Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Sky Solar Holdings, Ltd. |
Entity Central Index Key | 0001594124 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 419,546,514 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME OR EXPENSE - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
Related parties | $ 324 | $ 286 | $ 788 |
Non-related parties | 64,345 | 56,447 | 65,137 |
Total revenue | 64,669 | 56,733 | 65,925 |
Cost of sales and services | (30,262) | (23,201) | (30,911) |
Gross profit | 34,407 | 33,532 | 35,014 |
Impairment loss on IPP solar parks | (4,541) | (5,221) | (2,151) |
Provision on receivables and other non-current assets | (626) | ||
Selling expenses | (2,610) | (554) | (882) |
Administrative expenses | (27,948) | (25,110) | (29,744) |
Other operating income | 25,630 | 2,068 | 13,163 |
Profit from operations | 24,312 | 4,715 | 15,400 |
Investment income | 580 | 7,891 | 498 |
Other losses | (22,397) | (39,986) | (4,971) |
Finance costs | (17,330) | (12,200) | (6,368) |
(Loss) profit before taxation | (14,835) | (39,580) | 4,559 |
Income tax (expense) credit | (7,285) | 6,530 | (1,277) |
(Loss) profit for the year | (22,120) | (33,050) | 3,282 |
Other comprehensive (loss) income that may be subsequently reclassified to profit or loss: | |||
Currency translation difference | (3,190) | 5,579 | (57) |
Share of other comprehensive income of associates | 136 | ||
Fair value loss arising from cash flow hedges | (446) | ||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary | 1,126 | ||
Total comprehensive (loss) income for the year | (25,310) | (27,471) | 4,041 |
(Loss) profit for the year attributable to owners of the Company | (21,955) | (33,171) | 3,784 |
(Loss) profit for the year attributable to non-controlling interests | (165) | 121 | (502) |
(Loss) profit for the year | (22,120) | (33,050) | 3,282 |
Total comprehensive (loss) income attributable to: | |||
Owners of the Company | (25,226) | (26,738) | 4,242 |
Non-controlling interests | (84) | (733) | (201) |
Total comprehensive (loss) income for the year | $ (25,310) | $ (27,471) | $ 4,041 |
(Loss) earnings per share-Basic | $ (0.05) | $ (0.1) | $ 0.01 |
(Loss) earnings per share-Diluted | $ (0.05) | $ (0.1) | $ 0.01 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 43,831 | $ 46,084 |
Restricted cash | 44,182 | 40,716 |
Amounts due from related parties | 16,428 | 16,713 |
Trade and other receivables | 20,535 | 34,582 |
Contract assets | 731 | |
Inventories | 626 | 307 |
Assets classified as held for sale | 48,387 | |
Current Assets | 174,720 | 138,402 |
Non-current assets: | ||
Property, plant and equipment | 684 | 916 |
Investment property | 1,815 | 1,516 |
IPP solar parks | 353,050 | 397,405 |
Intangible assets | 85 | 126 |
Interests in associates | 2,333 | 2,566 |
Amounts due from related parties | 5,050 | 5,632 |
Deferred tax assets | 32,382 | 23,500 |
Other non-current assets | 15,098 | 11,045 |
Non-current Assets | 410,497 | 442,706 |
Total assets | 585,217 | 581,108 |
Current liabilities: | ||
Trade and other payables | 31,972 | 29,043 |
Amounts due to related parties | 211 | 28 |
Taxes payable | 11,806 | 2,340 |
Borrowings | 49,700 | 19,702 |
Other current liabilities | 130,323 | 120,820 |
Liabilities directly associated with assets classified as held for sale | 336 | |
Total current liabilities | 224,348 | 171,933 |
Non-current liabilities: | ||
Borrowings | 207,057 | 230,027 |
Other non-current liabilities | 72,446 | 70,136 |
Deferred tax liabilities | 3,159 | 2,784 |
Total non-current liabilities | 282,662 | 302,947 |
Total liabilities | 507,010 | 474,880 |
Total assets less total liabilities | 78,207 | 106,228 |
Equity: | ||
Share capital | 8 | 8 |
Reserves | 73,178 | 101,115 |
Equity attributable to owners of the Company | 73,186 | 101,123 |
Non-controlling interests | 5,021 | 5,105 |
Total equity | 78,207 | 106,228 |
Total liabilities and equity | $ 585,217 | $ 581,108 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Share capital | Share-based compensation reserve | Translation reserve | Cash flow Hedge reserve | Accumulated losses | Additional paid-in capital | Legal reserve | [1] | Total | Non- controlling interests | Total | |
Equity at beginning of period at Dec. 31, 2015 | $ 5 | $ 43,143 | $ (21,627) | $ (680) | $ (148,947) | $ 240,430 | $ 527 | $ 112,851 | $ (132) | $ 112,719 | ||
Profit (loss) for the year | 3,784 | 3,784 | (502) | 3,282 | ||||||||
Currency translation difference | (358) | (358) | 301 | (57) | ||||||||
Share of other comprehensive income of associates | 136 | 136 | 136 | |||||||||
Fair value loss arising from cash flow hedges | (446) | (446) | (446) | |||||||||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary (Note 28 a) | 1,126 | 1,126 | 1,126 | |||||||||
Total comprehensive (loss) income for the year | (222) | $ 680 | 3,784 | 4,242 | (201) | 4,041 | ||||||
Share-based compensation | 997 | 997 | 997 | |||||||||
Transfer to legal reserve | (240) | 240 | ||||||||||
Non-controlling interest addition | [1] | 6,171 | 6,171 | |||||||||
Ordinary shares consideration for business combination | [2] | 3 | 10,144 | 10,147 | 10,147 | |||||||
Issuance cost | [3] | (153) | (153) | (153) | ||||||||
Equity at end of period at Dec. 31, 2016 | 8 | 44,140 | (21,849) | (145,403) | 250,421 | 767 | 128,084 | 5,838 | 133,922 | |||
Profit (loss) for the year | (33,171) | (33,171) | 121 | (33,050) | ||||||||
Currency translation difference | 6,433 | 6,433 | (854) | 5,579 | ||||||||
Total comprehensive (loss) income for the year | 6,433 | (33,171) | (26,738) | (733) | (27,471) | |||||||
Share-based compensation | (223) | (223) | (223) | |||||||||
Equity at end of period at Dec. 31, 2017 | 8 | 43,917 | (15,416) | (178,574) | 250,421 | 767 | 101,123 | 5,105 | 106,228 | |||
Adoption of IFRS | [4] | (1,944) | (1,944) | (1,944) | ||||||||
Adjusted Equity at beginning of period at Dec. 31, 2017 | 8 | 43,917 | (15,416) | (180,518) | 250,421 | 767 | 99,179 | 5,105 | 104,284 | |||
Profit (loss) for the year | (21,955) | (21,955) | (165) | (22,120) | ||||||||
Currency translation difference | (3,271) | (3,271) | 81 | (3,190) | ||||||||
Total comprehensive (loss) income for the year | (3,271) | (21,955) | (25,226) | (84) | (25,310) | |||||||
Disposal of subsidiaries | $ (767) | (767) | (767) | |||||||||
Equity at end of period at Dec. 31, 2018 | $ 8 | $ 43,917 | $ (18,687) | $ (202,473) | $ 250,421 | $ 73,186 | $ 5,021 | $ 78,207 | ||||
[1] | During the year ended December 31, 2016, the Group has non-controlling interest addition amounting to US$1.4 million upon acquisition of 23 solar parks in USA. During the year ended December 31, 2016, Renewable Capital Investment II (“RCI 2”) entered into equity conversion agreements with its EPC supplier to convert account payable for EPC service amounting to US$4.8 million into the equity of the 5 Uruguay project companies of RCI 2. | |||||||||||
[2] | On July 15, 2016, the Group completed acquisition of 23 solar parks with 22MW capacity in USA (Note 32). As part of the consideration, 29,519,844 ordinary shares were validly issued with par value of 0.0001 per share. As of the acquisition date, the closing stock price was US$2.75/ADS or US$0.34375 per share, which made the value of total issued shares US$10.1 million. | |||||||||||
[3] | During the year ended December 31, 2016, the Group incurred US$153 thousand cost directly related to issuance of restricted shares and recorded it in additional paid in capital. | |||||||||||
[4] | Due to the application IFRS 9 in 2018, the Group reconciliates of statement of financial on the date of initial application. The impact on profit and loss of the reclassification of the receivables from RisenSky Solar S.a.r.l. and Mr. Su Weili in amount due from related parties to fair value through profit or loss and the impairment of financial assets applying the expected credit loss model as at January 1, 2018 is USD 1.9 million. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | Jul. 15, 2016USD ($)$ / EquityInstrumentsinstrument$ / sharesitemMW | Dec. 31, 2016USD ($)instrumentprojectitem$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Non-controlling interest addition | [1] | $ 6,171,000 | ||
Accounts payable converted to equity | $ 4,800,000 | |||
Number of Uruguay projects | project | 5 | |||
Cost related to issuance of restricted shares | [2] | $ 153,000 | ||
Adoption of IFRS | [3] | $ (1,944,000) | ||
Ordinary shares | ||||
Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||
Adoption of IFRS 9 | ||||
Adoption of IFRS | $ 1,900,000 | |||
Acquisition of solar parks in the USA | ||||
Non-controlling interest addition | $ 1,400,000 | |||
Number of solar parks acquired | item | 23 | 23 | ||
Capacity (in MW) | MW | 22 | |||
Acquisition of solar parks in the USA | Ordinary shares | ||||
Number of shares issued | instrument | 29,519,844 | 29,519,844 | ||
Par value per share | $ / shares | $ 0.0001 | |||
Closing price | $ / shares | 0.34375 | |||
Issuance of ordinary shares | $ 10,100,000 | $ 10,147,446 | ||
Acquisition of solar parks in the USA | ADS | ||||
Closing price | $ / EquityInstruments | 2.75 | |||
[1] | During the year ended December 31, 2016, the Group has non-controlling interest addition amounting to US$1.4 million upon acquisition of 23 solar parks in USA. During the year ended December 31, 2016, Renewable Capital Investment II (“RCI 2”) entered into equity conversion agreements with its EPC supplier to convert account payable for EPC service amounting to US$4.8 million into the equity of the 5 Uruguay project companies of RCI 2. | |||
[2] | During the year ended December 31, 2016, the Group incurred US$153 thousand cost directly related to issuance of restricted shares and recorded it in additional paid in capital. | |||
[3] | Due to the application IFRS 9 in 2018, the Group reconciliates of statement of financial on the date of initial application. The impact on profit and loss of the reclassification of the receivables from RisenSky Solar S.a.r.l. and Mr. Su Weili in amount due from related parties to fair value through profit or loss and the impairment of financial assets applying the expected credit loss model as at January 1, 2018 is USD 1.9 million. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating activities | |||
(Loss) profit before taxation | $ (14,835) | $ (39,580) | $ 4,559 |
Adjustments for: | |||
Interest income | (391) | (445) | (325) |
Finance costs | 17,330 | 12,200 | 6,368 |
Depreciation of property, plant and equipment | 204 | 298 | 271 |
Depreciation of IPP solar parks | 19,414 | 14,272 | 14,208 |
Amortization of intangible assets | 52 | 44 | 71 |
Warranty reversal | (24) | (308) | (451) |
Share-based compensation | (223) | 997 | |
Fair value changes on other non-current liability | 25,607 | 39,105 | 2,957 |
Loss on disposal of property, plant and equipment | 78 | 15 | |
Loss on disposal of intangible assets | 1 | ||
Impairment loss on IPP solar parks | 4,541 | 5,221 | 2,151 |
Fair value changes on financial assets | (814) | ||
Provision on receivables and other non-current assets | (626) | ||
Gain on disposal of associates | (7,448) | ||
Share of profit of associates | (189) | (173) | |
Gain on disposal of IPP solar parks | (26,711) | (1,248) | |
Gain on disposal of a subsidiary | 1,288 | (1,875) | (11,768) |
Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as FVTPL | (248) | (201) | 641 |
Unrealized gain from sales to associates | 242 | ||
Operating cash flows before movements in working capital | 25,928 | 21,060 | 18,516 |
Increase in inventories | (320) | (271) | (32,739) |
(Increase)/ decrease in trade and other receivables | 13,751 | (4,484) | (5,962) |
(Increase)/ decrease in amounts due from related parties | 189 | (10,436) | 2,145 |
Decrease in amount due from customers for contract work | (731) | ||
Increase/ (decrease) in trade and other payables | (4,603) | 8,085 | (18,249) |
Decrease in amounts due to related parties | (5,893) | ||
Cash generated from/ (used in) operations | 34,214 | 8,061 | (36,289) |
Income taxes paid | (5,837) | (9,470) | (6,265) |
Net cash generated from/ (used in) operating activities | 28,377 | (1,409) | (42,554) |
Investing activities | |||
Withdrawal of restricted cash | 40,716 | 29,850 | 5,560 |
Placement of restricted cash | (44,182) | (40,716) | (29,850) |
Interest income received | 391 | 445 | 325 |
Purchases of property, plant and equipment | (114) | (375) | (349) |
Purchases of intangible assets | (10) | (42) | (40) |
Proceeds for Investment in other non-current assets | (4,833) | ||
Payments for IPP solar parks | (41,199) | (92,931) | (43,581) |
Proceeds from disposal of IPP solar parks | 46,195 | 1,979 | 4,839 |
Return of investment in associates | 9,505 | 1,554 | |
Dividends received from associates | 302 | 427 | 415 |
Disposal of subsidiaries | (64) | 41,056 | 4,118 |
Acquisition of subsidiaries | (1,113) | ||
Net cash used in investing activities | (2,798) | (50,802) | (58,122) |
Financing activities | |||
Proceeds from bank borrowings | 11,537 | 84,865 | 11,403 |
Repayment of bank borrowings | (13,382) | (2,164) | (4,371) |
Proceeds from other borrowings | 29,269 | 35,059 | 51,833 |
Repayment of other borrowings | (20,246) | (25,116) | (6,372) |
Issuance cost of IPO/restricted shares | (153) | ||
Repayment of other Current liabilities | (18,202) | ||
Changes of financial liabilities | 44,000 | ||
Interest paid | (15,800) | (12,386) | (6,368) |
Net cash generated from financing activities | (26,824) | 80,258 | 89,972 |
Net (decrease)/ increase in cash and cash equivalents | (1,245) | 28,047 | (10,704) |
Cash and cash equivalents, including cash classified as held for sale, at beginning of the year | 46,084 | 16,435 | 26,272 |
Cash and cash equivalents at beginning of the year | 46,084 | 12,518 | |
Effects of exchange rate changes on the balance of cash held in foreign currencies | (880) | 5,519 | 867 |
Cash and cash equivalents, including cash classified as held for sale, at end of the year | 43,959 | 46,084 | 16,435 |
Cash and cash equivalents at end of the year | $ 43,831 | $ 46,084 | $ 12,518 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Analysis of the balances of cash and cash equivalents | |||
Bank balances and cash | $ 43,831 | $ 46,084 | $ 12,518 |
Bank balances and cash included in assets classified as held for sale | 128 | 3,917 | |
Cash and cash equivalents at the end of the year | 43,959 | 46,084 | 16,435 |
Supplemental information of non-cash transactions: | |||
Unsettled trade and other payable for acquisitions of property, plant and equipment and IPP solar parks | $ 14,600 | $ 7,100 | $ 12,600 |
CORPORATION INFORMATION AND BAS
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 1. CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS SKY SOLAR HOLDINGS, LTD. (the “Company”) was incorporated on August 19, 2013 as an exempted company with limited liability in the Cayman Islands under the Companies Law of the Cayman Islands. Concurrent with the establishment of the Company, the Company became the holding company of Sky Solar Power Ltd., which is a limited liability entity incorporated in the British Virgin Islands (“BVI”) and its subsidiaries (together with the Company hereinafter collectively referred to as the “Group”). Sky Solar Holdings Co., Ltd. (“Sky Solar Holdings”) which is controlled by Mr. Su Weili, was the holding company of Sky Solar Power Ltd. immediately before the establishment of the Company. The immediate holding company of the Company is Sky Power Group Ltd., which was incorporated on June 24, 2013 as an exempted company with limited liability in the Cayman Islands. The ultimate holding company is Flash Bright Power Ltd., which is a private limited entity established in the BVI and is controlled by Mr. Su. Accordingly, the assets and liabilities of the Group are the same immediately before and after the reorganization. This legal reorganization, whereby the Company and Sky Power Group Ltd. were established as intermediate entities between Sky Solar Holdings and Sky Solar Power Ltd., through a one-to-one share swap, has been accounted for as a reorganization of entities under common control. The assets and liabilities of the Group are the same immediately before and after the legal reorganization and the financial statements of the Company have been presented as if the legal reorganization was consummated on the first date of the periods presented. The Company completed its IPO on the NASDAQ on November 13, 2014, with Capital Market symbol of “SKYS”. The Company is an investment holding company. The subsidiaries of the Company are principally engaged in the following activities: (i) sell electricity generated from solar parks owned by the Group as independent power producer (“IPP”); (ii) pipeline (including obtaining permits required for solar power projects and sourcing of solar modules) and provide engineering, construction and procurement services (“Pipeline plus EPC”); (iii) provide operating and maintenance services for solar parks (“Provision of O&M services”); (iv) sales of solar modules and (v) build and transfer of solar parks (“BT”). The consolidated financial statements are presented in United States dollars (“USD”), which is the functional currency of the Company. The functional currencies of the subsidiaries of the Company are the currencies in which the transactions of principal operations of each subsidiary are predominantly denominated. |
APPLICATION OF NEW AND AMENDMEN
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | 12 Months Ended |
Dec. 31, 2018 | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | 2. APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS 2.1 New Standards adopted as at 1 January 2018 IFRS 9 Financial Instruments IFRS 9 replaces IAS 39 ‘Financial Instruments: Recognition and Measurement’. It makes major changes to the previous guidance on the classification and measurement of financial assets and introduces an ‘expected credit loss’ model for the impairment of financial assets. When adopting IFRS 9, the Group has applied transitional relief and opted not to restate prior periods. Differences arising from the adoption of IFRS 9 in relation to classification, measurement, and impairment are recognized in retained earnings. The adoption of IFRS 9 has impacted the following areas: · the classification and measurement of the Group’s financial assets. Management holds financial assets to hold and collect the associated cash flows. · the receivables from RisenSky Solar S.a.r.l. and Mr. Su Weili in amount due from related parties are now measured at fair value through profit or loss as the cash flows are not solely payments of principal and interest (SPPI). The Group did not elect to irrevocably designate any of the amounts at fair value with changes presented in other comprehensive income. · the impairment of financial assets applying the expected credit loss model. This affects the Group’s trade and most other receivables, contract assets, amounts due from related parties and most other non-current assets. For trade receivables and contracts assets, the Group applies a simplified model of recognizing lifetime expected credit losses as these items do not have a significant financing component. On the date of initial application, 1 January 2018, the financial instruments of the Group were reclassified as follows: Measurement Category Carrying Amount Closing Balance Opening Balance Original IAS 39 New IFRS 9 31 December, Adoption of 1 January, Category Category 2017(IAS 39) IFRS 9 2018(IFRS 9) Cash and cash equivalents Amortised cost Amortised cost 46,084 — 46,084 Restricted cash Amortised cost Amortised cost 40,716 — 40,716 Trade and other receivables Amortised cost Amortised cost 22,150 (1,044) 21,106 Other non-current assets Amortised cost Amortised cost 9,634 (467) 9,167 Amounts due from related parties CNE Amortised cost Amortised cost 1,493 — 1,493 Su Weili Amortised cost FVTPL 15,220 — 15,220 RisenSky Solar S.a.r.l. Amortised cost FVTPL 5,632 (433) 5,199 140,929 (1,944) 138,985 There has been no changes to the classification or measurement of financial liabilities as a result of the application of IFRS 9. Reconciliation of statement of financial position balances from IAS 39 to IFRS 9 at 1 January 2018: IAS 39 IFRS 9 Carrying Carrying amount amount Retained 31 December, 1 January, earnings 2017 Reclassification Remeasurement 2018 effect Fair value through profit or loss Amounts due from related parties — 19,605 (433) 19,172 (433) Amortised cost Cash and cash equivalents 46,084 — — 46,084 — Restricted cash 40,716 — — 40,716 — Amount due from related parties 22,345 (19,605) — 2,740 — Trade and other receivables 22,150 — (1,044) 21,106 (1,044) Other non-current assets 9,634 — (467) 9,167 (467) Total financial asset balances, reclassification and remeasurement at 1 January 2018 140,929 — (1,944) 138,985 (1,944) The details of impact of applying the expected credit loss on each account and affect in reclassification can be referred to Note 34. IFRS 15 Revenue from Contracts with Customers IFRS 15 ‘Revenue from Contracts with Customers’ and the related ‘Clarifications to IFRS 15 Revenue from Contracts with Customers’ (hereinafter referred to as ‘IFRS 15’) replace IAS 18 ‘Revenue’, IAS 11 ‘Construction Contracts’, and several revenue-related Interpretations. The new Standard has been applied retrospectively without restatement, with the cumulative effect of initial application recognised as an adjustment to the opening balance of retained earnings at 1 January 2018. In accordance with the transition guidance, IFRS 15 has only been applied to contracts that are incomplete as at 1 January 2018. The adoption of IFRS 15 has mainly affected the following: The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date on IPP sale of electricity. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. Reconciliation of statement of financial position balances from IAS 18 to IFRS 15 at 1 January 2018: IAS 18 IFRS 15 Carrying Carrying amount amount Retained 31 December, 1 January, earnings 2017 Reclassification Remeasurement 2018 effect Contract assets — 819 — 819 — Trade and other receivables 34,582 (819) — 33,763 — Total balances, reclassification and remeasurement at 1 January 2018 34,582 — — 34,582 — 2.2 New and Amendments to IFRSs in issue but not yet effective The Group has not early applied the following new and amendments to IFRSs that have been issued but are not yet effective: - IFRS 16 – Leases (1) - IFRS 17 – Insurance Contracts (2) - Amendments to IFRS 9 – Prepayment Features with Negative Compensation (3) - Amendments to IAS 28 – Long-term interests in Associates and Joint Ventures (3) - Amendments to IFRS 3 Business Combinations, (4) - Amendments to IFRS 11 Joint Arrangements, (3) - Amendments to IAS 12 Income Taxes (3) - Amendments to IAS 23 Borrowing Costs (3) - Amendments to IAS 19 Employee Benefits: Plan Amendment, Curtailment or Settlement(5) - IFRS 10 Consolidated Financial and Statements and IAS 28 (amendments) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture(5) - IFRIC 23 Uncertainty over Income Tax Treatments(6) (1) Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted. (2) Effective for annual periods beginning on or after January 1, 2021, with earlier application permitted. (3) Amendments are effective from January 1, 2019, with earlier application permitted. (4) The amendments made during the 2015–2017 cycle are effective from January 1, 2019, with earlier application permitted. Amendments made on October 22,2018 are effective on or after 1 January 2020, with earlier application is permitted. (5) Effective for annual periods beginning on or after a date to be determined. (6) Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted. The Group has not early adopted these new amendments to standards in the preparation of the consolidated financial statements. The management of the Group anticipates that the application of these new and revised standards, amendments to standards will have no material impact on the results and the financial position of the Group, except for potentially IFRS 16. IFRS 16 Leases IFRS 16, which upon the effective date will supersede IAS 17 Leases , introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Specifically, under IFRS 16, a lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Accordingly, a lessee should recognise depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows. Also, the right-of-use asset and the lease liability are initially measured on a present value basis. The measurement includes non-cancellable lease payments and also includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease. This accounting treatment is significantly different from the lessee accounting for leases that are classified as operating leases under the predecessor standard, IAS 17. In respect of the lessor accounting, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. The application of IFRS 16 in the future may have impact on lease accounting made in the Group’s consolidated financial statements. The Group applies IFRS 16 to its leases as lessee retrospectively with the cumulative effect of initially applying IFRS 16 recognized at the date of initial application by modified retrospective approach. The Group is required to recognize a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments and recognize depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows. The lease liability is measured based on the remaining lease payments discounted using the incremental borrowing rate as of the date of initial application. The carrying amount of the right-of-use asset is an amount equal to the carrying amount of the lease liability on the date of initial application as there are no prepayments or accrual items. As of December 31, 2018, the Group has commitments of USD47.8million for total future minimum lease payments under non-cancellable operating leases (Note 36) and the application of IFRS 16 in the future may have material impact on the consolidated financial statement of the Group. The potential effect of IFRS 16 adoption as at 1 January, 2019 is approximately USD 35.6 million of assets and liabilities respectively. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. 3.2 Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. 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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. These policies have been consistently applied throughout the periods presented. 3.3 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: · the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Company, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income (expense) from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (expense) are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Non-controlling interests in subsidiaries are presented separately from the Group’s equity therein. Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. 3.4 Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and asset or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS12 Income Taxes and IAS 19 Employee Benefits respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date (see note 3.17.2); and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. 3.5 Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. 3.6 Revenue recognition Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the 5-step approach to revenue recognition: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The company recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. 3.6.1 Identify the contract with the customer A contract with a customer should meet all the following conditions: · the contract has been approved by the parties to the contract; · each party’s rights in relation to the goods or services to be transferred can be identified; · the payment terms for the goods or services to be transferred can be identified; · the contract has commercial substance; and · it is probable that the consideration to which the entity is entitled to in exchange for the goods or services will be collected. If a contract with a customer does not yet meet all of the above criteria, the entity will continue to re-assess the contract going forward to determine whether it subsequently meets the above criteria. If certain conditions are met, a contract modification will be accounted for as a separate contract with the customer. If not, it will be accounted for by modifying the accounting for the current contract with the customer. Whether the latter type of modification is accounted for prospectively or retrospectively depends on whether the remaining goods or services to be delivered after the modification are distinct from those delivered prior to the modification. 