TRADE AND BILLS RECEIVABLE

12 Months Ended

Dec. 31, 2021

Trade And Bills Receivable

TRADE AND BILLS RECEIVABLE

15. TRADE AND BILLS RECEIVABLE

	December 31,
	2020			2021			2021
	CNY			CNY			US$
	(As adjusted)
Non-current
Trade receivables from third parties		35,481			17,033			2,680
Less: Impairment allowance		(3,805	)		(7,532	)		(1,185	)
Total of Non-current trade receivables		31,676			9,501			1,495
Current
Trade receivables from third parties		39,660			51,608			8,119
Less: Impairment allowance		(9,969	)		(10,082	)		(1,586	)
Total of current trade receivables		29,691			41,526			6,533
Bills receivable		80			—			—
Total		61,447			51,027			8,028

The Group’s trade receivables arise from the provision of construction services for wastewater treatment projects, sale of wastewater treatment equipment, and operation service of the service concession arrangement. The majority of the Group’s customers are town/village government entities or main contractors of the governmental infrastructure projects whose time of payment for the service or goods received from the Group depend on the appropriation and approval of the fiscal funds. Accordingly, the Group granted various credit terms to different customers, depending on the nature and background of the customers and projects. The Group generally granted customers a credit period of one month to three months, except for some of the customers for construction services, sales of wastewater treatment equipment and maintenance services who will generally settle the amounts owed to the Group in a number of specified installments covering periods ranging from one year to five years. Apart from the trade receivables related to the service concession arrangement which bear no interest, the trade receivables of construction services, operation and maintenance services and sale of wastewater treatment equipment bear an imputed interest rate of 4.75% per annum.

An aging analysis of the trade and bills receivables as of the end of the reporting period, based on the invoice date and net of loss allowance, is as follows:

	December 31,
	2020		2021		2021
	CNY		CNY		US$
	(As adjusted)
Within 1 year		12,167		19,026		2,994
Between 1-2 years		20,125		5,106		803
Between 2-3 years		18,794		12,796		2,013
Over 3 years		10,361		14,099		2,218
Total		61,447		51,027		8,028

The movement in the loss allowance for trade receivables during the years indicated are as follows:

	December 31,
	2020		2021		2021
	CNY		CNY		US$
	(As adjusted)
Beginning of the year		9,230		13,774		2,167
Provision for expected credit loss, net		4,544		3,840		604
End of the year		13,774		17,614		2,771

The Group elected to apply the simplified approach for providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables were grouped based on the shared credit risk characteristics and the days past due. The ECLs below also incorporate forward-looking information. The impairment as of December 31, 2020 and 2021 was determined as follows:

									Past due
	Current		Within 1 year			1-2 years			2-3 years			Over 3 years			Total
As of December 31, 2020 (As adjusted):
Expected credit loss rate				5	%		12	%		11	%		45	%		18	%
Gross carrying amount (CNY)		5,166		7,273			22,826			21,043			18,833			75,141
Impairment allowances (CNY)				352			2,701	(i)		2,249	(ii)		8,472	(iii)		13,774
As of December 31, 2021:
Expected credit loss rate				6	%		26	%		13	%		48	%		26	%
Gross carrying amount (CNY)		3,670		16,311			6,865			14,712			27,083			68,641
Impairment allowances (CNY)				955			1,759			1,916	(ii)		12,984	(iii)		17,614
Impairment allowances (US$)				150			277			301			2,043			2,771

(i) The impairment allowances included an amount of CNY221 (as adjusted) as of December 31, 2020, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(ii) The impairment allowances included CNY1,035 (as adjusted) and CNY221 as of December 31, 2020 and 2021, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(iii) The impairment allowances included an amount of CNY5,055 (as adjusted) and CNY4,646 as of December 31, 2020 and 2021, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.