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL). The classification is based on two criteria: the objective of the company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).

The classification and measurement of financial assets is as follows:

► Debt instruments at amortized cost

Financial assets meeting both conditions: (i) held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and (ii)  the contractual terms of the financial assets give arise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost.

The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest rate (“EIR”) method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, and any impairment charges for such instruments are recognized in profit or loss.  

The Company’s financial assets at amortized costs include cash and cash equivalents, trade receivables, other receivable, and the receivable from related party.

► Debt instruments at FVOCI with gains or losses recycled to profit or loss on derecognition

Financial assets that are held within a business model whose objective is to hold financial assets in order to both collecting contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income, foreign exchange gains and losses, and any impairment charges on such instruments are recognized in profit or loss. All other fair value gains and losses are recognized in OCI. On disposal of these debt instruments, any related balance with FVOCI reserve is reclassified to profit or loss.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

► Equity instruments designated at FVOCI with no recycling of gains or losses on derecognition

These instruments are undertakings in which the Company does not have significant influence or control, generally evidenced by ownership of less than 20% of the voting rights. The Company designates these investments on an instrument by instrument basis as equity securities at FVOCI because they represent investments held for long term strategic purposes.

Investments in equity instruments at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in OCI. These investments are not subject to impairment testing and upon disposal, the cumulative gain or loss in OCI is not reclassified to profit or loss on disposal. Dividends from such investments continue to be recognized in profit or loss when the Company’s right to receive payments is established.

The Company elected to classify irrevocably its non-listed equity investments under this category.

► Financial assets at fair value through profit or loss (FVPL)

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is recognized in profit or loss in the period in which it arises.

Even if an instrument meets the two requirements to be measured at amortized cost or FVOCI, the Company may, at initial recognition, irrevocably designate a financial asset as measured at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency.

Changes in the fair value of financial assets at FVPL are recognized in the statement of profit or loss as applicable.

Reclassification

When, and only, the Company changes its business model for managing financial assets it shall reclassify all affected financial assets according to the classification and measurement criteria discussed earlier. If the Company reclassifies financial assets, it shall apply the reclassification prospectively from the reclassification date and shall not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s consolidated balance sheet) when and only when:

(a)  the rights to receive cash flows from the asset have expired, or

(b) the Company has transferred its rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to one or more recipients under a “pass-through” arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates the extent to which, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset and has not transferred the control of the assets, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay (“the guarantee amount”).

(ii) Financial liabilities

Classification and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.  

All financial liabilities are recognized initially at fair value and, net of directly attributable transaction costs in the case of loans and borrowings.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-being loans and borrowings. These financial liabilities represent liabilities for goods and services provided to the Company and refund liabilities arising from contracts with customers. Trade payable are non-interest bearing and are normally settled on 60-day terms. The refund liabilities are rebate and discounts for the sale of goods to external customers in the ordinary course of the Company’s activities. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using the EIR method.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Financial liabilities (continued)

Classification and measurement (continued)

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iii) Foreign currency forward contracts

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently re-measured at fair value, and the gains or losses are recognized in profit or loss.

(iv) Impairment of financial instruments

The following financial instruments are included within the scope of the impairment requirements in IFRS 9 Financial Instruments:

(a)   Financial assets measured at amortized cost;

(b)   Financial assets mandatorily measured at FVOCI;

(c)   Loan commitments when there is a present obligation to extend credit (except where these are

        measured at FVPL);

(d)   Financial guarantee contracts to which IFRS 9 is applied (except those measured at FVPL);

(e)   Lease receivables within the scope of IFRS 16 Leases from January 1, 2019 and IAS 17 prior to

January 1, 2019.

(f)   Contract assets within the scope of IFRS 15 Revenue from Contracts with Customers.

From January 1, 2018, the Company assesses on a forward looking basis the expected credit losses (ECLs) associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With the exception of purchased or originated credit impaired financial assets, ECLs are required to be measured through a loss allowance at an amount equal to:

(a)  credit risk has not increased significantly since initial recognition – recognize 12-month ECLs , and recognize interest on a gross basis; or

(b) credit risk has increased significantly since initial recognition – recognize lifetime ECL, and recognize interest on a gross basis.  

A loss allowance for full lifetime ECLs is required for contract assets or trade receivables that do not constitute a financing transaction in accordance with IFRS 15. The Company may select its accounting policy for contract assets and trade receivables, containing a significant financing component and lease receivables to measure the loss allowance at an amount equal to lifetime ECLs.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

For trade receivables and contract assets, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables, see Note 12(c) for further details.  

The Company recognizes in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

(v) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if when the following conditions are met: (i) there is a currently enforceable legal right to offset the recognized amounts; and (ii) there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(vi) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Recent arm’s length market transactions

► Current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Prior to January 1, 2018

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value presented as net loss on financial instruments (negative net changes in fair value) or net gain on financial instruments (positive net changes in fair value) in the income statement.

Derivatives not designated as hedging instruments

A derivative is a financial instrument or other contract within the scope of IAS 39 with all of the following characteristics:

(a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’);

(b) it requires no initial net investment, or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and

(c) it is settled at a future date.

Fair value is the measurement basis for all financial instruments meeting the definition of a derivative. Change in fair value of non-hedged item is recorded in profit and loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (“EIR”) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the income statement. The losses arising from impairment are recognized in the other operating expenses for receivables.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held to maturity when the Company has the positive intention and ability to hold them to maturity. After initial measurement, held to maturity investments are measured at amortized cost using the EIR, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance income or finance cost in the income statement. The losses arising from impairment are recognized in the income statement as finance costs.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets

Available-for-sale financial assets include equity investments and debt securities. Equity investments classified as available for sale are those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions.

After initial measurement, available-for-sale financial assets are subsequently measured at fair value with unrealized gains or losses recognized as other comprehensive income in the available-for-sale reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the available-for-sale reserve to the income statement in finance costs. Interest earned whilst holding available-for-sale financial investments is reported as finance income using the EIR method.

For a financial asset reclassified out of the available-for-sale category, the fair value carrying amount at the date of reclassification becomes its new amortized cost and any previous gain or loss on the asset that has been recognized in equity is amortized to profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortized cost and the maturity amount is also amortized over the remaining life of the asset using the EIR. If the asset is subsequently determined to be impaired, then the amount recorded in equity is recognized in the income statement.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when:

► The rights to receive cash flows from the asset have expired, or

► The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Impairment of financial assets

The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if there is objective evidence of impairment as a result of one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

Financial assets carried at amortized cost

For financial assets carried at amortized cost, the Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current EIR.

The carrying amount of the asset is reduced through the use of an allowance account, and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as finance income in the income statement. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to finance costs in the income statement.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Trade receivables impairment

For trade receivables, impairment assessment is performed firstly on an individual basis:

A financial asset is impaired (and impairment losses are determined) if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after initial recognition (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset that can be reliably estimated.

Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the holder about the following loss events:

► significant financial difficulty of the issuer or obligor;

► breach of contract, such as a default or delinquency in interest or principal payments;

► the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that would not otherwise be considered;

► it becoming probable that the borrower will enter bankruptcy or other financial reorganization;

► the disappearance of an active market for that asset because of financial difficulties (but not simply because the asset is no longer publicly traded ; or

► observable data indicating that there is a measurable decrease in the estimated future cash flows from a Company of financial assets since initial recognition, although the decrease cannot yet be identified with the individual assets in the Company, including:

• adverse changes in the payment status of borrowers in the Company (e.g. an increased number of delayed payments); or

• national or local economic conditions that correlate with defaults on the assets in the Company.

For trade receivables that have been individually assessed, but for which there is no objective evidence of impairment, the review for impairment is performed on a group basis, based on similar credit risk characteristics.

Available-for-sale financial assets

For available-for-sale financial assets, the Company assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.

In the case of equity investments classified as available-for-sale, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. ‘Significant’ is evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. The Company’s policy considers a significant decline to be one in which the fair value is below the weighted average original cost by more than 20%. A prolonged decline is considered to be one in which the fair value is below the weighted average original cost for a period of more than 12 months. When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement – is removed from other comprehensive income and recognized in the income statement. Impairment losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognized directly in other comprehensive income.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets(continued)

In the case of debt instruments classified as available for sale, impairment is assessed based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement.

Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the income statement, the impairment loss is reversed through the income statement.

(iii) Financial liabilities

Financial liabilities initial recognition and measurement

Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-bearing loans and borrowings.

Subsequent measurement

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different  terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iv) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(v) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Using recent arm’s length market transactions

► Reference to the current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

Impairment of non-financial assets

3.11 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use. A CGU is the smallest group of assets that generates cash inflows that are largely independent of the cash flows from other assets or groups of assets. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognized in the income statement in expense categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated income statement.

Intangible assets

3.12 Intangible assets

Computer software

The costs of acquiring software is capitalized separately as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software. Acquired software (licenses) is stated at cost less accumulated amortization and impairment losses.

Amortization of software applications is charged to operating expenses and/or cost on a straight-line basis over 2 to 10 years from the date they are available for use.

The residual values and useful lives are reviewed at each balance sheet date and adjusted, if appropriate.

Taxes

3.13 Taxes

Current income tax

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities.  The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

► When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

► In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

► When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.13 Taxes

Deferred tax (continued)

► In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Uncertain tax position

An entity’s tax position might be uncertain; for example, where the tax treatment of an item of expense or structured transaction may be challenged by the tax authorities.

The Company considers each uncertain tax positions individually, by first considering whether each position taken in the tax return is probable of being sustained on examination by the taxing authority, and recognizing a liability for each item that is not probable of being sustained. The liability then is measured using a single best estimate of the most likely outcome. The uncertain tax positions are presented in the current tax liabilities.

The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense.

Revenue recognition

3.14 Revenue recognition

The Company generates revenue primarily from the sales of wires and cables and supply, delivery and installation services to its customers (see Note 5(e)).

Revenue from contract with customers is recognized when (or as) control of the goods or services (i.e. assets) are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has concluded that it is the principal in its revenue arrangements because it controls the goods or services before transferring them to the customer. The Company has certain contracts with customers to perform fabrication services for its customers, converting customer-owned raw materials to wire and cable products. The Company is responsible for fulfilling the promise to provide the specified services.

Revenue is recognized as control is passed, either over time or at a point in time.

The Company recognizes revenue over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the entity performs;

(b) the Company’s performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced; or

(c) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.

If the Company does not satisfy its performance obligation over time, it satisfies it at a point in time. Revenue will therefore be recognized when control is passed at a certain point in time. Factors that may indicate the point in time at which control passes include, but are not limited to:

(a) the entity has a present right to payment for the asset;

(b) the customer has legal title to the asset;

(c) the entity has transferred physical possession of the asset;

(d) the customer has the significant risks and rewards of ownership of the asset; or

(e) the customer has accepted the asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price that is allocated to that performance obligation.

While deferred payment terms may be agreed in certain circumstances, the deferral never exceeds twelve months.  The Company applies the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Sales of wires and cables

Revenue from sales of wires and cables is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the wires and cables.

Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at a contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

The amount of consideration can vary because of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. The promised consideration can also vary if a Company’s entitlement to the consideration is contingent on the occurrence or non-occurrence of a future event.

The Company estimates an amount of variable consideration by using either of (a) the expected value, or (b) the most likely amount, depending on which the Company expects to better predict the amount of consideration to which it will be entitled.

At the end of each reporting period, the Company updates the estimated transaction price (including updating its assessment of whether an estimate of variable consideration is constrained) to represent faithfully the circumstances present at the end of the reporting period and the changes in circumstances during the reporting period. The Company allocates any subsequent changes in the transaction price to the performance obligations on the same basis as at contract inception.

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design. Revenue from SDI is recognized when the Company satisfies performance obligations which occurs when the control of either goods or services are transferred to the customer. Transfer of control to a customer can occur either over a period of time or at a single point in time, and the transfer of controls  depends on the scope of service work orders.

Service work order that involves supply of cables, installation and/or labor (e.g. maintenance or repairing service) are not distinct and are identified to be one performance obligation satisfied over time since the elements of the service work order are highly interrelated, customized and modified for the customer. The Company selects an input method (cost-to-cost) to measure the progress toward satisfaction of the performance obligation. The Company’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation may revise when there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Custodial and transportation services under bill and hold arrangement

A bill and hold arrangement is a contract under which an entity bills a customer for a product but the entity retains physical possession of the product until it is transferred to the customer at a point in time in the future. The Company identifies multiple performance obligations for its bill and hold arrangements, including sales of wires and cables, custodial service and transportation service.

Sales of wires and cables are recognized revenue when the products are placed into warehouse and the customer has accepted the products because the control of the products has transferred to the customer.

Custodial service revenue and transportation service are recognized over time. The transaction price allocated to these services is recognized as a contract liability at the time of the initial sales transaction and released on actual basis over the period of services.

Onerous operating contracts

Onerous contract is a type of contract in which the costs of meeting the obligations under the contract are higher than the economic benefits received under the contract.

The Company has contracts to supply products that may become onerous due to changing circumstances. The Company establishes the unavoidable costs of meeting the obligations under the contract as an accrued liability for the contractual responsibilities. For example, when rising copper price renders a contract onerous, the liability is calculated based on the difference between the copper price on the London Metal Exchange (the “LME”) at reporting date and the prices determined in the contracts, if the difference exceeds the profit of the original contract.  The unavoidable costs exceeding the profit of the contract is recognized in cost of sales or other operating expense based on the nature of the unavoidable costs.

Prior to January 1, 2018

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The specific recognition criteria described below must also be met before revenue is recognized.

Sales of manufactured goods and distributed products

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design.  Revenue of SDI is accounted for using the percentage-of-completion method, based on the customer certification of the length of cables laid with respect to the estimated total length of cables under the contract in accordance with IAS 11.

When the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is made. Provision for losses is recognized in the period in which they become evident. On a quarterly basis, the Company reviews the budget and forecast whether a loss provision should be recorded.

Bill and hold transaction

The Company recognizes revenue from sales of goods under bill and hold arrangements when they have yet to be delivered, since delivery is delayed at the buyer’s request and the buyer takes title and accepts the billing and that the usual terms of payment apply.

Moreover, the inventory is on hand, clearly identified and ready for delivery to the buyer at the time the revenue is recognized and it is highly probable that delivery will be made.

Sales of goods under bill and hold arrangements are the invoiced value, excluding value added tax after deducting discounts and allowances.

Rebates

Based on IAS 18, the amount of revenue arising on a transaction is usually determined by agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity. Consequently, where an entity provides sales incentives to a customer when entering into a contract these are usually treated as rebates and will be included in the measurement of (i.e. deducted from) revenue when the goods are delivered or services provided.

Provisions for rebates based on attainment of sales targets are estimated and accrued as each of the underlying sales transactions is recognized.

Provision for rebate should only be recorded when there is a contractually formal signed rebate contract exists.

At interim dates, if no reliable estimate can be made, the revenue recognized on the transaction should not exceed the consideration that would be received if the maximum rebates were taken. Therefore, the Company assumes that the customers will achieve the necessary sales volume target to earn the maximum rebate. The provisions are subject to continuous review and adjustment as appropriate based on the most recent information available to management.

As of the balance sheet date, the Company recalculates and adjusts the provision for rebate based on the actual sales.

Foreign currencies

3.15 Foreign currencies

The Company’s consolidated financial statements are presented in USD, which is also the parent company’s functional currency. For each entity the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Differences arising on settlement or translation of monetary items are recognized in profit or loss with the exception of monetary items that are designated as part of the hedge of the Company’s net investment of a foreign operation. These are recognized in other comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively).

Translation to the presentation currency

The results and financial position of an entity whose functional currency are translated into a different presentation currency using the following procedures:

a. assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

b. income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) are translated at exchange rates at the dates of the transactions;

c. all resulting exchange differences shall be recognized in other comprehensive income; and

d. for equity items, the historical rate is used; therefore, these equity items are not retranslated.

PEWSC functional currency change

Due to the increased sales to the domestic market in recent years, USD no longer faithfully represented the underlying transactions events and conditions of PEWSC in 2018. Management concluded that RMB should be the functional currency of PEWSC beginning on the financial year January 1, 2018.

Employee benefits

3.16 Employee benefits

The Company has both defined contribution and defined benefit obligation. The liabilities of the Company arising from defined benefit obligations, and the related current service cost, are determined using the projected unit credit method.

For defined benefit plans, the cost charged to the income statement consists of current service cost, net interest cost and past service cost. Remeasurements comprising of actuarial gains and losses are recognized in the period in which they occur, directly in other comprehensive income. They are included in other comprehensive income in the statement of changes in equity and in balance sheet. Remeasurements are not reclassified to profit or loss in subsequent periods. Contributions to defined contribution plans are charged to the income statement as incurred.  All past service costs are recognized at the earlier of when the amendment occurs.

Compensated absence

The cost of accumulating paid absences is recognized when employees render the service that increases their entitlement to future paid absences.

The cost of accumulating paid absences is measured as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period.

Earnings per share

3.17 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the period, adjusted for own shares held.

In calculating diluted EPS, the number of shares should be that used in calculating the basic EPS, plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential common shares into common shares. The earnings figure should be that used for basic EPS adjusted to reflect any post-tax effects from changes that would arise if the potential shares outstanding in the period were actually issued.

Treasury shares

3.18 Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity.  No gain or loss is recognized in the profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in additional paid-in capital. Voting rights related to treasury shares are nullified and no dividends are allocated to them.

Investments in an associate

3.19 Investments in an associate

The Company’s investment in its associates are accounted for using the equity method. An associate is an entity in which the Company has significant influence. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment.

The income statement reflects the Company’s share of the results of operations of the associate. Any change in other comprehensive income of those investees is presented as part of the Company’s other comprehensive income.  When there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate.

The Company’s share of profit or loss of an associate is shown on the face of the income statement and represents profits or loss after tax and non-controlling interests in the subsidiaries of the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company.

After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in associates is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in share of losses of associates in the income statement.

Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

Government grant

3.20 Government grant

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as other income on a systematic basis over the periods that the related costs, which it is intended to compensate, are expensed.  When the grant relates to an asset, it is recognized as a liability in equal amounts over the expected useful life of the related asset.

The government grants received during 2019 and 2018 were immaterial. See Note 22 for further details.

Non-current assets held for sale

3.21 Non-current assets held for sale

The Company classifies non-current assets and disposal groups as held for sale/distribution to owners if their carrying amounts will be recovered principally through a sale/distribution rather than through continuing use. Non-current assets and disposal groups are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.  

Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortized.

When equity method investments are classified as held for sale, the investor discontinues the use of the equity method from the date that the investment (or the portion of it) is classified as held for sale; instead, the associate or joint venture is then measured at the lower of its carrying amount and fair value less cost to sell.

Finance and other income

3.22 Finance and other income

Interest income

Interest revenue shall be calculated by using the effective interest method. This shall be calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the entity shall apply the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Rental income

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in revenue due to its operating nature.

Dividends

Revenue is recognized when the company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

Significant accounting judgements, estimates and assumptions

3.23 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Revenue recognition - identifying single performance obligation in SDI projects  

SDI projects comprise various activities such as supply cables, installation, jointing services and testing services. Those tasks are activities to fulfil the cable management service (supply and installation) and not a separate promise within the context of the contract. The Company determines the supply cables and installation services are not capable of being distinct and identifies to be one performance obligation because of (i) the customer could not benefit from the installed cables on its own, neither using it or to sell it for an amount greater than scrap value; (ii) the Company is providing a significant integration service, and it would not be able to fulfil its promise to transfer the cables separately from its promise to the subsequent installation; (iii) the cables and installation are highly interrelated, and the customer could not benefit from the cables being delivered without subsequent installation.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Impairment of non-financial assets

At each reporting date or whenever events indicate that the asset’s value has declined or significant changes in the market with an adverse effect have taken place, the Company assesses whether there is an indication that an asset in the scope of IAS 36 may be impaired. If any indication exists, the Company completes impairment testing for the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or CGU is the higher of fair value less costs to sell and its value in use. The fair value less costs of disposal calculation is based on available data from binding sale arrangements, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposal of the assets. The value in use is measured at the net present value of the future cash flows the entity expects to derive from the asset or CGU. Cash flow projection involves subjective judgments and estimates which include the estimated useful lives of property, plant and equipment, capacity that generates future cash flows, capacity of physical output, potential fluctuations of economic cycle in the industry and the Company’s operating situation. See Note 15 – Property, Plant and Equipment.

Fair value of financial instruments

Where the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including income approach (for example, the discounted cash flows model) or the market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 11 for more details.

Measurement of ECL allowance for trade receivables

The Company applies the IFRS 9 simplified approach to measure lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of the sales over a period of 36 month before December 31, 2019 and the historical credit loss experience within this period. The historical loss rates are adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of the customers to settle the receivables. The Company has identified the default rate of the countries where it sells the goods and services as the most relevant factor and adjusts the historical loss rates based on the expected changes accordingly.

Refer to Note 12 and Note 27 for more information regarding the impairment of trade receivables and the related credit risks.

Net realizable value of inventory

Net realized value is the estimated selling price in the ordinary course of business less estimated costs to completion and the estimated costs necessary to make the sale. Management makes reference to actual sales prices after reporting date when making their estimate of net realizable value.

Refer to Note 13 for more information regarding the net realizable value of inventory.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the taxing authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

As of December 31, 2019, the Company has $20,580 (2018: $16,762) of tax losses carried forward. These losses related to subsidiaries that have a history of losses, do not expire and may not be used to offset taxable income elsewhere in the Company except for $546 (2018: $644) that will be realized. The subsidiaries do not have any tax planning opportunities available that could support the recognition of these losses as deferred tax assets. On this basis, the Company has determined that it cannot recognize deferred tax assets on the tax losses carried forward.

If the Company was able to recognize all unrecognized deferred tax assets, profit and equity would have increased by $5,068 (2018: $3,876; 2017: $3,947). Further details on taxes are disclosed in Note 8.

Post-employment benefits under defined benefit plans

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rate of 1 to 13 times of their final monthly salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees at rates of 1 to 26 times of their final monthly salary.

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexity of the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the inactive corporate bond trading in Thailand, taken into account the yields on Thai Government Bonds and extrapolated maturity corresponding to the expected duration of the defined benefit obligation.

The mortality rate is based on most recent mortality investigation on policyholders of life insurance companies in Thailand. Future salary increases and pension increases are based on expected future inflation rates derived from external economic data, together with historical experience of Charoong Thai.

Further details about the assumptions used, including a sensitivity analysis, are given in Note 21.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Revenue recognition of SDI projects

Changes in percentage of completion would result in changes in contract revenue and costs recognized in the statement of comprehensive income during the year. Significant estimation by management is also required in assessing the recoverability of the contracts based on estimated total contract revenue and contract costs.  In making the estimation, management’s evaluation is based on the actual level of work performed and past experience.

The carrying amount of the Company’s gross amounts due from customers for contract work-in-progress is disclosed in Note 14.

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Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2019

Cash And Cash Equivalents [Abstract]

Cash and Cash Equivalents

10. CASH AND CASH EQUIVALENTS

	As of December 31,
	2019		2018
	US$’000		US$’000
Cash on hand and cash at banks		53,673		60,778

Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition. Other short-term deposits are presented as other receivables if they are pledged, or if they have a maturity over three months from the date of acquisition.

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(Loss) Earnings Per Share - Computation of Basic and Diluted Earnings Attributable to Common Shareholders Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net (loss) profit attributable to APWC from continuing operations	$ (1,632)	$ 2,928	$ 8,720
Net (loss) profit attributable to APWC	$ (1,632)	$ 2,928	$ 8,720
Denominator:
Weighted-average common shares outstanding - basic and diluted	13,819,669	13,819,669	13,819,669
(Loss) earnings per share – basic and diluted
Continuing operations	$ (0.12)	$ 0.21	$ 0.63
Total (loss) earnings per share – basic and diluted	$ (0.12)	$ 0.21	$ 0.63

XML

Income Tax - Reconciliation of Deferred Tax Assets, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation Of Changes In Deferred Tax Liability Asset [Abstract]
Opening balance	$ (6)	$ (132)	$ 526
Tax benefit/(expenses) during the period recognized in profit or loss	(374)	55	(1,073)
Tax benefit/(expenses) during the period recognized in other comprehensive income	11	166	170
Exchange difference on translation foreign operations	169	(95)	245
Closing balance	$ (200)	$ (6)	$ (132)

XML

Material Partly-Owned Subsidiaries

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Material Partly-Owned Subsidiaries

6. MATERIAL PARTLY-OWNED SUBSIDIARIES

6(a)Material subsidiaries

The Company has subsidiaries with material non-controlling interests (“NCI”). Information regarding the subsidiaries is as follows:

Proportion of equity interest held by NCI:

	Country of incorporation	As of December 31,
Name	and operation	2019	2018
Charoong Thai and its subsidiaries (“CTW Consolidated”)	Thailand	49.07%	49.07%
SYE	China	31.25%	31.25%

From APWC group perspective, SYE is considered an entity with material non-controlling interests and should be separated from Charoong Thai group.

6(b)Summarized financial information about the subsidiaries

The summarized financial information of the subsidiaries is provided below. This information is based on amounts before inter-company eliminations:

Summarized income statements	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		172,385			213,424			207,529
Profit before tax		4,352			11,736			12,985
Income tax expense		(1,235	)		(2,150	)		(2,727	)
Profit for the year		3,117			9,586			10,258
Other comprehensive income		9,194			3,965			10,182
Total comprehensive income		12,311			13,551			20,440
Profit attributable to non-controlling interests		1,378			4,509			4,896
Dividends paid to non-controlling interests		2,763			2,181			1,943
Summarized income statements	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		20,743			33,790			33,533
Loss before tax		(2,272	)		(837	)		(161,011	)
Income tax expense		—			—			—
Loss for the year		(2,272	)		(837	)		(161,011	)
Other comprehensive income/(loss)		(46	)		(255	)		345
Total comprehensive loss		(2,318	)		(1,092	)		(160,666	)
Loss attributable to non-controlling interests		(710	)		(262	)		(15	)
Dividends paid to non-controlling interests		—			—			—

6. MATERIAL PARTLY-OWNED SUBSIDIARIES (continued)

Summarized balance sheets	CTW consolidated						SYE
	As of December 31,						As of December 31,
	2019			2018			2019			2018
	US$’000			US$’000			US$’000			US$’000
Current assets		127,539			141,761			9,038			11,293
Non-current assets		49,009			42,691			1,385			1,881
Current liabilities		(15,350	)		(33,715	)		(8,239	)		(8,671	)
Non-current liabilities		(11,358	)		(8,161	)		—			—
Total equity		149,840			142,576			2,184			4,503
Equity attributable to:
Equity holders of the parent		76,216			73,621			1,502			3,096
Non-controlling interests		73,624			68,955			682			1,407

Summarized cash flow information	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		10,776			38,784			(24,018	)
Investing		2,319			(9,137	)		6,589
Financing		(20,260	)		(12,585	)		12,836
Effect of changes in exchange rate on cash		2,376			(102	)		1,678
Net (decrease) increase in cash and cash equivalents		(4,789	)		16,960			(2,915	)
Summarized cash flow information	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		5,135			3,648			833
Investing		(165	)		(277	)		(252	)
Financing		(1,847	)		(4,005	)		(563	)
Effect of changes in exchange rate on cash		(28	)		(34	)		65
Net increase (decrease) in cash and cash equivalents		3,095			(668	)		83

XML

Financial Assets and Financial Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Financial Instruments [Line Items]
Dividends received	$ 109,000	$ 105,000	$ 100,000
Maximum borrowing capacity	287,017,000	$ 275,334,000
Unused portion of the credit lines	$ 208,000,000
Liquidity discount	30.00%	30.00%
Line Of Credit 1 [Member]
Disclosure Of Financial Instruments [Line Items]
Unused portion of the credit lines	$ 207,928,000	$ 182,361,000
Letters of Credit [Member]
Disclosure Of Financial Instruments [Line Items]
Unused portion of the credit lines	113,255,000	92,256,000
Open letters of credit [Member]
Disclosure Of Financial Instruments [Line Items]
Unused portion of the credit lines	15,209,000	22,426,000
Foreign currency forward contracts [Member]
Disclosure Of Financial Instruments [Line Items]
Outstanding forward contracts, notional amount	$ (900,000)	$ (9,400,000)

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 53,673	$ 60,778
Trade receivables	74,077	79,617
Other receivables	6,868	12,422
Contract assets	4,686	1,460
Due from related parties	11,566	12,061
Inventories	85,187	83,925
Prepayments	1,926	1,140
Other current assets	1,521	2,745
Total current assets	239,504	254,148
Non-current assets
Financial assets at fair value through other comprehensive income	4,062	2,332
Property, plant and equipment	41,747	41,418
Right-of-use assets	3,735	0
Prepaid land lease payments		978
Investment properties	730	720
Intangible assets	128	157
Investments in associates	935	864
Deferred tax assets	3,939	3,919
Other non-current assets	4,131	1,262
Total non-current assets	59,407	51,650
Total assets	298,911	305,798
Current liabilities
Interest-bearing loans and borrowings	11,356	24,814
Trade and other payables	16,879	21,127
Due to related parties	3,284	2,997
Financial liabilities at fair value through profit or loss	3	142
Accruals	14,437	14,197
Current tax liabilities	2,872	3,863
Employee benefit liabilities	1,888	1,282
Lease liabilities	574	44
Other current liabilities	2,356	3,272
Total current liabilities	53,649	71,738
Non-current liabilities
Employee benefit liabilities	10,434	8,273
Lease liabilities	2,254	46
Deferred tax liabilities	4,139	3,925
Total non-current liabilities	16,827	12,244
Total liabilities	70,476	83,982
Equity
Issued capital	138	138
Additional paid-in capital	110,416	110,376
Treasury shares	(38)	(38)
Retained earnings	53,384	55,016
Other components of equity	(10,046)	(15,464)
Equity attributable to equity holders of the parent	153,854	150,028
Non-controlling interests	74,581	71,788
Total equity	228,435	221,816
Total liabilities and equity	$ 298,911	$ 305,798

XML

Other Current Liabilities

12 Months Ended

Dec. 31, 2019

Other Current Liabilities [Abstract]

Other Current Liabilities

22. OTHER CURRENT LIABILITIES

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract liabilities		216		756
Dividend payable		674		565
Deferred government grant		—		318
Onerous contracts provisions		238		42
Other current liabilities		1,228		1,591
Total		2,356		3,272

The Company was subject to two expropriations by the PRC government in 2018. The government grant related to the completed appropriation, amounted to $106, is recognized as other income for the year ended December 31, 2018. The government grant for the expropriation in progress, amounted to $318, is recognized as other current liabilities as of December 31, 2018, and as other income for the year ended December 31, 2019.