3.6.2 Identify the performance obligations in the contract At the inception of the contract, the entity should assess the goods or services that have been promised to the customer, and identify as a performance obligation: · a good or service (or bundle of goods or services) that is distinct; or · a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A series of distinct goods or services is transferred to the customer in the same pattern if both of the following criteria are met: · each distinct good or service in the series that the entity promises to transfer consecutively to the customer would be a performance obligation that is satisfied over time (see below); and · a single method of measuring progress would be used to measure the entity’s progress towards complete satisfaction of the performance obligation to transfer each distinct good or service in the series to the customer. A good or service is distinct if both of the following criteria are met: · the customer can benefit from the good or services on its own or in conjunction with other readily available resources; and · the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Factors for consideration as to whether a promise to transfer goods or services to the customer is not separately identifiable include, but are not limited to: · the entity does provide a significant service of integrating the goods or services with other goods or services promised in the contract; · the goods or services significantly modify or customise other goods or services promised in the contract; · the goods or services are highly interrelated or highly interdependent. 3.6.3 Determine the transaction price The transaction price is the amount to which an entity expects to be entitled in exchange for the transfer of goods and services. When making this determination, an entity will consider past customary business practices. Where a contract contains elements of variable consideration, the amount of variable consideration to which it will be entitled under the contract should be estimated. Variable consideration can arise, as a result of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. Variable consideration is also present if an entity’s right to consideration is contingent on the occurrence of a future event. The uncertainty relating to variable consideration is considered by limiting the amount of variable consideration that can be recognised. Specifically, variable consideration is only included in the transaction price if, and to the extent that, it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved. 3.6.4 Allocate the transaction price to the performance obligations in the contracts Where a contract has multiple performance obligations, the transaction price should be allocated to the performance obligations in the contract by reference to their relative standalone selling prices. If a standalone selling price is not directly observable, it should be estimated. Methods that might be used are including: · Adjusted market assessment approach · Expected cost plus a margin approach · Residual approach (only permissible in limited circumstances). Any overall discount compared to the aggregate of standalone selling prices is allocated between performance obligations on a relative standalone selling price basis. In certain circumstances, it may be appropriate to allocate such a discount to some but not all of the performance obligations. Where consideration is paid in advance or in arrears, whether the contract includes a significant financing arrangement and, if so, adjust for the time value of money should be considered. A practical expedient is available where the interval between transfer of the promised goods or services and payment by the customer is expected to be less than 12 months. 3.6.5 Recognise revenue when (or as) the entity satisfies a performance obligation Revenue is recognised as control is passed, either over time or at a point in time. Control of an asset is defined as the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. This includes the ability to prevent others from directing the use of and obtaining the benefits from the asset. The benefits related to the asset are the potential cash flows that may be obtained directly or indirectly. These include, but are not limited to: · using the asset to produce goods or provide services; · using the asset to enhance the value of other assets; · using the asset to settle liabilities or to reduce expenses; · selling or exchanging the asset; · pledging the asset to secure a loan; and · holding the asset. Revenue should be recognized over time if one of the following criteria is met: · the customer simultaneously receives and consumes all of the benefits provided by the Company as the Company performs; · the performance of the Company creates or enhances an asset that the customer controls as the asset is created; or · the performance of the Company does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the performance obligation is not satisfied 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: · the Company has a present right to payment for the asset; · the customer has legal title to the asset; · the Company has transferred physical possession of the asset; · the customer has the significant risks and rewards related to the ownership of the asset; and · the customer has accepted the asset. 3.6.6 Contract costs The incremental costs of obtaining a contract must be recognized as an asset if the entity expects to recover those costs. However, those incremental costs are limited to the costs that the entity would not have incurred if the contract had not been successfully obtained (e.g. ‘success fees’ paid to agents). A practical expedient is available, allowing the incremental costs of obtaining a contract to be expensed if the associated amortization period would be 12 months or less. Costs incurred to fulfill a contract are recognized as an asset if and only if all of the following criteria are met: · the costs relate directly to a contract (or a specific anticipated contract); · the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future; and · the costs are expected to be recovered. These include costs such as direct labor, direct materials, and the allocation of overheads that relate directly to the contract. The asset recognized in respect of the costs to obtain or fulfil a contract is amortized on a systematic basis that is consistent with the pattern of transfer of the goods or services to which the asset relates. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Electricity sales income When the Group owns and operates solar parks for the purpose of generating income from the sale of electricity over the life of the solar parks, electricity generation income is classified as revenue. When electricity income is generated from solar parks which the Group holds as inventories, the electricity income is considered incidental and classified as other operating income. Electricity generation income is recognized when the control of the electricity is transferred to the customer as promised in the sales contract. The contracts are long-term with fixed prices. The Group recognizes revenue over the life of the contract based on the volume of electricity delivered each month. EPC services solar energy system sales - Provision of pipeline plus EPC services The provision of Pipeline plus EPC services involves application of permits, sourcing of solar modules, and provision of construction services. The Group either applies for the permits required to construct and operate solar parks itself or acquires the permits through the acquisition of the equity interests in project companies, which are typically formed for the specific purpose of holding such permits. In the course of providing Pipeline plus EPC services, the Group sells the permits to customers through the disposal of project companies holding the relevant permits. Revenue from disposing project companies holding permits is recognized when equity interests in the relevant project companies are transferred to customers by the Group at which time control is transferred. In addition to revenue from sales of permits as discussed above, the Group also enters into separate contracts with customers for sourcing of modules and provision of construction services for their project companies if it is requested by the customers. Revenue from modules sourced and provision of construction service is recognized in accordance with sales of solar modules and construction contract discussed below. EPC services solar energy system sales - Build and transfer of solar parks Revenue from BT represents the sale of completed solar parks and is recognized when titles to the solar parks have been transferred at which point control is passed to the customer. Other sales - Sales of solar modules Revenue from the sales of solar modules is recognized when the modules are delivered and titles have passed. Solar modules are considered delivered and their titles have passed, at the point at which all the following conditions are satisfied: · the Company has a present right to payment for the asset; · the customer has legal title to the asset; · the Company has transferred physical possession of the asset; · the customer has the significant risks and rewards related to the ownership of the asset; and · the customer has accepted the asset. Other sales — O&M service Income from provision of O&M service and other administrative service is recognized when services are provided. Others Interest income from financial assets is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. 3.6.7 Contract assets and contract liabilities A contract asset arises when an entity transfers a good or performs a service in advance of receiving consideration from the customer. A contract asset becomes a receivable once an entity’s right to the consideration becomes unconditional (i.e., except for the passage of time). A contract liability arises when an entity receives consideration from its customer (or has the unconditional right to receive consideration) in advance of performance. For contracts that have multiple performance obligations, contract assets and contract liabilities are netted together at the contract level. The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date on IPP sale of electricity. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. 3.7 Inventories The Group’s inventories mainly comprise permits and related costs capitalized during the course of obtaining permits, solar modules and solar parks under development or completed solar parks that are held for sale by the Group within normal operating cycle which is usually twelve months since their completion of construction. Inventories are stated at the lower of cost and net realizable value. Costs of solar modules are calculated using weighted average method. Costs of permits include capitalized costs incurred to obtaining such permits (for example legal expenses, consultancy fees, staff costs and other costs). Costs of solar parks under development include costs relating to solar parks capitalized before construction is completed, such as modules installed and development costs incurred. The proceeds from the sale of solar parks held for sale is recognized as revenue of the Group and the carrying amount of the solar parks which is recognized as costs of sales of the Group. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Provisions are made for inventory whose carrying value is in excess of net realizable value. Certain factors could impact the realizable value, so the Group continually evaluates the recoverability based on assumptions about market conditions. The Group regularly reviews the cost against its estimated net realizable value and records lower of cost and net realizable value to cost of sales, if inventories have costs in excess of estimated net realizable values. 3.8 Assets classified as held for sale Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. 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. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified a held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. The Group discontinues the use of the equity method at the time of disposal when the disposal results in the Group losing significant influence over the associate or joint venture. After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture in accordance with IFRS 9 unless the retained interest continues to be an associate or a joint venture, in which case the Group uses the equity method (see the accounting policy regarding investments in associates or joint ventures above). Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. 3.9 IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Costs include expenditures for solar modules, permits and other direct costs capitalized in the course of construction. Such costs are capitalized starting from the point in time it is determined that development of the IPP solar project is probable. Permits and related costs capitalized during the course of obtaining permits and solar parks under development are stated in the consolidated statement of financial position at cost less subsequent accumulated impairment losses, if any. Depreciation of completed solar parks commences once the solar parks are successfully connected to grids and begin generating electricity. Depreciation is recognized over their estimated useful lives of the solar parks (less residual value if any), using the straight-line method. The estimated useful lives, residual values and deprec |
KEY SOURCES OF ESTIMATES AND JU
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | 4. KEY SOURCES OF ESTIMATES AND JUDGEMENTS In the application of the Group’s accounting policies, the management of the Company are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. A. KEY SOURCES OF ESTIMATION UNCERTAINTY (a) Impairment of trade and most other receivables and contract assets, most amounts due from related parties, and loans and other debt-type financial assets measured at amortized cost. the Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument. The Group makes use of a simplified approach in accounting for trade receivables and contract assets, and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix. The Group assess impairment of trade and most other receivables, most amounts due from related parties and loans and other debt-type financial assets measured at amortized cost based on expected credit loss model. The Group assess impairment of financial assets apart from the amount due from Risensky on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due. Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. The carrying amounts of the Group’s trade and other receivables as at December 31, 2017 and December 31, 2018 are approximately USD34,582 thousand and USD 20,535 thousand and net of allowance of doubtful debts of USD1,403 thousand and USD3,182 thousand, respectively. The carrying amounts of the Group’s amounts due from related parties as at December 31, 2017 and December 31, 2018 were USD22,345 thousand and USD 21,478 thousand and net of allowance of doubtful debts of USD2,200 thousand and USD1,974 thousand, respectively. The carrying amounts of the Group's other non-current assets as at December 31, 2017 and December 31, 2018 were USD11,044 thousand and USD 15,098 thousand and net of allowance of doubtful debts of nil and USD398 thousand, respectively. (b) Impairment losses in relation to IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. When there is an objective evidence of impairment loss, such as changes of technological advancement, changes of regulatory policies for solar industry, damages of solar park due to natural disaster or economic performance of the IPP solar parks is, or will be, worse than expected, for example, the Group takes into consideration the estimation of future cash flows. The amount of the impairment is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). (c) Fair value measurements and valuation process Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case, management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date (see Note 34). (d) Asset retirement obligations Asset retirement obligations are recognized in the consolidated statement of financial position when the Group has a legal or constructive obligation as a result of past events, and it is probable that an outflow of economic benefit will be required to settle the obligation. If the effect is material, asset retirement obligations are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The Group made the provision for asset retirement obligation based on its best estimate of future cash flow. When the future costs are higher or lower than expected and where events or changes in circumstances indicate that the amount of asset retirement obligation provision may not be adequate or may be excessive, such difference will impact the carrying values and provision expenses in the years in which such estimate has been changed. B. CRITICAL ACCOUNTING JUDGEMENTS (a) Significant influence over 1088526 B.C. Ltd (“1088526”) and 1091187 B.C. Ltd (“1091187”) 1088526 B.C. Ltd. and 1091187 B.C. Ltd each is considered as an associate of the Group although the Group owns 75% equity interest in both 1088526 and 1091187, and contractual right to appoint two out of four directors to the board of directors of both 1088526 and 1091187. The Group only has significant influence over both 1088526 and 1091187 are explained by the facts that (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of both 1088526 and 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. (Note 22). |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE | |
REVENUE | 5. REVENUE The Group’s revenue streams are mainly composed of pipeline plus EPC services, BT, sales of solar modules, O&M services and income from the sale of electricity generated by IPP solar parks. The following table summarizes the categories of the Group’s revenue: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Related parties: —EPC services solar energy system sales Sales of permits 525 — — —Other sales -O&M services 263 286 324 -Sales of solar modules — — — 263 286 324 Subtotal 788 286 324 Non-related parties —Electricity sales income 53,658 53,614 61,438 —EPC services solar energy system sales -Provision of Pipeline plus EPC services Sales of permits — — — Provision of construction services 4,954 285 198 - BT 4,232 — — 9,186 285 198 —Other sales -O&M services 2,290 2,548 2,708 -Sales of solar modules 3 — 1 2,293 2,548 2,709 Subtotal 65,137 56,447 64,345 Total 65,925 56,733 64,669 Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. December 31, January 1, 2018 2018 Thousand USD Thousand USD Receivables, which are included in ‘trade and other receivables’ — 819 Receivables, which are included in ‘assets held for sale’ — — Contract assets 731 — 731 819 The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date on IPP sale of electricity. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 6. SEGMENT INFORMATION Operating segments are defined as components of a group entity about which discrete financial information is available for regular evaluation by the chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the executive team. The executive team regularly reviews revenue analysis and the Group’s consolidated results for the periods presented for the purposes of resource allocation and performance assessment. As no other discrete financial information is available for the assessment of different business activities, no segment information is presented other than entity-wide disclosures. Based on the financial information presented to and reviewed by the chief operating decision maker in deciding how to allocate the resources and in assessing the performance of the Company, the Company has determined that it has one operating segment which is the development and operation of solar parks and related business activities. Geographical information The Group’s operations are located in the respective countries of domicile of the Group’s subsidiaries. The operations of the Group include the Republic of Bulgaria (“Bulgaria”), the Federal Republic of Germany (“Germany”), the Hellenic Republic (“Greece”), Czech, Japan, Spain, Uruguay, Canada and USA during the periods presented. Information about the Group’s revenue is presented based on the location of the operations. Information about the Group’s non-current assets is presented based on the geographical location of the assets. Revenue for the year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Bulgaria 871 966 912 Canada 8,724 382 361 Czech 3,197 3,548 4,103 Germany 27 — — Greece 8,748 1,650 1,613 Japan 37,757 37,887 41,140 PRC — — 29 Spain 379 421 329 USA 3,797 6,681 4,914 Uruguay 2,425 5,198 11,268 65,925 56,733 64,669 The Group’s revenue disaggregated by pattern of revenue recognition and primary geographical markets is as follows: Revenue for the year ended December 31, 2018 EPC services solar energy system sales Sales of solar modules Electricity sales income O&M services Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Bulgaria — — — 912 912 Canada 177 1 143 40 361 Czech — — 4,103 — 4,103 Greece — — — 1,613 1,613 Japan — — 40,925 215 41,140 PRC — — 29 — 29 Spain — — 329 — 329 USA 21 — 4,822 71 4,914 Uruguay — — 11,087 181 11,268 198 1 61,438 3,032 64,669 Revenue for the year ended December 31, 2017 EPC services solar energy system sales Sales of solar modules Electricity sales income O&M services Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Bulgaria — — — 966 966 Canada 256 — 126 — 382 Czech — — 3,548 — 3,548 Greece — — 146 1,504 1,650 Japan — — 37,671 216 37,887 Spain — — 421 — 421 USA 29 — 6,647 5 6,681 Uruguay — — 5,056 142 5,198 285 — 53,615 2,833 56,733 Non-current assets At December 31, 2017 2018 Thousand USD Thousand USD Bulgaria 92 79 Canada 1,956 1,707 Chile 3,164 5,545 Czech 15,127 13,791 Greece 109 94 Japan 234,398 180,794 PRC 268 1,134 Spain 6,446 545 USA 45,137 42,563 Uruguay 106,877 110,628 413,574 356,880 Non-current assets excluded deferred tax assets, financial instruments, investments accounted for using the equity method and amounts due from related parties. Information about major customers Revenue from customers during the periods presented contributing over 10% of the total sales of the Group for each of the respective reporting periods are as follows: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Customer A 10,504 13,056 14,079 Customer B 10,861 11,684 11,774 Customer C 8,164 9,912 10,996 Customer D 7,103 * 10,269 * |
INVESTMENT INCOME
INVESTMENT INCOME | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT INCOME | |
INVESTMENT INCOME | 7. INVESTMENT INCOME Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Interest income 83 186 93 Interest income from amounts due from related parties 242 259 298 Share of profit of associates(Note b) 173 — 189 Disposal of associates(Note a) — 7,446 — 498 7,891 580 (a) In March 2017, Sky Solar Japan KK entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. The company recorded a gain on disposal of subsidiaries of JPY 837 million (USD 7.4 million). (b) Since the Group maintains 30% of the variable returns of 1088526 B.C. Ltd. ("1088526") and 1091187 B.C. Ltd. ("1091187") by 2018 (Note 22), the Group recorded the share of profit of USD 189 thousand in 2018. |
OTHER LOSSES
OTHER LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER LOSSES | |
OTHER LOSSES | 8. OTHER LOSSES Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) (2,957) (39,105) (25,607) Change of financial assets with fair value through profit and loss — — 814 Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as at FVTPL (Note 25, Note 30) (641) 201 248 Transaction cost related to FVTPL liabilities (Note a) (4,041) — — Net foreign exchange (losses) gains 1,145 1,814 397 Others, net 1,523 (2,896) 1,751 (4,971) (39,986) (22,397) (a) The transaction cost represents the professional fee directly attributable to the issue of the financial liability to Hudson. |
FINANCE COSTS
FINANCE COSTS | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE COSTS | |
FINANCE COSTS | 9. FINANCE COSTS Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Interest on: Bank borrowings (2,611) (3,865) (6,006) Other borrowings (3,757) (8,335) (11,324) (6,368) (12,200) (17,330) |
STAFF COSTS, ADMINISTRATIVE EXP
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | 12 Months Ended |
Dec. 31, 2018 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | 10. STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Loss) profit before taxation has been arrived at after charging: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Depreciation of property, plant and equipment 271 298 204 Amortization of intangible assets 71 44 52 Depreciation of solar parks 14,208 14,272 19,414 Auditor’s remuneration 1,200 1,050 1,088 Directors’ emoluments: Salaries and other benefits 392 887 1,194 Retirement benefits scheme contributions 27 36 42 Share-based compensation 46 (43) — 465 880 1,236 Others staff: Other staff costs 8,090 7,625 7,324 Retirement benefits scheme contributions 1,046 591 1,261 Share-based compensation 951 (180) — 10,087 8,036 8,585 Total staff costs 10,552 8,916 9,821 |
INCOME TAX (EXPENSE) CREDIT
INCOME TAX (EXPENSE) CREDIT | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX (EXPENSE) CREDIT | |
INCOME TAX (EXPENSE) CREDIT | 11. INCOME TAX (EXPENSE) CREDIT Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Current tax (10,976) (4,906) (15,299) Deferred tax 9,699 11,436 8,014 (1,277) 6,530 (7,285) Income tax of Bulgaria, Czech, Hong Kong, and Canada is calculated at 10%, 19%, 16.5%, and 25%, respectively, of the estimated assessable profit of respective Group’s subsidiaries for the three years ended December 31, 2018. Income tax rate in Japan is 30%, 27.8% and 27.8% for the three years ended December 31, 2018, respectively. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. Income tax of Bulgaria, Germany, Hong Kong, and Canada is calculated at 10%, 15%, 16.5%, and 26.5%, respectively, of the estimated assessable profit of respective Group’s subsidiaries for the three years ended December 31, 2017. Income tax rate in Japan is 33% , 30% and 27.8% for the three years ended December 31, 2017, respectively. Income tax rate in Greece is 26%, 29%, and 29% for the three years ended December 31, 2017, respectively. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. Income tax of Bulgaria, Germany, Hong Kong, and Canada is calculated at 10%, 15%, 16.5%, and 26.5%, respectively, of the estimated assessable profit of respective Group’s subsidiaries for the three years ended December 31, 2016. Income tax rate in Japan is 38%, 33% and 30% for the three years ended December 31, 2016, respectively. Income tax rate in Greece is 26%, 26%, and 29% for the three years ended December 31, 2016, respectively. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. The taxation for the year can be reconciled to the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income as follows: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD (Loss) profit before taxation 4,559 (39,580) (14,835) Tax at the domestic income tax rate (2016: 29%, 2017: 27.8%, 2018: 27.8%) 1,322 (11,003) (4,124) Tax effect of income not taxable for tax purpose (1,802) — (158) Tax effect of expenses not deductible 716 1,898 3,116 Overprovision in prior years — (715) — Tax effect of tax losses not recognized 5,321 3,007 10,318 Recognition of deferred tax assets previously not recognized (3,646) — — Utilization of tax losses previously not recognized (2,463) (601) (1,530) Effect of different tax rates of subsidiaries operating in other jurisdictions 1,829 884 (337) Income tax expense (benefit) 1,277 (6,530) 7,285 Effective income tax rate 28 % 16 % (49) % The domestic income tax rate represents statutory rate in the jurisdictions where the operation of the Group was most significant during the year presented; which is the income tax rate in Greece for the years ended December 31, 2016. Since the group disposed all the solar park assets in Greece in 2017, the most significant operation of the Group of 2017 and 2018 was Japan. As a result, the domestic income tax rate was 27.8% for the year ended December 31, 2017 and 2018. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2018 | |
DIVIDENDS | |
DIVIDENDS | 12. DIVIDENDS No dividend was paid or proposed during the periods presented, nor has any dividend been proposed since the end of the reporting period. |
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
(LOSS) EARNINGS PER SHARE | |
(LOSS) EARNINGS PER SHARE | 13. (LOSS) EARNINGS PER SHARE The calculation of the basic and diluted (loss) earnings per share attributable to the owners of the Company is based on the following data: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD (Loss) profit (Loss) profit for the purpose of basic and diluted (loss) earnings per share 3,784 (33,171) (21,955) Year ended December 31, 2016 2017 2018 Number of shares Weighted average number of ordinary share outstanding- basic and diluted 401,602,159 418,314,541 419,546,514 Basic net (loss) earnings per share (0.1) (0.05) Diluted net (loss) earnings per share (0.1) (0.05) For the year ended December 31, 2016, diluted net income (loss) per share does not include the 330,000 share options, of which the exercise price is higher than the average market price, or 1,430,000 unvested restricted shares, of which assumed exercise price is higher than the average market price for year ended December 31, 2016, as their inclusion would be anti-dilutive. For the year ended December 31, 2017, diluted net income (loss) per share does not include the 220,000 share options, of which the exercise price is higher than the average market price, or 940,000 unvested restricted shares, of which assumed exercise price is higher than the average market price for year ended December 31, 2017, as their inclusion would be anti-dilutive. For the year ended December 31, 2018, diluted net income (loss) per share does not include the 220,000 share options, of which the exercise price is higher than the average market price, or 940,000 unvested restricted shares, of which assumed exercise price is higher than the average market price for year ended December 31, 2018, as their inclusion would be anti-dilutive. The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted loss per share. Year ended December 31, 2016 2017 2018 Options 330,000 220,000 220,000 Non-vested restricted shares 950,000 940,000 940,000 1,280,000 1,160,000 1,160,000 |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING INCOME | |
