Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

Major Components Of Tax Expense Income [Abstract]

Major Components of Income Tax (Benefits) Expenses

The major components of income tax (benefits) expenses for the years ended December 31, 2021, 2020 and 2019 are:

	2021			2020			2019
	US$’000			US$’000			US$’000
Consolidated income statements
Current income tax:
Current income tax charge		3,078			3,376			1,699
Previously unrecognized tax loss used to reduce current income tax		(96	)		(89	)		—
Adjustments for current income tax of prior years		—			(1	)		(16	)
Total current income tax		2,982			3,286			1,683
Deferred tax (benefits)/expenses:
Relating to origination and reversal of temporary differences		(4,327	)		782			374
Previously unrecognized tax loss used to reduce deferred tax expenses		—			(52	)		—
Total deferred tax (benefits)/expenses		(4,327	)		730			374
Income tax (benefit) expense reported in the income statement		(1,345	)		4,016			2,057
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		147			(358	)		334
Effect of change in tax rate		—			—			—
Net income (loss) on actuarial gains and losses
Recognized during the year		112			40			(345	)
Effect of change in tax rate		—			—			—
Income tax expense (benefit) charged to other comprehensive (loss) income		259			(318	)		(11	)

Reconciliation of Difference Between Tax Computed at Statutory Tax Rate and Income Tax (Benefits) Expenses

The reconciliation of difference between tax computed at the statutory tax rate and income tax (benefits) expenses reported in the consolidated income statement is as follows:

	2021			2020			2019
	US$’000			US$’000			US$’000
(Loss)/profit before tax		(9,857	)		7,725			1,106
Tax at statutory rate of 20% (2020: 20%; 2019: 20%)		(1,971	)		1,545			221
Foreign income taxed at different rate		1,465			1,100			499
Expenses not deductible for tax purpose		94			255			221
Utilization of previously unrecognized tax losses		(96	)		(89	)		—
Tax benefit arising from previously unrecognized tax losses		—			(52	)		—
Net deferred tax asset not recognized		327			1,151			949
Written-off deferred tax		—			—			218
Tax exempt on income		(99	)		(57	)		(144	)
Uncertain tax position		(1,173	)		(273	)		(454	)
Return to provision adjustment		—			(1	)		(16	)
Deferred tax liability arising from undistributed earnings		(309	)		270			215
Withholding tax on dividends		452			163			355
Others		(35	)		4			(7	)
Income tax (benefit) expense reported in consolidated income statement		(1,345	)		4,016			2,057

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,
	2021			2020			2021			2020			2019
	US$’000			US$’000			US$’000			US$’000			US$’000
Outside basis differences		(3,790	)		(4,099	)		(309	)		270			215
Revaluations of financial assets at fair value through other comprehensive income		(469	)		(322	)		—			—			—
Accrued interest income		—			—			—			(172	)		13
Unutilized building allowance (net)		(21	)		(12	)		9			(24	)		(98	)
Unused tax losses		204			54			(162	)		481			119
Allowance for doubtful accounts		167			281			105			(21	)		47
Inventory impairment		3,170			412			(2,914	)		137			147
Rebates and other accrued liabilities		617			482			(170	)		(17	)		(23	)
Unpaid retirement benefits		1,327			1,504			26			41			(81	)
Deferred revenue and cost of sales		30			18			(15	)		5			(6	)
Actuarial loss		644			756			—			—			—
Unabsorbed depreciation		731			680			(67	)		9			57
Mark-to-Market value of forward contract		—			—			—			—			28
Provision for loss on onerous sale contract		860			—			(897	)		—			—
Leases		48			51			3			(1	)		(23	)
Others		(382	)		(324	)		64			22			(21	)
Deferred tax (benefits)/expenses								(4,327	)		730			374
Net deferred tax assets		3,136			(519	)

Disclosure Of Reconciliation Of Changes In Deferred Tax Liability Asset Explanatory

Reconciliation of deferred tax assets, net

	2021			2020			2019
	US$’000			US$’000			US$’000
Opening balance as of January 1		(519	)		(200	)		(6	)
Tax benefit/(expense) during the period recognized in profit or loss		4,327			(730	)		(374	)
Tax (expense)/benefit during the period recognized in other comprehensive income		(259	)		318			11
Exchange difference on translation foreign operations		(413	)		93			169
Closing balance as of December 31		3,136			(519	)		(200	)

Year of Expiration and Amount of Available Unused Net Operating Losses

Our Company has available unused net operating losses which arose in Thailand, China, Hong Kong and Singapore as of December 31, 2021 and 2020, that may be applied against future taxable income and that expire as follows respectively:

	As of December 31,
Year of expiration	2021		2020
	US$’000		US$’000
2021		—		3,905
2022		2,090		2,437
2023		4,353		4,299
2024		3,156		3,226
2025		1,912		1,811
2026		3,184		—
No expiration		550		1,620
		15,245		17,298

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	2021			2020			2019
	US$’000			US$’000			US$’000
Balance as of January 1		339			451			674
Additions based on tax positions related to the current year		—			—			—
Decrease due to lapses in statute of limitations		(312	)		(144	)		(215	)
Exchange difference		1			32			(8	)
Balance as of December 31		28			339			451

Accrued Interest and Penalties on Uncertain Tax Position

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

	As of December 31,
	2021		2020		2019
	US$’000		US$’000		US$’000
Accrued interest on uncertain tax position		46		597		713
Accrued penalties on uncertain tax position		28		339		384
Total accrued interest and penalties on uncertain tax position		74		936		1,097