Other current liabilities include undue value added tax, unpaid withholding tax, and other miscellaneous liabilities.

22(a)Onerous contracts provisions

	2019			2018
	US$’000			US$’000
At January 1		42			555
Recognized		218			37
Reversed		(25	)		(544	)
Exchange differences		3			(6	)
At December 31		238			42

22(b)Contract Liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Current contract liabilities
Advance from customers		93		668
Custodial service		63		71
Transportation service		60		17
Total current contract liabilities		216		756

The Company applied IFRS 15 from January 1, 2018 and recognized contract liabilities when considerations from customers had been received or due before the Company satisfied the performance obligations.

22. OTHER CURRENT LIABILITIES (continued)

22(b)Contract Liabilities (continued)

Revenue recognized in relation to contract liabilities

	For the year ended December 31,
	2019		2018
	US$’000		US$’000
Revenue recognized that was included in the contract liabilities balance at the beginning of the year
Advance from customers		668		—
Custodial service		59		85
Transportation service		17		28
		744		113

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2019 shares
Document Informations [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	APWC
Entity Registrant Name	ASIA PACIFIC WIRE & CABLE CORP LTD
Entity Central Index Key	0001026980
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Title of 12(b) Security	Common Shares, par value 0.01 per share
Security Exchange Name	NASDAQ
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	13,819,669
Entity Incorporation, State or Country Code	D0
Entity Address, Address Line One	15/Fl. B, No. 77, Sec. 2
Entity Address, Address Line Two	Dunhua South Road
Entity Address, City or Town	Taipei
Entity Address, Postal Zip Code	106
Entity Address, Country	TW
Entity File Number	1-14542
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Business Contact [Member]
Document Informations [Line Items]
Entity Address, Address Line One	15/Fl. B, No. 77, Sec. 2
Entity Address, Address Line Two	Dunhua South Road
Entity Address, City or Town	Taipei
Entity Address, Postal Zip Code	106
Entity Address, Country	TW
Contact Personnel Name	Ivan Hsia
City Area Code	886
Local Phone Number	2-27122558
Contact Personnel Email Address	ivan.hsia@apwcc.com

XML

Intangible Assets

12 Months Ended

Dec. 31, 2019

Disclosure Of Intangible Assets [Abstract]

Intangible Assets

18. INTANGIBLE ASSETS

Computer software

	2019			2018
	US$’000			US$’000
Cost
At January 1		586			526
Addition		20			67
Exchange difference		15			(7	)
At December 31		621			586
Accumulated amortization
At January 1		(429	)		(388	)
Amortization		(50	)		(44	)
Exchange difference		(14	)		3
At December 31		(493	)		(429	)
Net book value
At December 31		128			157

XML

Basis of Preparation

12 Months Ended

Dec. 31, 2019

Disclosure Of Basis Of Preparation Of Financial Statements [Abstract]

Basis of Preparation

2. BASIS OF PREPARATION

2.1 The consolidated financial statements are prepared in accordance with International Financial Reporting Standard (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The financial statements have been prepared on a historical basis except where otherwise disclosed in the accounting policies. TheconsolidatedfinancialstatementsarepresentedinU.S. dollarsandallvaluesare roundedtothenearestthousand(US$’000), exceptwhenotherwiseindicated.

2.2 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, 2019 and 2018, and the results of operations of the Company and all subsidiaries for the years ended December 31, 2019, 2018 and 2017.

Subsidiaries are fully consolidated from the date of acquisition (the date on which the Company obtains control), and continue to be consolidated until the date that such control ceases. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statements, statements of comprehensive income, statements of changes in equity and balance sheets, respectively. Total comprehensive income (loss) within a subsidiary is attributed to the non-controlling interest even if it results in a deficit balance.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it:

► Derecognizes the assets (including goodwill) and liabilities of the subsidiary

► Derecognizes the carrying amount of any non-controlling interest

► Derecognizes the cumulative transaction differences recorded in equity

► Recognizes the fair value of the consideration received

► Recognizes the fair value of any investment retained

► Recognizes any surplus or deficit in profit or loss

► Reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss or retained earnings, as appropriate, as would be required if the Company had directly disposed of the related assets or liability.

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

The subsidiaries of the Company are set out below:

	Percentage of equity interest
Place of incorporation and operations	2019			2018
The British Virgin Islands
APWC General Holdings Limited		100	%		100	%
PRC (APWC) Holding Ltd.		100	%		100	%
Samray Inc.		100	%		100	%
Siam (APWC) Holdings Ltd.		100	%		100	%
Moon View Ltd.		100	%		100	%
Trigent Investment Holdings Limited		100	%		100	%
Crown Century Holdings Ltd.		100	%		100	%
Singapore
Sigma Cable Company (Private) Limited (“Sigma Cable”)		98.30	%		98.30	%
Epan Industries Pte Ltd.		98.30	%		98.30	%
Singvale Pte Ltd.		100	%		100	%
The People’s Republic of China (“PRC”)
Ningbo Pacific Cable Co., Ltd. (“Ningbo Pacific”)		97.93	%		97.93	%
Shanghai Yayang Electric Co., Ltd. (“SYE”)		68.75	%		68.75	%
Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. (“PEWS”)		97.93	%		97.93	%
Hong Kong
Crown Century Holdings Limited (“CCH (HK)”)		97.93	%		97.93	%
Australia
Australia Pacific Electric Cable Pty Limited (“APEC”)		98.06	%		98.06	%
Thailand
Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai”) (i)		50.93	%		50.93	%
Siam Pacific Electric Wire & Cable Company Limited (“Siam Pacific”)		50.93	%		50.93	%
Double D Cable Company Limited (“Double D”)		50.93	%		50.93	%
Hard Lek Limited.		73.98	%		73.98	%
APWC (Thailand) Co., Ltd.		99.48	%		99.48	%
PEWC (Thailand) Co., Ltd.		99.48	%		99.48	%
CTW Beta Co., Ltd.		50.89	%		50.89	%
Siam Fiber Optics Co., Ltd. (“SFO”) (ii)		45.84	%		30.56	%
Taiwan
Asia Pacific New Energy Corporation Limited ("APNEC") (iii)		100.00	%		100.00	%
YASHIN Energy Corporation Limited ("YASHIN") (iii)		100.00	%		100.00	%
YADING Energy Corporation Limited ("YADING") (iii)		100.00	%		100.00	%

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

(i) Charoong Thai is listed on the Stock Exchange of Thailand and is engaged in the manufacturing of wire and cable products for the power and telecommunications industries in Thailand.

(ii) The directors have concluded that the Company controls SFO, even though it holds less than half of the voting rights of this subsidiary. This is because the Company is the largest shareholder with a 50.93% equity interest in Charoong Thai, which held a 90% and 60% equity interest of SFO as of December 31. 2019 and 2018, respectively.

On October 30, 2019, Charoong Thai acquired additional 30% interest in SFO for a total consideration of THB 9 million, thereby increasing the Company’s interest in SFO from 30.56% to 45.84%. The Company recorded the effect of change in shareholding of the subsidiaries, amounting to $40 under the caption of “Additional paid-in capital” in the consolidated statement of change in equity.  

(iii) On June 19, 2018, APWC’s Board of Directors approved to set up APNEC as the Company’s subsidiary with 100% held. APNEC registered its incorporation on October 26, 2018 with TWD 500 million registered capital and a paid-up capital of TWD 4 million.

In December 2018, APNEC acquired 100% of interest both in YASHIN and YADING from a subsidiary of PEWC at cash consideration of TWD 0.5 million, respectively.

XML

Investments in Associates - Summarized Financial Information of Investments in Associates (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of associates [line items]
Current assets	$ 239,504	$ 254,148
Non-current assets	59,407	51,650
Current liabilities	(53,649)	(71,738)
Non-current liabilities	(16,827)	(12,244)
Total equity	228,435	221,816	$ 222,826	$ 197,175
Carrying amount of the investment	935	864	861
Revenue	338,160	425,940	425,215
Profit /(loss) for the year	(951)	7,446	13,528
Share of loss of associates	(3)	(3)	$ (3)
Siam Pacific Holding Company Limited [Member]
Disclosure of associates [line items]
Current assets	3	9
Non-current assets	2,103	1,938
Current liabilities	(3)	(3)
Non-current liabilities	(196)	(181)
Total equity	$ 1,907	$ 1,763
Percentage of equity interest	49.00%	49.00%	49.00%
Carrying amount of the investment	$ 935	$ 864
Profit /(loss) for the year	(6)	(5)	$ (5)
Share of loss of associates	$ (3)	$ (3)	$ (3)

XML

Investment Properties - Fair Value of Investment Properties (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about investment property [Line Items]
Investment properties	$ 730	$ 720	$ 763
Land [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	467	430
Office buildings for rent [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	263	290
Fair value [Member] | Land [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	11,566	10,656
Fair value [Member] | Office buildings for rent [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	$ 1,460	$ 1,397

XML

Contract Assets

12 Months Ended

Dec. 31, 2019

Contract Assets [Abstract]

Contract Assets

14. contract ASSETs

14(a)Assets related to contracts with customers

	As of December 31,
	2019		2018
	US$’000		US$’000
Contract assets - current		4,686		1,460

There were no advances received or retentions on SDI service contracts during the financial years ended December 31, 2019 and 2018.

The Company mainly conducts its SDI services contract with customers within public sector, and the expected credit loss on contract assets is close to zero.

14(b)Unsatisfied supply, delivery, and installation (SDI) services contracts

The following table shows the aggregate amount of the transaction price allocated to the unsatisfied performance obligations.

	As of December 31,
	2019		2018
	US$’000		US$’000
Unsatisfied long-term SDI contracts
Expected to be recognized as revenue over 3 years		156,592		14,922

XML

Trade and Other Receivables - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Trade And Other Receivables [Abstract]
Fair values of collateral	$ 1,339	$ 1,200
Impairment loss	$ 30	$ 52

XML

Financial Assets and Financial Liabilities - Summary of Interest-bearing Loans and Borrowings (Detail) ฿ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 THB (฿)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2019 SGD ($)	Dec. 31, 2018 THB (฿)	Dec. 31, 2018 CNY (¥)
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Amount	$ 11,356	$ 24,814
Renminbi (RMB) [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Maturity	Mar. 2020 ~ Sept. 2020	Jan. 2019 ~ Sept. 2019
Current interest-bearing loans and borrowings, Amount	$ 2,929	$ 6,130		¥ 20,400			¥ 42,100
Renminbi (RMB) [Member] | Bottom of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Interest rate	5.00%	4.70%	5.00%	5.00%	5.00%	4.70%	4.70%
Renminbi (RMB) [Member] | Top Of Range [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Interest rate	5.50%	4.79%	5.50%	5.50%	5.50%	4.79%	4.79%
Thai Baht (THB) [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Maturity	Jan. 2020 ~ Jun. 2020	Jan. 2019 ~ Jun. 2019
Current interest-bearing loans and borrowings, Amount	$ 5,423	$ 18,684	฿ 161,018			฿ 602,150
Thai Baht (THB) [Member] | Bottom of range [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Interest rate	1.90%	1.10%	1.90%	1.90%	1.90%	1.10%	1.10%
Thai Baht (THB) [Member] | Top Of Range [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Interest rate	2.70%	2.10%	2.70%	2.70%	2.70%	2.10%	2.10%
Singapore dollars (SGD) [Member]
Disclosure of detailed information about borrowings [Line Items]
Current interest-bearing loans and borrowings, Interest rate	3.05%		3.05%	3.05%	3.05%
Current interest-bearing loans and borrowings, Maturity	Feb. 2020 ~ Apr. 2020
Current interest-bearing loans and borrowings, Amount	$ 3,004				$ 4,042

XML

Financial Assets and Financial Liabilities - Reconciliation of the Beginning and Closing Balances of Equity Instrument as Financial Assets at FVCOI Classified as Level 3 Within the Fair Value Hierarchy (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Beginning balance	$ 2,332
Changes in the fair value of equity instruments measured at fair value through other comprehensive income	1,670	$ (419)
Ending balance	4,062	2,332
Significant unobservable inputs (Level 3) [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Beginning balance	2,332	2,747
Changes in the fair value of equity instruments measured at fair value through other comprehensive income	1,670	(419)
Exchange difference on translation	60	4
Ending balance	$ 4,062	$ 2,332

XML

Income Tax - Major Components of Income Tax Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current income tax:
Current income tax charge	$ 1,699	$ 4,068	$ 4,785
Previously unrecognized tax loss used to reduce current income tax		(128)	(1,066)
Adjustments for current income tax of prior years	(16)	1	348
Total current income tax	1,683	3,941	4,067
Deferred tax expenses/(benefits):
Relating to origination and reversal of temporary differences	374	243	1,210
Previously unrecognized tax loss used to reduce deferred tax expenses		(298)	(137)
Total deferred tax expenses/(benefits)	374	(55)	1,073
Income tax expense reported in the income statement	2,057	3,886	5,140
Deferred tax related to items recognized in other comprehensive income during the year:
Change in fair value of equity instrument, Recognized during the year	334	(84)	(16)
Net loss on actuarial gains and losses, Recognized during the year	(345)	(82)	(154)
Income tax benefits charged to other comprehensive (loss) income	$ (11)	$ (166)	$ (170)

XML

Basis of Preparation - Subsidiaries of the Company (Detail)		12 Months Ended
	Jun. 19, 2018	Dec. 31, 2019	Dec. 31, 2018
APWC General Holdings Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
PRC (APWC) Holding Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Samray Inc. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Siam (APWC) Holdings Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Moon View Ltd [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Trigent Investment Holdings Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Crown Century Holdings Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The British Virgin Islands
Percentage of equity interest		100.00%	100.00%
Sigma Cable Company (Private) Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Singapore
Percentage of equity interest		98.30%	98.30%
Epan Industries Pte Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Singapore
Percentage of equity interest		98.30%	98.30%
Singvale Pte Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Singapore
Percentage of equity interest		100.00%	100.00%
Ningbo Pacific Cable Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The People's Republic of China
Percentage of equity interest		97.93%	97.93%
Shanghai Yayang Electric Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The People's Republic of China
Percentage of equity interest		68.75%	68.75%
Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		The People's Republic of China
Percentage of equity interest		97.93%	97.93%
Crown Century Holdings Limited ("CCH (HK)") [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Hong Kong
Percentage of equity interest		97.93%	97.93%
Australia Pacific Electric Cable Pty Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Australia
Percentage of equity interest		98.06%	98.06%
Charoong Thai Wire and Cable Public Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		50.93%	50.93%
Siam Pacific Electric Wire & Cable Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		50.93%	50.93%
Double D Cable Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		50.93%	50.93%
Hard Lek Limited. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		73.98%	73.98%
APWC (Thailand) Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		99.48%	99.48%
PEWC (Thailand) Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		99.48%	99.48%
CTW Beta Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		50.89%	50.89%
Siam Fiber Optics Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Thailand
Percentage of equity interest		45.84%	30.56%
Asia Pacific New Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Taiwan
Percentage of equity interest	100.00%	100.00%	100.00%
YASHIN Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Taiwan
Percentage of equity interest		100.00%	100.00%
YADING Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Place of incorporation and operations		Taiwan
Percentage of equity interest		100.00%	100.00%

XML

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Fair Value Measurement Of Assets Liabilities [Abstract]

Disclosure Of Fair Value Measurement Of Assets Liabilities Explanatory

Fair value information:
As of December 31, 2019	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(3	)		—		(3	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		4,062			—		—			4,062
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		11,566			—		—			11,566
Office buildings		1,460			—		—			1,460

Fair value information:
As of December 31, 2018	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(142	)		—		(142	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		2,332			—		—			2,332
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		10,656			—		—			10,656
Office buildings		1,397			—		—			1,397

XML

Income and Expenses Items - Summary of Other Income and Other Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis Of Income And Expense [Abstract]
Other income	$ 462	$ 1,712	$ 114
Dividend income	109	105	100
Net gain on financial instruments	146	(2)	(332)
Total other income	717	1,817	214
Others	3	9	4
Net loss on financial instruments		2	332
Total other expenses	$ 3	$ 11	$ 336

XML

Subsequent Event - Additional Information (Detail) ฿ / shares in Units, ฿ in Millions	Apr. 22, 2020 USD ($)	Mar. 20, 2020 USD ($)	Mar. 20, 2020 THB (฿) ฿ / shares	Nov. 21, 2019 USD ($)
Bottom of range [Member]
Disclosure of non-adjusting events after reporting period [Line Items]
Minimum market value of publicly held shares requirement set forth in NASDAQ rules for listing on NASDAQ				$ 5,000,000
Major ordinary share transactions [Member] | Bottom of range [Member]
Disclosure of non-adjusting events after reporting period [Line Items]
Minimum market value of our publicly held common shares	$ 3,592,234
Major ordinary share transactions [Member] | Charoong Thai Wire and Cable Public Company Limited [Member]
Disclosure of non-adjusting events after reporting period [Line Items]
Dividend payments declared to its shareholders		$ 2,900,000	฿ 79.6
Dividend payments declared to its shareholders, per share | ฿ / shares			฿ 0.2
Dividend payment date		May 15, 2020	May 15, 2020
Dividends paid to non-controlling interests		$ 1,400,000

XML

Equity - Authorized Shares and Common Shares Issued and Fully Paid (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Classes Of Share Capital [Abstract]
Number of shares	50,000,000	50,000,000
Number of common shares issued and fully paid	13,830,769	13,830,769	13,830,769
Amount of common shares issued and fully paid	$ 138	$ 138	$ 138

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Summary Of Significant Accounting Policies [Abstract]

Estimated Useful Lives of Assets

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

►      Buildings	20-30 years
►      Building improvement	3-20 years
►      Machinery and equipment	4-20 years
►      Motor vehicles	3-10 years
►      Office equipment	2-20 years

Lease Term or Estimated Useful Lives of Assets

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

►Land use right	2 to 37 years
►Buildings	2 to  3 years
►Motor vehicles	1 to  3 years
►Office equipment	5        years

XML

Income and Expenses Items (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Summary of Other Operating Income

7(a)Other operating income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Gain on disposal of property, plant, and equipment		88		93		99
Reversal of allowance for trade receivable		122		—		—
Gain on disposal of assets classified as held for sale		—		—		4,525
Reversal of allowance for foreseeable loss		—		507		—
Other operating income – others		175		205		460
Total other operating income		385		805		5,084

Summary of Other Operating Expenses

7(b)Other operating expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Allowance for trade receivables for related parties		—		1		27
Allowance for trade receivables		—		570		302
Allowance for other receivable		30		53		—
Allowance for foreseeable loss		193		—		276
Impairment of property, plant, and equipment		546		11		223
Other operating expenses – others		1		810		81
Total other operating expenses		770		1,445		909

Summary of Finance Costs and Finance Income

7(c)Finance costs

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest on debts and borrowings		754		1,196		962
Interest on leases liabilities		91		4		4
Total interest expenses		845		1,200		966
Banking charges		167		178		255
Total finance costs		1,012		1,378		1,221

7(d)Finance income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest income		506		482		876
Total finance income		506		482		876

Summary of Other Income and Other Expenses

7(e)Other income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Other income		462		1,712		114
Dividend income		109		105		100
Net gain on financial instruments		146		—		—
Total other income		717		1,817		214

7(f)Other expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Others		3		9		4
Net loss on financial instruments		—		2		332
Total other expenses		3		11		336

Summary of Depreciation, Amortization and Lease Expense Included in Consolidated Income Statements

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

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Depreciation – tangible assets		4,089		4,162		4,148
Depreciation – right-of-use assets		135		—		—
Amortization – intangible assets		10		9		9
Operating lease expenses		3		16		15
Included in selling expenses:
Depreciation – tangible assets		93		141		132
Depreciation – right-of-use assets		112		—		—
Amortization – intangible assets		1		1		—
Operating lease expenses		1		184		193
Included in general and administrative expenses:
Depreciation – tangible assets		552		598		657
Depreciation – right-of-use assets		260		—		—
Amortization – intangible assets		39		34		40
Amortization – prepaid land lease payment		—		38		35
Depreciation – investment property		33		35		35
Operating lease expenses		170		200		201
		5,498		5,418		5,465

Summary of Employee Benefits Expenses

7(h)Employee benefits expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Wages and salaries		14,429		13,674		13,474
Labor and health insurance costs		126		162		168
Pension costs		994		890		869
Other employment benefits		816		892		817
Included in selling expenses:
Wages and salaries		3,495		3,685		3,641
Labor and health insurance costs		12		14		14
Pension costs		330		324		325
Other employment benefits		50		68		64
Included in general and administrative expenses:
Wages and salaries		8,117		8,818		8,364
Labor and health insurance costs		85		224		219
Pension costs		757		671		656
Director fees		640		1,046		1,119
Other employment benefits		286		325		342
Total employee benefits expenses		30,137		30,793		30,072

XML

Related Party Transactions - Outstanding Balances and Transactions with Related Parties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of transactions between related parties [Line Items]
Amounts due from related parties	$ 11,566	$ 12,061
Due to related parties	3,284	2,997
Pacific Electric Wire & Cable Co., Ltd. [Member]
Disclosure of transactions between related parties [Line Items]
Due to related parties	862	45
Purchases	2,745	521	$ 18,170
Sales		14	1,457
Fabrication Income received	140	412	208
Management fee paid	199	136	143
Information technology service fee paid	101	115	114
PEWC, Singapore Branch [Member]
Disclosure of transactions between related parties [Line Items]
Amounts due from related parties	21	15
Management fee received	14	14	14
PEWC Singapore Co. (Pte) Ltd. [Member]
Disclosure of transactions between related parties [Line Items]
Due to related parties	1,027	1,005
Interest expenses paid	22	21	15
PEWC (HK) [Member]
Disclosure of transactions between related parties [Line Items]
Amounts due from related parties	5,247	5,989
Due to related parties	20	399
Purchases		2,479	4,180
Sales	17,831	23,498	24,437
Service fee paid	218	231
Immediate Holding Company [Member]
Disclosure of transactions between related parties [Line Items]
Income from discharge of liability		1,537
Siam Pacific Holding Company Limited [Member]
Disclosure of transactions between related parties [Line Items]
Amounts due from related parties	196	181
Due to related parties	1,362	1,362
Italian-Thai and affiliates [Member]
Disclosure of transactions between related parties [Line Items]
Amounts due from related parties	6,102	5,876
Sales	4,188	6,814	6,203
Construction of factory building expenses and acquisition of assets	215
Fujikura Limited [Member]
Disclosure of transactions between related parties [Line Items]
Due to related parties		136
Purchases	249	750	$ 1,115
Others [Member]
Disclosure of transactions between related parties [Line Items]
Due to related parties	$ 13	$ 50

XML

Financial Assets and Financial Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Financial Instruments [Abstract]

Summary of Other Financial Assets and Liabilities

11(a)Other financial assets and liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Financial assets at fair value through other comprehensive income
Equity instrument (Note 11(d))		4,062		2,332
		4,062		2,332
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts (Note 11(c))		3		142
		3		142

Disclosure Of Financial Instruments [Line Items]

Summary of Interest-bearing Loans and Borrowings

	As of December 31,
	2019					2018
	Interest rate	Maturity	Local currency			Interest rate	Maturity	Local currency
	%		‘000	US$’000		%		‘000	US$’000
Current interest-bearing loans and borrowings
Bank loans
Bank loans	5.00 ~ 5.50	Mar. 2020 ~ Sept. 2020	RMB$20,400		2,929	4.70 ~ 4.79	Jan. 2019 ~ Sept. 2019	RMB$42,100		6,130
Trust receipt	1.90 ~ 2.70	Jan. 2020 ~ Jun. 2020	THB$161,018		5,423	1.10 ~ 2.10	Jan. 2019 ~ Jun. 2019	THB$602,150		18,684
Trust receipt	3.05	Feb. 2020 ~ Apr. 2020	SGD$4,042		3,004
Total					11,356					24,814

Foreign Currency Forward Contracts

The forward contract balance varies with the expected foreign currency transactions and changes in foreign exchange rate.