OTHER OPERATING INCOME | 14. OTHER OPERATING INCOME Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Gain(Loss) on disposal of IPP solar parks(Note a) 1,248 — 8,491 Gain on sale of permits and rights(Note b) — — 18,220 Gain(Loss) on disposal of subsidiaries (Note 21, Note 33) 11,768 1,875 (1,288) Others 147 193 207 13,163 2,068 25,630 (a) (a) On March 30, 2018, the company cooperated with Renova, a listing company in Japan, and NEC Capital, and invested to a 40.8 MW project in Japan, And the company invested JPY 529 million (USD 4.8 million) for 45% distribution of profit or loss. The company sells the permit to the joined company with the price of USD 23million (JPY 2.6 billion), and a profit of USD 18.2 million (JPY 2 billion). |
AMOUNTS DUE FROM RELATED PARTIE
AMOUNTS DUE FROM RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
AMOUNTS DUE FROM RELATED PARTIES | |
AMOUNTS DUE FROM RELATED PARTIES | 15. AMOUNTS DUE FROM RELATED PARTIES At December 31, Notes 2017 2018 Thousand USD Thousand USD Current: Trade 8180792 Canada Inc. b — 6 China New Era a 3,334 3,165 Less: allowance for doubtful debts a, 34 (1,970) (1,744) 1,364 1,427 Non-Trade China New Era a 359 342 Su Weili d 15,220 14,889 Less: allowance for doubtful debts a, 34 (230) (230) 15,349 15,001 16,713 16,428 Non-Current: Trade RisenSky Solar (defined in Note 22) and its subsidiaries 1,247 — 1,247 — Non-Trade RisenSky Solar (defined in Note 22) and its subsidiaries c 4,385 5,050 5,632 5,050 Notes: (a) Sky Solar Holdings is able to exercise significant influence over China New Era through its 49% ownership interest and participation on the board. In addition, certain key management of the Group acts as legal representatives of the solar plant entities controlled by China New Era. China New Era is therefore an associate of Sky Solar Holdings and considered as a related party of the Group. The balance is accounted for as at amortized cost. Included in the balance amount due from China New Era as of December 31, 2017 and December 31, 2018, an allowance for doubtful debt of USD 2.2 million and USD 2.0 million are provided for receivables respectively for which they have defaulted on payment obligation. The company has entered a settlement agreement with China New Era on March 19, 2019, and has received the total net USD 1.5 million on March 28, 2019, after which the balance amount due from China New Era is nil. Movements in the allowance for doubtful debts of amounts due from related parties during the periods presented are as follows: At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 2,200 2,200 Reversal of provision — (116) Exchange differences — (110) Balance at end of the year 2,200 1,974 Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. (b) 8180792 Canada Inc. is controlled by 1091187 B.C, Ltd (“1091187”), an equity investee in which the Group holds 75% equity interest. (Note 22) The balance is accounted for as at amortized cost. (c) Included in the balance was a carrying amount of USD 4.4 million and as USD 5.0 million at December 31, 2017 and 2018, respectively, which carried interest at 3.0% per annum. The balance is accounted for as FVTPL. The effect of initially applying IFRS 9 is described in Note 2.1. (d) In March 2019, Mr. Su entered a stock purchase agreement to sell all his ordinary shares of our Group in the form of ADSs to a Japan investor, and he paid back the amount due to the Group USD 14.9 million. The balance is accounted as FVTPL as at December 31, 2018. Other than the non-current amounts which mature after one year in accordance to contracts since the end of reporting period, the remaining balances are repayable on demand. Save as disclosed above, the balances are unsecured and interest-free. Amounts due from related parties which are non-trade in nature mainly represented loans or advances to these related parties by the Group. See accounting policies in Notes 3.20.3. The effect of initially applying IFRS 9 is described in Note 2.1. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | 16. TRADE AND OTHER RECEIVABLES Trade and other receivables consist of the following: As at December 31, 2017 2018 Thousand USD Thousand USD Trade receivables, gross 10,206 7,939 Deposit (Note a) 7,186 1,072 Receivable due from third parties (Note b) 4,758 6,605 Allowance for expected credit losses (Note d) — (1,856) Financial assets 22,150 13,760 Value-added tax recoverable 2,044 1,053 Prepaid assets and prepayment 6,755 4,915 Receivable due from staff 78 40 Others 4,958 2,093 Allowance for expected credit losses (Note c) (1,403) (1,326) Non-financial assets 12,432 6,775 Trade and other receivables 34,582 20,535 All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. Note: (a) The balance as of December 31, 2017 includes (1) USD 2.5 million deposit under the arrangement of Hudson Note, (2) USD 1.4 million for the EPC deposit in Canada and (3) USD 1.8 million for the litigation deposit in Japan and this deposit was received by January 2018. The balance as of December 31, 2018 mainly includes the EPC deposit in Canada. (b) The balance as of December 31, 2018 mainly includes debt investment to third parties. (c) The balance as of December 31, 2017 mainly includes an amount receivable due from a third party to the Group of approximately USD1.1 million (equivalent to EUR1.0 million), which was incurred in 2012, claim against two third party contractors who failed to construct a solar park for one subsidiary of the Group, who delivered solar modules and made prepayment already. A settlement agreement was made in September 2012, however the two contractors failed to repay after made the first repayment of total three installments. The Group is negotiating for another settlement agreement, and based on the recent communications among the Group and two contractors, management concluded to make full provision for doubtful receivables in the amount of USD1.1 million in 2015. (d) Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. No interest is charged on trade receivables. The Group does not have collateral over the balances. Before accepting any new customer, the management of the Group will assess the potential customer’s credit quality and grant credit limits to each customer. The balances that are neither past due nor impaired as at the end of each reporting period are at good credit quality. These debtors were either placed under liquidation or in severe financial difficulties and such amounts were not likely to be recovered in the future. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the debtor from the date credit was initially granted up to the end of each reporting period. Movements in the allowance for doubtful debts of trade and other receivables during the periods presented are as follows: At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 1,329 1,403 Effect of IFRS 9 as at January 1, 2018 — 1,044 Adjustment from the adoption of IFRS 9 — 2,447 Provisions recognized on receivables — 811 Exchange difference 74 (76) Balance at end of the year 1,403 3,182 See accounting policies in Notes 3.20.3. The effect of initially applying IFRS 9 is described in Note 2.1 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 17. INVENTORIES At December 31, 2017 2018 Thousand USD Thousand USD Solar modules(Note a) 166 626 Permits and related costs capitalized during the course of obtaining permits 141 — 307 626 (a) Solar modules include all related materials and equipment for O&M service. |
ASSETS CLASSIFIED AS HELD FOR S
ASSETS CLASSIFIED AS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2018 | |
ASSETS CLASSIFIED AS HELD FOR SALE | |
ASSETS CLASSIFIED AS HELD FOR SALE | 18. ASSETS CLASSIFIED AS HELD FOR SALE At December 31, 2017 2018 Thousand Thousand Japan Chile Note(a) Note(b) IPP solar parks held for sale — 45,046 2,121 Cash and cash equivalents — — 128 Trade and other receivable — — 1,092 Other assets — — — — 45,046 3,341 Liabilities associated with assets held for sale — — 336 (a) On March 8, 2019, the company entered 12 asset purchase agreements with a third party to sell 12 IPP solar parks in Japan with a price of JPY 9.4 billion (USD 85.7 million). The company reclassifies the relative assets into held for sale. (b) On January 17, 2019, the company entered a share purchase agreement with a third party to sell a subsidiary in Chile with a price of USD 3 million. The company reclassifies the relative assets and liabilities into held for sale. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property other than IPP solar parks | |
Property, plant and equipment | |
PROPERTY, PLANT AND EQUIPMENT | 19. PROPERTY, PLANT AND EQUIPMENT Leasehold Furniture and improvement Motor vehicles fixtures Total Thousand USD Thousand USD Thousand USD Thousand USD COST At January 1, 2016 138 622 1,238 1,998 Additions 42 205 102 349 Disposals — (24) (104) (128) Exchange adjustments 5 (17) (27) (39) At December 31, 2016 185 786 1,209 2,180 Additions — 198 177 375 Disposals (65) (174) (58) (297) Exchange adjustments 8 32 79 119 At December 31, 2017 128 842 1,407 2,377 Additions 35 — 79 114 Disposals — (569) (331) (900) Exchange adjustments (2) (6) (39) (47) At December 31, 2018 161 267 1,116 1,544 DEPRECIATION At January 1, 2016 71 371 757 1,199 Provided for the year 15 127 129 271 Eliminated on disposals — (21) (92) (113) Exchange adjustments 10 (5) (5) — At December 31, 2016 96 472 789 1,357 Provided for the year 17 148 133 298 Eliminated on disposals (66) (173) (45) (284) Exchange adjustments (6) 43 53 90 At December 31, 2017 41 490 930 1,461 Provided for the year 18 52 134 204 Eliminated on disposals — (457) (314) (771) Exchange adjustments (1) — (33) (34) At December 31, 2018 58 85 717 860 CARRYING VALUES At December 31, 2016 89 314 420 823 At December 31, 2017 87 352 477 916 At December 31, 2018 103 182 399 684 The above items of property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives after taking into account the residual values: Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years |
IPP SOLAR PARKS, INVESTMENT PRO
IPP SOLAR PARKS, INVESTMENT PROPERTY | 12 Months Ended |
Dec. 31, 2018 | |
IPP solar parks | |
IPP SOLAR PARKS | |
PROPERTY, PLANT AND EQUIPMENT | 20. IPP SOLAR PARKS, INVESTMENT PROPERTY (1) IPP Solar Parks At the end of each reporting period, the Group’s solar parks, which are held for use, consisted of the following: Permits (including related costs capitalized in the course of obtaining permits) and solar parks Completed under development solar parks Total Thousand USD Thousand USD Thousand USD At January 1, 2016 37,359 262,668 300,027 Additions 42,895 2,575 45,470 Acquisition of subsidiaries (Note a) — 34,158 34,158 Transfer to investment property (104) — (104) Reclassified as held for sale (Note 18) — (60,667) (60,667) Disposal of subsidiaries (Note 33) — (18,407) (18,407) Disposal of solar parks — (3,671) (3,671) Transfer (42,330) 42,330 — Exchange adjustments (1,344) 2,975 1,631 At December 31, 2016 36,476 261,961 298,437 Additions 36,589 110,210 146,799 Disposal of solar parks (1,979) — (1,979) Disposal of subsidiaries (Note a) (669) (834) (1,503) Transfer (17,150) 17,150 — Exchange adjustments (636) 4,702 4,066 At December 31, 2017 52,631 393,189 445,820 Additions 41,953 770 42,723 Transfer into Investment Property — (265) (265) Reclassified as held for sale (Note 18) (9,983) (52,052) (62,035) Disposal of solar parks (Note a) (5,328) (12,533) (17,861) Disposal of subsidiaries (Note a) — (3,471) (3,471) Transfer (44,327) 44,327 — Exchange adjustments (117) 3,769 3,652 At December 31, 2018 34,829 373,734 408,563 DEPRECIATION AND IMPAIRMENT At January 1, 2016 1,976 38,628 40,604 Provided for the year — 14,208 14,208 Impairment provided for the year 2,151 — 2,151 Reclassified as held-for-sale (Note 18) — (25,983) (25,983) Disposal of subsidiaries (Note 33) — (1,560) (1,560) Disposal of solar parks — (80) (80) Exchange adjustments (217) (1,939) (2,156) At December 31, 2016 3,910 23,274 27,184 Provided for the year — 14,272 14,272 Impairment provided for the year 5,120 101 5,221 Disposal of subsidiaries (Note a) — (19) (19) Exchange adjustments 357 1,400 1,757 At December 31, 2017 9,387 39,028 48,415 Provided for the year — 19,414 19,414 Impairment provided for the year 1,785 2,756 4,541 Reclassified as held-for-sale (Note 18) (7,862) (7,006) (14,868) Disposal of subsidiaries (Note a) — (1,056) (1,056) Disposal of IPP Solar Parks (Note a) — (1,459) (1,459) Exchange adjustments — 526 526 At December 31, 2018 3,310 52,203 55,513 CARRYING VALUES At December 31, 2016 32,566 238,687 271,253 At December 31, 2017 43,244 354,161 397,405 At December 31, 2018 31,519 321,531 353,050 (a) As at December 31, 2016, 2017 and 2018, the solar parks with carrying amounts of approximately USD 215.6 million, USD USD277.4 million and USD344.3 million, respectively, were pledged by the Group to secure borrowings with carrying amounts of approximately USD150.6 million, USD244.0 million and USD252.9 million, respectively. During the year ended December 31, 2016, IPP solar parks operating in Greece were evaluated for impairment given the macroeconomic conditions prevailing in Greece. The recoverable amount of the IPP solar parks is calculated on the basis of value in use, and loss of USD 2.2 million was recorded. To expand business in the USA, on May 6, 2016, the Group entered into an agreement with Greenleaf-TNX Management, LLC ("GTL") and SunPeak Universal Holdings, Inc. ("Sunpeak") to acquire all the shares held by them in Greenleaf Clear Skies I, Greenleaf Clear Skies II, and Greenleaf Clear Skies IV (the "Acquired Companies"). The Acquired Companies own 100% equity interest of Acquired Companies which control 23 solar parks in the USA. In February 2017, Sky Solar Japan KK(“SSJ”), a wholly-owned subsidiary of the Group, entered into a share purchase agreement to sell its all shares of Tokyo Solar Electricity KK(“TS”), with total purchase price of JPY 9.3 million (USD83 thousand). This disposal was aimed to maintain the strategy on high-voltage solar business, while TS was operated on low-voltage solar business with small sizes but high costs. The transaction was completed in February 2017, and the Group recorded a loss of USD 5 thousand. In the first half of year 2017, several companies were disposed in Greece and north America. The disposal was aimed to avoid uncertainty of macro economy and increase the ownership to our possessed solar parks. There were also some developing licenses discontinued in Latin America, which allowed us to focus on more qualified projects. During the year ended December 31, 2017, IPP solar parks operating in Uruguay and United States were recorded for impairment according to local evaluation. The recoverable amount of the IPP solar parks is calculated on the basis of value in use, and loss of USD 2.8 million and USD 2.3 million respectively was recorded During the year ended December 31, 2018, 2 subsidiaries has been disposed to a third party buyer and another 4 solar parks were sold to a third party buyer. Several projects were cancelled in Asia, North America, Latin America, and Europe, and the completed projects in USA were evaluated for impairment given the difference between the assets’ carrying amount and fair value. As a result, an impairment loss of USD 4.5 million was recorded by the Group. (2) Investment Property Included in the Group’s IPP solar parks are land acquired by the Group with carrying amounts of approximately USD11.3 million, USD11.3 million and USD11.0 million, respectively, as at December 31, 2016, 2017 and 2018. The Group transferred certain pieces of land with carrying amount of approximately USD 104 thousand, nil and USD 265 thousand, during the year ended December 31, 2016, 2017 and 2018, respectively, from IPP solar parks to investment property upon commencement of leases. The transfer is triggered by the sales of IPP solar parks assets situated on these land to third party customers. The land, being accounted for as investment property, has indefinite useful lives and is measured at costs less accumulated impairment losses, if any. The lease of land is an operating lease in nature and the future minimum lease payments under non-cancellable operating leases is disclosed in note 36. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 21. INTANGIBLE ASSETS Software Thousand USD COST At January 1, 2016 239 Additions 40 Disposals (32) Exchange adjustments 5 At December 31, 2016 252 Additions 42 Disposals (1) Exchange adjustments (12) At December 31, 2017 281 Additions 10 Disposals (8) Exchange adjustments 2 At December 31, 2018 285 AMORTIZATION At January 1, 2016 92 Charge for the year 71 Eliminated on disposals (31) Exchange adjustments (2) At December 31, 2016 130 Charge for the year 44 Eliminated on disposals (1) Exchange adjustments (18) At December 31, 2017 155 Charge for the year 52 Eliminated on disposals (6) Exchange adjustments (1) At December 31, 2018 200 CARRYING VALUES At December 31, 2016 122 At December 31, 2017 126 At December 31, 2018 85 Most of the above intangible assets are software systems for solar park monitoring, which have finite useful lives. Such intangible assets are amortized on a straight-line basis over 5 years. |
INTERESTS IN ASSOCIATES
INTERESTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2018 | |
INTERESTS IN ASSOCIATES | |
INTERESTS IN ASSOCIATES | 22. INTERESTS IN ASSOCIATES 2017 2018 Thousand USD Thousand USD As at January 1, 4,092 2,566 Investment in new affiliates 612 — Return of investment in associates — — Add: Share of profit of associates — 189 Less: Unrealized gain from sales to associates — — Less: Dividends received from the associates (427) (302) Less: Disposal of associates(Note d) (2,038) — Exchange difference 327 (120) As at December 31, 2,566 2,333 As at December 31, 2017 and December 31, 2018, the Group had interests in the following associates: Place of Proportion of nominal incorporation/ Class of value of issued capital Proportion of voting Form of principal place shares held power held Name of entity Entity of incorporation Held 2017 2018 2017 2018 Principal activities RisenSky Solar S.a.r.l. (a) Limited liability Luxemburg Ordinary 30 % 30 % 30 % 30 % Operating entity engaged in the investment, construction, financing and management of solar parks 1088526 B.C. Ltd. (b) Limited liability Canada Ordinary 75 % 75 % 50 % 50 % Operating entity engaged in the investment, construction, financing and management of solar parks 1091187 B.C. Ltd. (c) Limited liability Canada Ordinary 75 % 75 % 50 % 50 % Operating entity engaged in the investment, construction, financing and management of solar parks Notes: (a) In 2011, Sky Europe entered into an agreement with Risen Energy (Hong Kong) Co., Ltd. (“Risen HK”) (a subsidiary of a company listed on the security market in the PRC) to establish a private limited liability company, namely RisenSky Solar Energy S.a.r.l. (“RisenSky Solar”). The Group is able to exercise significant influence over RisenSky Solar through its 30% ownership interest and participation on the board. RisenSky is therefore classified as an associate of the Group. (b) In 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1088526 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee, 70% by 2018 and 95% from 2019. The Group’s residual investment in 1088526 was measured at fair value. (Note 33) (c) In January 2017, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1091187 B.C. Ltd. (“1091187”), who owns Sky Solar (Canada) FIT 2 LP in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1091187 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee, 70% by 2018 and 95% from 2019. The Group’s residual investment in 1091187 was measured at fair value. (Note 33) The summarized financial information in respect of the Group’s associates is set out below: At December 31, RisenSky 1091187 1088526 Aggregate RisenSky 1091187 1088526 Aggregate 2017 2017 2017 2017 2018 2018 2018 2018 Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Non-current assets IPP solar parks 22,592 3,305 13,157 39,054 20,428 2,876 11,367 34,671 Other non-current assets 472 1,683 11,359 13,514 439 1,302 10,996 12,737 23,064 4,988 24,516 52,568 20,867 4,178 22,363 47,408 Current assets 5,342 159 2,689 8,190 5,160 423 2,372 7,955 Current liabilities Other current liabilities 2,739 154 1,312 4,205 1,419 174 1,558 3,151 Amount due to related parties 967 — — 967 262 6 — 268 3,706 154 1,312 5,172 1,681 180 1,558 3,419 Non-current liability Borrowings 24,034 1,321 15,109 40,464 22,456 1,128 12,529 36,113 Others — 58 941 999 — 136 967 1,103 24,034 1,379 16,050 41,463 22,456 1,264 13,496 37,216 Net assets (liabilities) 666 3,614 9,843 14,123 1,890 3,157 9,681 14,728 Year ended December 31, RisenSky 1091187 1088526 Aggregate RisenSky 1091187 1088526 Aggregate 2017 2017 2017 2017 2018 2018 2018 2018 Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Revenue 3,840 709 3,268 7,817 3,978 707 3,201 7,886 Profit for the year 1,076 134 (240) 970 1,293 164 286 1,743 Group’s share of profit of associates of the year — — — — — 78 111 189 Group’s share of profit of associates of the year not recognized 323 22 (43) 302 388 — — 388 Group’s share of other comprehensive income of associates — — — — — — — — The Group's share of profit of the associates recognized in year 2018 includes 30% proportion of profits from 1088526 B.C. Ltd and 1091187 B.C. Ltd. The Group determines the proportion according to the agreement in which a proportion for profit distribution was set. |
FINANCIAL ASSETS AND LIABILITIE
FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL ASSETS AND LIABILITIES | |
FINANCIAL ASSETS AND LIABILITIES | 23. FINANCIAL ASSETS AND LIABILITIES The carrying amounts of financial assets and financial liabilities in each category are as follows: Year ended December 31, 2018 Amortized cost FVTPL Total Thousand USD Thousand USD Thousand USD Cash and cash equivalents 43,831 — 43,831 Restricted Cash 44,182 — 44,182 Trade and other receivables (Note 16) 13,760 — 13,760 Contract assets (Note 5) 731 — 731 Amounts due from related parties (Note 15) 1,539 19,939 21,478 Other non-current assets (Note 25) 8,216 5,636 13,852 Total 112,259 25,575 137,834 Year ended December 31, 2018 Amortized cost FVTPL Total Thousand USD Thousand USD Thousand USD Trade and other payables (Note 26) 22,255 — 22,255 Amounts due to related parties (Note 27) 211 — 211 Current borrowings (Note 28) 49,700 — 49,700 Other current liabilities (Note 29) — 130,323 130,323 Non-current borrowings (Note 28) 207,057 — 207,057 Other non-current liabilities (Note 30) — 59,992 59,992 Total 279,223 190,315 469,538 The financial instrument classifications in the prior period are in accordance with IFRS 9 as follows: Balance at January 1, 2018 Amortized cost FVTPL Total Thousand USD Thousand USD Thousand USD Cash and cash equivalents 46,084 — 46,084 Restricted Cash 40,716 — 40,716 Trade and other receivables (Note 2.1) 21,106 — 21,106 Amounts due from related parties (Note 2.1) 2,740 19,172 21,912 Other non-current assets (Note 2.1) 9,167 — 9,167 Total 119,813 19,172 138,985 See note 2.1 the effect to the classification or measurement of financial assets of the application of IFRS 9 at January 1, 2018. Balance at January 1, 2018 Amortized cost FVTPL Total Thousand USD Thousand USD Thousand USD Trade and other payables (Note 26) 26,644 — 26,644 Current borrowings (Note 28) 19,702 — 19,702 Other current liabilities (Note 29) 120,820 120,820 Non-current borrowings (Note 28) 230,027 — 230,027 Other non-current liabilities (Note 30) — 57,885 57,885 Total 276,373 178,705 455,078 |
DEFERRED TAX ASSETS
DEFERRED TAX ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
DEFERRED TAX ASSETS | |
DEFERRED TAX ASSETS | 24. DEFERRED TAX ASSETS The principal components of the deferred income tax assets and liabilities are as follows: Fair value change of Unrealized gain on Depreciation of Tax losses financial instruments inter-group sales solar parks Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At January 1, 2017 864 917 10,456 (2,986) 9,251 Deferred tax assets 864 917 10,456 (2,656) 9,581 Deferred tax liabilities — — — 330 330 Credit (charge) to profit or loss 286 11,325 (1,843) 1,668 11,436 Exchange differences 1 41 (7) (6) 29 At December 31, 2017 1,151 12,283 8,606 (1,324) 20,716 Deferred tax assets 1,151 12,283 8,606 1,460 23,500 Deferred tax liabilities — — — 2,784 2,784 Credit (charge) to profit or loss (377) 5,226 1,772 1,393 8,014 Reclassified to held-for-sale — — — 186 186 Exchange differences 28 213 216 (150) 307 At December 31, 2018 802 17,722 10,594 105 29,223 Deferred tax assets 802 17,722 10,594 3,264 32,382 Deferred tax liabilities — — — 3,159 3,159 As at December 31, 2018, unrecognized deferred tax assets amount to 81.1 million and 17.7 million, which can be carried forward indefinitely and up to a specified period, respectively. These relate primarily to business losses, depreciation carry forwards and other deductible temporary differences. The deferred tax asset has not been recognized on the basis that its recovery is not probable in the foreseeable future. Unrecognized deferred tax assets expire unutilized based on the year of origination as follows: 2018.12.31 In millions 2019 0.31 2020 0.08 2021 0.22 2022 2.97 2023 2.42 Thereafter 11.70 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 25. At December 31, 2017 2018 Thousand USD Thousand USD Long-term loan to a third party (b) 7,974 7,525 Long term deposits relate to IPP solar parks (a) 1,660 1,089 Financial Instruments(c) — 5,636 Allowance for expected credit losses(d) — (398) Financial assets 7,974 13,852 Long-term Prepayments 1,411 1,246 Non-financial assets 1,411 1,246 11,045 15,098 (a) The balance of long term deposits for land rental related to the IPP solar parks in Japan were USD1.7 million and USD 1.1 million as at December 31, 2017 and 2018, respectively. (b) The loan to a third party represents the USD 8.0 million and USD 7.1 million long-term note receivable as at December 31, 2017 and 2018, respectively, which was obtained in connection with the acquisition of a subsidiary in the USA in 2016 which holds 23MW of solar parks. The note receivable bears annual interest of 1% and is with principle payment schedule from 2018 to 2041. (c) During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swaps, which amounted to USD 224 thousand gain was recognized in the other losses for the year ended December 31, 2018. Notional amount Maturity Swaps USD 20,200,000 (Note 30(c)) December 8, 2027 From 3-month-USD Prime H.15 to 5% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value assets USA 2018/12/31 2018/12/31 2018/12/31 % Thousand Thousand From 2014 to 2019 5.00 20,200 224 The interest rate swaps settle on a quarter basis. The floating and fixed rate on the interest rate swaps is the local interbank rate of Japan and USA. The Group will settle the difference between the fixed and floating rate on a net basis. On March 30, 2018, the company cooperated with Renova, a listing company in Japan, and NEC Capital, and invested to a 40.8 MW project in Japan, And the company invested JPY 529 million (USD 4.8 million) for 45% distribution of profit or loss. The carrying amount as at December 31, 2018 was USD 5.4 million, with gain of fair value movement USD 579 thousand during the year of 2018. (d) Movements in the allowance for doubtful debts of trade and other receivables during the periods presented are as follows: At December 31, 2018 Thousand USD Balance at beginning of year — Effect of IFRS9 as at January 1, 2018 467 Adjusted balance at 1 January 2018 467 Provisions recognized on receivables (69) Exchange difference — Balance at end of the year 398 See accounting policies in Notes 3.20.3. The effect of initially applying IFRS 9 is described in Note 2.1. Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 26. TRADE AND OTHER PAYABLES At December 31, 2017 2018 Thousand USD Thousand USD Trade payables(Note a) 22,613 17,597 Other payables 4,031 4,658 Warranty provision to customers for supply of modules 24 — Other accrued expenses 711 4,310 Other tax payables(Note b) 1,410 4,104 Advances from customers 254 1,303 29,043 31,972 The credit periods on purchases of goods range from three months to a year. (a) The trade payable balance included the EPC construction payable of USD 13.3 million in Japan as of December 31, 2018. (b) The other tax payables included USD 3.7 million business tax accrued in Japan as of December 31, 2018. Movements in the warranty provision balance for provision of modules during the periods presented are as follows: At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 332 24 Provided for the year — — Reversal for the year (308) (24) Balance at end of the year 24 — The Group is obliged to provide limited warranties to its customers of solar projects with respect to certain levels of performance. The Group is able to determine, at the point of delivery, that the solar projects are performing in accordance with the contractual terms and as such no warranties are provided for. To date, the period of warranties has expired and the Group has not experienced any significant claims. |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