	2019				2018
	Assets		Liabilities		Assets		Liabilities
	US$’000		US$’000		US$’000		US$’000
Foreign currency forward contracts
Fair value		—		3		—		142

Comparison of Carrying Amounts and Fair Value of Financial Instruments

Set out below is a comparison of the carrying amounts and fair value of the Company’s financial instruments that are carried in the financial statements:

	Carrying amount				Fair value
	As of December 31,				As of December 31,
	2019		2018		2019		2018
	US$’000		US$’000		US$’000		US$’000
Financial assets-current
Cash and cash equivalents		53,673		60,778		53,673		60,778
Trade receivables		74,077		79,617		74,077		79,617
Other receivables		6,868		12,422		6,868		12,422
Due from related parties		11,566		12,061		11,566		12,061
Financial assets-non-current
Financial assets at fair value through other comprehensive income		4,062		2,332		4,062		2,332
Long-term bank deposits*		1,246		887		1,246		887
Total		151,492		168,097		151,492		168,097
Financial liabilities-current
Interest-bearing loans and borrowings		11,356		24,814		11,356		24,814
Trade and other payables		16,879		21,127		16,879		21,127
Due to related parties		3,284		2,997		3,284		2,997
Financial liabilities at fair value through profit or loss		3		142		3		142
Financial lease liabilities		574		44		574		44
Financial liabilities-non-current
Financial lease liabilities		2,254		46		2,254		46
Total		34,350		49,170		34,350		49,170
* included in other non-current assets

(i) Methods and assumptions used to estimate fair value

Description of Significant Unobservable Inputs to Valuation

(ii) Description of significant unobservable inputs to valuation

	Valuation technique	Significant unobservable inputs	Liquidity discount (2019 and 2018)	Sensitivity of the input to fair value
				2019	2018
Financial asset
Unquoted equity instrument	Market Approach Method	Liquidity Discount	30%	5%  decrease in the discount would increase in fair value by $290	5%  decrease in the discount would increase in fair value by $167

Significant unobservable inputs (Level 3) [Member] | Equity instrument as financial assets at fair value through other comprehensive income [Member]

Disclosure Of Financial Instruments [Line Items]

Fair Value of Assets

The Company carries the equity instrument as financial assets at fair value through other comprehensive income classified as level 3 within the fair value hierarchy.  A reconciliation of the beginning and closing balances is summarized below:

	2019		2018
	US$’000		US$’000
At January 1		2,332		2,747
Re-measurement financial assets to fair value, recognized in other comprehensive income/(loss)		1,670		(419	)
Exchange difference on translation		60		4
At December 31		4,062		2,332

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Other Current Liability - Summary of Onerous Contracts Provisions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Onerous Contracts Provision [Abstract]
At January 1	$ 42	$ 555
Recognized	218	37
Reversed	(25)	(544)
Exchange differences	3	(6)
At December 31	$ 238	$ 42

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Employee Benefit - Sensitivity Analysis of One-percentage Point Change in Assumed Rates (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Discount rate [Member]
Disclosure of sensitivity analysis for actuarial assumptions [Line Items]
Assumption - 1% increase	$ (1,003)	$ (777)
Assumption - 1% decrease	1,178	908
Rate of salary increase [Member]
Disclosure of sensitivity analysis for actuarial assumptions [Line Items]
Assumption - 1% increase	1,115	869
Assumption - 1% decrease	$ (973)	$ (762)

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Trade and Other Payables (Tables)

12 Months Ended

Dec. 31, 2019

Trade And Other Current Payables [Abstract]

Summary of Trade and Other Payables

	As of December 31,
	2019		2018
	US$’000		US$’000
Trade payables		10,509		15,941
Other payables		6,370		5,186
		16,879		21,127

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Right of Use Assets (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Quantitative Information About Rightofuse Assets [Abstract]

Summary of Right of Use Assets Recognized in Consolidated Balance Sheets

16(a)Amounts recognized in the consolidated balance sheets

	As of December 31,
	2019
Right-of-use assets	US$’000
Land		3,029
Buildings		546
Motor vehicle and  other  asset		58
Office  equipment		102
		3,735

Summary of Lease Expenses Recognized in Consolidated Income Statements

	2019
Depreciation charge of right-of-use assets	US$’000
Land		211
Buildings		233
Motor vehicle and  other  asset		38
Office  equipment		25
		507
Interest expenses (included in finance cost)		91
Expenses relating to short-term leases		159
Expenses relating to lease of low-value assets that are not short-term leases		15

Summary of Prepaid Land Lease Payments

	2018
	US$’000
Carrying amount as of January 1,		1,103
Recognized lease expense during the year		(38	)
Exchange difference		(53	)
Carrying amount as of December 31,		1,012
Current portion included in prepayments		34
Non-current portion included in prepaid land lease    payments		978

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Employee Benefit - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Defined Benefit Plans [Abstract]
Total charges for defined contribution pension plans	$ 1,160	$ 1,264	$ 1,280
Amount of long service leave obligation	$ 580	$ 539

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Material Partly-Owned Subsidiaries - Summarized Financial Information of Subsidiaries (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Summarized income statements:
Revenue	$ 338,160	$ 425,940	$ 425,215
Profit before tax	1,106	11,332	18,668
Income tax expense	(2,057)	(3,886)	(5,140)
(Loss) /Profit for the year	(951)	7,446	13,528
Other comprehensive income/(loss)	10,631	(5,051)	15,448
Total comprehensive income for the year, net of tax	9,680	2,395	28,976
Profit/(loss) attributable to non-controlling interests	681	4,518	4,808
Summarized balance sheets:
Cash, inventory and other current assets	239,504	254,148
Property, plant and equipment and other non-current assets	59,407	51,650
Trade and other payable (current)	(53,649)	(71,738)
Other non-current liabilities	(16,827)	(12,244)
Total equity	228,435	221,816	222,826	$ 197,175
Equity attributable to equity holders of the parent	153,854	150,028
Non-controlling interests	74,581	71,788
Summarized cash flow information:
Operating	15,140	40,649	(16,424)
Investing	(6,398)	(4,818)	3,389
Increase in cash flows used in financing activities	(17,949)	(19,578)	7,042
Effect of changes in exchange rate on cash	2,102	(1,568)	3,855
Net (decrease) increase in cash and cash equivalents	(7,105)	14,685	(2,138)
CTW Consolidated [Member]
Summarized income statements:
Revenue	172,385	213,424	207,529
Profit before tax	4,352	11,736	12,985
Income tax expense	(1,235)	(2,150)	(2,727)
(Loss) /Profit for the year	3,117	9,586	10,258
Other comprehensive income/(loss)	9,194	3,965	10,182
Total comprehensive income for the year, net of tax	12,311	13,551	20,440
Profit/(loss) attributable to non-controlling interests	1,378	4,509	4,896
Dividends paid to non-controlling interests	2,763	2,181	1,943
Summarized balance sheets:
Cash, inventory and other current assets	127,539	141,761
Property, plant and equipment and other non-current assets	49,009	42,691
Trade and other payable (current)	(15,350)	(33,715)
Other non-current liabilities	(11,358)	(8,161)
Total equity	149,840	142,576
Equity attributable to equity holders of the parent	76,216	73,621
Non-controlling interests	73,624	68,955
Summarized cash flow information:
Operating	10,776	38,784	(24,018)
Investing	2,319	(9,137)	6,589
Increase in cash flows used in financing activities	(20,260)	(12,585)	12,836
Effect of changes in exchange rate on cash	2,376	(102)	1,678
Net (decrease) increase in cash and cash equivalents	(4,789)	16,960	(2,915)
Shanghai Yayang Electric Co., Ltd. [Member]
Summarized income statements:
Revenue	20,743	33,790	33,533
Profit before tax	(2,272)	(837)	(161,011)
(Loss) /Profit for the year	(2,272)	(837)	(161,011)
Other comprehensive income/(loss)	(46)	(255)	345
Total comprehensive income for the year, net of tax	(2,318)	(1,092)	(160,666)
Profit/(loss) attributable to non-controlling interests	(710)	(262)	(15)
Summarized balance sheets:
Cash, inventory and other current assets	9,038	11,293
Property, plant and equipment and other non-current assets	1,385	1,881
Trade and other payable (current)	(8,239)	(8,671)
Total equity	2,184	4,503
Equity attributable to equity holders of the parent	1,502	3,096
Non-controlling interests	682	1,407
Summarized cash flow information:
Operating	5,135	3,648	833
Investing	(165)	(277)	(252)
Increase in cash flows used in financing activities	(1,847)	(4,005)	(563)
Effect of changes in exchange rate on cash	(28)	(34)	65
Net (decrease) increase in cash and cash equivalents	$ 3,095	$ (668)	$ 83

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New Standards And Interpretations - Summary of Application of New Standard Affected Items in Financial Statement (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018	Dec. 31, 2016
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Revenue	$ 338,160	$ 425,940	$ 425,215
Gross profit	24,787	36,248	39,688
Operating (loss) /profit	(649)	8,684	16,615
Profit before tax	1,106	11,332	18,668
Income tax expense	(2,057)	(3,886)	(5,140)
(Loss) /Profit for the year	(951)	7,446	13,528
Assets
Contract assets	4,686	1,460		$ 162
Deferred tax assets	3,939	3,919	3,022	3,026
Total affected assets	298,911	305,798
Liabilities
Other current liabilities	2,356	3,272
Total affected liabilities	70,476	83,982
Equity
Retained earnings	53,384	55,016	53,350	53,257
Non-controlling interests	74,581	71,788
Total affected equity	228,435	221,816	$ 222,826		$ 197,175
Total affected liabilities and equity	$ 298,911	305,798
IFRS 15 [Member]
Assets
Contract assets		1,460
Deferred tax assets		3,919
Total affected assets		5,379
Liabilities
Other current liabilities		3,272
Total affected liabilities		3,272
Equity
Retained earnings		55,016
Foreign currency translation reserve		(15,251)
Non-controlling interests		71,788
Total affected equity		111,553
Total affected liabilities and equity		114,825
Increase (decrease) due to application of IFRS 15 [member]
Assets
Contract assets				162
Gross amounts due from customers for contract work-in-process				(162)
Equity
Retained earnings				$ (113)
Increase (decrease) due to application of IFRS 15 [member] | IFRS 15 [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Revenue		(26)
Gross profit		(26)
Operating (loss) /profit		(26)
Profit before tax		(26)
Income tax expense		5
(Loss) /Profit for the year		(21)
Assets
Contract assets		(1,460)
Gross amounts due from customers for contract work-in-process		1,460
Deferred tax assets		(18)
Total affected assets		(18)
Liabilities
Other current liabilities		(88)
Total affected liabilities		(88)
Equity
Retained earnings		34
Foreign currency translation reserve		1
Non-controlling interests		35
Total affected equity		70
Total affected liabilities and equity		(18)
Amounts without adoption of IFRS 15 [Member] | IFRS 15 [Member]
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Revenue		425,914
Gross profit		36,222
Operating (loss) /profit		8,658
Profit before tax		11,306
Income tax expense		(3,881)
(Loss) /Profit for the year		7,425
Assets
Gross amounts due from customers for contract work-in-process		1,460
Deferred tax assets		3,901
Total affected assets		5,361
Liabilities
Other current liabilities		3,184
Total affected liabilities		3,184
Equity
Retained earnings		55,050
Foreign currency translation reserve		(15,250)
Non-controlling interests		71,823
Total affected equity		111,623
Total affected liabilities and equity		$ 114,807

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Fair Value Measurement - Quantitative Disclosures Fair Value Measurement Hierarchy for Assets (Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Financial assets at fair value through other comprehensive income	$ 4,062	$ 2,332	$ 2,747
Investment properties	730	720		$ 763
Office buildings for rent [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Investment properties	263	290
Significant unobservable inputs (Level 3) [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Financial assets at fair value through other comprehensive income	4,062	2,332		$ 2,747
Fair value [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Financial assets (liabilities) - derivatives	(3)	(142)
Financial assets at fair value through other comprehensive income	4,062	2,332
Fair value [Member] | Land not being used for operation [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Investment properties	11,566	10,656
Fair value [Member] | Office buildings for rent [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Investment properties	1,460	1,397
Fair value [Member] | Significant observable inputs (Level 2) [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Financial assets (liabilities) - derivatives	(3)	(142)
Fair value [Member] | Significant unobservable inputs (Level 3) [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Financial assets at fair value through other comprehensive income	4,062	2,332
Fair value [Member] | Significant unobservable inputs (Level 3) [Member] | Land not being used for operation [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Investment properties	11,566	10,656
Fair value [Member] | Significant unobservable inputs (Level 3) [Member] | Office buildings for rent [Member]
Disclosure of fair value measurement of assets (liabilities) [Line Items]
Investment properties	$ 1,460	$ 1,397

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Segment Information - Reconciliation of Segment Operating Profit (Loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Operating Segments [Line Items]
Segment operating profit/(loss)	$ (264)	$ 9,324	$ 12,440
Consolidated	(264)	9,324	12,440
Other operating income	385	805	5,084
Other operating expenses	(770)	(1,445)	(909)
Operating profit	(649)	8,684	16,615
Finance costs	(1,012)	(1,378)	(1,221)
Finance income	506	482	876
Share of loss of associates	(3)	(3)	(3)
Loss on liquidation of a subsidiary			(261)
Exchange gain	1,550	1,741	2,784
Other income	717	1,817	214
Other expense	(3)	(11)	(336)
Profit before tax	1,106	11,332	18,668
Operating segments [Member]
Disclosure Of Operating Segments [Line Items]
Segment operating profit/(loss)	2,620	12,467	15,514
Finance income	505	770	957
Profit before tax	1,106	11,332	18,668
Corporate expense adjustments and eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Segment operating profit/(loss)	(2,884)	(3,143)	(3,074)
Corporate expenses adjustments and eliminations	(2,884)	(3,143)	(3,074)
Finance income	1	(288)	(81)
Segment Reconciling Items [Member]
Disclosure Of Operating Segments [Line Items]
Other operating income	385	805	5,084
Other operating expenses	(770)	(1,445)	(909)
Finance costs	(1,012)	(1,378)	(1,221)
Finance income	506	482	876
Share of loss of associates	(3)	(3)	(3)
Loss on liquidation of a subsidiary			(261)
Exchange gain	1,550	1,741	2,784
Other income	717	1,817	214
Other expense	$ (3)	$ (11)	$ (336)

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Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail)	12 Months Ended
	Dec. 31, 2019
Buildings [Member] | Bottom of range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	20 years
Buildings [Member] | Top Of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	30 years
Building improvement [Member] | Bottom of range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	3 years
Building improvement [Member] | Top Of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	20 years
Machinery and equipment [Member] | Bottom of range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	4 years
Machinery and equipment [Member] | Top Of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	20 years
Motor vehicles [Member] | Bottom of range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	3 years
Motor vehicles [Member] | Top Of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	10 years
Office equipment [Member] | Bottom of range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	2 years
Office equipment [Member] | Top Of Range [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Estimated useful lives of assets	20 years

XML

New Standards And Interpretations - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Decrease in cash flows used in operating activities	$ 15,140	$ 40,649	$ (16,424)
Increase in cash flows used in financing activities	$ (17,949)	$ (19,578)	$ 7,042
Weighted average discount rate	3.48%
IFRS 16
Disclosure Of Initial Application Of Standards Or Interpretations [Line Items]
Decrease in cash flows used in operating activities	$ 354
Increase in cash flows used in financing activities	$ 354

XML

Financial Risk Management Objectives - Commodity Price Sensitivity (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
16% increase in commodity price [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of commodity price	16.00%
Effect on profit before tax due to change in commodity price	$ (3,473)
16% decrease in commodity price [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of commodity price	(16.00%)
Effect on profit before tax due to change in commodity price	$ 3,473
23% increase in commodity price [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of commodity price		23.00%
Effect on profit before tax due to change in commodity price		$ 6,461
23% decrease in commodity price [Member]
Disclosure of nature and extent of risks arising from financial instruments [Line Items]
Percentage of change of commodity price		(23.00%)
Effect on profit before tax due to change in commodity price		$ (6,461)

XML

Segment Information - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Operating Segments [Line Items]
Revenues from performance obligations satisfied	$ 0	$ 0
Revenue	338,160,000	425,940,000	$ 425,215,000
ROW (Segment) [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	89,206,000	108,869,000
ROW (Segment) [Member] | One major customer [Member]
Disclosure Of Operating Segments [Line Items]
Revenue	$ 23,118,000	$ 37,197,000	$ 36,518,000
Percentage of entity's revenue from major customer	6.84%	8.73%	8.59%

XML

Income Tax

12 Months Ended

Dec. 31, 2019

Major Components Of Tax Expense Income [Abstract]

Income Tax

8. INCOME TAX

Under current Bermuda law, the Company is not subject to tax on income or capital gains, nor is withholding tax of Bermuda imposed upon payments of dividends by the Company to its shareholders.

The Company’s investments in the Operating Subsidiaries are held through subsidiaries incorporated in the British Virgin Islands (“BVI”). Under current BVI law, dividends from the BVI subsidiaries’ investments are not subject to income taxes and no withholding tax is imposed on payments of dividends by the BVI subsidiaries to the Company.

The Operating Subsidiaries and equity investees are governed by the income tax laws of Singapore, Thailand, Australia and the PRC.  The corporate income tax rate in Singapore was 17% for each of the three years ended December 31, 2019, and there is no withholding tax on dividends applicable to the Company.  For Thailand, the statutory corporate income tax rate was 20% for each of the three years ended December 31, 2019 and a withholding tax of 10% is levied on dividends received by the Company. Charoong Thai is listed on Stock Exchange of Thailand (“SET”). In Australia, the corporate income tax rate was 30% for 2016/2017, 2017/2018 and 2018/2019 tax years. The applicable corporate income tax rate for the subsidiaries in the PRC was 25% for each of the three years ended December 31, 2019.

Dividends received from the Operating Subsidiaries and equity investees may be subjected to withholding taxes. Under the current Singapore corporate tax system, dividends paid by a Singapore resident company is tax exempt, and is not subject to withholding taxes. In Australia, dividends paid to non-residents are exempt from dividend withholding taxes except when dividends are paid out of profit that is not taxed by Australian income tax (i.e. unfranked dividends). For Thailand, dividends paid by a company to any individual or corporate payee overseas are subject to a withholding tax of 10%. Under the Corporate Income Tax Law of the PRC, dividend distribution of profits to foreign investor(s) is subject to withholding tax of 10%.

8. INCOME TAX (continued)

The major components of income tax expenses for the years ended December 31, 2019, 2018 and 2017 are:

	2019			2018			2017
	US$’000			US$’000			US$’000
Consolidated income statements
Current income tax:
Current income tax charge		1,699			4,068			4,785
Previously unrecognized tax loss used to reduce current income tax		—			(128	)		(1,066	)
Adjustments for current income tax of prior years		(16	)		1			348
Total current income tax		1,683			3,941			4,067
Deferred tax expenses/(benefits):
Relating to origination and reversal of temporary differences		374			243			1,210
Relating to change in tax rate		—			—			—
Previously unrecognized tax loss used to reduce deferred tax expenses		—			(298	)		(137	)
Total deferred tax expenses/(benefits)		374			(55	)		1,073
Income tax expense reported in the income statement		2,057			3,886			5,140
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		334			(84	)		(16	)
Effect of change in tax rate		—			—			—
Net loss on actuarial gains and losses
Recognized during the year		(345	)		(82	)		(154	)
Effect of change in tax rate		—			—			—
Income tax benefits charged to other comprehensive (loss) income		(11	)		(166	)		(170	)

8. INCOME TAX (continued)

The parent company’s tax is filed in Bermuda, which does not have a statutory tax rate. The provision for income taxes differs based on the tax incurred by the Operating Subsidiaries, in their respective jurisdiction. The Company determines its statutory tax rate based on its major commercial domicile that is its subsidiaries in Thailand. The reconciliation of the statutory tax rate and the Company’s effective tax rate is as follows:

	2019			2018			2017
	US$’000			US$’000			US$’000
Profit before tax		1,106			11,332			18,668
Tax at statutory rate of 20% (2018: 20%; 2017: 20%)		221			2,266			3,734
Foreign income taxed at different rate		499			697			1,151
Expenses not deductible for tax purpose		221			(33	)		600
Utilization of previously unrecognized tax losses		—			(128	)		(1,066	)
Tax benefit arising from previously unrecognized tax losses		—			(298	)		(137	)
Net deferred tax asset not recognized		949			679			78
Written-off deferred tax		218			(4	)		10
Tax exempt on income		(144	)		(135	)		(245	)
Uncertain tax position		(454	)		11			(270	)
Return to provision adjustment		(16	)		1			348
Deferred tax liability arising from undistributed earnings		215			578			602
Withholding tax on dividends		355			270			349
Others		(7	)		(18	)		(14	)
Income tax expense reported in income statement		2,057			3,886			5,140

8. INCOME TAX (continued)

Deferred tax

Deferred tax relates to the following:

	Consolidated balance sheet						Consolidated income statement
	As of December 31,						For the year ended Decembers 31,
	2019			2018			2019			2018			2017
	US$’000			US$’000			US$’000			US$’000			US$’000
Outside basis differences		(3,829	)		(3,614	)		215			578			602
Revaluations of financial assets at fair value through other comprehensive income (2017: Revaluations of available-for-sale investment to fair value)		(679	)		(345	)		—			—			—
Accrued interest income		(181	)		(154	)		13			12			11
Unutilized building allowance (net)		(36	)		(133	)		(98	)		(95	)		11
Unused tax losses		546			644			119			(459	)		455
Allowance for doubtful accounts		245			290			47			(97	)		(25	)
Inventory impairment		554			657			147			(236	)		(161	)
Rebates and other accrued liabilities		472			426			(46	)		(38	)		(6	)
Unpaid retirement benefits		1,553			1,353			(81	)		(54	)		(62	)
Deferred revenue and cost of sales		23			16			(6	)		(14	)		393
Actuarial loss		796			450			—			—			—
Unabsorbed depreciation		637			701			57			(55	)		(45	)
Mark-to-Market value of forward contract		—			28			28			(28	)		—
Others		(301	)		(325	)		(21	)		431			(100	)
Deferred tax expenses / (benefits)								374			(55	)		1,073
Net deferred tax assets		(200	)		(6	)

Reconciliation of deferred tax assets, net

	2019			2018			2017
	US$’000			US$’000			US$’000
Opening balance as of January 1		(6	)		(132	)		526
Tax benefit/(expenses) during the period recognized in profit or loss		(374	)		55			(1,073	)
Tax benefit/(expenses) during the period recognized in other comprehensive income		11			166			170
Exchange difference on translation foreign operations		169			(95	)		245
Closing balance as of December 31		(200	)		(6	)		(132	)

The Company offset tax assets and liabilities if and only if it has legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities related to income taxes levied by the same tax authority.

8. INCOME TAX (continued)

The Company has available unused net operating losses which arose in Thailand, China, Hong Kong, Singapore and Australia as of December 31, 2019 and 2018, that may be applied against future taxable income and that expire as follows respectively:

	As of December 31,
Year of expiration	2019		2018
	US$’000		US$’000
2019		—		784
2020		3,067		3,020
2021		5,246		5,121
2022		2,216		2,105
2023		4,855		4,760
2024		3,605		—
No expiration		1,591		972
		20,580		16,762

Deferred tax assets have not been recognized in respect of these losses as they may not be used to offset taxable profits elsewhere in the Company, as they have arisen in subsidiaries that have been loss-making for some time, and there are no other tax planning opportunities or other evidence of recoverability in the near future. The Company did not recognize deferred tax assets of $4,038 (2018: $3,084; 2017: $2,803) in respect of tax losses amounting to $18,422 (2018: $13,698; 2017: $12,769).

In addition, the Company did not recognize deferred assets of $1,030 (2018: $792; 2017: $1,144) in relation to deductible temporary differences amounting to $4,695 (2018: $3,557; 2017: $4,930).

There are no income tax consequences attached to the payment of dividends in either 2019 or 2018 by the Company to its shareholders.

As of December 31, 2019 and 2018, the Company is subject to taxation in PRC, Australia, Thailand, and Singapore.  The Company’s tax years from 2011 and forward are still subject to examination by the tax authorities in various tax jurisdictions.

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

Change in Uncertain Tax Positions	2019			2018			2017
	US$’000			US$’000			US$’000
Balance as of January 1		674			706			828
Additions based on tax positions related to the current year		—			—			—
Decrease due to lapses in statute of limitations		(215	)		—			(175	)
Exchange difference		(8	)		(32	)		53
Balance as of December 31		451			674			706

The Company is not expecting there would be any reasonably possible change in the total amounts of uncertain tax position within twelve months of the reporting date. As of December 31, 2019, 2018, and 2017 the amount of uncertain tax position (excluding interest and penalties) included in the consolidated balance sheets that would, if recognized, affect the effective tax rate is $451, $674 and $706, respectively.

8. INCOME TAX (continued)

The Company recognized interest expense and penalties related to income tax matters as a component of income tax expense. The amount of related interest and penalties the Company has provided as of the dates listed below were:

	As of December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Accrued interest on uncertain tax position		713		867		800
Accrued penalties on uncertain tax position		384		461		486
Total accrued interest and penalties on uncertain tax position		1,097		1,328		1,286

For the years ended December 31, 2019, 2018 and 2017, the Company recognized $81, $108 and $114 in interest and $nil, $nil and $nil in penalty, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company reversed $223, $nil and $276 in interest and $71, $nil and $87 in penalties, respectively, due to lapses in statute of limitations. For the years ended December 31, 2019, 2018 and 2017, the exchange difference $(12), $(41) and $ 65 relating to interests, $(6), $(25) and $38 relating to penalty were included in income tax expenses.

The Company considers each uncertain tax positions individually, by first consider whether each position taken in the tax return is probable of being sustained on examination by the taxing authority. It should recognize a liability for each item that is not probable of being sustained. The liability then is measured using a single best estimate of the most likely outcome. The uncertain tax positions presented in the current tax liability is the total liability for uncertain tax positions.

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Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash And Cash Equivalents [Abstract]
Cash on hand and cash at banks	$ 53,673	$ 60,778	$ 46,093	$ 48,231

XML

Income Tax - Reconciliation of Beginning and Ending Amounts of Uncertain Tax Position (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Change In Tax Positions [Abstract]
Beginning balance	$ 674	$ 706	$ 828
Additions based on tax positions related to the current year	0
Decrease due to lapses in statute of limitations	(215)		(175)
Exchange difference	(8)	(32)	53
Ending balance	$ 451	$ 674	$ 706

XML

New Standards and Interpretations

12 Months Ended

Dec. 31, 2019

Disclosure Of Initial Application Of Standards Or Interpretations [Abstract]

New Standards and Interpretations

4. NEW STANDARDS AND INTERPRETATIONS

4.1 Recently applied accounting pronouncements

(a) New and amended standard applied effective in 2019

The Company has initially applied IFRS 16 from January 1, 2019. The nature and effect of the changes as a result of application of the new accounting standard is described below.

IFRS 16 Leases

IFRS 16 supersedes IAS 17, Leases and related interpretation, and it sets out the requirements for the recognition, measurement, presentation and disclosure of leases. IFRS 16 provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting still uses the dual classification approach to classify each lease as an operating lease or a finance lease.

The Company applied IFRS 16 initially on January 1, 2019 using the modified retrospective method. In accordance with the IFRS 16 transition guidance, the cumulative effect of adopting the new standard is recognized as an adjustment to the opening balance of retained earnings at January 1, 2019, with no restatement of comparative information.

Upon the application of IFRS 16 on January 1, 2019, the Company applied the following practical expedients permitted by the standard:

► the use of a single discount rate to a portfolio of leases with reasonably similar characteristics

► the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases

► the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application, and

► the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

The significant effects of adopting the IFRS 16 as of January 1, 2019 are summarized as below:

Affected items of consolidated balance sheet	As of December 31, 2018		Effect of application of new standards			As of January 1, 2019		Remarks
	US$’000		US$’000			US$’000
Assets
Prepayments		1,140		(59	)		1,081	B
Lease assets*		66		(66	)		—	A
Right-of-use assets		—		3,801			3,801	A, B, C
Prepaid land lease payments		978		(978	)		—	B
Total affected assets		2,184		2,698			4,882
Liabilities
Financial lease liabilities - current		44		362			406	C
Financial lease liabilities - non-current		46		2,336			2,382	C
Total affected liabilities		90		2,698			2,788
* included in the line "Property, plant and equipment" in the balance sheet

A. Lease assets of $66 previously recognized under finance leases were reclassified from property, plant and equipment to right-of-use assets.

B. Prepaid land lease payments of $59 and $978 previously classified as prepayment under current assets and prepaid land lease payments under non-current assets were reclassified to right-of-use assets.

C.  The Company recognized right-of-use assets and lease liabilities for those leases previously classified as operating leases under IAS 17, except for short-term leases and leases of low-value asset. The Company recognized right-of-use assets based on the amount equal to the lease liabilities. Lease liabilities were recognized based on the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate at January 1, 2019.

Additionally, operating cash flows increased and financing cash flows decreased by $354 for the year ended December 31, 2019 as repayments on the principal portion of non-finance lease liabilities were classified as cash flows from financing activities for the year ended December 31, 2019, where previously it was classified as operating cash flows.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

Reconciliation of IAS 17 non-cancelled operating lease commitment to IFRS 16 lease liability:

	2019
	US$’000
Operating lease commitments disclosed as at December 31, 2018		3,263
Add: finance lease liabilities recognized as at December 31, 2018		90
Discounted using the incremental borrowing rate at January 1, 2019		(380	)
Recognition exemption for:
Short-term leases		(169	)
Leases of low-value assets		(16	)
Lease liabilities recognized as at January 1, 2019		2,788

         As of January 1, 2019, the weighted average discount rate was 3.48%.

(b) New and amended standard applied effective in 2018

The Company has initially applied IFRS 15 and IFRS 9 from January 1, 2018. The nature and effect of the changes as a result of adoption of these new accounting standard are described below.

IFRS 15 Revenue from contracts with customers

IFRS 15 supersedes IAS 11 Construction Contracts, IAS 18 Revenue and related interpretation, and it applies with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a five-step model to account for revenue arising from contracts with customers and requires the revenue be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures.

The Company adopted IFRS 15 using the modified retrospective method of adoption with the date of initial application of January 1, 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Company elected to apply the standard retrospectively only to contracts that are not completed as of January 1, 2018. The Company opted to apply the practical expedient for contract modification to all modifications that occurred before the date of initial application.

The cumulative effect of initially applying IFRS 15 is recognized at the date of initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under IAS 11, IAS 18 and related interpretations.

IFRS 9 Financial Instruments

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

The Company has elected not to restate prior period financial statements using the modified retrospective approach under IFRS 9 as of January 1, 2018. The comparative information has not been restated which continues to be reported under IAS 39. Differences arising from the adoption of IFRS 9 have been recognized directly in retained earnings and other components of equity.

The significant effects of adopting the new standards as of January 1, 2018 are summarized as below:

Affected items of consolidated balance sheet	As of December 31, 2017		Effect of application of new standards			As of January 1, 2018		Remarks
	US$’000		US$’000			US$’000
Assets
Contract assets - current		—		162			162	A
Gross amounts due from customers for contract work-in-progress		162		(162	)		—	A
Trade receivables		112,403		16			112,419	C
Financial assets – available for sale		2,747		(2,747	)		—	B
Financial assets at fair value through other comprehensive income		—		2,747			2,747	B
Deferred income tax assets		3,022		4			3,026	D
Total affected assets		118,334		20			118,354
Liabilities
Contract liabilities - current		—		113			113	E
Total affected liabilities		—		113			113
Equity
Retained earnings		53,350		(93	)		53,257	B, C, D, E
Total affected equity		53,350		(93	)		53,257
Total affected liabilities and equity		53,350		20			53,370

A. In accordance with IFRS 15, the Company reclassified gross amounts due from customers for contract work-in-progress in the amount of $162 to contract assets as of January 1, 2018.

B. Equity investments in non-listed equity investments previously classified as available-for-sale financial assets were reclassified and measured as financial assets at FVOCI because these investments are held as long-term strategic investments purpose. As a result, assets with fair value of $2,747 were reclassified from available-for-sale financial assets to financial assets at FVOCI and fair value gains of $1,717 were reclassified from the available-for-sale financial assets reserve to the FVOCI reserve on January 1, 2018, of which $843 was related to non-controlling interests.

C. The application of IFRS 9 has fundamentally changed the Company’s accounting for impairment losses for trade receivable by replacing IAS 39’s incurred loss approach with a forward looking ECL approach.  Upon application of IFRS 9, the Company reversed impairment on trade receivables by $16. As a result, trade receivables and retained earnings increased by $16.

D. The Company recognized deferred income tax assets for the temporary differences arising from the adjustments upon initial application of IFRS 9 and IFRS 15. Deferred income tax assets and retained earnings both increased by $4.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

E. In accordance with IFRS 15, the Company’s performance obligation to provide custodial and transportation services are recognized as contract liabilities under bill-and-hold agreements. After adopting IFRS 15, the Company recognizes revenue from custodial services over time and transportation revenue upon delivery. As of January 1, 2018, the balance of contract liabilities increased by $113, and retained earnings decreased by $113.

The following tables summarized the impacts of adopting IFRS 15 on the consolidated income statement for the year ended December 31, 2018 and its consolidated balance sheet as of December 31, 2018 for each of the line items affected. There was no material impact on the consolidated statement of cash flows for the year ended December 31, 2018.

Affected items of consolidated income statement for the year ended December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Revenue		425,940			(26	)		425,914
Gross profit		36,248			(26	)		36,222
Operating profit		8,684			(26	)		8,658
Profit before tax		11,332			(26	)		11,306
Income tax expense		(3,886	)		5			(3,881	)
Profit for the year		7,446			(21	)		7,425

Affected items of consolidated balance sheet as of December 31, 2018	As reported			Adjustments			Amounts without application of IFRS 15
	US$’000			US$’000			US$’000
Assets
Contract assets - current		1,460			(1,460	)		—
Gross amounts due from customers for contract work-in-process		—			1,460			1,460
Deferred income tax assets		3,919			(18	)		3,901
Total affected assets		5,379			(18	)		5,361
Liabilities
Other current liabilities		3,272			(88	)		3,184
Total affected liabilities		3,272			(88	)		3,184
Equity
Retained earnings		55,016			34			55,050
Foreign currency translation reserve		(15,251	)		1			(15,250	)
Non-controlling interests		71,788			35			71,823
Total affected equity		111,553			70			111,623
Total affected liabilities and equity		114,825			(18	)		114,807

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.1 Recently applied accounting pronouncements (continued)

Prior to the application of IFRS 15, the Company recognized revenue based on the accounting treatment of the sales of goods for bill and hold transactions. In accordance with IFRS 15, the Company allocated the transaction prices to those custodial and transportation services under bill and hold transactions, and recognizes revenues from custodial and transportation services only when the services fulfilled. As a result, the Company will recognized contract liabilities and adjusted related deferred income tax assets and equity accordingly.

Reclassifications are made to reflect the terms used under IFRS 15. Amounts previously presented in “Gross amounts due from customers for contract” are reclassified into “contract assets-current”.

4.2 New accounting pronouncements not effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below.  The Company intends to adopt these standards, if applicable, when they become effective.

Sales or contribution of assets between an investor and its associate or joint venture-Amendments to IFRS 10 and IAS 28

In September 2014, the IASB issued amendments to IFRS 10, Consolidated Financial Statements and IAS 28, Investments in Associates and Joint Ventures, entitled Sales or Contribution of Assets between an Investor and its Associate or Joint Ventures. These narrow scope amendments clarify, that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not), and a partial gain or loss is recognized when a transaction involves assets that do not constitute a business. On December 17, 2015, the IASB issued an amendment that postpones the application of the amendments to IFRS 10 and IAS 28 indefinitely.

The Company does not expect the amendments to have an impact on its consolidated financial statements.

Definition of a business: Amendments to IFRS 3

In October 2018, the IASB issued amendments to the definition of a business in IFRS 3 Business Combinations to help entities determine whether an acquired set of activities and assets a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test. The amendment applies to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted.

Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Company will not be affected by these amendments on the date of transition.

Definition of material: Amendments to IAS 1 and IAS 8

In October 2018, the IASB issued amendments of IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of “material” across the standards and to clarify certain aspects of the definition. The new definition states that “information is material if omitting, misstating or obscuring if could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific report entity.” The amendments take effect for materiality judgements made in annual periods beginning on or after January 1, 2020, and are applied prospectively. Earlier application is permitted (the entity must disclose that fact).

The Company does not expect the amendments to have an impact on its consolidated financial statements.

4. NEW STANDARDS AND INTERPRETATIONS (continued)

4.2 New accounting pronouncements not effective (continued)

Classification of liabilities as current or non-current: Amendments to IAS 1

On January 23, 2020, the IASB issued a narrow-scope amendment to IAS 1 to clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period.

They:

► clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting date and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability;

► clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and

► make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.

The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and are to be applied retrospectively. Earlier application is permitted.

The amendment could affect the classification of liabilities, particularly for previously considered management’s intention to determine classification and for some liabilities that can be converted into equity. The Company is based on the contractual arrangement in place at the reporting date for the classification, thus, the Company does not expect the amendment to have an impact on its consolidated financial statements.  

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Trade and Other Receivables

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Trade and Other Receivables

12. TRADE AND OTHER RECEIVABLES

	As of December 31,
	2019			2018
	US$’000			US$’000
Trade receivables		75,627			81,274
Less: Loss allowances		(1,550	)		(1,657	)
Trade receivable, net		74,077			79,617
Other receivables		6,986			12,502
Less: Loss allowances		(118	)		(80	)
Other receivable, net		6,868			12,422

12(a) Movement in the loss allowance on trade receivables

	2019			2018
	US$’000			US$’000
At January 1		1,657			3,456
Charge for the year		72			726
Write-off		(1	)		(2,292	)
Unused amounts reversed		(194	)		(156	)
Currency translation adjustment		19			(74	)
Reclassification		(3	)		(3	)
At December 31		1,550			1,657

The Company recorded a loss allowance on trade receivables amounted to $2.0 million, for a specific customer of a subsidiary, as of December 31, 2017. This loss allowance on trade receivables was written off in 2018 based on the court judgement with no reasonable expectation of recovery.

12(b)Aging analysis of trade receivables

					Past due
	Total		Current		1-30 days		31-60 days		61-90 days		91-120 days		>120 days
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
December 31, 2019
Expected loss rate	2.05%		0.14%		0.76%		3.75%		9.52%		23.89%		75.97%
Gross carrying amount - trade receivables		75,627		59,867		9,979		3,759		294		180		1,548
Loss allowances		1,550		86		76		141		28		43		1,176
Trade receivable, net		74,077		59,781		9,903		3,618		266		137		372
December 31, 2018
Expected loss rate	2.04%		0.07%		0.86%		3.95%		20.18%		31.71%		64.70%
Gross carrying amount - trade receivables		81,274		67,318		9,183		2,276		327		82		2,088
Loss allowances		1,657		45		79		90		66		26		1,351
Trade receivable, net		79,617		67,273		9,104		2,186		261		56		737

12. TRADE AND OTHER RECEIVABLES (continued)

12(c)Accounting policy for impairment of trade receivables

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the Company’s historical credit loss experience, adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of the customers to settle the receivables.

The impairment of trade receivables was assessed based on the incurred loss model as of December 31, 2017. The Company measured estimated impairment losses on trade receivables based on the inability of its customers to make required payments. The Company considered the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, customer financial condition, past transaction history with the customer, current economic industry trends, and changes in customer payment terms.

12(d)Material collateral obtained

The Company obtained collateral in respect of doubtful receivables from customers. The collateral takes the form of a lien over the customer’s assets and gives the Company a claim on these assets for the doubtful receivables.

In March 2017, a lawsuit was filed by a debtor to rescind the foreclosure that the Company has undertaken on the collateral in Thailand. The Company’s foreclosure prevailed according to the judgement from the Appeal Court on November 28, 2017. The debtor’s petition reached to the Supreme Court on June 19, 2018, and was denied on March 27, 2019. The Company performed a valuation to determine the fair value of the collateral. As of December 31, 2019 and 2018, the fair value of the collateral was $1,339 and $1,200, respectively, which was lower than the amount of the associated delinquent account, and the Company recognized an impairment loss of $30 and $52 in other operating expenses, respectively.

See Note 27(b) credit risk of trade receivables for discussions on how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

12(e)Other receivables pledged as collateral

The carrying amounts of other receivables pledged as collateral against credit facilities received from financial institutions are disclosed in Note 27(e)(ii).

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Commitments and Contingencies

25. COMMITMENTS AND CONTINGENCIES

25(a)Non-cancellableoperating lease commitments – the Company as lessee

The Company leases a piece of land and some buildings in Singapore under non-cancellable operating lease arrangements for terms from 1 to 30 years.From January 1, 2019, the company has recognized right-of-use assets for these leases (see Note 16 and Note 27(c)).

	As of December 31,
	2018
	US$’000
Within one year		616
After one year but not more than five years		1,279
More than five years		1,368
		3,263

25(b)Finance lease liabilities

Future minimum payments under finance leases with initial terms of one year or more consisted of the following for December 31, 2018. (see Note 16 and Note 27(c)).

	2018
	Minimum payments			Present value of payments
	US$’000			US$’000
Within one year		47			44
After one year but not more than five years		47			46
More than five years		—			—
Total minimum lease payments		94			90
Less: amount representing finance charges		(4	)		—
Present value of minimum lease payment		90			90

The finance lease liabilities are secured by the leased motor vehicles. The average discount interest rate implicit in the lease is 5.18% for 2018.

25. COMMITMENTS AND CONTINGENCIES (continued)

25(c)Purchase commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had commitments to purchase raw materials totaling $200 million to $290 million and $136 million to $176 million (20,996 to 30,580 metric tons and 22,450 to 28,940 metric tons), respectively, from third parties at the prices stipulated in the contracts.

25(d)Capital commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had capital commitment relating to the construction of factory building improvement and acquisition of machinery, totaling $5.8 million and $0.6 million, respectively.

25(e)Guarantees

As of December 31, 2019 and 2018, one of Charoong Thai’s subsidiaries had guarantee obligations of bank credit line of its operating subsidiary at approximately $0 million and $2 million, respectively.

As of December 31, 2019 and 2018, the Company provided a corporate guarantee not exceeding the sum of $24.7 million and $24.3 million, respectively, for the bond performance and banking facility of Sigma Cable.

As of December 31, 2019 and 2018, there were outstanding bank guarantees of $38.5 million and $36.9 million, respectively, issued by the banks on behalf of Charoong Thai and its subsidiaries in respect of certain performance bonds as required in the normal course of business of the companies. These guarantees generally expire within 1 year.

25(f)Service commitments

As of December 31, 2019 and 2018, the Company and its subsidiaries had commitments in respect of management consulting services with related parties totaling $0.3 million and $0.2 million, respectively.

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Inventories - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Classes Of Inventories [Abstract]
Inventories recognized as expense	$ 313,695	$ 388,079	$ 384,995
Amount expensed (credited) to cost of sales	$ (322)	$ 1,613	$ 532

XML

Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	$ 41,418	$ 42,326
Impairment of property, plant and equipment	(546)	(11)	$ (223)
Ending balance	41,747	41,418	42,326
Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	170,704	170,470
Additions	3,406	4,498
Disposals	(3,167)	(2,121)
Transfer	64
Exchange differences	11,944	(2,143)
Ending balance	182,759	170,704	170,470
Gross carrying amount [Member] | Effects on initial application of IFRS 16 [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Effects on initial application of IFRS 16		(192)
Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	170,512
Ending balance		170,512
Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(129,286)	(128,144)
Depreciation charge for the year	(4,734)	(4,901)
Impairment of property, plant and equipment	(546)	(11)
Disposals	3,084	2,114
Transfer	(64)
Exchange differences	(9,592)	1,656
Ending balance	(141,012)	(129,286)	(128,144)
Accumulated depreciation [Member] | Effects on initial application of IFRS 16 [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Effects on initial application of IFRS 16		126
Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(129,160)
Ending balance		(129,160)
Land [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	6,206	6,227
Ending balance	6,838	6,206	6,227
Land [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	6,206	6,227
Exchange differences	632	(21)
Ending balance	6,838	6,206	6,227
Land [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	6,206
Ending balance		6,206
Buildings [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	14,160	15,339
Ending balance	13,673	14,160	15,339
Buildings [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	47,890	48,421
Additions	7	229
Disposals		(8)
Transfer	(167)
Exchange differences	2,813	(752)
Ending balance	50,543	47,890	48,421
Buildings [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	47,890
Ending balance		47,890
Buildings [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(33,730)	(33,082)
Depreciation charge for the year	(1,044)	(1,164)
Disposals		6
Transfer	265
Exchange differences	(2,361)	510
Ending balance	(36,870)	(33,730)	(33,082)
Buildings [Member] | Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(33,730)
Ending balance		(33,730)
Building improvement [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	2,148	2,368
Ending balance	2,566	2,148	2,368
Building improvement [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	5,715	5,622
Additions	119	76
Disposals	(4)
Transfer	746	3
Exchange differences	454	14
Ending balance	7,030	5,715	5,622
Building improvement [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	5,715
Ending balance		5,715
Building improvement [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(3,567)	(3,254)
Depreciation charge for the year	(338)	(296)
Impairment of property, plant and equipment	(1)
Disposals	4	0
Transfer	(265)
Exchange differences	(297)	(17)
Ending balance	(4,464)	(3,567)	(3,254)
Building improvement [Member] | Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(3,567)
Ending balance		(3,567)
Machinery and equipment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	13,770	14,474
Ending balance	13,737	13,770	14,474
Machinery and equipment [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	96,718	96,964
Additions	292	480
Disposals	(2,308)	(1,120)
Transfer	1,748	1,418
Exchange differences	7,419	(1,024)
Ending balance	103,869	96,718	96,964
Machinery and equipment [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	96,718
Ending balance		96,718
Machinery and equipment [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(82,948)	(82,490)
Depreciation charge for the year	(2,391)	(2,435)
Impairment of property, plant and equipment	(550)	(10)
Disposals	2,274	1,119
Transfer		(46)
Exchange differences	(6,517)	914
Ending balance	(90,132)	(82,948)	(82,490)
Machinery and equipment [Member] | Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(82,948)
Ending balance		(82,948)
Motor vehicle and other asset and assets under finance lease [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	2,298	1,800
Ending balance	2,347	2,298	1,800
Motor vehicle and other asset and assets under finance lease [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	5,780	5,230
Additions	433	624
Disposals	(524)	(503)
Transfer	180	505
Exchange differences	332	(76)
Ending balance	6,009	5,780	5,230
Motor vehicle and other asset and assets under finance lease [Member] | Gross carrying amount [Member] | Effects on initial application of IFRS 16 [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Effects on initial application of IFRS 16		(192)
Motor vehicle and other asset and assets under finance lease [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	5,588
Ending balance		5,588
Motor vehicle and other asset and assets under finance lease [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(3,482)	(3,430)
Depreciation charge for the year	(541)	(604)
Impairment of property, plant and equipment	7
Disposals	477	503
Transfer	(64)
Exchange differences	(185)	49
Ending balance	(3,662)	(3,482)	(3,430)
Motor vehicle and other asset and assets under finance lease [Member] | Accumulated depreciation [Member] | Effects on initial application of IFRS 16 [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Effects on initial application of IFRS 16		126
Motor vehicle and other asset and assets under finance lease [Member] | Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(3,356)
Ending balance		(3,356)
Office equipment [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	1,163	1,071
Ending balance	1,208	1,163	1,071
Office equipment [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	6,722	6,959
Additions	315	395
Disposals	(331)	(490)
Transfer	139	102
Exchange differences	247	(244)
Ending balance	7,092	6,722	6,959
Office equipment [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	6,722
Ending balance		6,722
Office equipment [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(5,559)	(5,888)
Depreciation charge for the year	(420)	(402)
Impairment of property, plant and equipment	(2)	(1)
Disposals	329	486
Transfer		46
Exchange differences	(232)	200
Ending balance	(5,884)	(5,559)	(5,888)
Office equipment [Member] | Accumulated depreciation [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	(5,559)
Ending balance		(5,559)
Construction in progress [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	1,673	1,047
Ending balance	1,378	1,673	1,047
Construction in progress [Member] | Gross carrying amount [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	1,673	1,047
Additions	2,240	2,694
Transfer	(2,582)	(2,028)
Exchange differences	47	(40)
Ending balance	1,378	1,673	$ 1,047
Construction in progress [Member] | Gross carrying amount [Member] | Adjusted Balance [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Beginning balance	$ 1,673
Ending balance		$ 1,673

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Subsequent Event

12 Months Ended

Dec. 31, 2019

Disclosure Of Nonadjusting Events After Reporting Period [Abstract]

Subsequent Event

29. SUBSEQUENT EVENT

29(a) CTW dividend payments

On March 20, 2020, the Board of Directors of Charoong Thai declared a cash dividend distribution to its shareholders amounted to $2.9 million (Baht 79.6 million, equivalent to Baht 0.2 per share), $ 1.4 million of which will be distributed to non-controlling interest. The dividend will be paid on May 15, 2020. This dividend distribution plan requires the approval of the 2019 Annual General Meeting of Shareholders of Charoong Thai.

29(b) COVID-19 Could Have a Material Adverse Effect on Our Business, Financial Condition and Results of Operations

The recent outbreak in China of the Coronavirus Disease 2019 (“COVID-19”), which has been declared by the World Health Organization to be a “public health emergency of international concern,” has spread across the globe and is impacting worldwide economic activity and financial markets.  Our manufacturing and production have been affected by the outbreak of COVID-19. COVID-19 has disrupted our operations and the operations of our suppliers, customers, and other business partners and may continue to do so for an indefinite period of time, including as a result of travel restrictions and/or business shutdowns. A slowdown in economic activity as a result of COVID-19 can be expected to result in a reduction in demand for our products. The outbreak of COVID-19 has also resulted in a decline in the price of copper, which has had the effect of reducing the market value of our inventory of copper.

Due to the measures instituted in China in response to COVID-19, our China production facilities have been  operating below normal production levels and our production levels have not yet fully recovered to normal levels. We do not know when our production levels will recover to normal levels.

In addition, the Singapore Government has ordered most business to close from April 7, 2020 until June 1, 2020.  We have been permitted to continue to operate during this period with reduced on site staff. Since April 7, 2020, approximately half of the employees of our Singapore operations have been working from home while the remaining employees have continued to work on site. We do not know if the Singapore Government will extend (or otherwise alter the terms of) its order requiring most business to close or whether our employees who continue to work on site will continue to be permitted to do so.

This is a rapidly evolving situation and the impact of COVID-19 on the global economy and our business is uncertain at this time. While it is not possible at this time to estimate the impact that COVID-19 could have on worldwide economic activity and our business, the continued spread of COVID-19 and the measures taken by  governments, businesses and other organizations in response to COVID-19 are expected to reduce our revenues and could have a material adverse impact our business, financial condition and results of operations.

29(c) Continued Listing Standards Letter from Nasdaq

On November 21, 2019, the Company received written notification (the "Market Value Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it was not in compliance with the $5 million minimum market value of publicly held shares requirement set forth in the Nasdaq rules for listing on the Nasdaq Global Market tier. In accordance with the Nasdaq Listing Rules, the Company was provided 180 calendar days, or until May 19, 2020 (the "Compliance Period"), to regain compliance. On April 16, 2020, Nasdaq announced that, as of April 16, 2020, Nasdaq was tolling the compliance periods for bid price and market value of publicly held shares (“MVPHS”) requirements (collectively, the “Price-based Requirements”) for all listed companies through June 30, 2020.  As a result, companies presently in compliance periods for any Price-based Requirements will remain at that same stage of the process through June 30, 2020 and, commencing on July 1, 2020, companies will receive the balance of any pending compliance period in effect at the start of the tolling period to regain compliance. Accordingly, since the Company had 33 calendar days remaining in its MVPHS compliance period as of April 16, 2020, it will, upon reinstatement of the Price-based Requirements, still have 33 calendar days from July 1, 2020, or until August 3, 2020, to regain compliance. Nasdaq has informed us that the Company can regain compliance, either during the suspension or during the compliance period resuming after the suspension, by evidencing compliance with the Price-based Requirements for a minimum of 10 consecutive trading days. For the Company to regain compliance, the market value of our publicly held shares has to equal or exceed $5 million for a minimum of 10 consecutive business days. On April 22, 2020, the minimum market value of our publicly held Common Shares was $3,592,234.  If the Company does not regain compliance by August 3, 2020, Nasdaq has informed us that Nasdaq will delist the Company's common shares from Nasdaq unless the Company requests a hearing before the Nasdaq Hearings Panel or unless the Company transfers its listing of the Common Shares to the Capital Market tier, which transfer would require that the Company then meet the criteria for transfer to the Capital Market tier. The Company will closely watch the stock price trend to see whether to take actions to meet MVPHS requirements.

Other than the above events, the Company is not aware of any matter or circumstance that has significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company.

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Right of Use Assets - Summary of Lease Expenses Recognized in Consolidated Income Statements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about Right-of-use assets [Line Items]
Depreciation charge of right of use assets	$ 507
Interest expenses (included in finance cost)	91	$ 4	$ 4
Expenses relating to short-term leases	159
Expenses relating to lease of low-value assets that are not short-term leases	15
Land [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Depreciation charge of right of use assets	211
Buildings [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Depreciation charge of right of use assets	233
Motor vehicle and other asset [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Depreciation charge of right of use assets	38
Office equipment [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Depreciation charge of right of use assets	$ 25

XML

Financial Assets and Financial Liabilities - Comparison of Carrying Amounts and Fair Value of Financial Instruments (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Aug. 13, 2014
Financial assets-current
Cash and cash equivalents	$ 53,673,000	$ 60,778,000		$ 46,093,000	$ 48,231,000
Trade receivables	74,077,000	79,617,000	$ 112,419,000	$ 112,403,000
Other receivables	6,868,000	12,422,000
Due from related parties	11,566,000	12,061,000
Financial assets-non-current
Financial assets at fair value through other comprehensive income	4,062,000	2,332,000	$ 2,747,000
Long-term bank deposits	1,246,000	887,000
Total	151,492,000	168,097,000
Financial liabilities-current
Interest-bearing loans and borrowings	11,356,000	24,814,000
Trade and other payables	16,879,000	21,127,000
Due to related parties	3,284,000	2,997,000
Financial liabilities at fair value through profit or loss	3,000	142,000
Financial lease liabilities	574,000	44,000
Financial liabilities-non-current
Financial liabilities-non-current	2,254,000	46,000
Total	34,350,000	49,170,000				$ 0
Fair value [Member]
Financial assets-current
Cash and cash equivalents	53,673,000	60,778,000
Trade receivables	74,077,000	79,617,000
Other receivables	6,868,000	12,422,000
Due from related parties	11,566,000	12,061,000
Financial assets-non-current
Financial assets at fair value through other comprehensive income	4,062,000	2,332,000
Long-term bank deposits	1,246,000	887,000
Total	151,492,000	168,097,000
Financial liabilities-current
Interest-bearing loans and borrowings	11,356,000	24,814,000
Trade and other payables	16,879,000	21,127,000
Due to related parties	3,284,000	2,997,000
Financial liabilities at fair value through profit or loss	3,000	142,000
Financial lease liabilities	574,000	44,000
Financial liabilities-non-current
Financial liabilities-non-current	2,254,000	46,000
Total	$ 34,350,000	$ 49,170,000

XML

Trade and Other Receivables - Movement in the Loss Allowance on Trade Receivables (Detail) - Trade receivables [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of financial assets [Line Items]
Beginning balance	$ 1,657	$ 3,456
Charge for the year	72	726
Write-off	(1)	(2,292)
Unused amounts reversed	(194)	(156)
Currency translation adjustment	19	(74)
Reclassification	(3)	(3)
Ending balance	$ 1,550	$ 1,657

XML

Trade and Other Payables - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Trade And Other Payables [Line Items]
Liabilities arising from contracts with customers	$ 216	$ 756
Refund Liabilities [Member]
Trade And Other Payables [Line Items]
Liabilities arising from contracts with customers	$ 4,393	$ 3,831

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities:
Profit before tax	$ 1,106	$ 11,332	$ 18,668
Adjustments to reconcile profit before tax to net cash provided by operating activities:
Depreciation	5,274	4,936	4,972
Impairment of property, plant and equipment	546	11	223
Amortization of prepaid land lease payments		38	35
Amortization of intangible assets	50	44	49
Gain on disposal of property, plant and equipment	(88)	(93)	(99)
Gain on disposal of assets classified as held for sale			(4,525)
Adjustment for loss (gain) on fair value of derivatives	(146)	2	332
Dividend income	(109)	(105)	(100)
Finance income	(506)	(482)	(876)
Finance costs	1,012	1,378	1,221
Share of loss of associates	3	3	3
Impairment (reversal of impairment) for trade receivables	(122)	570	302
Impairment for trade receivables for related parties		1	27
Impairment of other receivable	30	53
Impairment (write-back of impairment) of inventories	(322)	1,613	532
Unrealized foreign exchange difference, net	(503)	(742)	(1,771)
Loss on liquidation of subsidiary			261
Changes in operating assets and liabilities
Trade and other receivable, net	16,031	27,993	(17,438)
Contract assets	(3,160)	(1,317)
Inventories	3,166	10,339	(11,523)
Prepayment and other current assets	484	133	123
Amounts due to/from related parties	1,177	(1,422)	2,733
Other non-current assets	(238)	(55)	77
Trade and other payables, accruals, other current liabilities and other non-current liabilities	(5,527)	(8,518)	(6,778)
Net cash flows (used in) provided by operating activities	18,158	45,712	(13,552)
Dividend received	109	105	100
Interest received	457	405	858
Interest paid	(894)	(1,216)	(1,043)
Income tax paid	(2,690)	(4,357)	(2,787)
Net cash provided (used in) by operating activities	15,140	40,649	(16,424)
Investing activities:
Purchases of property, plant and equipment	(5,442)	(4,441)	(4,903)
Purchases of intangible assets	(20)	(67)	(10)
Purchases of investment properties			(84)
Purchases of long-term bank deposits	(272)	(410)	(475)
Purchases of short-term bank deposits	(835)
Proceeds from disposal of held for sale assets			8,011
Proceeds from disposal of property, plant and equipment	171	100	510
Proceeds from disposal of other financial assets-held to maturity			340
Net cash (used in) provided by investing activities	(6,398)	(4,818)	3,389
Financing activities:
Dividend paid to non-controlling shareholders of subsidiaries	(2,763)	(2,206)	(1,943)
Dividend paid to company's shareholders		(1,106)	(1,382)
Repayments of borrowings	(19,811)	(25,737)	(17,306)
Proceeds from borrowings	5,349	9,517	27,714
Change in financial lease liabilities		(46)	(41)
Principal elements of lease payments	(426)
Effect from the changes in shareholding percentage in subsidiary	(298)
Net cash (used in) provided by financing activities	(17,949)	(19,578)	7,042
Effect of exchange rate	2,102	(1,568)	3,855
Net (decrease) increase in cash and cash equivalents	(7,105)	14,685	(2,138)
Cash and cash equivalents at beginning of year	60,778	46,093	48,231
Cash and cash equivalents at end of year	$ 53,673	$ 60,778	$ 46,093

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Comprehensive Income [Abstract]
Profit /(loss) for the year	$ (951)	$ 7,446	$ 13,528
Other comprehensive income /(loss) to be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations, net of tax of $0	10,677	(4,388)	15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary			248
Exchange differences, total	10,677	(4,388)	16,130
Net gain/(loss) on available-for-sale financial assets			(80)
Income tax effect			16
Other comprehensive income from available-for-sale financial assets, net of tax			(64)
Other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods:
Changes in the fair value of equity instruments measured at fair value through other comprehensive income	1,670	(419)
Income tax effect	(334)	84
Other comprehensive income from equity instruments measured at fair value, net of tax	1,336	(335)
Re-measuring loss on defined benefit plans	(1,727)	(410)	(772)
Income tax effect	345	82	154
Defined benefit pension plan, net of tax	(1,382)	(328)	(618)
Other comprehensive income/(loss) for the year, net of tax	10,631	(5,051)	15,448
Total comprehensive income for the year, net of tax	9,680	2,395	28,976
Attributable to:
Equity holders of the parent	3,786	(2,038)	18,992
Non-controlling interests	5,894	4,433	9,984
Total comprehensive income for the year, net of tax	$ 9,680	$ 2,395	$ 28,976

XML

Trade and Other Payables

12 Months Ended

Dec. 31, 2019

Trade And Other Current Payables [Abstract]

Trade and Other Payables

20. TRADE AND OTHER PAYABLES

	As of December 31,
	2019		2018
	US$’000		US$’000
Trade payables		10,509		15,941
Other payables		6,370		5,186
		16,879		21,127

Other payables included refund liabilities arising from contracts with customers, which amounted to $4,393 and $3,831 as of December 31, 2019 and 2018, respectively.