AMOUNTS DUE TO RELATED PARTIES | |
AMOUNTS DUE TO RELATED PARTIES | 27. AMOUNTS DUE TO RELATED PARTIES At December 31, Notes 2017 2018 Thousand USD Thousand USD Current Non-Trade Sky Solar New Energy Investment Ltd. a — 150 Beijing Sky Solar Investment Management Co., Ltd. b 28 61 28 211 28 211 Notes: (a) On May 24, 2018, the company entered a lawsuit for the deposit of CNY 1 million for a project investment in China paid by Sky Solar New Energy Investment Ltd on behalf of the company. The balance was settled with Sky Solar New Energy Investment Ltd on April 3, 2019, and the lawsuit has been withdrawn as at the date of this report. (b) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. The amount is a result of the licensed trademark used. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
BORROWINGS | |
BORROWINGS | 28. BORROWINGS At December 31, 2017 2018 Thousand USD Thousand USD Bank borrowings (a) 151,648 145,779 Other borrowings (b) 98,081 110,978 249,729 256,757 Secured (d) 244,030 252,896 Unsecured (d) 5,699 3,861 249,729 256,757 Variable-rate borrowings (c) 95,216 116,792 Fixed-rate borrowings (c) 154,513 139,965 249,729 256,757 Carrying amount repayable: Within one year 19,702 49,700 More than one year but not exceeding two years 17,593 14,821 More than two years but not exceeding five years 46,881 44,366 More than five years 165,553 147,870 249,729 256,757 Less: amounts repayable within one year shown under current liabilities 19,702 49,700 Amounts shown under non-current liabilities 230,027 207,057 (a) The balance of the bank borrowings as of December 31, 2017 and 2018 mainly include the bank borrowings in Japan, the United States and Uruguay. (b) The balance of the other borrowings as of December 31, 2017 and 2018 mainly include the borrowings in Japan. (c) The Group has variable-rate bank borrowings which carried interest at one-month bank interest rate in Czech and Uruguay plus margin as at December 31, 2017 and 2018. The effective interest rates on the Group’s borrowings as at December 31, 2017 and 2018 are as follows: At December 31, 2017 2018 Effective interest rate: Fixed-rate borrowings 3.52 % 3.18 % Variable-rate borrowings 4.82 % 5.02 % (d) Details of this pledge are set out in note 20(1). |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | 29 . OTHER CURRENT LIABILITIES At December 31, 2017 2018 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) 120,820 121,940 Transaction (Note 30(b)) — 8,383 As at December 31 120,820 130,323 (a) During the year ended December 31, 2014, Sky Solar Japan entered into silent partnership agreements that were amended and finalized on October 10, 2014 with two groups of third party investors (the “Silent Partners”), pursuant to which the Silent Partners provided financing and SSJ will develop and operate 21 solar parks with an aggregate capacity of 34.6 MW in Japan (the “SSJ Silent Partnership Assets”). In accordance with the agreements, SSJ contributed JPY750 million in cash and solar power projects with a carrying amount of JPY2.3 billion and an agreed valuation of approximately JPY4.6 billion. The Silent Partners contributed JPY5 billion in cash. No separate legal entity was established in connection with the silent partnership agreement. The SSJ Silent Partnership Assets are held and managed through the SSJ legal entity, subject to the provisions of the silent partnership agreement. The Silent Partners are not involved in the investment decisions associated with management of the SSJ Silent Partnership Assets or other assets and businesses which continue to be held and operated by SSJ, outside the auspices of the silent partnership agreement. Over an expected maximum period from the date of the agreement through June 2017, distributable profits from the SSJ Silent Partnership Assets shall be first distributed to the Silent Partners in proportion to their respective capital contributions, until a cumulative annual internal rate of return, or IRR, of 15% on their capital contributions is achieved. Any remaining profits shall be distributed to SSJ until a cumulative annual IRR of 15% of SSJ’s contributed amount, based on the agreed valuation, is achieved. The remaining profits, if any, shall be distributed to SSJ and the Silent Partner at the ratio of approximately 51% and 49%, respectively. Silent Partners shall only bear losses up to the amount of money they financed. The IRR of 15% is the discount rate required to make the present value of the total distributable profits expected to be generated by SSJ Silent Partnership Assets payable to certain members of Silent Partnership equal to the present value of the cumulative total of investments of certain Silent Partners. Distributable profits represent the cash that may be distributed to investors, including cash received from generating electricity or other sources, less the debts which fall due. Investments include the cash proceeds received from Silent Partners of JPY5 billion, cash contribution made from SSJ of JPY750 million and contribution of solar power projects with an agreed valuation of approximately USD45.5 million. Subject to the availability of distributable profits, the annual amount to be distributed to the Silent Partners is estimated to be approximately USD7.4 million (without considering the cumulative effect of IRR), before any amounts are distributable to the Company. In connection with the above transaction, Flash Bright Power Ltd. (“Flash Bright”), the entity wholly owned by Mr. Su, granted to an affiliate of one of the Silent Partners (“Investor”) an option to purchase from Flash Bright up to USD30 million worth of existing ordinary shares of Sky Solar Holdings, Ltd. at a per share price equal to the per ordinary share initial public offering price. This option is exercisable during a two-year period with an option to a one-year extension at the request of the Investor which Flash Bright can, at its sole discretion, approve or deny, commencing 180 days after the pricing date of this initial public offering. If, on any date during the exercise period, the market price of an ordinary share of the Company equals or exceeds 200% of the per ordinary share initial public offering price, the Investor shall be automatically deemed to have exercised the then remaining portion of the call option. Upon any exercise of the call option, the Investor may elect to pay the purchase price to Flash Bright in cash or through cashless settlement procedures. The call option was issued by Flash Bright for the benefit of the Group, to induce the Silent Partners to provide the financing and therefore the fair value associated with the call option of USD6,600 thousand measured on the grant date of October 10, 2014 was considered transaction costs and recorded within other losses in the consolidated statement of profit or loss and other comprehensive income. The fair value of the call option was determined by Income approach (Level 3 as defined in Note 3), in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Weighted average cost of capital was determined using a Capital Asset Pricing Model at 13.5% per annum. This option was exercisable during a two-year period with an option to a one-year extension at the request of the investor which Flash Bright could, at its sole discretion, approve or deny, commencing 180 days after the pricing date of the initial public offering. The investor did not request the one-year extension and such share purchase right has expired. In August 2015, SSJ further entered into certain definitive agreements (the “Amended Agreements”) with Silent Partners to increase the total capital contribution of JPY9 billion made by Silent Partners with respect to the total 67 solar parks (with additional 46 solar parks contributed by SSJ) with an aggregate capacity of 107.9 MW in Japan developed and operated by SSJ. According to the Amended Agreements, all the operating assets held under the original silent partnership agreement are transferred to the amended silent partnership agreement and the original silent partnership agreements are therefore terminated upon the transfer. In addition that: · One of the Silent Partners, assigned its full position, rights and obligation to another party of the Silent Partners (the “TK partner”), and would have no further obligations as agreed by all parties; · An amount of JPY 698 million (USD5.8 million) is agreed by SSJ being paid to the TK partner in order to amend the silent partnership agreements, and the new term of the Amended Agreements starts from August 28, 2015 to August 27, 2018 for three years. · The TK partner further invested an additional JPY4 billion (USD33.2 million), JPY2 billion of which is used by SSJ to extend a loan (the “Up-Stream Loan”) of the same principal amount to Sky International Enterprise Group Ltd. (“SIE”), a wholly owned subsidiary of the Group. The Up-Stream Loan has a 12- month term and bears interest at a 5% rate per annum. The proceeds of the Up-Stream Loan shall be used for, among others, the development of certain PV projects in Asia and the Americas. The remaining JPY2 billion proceeds are used by SSJ to continue executing its project pipeline in Japan; · For profit and loss distribution, it is agreed that during a distribution period, corresponding profits, after offset by the cumulative losses, multiplying the ratio of distribution, which is calculated as each party’s contribution ratio of total contributions, on the day of distribution will be distributed to SSJ and TK partner. In the case when the cumulative amount of losses exceeds the balance of total capital contribution, TK partner are only responsible for the amount of loss within the scope of capital contribution under the Amended Agreements, while the Company shall bear any excess amount; · Upon the completion of the solar power projects, SSJ is expected to transfer the ownership of one or more of the completed projects to a special purpose company formed by it or other third parties to recover the investments. Upon such transfer, it is contemplated that TK partner and SSJ will receive the distributable profits derived from the proceeds of such transfer pursuant to their respective percentages of contribution. In the event that SSJ still holds SSJ Silent Partnership Assets in the aggregate capacity of 10.79 MW (which is 10% of the aggregate capacity of the SSJ Silent Partnership Assets currently held by SSJ) or greater as of April 27, 2018, SSJ should either (1) purchase the remaining SSJ Silent Partnership Assets for a price agreed upon by an agent for the TK Partner or (2) secure a third party offer to purchase the remaining SSJ Silent Partnership Assets, and should notify the TK Partner by May 27, 2018 of its intent to settle in either case. If the TK Partner is able to secure a third party offer that is more attractive within 90 days of being so notified, SSJ shall transfer the remaining SSJ Silent Partnership Assets to such third party. If the TK Partner not only does not agree with the offer made by SSJ but also fails to find a third party offer that is more attractive, the TK Partner may elect to change the percentages of contribution to such percentages that will result in the TK Partner enjoying a 15% cumulative IRR. After completion of the changes of Amended Agreements, the Group continues to control the SSJ Silent Partnership Assets and retains substantially all the risks and rewards of ownership and as such will continue to consolidate these solar power projects in its consolidated financial statements. Considering the aforementioned changes in the Amended Agreements, the Group accounted for the financial liability associate with the amended silent partnership agreements as designated as fair value through profit or loss (“FVTPL”) in accordance with IAS 39, since the Silent Partnership Assets are managed and whose performance are evaluated by the Group on a fair value basis in accordance with a documented risk management strategy. The fair value of the financial liabilities were USD80,107 thousand as at December 31, 2016, and was estimated based on the anticipated operating results and cash flows generated by the related solar parks. The assumptions used in the fair value evaluation are disclosed in note 34. During the year ended December 31, 2016, a loss associated with the change in fair value and extinguishment associated with the original silent partnership agreement was recognized in other loss of USD2,764 thousand. During the year ended December 31, 2017, the Silent Partner has alleged that the Company had breached certain terms of the Silent Partnership Agreement, and demanded the exercise of its option right in connection with the Silent Partnership Agreement to adjust the original percentage of contribution ratio under the Silent Partnership Agreement so that it can enjoy15% cumulative IRR immediately. The Company recorded a fair value of JPY 13.6 billion (USD 120.8 million) as of December 31, 2017, and a loss of USD37.9 million associated with change of the fair value was recorded accordingly, which reflect Silent Partner’s claim for 15% cumulative IRR based on the option statements. According to the Silent Partnership Agreement, by August 27, 2018, SSJ should either secure financing for the purchase of, or secure a third-party offer to purchase, the SSJ Silent Partnership Assets, therefore such liability was reclassified as current liability. On June 25, 2018, the Silent Partner filed a law suit against SSJ, which alleged that there were significant difference in the understandings of the silent partnership and purported to seek certain damages. In December, 2018, SSJ and Sky international Enterprise Group Ltd. have entered into a TK Interest Settlement Agreement amounting to JPY 15.4 billion (USD 140.1 million)with Silent Partner and Silent Partner withdrew the lawsuit it filed against SSJ. Under the terms of the TK Interest Settlement Agreement, we made a payment of JPY 2 billion (US$18 million) to the Silent Partner upon the signing of the TK Interest Settlement Agreement, and an additional JPY 13.4 billion (US$121 million) has been paid on March 29, 2019, and the silent partnership been terminated. The Group recorded a carrying amount of fair value of JPY 13.4 billion (US$121 million) as of December 31, 2018, and a loss of USD16.6 million associated with change of the fair value was recorded accordingly. The movement of the balance is as follows: At December 31, 2017 2018 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss As at January 1, 80,107 120,820 Fair value effect during the year 37,918 16,605 Repayment of principal Interest paid back for distribution — (18,200) Exchange difference 2,795 2,715 As at December 31,(Note a) 120,820 121,940 |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 30. OTHER NON-CURRENT LIABILITIES December 31, 2017 2018 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) 1,253 1,378 Transaction (b) 55,426 57,487 Held for trading derivatives not designated in hedge accounting relationships (c) 1,128 1,127 Asset retirement obligation (d) 12,251 12,454 Others 78 — 70,136 72,446 (a) During the year ended December 31, 2015, three subsidiaries of SSJ, which holds four IPP solar parks, entered into silent partnership agreements with JA Mitsui Lease (the “JAML”). JAML provided approximately JPY63 million (USD519 thousand) in cash at the inception of the agreements, which amounted to 10% portion of total contributions in each subsidiaries, and in return are entitled to receive return in the next 15 years from the date of agreements based on an amount specified in accordance with formulas in the agreements. The fair value of this instrument is estimated based on the anticipated operating results and cash flows generated by the related solar parks for the contractual period of 15 years. The carrying amount of financial liabilities are USD1,253 thousand and USD1,378 thousand as at December 31, 2017 and 2018 with a loss associated with a change in fair value to the other loss of USD 396 thousand in 2017 and other loss of USD 88 thousand in 2018. The amount is designated as financial liabilities at FVTPL on initial recognition on the consolidated statement of financial position since the amount and timing of return is variable. The movement of the balance is as follows: 2017 2018 Thousand USD Thousand USD As at January 1, 829 1,253 Repayment — (2) Fair value effect during the year 396 88 Exchange difference 28 39 As at December 31, 1,253 1,378 (b) On September 18, 2015, the Group’s wholly-owned subsidiary Energy Capital Investment S.a.r.l (“ECI”), and a third party Hudson Solar Cayman, LP (“Hudson”), a private equity and infrastructure firm entered into strategic partnership agreements to fund solar projects in Latin America. As part of this partnership, Hudson will invest USD50 million by way of the convertible notes issued by ECI for the constructions of solar projects in Chile and Uruguay, and then they will receive a 49 percent non-controlling equity in these projects upon their completion if it elects to convert the outstanding principal and interest on the notes into such equity interest. On July 15, 2016, the agreement was amended to change the underlying projects from those in Chile to US. As of December 31, 2018, USD48.2 million has been funded under this arrangement. Under the note purchase agreement, initial amortization date means, for any notes, the earlier of the date which is nine months after the commercial operation date (for any projects, the date on which such projects enters into full commercial operation, achieves preliminary acceptance, achieves technical acceptance or other similar concept, as determined in accordance with the primary construction contract(s) for such project.) of the relevant project and twenty four months after the note purchase date. Then the maturity date of the notes will be the earlier of the twentieth anniversary of the initial amortization date or August 19, 2036. After all construction costs of project companies have been funded through long-term financing from Inter-American Development Bank, and upon completion of solar parks construction, the equity conversion will be effected. Hudson holds the conversion option and the mandatory prepayment option under the notes agreement. If an equity conversion has not occurred or delayed more than one year, the repayment of principal and interest is paid semi-annually according to repayment schedule set out in each note and the date of the request for note purchase is based on the estimated commercial operation date. The outstanding principal balance of each note shall be due and payable in full on the maturity date. The share price for conversion is equal to the equity value of the relevant project company multiplied by the percentage ownership in such project company represented by such project company shares on the date of conversion. On each equity conversion date, the outstanding principal balance of the notes issued in connection with the project company that is the subject of the equity conversion. On January 22, 2019, Hudson sent a notice of acceleration declaring that all Obligations (as defined in the Note Purchase Agreement), including the outstanding principal, accrued and unpaid interest and make-whole payment amount thereof, were immediately due. Hudson has also sent a demand on guaranty to the group and certain of its subsidiaries who are guarantors of the notes under the Note Purchase Agreement pursuant to a guaranty dated September 18, 2015, and has initiated proceedings in some of the jurisdictions where the group's business or subsidiaries are located to enforce the collaterals. On February 8, 2019, Hudson filed an action in New York Supreme Court seeking to enforce certain guaranties related to the Note Purchase Agreement against certain members of the group. The group intends to vigorously defend against Hudson's other actions and proceedings in order to minimize interruptions to its business and operations. Due to the above situation, the possibility of equity conversion is quite low, so as at 31 December, 2018, Hudson note fair value was calculated based on the fair value of future repayment of principal and interest. The Group accounted for the Hudson notes agreement as a financial liability designated as fair value through profit or loss (“FVTPL”) in accordance with IAS39. The fair value on initial recognition is the transaction price. For the year ended December 31, 2017 and 2018, a loss of USD791 thousand and a loss of USD8.9 million was recognized in other losses respectively. The movement of the balance is as follows: 2017 2018 Thousand USD Thousand USD As at January 1, 51,143 55,426 Interest addition during the year 5,756 6,510 Fair value effect during the year 791 8,914 Less: repayment during the year (2,264) (4,980) As at December 31, 55,426 65,870 Less: amounts repayable within one year shown under current liabilities(Note 29) — 8,383 Amounts shown under non-current liabilities 55,426 57,487 (c) During the year ended December 31, 2015, SSJ entered into two loan agreements totaling approximately JPY 2,300 million (USD19.1 million) in support of its business development. The loan agreements provide for a floating interest rate equal to 6-month Tokyo Interbank Offered Rate (“TIBOR”) plus 2.2%. To manage the interest rate exposure, SSJ entered into interest swap arrangements for the same period of the loan to swap the floating rate to a fixed interest rate equal to 3.16% and 3.08%. During the years ended December 31, 2016, SSJ entered into one loan agreement totaling approximately JPY 1,570 million (USD13.5 million) in support of its business development. The loan agreement provides for a floating interest rate equal to 6-month TIBOR plus 2%. SSJ had interest swap arrangement for the same period of the loan to swap fixed interest rate equal to 2.68%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swap, which amounted to a gain of USD204 thousand and a loss of USD30 thousand was recognized during the year ended December 31, 2017 and 2018 respectively. The major terms of these contracts are as follows: Notional amount Maturity Swaps JPY 547,200,000 May 23, 2031 From 6-months JPY TIBOR+2.2% to 3.16% JPY 1,752,800,000 May 31, 2032 From 6-months JPY TIBOR+ 2.2% to 3.08% JPY 1,570,000,000 November 30, 2032 From 6-months JPY TIBOR+ 2% to 2.68% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value liabilities Japan 2018/12/31 2017/12/31 2018/12/31 2017/12/31 2018/12/31 2017/12/31 % % Thousand Thousand Thousand Thousand From 2015 to 2032 2.93 2.93 35,217 34,443 1,117 1,064 The movement of the balance is as follows: 2017 2018 Thousand USD Thousand USD As at January 1, 1,255 1,064 Fair value effect during the year (204) 30 Exchange difference 13 23 As at December 31, 1,064 1,117 During the year ended December 2016, the Group acquired 23 solar parks in the USA, and assumed three bank loans totaling USD5.65 million and interest rate swaps agreements. The loan agreement provides for a floating interest rate equal to USD Federal Reserve statistical release H.15 (“Prime H.15”) for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5.75%, 6.00% and 6.27%, respectively. The 5.75% and 6.27% related interest swap arrangements were terminated in 2017, due to the termination of loan agreements. During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swaps, which amounted to USD 3 thousand loss and USD 54 thousand gain was recognized in the other losses for the year ended December 31, 2017 and 2018 respectively. Notional amount Maturity Swaps USD 2,000,000 June 30, 2026 From 3-month-USD Prime H.15 to 6% USD 20,200,000 (Note 25) December 8, 2027 From 3-month-USD Prime H.15 to 5% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value liabilities USA 2018/12/31 2017/12/31 2018/12/31 2017/12/31 2018/12/31 2017/12/31 % % Thousand Thousand Thousand Thousand From 2014 to 2019 5.09 5.09 2,000 19,764 10 64 The interest rate swaps settle on a quarter basis. The floating and fixed rate on the interest rate swaps is the local interbank rate of Japan and USA. The Group will settle the difference between the fixed and floating rate on a net basis. The movement of the balance is as follows: 2017 2018 Thousand USD Thousand USD As at January 1, 139 64 Repayment (78) — Fair value effect during the year 3 (54) As at December 31, 64 10 (d) The asset retirement obligation liability reflects the present value of estimated cost of decommissioning associated with long-lived assets at a future date. The liabilities incurred, including those from acquisition, are USD 4.8 million for the year ended December 31, 2017, and a negative USD 54 thousand for the year ended December 31, 2018. The accretion expenses are USD 108 thousand and USD 1,312 thousand for the year ended December 31, 2017 and 2018, respectively. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL | |
SHARE CAPITAL | 31. SHARE CAPITAL Number Share of shares capital Thousand USD The Company Ordinary shares of USD0.0001 each Authorized: On August 19, 2013 and December 31, 2013 500,000,000 — Issued: On August 19, 2013 and December 31, 2013 339,196,670 — Issued at IPO 50,830,000 5 On December 31, 2014 and 2015 390,026,670 5 Issued: On July 15, 2016 29,519,844 3 On December 31, 2016, 2017 and 2018 419,546,514 8 During the year ended December 31, 2016, the Group issued 29,519,844 restricted ordinary shares to SunPeak Universal Holdings, Inc. as part of the consideration to acquire 23 solar parks in USA (note 20 (1)). The par value and fair value of shares issued was USD 2,952 and USD10, 147,446 as of the acquisition date. As of December 31, 2017 and 2018, the Group had 940,000 and 940,000 ordinary shares respectively, including restricted shares, which were legally issued according to its share incentive plans, but were not deemed issued or outstanding from an accounting perspective. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 32. SHARE-BASED COMPENSATION (A) SHARE OPTION SCHEME A share option scheme (the “Share Option Scheme”) was adopted by Sky Solar Holdings pursuant to a resolution passed in 2009 for the primary purpose of providing incentives to directors and eligible employees. Under the Share Option Scheme, Sky Solar Holdings may grant options to eligible employees of the Group to subscribe for shares in Sky Solar Holdings. The total number of shares in respect of which options may be granted under the Share Option Scheme is not permitted to exceed 22,195,122 shares of Sky Solar Holdings in issue at any point in time, without prior approval from the shareholders of Sky Solar Holdings. The number of shares issued and to be issued in respect of which options granted and may be granted to any individual in any one year is not permitted to exceed 1% of the shares of Sky Solar Holdings in issue at any point in time, without prior approval from the shareholders of Sky Solar Holdings. No consideration is paid or payable on the grant of an option. Options may be exercised at any time upon vesting up to 10 years from the date of grant, at which point they expire. In 2010, Sky Solar Holdings granted 2 tranches of share options to employees of the Group. The exercise price of the options under tranches 1 and 2 was USD0.6833 per share option. For the first tranche of options, 50% of the options vest on the first year anniversary from the date of grant and the remaining options vest on the second year anniversary from the date of grant. For the second tranche of options, 25% of the options vest on the first year anniversary from the date of grant, 25% of the options vest on the second year anniversary from the date of grant, 25% of the options vest on the third year anniversary from the date of grant and the remaining options would be vest on the fourth year anniversary from the date of grant. The number of share options outstanding at the beginning and end of 2016, 2017 and 2018 was 729,000, and vested and exercisable at the end of 2016, 2017 and 20187 were 729,000, 729,000 and 729,000 respectively. The weighted average remaining contractual life as at December 31, 2018 was 1.05 years. The estimated fair values of the Tranche 1 and 2 options granted were USD144 thousand and USD1,509 thousand, respectively. (B) EQUITY INCENTIVE PLAN The Company has adopted the 2014 Equity Incentive Plan made effective as of October 30, 2014. Under the Equity Incentive Plan, the Company may grant options and restricted shares to eligible employees or directors of the Group to subscribe for shares in the Company. No consideration is paid or payable on the grant of an option. Options may be exercised at any time upon vesting up to 10 years from the date of grant, at which point they expire. On November 13, 2014, the Company granted 330,000 share options to directors of the Group under 2014 Equity Incentive Plan. The exercise price of the options under this tranche was USD1.0 per share option. The options shall vest and become exercisable with respect to one third of shares initially covered by the option on each of the first anniversary of the date of grant, the second anniversary of the date of grant, and the third anniversary of the date of grant. As the directors were resigned in June 2017, the option related to third anniversary of the date of grant cannot vest and be exercised. As at the end of each reporting period, the number of unvested share options and fair values in relation to these unvested share options not yet recognized did not have material impacts to the Group’s results or financial position. The contractual life was ended in 2017. On November 14, 2014, the Company granted 1,800,000 restricted shares to employees of the Group under 2014 Equity Incentive Plan. 25% of the restricted shares shall vest immediately upon the date of the listing of the Company’s American Depositary Shares on the NASDAQ Capital Market (the “IPO Date”). The rest 75% of the restricted shares shall vest with respect to 25% of restricted shares initially covered on each of the first anniversary of the IPO date, the second anniversary of the IPO date, and the third anniversary of the IPO date. As at December 31, 2016 and December 31, 2017, the unrecognized amounts of the unvested restricted shares were approximately USD174 thousand and nil, respectively. The Company measured the fair value of the restricted shares based on the open market quote of the Company’s shares on the IPO date which was US$1.14.” On July 1, 2015 and August 1, 2015, the Company further granted 500,000 and 500,000 restricted shares, respectively, to one employee of the Group under 2014 Equity Incentive Plan. 50% of the restricted shares shall vest on each of the first anniversary of the date of grant, and the rest 50% shall vest of the restricted shares shall vest on the second anniversary of the date of grant. As at December 31, 2016 and 2017, the unrecognized amounts of the unvested restricted shares were approximately USD156 thousand and nil, respectively. The Company measured the fair value of the restricted shares based on the open market quote of the Company’s shares, which was US$1.18 and US$1.13, respectively.” For the year ended December 31, 2016, 2017 and 2018, the fair values recognized in relation to the restricted shares amounted to approximately USD997 thousand, negative USD223 thousand and nil, respectively, were recorded in the consolidated financial statements as follows: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Cost of sales — — — Administrative expenses 997 (223) — 997 (223) — The negative USD 223 thousand was due to the resignation of the directors and eligible employees of the Group in 2017. |
DISPOSAL OF SUBSIDIARIES
DISPOSAL OF SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2018 | |
DISPOSAL OF SUBSIDIARIES | |
DISPOSAL OF SUBSIDIARIES | 33. DISPOSAL OF SUBSIDIARIES On March 31, 2016, SSJ disposed Solar Tech K.K (“ST”), one of its subsidiaries, which was in a net liability position, to a third party for JPY 900,000 yen (USD 8 thousand) and recognized a gain of USD 1.7 million. Thousand USD Current Assets 924 Cash and cash equivalents 628 Trade and other receivables 213 Deferred tax assets 83 Non-current Assets 4,578 IPP solar parks 3,758 Long term deposit and others 820 Current Liabilities (696) Trade and other payables (689) Tax payable (7) Non-current Liabilities (6,484) Borrowings (6,484) Net liabilities disposed of (1,678) Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received 8 Net liabilities disposed of 1,678 Gain on disposal of a subsidiary 1,686 Net cash outflow on disposal of a subsidiary is as follows: Thousand USD Cash and cash equivalent balances disposed of 628 Cash received as consideration 8 Net cash outflow arising on disposal 620 On September 29, 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. The Group continues to own a 75% equity interest and is able to appoint two out of four directors in the board of directors of 1088526. As a result of the transaction, the Group concluded it no longer was able to exercise control, but continued to have significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; and (2) the other shareholder have the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1088526 was measured at fair value, determined based on a discounted cash flow model of the underlying solar parks. The consideration received for the 25 preferred shares in 1088526 is CAD10.6 million (USD8.0 million). The Group recognized a gain of USD10 million upon the disposal of subsidiary. Thousand USD Current Assets 3,882 Cash and cash equivalents 3,260 Trade and other receivables 397 Other current asset 225 Non-current Assets 13,089 IPP solar parks 13,089 Current Liabilities (1,036) Trade and other payables (134) Borrowing (902) Non-current Liabilities (16,957) Long-term borrowing (15,539) Swap liability (1,418) Net liabilities disposed of (1,022) Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: 7,998 Net liabilities disposed of 1,022 Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary (1,126) Re-evaluate fair value of residual investment 2,188 Gain on disposal of a subsidiary 10,082 Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent 7,998 Less: Cash and cash equivalent balances disposed of (3,260) Net cash inflow arising on disposal 4,738 In January 2017, Energy Capital Investment II sarl ("ECI"), a wholly-owned subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. the ("Jade"), to sell its 25 preferred share in the capital of 1091187 B.C, Ltd. ("1091187"), with total purchase price of CAD4.0 million (USD3.0 million). 1091187 was incorporated with total capital of 75 common shares and 25 preferred shares, and owns Sky Solar (Canada) FIT 2 LP ("FTP 2LP") and its 6 operating solar facilities. The subsidiary was reclassified as held for sale as of December 31, 2016, and the transaction was completed in January 2017. The Company has significant influence over 1091187 B.C, Ltd. after this transaction. The Group's residual investment in 1091187 was measured at fair value, determined based on a discounted cash flow model of the underlying solar parks. The consideration received for the 25 preferred shares in 1091187 is CAD4.0 million (USD3.0 million). The Group recognized a gain of USD1.4million upon the disposal of subsidiary. Thousand USD Current Assets 295 Cash and cash equivalents 284 Trade and other receivables 11 Non-current Assets 3,294 IPP solar parks 3,253 Other Non-current Assets 41 Current Liabilities (143) Trade and other payables (62) Borrowing (81) Non-current Liabilities (1,319) Long-term borrowing (1,319) Net Assets disposed of 2,127 Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: 2,979 Net assets disposed of (2,127) Re-evaluate fair value of residual investment 612 Gain on disposal of a subsidiary 1,464 Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent 2,979 Less: Cash and cash equivalent balances disposed of (284) Net cash inflow arising on disposal 2,695 In January 2017, Sonusco Limited and Neurlus Limited, subsidiaries of the Group in Greece, entered into share purchase agreements with A.W. Aktina Wind Limited, to sell all shares of companies based in Cypriot, all of which hold 20 operating solar parks in Greece with capacity of 23.0 MW. The total purchase price was about EUR39.7 million (USD41.9 million). These subsidiaries were reclassified as held for sale as of December 31, 2016. The transaction was completed in April 2017, and the Group recorded a gain of USD 416 thousand. Thousand USD Current Assets 10,590 Cash and cash equivalents 3,633 Trade and other receivables 6,957 Non-current Assets 32,827 IPP solar parks 31,431 Other Non-current Assets 1,396 Current Liabilities (1,918) Trade and other payables (1,918) Net Assets disposed of 41,499 Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: 41,915 Net assets disposed of (41,499) Gain/(Loss) on disposal of a subsidiary 416 Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent 41,915 Less: Cash and cash equivalent balances disposed of (3,633) Net cash inflow arising on disposal 38,282 On December 30, 2018, SCE disposed GRANSOLAR CUBIERTAS 3, S.L.U (“GSC3”) and GRANSOLAR CUBIERTA 7, S.L.U (“GSC7”), two of its subsidiaries, which were in a net asset position, to three third parties for EUR 796 thousand (USD 911 thousand) and recognized a loss of USD 1.3 million. Thousand USD Current Assets 111 Cash and cash equivalents 64 Trade and other receivables 48 Deferred tax assets — Non-current Assets 2,418 IPP solar parks 2,415 Intangible assets 3 Current Liabilities (127) Trade and other payables (103) Tax payable (14) Borrowings (10) Non-current Liabilities (177) Deferred tax liabilities (177) Net assets disposed of 2,225 Loss on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received 911 Cash receivable 64 Net assets disposed of (2,225) Exchange difference (38) Loss on disposal of a subsidiary (1,288) Net cash outflow on disposal of a subsidiary is as follows: Thousand USD Cash and cash equivalent balances disposed of 64 Cash received as consideration — Net cash outflow arising on disposal 64 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 34. FINANCIAL INSTRUMENTS (a) Categories of financial instruments Year ended December 31, 2017 2018 Thousand USD Thousand USD Financial assets: Assets at amortized cost: Other non-current assets (Note 25) 9,634 8,216 Amounts due from related parties (Note 15) 22,345 1,539 Contract Assets — 731 Trade and other receivables (Note 16) 22,150 13,760 Restricted cash 40,716 44,182 Cash and cash equivalents 46,084 43,831 Assets at FVTPL: Amounts due from related parties (Note 15) — 19,939 Other non-current assets (Note 25) — 5,636 Total financial assets 140,929 137,834 Financial liabilities Liabilities at amortized cost: Trade and other payables 26,644 22,255 Amounts due to related parties — 211 Borrowings 249,729 256,757 Total liabilities at amortized cost 276,373 279,223 Liabilities at FVTPL: Other Current liabilities 120,820 130,323 Other non-current liabilities 57,885 59,992 Total liabilities at FVTPL 178,705 190,315 (b) Financial risk management objectives and policies The Group’s activities expose it to a variety of financial risks including market risk, credit risk and liquidity risk. This note presents information about the Group’s exposure to each of these risks, and the objectives, policies and processes for measuring and managing them. The management of the Company have the overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange rate to determine market risk. Risk management is carried out under policies approved by the management of the Company. The finance department identifies and evaluates financial risks in close co-operation with the Group’s operating units. The management of the Company provide written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk and liquidity risk. Currency risk Certain monetary assets and liabilities of the Group’s subsidiaries denominated in currencies other than the functional currency USD, including EURO, JPY and CAD. The following table presents these monetary assets and liabilities in USD at the end of each reporting period using the exchange rates as of the end of the reporting period: Year ended December 31, 2017 2017 2017 2018 2018 2018 Thousand Thousand Thousand Thousand Thousand Thousand USD USD USD USD USD USD Denominated Denominated Denominated Denominated Denominated Denominated in Euro in JPY in CAD in Euro in JPY in CAD Cash and cash equivalents 7,717 21,673 824 5,862 26,672 571 Restricted cash 952 26,537 470 937 30,606 431 Trade and other receivables and contract assets (a) 8,428 7,025 292 3,787 4,605 1,037 Amount due from related parties 9,695 — — 1,533 — 6 Other non-current assets — — — — 6,821 — Total financial assets 26,792 55,235 1,586 12,119 68,704 2,045 Trade and other payables 5,129 10,076 362 3,457 14,533 444 Borrowings 17,152 118,233 — 14,667 131,036 — Amounts due to related parties — — — — — — Other financial liabilities — 123,136 — — 124,435 — Total financial liabilities 22,281 251,445 362 18,124 270,004 444 (a) Trade and other receivables include only trade receivables, other receivables and deposits. Due to the influence of updated IFRS 9, the balance of trade and other receivables and contract assets as December 31, 2018 has been declining sharply comparing to that as December 31, 2017. The Group’s subsidiaries are mainly exposed to the foreign currency risk with respect to the EURO, JPY and CAD. The following table details sensitivity of the Group’s subsidiaries and the Company to a 10% increase and decrease in their respective functional currencies against respective foreign currencies. The 10% sensitivity rate used represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the end of each reporting period for a 10% change in respective functional currencies of the Group’s subsidiaries. A positive number below indicates an increase in profit where their respective functional currencies strengthen 10% against the functional currency. For a 10% weakening of their respective functional currencies against foreign currencies, there would be an equal and opposite impact on the equity and the balances below would be negative. Year ended December 31, 2017 2018 Thousand USD Thousand USD EURO 523 (306) CAD 142 81 JPY (22,760) (10,245) The Group currently does not have a foreign currency hedging policy but monitors its foreign risks and will consider hedging significant foreign currency exposure should they determine it appropriate. Interest rate risk The Group’s cashflow interest rate risk relates primarily to variable-rates on restricted cash, cash and cash equivalents and borrowings. The Group’s fair value interest rate risk relates mainly to fixed-rate borrowings. Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt and the cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period and the credit risk inherent in the contract. The average interest rate is based on the outstanding balances at the end of the reporting period. The sensitivity analysis below has been determined based on the exposure to interest rates for interest bearing bank balances and floating rate borrowings at the end of the reporting period. The analysis is prepared assuming that those balances outstanding at the end of the reporting period were outstanding for the whole year. A 5% increase or decrease which represents the management’s assessment of the reasonably possible charge in interest rates is used. If the interest rate on bank and other borrowings with variable interest rates had been 5% higher/lower and all other variables were held constant, the post-tax profit of the Group would increase/decrease by approximately USD268 thousand and USD293 thousand for the year ended December 31, 2017 and 2018 respectively. In management’s opinion, the sensitivity analysis is unrepresentative of the inherent interest rate risk as the exposure at the end of each reporting period does not reflect the exposure at the end of each reporting period. Credit risk The Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties is arising from the carrying amounts of the respective recognized financial assets as stated in the consolidated statement of financial position of the Group. In order to minimize and account for the exposure to credit risk, the management of the Company has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. This includes carrying out reviews the recoverable amount of each individual debtor at the end of each reporting period to ensure that adequate impairment losses are made for amounts considered irrecoverable. The Group will negotiate with the counterparties of the debts for settlement plans should the need arise. The Group’s credit risk primarily relates to trade and other receivables, contract assets, other non-current assets, restricted cash, cash and cash equivalents, and amounts due from related parties. The management of the Company generally grants credit only to customers and related parties with good credit ratings and also closely monitors overdue debts. Trade receivables and contract assets The credit risk of the Group as at December 31, 2017 is concentrated on trade receivables from electricity companies in Japan, Europe, USA and Uruguay, that amounted to approximately USD8.0 million and accounted for 78.4% of the Group’s total trade receivables. The credit risk of the Group as at December 31, 2018 is concentrated on trade receivables and contract assets from electricity companies in Japan, Europe and USA, that amounted to approximately USD5.8 million and accounted for 73.0% of the Group’s total trade receivables. The Group applies the IFRS 9 simplified model of recognizing lifetime expected credit losses for all trade receivables and contract assets as these items do not have a significant financing component. Summarized expected credit losses based on aging of trade receivables and contract assets for the year ended December 31, 2018 and 2017 respectively are: Expected credit losses for trade receivables and contract assets as at December 31, 2018 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 25 41 132 4 20 — 223 Expected credit losses for trade receivables and contract assets as at December 31, 2017 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 45 — — 136 1 — 183 In measuring the expected credit losses, the trade receivables and contract assets have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers. The expected loss rates are based on historical observed default rate, discount factor, forward looking estimates and expected default rate. The rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. The group has identified gross domestic product (GDP) and unemployment rates of the countries in which the customers are domiciled to be the most relevant factors and according adjusts historical loss rates for expected changes in these factors. However given the short period exposed to credit risk, the impact of these macroeconomic factors has not been considered significant within the reporting period. Trade receivables and contract assets are written off (i.e. derecognized) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the Group on alternative payment arrangement amongst other is considered indicators of no reasonable expectation of recovery. Deposits and debt investments The Group applies the IFRS 9 ECL model of recognizing expected credit losses. Summarized expected credit losses based on aging of short-term deposits and debt investments for the year ended December 31, 2018 and 2017 respectively are: Expected credit losses for short-term deposits and debt investments as at December 31, 2018 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 16 63 6 6 292 23 1,227 1,633 Expected credit losses for short-term deposits and debt investments as at December 31, 2017 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 41 — 310 502 8 — — 861 Summarized expected credit losses based on aging of long-term deposits and debt investments for the year ended December 31, 2018 and 2017 respectively are: Expected credit losses for long-term deposits and debt investments as at December 31, 2018 <180 days 181-360 days 1 - 2 years 2 - 3 years 3-4years 4-5years Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD — 1 — 4 5 388 398 Expected credit losses for long-term deposits and debt investments as at December 31, 2017 <180 days 181-360 days 1 - 2 years 2 - 3 years 3-4years 4-5years Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 1 4 5 7 449 467 Amount due from related parties The credit risk of the Group as at December 31, 2018 and 2017 on balances with related parties is concentrated on two related parties, which are engaged in solar industry in the People’s Republic of China (“PRC”) and overseas countries and amounted to approximately USD19.9 million and USD20.9 million, representing 92.8% and 93.3%, respectively, of the Group’s total balances from related parties. The Group uses more forward-looking information to recognize expected credit losses instead of IAS 39's 'incurred loss model'. The credit risk on liquid funds and restricted cash of the Group is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies and good reputation. The Group does not have concentration of credit risk on liquid funds at the end of each reporting period. Liquidity risk As noted in note 1, the management of the Group manages liquidity risk by closely and continuously monitoring their financial positions. The following tables detail the Group’s remaining contractual maturity for its financial liabilities based on the agreed repayment terms. The table has been drawn up based on the undiscounted cash flows, including both principal and interest, of financial liabilities based on the earliest date on which the Group can be required to pay. Weighted Total Total average undiscounted carrying interest rate <1 year 1 - 2 years 2 - 3 years >3 years cash flows amount Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At December 31, 2017 Trade and other payables N/A 26,644 — — — 26,644 26,644 Amounts due to related parties N/A 28 — — — 28 28 Borrowings— variable rate 4.82 % 4,854 8,173 8,164 118,998 140,189 95,216 Borrowings— fixed rate 3.52 % 14,848 17,527 15,611 146,977 194,963 154,513 46,374 25,700 23,775 265,975 361,824 276,401 At December 31, 2018 Trade and other payables N/A 22,255 — — — 22,255 22,255 Amounts due to related parties N/A 211 — — — 211 211 Borrowings— variable rate 5.02 % 6,794 11,742 11,742 133,006 163,284 116,792 Borrowings— fixed rate 3.18 % 42,906 9,935 9,935 109,386 172,162 139,965 72,166 21,677 21,677 242,392 357,912 279,223 The amounts included above for variable interest rate instruments for non-derivative financial liabilities are subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of each reporting period. The following table details the Group’s liquidity analysis for its financial liabilities at FVTPL, representing liabilities recorded by the Group during the year ended December 31, 2017 and 2018 for arrangements with the Parties defined in details in note 29 and note 30, as at December 31, 2017 and 2018. The table is presented based on the undiscounted projected cash outflows on such instruments that management of the Group expects to settle. The liquidity analysis for the Group’s financial liabilities at FVTPL was prepared based on the management’s understanding of the timing of the cash flows of the derivatives. Weighted average Total Total effective undiscounted carrying interest rate <1 year 1 - 2 years 2 - 3 years >3 years cash flows amount Thousand Thousand Thousand Thousand Thousand USD Thousand USD USD USD USD USD At December 31, 2017 Other Current liabilities 15 % 120,820 — — — 120,820 120,820 Other non-current liabilities 10.99 % 5,310 8,420 8,440 132,234 154,404 57,885 126,130 8,420 8,440 132,234 275,224 178,705 At December 31, 2018 Other Current liabilities 15 % 130,323 — — — 130,323 130,323 Other non-current liabilities 11.88 % 1,332 8,497 8,477 124,113 142,419 59,992 131,655 8,497 8,477 124,113 272,742 190,315 Fair value measurements Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows: · Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities · Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly · Level 3: unobservable inputs for the asset or liability. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorized (levels 1 to 3) based on the degree to which the inputs to the fair value measurements is observable. Financial assets Fair value Fair Valuation technique(s) Significant 1) Amounts due from related parties- non-current Amounts due from related parties – non-current—USD5,050 thousand as of December 31, 2018.(Note a) Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 3% per annum. (Note b) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries 2) Amounts due from related parties-current Amounts due from related parties - current—USD14,889 thousand as of December 31, 2018.(Note a) Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 3) Other non-current assets Other non-current assets—USD5,412 thousand as of December 31, 2018. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 17.52% per annum. (Note c) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries (a) The amounts due from related parties are regarded as amortized cost financial assets in 2017 under IAS 39, due to the adoption of IFRS 9 in 2018, the Group reclassified these amount into FVTPL. The detail impact of the reclassification can be referred to Note 2.1. (b) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of amounts due from related parties- non-current by approximately USD57 thousand as at December 31, 2018. (c) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current assets by approximately USD180 thousand as at December 31, 2018. Financial liabilities Fair value Fair Valuation technique(s) Significant 1) Other Current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 29) Other non-current liabilities—USD120,820 thousand as of December 31, 2017 and Other current liabilities—USD121,940 thousand as of December 31, 2018, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% and 6% per annum for year 2017 and 2018, respectively. Estimated net change in electricity income and direct costs was taken into account based on management’s experience and knowledge of market conditions of the specific industries. 2) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD1,253 thousand and USD1,378 thousand as of December 31, 2017 and December 31, 2018, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% per annum. (Note 1) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries. 3) Other current and non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) The total number of the balance was USD55,426 thousand and USD65,870 thousand as of December 31, 2017 and December 31, 2018. Other current liabilities shows as USD 8,383 thousand and Other non-current liabilities was 57,487 thousand as of December 31, 2018. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 10.8% and 12% for year 2017 and 2018 respectively. (Note 2) 4) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities— USD1,064 thousand and USD1,117 thousand as at December 31, 2017 and December 31, 2018. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 5) Interest rate swaps not designated in hedge accounting relationships (Note 25, 30) Other non-current liabilities—USD64 thousand and USD10 thousand as at December 31, 2017 and December 31, 2018. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A Note: (1) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD32 thousand and USD31 thousand as at December 31, 2017 and December 31, 2018, respectively. A 5% increase in estimated net change in electricity income and direct cost would increase the carrying amount of the non-current liabilities by USD63 thousand and USD63 thousand as at December 31, 2017 and December 31, 2018, respectively. (2) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD510 thousand and USD1,973 thousand as at December 31, 2017 and December 31, 2018, respectively. The management of the Group considers that the carrying amounts of the other financial assets and financial liabilities in the consolidated financial statements approximate their fair values. There were no transfers between Level 1 and Level 2 in the years ended December 31, 2016, December 31, 2017, and December 31, 2018. Fair value measurements and valuation processes In estimating the fair value of the financial assets and financial liabilities of the Group, the management of the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the management of the Group performs the valuation themselves with competent and qualified team members. The team establishes the appropriate valuation techniques and inputs to the model. The Chief Financial Officer reports the valuation findings to the board of directors of the Company regularly to explain the cause of fluctuations in the fair value of the related financial assets and liabilities. (c) Capital management The Group manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balances. The capital structure of the Group consists of net debt (which includes borrowings net of cash and cash equivalents) and equity attributable to owners of the Company (comprising issued share capital, share premium and other reserves) and to a limited extent, non-controlling interests. The Group reviews the capital structure regularly. As part of this review, consideration is given to the cost of capital and the risks associated with each class of capital and will attempt to balance its overall capital structure through raising additional capital and overall use of bank borrowings. |
DETAILS OF PRINCIPAL SUBSIDIARI
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | 12 Months Ended |