XML

Investments in Associates - Associates of the Company (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Shandong Pacific Rubber Cable Co., Ltd. [Member]
Disclosure of associates [line items]
Company Name	Shandong Pacific Rubber Cable Co., Ltd. (SPRC)
Nature of business	Manufacturing of rubber cable
Country of incorporation	PRC
Percentage of equity interest	25.00%	25.00%
Siam Pacific Holding Company Limited [Member]
Disclosure of associates [line items]
Company Name	Siam Pacific Holding Company Limited (SPHC)
Nature of business	Investment & holding company
Country of incorporation	Thailand
Percentage of equity interest	49.00%	49.00%	49.00%
Loxpac (Thailand) Company Limited [Member]
Disclosure of associates [line items]
Company Name	Loxpac (Thailand) Company Limited (Loxpac) (Formerlyknown as Loxley Pacific Co., Ltd.)
Nature of business	Providing telecommunication service
Country of incorporation	Thailand
Percentage of equity interest	21.39%	21.39%
Loxpac Hong Kong Co., Limited [Member]
Disclosure of associates [line items]
Company Name	Loxpac Hong Kong Co., Limited (Loxpac HK) (Formerlyknown as Loxley Pacific Hong Kong Co., Limited )
Nature of business	Investment & holding company
Country of incorporation	Hong Kong
Percentage of equity interest	23.10%	23.10%

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Investment Properties - Reconciliation of Net Book Value of Investment Properties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reconciliation Of Changes In Investment Property [Abstract]
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

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Right of Use Assets

12 Months Ended

Dec. 31, 2019

Disclosure Of Quantitative Information About Rightofuse Assets [Abstract]

Right of Use Assets

16. RIGHT-OF-USE ASSETS

16(a)Amounts recognized in the consolidated balance sheets

	As of December 31,
	2019
Right-of-use assets	US$’000
Land		3,029
Buildings		546
Motor vehicle and  other  asset		58
Office  equipment		102
		3,735

The Company leases various assets including land, buildings, business vehicles and multifunction printers. Rental contracts are typically made for periods of 1 to 36 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

Additions to the right-of-use assets during the 2019 financial year were $473.

16(b)Amounts recognized in the consolidated income statements

	2019
Depreciation charge of right-of-use assets	US$’000
Land		211
Buildings		233
Motor vehicle and  other  asset		38
Office  equipment		25
		507
Interest expenses (included in finance cost)		91
Expenses relating to short-term leases		159
Expenses relating to lease of low-value assets that are not short-term leases		15

The total cash outflow for lease in 2019 was $691.

16. RIGHT-OF-USE ASSETS (continued)

16(c)Prepaid land lease payments

	2018
	US$’000
Carrying amount as of January 1,		1,103
Recognized lease expense during the year		(38	)
Exchange difference		(53	)
Carrying amount as of December 31,		1,012
Current portion included in prepayments		34
Non-current portion included in prepaid land lease    payments		978

The property land is situated in Mainland China and is held under a long-term operating lease for 50 years.

Information about the prepaid land lease payments that were pledged to others as collaterals is provided in Note 27(e)(i).

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Other Current Liability - Summary of Contract Liability (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
Current contract liabilities
Total current contract liabilities	$ 216	$ 756	$ 113
Advance from customers
Current contract liabilities
Total current contract liabilities	93	668
Custodial service
Current contract liabilities
Total current contract liabilities	63	71
Transportation Service
Current contract liabilities
Total current contract liabilities	$ 60	$ 17

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Operating Segments [Abstract]

Summary of Segment Information

Inter-segment revenues are eliminated upon consolidation and reflected in the “adjustments and eliminations” column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

5(b)Information about reportable segments

Year ended December 31, 2019	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		76,575			172,379			89,206			338,160			—			338,160
Inter-segment		—			6			—			6			(6	)		—
Segment operating profit/(loss)		1,237			3,042			(1,659	)		2,620			(2,884	)		(264	)
Depreciation and amortization		(811	)		(2,842	)		(1,613	)		(5,266	)		(58	)		(5,324	)
Depreciation from right of use assets		(44	)		—			(441	)		(485	)		(22	)		(507	)
Impairment of property, plant and equipment		(549	)		3			—			(546	)		—			(546	)
Interest income		57			403			45			505			1			506
Interest expense		(239	)		(481	)		(102	)		(822	)		(23	)		(845	)
Income tax (expense)/benefit		(561	)		(1,235	)		105			(1,691	)		(366	)		(2,057	)
Other disclosures
Capital expenditure		552			4,590			242			5,384			78			5,462

5. SEGMENT INFORMATION (continued)

5(b)Information about reportable segments (continued)

Year ended December 31, 2018	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		103,647			213,424			108,869			425,940			—			425,940
Inter-segment		4,076			392			6,308			10,776			(10,776	)		—
Segment operating profit/(loss)		5,234			9,539			(2,306	)		12,467			(3,143	)		9,324
Depreciation and amortization		(829	)		(2,836	)		(1,333	)		(4,998	)		(20	)		(5,018	)
Impairment of property, plant and equipment		—			(11	)		—			(11	)		—			(11	)
Interest income		117			611			42			770			(288	)		482
Interest expense		(397	)		(748	)		(34	)		(1,179	)		(21	)		(1,200	)
Income tax (expense)/benefit		(1,212	)		(2,152	)		384			(2,980	)		(906	)		(3,886	)
Other disclosures
Capital expenditure		1,188			2,859			451			4,498			10			4,508

Year ended December 31, 2017	North Asia			Thailand			ROW			Total segments			Corporate expense adjustments and eliminations			Consolidated
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Revenues
External customers		101,533			206,485			117,197			425,215		—				425,215
Inter-segment		890			1,044		—				1,934			(1,934	)		—
Segment operating profit/(loss)		3,256			11,053			1,205			15,514			(3,074	)		12,440
Depreciation and amortization		(979	)		(2,760	)		(1,314	)		(5,053	)		(3	)		(5,056	)
Impairment of property, plant and equipment		(213	)		(10	)	—				(223	)	—				(223	)
Interest income		51			845			61			957			(81	)		876
Interest expense		(428	)		(553	)		(52	)		(1,033	)		67			(966	)
Income tax (expense)/benefit		(1,395	)		(2,727	)		(342	)		(4,464	)		(676	)		(5,140	)
Other disclosures
Capital expenditure		991			3,332			590			4,913			—			4,913

5(d)Segment assets and liabilities

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Total assets		49,379		165,579		76,618		291,576		7,335		298,911
Total liabilities		14,212		26,706		21,834		62,752		7,724		70,476
As of December 31, 2018
Total assets		54,250		173,398		70,574		298,222		7,576		305,798
Total liabilities		20,169		42,887		14,015		77,071		6,911		83,982

Reconciliation of Segment Operating Profit (Loss)

5(c)Reconciliation of segment operating profit (loss)

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Segment operating profit		2,620			12,467			15,514
Corporate expenses adjustments and eliminations		(2,884	)		(3,143	)		(3,074	)
		(264	)		9,324			12,440
Other operating income		385			805			5,084
Other operating expenses		(770	)		(1,445	)		(909	)
Operating profit		(649	)		8,684			16,615
Finance costs		(1,012	)		(1,378	)		(1,221	)
Finance income		506			482			876
Share of loss of associates		(3	)		(3	)		(3	)
Loss on liquidation of subsidiary		—			—			(261	)
Exchange gain		1,550			1,741			2,784
Other income		717			1,817			214
Other expense		(3	)		(11	)		(336	)
Profit before tax		1,106			11,332			18,668

Reconciliation of Assets and Liabilities

Reconciliation of assets:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating assets		291,576			298,222
Corporate and other assets		2,466			2,869
Investment in associates		935			864
Deferred tax assets		3,939			3,919
Inter-segment elimination		(5	)		(76	)
Total assets		298,911			305,798

Reconciliation of liabilities:

	As of December 31,
	2019			2018
	US$’000			US$’000
Segment operating liabilities		62,752			77,071
Corporate liabilities		3,591			3,019
Deferred tax liabilities		4,139			3,925
Inter-segment elimination		(6	)		(33	)
Total liabilities		70,476			83,982

Summary of Application of IFRS 16 Increased the Segment Assets and Liabilities

5(d-1)The application of IFRS 16 increased the segment assets and liabilities as below:

									Corporate
									adjustments
	North Asia		Thailand		ROW		Total segments		and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
As of December 31, 2019
Assets		—		—		2,506		2,506		192		2,698
Liabilities		—		—		2,552		2,552		205		2,757

Revenue From External Customers Based Major Categories

Revenue from external customers is summarized as the following major categories:

Year ended December 31, 2019	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		49,493		78,686		128,179		—		128,179
Enamel		76,575		102,997		—		179,572		—		179,572
Others*		—		19,889		10,520		30,409		—		30,409
		76,575		172,379		89,206		338,160		—		338,160
Timing of revenue recognition
At a point in time		76,575		172,031		82,584		331,190		—		331,190
Over time		—		348		6,622		6,970		—		6,970
		76,575		172,379		89,206		338,160		—		338,160
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

5. SEGMENT INFORMATION (continued)

5(e)Disaggregated revenues and geographical information (continued)

Year ended December 31, 2018	North Asia		Thailand		ROW		Total segments		Corporate expense adjustments and eliminations		Consolidated
	US$’000		US$’000		US$’000		US$’000		US$’000		US$’000
Revenue from external customers
Power		—		64,771		92,130		156,901		—		156,901
Enamel		103,647		114,247		—		217,894		—		217,894
Others*		—		34,406		16,739		51,145		—		51,145
		103,647		213,424		108,869		425,940		—		425,940
Timing of revenue recognition
At a point in time		103,647		213,212		92,133		408,992		—		408,992
Over time		—		212		16,736		16,948		—		16,948
		103,647		213,424		108,869		425,940		—		425,940
* includes revenues from SDI service contracts, fabrication service contracts, and sale of other wires and cables products.

	Year ended December 31,
	2017
	US$’000
Manufactured Products		361,853
Distributed Products		41,985
SDI		21,377
Total Revenue		425,215

Revenue From External Customers and Non-Current Assets Broken Down by Country of Domicile

Revenue from external customers is attributed to individual countries based on the customer’s country of domicile and is summarized as follows:

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Revenues from external customers
Thailand		116,160		154,207		158,565
Singapore		46,218		63,781		76,453
Australia		34,447		37,594		34,901
China		81,813		111,917		108,561
India		36,121		45,008		31,291
Southeast Asia		23,390		13,339		15,394
Northeast Asia		11		94		50
		338,160		425,940		425,215

The total non-current assets other than financial instruments and deferred tax assets broken down by the country of domicile are summarized as follow:

	As of December 31,
	2019		2018
	US$’000		US$’000
Non-current assets by country:
Thailand		32,723		28,407
Singapore		7,869		5,868
China		5,661		6,592
Australia		2,661		2,684
Other		290		54
Total non-current assets		49,204		43,605

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(Loss) Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Attributable to Common Shareholders Per Share

The following table sets forth the computation of basic and diluted earnings attributable to common shareholders per share:

	For the year ended December 31,
	2019			2018		2017
	US$’000			US$’000		US$’000
	(except for number of shares and earnings per share)
Numerator:
Net (loss) profit attributable to APWC from continuing operations		(1,632	)		2,928		8,720
Net (loss) profit attributable to APWC		(1,632	)		2,928		8,720
Denominator:
Weighted-average common shares    outstanding – basic and diluted		13,819,669			13,819,669		13,819,669
(Loss) earnings per share – basic and diluted
Continuing operations		(0.12	)		0.21		0.63
Total (loss) earnings per share – basic and diluted		(0.12	)		0.21		0.63

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Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Classes Of Share Capital [Line Items]
Dividend per share distributed to owners		$ 0.08	$ 0.1
Dividends distributed	$ 0	$ 1,106	$ 1,382
Bottom of range [Member]
Disclosure Of Classes Of Share Capital [Line Items]
Intended percentage of net post-tax audited consolidated profits attributable to shareholders to pay for cash dividends	25.00%

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Related Party Transactions - Compensation of Key Management Personnel (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Amounts Incurred By Entity For Provision Of Key Management Personnel Services Provided By Separate Management Entities [Abstract]
Short-term employee benefits	$ 3,073	$ 3,814	$ 3,900
Post-employment benefits	179	102	103
Termination benefits		47	43
Total compensation paid to key management personnel	$ 3,252	$ 3,963	$ 4,046

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Income and Expenses Items - Summary of Employee Benefits Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Other Operating Income Expense [Line Items]
Total employee benefits expenses	$ 30,137	$ 30,793	$ 30,072
Included in cost of sales [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Wages and salaries	14,429	13,674	13,474
Labor and health insurance costs	126	162	168
Pension costs	994	890	869
Other employment benefits	816	892	817
Included in selling expenses [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Wages and salaries	3,495	3,685	3,641
Labor and health insurance costs	12	14	14
Pension costs	330	324	325
Other employment benefits	50	68	64
Included in general and administrative expenses [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Wages and salaries	8,117	8,818	8,364
Labor and health insurance costs	85	224	219
Pension costs	757	671	656
Director fees	640	1,046	1,119
Other employment benefits	$ 286	$ 325	$ 342

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Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Cash Flow Information [Abstract]

Summary of Investing Activities with Partial Cash Payments

28(a) Investing activities with partial cash payments

	For the year end December 31,
	2019			2018
	US$’000			US$’000
Acquisition of property, plant and equipment		3,406			4,498
Add: Payable for PPE or CIP - Opening		213			311
Less: Payable for PPE or CIP - Ending		(355	)		(213	)
Less: Prepayment for PPE & CIP - Opening		(210	)		(304	)
Add: Prepayment for PPE & CIP - Ending		2,388			210
Less: acquisition by means of a lease		—			(61	)
Cash paid during the year		5,442			4,441

Summary of Reconciliation of Liabilities Arising from Financing Activities

28(b) Reconciliation of liabilities arising from financing activities

	Interest -bearing loans and borrowings			Financial lease liabilities			Total
	US$’000			US$’000			US$’000
Balance at January 1, 2017		41,151			78			41,229
Changes in cash flows		-16,220			(46	)		(16,266	)
Foreign exchange adjustments		(117	)		(8	)		(125	)
Acquisition of PP&E by means of a lease		—			61			61
Other changes		—			5			5
Balance at December 31, 2018		24,814			90			24,904
Recognized on adoption of IFRS 16		—			2,651			2,651
Changes in cash flows		(14,462	)		(426	)		(14,888	)
Foreign exchange adjustments		1,004			29			1,033
Acquisition leases		—			476			476
Other changes		—			8			8
Balance at December 31, 2019		11,356			2,828			14,184

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Outstanding Balance and Transactions with Related Parties

The following table provided the total amount of outstanding balance at December 31, 2019 and 2018.

The transactions undertaken with related parties are summarized as follows:

		For the year ended December 31,
		2019		2018		2017
		US$’000		US$’000		US$’000
The ultimate parent company
PEWC	Purchases		2,745		521		18,170
	Sales		—		14		1,457
	Fabrication income received		140		412		208
	Management fee paid		199		136		143
	Information technology service fee paid		101		115		114
PEWC, Singapore Branch	Management fee received		14		14		14
PEWC Singapore Co. (Pte) Ltd.	Interest expenses paid		22		21		15
PEWC (HK)	Purchases		—		2,479		4,180
	Sales		17,831		23,498		24,437
	Service fee paid		218		231		—
The immediate holding company
Moon View	Income from discharge of liability*		—		1,537		—
Non-controlling shareholder of subsidiary
Italian Thai and its affiliates	Sales		4,188		6,814		6,203
	Construction of factory building expenses		215		—		—
Fujikura Limited	Purchases		249		750		1,115

Compensation of Key Management Personnel

24(d)Compensation of key management personnel of the Company

	For the years ended December, 31
	2019		2018		2017
	US$’000		US$’000		US$’000
Short-term employee benefits		3,073		3,814		3,900
Post-employment benefits		179		102		103
Termination benefits		—		47		43
Total compensation paid to key management    personnel		3,252		3,963		4,046

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Income and Expenses Items - Summary of Other Operating Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis Of Income And Expense [Abstract]
Allowance for trade receivables for related parties		$ 1	$ 27
Allowance for trade receivables		570	302
Allowance for other receivable	$ 30	53
Allowance for foreseeable loss	193		276
Impairment of property, plant and equipment	546	11	223
Other operating expenses – others	1	810	81
Total other operating expenses	$ 770	$ 1,445	$ 909

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Significant Accounting Policies [Line Items]
Bank overdrafts balance	$ 0	$ 0
Financial liabilities settlement period	60 days
Financial liabilities repayment term	Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
Unused net operating losses	$ 20,580	16,762
Net deferred tax assets	(200)	(6)	$ (132)	$ 526
Increase in unrecognized deferred tax assets, profit and equity	5,068	3,876	$ 3,947
Unused tax losses [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Net deferred tax assets	$ 546	$ 644
Bottom of range [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Estimated useful lives of investment property depreciated using the straight-line method	20 years
Bottom of range [Member] | Computer software [member]
Disclosure Of Significant Accounting Policies [Line Items]
Useful life of intangible assets	2 years
Top Of Range [Member]
Disclosure Of Significant Accounting Policies [Line Items]
Estimated useful lives of investment property depreciated using the straight-line method	30 years
Ownership percentage with voting right	20.00%
Top Of Range [Member] | Computer software [member]
Disclosure Of Significant Accounting Policies [Line Items]
Useful life of intangible assets	10 years

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Income Tax - Reconciliation of Statutory Tax Rate and Effective Tax Rate (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Abstract]
Tax at statutory rate	20.00%	20.00%	20.00%

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Financial Assets and Financial Liabilities - Description of Significant Unobservable Inputs to Valuation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Liquidity discount	30.00%	30.00%
Other equity securities [Member]
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items]
Valuation technique	Market Approach Method
Significant unobservable inputs	Liquidity Discount
Liquidity discount	30.00%	30.00%
Sensitivity of the input to fair value	5% decrease in the discount would increase in fair value by $290	5% decrease in the discount would increase in fair value by $167
Increase in fair value due to a decrease in the liquidity discount	$ 290	$ 167

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Trade and Other Receivables - Aging Analysis of Trade Receivables (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure of financial assets [Line Items]
Expected loss rate	2.05%	2.04%
Gross carrying amount - trade receivables	$ 75,627	$ 81,274
Loss allowances	1,550	1,657
Trade receivable, net	$ 74,077	$ 79,617
Current [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	0.14%	0.07%
Gross carrying amount - trade receivables	$ 59,867	$ 67,318
Loss allowances	86	45
Trade receivable, net	$ 59,781	$ 67,273
Past due [Member] | Less than 30 days [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	0.76%	0.86%
Gross carrying amount - trade receivables	$ 9,979	$ 9,183
Loss allowances	76	79
Trade receivable, net	$ 9,903	$ 9,104
Past due [Member] | 31-60 days [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	3.75%	3.95%
Gross carrying amount - trade receivables	$ 3,759	$ 2,276
Loss allowances	141	90
Trade receivable, net	$ 3,618	$ 2,186
Past due [Member] | 61-90 days [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	9.52%	20.18%
Gross carrying amount - trade receivables	$ 294	$ 327
Loss allowances	28	66
Trade receivable, net	$ 266	$ 261
Past due [Member] | 91-120 days [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	23.89%	31.71%
Gross carrying amount - trade receivables	$ 180	$ 82
Loss allowances	43	26
Trade receivable, net	$ 137	$ 56
Past due [Member] | Greater than 120 days [Member]
Disclosure of financial assets [Line Items]
Expected loss rate	75.97%	64.70%
Gross carrying amount - trade receivables	$ 1,548	$ 2,088
Loss allowances	1,176	1,351
Trade receivable, net	$ 372	$ 737

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Investments in Associates

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Investments in Associates

19. INVESTMENTS IN ASSOCIATES

19(a)Associates of the Company

			Percentage of equity interest
			As of December 31
Company Name	Nature of business	Country of incorporation	2019	2018
Shandong Pacific Rubber Cable Co., Ltd. (“SPRC”)	Manufacturing of rubber cable	PRC	25.00%	25.00%
Siam Pacific Holding Company Limited (“SPHC”)	Investment & holding company	Thailand	49.00%	49.00%
Loxpac (Thailand) Company Limited (“Loxpac”) (Formerly known as “Loxley Pacific Co., Ltd.)	Providing telecommunication service	Thailand	21.39%	21.39%
Loxpac Hong Kong Co., Limited (“Loxpac HK”) (Formerly known as “Loxley Pacific Hong Kong Co., Limited” )	Investment & holding company	Hong Kong	23.10%	23.10%

19(b)Carrying amounts of investment in associates

	As of  December 31,
	2019			2018
	US$’000			US$’000
At January 1		864			861
Share of loss of associates		(3	)		(3	)
Exchange difference		74			6
At December 31		935			864

The investments in SPRC, Loxpac and Loxpac HK have been fully impaired.

19. INVESTMENTS IN ASSOCIATES

19(c)Summarized financial information for associates

The following table summarized financial information of the Company’s investments in associates:

	As of December 31,
	2019			2018
	US$’000			US$’000
Summarized financial information of SPHC:
Current assets		3			9
Non-current assets		2,103			1,938
Current liabilities		(3	)		(3	)
Non-current liabilities		(196	)		(181	)
Equity		1,907			1,763
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%
Carrying amount of the investment		935			864

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Summarized financial information of SPHC:
Revenue		—			—			—
Loss for the year		(6	)		(5	)		(5	)
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%			49%
Share of the associates’ profit for the year:		(3	)		(3	)		(3	)

As of December 31, 2019 and 2018, the Company's associates had no contingent liabilities or capital commitments.

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Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Intangible Assets [Line Items]
Beginning balance	$ 157
Ending balance	128	$ 157
Gross carrying amount [Member]
Disclosure Of Intangible Assets [Line Items]
Beginning balance	586	526
Addition	20	67
Exchange difference	15	(7)
Ending balance	621	586
Accumulated depreciation [Member]
Disclosure Of Intangible Assets [Line Items]
Beginning balance	(429)	(388)
Amortization	(50)	(44)
Exchange difference	(14)	3
Ending balance	$ (493)	$ (429)

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Investment Properties - Net Book Value of Investment Properties (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about investment property [Line Items]
Investment properties	$ 730	$ 720	$ 763
Gross carrying amount [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	1,183	1,125
Accumulated depreciation [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	(453)	(405)
Land [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	467	430
Land [Member] | Gross carrying amount [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	467	430
Office buildings for rent [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	263	290
Office buildings for rent [Member] | Gross carrying amount [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	716	695
Office buildings for rent [Member] | Accumulated depreciation [Member]
Disclosure of detailed information about investment property [Line Items]
Investment properties	$ (453)	$ (405)

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Disclosure Of Property Plant And Equipment [Abstract]

Property, Plant and Equipment

15. PROPERTY, PLANT AND EQUIPMENT

	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Cost
At January 1, 2018		6,227			48,421			5,622			96,964			5,230			6,959			1,047			170,470
Additions		—			229			76			480			624			395			2,694			4,498
Disposals		—			(8	)		—			(1,120	)		(503	)		(490	)		—			(2,121	)
Transfer		—			—			3			1,418			505			102			(2,028	)		—
Exchange differences		(21	)		(752	)		14			(1,024	)		(76	)		(244	)		(40	)		(2,143	)
At December 31, 2018		6,206			47,890			5,715			96,718			5,780			6,722			1,673			170,704
Effects on initial application of IFRS 16		—			—			—			—			(192	)		—			—			(192	)
Adjusted balance at January 1, 2019		6,206			47,890			5,715			96,718			5,588			6,722			1,673			170,512
Additions		—			7			119			292			433			315			2,240			3,406
Disposals		—			—			(4	)		(2,308	)		(524	)		(331	)		—			(3,167	)
Transfer		—			(167	)		746			1,748			180			139			(2,582	)		64
Exchange differences		632			2,813			454			7,419			332			247			47			11,944
At December 31, 2019		6,838			50,543			7,030			103,869			6,009			7,092			1,378			182,759
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Depreciation/Impairment
At January 1, 2018		—			(33,082	)		(3,254	)		(82,490	)		(3,430	)		(5,888	)		—			(128,144	)
Depreciation charge for the year		—			(1,164	)		(296	)		(2,435	)		(604	)		(402	)		—			(4,901	)
Impairment		—			—			—			(10	)		—			(1	)		—			(11	)
Depreciation on disposals		—			6			0			1,119			503			486			—			2,114
Transfer		—			—			—			(46	)		—			46			—			—
Exchange differences		—			510			(17	)		914			49			200			—			1,656
At December 31, 2018		—			(33,730	)		(3,567	)		(82,948	)		(3,482	)		(5,559	)		—			(129,286	)
Effects on initial application of IFRS 16		—			—			—			—			126			—			—			126
Adjusted balance at January 1, 2019		—			(33,730	)		(3,567	)		(82,948	)		(3,356	)		(5,559	)		—			(129,160	)
Depreciation charge for the year		—			(1,044	)		(338	)		(2,391	)		(541	)		(420	)		—			(4,734	)
Impairment		—			—			(1	)		(550	)		7			(2	)		—			(546	)
Depreciation on disposals		—			—			4			2,274			477			329			—			3,084
Transfer		—			265			(265	)		—			(64	)		—			—			(64	)
Exchange differences		—			(2,361	)		(297	)		(6,517	)		(185	)		(232	)		—			(9,592	)
At December 31, 2019		—			(36,870	)		(4,464	)		(90,132	)		(3,662	)		(5,884	)		—			(141,012	)
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Net book value
At December 31, 2019		6,838			13,673			2,566			13,737			2,347			1,208			1,378			41,747
At December 31, 2018		6,206			14,160			2,148			13,770			2,298			1,163			1,673			41,418
At January 1, 2018		6,227			15,339			2,368			14,474			1,800			1,071			1,047			42,326

15. PROPERTY, PLANT AND EQUIPMENT (continued)

15(a)Impairment of property, plant and equipment

In 2019, 2018 and 2017 the Company recorded an impairment loss of $546, $11 and $223 on property, plant and equipment at Shanghai Yayang, Ningbo Pacific and SFO facilities. The impairment is presented within other operating expenses in Note 7(b), and the impairment of property, plant and equipment of North Asia and Thailand segments in Note 5.

The Company performed a valuation for utilized machinery measured at fair value less costs to sell using a cost approach due to closure of the manufacturing facilities at Shanghai Yayang and Ningbo Pacific. Its fair value measurement was classified as Level 3 of the fair value hierarchy. After considering the relevant evidence, the key assumption used included replacement costs, residual value and remaining useful life of these existing assets. The impairment test revealed that the recoverable amount was lower than the carrying amount.

The Company considers the market demand for SFO’s products and performed an impairment test on the CGU composed of property, plant and equipment used in the manufacturing of fiber optic cables at SFO. The Company determined the recoverable amount of the CGU to be $0 based on the value in use. The key assumptions used in calculating the value in use included the revenue growth and a discount rate of 14.8%.  

15(b)Financial leases under property, plant and equipment

The carrying value of motor vehicles under financial leases as of December 31, 2019, 2018 and 2017 were $0, $66 and $50, respectively. These assets under financial lease are pledged for financial lease liabilities (Note 25(b)).

On January 1, 2019, the Company reclassified “Lease assets” from “Property, plant and equipment” to “right-of-use assets” upon adoption of IFRS 16.  See the Note 4.1.

15(c)Pledge

Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 27(e) (i).