Dec. 31, 2018 | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | 35. DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP During the two years ended December 31, 2017 and December 31, 2018, The Company had direct and indirect interests in the following subsidiaries: Proportion of nominal value of issued share capital/registered capital held by Establishment the Company Principal Name Region date Currency Share capital 2017.12.31 2018.12.31 activities Sky Solar Bulgaria Co EOOD Bulgaria 02/07/2009 BGN 2,364,800 100 100 Operating entity, together with its 16 subsidiaries, engaged in the construction and management of solar parks and production and trading of solar equipment Sky Clean Energy Ltd. Canada 13/04/2009 CAD 100,000 100 100 Operating entity, together with its seven subsidiaries, engaged in the development, construction and sale of solar parks Moktap Holdings Ltd. Cyprus 09/03/2011 EUR 1,800 100 100 Holding entity Sky Development Renewable Energy Resources S.A. Greece 02/12/2009 EUR 1,260,000 100 100 Operating entity engaged in the construction, installation and management of solar parks Sky International Enterprise Group Ltd. Hong Kong 23/11/2007 HKD 10,000 100 100 Holding entity Sky Solar Japan K.K. Japan 16/10/2009 JPY 89,100,000 100 100 Holding entity Sky Solar Energy S.à.r.l. Luxembourg 28/09/2009 EUR 12,500 100 100 Holding entity Sky Capital Europe S.à.r.l. Luxembourg 18/05/2010 EUR 12,500 100 100 Holding entity Energy Capital Investment S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR 12,500 100 100 Holding entity Energy Capital Investment II S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR 12,500 100 100 Holding entity Sky Solar Iberica S.L. Spain 03/12/2009 EUR 1,200,000 100 100 Operating entity engaged in the construction of solar parks and provision of EPC services Sky Capital America Inc. (Note b) USA 23/07/2015 USD 1 100 100 Operating entity engaged in the development of solar parks Notes: (a) The above table lists the subsidiaries of the Group which, in the opinion of the management, principally affected the results or assets of the Group. To give details of other subsidiaries would, in the opinion of the management result in particular of excessive length. (b) The entity was newly established during the year ended December 31, 2015. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING LEASES | |
OPERATING LEASES | 36. OPERATING LEASES The Group as lessee Operating leases relate to leases of premises and land with lease term between 5 to 20 years. The Group does not have an option to purchase the leased land at the expiry of the lease periods. Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Minimum lease payments paid under operating leases 4,040 4,283 2,957 At the end of each reporting period, the Group had commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows: At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Within one year 4,468 4,420 3,240 In the second to fifth years inclusive 15,154 15,266 12,044 Over five years 79,172 44,594 32,495 98,794 64,280 47,779 The Group as lessor Operating leases relate to the investment property owned by the Group with lease term of 20 years. The lessee does not have an option to purchase the investment property at the expiry of the lease period. At the end of each reporting period, the Group had non-cancellable operating lease receivables as follows: At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Within one year 196 195 224 In the second to fifth years inclusive 782 780 896 Over five years 2,585 3,338 2,518 3,563 4,313 3,638 |
CAPITAL COMMITMENT
CAPITAL COMMITMENT | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL COMMITMENT | |
CAPITAL COMMITMENT | 37. CAPITAL COMMITMENT At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements 90,430 34,279 30,872 |
RETIREMENT BENEFIT SCHEMES
RETIREMENT BENEFIT SCHEMES | 12 Months Ended |
Dec. 31, 2018 | |
RETIREMENT BENEFIT SCHEMES | |
RETIREMENT BENEFIT SCHEMES | 38 . RETIREMENT BENEFIT SCHEMES The Group operated defined contribution schemes for its qualifying employees. The total costs charged to profit or loss of approximately USD816 thousand, USD627 thousand and USD1,303 thousand represent contributions payable to these schemes by the Group in the year ended December 31, 2016, 2017 and 2018, respectively. As at December 31, 2017 and 2018, contributions of nil and nil due in respect of the year ended December 31, 2017 and 2018 had not been paid over the plans, respectively. The amounts were paid subsequent to the end of the reporting period. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 39. RELATED PARTY TRANSACTIONS Other than the balances and transactions with related parties as disclosed elsewhere in these consolidated financial statements, the Group entered into the following significant transactions with related parties: (a) Sales to related parties Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD 1088526 B.C.Ltd and its subsidiaries — — 7 RisenSky Solar and its subsidiaries 254 277 278 1091187 B.C.Ltd and its subsidiaries — — 30 Oky Solar Holdings and its subsidiaries 525 — — Sky Global Solar S.A. 9 9 9 788 286 324 (b) Compensation of key management personnel The remuneration of directors and other members of key management were as follows: Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Short-term benefits 1,630 2,049 2,411 Retirement benefit scheme contributions 99 149 142 Share-based payment expense 646 112 — 2,375 2,310 2,553 The remuneration of directors and key executives is determined by the board of directors having regard to the performance of individuals and market trends. (c) Interest charged by Sky Solar (Hong Kong) International at a rate of 12% per annum. Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Sky Solar (Hong Kong) International Co., Ltd. 292 — — 292 — — (d) During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. Annual license fee will be based on the lower of HK$10 million (approximately US$1.3 million) and 0.05% of gross revenue of the Group from the year ended December 31, 2014 onwards. During the year ended December 31, 2017 and 2018, the Group has accrued approximately USD28 thousand and USD32 thousand using this trademark, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 40. SUBSEQUENT EVENTS In March 2019, Mr. Su entered a stock purchase agreement to sell all his ordinary shares of our Group in the form of ADSs to a Japan investor, and he paid back the amount due to the Group USD 14.9 million. The share delivery has not completed by the end of this report. On January 22, 2019, Hudson sent a notice of acceleration declaring that all Obligations (as defined in the Note Purchase Agreement), including the outstanding principal, accrued and unpaid interest and make-whole payment amount thereof, were immediately due. Hudson has also sent a demand on guaranty to the Company and certain of its subsidiaries who are guarantors of the notes under the Note Purchase Agreement pursuant to a guaranty dated September 18, 2015, and has initiated proceedings in some of the jurisdictions where the Company’s business or subsidiaries are located to enforce the collaterals. On February 8, 2019, Hudson filed an action in New York Supreme Court seeking to enforce certain guaranties related to the Note Purchase Agreement against certain members of the group (including Sky Solar). The company believes Hudson improperly and prematurely exercised its rights to enforce its share pledge for Energy Capital Investment S.à.r.l., its 100% owned subsidiary Renewable Capital Investment 2 S.L and its five consolidated Uruguay special purpose vehicle subsidiaries and intends to vigorously defend against Hudson’s other actions and proceedings in order to minimize interruptions to our business and operations. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Statement of compliance | 3.1 Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. |
Basis of preparation | 3.2 Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. 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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. These policies have been consistently applied throughout the periods presented. |
Basis of consolidation | 3.3 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: · the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Company, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income (expense) from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (expense) are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Non-controlling interests in subsidiaries are presented separately from the Group’s equity therein. Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. |
Business combinations | 3.4 Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and asset or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS12 Income Taxes and IAS 19 Employee Benefits respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date (see note 3.17.2); and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. |
Investments in associates | 3.5 Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. |
Revenue recognition | 3.6 Revenue recognition Revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the 5-step approach to revenue recognition: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The company recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. 3.6.1 Identify the contract with the customer A contract with a customer should meet all the following conditions: · the contract has been approved by the parties to the contract; · each party’s rights in relation to the goods or services to be transferred can be identified; · the payment terms for the goods or services to be transferred can be identified; · the contract has commercial substance; and · it is probable that the consideration to which the entity is entitled to in exchange for the goods or services will be collected. If a contract with a customer does not yet meet all of the above criteria, the entity will continue to re-assess the contract going forward to determine whether it subsequently meets the above criteria. If certain conditions are met, a contract modification will be accounted for as a separate contract with the customer. If not, it will be accounted for by modifying the accounting for the current contract with the customer. Whether the latter type of modification is accounted for prospectively or retrospectively depends on whether the remaining goods or services to be delivered after the modification are distinct from those delivered prior to the modification. 3.6.2 Identify the performance obligations in the contract At the inception of the contract, the entity should assess the goods or services that have been promised to the customer, and identify as a performance obligation: · a good or service (or bundle of goods or services) that is distinct; or · a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer. A series of distinct goods or services is transferred to the customer in the same pattern if both of the following criteria are met: · each distinct good or service in the series that the entity promises to transfer consecutively to the customer would be a performance obligation that is satisfied over time (see below); and · a single method of measuring progress would be used to measure the entity’s progress towards complete satisfaction of the performance obligation to transfer each distinct good or service in the series to the customer. A good or service is distinct if both of the following criteria are met: · the customer can benefit from the good or services on its own or in conjunction with other readily available resources; and · the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Factors for consideration as to whether a promise to transfer goods or services to the customer is not separately identifiable include, but are not limited to: · the entity does provide a significant service of integrating the goods or services with other goods or services promised in the contract; · the goods or services significantly modify or customise other goods or services promised in the contract; · the goods or services are highly interrelated or highly interdependent. 3.6.3 Determine the transaction price The transaction price is the amount to which an entity expects to be entitled in exchange for the transfer of goods and services. When making this determination, an entity will consider past customary business practices. Where a contract contains elements of variable consideration, the amount of variable consideration to which it will be entitled under the contract should be estimated. Variable consideration can arise, as a result of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties or other similar items. Variable consideration is also present if an entity’s right to consideration is contingent on the occurrence of a future event. The uncertainty relating to variable consideration is considered by limiting the amount of variable consideration that can be recognised. Specifically, variable consideration is only included in the transaction price if, and to the extent that, it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved. 3.6.4 Allocate the transaction price to the performance obligations in the contracts Where a contract has multiple performance obligations, the transaction price should be allocated to the performance obligations in the contract by reference to their relative standalone selling prices. If a standalone selling price is not directly observable, it should be estimated. Methods that might be used are including: · Adjusted market assessment approach · Expected cost plus a margin approach · Residual approach (only permissible in limited circumstances). Any overall discount compared to the aggregate of standalone selling prices is allocated between performance obligations on a relative standalone selling price basis. In certain circumstances, it may be appropriate to allocate such a discount to some but not all of the performance obligations. Where consideration is paid in advance or in arrears, whether the contract includes a significant financing arrangement and, if so, adjust for the time value of money should be considered. A practical expedient is available where the interval between transfer of the promised goods or services and payment by the customer is expected to be less than 12 months. 3.6.5 Recognise revenue when (or as) the entity satisfies a performance obligation Revenue is recognised as control is passed, either over time or at a point in time. Control of an asset is defined as the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. This includes the ability to prevent others from directing the use of and obtaining the benefits from the asset. The benefits related to the asset are the potential cash flows that may be obtained directly or indirectly. These include, but are not limited to: · using the asset to produce goods or provide services; · using the asset to enhance the value of other assets; · using the asset to settle liabilities or to reduce expenses; · selling or exchanging the asset; · pledging the asset to secure a loan; and · holding the asset. Revenue should be recognized over time if one of the following criteria is met: · the customer simultaneously receives and consumes all of the benefits provided by the Company as the Company performs; · the performance of the Company creates or enhances an asset that the customer controls as the asset is created; or · the performance of the Company does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the performance obligation is not satisfied 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: · the Company has a present right to payment for the asset; · the customer has legal title to the asset; · the Company has transferred physical possession of the asset; · the customer has the significant risks and rewards related to the ownership of the asset; and · the customer has accepted the asset. 3.6.6 Contract costs The incremental costs of obtaining a contract must be recognized as an asset if the entity expects to recover those costs. However, those incremental costs are limited to the costs that the entity would not have incurred if the contract had not been successfully obtained (e.g. ‘success fees’ paid to agents). A practical expedient is available, allowing the incremental costs of obtaining a contract to be expensed if the associated amortization period would be 12 months or less. Costs incurred to fulfill a contract are recognized as an asset if and only if all of the following criteria are met: · the costs relate directly to a contract (or a specific anticipated contract); · the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future; and · the costs are expected to be recovered. These include costs such as direct labor, direct materials, and the allocation of overheads that relate directly to the contract. The asset recognized in respect of the costs to obtain or fulfil a contract is amortized on a systematic basis that is consistent with the pattern of transfer of the goods or services to which the asset relates. The following is a discussion of the Company’s revenue recognition policies by segment under the new revenue recognition accounting standard: Electricity sales income When the Group owns and operates solar parks for the purpose of generating income from the sale of electricity over the life of the solar parks, electricity generation income is classified as revenue. When electricity income is generated from solar parks which the Group holds as inventories, the electricity income is considered incidental and classified as other operating income. Electricity generation income is recognized when the control of the electricity is transferred to the customer as promised in the sales contract. The contracts are long-term with fixed prices. The Group recognizes revenue over the life of the contract based on the volume of electricity delivered each month. EPC services solar energy system sales - Provision of pipeline plus EPC services The provision of Pipeline plus EPC services involves application of permits, sourcing of solar modules, and provision of construction services. The Group either applies for the permits required to construct and operate solar parks itself or acquires the permits through the acquisition of the equity interests in project companies, which are typically formed for the specific purpose of holding such permits. In the course of providing Pipeline plus EPC services, the Group sells the permits to customers through the disposal of project companies holding the relevant permits. Revenue from disposing project companies holding permits is recognized when equity interests in the relevant project companies are transferred to customers by the Group at which time control is transferred. In addition to revenue from sales of permits as discussed above, the Group also enters into separate contracts with customers for sourcing of modules and provision of construction services for their project companies if it is requested by the customers. Revenue from modules sourced and provision of construction service is recognized in accordance with sales of solar modules and construction contract discussed below. EPC services solar energy system sales - Build and transfer of solar parks Revenue from BT represents the sale of completed solar parks and is recognized when titles to the solar parks have been transferred at which point control is passed to the customer. Other sales - Sales of solar modules Revenue from the sales of solar modules is recognized when the modules are delivered and titles have passed. Solar modules are considered delivered and their titles have passed, at the point at which all the following conditions are satisfied: · the Company has a present right to payment for the asset; · the customer has legal title to the asset; · the Company has transferred physical possession of the asset; · the customer has the significant risks and rewards related to the ownership of the asset; and · the customer has accepted the asset. Other sales — O&M service Income from provision of O&M service and other administrative service is recognized when services are provided. Others Interest income from financial assets is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. 3.6.7 Contract assets and contract liabilities A contract asset arises when an entity transfers a good or performs a service in advance of receiving consideration from the customer. A contract asset becomes a receivable once an entity’s right to the consideration becomes unconditional (i.e., except for the passage of time). A contract liability arises when an entity receives consideration from its customer (or has the unconditional right to receive consideration) in advance of performance. For contracts that have multiple performance obligations, contract assets and contract liabilities are netted together at the contract level. The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at the reporting date on IPP sale of electricity. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. |
Inventories | 3.7 Inventories The Group’s inventories mainly comprise permits and related costs capitalized during the course of obtaining permits, solar modules and solar parks under development or completed solar parks that are held for sale by the Group within normal operating cycle which is usually twelve months since their completion of construction. Inventories are stated at the lower of cost and net realizable value. Costs of solar modules are calculated using weighted average method. Costs of permits include capitalized costs incurred to obtaining such permits (for example legal expenses, consultancy fees, staff costs and other costs). Costs of solar parks under development include costs relating to solar parks capitalized before construction is completed, such as modules installed and development costs incurred. The proceeds from the sale of solar parks held for sale is recognized as revenue of the Group and the carrying amount of the solar parks which is recognized as costs of sales of the Group. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Provisions are made for inventory whose carrying value is in excess of net realizable value. Certain factors could impact the realizable value, so the Group continually evaluates the recoverability based on assumptions about market conditions. The Group regularly reviews the cost against its estimated net realizable value and records lower of cost and net realizable value to cost of sales, if inventories have costs in excess of estimated net realizable values. |
Assets classified as held for sale | 3.8 Assets classified as held for sale Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. 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. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified a held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. The Group discontinues the use of the equity method at the time of disposal when the disposal results in the Group losing significant influence over the associate or joint venture. After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture in accordance with IFRS 9 unless the retained interest continues to be an associate or a joint venture, in which case the Group uses the equity method (see the accounting policy regarding investments in associates or joint ventures above). Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. |
IPP solar parks | 3.9 IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Costs include expenditures for solar modules, permits and other direct costs capitalized in the course of construction. Such costs are capitalized starting from the point in time it is determined that development of the IPP solar project is probable. Permits and related costs capitalized during the course of obtaining permits and solar parks under development are stated in the consolidated statement of financial position at cost less subsequent accumulated impairment losses, if any. Depreciation of completed solar parks commences once the solar parks are successfully connected to grids and begin generating electricity. Depreciation is recognized over their estimated useful lives of the solar parks (less residual value if any), 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. IPP solar parks are derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of solar parks is determined as the difference between the sales proceeds and the carrying amount of the solar parks and is recognized in other operating income and loss. At the end of each reporting period, the Group performs impairment review on IPP solar parks when impairment indicators arise in different regions, if any. |
Property, plant and equipment | 3.10 Property, plant and equipment Property, plant and equipment are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Depreciation is recognized so as to write off the cost of assets less their residual values over their estimated useful lives, 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. The property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives after taking into account the residual values: Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. |
Intangible assets | 3.11 Intangible assets Intangible assets acquired separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. |
Investment property | 3.12 Investment property Investment property 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 measured at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. 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 investment property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the investment property is derecognized. |
Leasing | 3.13 Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Group as lessor Contingent rental arising under operating leases are recognized as rental income in the period in which they are incurred. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. IPP solar parks—the Group as lessor For IPP solar parks where customers purchase electricity from the Group under power purchase agreements in certain countries, facts and circumstances of the Feed-in-Tariff policies were changed mandatorily which triggered re-assessment on accounting for these agreements. As a result, the newly issued Feed-in-Tariff policies may indicate that it is remote that one or more parties other than the purchaser will take more than an insignificant amount of the output or other utility that will be produced or generated by the asset during the term of the arrangement, and the price that the purchaser will pay for the output is neither contractually fixed per unit of output nor equal to the current market price per unit of output as of the time of delivery of the output. These agreements will be accounted for under such circumstance pursuant to IFRIC 4, Determine whether an Arrangement Contains a Lease and IAS 17, Leases as an operating lease. Revenue is recognized based upon the amount of electricity delivered as determined by remote monitoring equipment at rates specified under the contracts, assuming all other revenue recognition criteria are met. The rental income from operating lease of these IPP solar parks is presented as electricity generation income in note 3. There is no minimum lease payment since all lease payment are contingent based on actual volume of electricity produced. The Group as lessee Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Foreign currencies | 3.14 Foreign currencies In preparing the financial statements of each individual group entity, transactions in currencies other than the functional currency of that entity (i.e. foreign currencies) are recorded in the respective functional currency (i.e. the currency of the primary economic environment in which the entity operates) at the rates of exchanges prevailing on the dates of the transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are recognized in profit or loss in the period in which they arise. For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into the presentation currency of the Group using exchange rates prevailing at the end of each reporting period. Income and expenses items are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized in other comprehensive income (expense) and accumulated in equity under the heading of translation reserve (attributed to non-controlling interests as appropriate). On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e. partial disposals of associates that do not result in the Group losing significant influence), the proportionate share of the accumulated exchange differences is reclassified to profit or loss. |
Borrowing costs | 3.15 Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in profit or loss in the year in which they are incurred. The amount of borrowing costs eligible for capitalisation is calculated as follows: · The amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on a specific borrowing during the period, less any investment income on the temporary investment of those borrowings. · The amount of borrowing costs eligible for capitalisation on general borrowings is determined by applying a capitalisation rate to the expenditures on qualifying assets. The capitalisation rate is the weighted average of the borrowing costs applicable to the borrowings of the entity that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The following example illustrates how to calculate the amount of borrowing costs to be capitalised. |
Taxation | 3.16 Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. 3.16.1 Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘(loss) profit before taxation’ as reported in the consolidated statement of profit or loss and other comprehensive income (expense) because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. 3.16.2 Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. In addition, Group’s subsidiaries have legally enforceable rights to set off a tax asset and tax liability when they relate to income taxes levied by the same taxation authority and the taxation authority permits the Group’s subsidiaries to make or receive a single net payment. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. 3.16.3 Current and deferred tax for the year Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income (expense) or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income (expense) or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
Impairment of tangible and intangible assets other than goodwill | 3.17 Impairment of tangible and intangible assets other than goodwill At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. 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 for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Financial instruments | 3.18 Financial instruments Recognition Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instrument. |
Financial assets | 3.19 Financial assets The Company classifies the financial assets based on the business model for managing the asset and the asset’s contractual cash flow characteristics. Financial assets of the Group consist of cash and cash equivalents, restricted cash, trade and most other receivables, contract assets, amounts due from related parties, and most other non-current assets. 3.19.1 Classification and initial measurement of financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15 and contract assets, all financial assets are initially measured at fair value adjusted for transaction costs. Financial assets are classified into the following categories: · amortized cost · fair value through profit or loss (FVTPL) The classification is determined by both: · the entity’s business model for managing the financial asset · the contractual cash flow characteristics of the financial asset. All income and expenses relating to financial assets that are recognized in profit or loss are presented within other loss, except for impairment of trade and most other receivable, contract assets, most amounts due from related parties and most other non-current assets which is presented within provision on receivables and other non-current assets. 3.19.2 Subsequent measurement of financial assets Financial assets at amortized cost Financial assets are measured at amortized cost if the assets meet the following conditions (and are not designated as FVTPL): · they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows · the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding After initial recognition, these are measured at amortized cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, restricted cash, trade and most other receivables, most amounts due from related parties and most other non-current assets. Financial assets at fair value through profit or loss (FVTPL) Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorized at fair value through profit and loss. Further, irrespective of business model financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. 3.19.3 Impairment of financial assets IFRS 9’s impairment requirements use more forward-looking information to recognize expected credit losses – the ‘expected credit loss (ECL) model’. This replaces IAS 39’s ‘incurred loss model’. Instruments within the scope of the new requirements included loans and other debt-type financial assets measured at amortized cost, trade and most other receivables, and contract assets. Recognition of credit losses is no longer dependent on the Group first identifying a credit loss event. Instead the Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this forward-looking approach, a distinction is made between: · financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) and · financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’). ‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date. ‘12-month expected credit losses’ are recognized for the first category while ‘lifetime expected credit losses’ are recognized for the second category. Previous financial asset impairment under IAS 39 In the prior year, the impairment of trade receivables was based on the incurred loss model. Individually significant receivables were considered for impairment when they were past due or when other objective evidence was received that a specific counterparty will default. Receivables that were not considered to be individually impaired were reviewed for impairment in groups, which are determined by reference to the industry and region of the counterparty and other shared credit risk characteristics. The impairment loss estimate was then based on recent historical counterparty default rates for each identified group. 3.19.4 Trade receivables and contract assets The Group makes use of a simplified approach in accounting for trade receivables and contract assets, and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix. The Group assess impairment of trade receivables and contract assets on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due. Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. 3.19.5 Reclassification of financial assets When, and only when, the Company changes its business model for managing financial assets it must reclassify all affected financial assets. 3.19.6 Derecognition of financial assets The basic premise for the derecognition model is to determine whether the asset under consideration for derecognition is: · an asset in its entirety or · specifically identified cash flows from an asset (or a group of similar financial assets) or · a fully proportionate (pro rata) share of the cash flows from an asset (or a group of similar financial assets). or · a fully proportionate (pro rata) share of specifically identified cash flows from a financial asset (or a group of similar financial assets) Once the asset under consideration for derecognition has been determined, an assessment is made as to whether the asset has been transferred, and if so, whether the transfer of that asset is subsequently eligible for derecognition. An asset is transferred if either the entity has transferred the contractual rights to receive the cash flows, or the entity has retained the contractual rights to receive the cash flows from the asset, but has assumed a contractual obligation to pass those cash flows on under an arrangement that meets the following three conditions: · the entity has no obligation to pay amounts to the eventual recipient unless it collects equivalent amounts on the original asset · the entity is prohibited from selling or pledging the original asset (other than as security to the eventual recipient), · the entity has an obligation to remit those cash flows without material delay Once an entity has determined that the asset has been transferred, it then determines whether or not it has transferred substantially all of the risks and rewards of ownership of the asset. If substantially all the risks and rewards have been transferred, the asset is derecognised. If substantially all the risks and rewards have been retained, derecognition of the asset is precluded. If the entity has neither retained nor transferred substantially all of the risks and rewards of the asset, then the entity must assess whether it has relinquished control of the asset or not. If the entity does not control the asset then derecognition is appropriate; however if the entity has retained control of the asset, then the entity continues to recognise the asset to the extent to which it has a continuing involvement in the asset. |
Financial liabilities and equity instruments | 3.20 Financial liabilities and equity instruments 3.20.1 Classification as debt or equity Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3.20.2 Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. All equity investments are to be measured at fair value in the statement of financial position, with value changes recognized in profit or loss, except for those equity investments for which the entity has elected to present value changes in other comprehensive income. There is no cost exception for unquoted equities. 3.20.3 Financial liabilities As the accounting for financial liabilities remains largely the same under IFRS 9 compared to IAS 39, the Group’s financial liabilities were not impacted by the adoption of IFRS 9. However, for completeness, the accounting policy is disclosed below. 3.20.4 Financial liabilities of amortized cost All financial liabilities are measured at amortized cost, except for financial liabilities at fair value through profit or loss(FVTPL). Other financial liabilities (including trade and other payables, amounts due to related parties, borrowings, amounts due to Sky Solar Holdings) are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Interest expense is recognized on an effective interest basis. 3.20.5 Financial liabilities at fair value through profit or loss (“FVTPL”) Financial liabilities held for trading are measured at FVTPL, and all other financial liabilities are measured at amortized cost unless the fair value option is applied. An option is to designate a financial liability as measured at FVTPL if: doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an 'accounting mismatch') that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases, or the liability is part or a group of financial liabilities or financial assets and financial liabilities that is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the entity's key management personnel. A financial liability which does not meet any of these criteria may still be designated as measured at FVTPL when it contains one or more embedded derivatives that sufficiently modify the cash flows of the liability and are not clearly closely related. Gains and losses on financial liabilities designated as at FVTPL are required to be split into the amount of change in fair value attributable to changes in credit risk of the liability, presented in other comprehensive income, and the remaining amount presented in profit or loss. The recognition of the full amount of change in the fair value in profit or loss is allowed only if the presentation of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. That determination is made at initial recognition and is not reassessed. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss, the entity may only transfer the cumulative gain or loss within equity. 3.20.6 Reclassification of financial liabilities After initial recognition, the financial liability cannot be reclassified. 3.20.7 Derecognition of financial liabilities A financial liability should be removed from the balance sheet when, and only when, it is extinguished, that is, when the obligation specified in the contract is either discharged or cancelled or expires. Where there has been an exchange between an existing borrower and lender of debt instruments with substantially different terms, or there has been a substantial modification of the terms of an existing financial liability, this transaction is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. A gain or loss from extinguishment of the original financial liability is recognised in profit or loss. |
Share-based compensation | 3.21 Share-based compensation Shares granted to the directors and eligible employees For shares granted or transferred by controlling shareholders in exchange of services received by the Group that are conditional within a vesting period, the fair value of services received is determined by reference to the fair values of relevant shares granted or transferred. Vesting conditions, other than market conditions, shall not be taken into account when estimating the fair value of the shares at the measurement date. Instead, vesting conditions shall be taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount. The amount recognized for goods or services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. The fair value of shares granted or transferred at the date of grant or date of transfer is expensed as share-based compensation on a straight-line basis over the vesting period, with a corresponding increase in equity (share-based compensation reserve). The forfeitures will be estimated to adjust over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such original estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change. At the time when the shares were cancelled during the vesting period, the Group accounts for the cancellation as an acceleration of vesting, and recognizes immediately the amount that otherwise would have been recognized for services received over the remainder of the vesting period. The amount previously recognized in share-based compensation reserve will remain in that reserve. Shares granted to non-employees Shares issued in exchange of services are measured at the fair values of the services received, unless that fair value cannot be reliably measured, in which case the services received are measured by reference to the fair value of the shares issued. The fair values of the services received are recognized as expenses, with a corresponding increase in equity (share capital and share premium), when the counterparties render services, unless the services qualify for recognition as assets. Share options granted to eligible employees Share options granted by the Company or controlling shareholders in exchange for service received by the Group are measured by reference to the fair value of the share options granted. The fair value of services received is expensed as share-based compensation on a straight-line basis over the vesting period with a corresponding increase in equity (share-based compensation reserve). At the end of each reporting period, the Group revises its estimates of the number of options that are expected to ultimately vest. The impact of the revision of the original estimates during the vesting period, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. When share options are exercised, the amount previously recognized in equity will be recognized in share capital and share premium. When the share options are forfeited after the vesting date or are still not exercised at the expiry date, the amount previously recognized equity will be remained in the share-based compensation reserve. |
Provisions | 3.22 Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. 3.22.1 Warranties Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognized at the date of sale of the relevant products, at the directors’ best estimate of the expenditure required to settle the Group’s obligation. 3.22.2 Contingent liabilities Unless the possibility of an outflow of resources embodying economic benefits is remote, contingent liabilities are disclosed where it is not probable that the Company will make a transfer of economic benefit to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability |
APPLICATION OF NEW AND AMENDM_2
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Schedule of financial instruments reclassified upon initial application of IFRS 9 | On the date of initial application, 1 January 2018, the financial instruments of the Group were reclassified as follows: Measurement Category Carrying Amount Closing Balance Opening Balance Original IAS 39 New IFRS 9 31 December, Adoption of 1 January, Category Category 2017(IAS 39) IFRS 9 2018(IFRS 9) Cash and cash equivalents Amortised cost Amortised cost 46,084 — 46,084 Restricted cash Amortised cost Amortised cost 40,716 — 40,716 Trade and other receivables Amortised cost Amortised cost 22,150 (1,044) 21,106 Other non-current assets Amortised cost Amortised cost 9,634 (467) 9,167 Amounts due from related parties CNE Amortised cost Amortised cost 1,493 — 1,493 Su Weili Amortised cost FVTPL 15,220 — 15,220 RisenSky Solar S.a.r.l. Amortised cost FVTPL 5,632 (433) 5,199 140,929 (1,944) 138,985 There has been no changes to the classification or measurement of financial liabilities as a result of the application of IFRS 9. Reconciliation of statement of financial position balances from IAS 39 to IFRS 9 at 1 January 2018: IAS 39 IFRS 9 Carrying Carrying amount amount Retained 31 December, 1 January, earnings 2017 Reclassification Remeasurement 2018 effect Fair value through profit or loss Amounts due from related parties — 19,605 (433) 19,172 (433) Amortised cost Cash and cash equivalents 46,084 — — 46,084 — Restricted cash 40,716 — — 40,716 — Amount due from related parties 22,345 (19,605) — 2,740 — Trade and other receivables 22,150 — (1,044) 21,106 (1,044) Other non-current assets 9,634 — (467) 9,167 (467) Total financial asset balances, reclassification and remeasurement at 1 January 2018 140,929 — (1,944) 138,985 (1,944) |
Schedule of reconciliation of statement of financial position balances from IAS 18 to IFRS 15 | IAS 18 IFRS 15 Carrying Carrying amount amount Retained 31 December, 1 January, earnings 2017 Reclassification Remeasurement 2018 effect Contract assets — 819 — 819 — Trade and other receivables 34,582 (819) — 33,763 — Total balances, reclassification and remeasurement at 1 January 2018 34,582 — — 34,582 — |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful life of property, plant and equipment | Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE | |
Schedule of categories of the Group's revenue | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Related parties: —EPC services solar energy system sales Sales of permits 525 — — —Other sales -O&M services 263 286 324 -Sales of solar modules — — — 263 286 324 Subtotal 788 286 324 Non-related parties —Electricity sales income 53,658 53,614 61,438 —EPC services solar energy system sales -Provision of Pipeline plus EPC services Sales of permits — — — Provision of construction services 4,954 285 198 - BT 4,232 — — 9,186 285 198 —Other sales -O&M services 2,290 2,548 2,708 -Sales of solar modules 3 — 1 2,293 2,548 2,709 Subtotal 65,137 56,447 64,345 Total 65,925 56,733 64,669 |
Schedule of receivables, contract assets and contract liabilities from contract with customers | December 31, January 1, 2018 2018 Thousand USD Thousand USD Receivables, which are included in ‘trade and other receivables’ — 819 Receivables, which are included in ‘assets held for sale’ — — Contract assets 731 — 731 819 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT INFORMATION | |
Schedule of revenue and non-current assets based on geographical information | Revenue for the year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Bulgaria 871 966 912 Canada 8,724 382 361 Czech 3,197 3,548 4,103 Germany 27 — — Greece 8,748 1,650 1,613 Japan 37,757 37,887 41,140 PRC — — 29 Spain 379 421 329 USA 3,797 6,681 4,914 Uruguay 2,425 5,198 11,268 65,925 56,733 64,669 The Group’s revenue disaggregated by pattern of revenue recognition and primary geographical markets is as follows: Revenue for the year ended December 31, 2018 EPC services solar energy system sales Sales of solar modules Electricity sales income O&M services Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Bulgaria — — — 912 912 Canada 177 1 143 40 361 Czech — — 4,103 — 4,103 Greece — — — 1,613 1,613 Japan — — 40,925 215 41,140 PRC — — 29 — 29 Spain — — 329 — 329 USA 21 — 4,822 71 4,914 Uruguay — — 11,087 181 11,268 198 1 61,438 3,032 64,669 Revenue for the year ended December 31, 2017 EPC services solar energy system sales Sales of solar modules Electricity sales income O&M services Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Bulgaria — — — 966 966 Canada 256 — 126 — 382 Czech — — 3,548 — 3,548 Greece — — 146 1,504 1,650 Japan — — 37,671 216 37,887 Spain — — 421 — 421 USA 29 — 6,647 5 6,681 Uruguay — — 5,056 142 5,198 285 — 53,615 2,833 56,733 Non-current assets At December 31, 2017 2018 Thousand USD Thousand USD Bulgaria 92 79 Canada 1,956 1,707 Chile 3,164 5,545 Czech 15,127 13,791 Greece 109 94 Japan 234,398 180,794 PRC 268 1,134 Spain 6,446 545 USA 45,137 42,563 Uruguay 106,877 110,628 413,574 356,880 |
Schedule of revenue from customers | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Customer A 10,504 13,056 14,079 Customer B 10,861 11,684 11,774 Customer C 8,164 9,912 10,996 Customer D 7,103 * 10,269 * |
INVESTMENT INCOME (Tables)
INVESTMENT INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT INCOME | |
Schedule of investment income | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Interest income 83 186 93 Interest income from amounts due from related parties 242 259 298 Share of profit of associates(Note b) 173 — 189 Disposal of associates(Note a) — 7,446 — 498 7,891 580 (a) In March 2017, Sky Solar Japan KK entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. The company recorded a gain on disposal of subsidiaries of JPY 837 million (USD 7.4 million). (b) Since the Group maintains 30% of the variable returns of 1088526 B.C. Ltd. ("1088526") and 1091187 B.C. Ltd. ("1091187") by 2018 (Note 22), the Group recorded the share of profit of USD 189 thousand in 2018. |
FINANCE COSTS (Tables)
FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE COSTS | |
Schedule of finance costs | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Interest on: Bank borrowings (2,611) (3,865) (6,006) Other borrowings (3,757) (8,335) (11,324) (6,368) (12,200) (17,330) |
STAFF COSTS, ADMINISTRATIVE E_2
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |
Schedule of staff costs, administrative expenses and cost of sales and services | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Depreciation of property, plant and equipment 271 298 204 Amortization of intangible assets 71 44 52 Depreciation of solar parks 14,208 14,272 19,414 Auditor’s remuneration 1,200 1,050 1,088 Directors’ emoluments: Salaries and other benefits 392 887 1,194 Retirement benefits scheme contributions 27 36 42 Share-based compensation 46 (43) — 465 880 1,236 Others staff: Other staff costs 8,090 7,625 7,324 Retirement benefits scheme contributions 1,046 591 1,261 Share-based compensation 951 (180) — 10,087 8,036 8,585 Total staff costs 10,552 8,916 9,821 |
INCOME TAX (EXPENSE) CREDIT (Ta
INCOME TAX (EXPENSE) CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX (EXPENSE) CREDIT | |
Schedule of components of income tax (expense) credit | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Current tax (10,976) (4,906) (15,299) Deferred tax 9,699 11,436 8,014 (1,277) 6,530 (7,285) |
Schedule of reconciliation of taxation with the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD (Loss) profit before taxation 4,559 (39,580) (14,835) Tax at the domestic income tax rate (2016: 29%, 2017: 27.8%, 2018: 27.8%) 1,322 (11,003) (4,124) Tax effect of income not taxable for tax purpose (1,802) — (158) Tax effect of expenses not deductible 716 1,898 3,116 Overprovision in prior years — (715) — Tax effect of tax losses not recognized 5,321 3,007 10,318 Recognition of deferred tax assets previously not recognized (3,646) — — Utilization of tax losses previously not recognized (2,463) (601) (1,530) Effect of different tax rates of subsidiaries operating in other jurisdictions 1,829 884 (337) Income tax expense (benefit) 1,277 (6,530) 7,285 Effective income tax rate 28 % 16 % (49) % |
(LOSS) EARNINGS PER SHARE (Tabl
(LOSS) EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
(LOSS) EARNINGS PER SHARE | |
Schedule of earnings per share | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD (Loss) profit (Loss) profit for the purpose of basic and diluted (loss) earnings per share 3,784 (33,171) (21,955) Year ended December 31, 2016 2017 2018 Number of shares Weighted average number of ordinary share outstanding- basic and diluted 401,602,159 418,314,541 419,546,514 Basic net (loss) earnings per share (0.1) (0.05) Diluted net (loss) earnings per share (0.1) (0.05) |
Schedule of anti-dilutive shares by type | Year ended December 31, 2016 2017 2018 Options 330,000 220,000 220,000 Non-vested restricted shares 950,000 940,000 940,000 1,280,000 1,160,000 1,160,000 |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING INCOME | |
Schedule of other operating income | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Gain(Loss) on disposal of IPP solar parks(Note a) 1,248 — 8,491 Gain on sale of permits and rights(Note b) — — 18,220 Gain(Loss) on disposal of subsidiaries (Note 21, Note 33) 11,768 1,875 (1,288) Others 147 193 207 13,163 2,068 25,630 (a) On March 30, 2018, the company cooperated with Renova, a listing company in Japan, and NEC Capital, and invested to a 40.8 MW project in Japan, And the company invested JPY 529 million (USD 4.8 million) for 45% distribution of profit or loss. The company sells the permit to the joined company with the price of USD 23million (JPY 2.6 billion), and a profit of USD 18.2 million (JPY 2 billion). |
AMOUNTS DUE FROM RELATED PART_2
AMOUNTS DUE FROM RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
AMOUNTS DUE FROM RELATED PARTIES | |
Schedule of amounts due from related parties | At December 31, Notes 2017 2018 Thousand USD Thousand USD Current: Trade 8180792 Canada Inc. b — 6 China New Era a 3,334 3,165 Less: allowance for doubtful debts a, 34 (1,970) (1,744) 1,364 1,427 Non-Trade China New Era a 359 342 Su Weili d 15,220 14,889 Less: allowance for doubtful debts a, 34 (230) (230) 15,349 15,001 16,713 16,428 Non-Current: Trade RisenSky Solar (defined in Note 22) and its subsidiaries 1,247 — 1,247 — Non-Trade RisenSky Solar (defined in Note 22) and its subsidiaries c 4,385 5,050 5,632 5,050 Notes: (a) Sky Solar Holdings is able to exercise significant influence over China New Era through its 49% ownership interest and participation on the board. In addition, certain key management of the Group acts as legal representatives of the solar plant entities controlled by China New Era. China New Era is therefore an associate of Sky Solar Holdings and considered as a related party of the Group. The balance is accounted for as at amortized cost. Included in the balance amount due from China New Era as of December 31, 2017 and December 31, 2018, an allowance for doubtful debt of USD 2.2 million and USD 2.0 million are provided for receivables respectively for which they have defaulted on payment obligation. The company has entered a settlement agreement with China New Era on March 19, 2019, and has received the total net USD 1.5 million on March 28, 2019, after which the balance amount due from China New Era is nil. Movements in the allowance for doubtful debts of amounts due from related parties during the periods presented are as follows: At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 2,200 2,200 Reversal of provision — (116) Exchange differences — (110) Balance at end of the year 2,200 1,974 Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. (b) 8180792 Canada Inc. is controlled by 1091187 B.C, Ltd (“1091187”), an equity investee in which the Group holds 75% equity interest. (Note 22) The balance is accounted for as at amortized cost. (c) Included in the balance was a carrying amount of USD 4.4 million and as USD 5.0 million at December 31, 2017 and 2018, respectively, which carried interest at 3.0% per annum. The balance is accounted for as FVTPL. The effect of initially applying IFRS 9 is described in Note 2.1. (d) In March 2019, Mr. Su entered a stock purchase agreement to sell all his ordinary shares of our Group in the form of ADSs to a Japan investor, and he paid back the amount due to the Group USD 14.9 million. The balance is accounted as FVTPL as at December 31, 2018. |
Schedule of movements in the allowance for doubtful debts of amounts due from related parties | At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 2,200 2,200 Reversal of provision — (116) Exchange differences — (110) Balance at end of the year 2,200 1,974 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of trade and other receivables | As at December 31, 2017 2018 Thousand USD Thousand USD Trade receivables, gross 10,206 7,939 Deposit (Note a) 7,186 1,072 Receivable due from third parties (Note b) 4,758 6,605 Allowance for expected credit losses (Note d) — (1,856) Financial assets 22,150 13,760 Value-added tax recoverable 2,044 1,053 Prepaid assets and prepayment 6,755 4,915 Receivable due from staff 78 40 Others 4,958 2,093 Allowance for expected credit losses (Note c) (1,403) (1,326) Non-financial assets 12,432 6,775 Trade and other receivables 34,582 20,535 All amounts are short-term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. Note: (a) The balance as of December 31, 2017 includes (1) USD 2.5 million deposit under the arrangement of Hudson Note, (2) USD 1.4 million for the EPC deposit in Canada and (3) USD 1.8 million for the litigation deposit in Japan and this deposit was received by January 2018. The balance as of December 31, 2018 mainly includes the EPC deposit in Canada. (b) The balance as of December 31, 2018 mainly includes debt investment to third parties. (c) The balance as of December 31, 2017 mainly includes an amount receivable due from a third party to the Group of approximately USD1.1 million (equivalent to EUR1.0 million), which was incurred in 2012, claim against two third party contractors who failed to construct a solar park for one subsidiary of the Group, who delivered solar modules and made prepayment already. A settlement agreement was made in September 2012, however the two contractors failed to repay after made the first repayment of total three installments. The Group is negotiating for another settlement agreement, and based on the recent communications among the Group and two contractors, management concluded to make full provision for doubtful receivables in the amount of USD1.1 million in 2015. (d) Refer to Note 34 for a detailed analysis of how the impairment requirements of IFRS 9 are applied. |
Schedule of movements in the allowance for doubtful debts of trade and other receivables | At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 1,329 1,403 Effect of IFRS 9 as at January 1, 2018 — 1,044 Adjustment from the adoption of IFRS 9 — 2,447 Provisions recognized on receivables — 811 Exchange difference 74 (76) Balance at end of the year 1,403 3,182 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of inventories | At December 31, 2017 2018 Thousand USD Thousand USD Solar modules(Note a) 166 626 Permits and related costs capitalized during the course of obtaining permits 141 — 307 626 Solar modules include all related materials and equipment for O&M service. |