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Trade and Other Payables - Summary of Trade and Other Payables (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Trade And Other Current Payables [Abstract]
Trade payables	$ 10,509	$ 15,941
Other payables	6,370	5,186
Total trade and other payables	$ 16,879	$ 21,127

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Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	IFRS 9 and IFRS 15 [Member]	Issued capital [Member]	Issued capital [Member] IFRS 9 and IFRS 15 [Member]	Additional paid-in capital [Member]	Additional paid-in capital [Member] IFRS 9 and IFRS 15 [Member]	Treasury shares [Member]	Treasury shares [Member] IFRS 9 and IFRS 15 [Member]	Retained earnings [Member]	Retained earnings [Member] IFRS 9 and IFRS 15 [Member]	Re-measurement of defined benefit plans [Member]	Re-measurement of defined benefit plans [Member] IFRS 9 and IFRS 15 [Member]	Available-for-sale reserve [Member]	Financial assets at FVOCI reserve [Member]	Financial assets at FVOCI reserve [Member] IFRS 9 and IFRS 15 [Member]	Foreign currency translation reserve [Member]	Foreign currency translation reserve [Member] IFRS 9 and IFRS 15 [Member]	Total attributable to the equity holders of the parent [Member]	Total attributable to the equity holders of the parent [Member] IFRS 9 and IFRS 15 [Member]	Non-controlling interests [Member]	Non-controlling interests [Member] IFRS 9 and IFRS 15 [Member]
Beginning balance at Dec. 31, 2016	$ 197,175		$ 138		$ 110,608		$ (38)		$ 46,012		$ (435)		$ 907			$ (21,242)		$ 135,950		$ 61,225
Profit /(loss) for the year	13,528								8,720									8,720		4,808
Other comprehensive income/(loss)	15,448										(315)		(33)			10,620		10,272		5,176
Total comprehensive income for the year, net of tax	28,976								8,720		(315)		(33)			10,620		18,992		9,984
Dividend paid	(3,325)								(1,382)									(1,382)		(1,943)
Effect from the changes in shareholding percentage in subsidiary					(232)													(232)		232
Ending balance at Dec. 31, 2017	222,826	$ 222,733	138	$ 138	110,376	$ 110,376	(38)	$ (38)	53,350	$ 53,194	(750)	$ (750)	874		$ 874	(10,622)	$ (10,622)	153,328	$ 153,172	69,498	$ 69,561
Reclassification on adoption of IFRS 9 and IFRS 15	(93)								(156)				$ (874)	$ 874				(156)		63
Profit /(loss) for the year	7,446								2,928									2,928		4,518
Other comprehensive income/(loss)	(5,051)										(167)			(170)		(4,629)		(4,966)		(85)
Total comprehensive income for the year, net of tax	2,395								2,928		(167)			(170)		(4,629)		(2,038)		4,433
Dividend paid	(3,312)								(1,106)									(1,106)		(2,206)
Ending balance at Dec. 31, 2018	221,816		138		110,376		(38)		55,016		(917)			704		(15,251)		150,028		71,788
Profit /(loss) for the year	(951)								(1,632)									(1,632)		681
Other comprehensive income/(loss)	10,631										(704)			680		5,442		5,418		5,213
Total comprehensive income for the year, net of tax	9,680								(1,632)		(704)			680		5,442		3,786		5,894
Dividend paid	(2,763)																			(2,763)
Effect from the changes in shareholding percentage in subsidiary	(298)				40													40		(338)
Ending balance at Dec. 31, 2019	$ 228,435		$ 138		$ 110,416		$ (38)		$ 53,384		$ (1,621)			$ 1,384		$ (9,809)		$ 153,854		$ 74,581

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Consolidated Income Statements - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 338,160	$ 425,940	$ 425,215
Cost of sales	(313,373)	(389,692)	(385,527)
Gross profit	24,787	36,248	39,688
Other operating income	385	805	5,084
Selling, general and administrative expenses	(25,051)	(26,924)	(27,248)
Other operating expenses	(770)	(1,445)	(909)
Operating (loss) /profit	(649)	8,684	16,615
Finance costs	(1,012)	(1,378)	(1,221)
Finance income	506	482	876
Share of loss of associates	(3)	(3)	(3)
Loss on liquidation of a subsidiary			(261)
Exchange gain	1,550	1,741	2,784
Other income	717	1,817	214
Other expense	(3)	(11)	(336)
Profit before tax	1,106	11,332	18,668
Income tax expense	(2,057)	(3,886)	(5,140)
(Loss) /Profit for the year	(951)	7,446	13,528
Attributable to:
Equity holders of the parent	(1,632)	2,928	8,720
Non-controlling interests	681	4,518	4,808
(Loss) /Profit for the year	$ (951)	$ 7,446	$ 13,528
(Loss) /earnings per share
Basic and diluted (loss)/profit for the year attributable to equity holders of the parent	$ (0.12)	$ 0.21	$ 0.63

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) t	Dec. 31, 2018 USD ($) t
Disclosure of finance lease and operating lease by lessee [Line Items]
Leased motor vehicle to secure finance lease liabilities, average discount interest rate		5.18%
Capital commitment relating to the construction of factory building improvement and acquisition of machinery	$ 5.8	$ 0.6
Corporate guarantee	38.5	36.9
Commitments in respect of management consulting services with related parties	0.3	$ 0.2
Bottom of range [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Non-cancellable operating lease arrangements terms		1 year
Commitments to purchase raw materials	$ 200.0	$ 136.0
Commitments to purchase raw materials, metric tons | t	20,996	22,450
Top of range [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Non-cancellable operating lease arrangements terms		30 years
Commitments to purchase raw materials	$ 290.0	$ 176.0
Commitments to purchase raw materials, metric tons | t	30,580	28,940
Contingent liability for guarantees | Top of range [Member]
Disclosure of finance lease and operating lease by lessee [Line Items]
Corporate guarantee	$ 24.7	$ 24.3
Charoong Thai Wire and Cable Public Company Limited [Member] | Contingent liability for guarantees
Disclosure of finance lease and operating lease by lessee [Line Items]
Corporate guarantee	$ 0.0	$ 2.0

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Other Current Liability - Summary of Revenue Recognized in Relation to Contract Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current contract liabilities
Revenue recognized that was included in the contract liabilities balance at the beginning of the year	$ 744	$ 113
Advance from customers
Current contract liabilities
Revenue recognized that was included in the contract liabilities balance at the beginning of the year	668
Transportation Service
Current contract liabilities
Revenue recognized that was included in the contract liabilities balance at the beginning of the year	17	28
Custodial service
Current contract liabilities
Revenue recognized that was included in the contract liabilities balance at the beginning of the year	$ 59	$ 85

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Material Partly-Owned Subsidiaries (Tables)

12 Months Ended

Dec. 31, 2019

Statements [Line Items]

Subsidiaries of the Company

The subsidiaries of the Company are set out below:

	Percentage of equity interest
Place of incorporation and operations	2019			2018
The British Virgin Islands
APWC General Holdings Limited		100	%		100	%
PRC (APWC) Holding Ltd.		100	%		100	%
Samray Inc.		100	%		100	%
Siam (APWC) Holdings Ltd.		100	%		100	%
Moon View Ltd.		100	%		100	%
Trigent Investment Holdings Limited		100	%		100	%
Crown Century Holdings Ltd.		100	%		100	%
Singapore
Sigma Cable Company (Private) Limited (“Sigma Cable”)		98.30	%		98.30	%
Epan Industries Pte Ltd.		98.30	%		98.30	%
Singvale Pte Ltd.		100	%		100	%
The People’s Republic of China (“PRC”)
Ningbo Pacific Cable Co., Ltd. (“Ningbo Pacific”)		97.93	%		97.93	%
Shanghai Yayang Electric Co., Ltd. (“SYE”)		68.75	%		68.75	%
Pacific Electric Wire & Cable (Shenzhen) Co., Ltd. (“PEWS”)		97.93	%		97.93	%
Hong Kong
Crown Century Holdings Limited (“CCH (HK)”)		97.93	%		97.93	%
Australia
Australia Pacific Electric Cable Pty Limited (“APEC”)		98.06	%		98.06	%
Thailand
Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai”) (i)		50.93	%		50.93	%
Siam Pacific Electric Wire & Cable Company Limited (“Siam Pacific”)		50.93	%		50.93	%
Double D Cable Company Limited (“Double D”)		50.93	%		50.93	%
Hard Lek Limited.		73.98	%		73.98	%
APWC (Thailand) Co., Ltd.		99.48	%		99.48	%
PEWC (Thailand) Co., Ltd.		99.48	%		99.48	%
CTW Beta Co., Ltd.		50.89	%		50.89	%
Siam Fiber Optics Co., Ltd. (“SFO”) (ii)		45.84	%		30.56	%
Taiwan
Asia Pacific New Energy Corporation Limited ("APNEC") (iii)		100.00	%		100.00	%
YASHIN Energy Corporation Limited ("YASHIN") (iii)		100.00	%		100.00	%
YADING Energy Corporation Limited ("YADING") (iii)		100.00	%		100.00	%

2. BASIS OF PREPARATION (continued)

2.2 Basis of consolidation (continued)

(i) Charoong Thai is listed on the Stock Exchange of Thailand and is engaged in the manufacturing of wire and cable products for the power and telecommunications industries in Thailand.

(ii) The directors have concluded that the Company controls SFO, even though it holds less than half of the voting rights of this subsidiary. This is because the Company is the largest shareholder with a 50.93% equity interest in Charoong Thai, which held a 90% and 60% equity interest of SFO as of December 31. 2019 and 2018, respectively.

On October 30, 2019, Charoong Thai acquired additional 30% interest in SFO for a total consideration of THB 9 million, thereby increasing the Company’s interest in SFO from 30.56% to 45.84%. The Company recorded the effect of change in shareholding of the subsidiaries, amounting to $40 under the caption of “Additional paid-in capital” in the consolidated statement of change in equity.  

(iii) On June 19, 2018, APWC’s Board of Directors approved to set up APNEC as the Company’s subsidiary with 100% held. APNEC registered its incorporation on October 26, 2018 with TWD 500 million registered capital and a paid-up capital of TWD 4 million.

Subsidiaries with material non-controlling interests [Member]

Statements [Line Items]

Subsidiaries of the Company

Proportion of equity interest held by NCI:

	Country of incorporation	As of December 31,
Name	and operation	2019	2018
Charoong Thai and its subsidiaries (“CTW Consolidated”)	Thailand	49.07%	49.07%
SYE	China	31.25%	31.25%

Summarized Financial Information of Subsidiaries

6(b)Summarized financial information about the subsidiaries

The summarized financial information of the subsidiaries is provided below. This information is based on amounts before inter-company eliminations:

Summarized income statements	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		172,385			213,424			207,529
Profit before tax		4,352			11,736			12,985
Income tax expense		(1,235	)		(2,150	)		(2,727	)
Profit for the year		3,117			9,586			10,258
Other comprehensive income		9,194			3,965			10,182
Total comprehensive income		12,311			13,551			20,440
Profit attributable to non-controlling interests		1,378			4,509			4,896
Dividends paid to non-controlling interests		2,763			2,181			1,943
Summarized income statements	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Revenue		20,743			33,790			33,533
Loss before tax		(2,272	)		(837	)		(161,011	)
Income tax expense		—			—			—
Loss for the year		(2,272	)		(837	)		(161,011	)
Other comprehensive income/(loss)		(46	)		(255	)		345
Total comprehensive loss		(2,318	)		(1,092	)		(160,666	)
Loss attributable to non-controlling interests		(710	)		(262	)		(15	)
Dividends paid to non-controlling interests		—			—			—

6. MATERIAL PARTLY-OWNED SUBSIDIARIES (continued)

Summarized balance sheets	CTW consolidated						SYE
	As of December 31,						As of December 31,
	2019			2018			2019			2018
	US$’000			US$’000			US$’000			US$’000
Current assets		127,539			141,761			9,038			11,293
Non-current assets		49,009			42,691			1,385			1,881
Current liabilities		(15,350	)		(33,715	)		(8,239	)		(8,671	)
Non-current liabilities		(11,358	)		(8,161	)		—			—
Total equity		149,840			142,576			2,184			4,503
Equity attributable to:
Equity holders of the parent		76,216			73,621			1,502			3,096
Non-controlling interests		73,624			68,955			682			1,407

Summarized cash flow information	CTW consolidated
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		10,776			38,784			(24,018	)
Investing		2,319			(9,137	)		6,589
Financing		(20,260	)		(12,585	)		12,836
Effect of changes in exchange rate on cash		2,376			(102	)		1,678
Net (decrease) increase in cash and cash equivalents		(4,789	)		16,960			(2,915	)
Summarized cash flow information	SYE
	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Operating		5,135			3,648			833
Investing		(165	)		(277	)		(252	)
Financing		(1,847	)		(4,005	)		(563	)
Effect of changes in exchange rate on cash		(28	)		(34	)		65
Net increase (decrease) in cash and cash equivalents		3,095			(668	)		83

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Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2019

Cash And Cash Equivalents [Abstract]

Summary of Cash and Cash Equivalents

	As of December 31,
	2019		2018
	US$’000		US$’000
Cash on hand and cash at banks		53,673		60,778

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Equity - Disaggregation of Changes of Other Comprehensive Income by Each Type of Reserve in Equity (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of analysis of other comprehensive income by item [Line Items]
Exchange difference on translation of foreign operations	$ 10,677	$ (4,388)	$ 15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary			248
Re-measuring losses on defined benefit plans	(1,382)	(328)	(618)
Net loss on available-for-sale financial assets			(64)
Changes in faire value of financial assets at fair value through other comprehensive income	1,336	(335)
Other comprehensive income/(loss) for the year, net of tax	10,631	(5,051)	15,448
Reserves including portion related to non-controlling interests [Member] | Re-measurement of defined benefit plans [Member]
Disclosure of analysis of other comprehensive income by item [Line Items]
Re-measuring losses on defined benefit plans	(1,382)	(328)	(618)
Other comprehensive income/(loss) for the year, net of tax	(1,382)	(328)	(618)
Reserves including portion related to non-controlling interests [Member] | Financial assets at FVOCI reserve [Member]
Disclosure of analysis of other comprehensive income by item [Line Items]
Reclassification of application of IFRS 9		1,717
Changes in faire value of financial assets at fair value through other comprehensive income	1,336	(335)
Other comprehensive income/(loss) for the year, net of tax	1,336	1,382
Reserves including portion related to non-controlling interests [Member] | Foreign currency translation reserve [Member]
Disclosure of analysis of other comprehensive income by item [Line Items]
Exchange difference on translation of foreign operations	10,677	(4,388)	15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary			248
Other comprehensive income/(loss) for the year, net of tax	$ 10,677	(4,388)	16,130
Reserves including portion related to non-controlling interests [Member] | Available-for-sale reserve [Member]
Disclosure of analysis of other comprehensive income by item [Line Items]
Reclassification of application of IFRS 9		(1,717)
Net loss on available-for-sale financial assets			(64)
Other comprehensive income/(loss) for the year, net of tax		$ (1,717)	$ (64)

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Basis of Preparation - Subsidiaries of the Company (Parenthetical) (Detail) $ in Thousands, ฿ in Millions, $ in Millions				12 Months Ended
	Oct. 30, 2019 USD ($)	Oct. 29, 2019	Jun. 19, 2018	Dec. 31, 2019 USD ($)	Dec. 31, 2018 TWD ($)	Dec. 31, 2017 USD ($)	Oct. 30, 2019 THB (฿)	Oct. 01, 2018 TWD ($)
Disclosure of subsidiaries [Line Items]
Effect from the changes in shareholding percentage in subsidiary				$ (298)
Additional paid-in capital [Member]
Disclosure of subsidiaries [Line Items]
Effect from the changes in shareholding percentage in subsidiary	$ 40			$ 40		$ (232)
YASHIN Energy Corporation Limited [Member] | Asia Pacific New Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Percentage of voting equity interests acquired					100.00%
Cash transferred					$ 0.5
YADING Energy Corporation Limited [Member] | Asia Pacific New Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Percentage of voting equity interests acquired					100.00%
Cash transferred					$ 0.5
Charoong Thai Wire and Cable Public Company Limited [Member]
Disclosure of subsidiaries [Line Items]
Percentage of equity interest				50.93%	50.93%
Charoong Thai Wire and Cable Public Company Limited [Member] | Siam Fiber Optics Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Percentage of equity interest	30.56%	45.84%
Percentage of voting equity interests acquired							30.00%
Total cash consideration | ฿							฿ 9
Siam Fiber Optics Co., Ltd. [Member]
Disclosure of subsidiaries [Line Items]
Percentage of equity interest				45.84%	30.56%
Percentage of equity interest held by subsidiary				90.00%	60.00%
Asia Pacific New Energy Corporation Limited [Member]
Disclosure of subsidiaries [Line Items]
Percentage of equity interest			100.00%	100.00%	100.00%
Authorized Share Capital								$ 500.0
Paid-up capital								$ 4.0

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Income Tax - Reconciliation of Statutory Tax Rate and Effective Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates [Abstract]
Profit before tax	$ 1,106	$ 11,332	$ 18,668
Tax at statutory rate of 20% (2018: 20%; 2017: 20%)	221	2,266	3,734
Foreign income taxed at different rate	499	697	1,151
Expenses not deductible for tax purpose	221	(33)	600
Utilization of previously unrecognized tax losses		(128)	(1,066)
Tax benefit arising from previously unrecognized tax losses		(298)	(137)
Net deferred tax asset not recognized	949	679	78
Written-off deferred tax	218	(4)	10
Tax exempt on income	(144)	(135)	(245)
Uncertain tax position	(454)	11	(270)
Return to provision adjustment	(16)	1	348
Deferred tax liability arising from undistributed earnings	215	578	602
Withholding tax on dividends	355	270	349
Others	(7)	(18)	(14)
Income tax expense reported in the income statement	$ 2,057	$ 3,886	$ 5,140

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Income and Expenses Items - Summary of Depreciation, Amortization and Lease Expense Included in Consolidated Income Statements (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Other Operating Income Expense [Line Items]
Depreciation – right-of-use assets	$ 507
Amortization - prepaid land lease payment		$ 38	$ 35
Depreciation - investment property	33	35
Depreciation, amortization and lease expense	5,498	5,418	5,465
Included in cost of sales [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Depreciation – tangible assets	4,089	4,162	4,148
Depreciation – right-of-use assets	135
Amortization – intangible assets	10	9	9
Operating lease expenses	3	16	15
Included in general and administrative expenses [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Depreciation – tangible assets	552	598	657
Depreciation – right-of-use assets	260
Amortization – intangible assets	39	34	40
Amortization - prepaid land lease payment		38	35
Depreciation - investment property	33	35	35
Operating lease expenses	170	200	201
Included in selling expenses [Member]
Disclosure Of Other Operating Income Expense [Line Items]
Depreciation – tangible assets	93	141	132
Depreciation – right-of-use assets	112
Amortization – intangible assets	1	1
Operating lease expenses	$ 1	$ 184	$ 193

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Financial Risk Management Objectives (Tables)

12 Months Ended

Dec. 31, 2019

Statements [Line Items]

Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payment Obligations

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payment obligations.

	< 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
	US$’000		US$’000		US$’000		US$’000		US$’000
As of  December 31, 2019
Financial liabilities
Interest-bearing loans and borrowings		11,484		—		—		—		11,484
Trade and other payables		16,879		—		—		—		16,879
Due to related parties		3,284		—		—		—		3,284
Financial liabilities at fair value through profit or loss		3		—		—		—		3
Lease liability		656		910		444		1,182		3,192
		32,306		910		444		1,182		34,842
As of December 31, 2018
Financial liabilities
Interest-bearing loans and borrowings		25,151		—		—		—		25,151
Trade and other payables		21,127		—		—		—		21,127
Due to related parties		2,997		—		—		—		2,997
Financial liabilities at fair value through profit or loss		142		—		—		—		142
Finance lease liability		47		36		11		—		94
		49,464		36		11		—		49,511

Summary of Capital Management

In line with industry practices, the Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

	As of December 31,
	2019			2018
	US$’000			US$’000
Interest bearing loans and borrowings		11,356			24,814
Trade and other payables		16,879			21,127
Less: cash and cash equivalents		(53,673	)		(60,778	)
Net debt		(25,438	)		(14,837	)
Total Equity		228,435			221,816
Capital and net debt		202,997			206,979
Gearing ratio	0.0%			0.0%

Foreign currency risk [Member]

Statements [Line Items]

Summary of Balance of Financial Assets and Liabilities Denominated in a Currency Different from the Company's Reporting Currency

The balance of financial assets and liabilities denominated in a currency different from the Company’s each functional currency are summarized below.

	Financial Assets				Financial Liabilities
	As of December 31,				As of December 31
	2019		2018		2019		2018
United States dollar (USD)		19,263		21,529		4,802		25,733
Thai Baht (THB)		346		349		87,779		30
Singapore dollar (SGD)		233		170		20		62
Taiwan dollar (TWD)		9,711		5,227		7,648		4,872
Renminbi (RMB)		119		19		—		179
Hong Kong dollar (HKD)		7,526		20,005		83		43
Australian dollar (AUD)		—		66		—		—
Euro (EUR)		—		—		—		199
Japanese yen (JPY)		—		—		—		14,768

Sensitivity of Profit Before Tax and Equity to a Reasonably Possible Change of Relevant Risk Variable

Foreign currency sensitivity

The following table demonstrates the sensitivity of the Company’s profit before tax and equity to a reasonably possible change of each foreign currency exchange rates against all other non-functional currencies, with all other variables held constant.

	Change rate	USD			THB			SGD			TWD			RMB			HKD			AUD			JPY			EUR
	5%		723			(147	)		8			3			1			48			—			—			—
2019	-5%		(723	)		147			(8	)		(3	)		(1	)		(48	)		—			—			—
	5%		(210	)		—			4			1			(1	)		127			2			(7	)		(11	)
2018	-5%		210			—			(4	)		(1	)		1			(127	)		(2	)		7			11

Commodity price risk: Copper [Member]

Statements [Line Items]

Sensitivity of Profit Before Tax and Equity to a Reasonably Possible Change of Relevant Risk Variable

Commodity price sensitivity

The following table shows the potential effect of price changes in copper.

	Change in year-end price			Effect on profit before tax			Effect on equity
	US$’000			US$’000			US$’000
2019		+16	%		(3,473	)	N/A
Copper		-16	%		3,473		N/A
2018		+23	%		6,461		N/A
Copper		-23	%		(6,461	)	N/A

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Equity (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Authorized Shares and Common Shares Issued and Fully Paid

23(a)Common shares

	As of December 31,
	2019		2018
Authorized shares	Number of shares		Number of shares
Common shares of US$0.01 each		50,000,000		50,000,000

Common shares issued and fully paid	Number of shares		US$’000
At December 31, 2019		13,830,769		138
At December 31, 2018		13,830,769		138
At January 1, 2018		13,830,769		138

Disaggregation of Changes of Other Comprehensive Income by Each Type of Reserve in Equity

The disaggregation of changes of other comprehensive income by each type of reserve in equity is shown below:

	For the year ended December 31, 2019
	Remeasurement of defined benefit plans			Financial assets at FVOCI reserve		Foreign currency translation reserve		Total
	US$’000			US$’000		US$’000		US$’000
Exchange difference on translation of foreign operations		—			—		10,677		10,677
Re-measuring losses on defined benefit plans		(1,382	)		—		—		(1,382	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			1,336		—		1,336
		(1,382	)		1,336		10,677		10,631

	For the year ended December 31, 2018
	Remeasurement of defined benefit plans			Available-for-sale reserve			Financial assets at FVOCI reserve			Foreign currency translation reserve			Total
	US$’000			US$’000			US$’000			US$’000			US$’000
Reclassification of application of IFRS 9		—			(1,717	)		1,717			—			—
Exchange difference on translation of foreign operations		—			—			—			(4,388	)		(4,388	)
Re-measuring losses on defined benefit plans		(328	)		—			—			—			(328	)
Changes in faire value of financial assets at fair value through other comprehensive income		—			—			(335	)		—			(335	)
		(328	)		(1,717	)		1,382			(4,388	)		(5,051	)

	For the year ended December 31, 2017
	Remeasurement of defined benefit plans			Available-for-sale reserve			Foreign currency translation reserve		Total
	US$’000			US$’000			US$’000		US$’000
Exchange difference on translation of foreign operations		—			—			15,882		15,882
Cumulative translation differences reclassified to profit or loss on liquidation of a subsidiary		—			—			248		248
Re-measuring losses on defined benefit plans		(618	)		—			—		(618	)
Net loss on available-for-sale financial assets		—			(64	)		—		(64	)
		(618	)		(64	)		16,130		15,448

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Income and Expenses Items - Additional Information (Detail) $ in Thousands, ¥ in Millions	1 Months Ended		12 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2017 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Disclosure of Other Operating Income and Expense [Line Items]
Gain on disposal of assets classified as held for sale				$ 4,525
Immediate Holding Company [Member]
Disclosure of Other Operating Income and Expense [Line Items]
Income from discharge of liability			$ 1,537
Reduction of Other Current Assets [Member]
Disclosure of Other Operating Income and Expense [Line Items]
Recognized other expenses - others			$ 749
Ningbo Pacific Cable Co., Ltd. [Member]
Disclosure of Other Operating Income and Expense [Line Items]
Consideration amount within agreement to sell its buildings and land use rights at its Ningbo Pacific subsidiary	$ 8,800	¥ 60.6
Tax expense related to sale of building and land use rights	$ 800
Gain on disposal of assets classified as held for sale				$ 4,525

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Employee Benefit - Maturity Profile of Defined Benefit Obligation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disclosure of defined benefit plans [Line Items]
Expected payments	$ 25,137	$ 24,500
Weighted average duration of defined benefit obligation	9 years	10 years
Top of range [Member]
Disclosure of defined benefit plans [Line Items]
Weighted average duration of defined benefit obligation		11 years
Within one year [Member]
Disclosure of defined benefit plans [Line Items]
Expected payments	$ 1,340	$ 855
Between 2 and 5 years [Member]
Disclosure of defined benefit plans [Line Items]
Expected payments	2,489	2,374
Between 6 and 10 years [Member]
Disclosure of defined benefit plans [Line Items]
Expected payments	4,391	4,187
Beyond 10 years [Member]
Disclosure of defined benefit plans [Line Items]
Expected payments	$ 16,917	$ 17,084

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Investments in Associates (Tables)

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Associates of the Company

19(a)Associates of the Company

			Percentage of equity interest
			As of December 31
Company Name	Nature of business	Country of incorporation	2019	2018
Shandong Pacific Rubber Cable Co., Ltd. (“SPRC”)	Manufacturing of rubber cable	PRC	25.00%	25.00%
Siam Pacific Holding Company Limited (“SPHC”)	Investment & holding company	Thailand	49.00%	49.00%
Loxpac (Thailand) Company Limited (“Loxpac”) (Formerly known as “Loxley Pacific Co., Ltd.)	Providing telecommunication service	Thailand	21.39%	21.39%
Loxpac Hong Kong Co., Limited (“Loxpac HK”) (Formerly known as “Loxley Pacific Hong Kong Co., Limited” )	Investment & holding company	Hong Kong	23.10%	23.10%

Movements in Investments in Associates

19(b)Carrying amounts of investment in associates

	As of  December 31,
	2019			2018
	US$’000			US$’000
At January 1		864			861
Share of loss of associates		(3	)		(3	)
Exchange difference		74			6
At December 31		935			864

Summarized Financial Information of Investments in Associates

The following table summarized financial information of the Company’s investments in associates:

	As of December 31,
	2019			2018
	US$’000			US$’000
Summarized financial information of SPHC:
Current assets		3			9
Non-current assets		2,103			1,938
Current liabilities		(3	)		(3	)
Non-current liabilities		(196	)		(181	)
Equity		1,907			1,763
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%
Carrying amount of the investment		935			864

	For the year ended December 31,
	2019			2018			2017
	US$’000			US$’000			US$’000
Summarized financial information of SPHC:
Revenue		—			—			—
Loss for the year		(6	)		(5	)		(5	)
Reconciliation to the Company’s investments in associates:
Percentage of equity interest	49%			49%			49%
Share of the associates’ profit for the year:		(3	)		(3	)		(3	)

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Property Plant And Equipment [Abstract]

Summary of Property, Plant and Equipment

	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
	US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000			US$’000
Cost
At January 1, 2018		6,227			48,421			5,622			96,964			5,230			6,959			1,047			170,470
Additions		—			229			76			480			624			395			2,694			4,498
Disposals		—			(8	)		—			(1,120	)		(503	)		(490	)		—			(2,121	)
Transfer		—			—			3			1,418			505			102			(2,028	)		—
Exchange differences		(21	)		(752	)		14			(1,024	)		(76	)		(244	)		(40	)		(2,143	)
At December 31, 2018		6,206			47,890			5,715			96,718			5,780			6,722			1,673			170,704
Effects on initial application of IFRS 16		—			—			—			—			(192	)		—			—			(192	)
Adjusted balance at January 1, 2019		6,206			47,890			5,715			96,718			5,588			6,722			1,673			170,512
Additions		—			7			119			292			433			315			2,240			3,406
Disposals		—			—			(4	)		(2,308	)		(524	)		(331	)		—			(3,167	)
Transfer		—			(167	)		746			1,748			180			139			(2,582	)		64
Exchange differences		632			2,813			454			7,419			332			247			47			11,944
At December 31, 2019		6,838			50,543			7,030			103,869			6,009			7,092			1,378			182,759
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Depreciation/Impairment
At January 1, 2018		—			(33,082	)		(3,254	)		(82,490	)		(3,430	)		(5,888	)		—			(128,144	)
Depreciation charge for the year		—			(1,164	)		(296	)		(2,435	)		(604	)		(402	)		—			(4,901	)
Impairment		—			—			—			(10	)		—			(1	)		—			(11	)
Depreciation on disposals		—			6			0			1,119			503			486			—			2,114
Transfer		—			—			—			(46	)		—			46			—			—
Exchange differences		—			510			(17	)		914			49			200			—			1,656
At December 31, 2018		—			(33,730	)		(3,567	)		(82,948	)		(3,482	)		(5,559	)		—			(129,286	)
Effects on initial application of IFRS 16		—			—			—			—			126			—			—			126
Adjusted balance at January 1, 2019		—			(33,730	)		(3,567	)		(82,948	)		(3,356	)		(5,559	)		—			(129,160	)
Depreciation charge for the year		—			(1,044	)		(338	)		(2,391	)		(541	)		(420	)		—			(4,734	)
Impairment		—			—			(1	)		(550	)		7			(2	)		—			(546	)
Depreciation on disposals		—			—			4			2,274			477			329			—			3,084
Transfer		—			265			(265	)		—			(64	)		—			—			(64	)
Exchange differences		—			(2,361	)		(297	)		(6,517	)		(185	)		(232	)		—			(9,592	)
At December 31, 2019		—			(36,870	)		(4,464	)		(90,132	)		(3,662	)		(5,884	)		—			(141,012	)
	Land			Buildings			Building improvement			Machinery and equipment			Motor vehicle and other asset and assets under finance lease			Office equipment			Construction in progress			Total
Net book value
At December 31, 2019		6,838			13,673			2,566			13,737			2,347			1,208			1,378			41,747
At December 31, 2018		6,206			14,160			2,148			13,770			2,298			1,163			1,673			41,418
At January 1, 2018		6,227			15,339			2,368			14,474			1,800			1,071			1,047			42,326

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Employee Benefit - Summary of Employee Benefit Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Net Defined Benefit Liability Asset [Abstract]
Pension-Defined benefit plans, current	$ 1,436	$ 855
Long service leave, current	452	427
Employee benefit liabilities, current	1,888	1,282
Pension-Defined benefit plans, non-current	10,306	8,161
Long service leave, non-current	128	112
Employee benefit liabilities, non-current	10,434	8,273
Pension-Defined benefit plans	11,742	9,016
Long service leave	580	539
Employee benefit liabilities	$ 12,322	$ 9,555

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Other Current Liability - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Miscellaneous Current Liabilities [Abstract]
Government grant for completed appropriation, recognized as other income	$ 318	$ 106
Government grant for the expropriation, recognized as other current liabilities		$ 318

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Financial Risk Management Objectives - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Financial Instruments [Line Items]
Copper costs as a percentage of product cost	82.00%	85.00%
Cash and cash equivalents	$ 53,673	$ 60,778	$ 46,093	$ 48,231
Unutilized amounts of bank loans	208,000
Financial liabilities	35,000
Mortgage of land, buildings, machinery and equipment, investment properties and land use rights	15,099	9,084
Pledge of other receivables	4,847	7,525
Assets and uncalled capital pledged as security	1,339	1,200
Subsidiary [Member]
Disclosure Of Financial Instruments [Line Items]
Assets and uncalled capital pledged as security	$ 27,454	$ 27,731
One major customer [Member]
Disclosure Of Financial Instruments [Line Items]
Percentage of trade receivables from one customer	9.31%	8.20%
Interest rate risk [Member]
Disclosure Of Financial Instruments [Line Items]
Change of interest rates	0.30%	0.30%
Change in profit before tax due to change of interest rates	$ 46	$ 64
Top Of Range [Member]
Disclosure Of Financial Instruments [Line Items]
Percentage of financial liabilities bear floating interest rate	25.00%
Weighted average [Member]
Disclosure Of Financial Instruments [Line Items]
Weighted average interest rates on bank loans and overdrafts	3.72%	3.68%

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Segment Information - Reconciliation of Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Disclosure Of Operating Segments [Line Items]
Total assets	$ 298,911	$ 305,798
Investment in associates	935	864
Deferred tax assets	3,939	3,919	$ 3,026	$ 3,022
Total liabilities	70,476	83,982
Deferred tax liabilities	4,139	3,925
Operating segments [Member]
Disclosure Of Operating Segments [Line Items]
Total assets	291,576	298,222
Total liabilities	62,752	77,071
Eliminations [Member]
Disclosure Of Operating Segments [Line Items]
Total assets	(5)	(76)
Total liabilities	(6)	(33)
Segment Reconciling Items [Member]
Disclosure Of Operating Segments [Line Items]
Corporate and other assets	2,466	2,869
Investment in associates	935	864
Deferred tax assets	3,939	3,919
Corporate liabilities	3,591	3,019
Deferred tax liabilities	$ 4,139	$ 3,925

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Summary of Significant Accounting Policies - Lease Term or Estimated Useful Lives of Assets (Detail)	12 Months Ended
	Dec. 31, 2019
Land use right [Member] | Bottom of range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	2 years
Land use right [Member] | Top Of Range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	37 years
Buildings [Member] | Bottom of range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	2 years
Buildings [Member] | Top Of Range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	3 years
Motor vehicles [Member] | Bottom of range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	1 year
Motor vehicles [Member] | Top Of Range [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	3 years
Office equipment [Member]
Disclosure of detailed information about Right-of-use assets [Line Items]
Lease Term or Estimated Useful Lives of Assets	5 years

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New Standards And Interpretations - Summary of Reconciliation of IAS 17 Non-cancelled Operating Lease Commitment to IFRS 16 Lease Liability (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Disclosure Of Reconciliation Of I A S17 Noncancelled Operating Lease Liability [Abstract]
Operating lease commitments disclosed as at December 31, 2018			$ 3,263
Add: finance lease liabilities recognized as at December 31, 2018		$ 2,788	$ 90
Discounted using the incremental borrowing rate at January 1, 2019	$ (380)
Short-term leases	(169)
Leases of low-value assets	(16)
Lease liabilities recognized as at January 1, 2019	$ 2,788

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Financial Risk Management Objectives - Summary of Maturity Profile of Financial Liabilities Based on Contractual Undiscounted Payment Obligations (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Interest-bearing loans and borrowings	$ 11,484	$ 25,151
Trade and other payables	16,879	21,127
Foreign exchange forward contracts	3	142
Lease liability	3,192	94
Financial liabilities	34,842	49,511
Within one year [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Interest-bearing loans and borrowings	11,484	25,151
Trade and other payables	16,879	21,127
Foreign exchange forward contracts	3	142
Lease liability	656	47
Financial liabilities	32,306	49,464
2 to 3 years [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Lease liability	910	36
Financial liabilities	910	36
4 to 5 years [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Lease liability	444	11
Financial liabilities	444	11
More than five years [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Lease liability	1,182
Financial liabilities	1,182
All other related parties [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Due to related parties	3,284	2,997
All other related parties [Member] | Within one year [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items]
Due to related parties	$ 3,284	$ 2,997

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Segment Information - Revenue from External Customers Based on Customer's Country of Domicile and Long-lived Assets by Country of Domicile (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 338,160	$ 425,940	$ 425,215
Thailand (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	116,160	154,207	158,565
Singapore (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	46,218	63,781	76,453
Australia (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	34,447	37,594	34,901
The People's Republic of China (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	81,813	111,917	108,561
India (Country of Domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	36,121	45,008	31,291
Southeast Asia (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	23,390	13,339	15,394
Northeast Asia (Country of domicile) [Member]
Disclosure Of Geographical Areas [Line Items]
Revenue	$ 11	$ 94	$ 50

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Income and Expenses Items - Summary of Other Operating Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Analysis Of Income And Expense [Abstract]
Gain on disposal of property, plant, and equipment	$ 88	$ 93	$ 99
Reversal of allowance for trade receivable	122
Gain on disposal of assets classified as held for sale			4,525
Reversal of allowance for foreseeable loss		507
Other operating income – others	175	205	460
Total other operating income	$ 385	$ 805	$ 5,084

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Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Revenue	$ 338,160	$ 425,940	$ 425,215
Segment operating profit/(loss)	(264)	9,324	12,440
Depreciation and amortization	(5,324)	(5,018)	(5,056)
Depreciation from right of use assets	(507)
Impairment of property, plant and equipment	(546)	(11)	(223)
Interest income	506	482	876
Interest expense	(845)	(1,200)	(966)
Income tax (expense)/benefit	(2,057)	(3,886)	(5,140)
Other disclosures
Capital expenditure	5,462	4,508	4,913
Total assets	298,911	305,798
Total liabilities	70,476	83,982
North Asia (Segment) [Member]
Revenues
Revenue	76,575	103,647
Thailand (Segment) [Member]
Revenues
Revenue	172,379	213,424
ROW (Segment) [Member]
Revenues
Revenue	89,206	108,869
Operating segments [Member]
Revenues
Segment operating profit/(loss)	2,620	12,467	15,514
Depreciation and amortization	(5,266)	(4,998)	(5,053)
Depreciation from right of use assets	(485)
Impairment of property, plant and equipment	(546)	(11)	(223)
Interest income	505	770	957
Interest expense	(822)	(1,179)	(1,033)
Income tax (expense)/benefit	(1,691)	(2,980)	(4,464)
Other disclosures
Capital expenditure	5,384	4,498	4,913
Total assets	291,576	298,222
Total liabilities	62,752	77,071
Operating segments [Member] | North Asia (Segment) [Member]
Revenues
Segment operating profit/(loss)	1,237	5,234	3,256
Depreciation and amortization	(811)	(829)	(979)
Depreciation from right of use assets	(44)
Impairment of property, plant and equipment	(549)		(213)
Interest income	57	117	51
Interest expense	(239)	(397)	(428)
Income tax (expense)/benefit	(561)	(1,212)	(1,395)
Other disclosures
Capital expenditure	552	1,188	991
Total assets	49,379	54,250
Total liabilities	14,212	20,169
Operating segments [Member] | Thailand (Segment) [Member]
Revenues
Segment operating profit/(loss)	3,042	9,539	11,053
Depreciation and amortization	(2,842)	(2,836)	(2,760)
Impairment of property, plant and equipment	3	(11)	(10)
Interest income	403	611	845
Interest expense	(481)	(748)	(553)
Income tax (expense)/benefit	(1,235)	(2,152)	(2,727)
Other disclosures
Capital expenditure	4,590	2,859	3,332
Total assets	165,579	173,398
Total liabilities	26,706	42,887
Operating segments [Member] | ROW (Segment) [Member]
Revenues
Segment operating profit/(loss)	(1,659)	(2,306)	1,205
Depreciation and amortization	(1,613)	(1,333)	(1,314)
Depreciation from right of use assets	(441)
Interest income	45	42	61
Interest expense	(102)	(34)	(52)
Income tax (expense)/benefit	105	384	(342)
Other disclosures
Capital expenditure	242	451	590
Total assets	76,618	70,574
Total liabilities	21,834	14,015
Corporate expense adjustments and eliminations [Member]
Revenues
Segment operating profit/(loss)	(2,884)	(3,143)	(3,074)
Depreciation and amortization	(58)	(20)	(3)
Depreciation from right of use assets	(22)
Interest income	1	(288)	(81)
Interest expense	(23)	(21)	67
Income tax (expense)/benefit	(366)	(906)	(676)
Other disclosures
Capital expenditure	78	10
Total assets	7,335	7,576
Total liabilities	7,724	6,911
External customers [Member]
Revenues
Revenue	338,160	425,940	425,215
External customers [Member] | Operating segments [Member]
Revenues
Revenue	338,160	425,940	425,215
External customers [Member] | Operating segments [Member] | North Asia (Segment) [Member]
Revenues
Revenue	76,575	103,647	101,533
External customers [Member] | Operating segments [Member] | Thailand (Segment) [Member]
Revenues
Revenue	172,379	213,424	206,485
External customers [Member] | Operating segments [Member] | ROW (Segment) [Member]
Revenues
Revenue	89,206	108,869	117,197
Intersegment [Member] | Operating segments [Member]
Revenues
Revenue	6	10,776	1,934
Intersegment [Member] | Operating segments [Member] | North Asia (Segment) [Member]
Revenues
Revenue		4,076	890
Intersegment [Member] | Operating segments [Member] | Thailand (Segment) [Member]
Revenues
Revenue	6	392	1,044
Intersegment [Member] | Operating segments [Member] | ROW (Segment) [Member]
Revenues
Revenue		6,308
Intersegment [Member] | Corporate expense adjustments and eliminations [Member]
Revenues
Revenue	$ (6)	$ (10,776)	$ (1,934)

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Financial Assets and Financial Liabilities

12 Months Ended

Dec. 31, 2019

Disclosure Of Financial Instruments [Abstract]

Financial Assets and Financial Liabilities

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

11(a)Other financial assets and liabilities

	As of December 31,
	2019		2018
	US$’000		US$’000
Financial assets at fair value through other comprehensive income
Equity instrument (Note 11(d))		4,062		2,332
		4,062		2,332
Financial liabilities at fair value through profit or loss
Foreign exchange forward contracts (Note 11(c))		3		142
		3		142

(i) Financial assets and liabilities at fair value through profit or loss

Financial assets and liabilities at fair value through profit or loss reflect the changes in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are intended to reduce the level of foreign currency risk for expected sales and purchase transactions.  

(ii) Financial assets at fair value through other comprehensive income - unquoted equity instrument

On January 1, 2018, the date of initial application of IFRS 9, the Company elected to reclassify its unquoted equity instrument in Thai Metal Processing Co., Ltd (“TMP”), which is engaged in the fabrication of copper rods, from financial assets – available-for-sale to financial assets at fair value through other comprehensive income due to the investment being hold as a long-term strategic investment and not expected to be sold in the short to medium term. During the years ended December 31, 2019, 2018, and 2017, the Company received dividends of $109, $105, and $100 from TMP, respectively, which were recorded in other income (Note 7(e)) in the consolidated income statements.

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(b)Interest-bearing loans and borrowings

Under the line of credit arrangements for short-term debt with the Company’s banks, the Company may borrow up to approximately $287,017 and $275,334as of December 31, 2019 and 2018, respectively, on such terms as the Company and the banks may mutually agree upon. These arrangements do not have termination dates but are reviewed annually for renewal. As of December 31, 2019 and 2018, the unused portion of the credit lines was approximately $207,928 and $182,361, respectively, which included unused letters of credit amounting to $113,255 and $92,256, respectively.

Letters of credit are issued by the Company in the ordinary course of business through major financial institutions as required by certain vendor contracts. As of December 31, 2019 and 2018, the Company had open letters of credit amounting to $15,209 and $22,426, respectively. Liabilities relating to the opened letters of credit are included in current liabilities.

	As of December 31,
	2019					2018
	Interest rate	Maturity	Local currency			Interest rate	Maturity	Local currency
	%		‘000	US$’000		%		‘000	US$’000
Current interest-bearing loans and borrowings
Bank loans
Bank loans	5.00 ~ 5.50	Mar. 2020 ~ Sept. 2020	RMB$20,400		2,929	4.70 ~ 4.79	Jan. 2019 ~ Sept. 2019	RMB$42,100		6,130
Trust receipt	1.90 ~ 2.70	Jan. 2020 ~ Jun. 2020	THB$161,018		5,423	1.10 ~ 2.10	Jan. 2019 ~ Jun. 2019	THB$602,150		18,684
Trust receipt	3.05	Feb. 2020 ~ Apr. 2020	SGD$4,042		3,004
Total					11,356					24,814

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(c)Hedging activities and derivatives

(i) Commodity price risk

The Company purchases copper on an ongoing basis as its operating activities require a continuous supply of copper for manufacturing products. To reduce the exposures to copper shortage, the Company enters into purchase contracts with commitment of monthly minimum purchase at market prices for selected operating units. The majority of these transactions take the form of contracts that are entered into and continue to be held for the purpose of receipt or delivery of the copper based on the Company’s expected purchase, sale or usage requirements. Such purchase commitment contracts are not deemed financial instruments or derivatives. To date, these contract positions have not had a material effect on the Company’s financial position, results of operations, and cash flow. Whether the annual copper purchase quantity needs to be reduced for the subsequent development, please see the Note 29 Subsequent event.

(ii) Foreign currency risk

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchase transactions. These contracts are entered into the periods consistent with foreign currency exposure of the underlying transaction, generally from one to 12 months. These contracts are not designated in hedge relationships, and are measured at fair value through profit or loss.

As of December 31, 2019 and 2018, the Company had outstanding forward contracts with notional amounts of $(0.9) million and $(9.4) millionrespectively.  The outstanding forward contracts at December 31, 2019 and 2018 mature between June 10 and June 23, 2020 and April 29 and June 17, 2019, respectively. The Company recognized gain (loss) on forward contracts as other income (expenses) – refer to Note 7(e) and Note 7(f).

The forward contract balance varies with the expected foreign currency transactions and changes in foreign exchange rate.

	2019				2018
	Assets		Liabilities		Assets		Liabilities
	US$’000		US$’000		US$’000		US$’000
Foreign currency forward contracts
Fair value		—		3		—		142

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

11(d)Fair values

Set out below is a comparison of the carrying amounts and fair value of the Company’s financial instruments that are carried in the financial statements:

	Carrying amount				Fair value
	As of December 31,				As of December 31,
	2019		2018		2019		2018
	US$’000		US$’000		US$’000		US$’000
Financial assets-current
Cash and cash equivalents		53,673		60,778		53,673		60,778
Trade receivables		74,077		79,617		74,077		79,617
Other receivables		6,868		12,422		6,868		12,422
Due from related parties		11,566		12,061		11,566		12,061
Financial assets-non-current
Financial assets at fair value through other comprehensive income		4,062		2,332		4,062		2,332
Long-term bank deposits*		1,246		887		1,246		887
Total		151,492		168,097		151,492		168,097
Financial liabilities-current
Interest-bearing loans and borrowings		11,356		24,814		11,356		24,814
Trade and other payables		16,879		21,127		16,879		21,127
Due to related parties		3,284		2,997		3,284		2,997
Financial liabilities at fair value through profit or loss		3		142		3		142
Financial lease liabilities		574		44		574		44
Financial liabilities-non-current
Financial lease liabilities		2,254		46		2,254		46
Total		34,350		49,170		34,350		49,170
* included in other non-current assets

(i) Methods and assumptions used to estimate fair value

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

► Cash and cash equivalents, trade receivables, other receivables, due from related parties, trade and other payables, due to related parties, and financial lease liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

► Fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances were provided to account for the expected losses of these receivables. As of December 31, 2019 and 2018, the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values.

► Fixed rate long-term bank deposits and fixed rate and variable-rate borrowings are evaluated using discounted cash flows and the market rates or current rates for deposits of similar remaining maturities.

► Fair valueoffinancialliabilities at fair value through profit or loss - derivativesisderivedfrom inputs other than quoted prices that are observable for the asset or liability.

11. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (continued)

(i) Methods and assumptions used to estimate fair value (continued)

► Fair valueofinterest-bearing borrowings and loans are determined by using discounted cash flow method with discount rate that reflects the issuer’s borrowing rate as of the end of the reporting period. The non-performance risk as of December 31, 2019 was assessed to be insignificant.

(ii) Description of significant unobservable inputs to valuation

	Valuation technique	Significant unobservable inputs	Liquidity discount (2019 and 2018)	Sensitivity of the input to fair value
				2019	2018
Financial asset
Unquoted equity instrument	Market Approach Method	Liquidity Discount	30%	5%  decrease in the discount would increase in fair value by $290	5%  decrease in the discount would increase in fair value by $167

The Company estimates the fair value of investment in equity instrument by using the market approach (market comparatives approach). The key in this method is the selection of quoted comparable companies and accommodate adjustments to bring the accounts of different companies into a broadly consistent framework for analysis. Then, select appropriate Indicators of Value. The followings should be taken into account:

► Enterprise Value (EV) versus Market Capitalization;

► Earnings-based: EBITDA +/or EBIT versus Net Earnings +/or Net Cash Flow

► Balance Sheet based: Net Total Assets versus Shareholders Funds

Discount for the lack of liquidity to reflect the lesser liquidity of this equity instrument compared with those of its comparable public company peers. The Company assessed the discount for the lack of liquidity to be 30 percent on the basis of relevant studies applicable in the region and industry as well as on the specific facts and circumstances of the equity instrument. The equity instrument’s finance performance is characterized by stable, consistent growth and profitability. The Company believes the liquidity discount of 30% would be appropriate.

The Company carries the equity instrument as financial assets at fair value through other comprehensive income classified as level 3 within the fair value hierarchy.  A reconciliation of the beginning and closing balances is summarized below:

	2019		2018
	US$’000		US$’000
At January 1		2,332		2,747
Re-measurement financial assets to fair value, recognized in other comprehensive income/(loss)		1,670		(419	)
Exchange difference on translation		60		4
At December 31		4,062		2,332

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Income and Expenses Items

12 Months Ended

Dec. 31, 2019

Text Block1 [Abstract]

Income and Expenses Items

7. INCOME AND EXPENSES ITEMS

7(a)Other operating income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Gain on disposal of property, plant, and equipment		88		93		99
Reversal of allowance for trade receivable		122		—		—
Gain on disposal of assets classified as held for sale		—		—		4,525
Reversal of allowance for foreseeable loss		—		507		—
Other operating income – others		175		205		460
Total other operating income		385		805		5,084

On December 13, 2016, the Company entered into an agreement to sell its buildings and land use rights at its Ningbo Pacific subsidiary. The transaction was completed in March 2017 for a consideration of RMB 60.6 million, or approximately US$8.8 million (including $0.8 million tax related expenses). The Company recognized gain on disposal of assets classified as held for sale amounted $4,525 for the year ended December 31, 2017.

7(b)Other operating expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Allowance for trade receivables for related parties		—		1		27
Allowance for trade receivables		—		570		302
Allowance for other receivable		30		53		—
Allowance for foreseeable loss		193		—		276
Impairment of property, plant, and equipment		546		11		223
Other operating expenses – others		1		810		81
Total other operating expenses		770		1,445		909

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,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest on debts and borrowings		754		1,196		962
Interest on leases liabilities		91		4		4
Total interest expenses		845		1,200		966
Banking charges		167		178		255
Total finance costs		1,012		1,378		1,221

7(d)Finance income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Interest income		506		482		876
Total finance income		506		482		876

7(e)Other income

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Other income		462		1,712		114
Dividend income		109		105		100
Net gain on financial instruments		146		—		—
Total other income		717		1,817		214

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.

7(f)Other expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Others		3		9		4
Net loss on financial instruments		—		2		332
Total other expenses		3		11		336

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,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Depreciation – tangible assets		4,089		4,162		4,148
Depreciation – right-of-use assets		135		—		—
Amortization – intangible assets		10		9		9
Operating lease expenses		3		16		15
Included in selling expenses:
Depreciation – tangible assets		93		141		132
Depreciation – right-of-use assets		112		—		—
Amortization – intangible assets		1		1		—
Operating lease expenses		1		184		193
Included in general and administrative expenses:
Depreciation – tangible assets		552		598		657
Depreciation – right-of-use assets		260		—		—
Amortization – intangible assets		39		34		40
Amortization – prepaid land lease payment		—		38		35
Depreciation – investment property		33		35		35
Operating lease expenses		170		200		201
		5,498		5,418		5,465

7(h)Employee benefits expenses

	For the year ended December 31,
	2019		2018		2017
	US$’000		US$’000		US$’000
Included in cost of sales:
Wages and salaries		14,429		13,674		13,474
Labor and health insurance costs		126		162		168
Pension costs		994		890		869
Other employment benefits		816		892		817
Included in selling expenses:
Wages and salaries		3,495		3,685		3,641
Labor and health insurance costs		12		14		14
Pension costs		330		324		325
Other employment benefits		50		68		64
Included in general and administrative expenses:
Wages and salaries		8,117		8,818		8,364
Labor and health insurance costs		85		224		219
Pension costs		757		671		656
Director fees		640		1,046		1,119
Other employment benefits		286		325		342
Total employee benefits expenses		30,137		30,793		30,072

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

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(Loss) Earnings Per Share - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Income from continuing operations attributable to non-controlling interests	$ 681	$ 4,518	$ 4,808

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Income Tax - Year of Expiration and Amount of Available Unused Net Operating Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	$ 20,580	$ 16,762
2019 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses		784
2020 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	3,067	3,020
2021 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	5,246	5,121
2022 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	2,216	2,105
2023 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	4,855	4,760
2024 [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	3,605
No expiration [Member]
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items]
Unused net operating losses	$ 1,591	$ 972

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Disclosure Of Summary Of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except as mentioned otherwise (see also Note 4.1).

3.1 Current versus non-current classification

The Company presents assets and liabilities in the balance sheets based on current and non-current classification. An asset is current when it is:

Expected to be realized or intended to be sold or consumed in the normal operating cycle;

► Held primarily for the purpose of trading;

► Expected to be realized within twelve months after the reporting period; or

► Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in a normal operating cycle;

► It is held primarily for the purpose of trading;

► It is due to be settled within twelve months after the reporting period; or

► There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

3.2 Operating profit

The operating profit is the profit earned from core business operations, and it does not include any profit earned from investment and the effects of interest and taxes.

3.3 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date. In addition, fair values of financial instruments measured at amortized cost are disclosed in Note 11(d).

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

► In the principal market for the asset or liability, or

► In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.3 Fair value measurement (continued)

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

► Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

► Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly

► Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.4 Cash and cash equivalents

Cash and cash equivalents in the consolidated balance sheet comprise of cash at banks and highly liquid investments with purchased maturities of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the consolidated statements of cash flows, cash and cash equivalents are net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

The balance of bank overdraft was nil as of December 31, 2019 and 2018.

3.5 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost of manufactured goods is determined on the weighted average basis and, in the case of work in progress and finished goods, comprises direct materials, direct labor and an appropriate proportion of overheads based on the normal operating capacity. Cost of distributed goods is determined on the weighted average basis. Net realizable value is based on estimated selling prices less any estimated costs to be incurred to completion and the estimated cost necessary to make the sale.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met.

Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciates them accordingly.

Spare parts and servicing equipment are usually carried as inventory and recognized in profit or loss as consumed. However, major spare parts and stand-by equipment qualify as property, plant and equipment when an entity expects to use them for more than one year.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. A provision shall be recognized when:

(a) an entity has a present obligation (legal or constructive) as a result of a past event;

(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

If these conditions are not met, no provision shall be recognized.

Depreciation

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

►      Buildings	20-30 years
►      Building improvement	3-20 years
►      Machinery and equipment	4-20 years
►      Motor vehicles	3-10 years
►      Office equipment	2-20 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end, and adjusted prospectively, if appropriate.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.6 Property, plant and equipment (continued)

Impairment

If circumstances arise which indicate assets might be impaired, a review should be undertaken of their cash generating abilities through either use or sales. This review will produce an amount, which should be compared with the asset’s carrying value, and if the carrying value is higher, the difference must be written off as an impairment adjustment in the income statement. Further detailed methodology used for an impairment test is given in Note 3.11 - Impairment of non-financial assets.

3.7 Leases

From January 1, 2019

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, the Company assesses whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company, as a lessee, applies a single accounting model to recognize assets and liabilities for all leases, except for the lease term is 12 months or less or the underlying asset has a low value. The Company recognizes lease liabilities to make lease payment and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

►Land use right	2 to 37 years
►Buildings	2 to  3 years
►Motor vehicles	1 to  3 years
►Office equipment	5        years

If the ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies Note 3.11 impairment of non-financial assets.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

(ii) Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payment to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payment) or a change in the assessment of an option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-value assets recognition exemption to its leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases for which the Company is a lessor are classified each of its leases as either an operating lease or finance lease.

Finance lease

Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset, the lease is classified as a finance lease. Amount due from lessees under finance lease are recognized as receivables at the amount of the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases.

Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the consolidated income statements due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.

Property (land and/or a building, or part of a building) subject to an operating lease shall be recognized as an investment property.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Leases (continued)

Prior to January 1, 2019

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Finance leases

Finance leases that transfer substantially all the risks and benefits incidental to ownership of the leased item to the Company, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the income statement.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating leases

Operating lease payments are recognized as an operating expense in the income statement on a straight-line basis over the lease term.

Prepaid land lease payments under operating leases are initially stated at cost and subsequently recognized on the straight-line basis over the lease terms. The prepaid land lease payments are presented as current or non-current assets on the face of balance sheet, depending on the amount to be recognized less or more than twelve months after the reporting period.

3.8 Borrowing costs

Borrowing costs are required to be capitalized as part of the cost of the asset if they are directly attributable to the acquisition, construction or productions of a qualifying asset (whether or not the funds have been borrowed specifically). All other borrowing costs are recognized as an expense in the period in which they are incurred.

A qualifying asset is an asset that necessarily takes a substantial period to get ready for its intended use or sale.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.8 Borrowing costs (continued)

Borrowing costs include:

► interest expense calculated using the effective interest method;

► finance charges in respect of finance leases; and

► exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Exchange differences are generally regarded as borrowing costs only to the extent that the combined borrowing costs, including exchange differences, approximate the amount of borrowing costs on functional currency equivalent borrowings.

For specific borrowings, the borrowing costs eligible for capitalization are the actual borrowing costs incurred related to funds that are borrowed specifically to obtain a qualifying asset less any investment income earned on the temporary investment of those borrowings.

For general borrowings, the capitalization rate applied to borrowing costs on the consolidation level will be based on cash management strategy, which might be the weighted average of the group borrowings outstanding during the period.

3.9 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are carried at historical cost less provisions for depreciation and impairment. Additional costs incurred subsequent to the acquisition of an asset increase the carrying amount of the asset or recognized as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Company and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred. While land is not depreciated, all other investment property is depreciated based on the respective assets estimated useful lives ranging from 20 to 30 years using the straight-line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the property is derecognized.

International Accounting Standards (“IAS”) 40 requires disclosures about the fair value of any investment property recorded at cost. See Note 17 – Investment Properties.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments

From January 1, 2018

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets

Classification and measurement

Except for certain trade receivables, the company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs directly attributable to the acquisition or issue of the financial asset. Financial instruments are subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL). The classification is based on two criteria: the objective of the company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).

The classification and measurement of financial assets is as follows:

► Debt instruments at amortized cost

Financial assets meeting both conditions: (i) held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and (ii)  the contractual terms of the financial assets give arise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequent to initial recognition at amortized cost.

The amortized cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortization using the effective interest rate (“EIR”) method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, and any impairment charges for such instruments are recognized in profit or loss.  

The Company’s financial assets at amortized costs include cash and cash equivalents, trade receivables, other receivable, and the receivable from related party.

► Debt instruments at FVOCI with gains or losses recycled to profit or loss on derecognition

Financial assets that are held within a business model whose objective is to hold financial assets in order to both collecting contractual cash flows and selling financial assets, and that the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income, foreign exchange gains and losses, and any impairment charges on such instruments are recognized in profit or loss. All other fair value gains and losses are recognized in OCI. On disposal of these debt instruments, any related balance with FVOCI reserve is reclassified to profit or loss.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

► Equity instruments designated at FVOCI with no recycling of gains or losses on derecognition

These instruments are undertakings in which the Company does not have significant influence or control, generally evidenced by ownership of less than 20% of the voting rights. The Company designates these investments on an instrument by instrument basis as equity securities at FVOCI because they represent investments held for long term strategic purposes.

Investments in equity instruments at FVOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in OCI. These investments are not subject to impairment testing and upon disposal, the cumulative gain or loss in OCI is not reclassified to profit or loss on disposal. Dividends from such investments continue to be recognized in profit or loss when the Company’s right to receive payments is established.

The Company elected to classify irrevocably its non-listed equity investments under this category.

► Financial assets at fair value through profit or loss (FVPL)

Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt instrument that is subsequently measured at FVPL is recognized in profit or loss in the period in which it arises.

Even if an instrument meets the two requirements to be measured at amortized cost or FVOCI, the Company may, at initial recognition, irrevocably designate a financial asset as measured at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency.

Changes in the fair value of financial assets at FVPL are recognized in the statement of profit or loss as applicable.

Reclassification

When, and only, the Company changes its business model for managing financial assets it shall reclassify all affected financial assets according to the classification and measurement criteria discussed earlier. If the Company reclassifies financial assets, it shall apply the reclassification prospectively from the reclassification date and shall not restate any previously recognized gains, losses (including impairment gains or losses) or interest.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(i) Financial assets (continued)

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the Company’s consolidated balance sheet) when and only when:

(a)  the rights to receive cash flows from the asset have expired, or

(b) the Company has transferred its rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to one or more recipients under a “pass-through” arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates the extent to which, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset and has not transferred the control of the assets, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay (“the guarantee amount”).

(ii) Financial liabilities

Classification and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.  

All financial liabilities are recognized initially at fair value and, net of directly attributable transaction costs in the case of loans and borrowings.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-being loans and borrowings. These financial liabilities represent liabilities for goods and services provided to the Company and refund liabilities arising from contracts with customers. Trade payable are non-interest bearing and are normally settled on 60-day terms. The refund liabilities are rebate and discounts for the sale of goods to external customers in the ordinary course of the Company’s activities. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using the EIR method.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Financial liabilities (continued)

Classification and measurement (continued)

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iii) Foreign currency forward contracts

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently re-measured at fair value, and the gains or losses are recognized in profit or loss.

(iv) Impairment of financial instruments

The following financial instruments are included within the scope of the impairment requirements in IFRS 9 Financial Instruments:

(a)   Financial assets measured at amortized cost;

(b)   Financial assets mandatorily measured at FVOCI;

(c)   Loan commitments when there is a present obligation to extend credit (except where these are

        measured at FVPL);

(d)   Financial guarantee contracts to which IFRS 9 is applied (except those measured at FVPL);

(e)   Lease receivables within the scope of IFRS 16 Leases from January 1, 2019 and IAS 17 prior to

January 1, 2019.

(f)   Contract assets within the scope of IFRS 15 Revenue from Contracts with Customers.

From January 1, 2018, the Company assesses on a forward looking basis the expected credit losses (ECLs) associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

With the exception of purchased or originated credit impaired financial assets, ECLs are required to be measured through a loss allowance at an amount equal to:

(a)  credit risk has not increased significantly since initial recognition – recognize 12-month ECLs , and recognize interest on a gross basis; or

(b) credit risk has increased significantly since initial recognition – recognize lifetime ECL, and recognize interest on a gross basis.  

A loss allowance for full lifetime ECLs is required for contract assets or trade receivables that do not constitute a financing transaction in accordance with IFRS 15. The Company may select its accounting policy for contract assets and trade receivables, containing a significant financing component and lease receivables to measure the loss allowance at an amount equal to lifetime ECLs.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

For trade receivables and contract assets, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables, see Note 12(c) for further details.  

The Company recognizes in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

(v) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if when the following conditions are met: (i) there is a currently enforceable legal right to offset the recognized amounts; and (ii) there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

(vi) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Recent arm’s length market transactions

► Current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Prior to January 1, 2018

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value presented as net loss on financial instruments (negative net changes in fair value) or net gain on financial instruments (positive net changes in fair value) in the income statement.

Derivatives not designated as hedging instruments

A derivative is a financial instrument or other contract within the scope of IAS 39 with all of the following characteristics:

(a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’);

(b) it requires no initial net investment, or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and

(c) it is settled at a future date.

Fair value is the measurement basis for all financial instruments meeting the definition of a derivative. Change in fair value of non-hedged item is recorded in profit and loss.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (“EIR”) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the income statement. The losses arising from impairment are recognized in the other operating expenses for receivables.

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held to maturity when the Company has the positive intention and ability to hold them to maturity. After initial measurement, held to maturity investments are measured at amortized cost using the EIR, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance income or finance cost in the income statement. The losses arising from impairment are recognized in the income statement as finance costs.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets

Available-for-sale financial assets include equity investments and debt securities. Equity investments classified as available for sale are those that are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions.

After initial measurement, available-for-sale financial assets are subsequently measured at fair value with unrealized gains or losses recognized as other comprehensive income in the available-for-sale reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in other income, or the investment is determined to be impaired, when the cumulative loss is reclassified from the available-for-sale reserve to the income statement in finance costs. Interest earned whilst holding available-for-sale financial investments is reported as finance income using the EIR method.

For a financial asset reclassified out of the available-for-sale category, the fair value carrying amount at the date of reclassification becomes its new amortized cost and any previous gain or loss on the asset that has been recognized in equity is amortized to profit or loss over the remaining life of the investment using the EIR. Any difference between the new amortized cost and the maturity amount is also amortized over the remaining life of the asset using the EIR. If the asset is subsequently determined to be impaired, then the amount recorded in equity is recognized in the income statement.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when:

► The rights to receive cash flows from the asset have expired, or

► The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(ii) Impairment of financial assets

The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if there is objective evidence of impairment as a result of one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

Financial assets carried at amortized cost

For financial assets carried at amortized cost, the Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current EIR.

The carrying amount of the asset is reduced through the use of an allowance account, and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as finance income in the income statement. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to finance costs in the income statement.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Trade receivables impairment

For trade receivables, impairment assessment is performed firstly on an individual basis:

A financial asset is impaired (and impairment losses are determined) if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after initial recognition (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset that can be reliably estimated.

Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the holder about the following loss events:

► significant financial difficulty of the issuer or obligor;

► breach of contract, such as a default or delinquency in interest or principal payments;

► the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that would not otherwise be considered;

► it becoming probable that the borrower will enter bankruptcy or other financial reorganization;

► the disappearance of an active market for that asset because of financial difficulties (but not simply because the asset is no longer publicly traded ; or

► observable data indicating that there is a measurable decrease in the estimated future cash flows from a Company of financial assets since initial recognition, although the decrease cannot yet be identified with the individual assets in the Company, including:

• adverse changes in the payment status of borrowers in the Company (e.g. an increased number of delayed payments); or

• national or local economic conditions that correlate with defaults on the assets in the Company.

For trade receivables that have been individually assessed, but for which there is no objective evidence of impairment, the review for impairment is performed on a group basis, based on similar credit risk characteristics.

Available-for-sale financial assets

For available-for-sale financial assets, the Company assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired.

In the case of equity investments classified as available-for-sale, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. ‘Significant’ is evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. The Company’s policy considers a significant decline to be one in which the fair value is below the weighted average original cost by more than 20%. A prolonged decline is considered to be one in which the fair value is below the weighted average original cost for a period of more than 12 months. When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement – is removed from other comprehensive income and recognized in the income statement. Impairment losses on equity investments are not reversed through profit or loss; increases in their fair value after impairment are recognized directly in other comprehensive income.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

Available-for-sale financial assets(continued)

In the case of debt instruments classified as available for sale, impairment is assessed based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement.

Future interest income continues to be accrued based on the reduced carrying amount of the asset, using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the income statement, the impairment loss is reversed through the income statement.

(iii) Financial liabilities

Financial liabilities initial recognition and measurement

Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, bank overdrafts and interest-bearing loans and borrowings.

Subsequent measurement

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different  terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the income statement.

(iv) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.10 Financial instruments (continued)

(v) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include:

► Using recent arm’s length market transactions

► Reference to the current fair value of another instrument that is substantially the same

► A discounted cash flow analysis or other valuation models

3.11 Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use. A CGU is the smallest group of assets that generates cash inflows that are largely independent of the cash flows from other assets or groups of assets. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

Impairment losses of continuing operations are recognized in the income statement in expense categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the consolidated income statement.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.12 Intangible assets

Computer software

The costs of acquiring software is capitalized separately as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software. Acquired software (licenses) is stated at cost less accumulated amortization and impairment losses.

Amortization of software applications is charged to operating expenses and/or cost on a straight-line basis over 2 to 10 years from the date they are available for use.

The residual values and useful lives are reviewed at each balance sheet date and adjusted, if appropriate.

3.13 Taxes

Current income tax

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities.  The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

► When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

► In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

► When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.13 Taxes

Deferred tax (continued)

► In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Uncertain tax position

An entity’s tax position might be uncertain; for example, where the tax treatment of an item of expense or structured transaction may be challenged by the tax authorities.

The Company considers each uncertain tax positions individually, by first considering whether each position taken in the tax return is probable of being sustained on examination by the taxing authority, and recognizing a liability for each item that is not probable of being sustained. The liability then is measured using a single best estimate of the most likely outcome. The uncertain tax positions are presented in the current tax liabilities.

The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition

The Company generates revenue primarily from the sales of wires and cables and supply, delivery and installation services to its customers (see Note 5(e)).

Revenue from contract with customers is recognized when (or as) control of the goods or services (i.e. assets) are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has concluded that it is the principal in its revenue arrangements because it controls the goods or services before transferring them to the customer. The Company has certain contracts with customers to perform fabrication services for its customers, converting customer-owned raw materials to wire and cable products. The Company is responsible for fulfilling the promise to provide the specified services.

Revenue is recognized as control is passed, either over time or at a point in time.

The Company recognizes revenue over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the entity performs;

(b) the Company’s performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced; or

(c) the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date.

If the Company does not satisfy its performance obligation over time, it satisfies it at a point in time. Revenue will therefore be recognized when control is passed at a certain point in time. Factors that may indicate the point in time at which control passes include, but are not limited to:

(a) the entity has a present right to payment for the asset;

(b) the customer has legal title to the asset;

(c) the entity has transferred physical possession of the asset;

(d) the customer has the significant risks and rewards of ownership of the asset; or

(e) the customer has accepted the asset.

When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price that is allocated to that performance obligation.

While deferred payment terms may be agreed in certain circumstances, the deferral never exceeds twelve months.  The Company applies the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Sales of wires and cables

Revenue from sales of wires and cables is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the wires and cables.

Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at a contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

The amount of consideration can vary because of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. The promised consideration can also vary if a Company’s entitlement to the consideration is contingent on the occurrence or non-occurrence of a future event.

The Company estimates an amount of variable consideration by using either of (a) the expected value, or (b) the most likely amount, depending on which the Company expects to better predict the amount of consideration to which it will be entitled.

At the end of each reporting period, the Company updates the estimated transaction price (including updating its assessment of whether an estimate of variable consideration is constrained) to represent faithfully the circumstances present at the end of the reporting period and the changes in circumstances during the reporting period. The Company allocates any subsequent changes in the transaction price to the performance obligations on the same basis as at contract inception.

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design. Revenue from SDI is recognized when the Company satisfies performance obligations which occurs when the control of either goods or services are transferred to the customer. Transfer of control to a customer can occur either over a period of time or at a single point in time, and the transfer of controls  depends on the scope of service work orders.

Service work order that involves supply of cables, installation and/or labor (e.g. maintenance or repairing service) are not distinct and are identified to be one performance obligation satisfied over time since the elements of the service work order are highly interrelated, customized and modified for the customer. The Company selects an input method (cost-to-cost) to measure the progress toward satisfaction of the performance obligation. The Company’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation may revise when there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

Custodial and transportation services under bill and hold arrangement

A bill and hold arrangement is a contract under which an entity bills a customer for a product but the entity retains physical possession of the product until it is transferred to the customer at a point in time in the future. The Company identifies multiple performance obligations for its bill and hold arrangements, including sales of wires and cables, custodial service and transportation service.

Sales of wires and cables are recognized revenue when the products are placed into warehouse and the customer has accepted the products because the control of the products has transferred to the customer.

Custodial service revenue and transportation service are recognized over time. The transaction price allocated to these services is recognized as a contract liability at the time of the initial sales transaction and released on actual basis over the period of services.

Onerous operating contracts

Onerous contract is a type of contract in which the costs of meeting the obligations under the contract are higher than the economic benefits received under the contract.

The Company has contracts to supply products that may become onerous due to changing circumstances. The Company establishes the unavoidable costs of meeting the obligations under the contract as an accrued liability for the contractual responsibilities. For example, when rising copper price renders a contract onerous, the liability is calculated based on the difference between the copper price on the London Metal Exchange (the “LME”) at reporting date and the prices determined in the contracts, if the difference exceeds the profit of the original contract.  The unavoidable costs exceeding the profit of the contract is recognized in cost of sales or other operating expense based on the nature of the unavoidable costs.

Prior to January 1, 2018

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The specific recognition criteria described below must also be met before revenue is recognized.

Sales of manufactured goods and distributed products

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.14 Revenue recognition (continued)

SDI

The Company’s supply, delivery and installation services are closely interrelated in terms of their ultimate purpose or use and the customer is able to specify the major structural elements of the design.  Revenue of SDI is accounted for using the percentage-of-completion method, based on the customer certification of the length of cables laid with respect to the estimated total length of cables under the contract in accordance with IAS 11.

When the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is made. Provision for losses is recognized in the period in which they become evident. On a quarterly basis, the Company reviews the budget and forecast whether a loss provision should be recorded.

Bill and hold transaction

The Company recognizes revenue from sales of goods under bill and hold arrangements when they have yet to be delivered, since delivery is delayed at the buyer’s request and the buyer takes title and accepts the billing and that the usual terms of payment apply.

Moreover, the inventory is on hand, clearly identified and ready for delivery to the buyer at the time the revenue is recognized and it is highly probable that delivery will be made.

Sales of goods under bill and hold arrangements are the invoiced value, excluding value added tax after deducting discounts and allowances.

Rebates

Based on IAS 18, the amount of revenue arising on a transaction is usually determined by agreement between the entity and the buyer or user of the asset. It is measured at the fair value of the consideration received or receivable taking into account the amount of any trade discounts and volume rebates allowed by the entity. Consequently, where an entity provides sales incentives to a customer when entering into a contract these are usually treated as rebates and will be included in the measurement of (i.e. deducted from) revenue when the goods are delivered or services provided.

Provisions for rebates based on attainment of sales targets are estimated and accrued as each of the underlying sales transactions is recognized.

Provision for rebate should only be recorded when there is a contractually formal signed rebate contract exists.

At interim dates, if no reliable estimate can be made, the revenue recognized on the transaction should not exceed the consideration that would be received if the maximum rebates were taken. Therefore, the Company assumes that the customers will achieve the necessary sales volume target to earn the maximum rebate. The provisions are subject to continuous review and adjustment as appropriate based on the most recent information available to management.

As of the balance sheet date, the Company recalculates and adjusts the provision for rebate based on the actual sales.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.15 Foreign currencies

The Company’s consolidated financial statements are presented in USD, which is also the parent company’s functional currency. For each entity the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

Differences arising on settlement or translation of monetary items are recognized in profit or loss with the exception of monetary items that are designated as part of the hedge of the Company’s net investment of a foreign operation. These are recognized in other comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized in other comprehensive income or profit or loss, respectively).

Translation to the presentation currency

The results and financial position of an entity whose functional currency are translated into a different presentation currency using the following procedures:

a. assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

b. income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) are translated at exchange rates at the dates of the transactions;

c. all resulting exchange differences shall be recognized in other comprehensive income; and

d. for equity items, the historical rate is used; therefore, these equity items are not retranslated.

PEWSC functional currency change

Due to the increased sales to the domestic market in recent years, USD no longer faithfully represented the underlying transactions events and conditions of PEWSC in 2018. Management concluded that RMB should be the functional currency of PEWSC beginning on the financial year January 1, 2018.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.16 Employee benefits

The Company has both defined contribution and defined benefit obligation. The liabilities of the Company arising from defined benefit obligations, and the related current service cost, are determined using the projected unit credit method.

For defined benefit plans, the cost charged to the income statement consists of current service cost, net interest cost and past service cost. Remeasurements comprising of actuarial gains and losses are recognized in the period in which they occur, directly in other comprehensive income. They are included in other comprehensive income in the statement of changes in equity and in balance sheet. Remeasurements are not reclassified to profit or loss in subsequent periods. Contributions to defined contribution plans are charged to the income statement as incurred.  All past service costs are recognized at the earlier of when the amendment occurs.

Compensated absence

The cost of accumulating paid absences is recognized when employees render the service that increases their entitlement to future paid absences.

The cost of accumulating paid absences is measured as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period.

3.17 Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the net income attributable to shareholders of the Company by the weighted average number of common shares outstanding during the period, adjusted for own shares held.

In calculating diluted EPS, the number of shares should be that used in calculating the basic EPS, plus the weighted average number of shares that would be issued on the conversion of all the dilutive potential common shares into common shares. The earnings figure should be that used for basic EPS adjusted to reflect any post-tax effects from changes that would arise if the potential shares outstanding in the period were actually issued.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.18 Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity.  No gain or loss is recognized in the profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in additional paid-in capital. Voting rights related to treasury shares are nullified and no dividends are allocated to them.

3.19 Investments in an associate

The Company’s investment in its associates are accounted for using the equity method. An associate is an entity in which the Company has significant influence. Under the equity method, the investment is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment.

The income statement reflects the Company’s share of the results of operations of the associate. Any change in other comprehensive income of those investees is presented as part of the Company’s other comprehensive income.  When there has been a change recognized directly in the equity of the associate, the Company recognizes its share of any changes, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the interest in the associate.

The Company’s share of profit or loss of an associate is shown on the face of the income statement and represents profits or loss after tax and non-controlling interests in the subsidiaries of the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company.

After application of the equity method, the Company determines whether it is necessary to recognize an impairment loss on its investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in associates is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in share of losses of associates in the income statement.

Upon loss of significant influence over the associate, the Company measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.20 Government grant

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as other income on a systematic basis over the periods that the related costs, which it is intended to compensate, are expensed.  When the grant relates to an asset, it is recognized as a liability in equal amounts over the expected useful life of the related asset.

The government grants received during 2019 and 2018 were immaterial. See Note 22 for further details.

3.21 Non-current assets held for sale

The Company classifies non-current assets and disposal groups as held for sale/distribution to owners if their carrying amounts will be recovered principally through a sale/distribution rather than through continuing use. Non-current assets and disposal groups are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.  

Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortized.

When equity method investments are classified as held for sale, the investor discontinues the use of the equity method from the date that the investment (or the portion of it) is classified as held for sale; instead, the associate or joint venture is then measured at the lower of its carrying amount and fair value less cost to sell.

3.22 Finance and other income

Interest income

Interest revenue shall be calculated by using the effective interest method. This shall be calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the entity shall apply the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Rental income

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in revenue due to its operating nature.

Dividends

Revenue is recognized when the company’s right to receive the payment is established, which is generally when shareholders approve the dividend.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Revenue recognition - identifying single performance obligation in SDI projects  

SDI projects comprise various activities such as supply cables, installation, jointing services and testing services. Those tasks are activities to fulfil the cable management service (supply and installation) and not a separate promise within the context of the contract. The Company determines the supply cables and installation services are not capable of being distinct and identifies to be one performance obligation because of (i) the customer could not benefit from the installed cables on its own, neither using it or to sell it for an amount greater than scrap value; (ii) the Company is providing a significant integration service, and it would not be able to fulfil its promise to transfer the cables separately from its promise to the subsequent installation; (iii) the cables and installation are highly interrelated, and the customer could not benefit from the cables being delivered without subsequent installation.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Impairment of non-financial assets

At each reporting date or whenever events indicate that the asset’s value has declined or significant changes in the market with an adverse effect have taken place, the Company assesses whether there is an indication that an asset in the scope of IAS 36 may be impaired. If any indication exists, the Company completes impairment testing for the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or CGU is the higher of fair value less costs to sell and its value in use. The fair value less costs of disposal calculation is based on available data from binding sale arrangements, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposal of the assets. The value in use is measured at the net present value of the future cash flows the entity expects to derive from the asset or CGU. Cash flow projection involves subjective judgments and estimates which include the estimated useful lives of property, plant and equipment, capacity that generates future cash flows, capacity of physical output, potential fluctuations of economic cycle in the industry and the Company’s operating situation. See Note 15 – Property, Plant and Equipment.

Fair value of financial instruments

Where the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including income approach (for example, the discounted cash flows model) or the market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 11 for more details.

Measurement of ECL allowance for trade receivables

The Company applies the IFRS 9 simplified approach to measure lifetime expected loss allowance for trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of the sales over a period of 36 month before December 31, 2019 and the historical credit loss experience within this period. The historical loss rates are adjusted to reflect current and forward-looking information on general economic conditions affecting the ability of the customers to settle the receivables. The Company has identified the default rate of the countries where it sells the goods and services as the most relevant factor and adjusts the historical loss rates based on the expected changes accordingly.

Refer to Note 12 and Note 27 for more information regarding the impairment of trade receivables and the related credit risks.

Net realizable value of inventory

Net realized value is the estimated selling price in the ordinary course of business less estimated costs to completion and the estimated costs necessary to make the sale. Management makes reference to actual sales prices after reporting date when making their estimate of net realizable value.

Refer to Note 13 for more information regarding the net realizable value of inventory.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the taxing authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

As of December 31, 2019, the Company has $20,580 (2018: $16,762) of tax losses carried forward. These losses related to subsidiaries that have a history of losses, do not expire and may not be used to offset taxable income elsewhere in the Company except for $546 (2018: $644) that will be realized. The subsidiaries do not have any tax planning opportunities available that could support the recognition of these losses as deferred tax assets. On this basis, the Company has determined that it cannot recognize deferred tax assets on the tax losses carried forward.

If the Company was able to recognize all unrecognized deferred tax assets, profit and equity would have increased by $5,068 (2018: $3,876; 2017: $3,947). Further details on taxes are disclosed in Note 8.

Post-employment benefits under defined benefit plans

In accordance with the Thailand labor law, Charoong Thai and its subsidiaries are obliged to make payment to retiring employees, at rate of 1 to 13 times of their final monthly salary rate, depending on the length of service.  In addition, Charoong Thai also has the extra benefit plan to make payment to qualified retiring employees at rates of 1 to 26 times of their final monthly salary.

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexity of the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the inactive corporate bond trading in Thailand, taken into account the yields on Thai Government Bonds and extrapolated maturity corresponding to the expected duration of the defined benefit obligation.

The mortality rate is based on most recent mortality investigation on policyholders of life insurance companies in Thailand. Future salary increases and pension increases are based on expected future inflation rates derived from external economic data, together with historical experience of Charoong Thai.

Further details about the assumptions used, including a sensitivity analysis, are given in Note 21.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.23 Significant accounting judgements, estimates and assumptions (continued)

Revenue recognition of SDI projects

Changes in percentage of completion would result in changes in contract revenue and costs recognized in the statement of comprehensive income during the year. Significant estimation by management is also required in assessing the recoverability of the contracts based on estimated total contract revenue and contract costs.  In making the estimation, management’s evaluation is based on the actual level of work performed and past experience.

The carrying amount of the Company’s gross amounts due from customers for contract work-in-progress is disclosed in Note 14.

XML

Right of Use Assets - Summary of Prepaid Land Lease Payments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Disclosure Of Quantitative Information About Rightofuse Assets [Abstract]
Carrying amount, beginning balance	$ 1,103
Recognized lease expense during the year	(38)	$ (35)
Exchange difference	(53)
Carrying amount, ending balance	1,012	$ 1,103
Current portion included in prepayments	34
Non-current portion included in prepaid land lease payments	$ 978		$ 0

XML

Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Disclosure Of Fair Value Measurement Of Assets Liabilities [Abstract]

Fair Value Measurement

26. FAIR VALUE MEASUREMENT

Fair value information:
As of December 31, 2019	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(3	)		—		(3	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		4,062			—		—			4,062
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		11,566			—		—			11,566
Office buildings		1,460			—		—			1,460

There have been no transfers between Level 1 and Level 2 during the year.

Fair value information:
As of December 31, 2018	Fair value measurement using
	Total			Quoted  prices in active markets (Level 1)		Significant observable inputs (Level 2)			Significant unobservable inputs (Level 3)
	US$’000			US$’000		US$’000			US$’000
Financial assets (liabilities) - derivatives (Note 11.(a))
Foreign exchange forward contract		(142	)		—		(142	)		—
Financial assets at fair value through other comprehensive income (Note 11.(a))
Unquoted equity instrument
Thai Metal Processing Co., Ltd.		2,332			—		—			2,332
Assets for which fair values are disclosed:
Investment properties (Note 17)
Land		10,656			—		—			10,656
Office buildings		1,397			—		—			1,397

There have been no transfers between Level 1 and Level 2 during the year.

XML

Contract Assets - Schedule of Assets Related to Contracts with Customers (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
Contract Assets [Abstract]
Contract assets	$ 4,686	$ 1,460	$ 162

XML

Property, Plant and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [Line Items]
Impairment loss	$ 546,000	$ 11,000	$ 223,000
Vehicles [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Carrying value of motor vehicles under financial leases	0	$ 66,000	$ 50,000
Siam Fiber Optics Co., Ltd. [Member]
Disclosure of detailed information about property, plant and equipment [Line Items]
Recoverable amount of CGU	$ 0
Key assumptions used in calculating the value in use, discount rate	14.80%

XML

Approval of the Financial Statements

12 Months Ended

Dec. 31, 2019

Statement Of Financial Position [Abstract]

Approval of the Financial Statements

30. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved and authorized for issuance by the board of directors on April 24, 2020.