ASSETS CLASSIFIED AS HELD FOR_2
ASSETS CLASSIFIED AS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ASSETS CLASSIFIED AS HELD FOR SALE | |
Schedule of assets classified as held for sale | At December 31, 2017 2018 Thousand Thousand Japan Chile Note(a) Note(b) IPP solar parks held for sale — 45,046 2,121 Cash and cash equivalents — — 128 Trade and other receivable — — 1,092 Other assets — — — — 45,046 3,341 Liabilities associated with assets held for sale — — 336 (a) On March 8, 2019, the company entered 12 asset purchase agreements with a third party to sell 12 IPP solar parks in Japan with a price of JPY 9.4 billion (USD 85.7 million). The company reclassifies the relative assets into held for sale. (b) On January 17, 2019, the company entered a share purchase agreement with a third party to sell a subsidiary in Chile with a price of USD 3 million. The company reclassifies the relative assets and liabilities into held for sale. |
IPP SOLAR PARKS, INVESTMENT P_2
IPP SOLAR PARKS, INVESTMENT PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
IPP solar parks | |
IPP SOLAR PARKS | |
Schedule of property, plant and equipment | Permits (including related costs capitalized in the course of obtaining permits) and solar parks Completed under development solar parks Total Thousand USD Thousand USD Thousand USD At January 1, 2016 37,359 262,668 300,027 Additions 42,895 2,575 45,470 Acquisition of subsidiaries (Note a) — 34,158 34,158 Transfer to investment property (104) — (104) Reclassified as held for sale (Note 18) — (60,667) (60,667) Disposal of subsidiaries (Note 33) — (18,407) (18,407) Disposal of solar parks — (3,671) (3,671) Transfer (42,330) 42,330 — Exchange adjustments (1,344) 2,975 1,631 At December 31, 2016 36,476 261,961 298,437 Additions 36,589 110,210 146,799 Disposal of solar parks (1,979) — (1,979) Disposal of subsidiaries (Note a) (669) (834) (1,503) Transfer (17,150) 17,150 — Exchange adjustments (636) 4,702 4,066 At December 31, 2017 52,631 393,189 445,820 Additions 41,953 770 42,723 Transfer into Investment Property — (265) (265) Reclassified as held for sale (Note 18) (9,983) (52,052) (62,035) Disposal of solar parks (Note a) (5,328) (12,533) (17,861) Disposal of subsidiaries (Note a) — (3,471) (3,471) Transfer (44,327) 44,327 — Exchange adjustments (117) 3,769 3,652 At December 31, 2018 34,829 373,734 408,563 DEPRECIATION AND IMPAIRMENT At January 1, 2016 1,976 38,628 40,604 Provided for the year — 14,208 14,208 Impairment provided for the year 2,151 — 2,151 Reclassified as held-for-sale (Note 18) — (25,983) (25,983) Disposal of subsidiaries (Note 33) — (1,560) (1,560) Disposal of solar parks — (80) (80) Exchange adjustments (217) (1,939) (2,156) At December 31, 2016 3,910 23,274 27,184 Provided for the year — 14,272 14,272 Impairment provided for the year 5,120 101 5,221 Disposal of subsidiaries (Note a) — (19) (19) Exchange adjustments 357 1,400 1,757 At December 31, 2017 9,387 39,028 48,415 Provided for the year — 19,414 19,414 Impairment provided for the year 1,785 2,756 4,541 Reclassified as held-for-sale (Note 18) (7,862) (7,006) (14,868) Disposal of subsidiaries (Note a) — (1,056) (1,056) Disposal of IPP Solar Parks (Note a) — (1,459) (1,459) Exchange adjustments — 526 526 At December 31, 2018 3,310 52,203 55,513 CARRYING VALUES At December 31, 2016 32,566 238,687 271,253 At December 31, 2017 43,244 354,161 397,405 At December 31, 2018 31,519 321,531 353,050 (a) |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Software Thousand USD COST At January 1, 2016 239 Additions 40 Disposals (32) Exchange adjustments 5 At December 31, 2016 252 Additions 42 Disposals (1) Exchange adjustments (12) At December 31, 2017 281 Additions 10 Disposals (8) Exchange adjustments 2 At December 31, 2018 285 AMORTIZATION At January 1, 2016 92 Charge for the year 71 Eliminated on disposals (31) Exchange adjustments (2) At December 31, 2016 130 Charge for the year 44 Eliminated on disposals (1) Exchange adjustments (18) At December 31, 2017 155 Charge for the year 52 Eliminated on disposals (6) Exchange adjustments (1) At December 31, 2018 200 CARRYING VALUES At December 31, 2016 122 At December 31, 2017 126 At December 31, 2018 85 |
INTERESTS IN ASSOCIATES (Tables
INTERESTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTERESTS IN ASSOCIATES | |
Schedule of reconciliation of changes in interest in associates | 2017 2018 Thousand USD Thousand USD As at January 1, 4,092 2,566 Investment in new affiliates 612 — Return of investment in associates — — Add: Share of profit of associates — 189 Less: Unrealized gain from sales to associates — — Less: Dividends received from the associates (427) (302) Less: Disposal of associates(Note d) (2,038) — Exchange difference 327 (120) As at December 31, 2,566 2,333 |
Schedule of interest in associates | Place of Proportion of nominal incorporation/ Class of value of issued capital Proportion of voting Form of principal place shares held power held Name of entity Entity of incorporation Held 2017 2018 2017 2018 Principal activities RisenSky Solar S.a.r.l. (a) Limited liability Luxemburg Ordinary 30 % 30 % 30 % 30 % Operating entity engaged in the investment, construction, financing and management of solar parks 1088526 B.C. Ltd. (b) Limited liability Canada Ordinary 75 % 75 % 50 % 50 % Operating entity engaged in the investment, construction, financing and management of solar parks 1091187 B.C. Ltd. (c) Limited liability Canada Ordinary 75 % 75 % 50 % 50 % Operating entity engaged in the investment, construction, financing and management of solar parks Notes: (a) In 2011, Sky Europe entered into an agreement with Risen Energy (Hong Kong) Co., Ltd. (“Risen HK”) (a subsidiary of a company listed on the security market in the PRC) to establish a private limited liability company, namely RisenSky Solar Energy S.a.r.l. (“RisenSky Solar”). The Group is able to exercise significant influence over RisenSky Solar through its 30% ownership interest and participation on the board. RisenSky is therefore classified as an associate of the Group. (b) In 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1088526 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee, 70% by 2018 and 95% from 2019. The Group’s residual investment in 1088526 was measured at fair value. (Note 33) (c) In January 2017, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1091187 B.C. Ltd. (“1091187”), who owns Sky Solar (Canada) FIT 2 LP in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1091187 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee, 70% by 2018 and 95% from 2019. The Group’s residual investment in 1091187 was measured at fair value. (Note 33) |
Summary of financial information in respect of the group's associates | At December 31, RisenSky 1091187 1088526 Aggregate RisenSky 1091187 1088526 Aggregate 2017 2017 2017 2017 2018 2018 2018 2018 Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Non-current assets IPP solar parks 22,592 3,305 13,157 39,054 20,428 2,876 11,367 34,671 Other non-current assets 472 1,683 11,359 13,514 439 1,302 10,996 12,737 23,064 4,988 24,516 52,568 20,867 4,178 22,363 47,408 Current assets 5,342 159 2,689 8,190 5,160 423 2,372 7,955 Current liabilities Other current liabilities 2,739 154 1,312 4,205 1,419 174 1,558 3,151 Amount due to related parties 967 — — 967 262 6 — 268 3,706 154 1,312 5,172 1,681 180 1,558 3,419 Non-current liability Borrowings 24,034 1,321 15,109 40,464 22,456 1,128 12,529 36,113 Others — 58 941 999 — 136 967 1,103 24,034 1,379 16,050 41,463 22,456 1,264 13,496 37,216 Net assets (liabilities) 666 3,614 9,843 14,123 1,890 3,157 9,681 14,728 Year ended December 31, RisenSky 1091187 1088526 Aggregate RisenSky 1091187 1088526 Aggregate 2017 2017 2017 2017 2018 2018 2018 2018 Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Revenue 3,840 709 3,268 7,817 3,978 707 3,201 7,886 Profit for the year 1,076 134 (240) 970 1,293 164 286 1,743 Group’s share of profit of associates of the year — — — — — 78 111 189 Group’s share of profit of associates of the year not recognized 323 22 (43) 302 388 — — 388 Group’s share of other comprehensive income of associates — — — — — — — — |
DEFERRED TAX ASSETS (Tables)
DEFERRED TAX ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DEFERRED TAX ASSETS | |
Schedule of principal components of the deferred income tax assets and liabilities | Fair value change of Unrealized gain on Depreciation of Tax losses financial instruments inter-group sales solar parks Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At January 1, 2017 864 917 10,456 (2,986) 9,251 Deferred tax assets 864 917 10,456 (2,656) 9,581 Deferred tax liabilities — — — 330 330 Credit (charge) to profit or loss 286 11,325 (1,843) 1,668 11,436 Exchange differences 1 41 (7) (6) 29 At December 31, 2017 1,151 12,283 8,606 (1,324) 20,716 Deferred tax assets 1,151 12,283 8,606 1,460 23,500 Deferred tax liabilities — — — 2,784 2,784 Credit (charge) to profit or loss (377) 5,226 1,772 1,393 8,014 Reclassified to held-for-sale — — — 186 186 Exchange differences 28 213 216 (150) 307 At December 31, 2018 802 17,722 10,594 105 29,223 Deferred tax assets 802 17,722 10,594 3,264 32,382 Deferred tax liabilities — — — 3,159 3,159 |
Schedule unrecognized deferred tax assets expire unutilized | 2018.12.31 In millions 2019 0.31 2020 0.08 2021 0.22 2022 2.97 2023 2.42 Thereafter 11.70 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other current assets | At December 31, 2017 2018 Thousand USD Thousand USD Long-term loan to a third party (b) 7,974 7,525 Long term deposits relate to IPP solar parks (a) 1,660 1,089 Financial Instruments(c) — 5,636 Allowance for expected credit losses(d) — (398) Financial assets 7,974 13,852 Long-term Prepayments 1,411 1,246 Non-financial assets 1,411 1,246 11,045 15,098 (a) The balance of long term deposits for land rental related to the IPP solar parks in Japan were USD1.7 million and USD 1.1 million as at December 31, 2017 and 2018, respectively. (b) The loan to a third party represents the USD 8.0 million and USD 7.1 million long-term note receivable as at December 31, 2017 and 2018, respectively, which was obtained in connection with the acquisition of a subsidiary in the USA in 2016 which holds 23MW of solar parks. The note receivable bears annual interest of 1% and is with principle payment schedule from 2018 to 2041. (c) During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swaps, which amounted to USD 224 thousand gain was recognized in the other losses for the year ended December 31, 2018. Notional amount Maturity Swaps USD 20,200,000 (Note 30(c)) December 8, 2027 From 3-month-USD Prime H.15 to 5% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value assets USA 2018/12/31 2018/12/31 2018/12/31 % Thousand Thousand From 2014 to 2019 5.00 20,200 224 The interest rate swaps settle on a quarter basis. The floating and fixed rate on the interest rate swaps is the local interbank rate of Japan and USA. The Group will settle the difference between the fixed and floating rate on a net basis. On March 30, 2018, the company cooperated with Renova, a listing company in Japan, and NEC Capital, and invested to a 40.8 MW project in Japan, And the company invested JPY 529 million (USD 4.8 million) for 45% distribution of profit or loss. The carrying amount as at December 31, 2018 was USD 5.4 million, with gain of fair value movement USD 579 thousand during the year of 2018. (d) Movements in the allowance for doubtful debts of trade and other receivables during the periods presented are as follows: At December 31, 2018 Thousand USD Balance at beginning of year — Effect of IFRS9 as at January 1, 2018 467 Adjusted balance at 1 January 2018 467 Provisions recognized on receivables (69) Exchange difference — Balance at end of the year 398 |
Schedule of other non-current assets | Notional amount Maturity Swaps USD 20,200,000 (Note 30(c)) December 8, 2027 From 3-month-USD Prime H.15 to 5% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value assets USA 2018/12/31 2018/12/31 2018/12/31 % Thousand Thousand From 2014 to 2019 5.00 20,200 224 (c) During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. |
Schedule of allowance for doubtful debts of trade and other receivables | (a) At December 31, 2018 Thousand USD Balance at beginning of year — Effect of IFRS9 as at January 1, 2018 467 Adjusted balance at 1 January 2018 467 Provisions recognized on receivables (69) Exchange difference — Balance at end of the year 398 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
Schedule of activity in warranty provisions modules | At December 31, 2017 2018 Thousand USD Thousand USD Balance at beginning of year 332 24 Provided for the year — — Reversal for the year (308) (24) Balance at end of the year 24 — |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
AMOUNTS DUE TO RELATED PARTIES | |
Schedule of amounts due to related parties | At December 31, Notes 2017 2018 Thousand USD Thousand USD Current Non-Trade Sky Solar New Energy Investment Ltd. a — 150 Beijing Sky Solar Investment Management Co., Ltd. b 28 61 28 211 28 211 Notes: (a) On May 24, 2018, the company entered a lawsuit for the deposit of CNY 1 million for a project investment in China paid by Sky Solar New Energy Investment Ltd on behalf of the company. The balance was settled with Sky Solar New Energy Investment Ltd on April 3, 2019, and the lawsuit has been withdrawn as at the date of this report. (b) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. The amount is a result of the licensed trademark used. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BORROWINGS | |
Schedule of borrowings | At December 31, 2017 2018 Thousand USD Thousand USD Bank borrowings (a) 151,648 145,779 Other borrowings (b) 98,081 110,978 249,729 256,757 Secured (d) 244,030 252,896 Unsecured (d) 5,699 3,861 249,729 256,757 Variable-rate borrowings (c) 95,216 116,792 Fixed-rate borrowings (c) 154,513 139,965 249,729 256,757 Carrying amount repayable: Within one year 19,702 49,700 More than one year but not exceeding two years 17,593 14,821 More than two years but not exceeding five years 46,881 44,366 More than five years 165,553 147,870 249,729 256,757 Less: amounts repayable within one year shown under current liabilities 19,702 49,700 Amounts shown under non-current liabilities 230,027 207,057 (a) The balance of the bank borrowings as of December 31, 2017 and 2018 mainly include the bank borrowings in Japan, the United States and Uruguay. (b) The balance of the other borrowings as of December 31, 2017 and 2018 mainly include the borrowings in Japan. (c) The Group has variable-rate bank borrowings which carried interest at one-month bank interest rate in Czech and Uruguay plus margin as at December 31, 2017 and 2018. The effective interest rates on the Group’s borrowings as at December 31, 2017 and 2018 are as follows: At December 31, 2017 2018 Effective interest rate: Fixed-rate borrowings 3.52 % 3.18 % Variable-rate borrowings 4.82 % 5.02 % (d) Details of this pledge are set out in note 20(1). |
Schedule of effective interest rates | At December 31, 2017 2018 Effective interest rate: Fixed-rate borrowings 3.52 % 3.18 % Variable-rate borrowings 4.82 % 5.02 % |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT LIABILITIES | |
Schedule of other current liabilities | At December 31, 2017 2018 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) 120,820 121,940 Transaction (Note 30(b)) — 8,383 As at December 31 120,820 130,323 (a) |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of components of other non-current liabilities | December 31, 2017 2018 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) 1,253 1,378 Transaction (b) 55,426 57,487 Held for trading derivatives not designated in hedge accounting relationships (c) 1,128 1,127 Asset retirement obligation (d) 12,251 12,454 Others 78 — 70,136 72,446 (a) During the year ended December 31, 2015, three subsidiaries of SSJ, which holds four IPP solar parks, entered into silent partnership agreements with JA Mitsui Lease (the “JAML”). JAML provided approximately JPY63 million (USD519 thousand) in cash at the inception of the agreements, which amounted to 10% portion of total contributions in each subsidiaries, and in return are entitled to receive return in the next 15 years from the date of agreements based on an amount specified in accordance with formulas in the agreements. The fair value of this instrument is estimated based on the anticipated operating results and cash flows generated by the related solar parks for the contractual period of 15 years. The carrying amount of financial liabilities are USD1,253 thousand and USD1,378 thousand as at December 31, 2017 and 2018 with a loss associated with a change in fair value to the other loss of USD 396 thousand in 2017 and other loss of USD 88 thousand in 2018. The amount is designated as financial liabilities at FVTPL on initial recognition on the consolidated statement of financial position since the amount and timing of return is variable. The movement of the balance is as follows: 2017 2018 Thousand USD Thousand USD As at January 1, 829 1,253 Repayment — (2) Fair value effect during the year 396 88 Exchange difference 28 39 As at December 31, 1,253 1,378 (b) On September 18, 2015, the Group’s wholly-owned subsidiary Energy Capital Investment S.a.r.l (“ECI”), and a third party Hudson Solar Cayman, LP (“Hudson”), a private equity and infrastructure firm entered into strategic partnership agreements to fund solar projects in Latin America. As part of this partnership, Hudson will invest USD50 million by way of the convertible notes issued by ECI for the constructions of solar projects in Chile and Uruguay, and then they will receive a 49 percent non-controlling equity in these projects upon their completion if it elects to convert the outstanding principal and interest on the notes into such equity interest. On July 15, 2016, the agreement was amended to change the underlying projects from those in Chile to US. As of December 31, 2018, USD48.2 million has been funded under this arrangement. |
JPY 2,300 million and 1,570 million loan agreements | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2017 2018 Thousand USD Thousand USD As at January 1, 1,255 1,064 Fair value effect during the year (204) 30 Exchange difference 13 23 As at December 31, 1,064 1,117 |
Schedule of major terms of interest rate swap contracts | Notional amount Maturity Swaps JPY 547,200,000 May 23, 2031 From 6-months JPY TIBOR+2.2% to 3.16% JPY 1,752,800,000 May 31, 2032 From 6-months JPY TIBOR+ 2.2% to 3.08% JPY 1,570,000,000 November 30, 2032 From 6-months JPY TIBOR+ 2% to 2.68% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value liabilities Japan 2018/12/31 2017/12/31 2018/12/31 2017/12/31 2018/12/31 2017/12/31 % % Thousand Thousand Thousand Thousand From 2015 to 2032 2.93 2.93 35,217 34,443 1,117 1,064 |
USD 5.65 million and 20.2 million loan agreements | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2017 2018 Thousand USD Thousand USD As at January 1, 139 64 Repayment (78) — Fair value effect during the year 3 (54) As at December 31, 64 10 |
Schedule of major terms of interest rate swap contracts | Notional amount Maturity Swaps USD 2,000,000 June 30, 2026 From 3-month-USD Prime H.15 to 6% USD 20,200,000 (Note 25) December 8, 2027 From 3-month-USD Prime H.15 to 5% Not designated for hedging Outstanding receive floating pay Average contracted fixed fixed contracts interest rate Notional principal value Fair value liabilities USA 2018/12/31 2017/12/31 2018/12/31 2017/12/31 2018/12/31 2017/12/31 % % Thousand Thousand Thousand Thousand From 2014 to 2019 5.09 5.09 2,000 19,764 10 64 |
JAML silent partnership agreement | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2017 2018 Thousand USD Thousand USD As at January 1, 829 1,253 Repayment — (2) Fair value effect during the year 396 88 Exchange difference 28 39 As at December 31, 1,253 1,378 |
Hudson agreement | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2017 2018 Thousand USD Thousand USD As at January 1, 51,143 55,426 Interest addition during the year 5,756 6,510 Fair value effect during the year 791 8,914 Less: repayment during the year (2,264) (4,980) As at December 31, 55,426 65,870 Less: amounts repayable within one year shown under current liabilities(Note 29) — 8,383 Amounts shown under non-current liabilities 55,426 57,487 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL | |
Schedule of common share transactions | Number Share of shares capital Thousand USD The Company Ordinary shares of USD0.0001 each Authorized: On August 19, 2013 and December 31, 2013 500,000,000 — Issued: On August 19, 2013 and December 31, 2013 339,196,670 — Issued at IPO 50,830,000 5 On December 31, 2014 and 2015 390,026,670 5 Issued: On July 15, 2016 29,519,844 3 On December 31, 2016, 2017 and 2018 419,546,514 8 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |
Schedule of fair values recognized in relation to the restricted shares | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Cost of sales — — — Administrative expenses 997 (223) — 997 (223) — |
DISPOSAL OF SUBSIDIARIES (Table
DISPOSAL OF SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GRANSOLAR CUBIERTAS 3, S.L.U ("GSC3") and GRANSOLAR CUBIERTA 7, S.L.U ("GSC7") | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets 111 Cash and cash equivalents 64 Trade and other receivables 48 Deferred tax assets — Non-current Assets 2,418 IPP solar parks 2,415 Intangible assets 3 Current Liabilities (127) Trade and other payables (103) Tax payable (14) Borrowings (10) Non-current Liabilities (177) Deferred tax liabilities (177) Net assets disposed of 2,225 |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received 911 Cash receivable 64 Net assets disposed of (2,225) Exchange difference (38) Loss on disposal of a subsidiary (1,288) |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Cash and cash equivalent balances disposed of 64 Cash received as consideration — Net cash outflow arising on disposal 64 |
Solar Tech K.K. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets 924 Cash and cash equivalents 628 Trade and other receivables 213 Deferred tax assets 83 Non-current Assets 4,578 IPP solar parks 3,758 Long term deposit and others 820 Current Liabilities (696) Trade and other payables (689) Tax payable (7) Non-current Liabilities (6,484) Borrowings (6,484) Net liabilities disposed of (1,678) |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received 8 Net liabilities disposed of 1,678 Gain on disposal of a subsidiary 1,686 |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Cash and cash equivalent balances disposed of 628 Cash received as consideration 8 Net cash outflow arising on disposal 620 |
1088526 B.C. Ltd. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets 3,882 Cash and cash equivalents 3,260 Trade and other receivables 397 Other current asset 225 Non-current Assets 13,089 IPP solar parks 13,089 Current Liabilities (1,036) Trade and other payables (134) Borrowing (902) Non-current Liabilities (16,957) Long-term borrowing (15,539) Swap liability (1,418) Net liabilities disposed of (1,022) |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: 7,998 Net liabilities disposed of 1,022 Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary (1,126) Re-evaluate fair value of residual investment 2,188 Gain on disposal of a subsidiary 10,082 |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Consideration received in cash and cash equivalent 7,998 Less: Cash and cash equivalent balances disposed of (3,260) Net cash inflow arising on disposal 4,738 |
1091187 B.C. Ltd. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets 295 Cash and cash equivalents 284 Trade and other receivables 11 Non-current Assets 3,294 IPP solar parks 3,253 Other Non-current Assets 41 Current Liabilities (143) Trade and other payables (62) Borrowing (81) Non-current Liabilities (1,319) Long-term borrowing (1,319) Net Assets disposed of 2,127 |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: 2,979 Net assets disposed of (2,127) Re-evaluate fair value of residual investment 612 Gain on disposal of a subsidiary 1,464 |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Consideration received in cash and cash equivalent 2,979 Less: Cash and cash equivalent balances disposed of (284) Net cash inflow arising on disposal 2,695 |
Companies based in Cypriot | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets 10,590 Cash and cash equivalents 3,633 Trade and other receivables 6,957 Non-current Assets 32,827 IPP solar parks 31,431 Other Non-current Assets 1,396 Current Liabilities (1,918) Trade and other payables (1,918) Net Assets disposed of 41,499 |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: 41,915 Net assets disposed of (41,499) Gain/(Loss) on disposal of a subsidiary 416 |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Consideration received in cash and cash equivalent 41,915 Less: Cash and cash equivalent balances disposed of (3,633) Net cash inflow arising on disposal 38,282 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of nature and extent of risks arising from financial instruments | |
Schedule of categories of financial instruments | Year ended December 31, 2017 2018 Thousand USD Thousand USD Financial assets: Assets at amortized cost: Other non-current assets (Note 25) 9,634 8,216 Amounts due from related parties (Note 15) 22,345 1,539 Contract Assets — 731 Trade and other receivables (Note 16) 22,150 13,760 Restricted cash 40,716 44,182 Cash and cash equivalents 46,084 43,831 Assets at FVTPL: Amounts due from related parties (Note 15) — 19,939 Other non-current assets (Note 25) — 5,636 Total financial assets 140,929 137,834 Financial liabilities Liabilities at amortized cost: Trade and other payables 26,644 22,255 Amounts due to related parties — 211 Borrowings 249,729 256,757 Total liabilities at amortized cost 276,373 279,223 Liabilities at FVTPL: Other Current liabilities 120,820 130,323 Other non-current liabilities 57,885 59,992 Total liabilities at FVTPL 178,705 190,315 |
Schedule of remaining contractual maturity for nonderivative financial liabilities | Weighted Total Total average undiscounted carrying interest rate <1 year 1 - 2 years 2 - 3 years >3 years cash flows amount Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At December 31, 2017 Trade and other payables N/A 26,644 — — — 26,644 26,644 Amounts due to related parties N/A 28 — — — 28 28 Borrowings— variable rate 4.82 % 4,854 8,173 8,164 118,998 140,189 95,216 Borrowings— fixed rate 3.52 % 14,848 17,527 15,611 146,977 194,963 154,513 46,374 25,700 23,775 265,975 361,824 276,401 At December 31, 2018 Trade and other payables N/A 22,255 — — — 22,255 22,255 Amounts due to related parties N/A 211 — — — 211 211 Borrowings— variable rate 5.02 % 6,794 11,742 11,742 133,006 163,284 116,792 Borrowings— fixed rate 3.18 % 42,906 9,935 9,935 109,386 172,162 139,965 72,166 21,677 21,677 242,392 357,912 279,223 |
Schedule of remaining contractual maturity for derivative financial liabilities | Weighted average Total Total effective undiscounted carrying interest rate <1 year 1 - 2 years 2 - 3 years >3 years cash flows amount Thousand Thousand Thousand Thousand Thousand USD Thousand USD USD USD USD USD At December 31, 2017 Other Current liabilities 15 % 120,820 — — — 120,820 120,820 Other non-current liabilities 10.99 % 5,310 8,420 8,440 132,234 154,404 57,885 126,130 8,420 8,440 132,234 275,224 178,705 At December 31, 2018 Other Current liabilities 15 % 130,323 — — — 130,323 130,323 Other non-current liabilities 11.88 % 1,332 8,497 8,477 124,113 142,419 59,992 131,655 8,497 8,477 124,113 272,742 190,315 |
Schedule of fair value measurements of financial assets | Financial assets Fair value Fair Valuation technique(s) Significant 1) Amounts due from related parties- non-current Amounts due from related parties – non-current—USD5,050 thousand as of December 31, 2018.(Note a) Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 3% per annum. (Note b) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries 2) Amounts due from related parties-current Amounts due from related parties - current—USD14,889 thousand as of December 31, 2018.(Note a) Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 3) Other non-current assets Other non-current assets—USD5,412 thousand as of December 31, 2018. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 17.52% per annum. (Note c) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries |
Schedule of fair value measurements of financial liabilities | Financial liabilities Fair value Fair Valuation technique(s) Significant 1) Other Current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 29) Other non-current liabilities—USD120,820 thousand as of December 31, 2017 and Other current liabilities—USD121,940 thousand as of December 31, 2018, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% and 6% per annum for year 2017 and 2018, respectively. Estimated net change in electricity income and direct costs was taken into account based on management’s experience and knowledge of market conditions of the specific industries. 2) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD1,253 thousand and USD1,378 thousand as of December 31, 2017 and December 31, 2018, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% per annum. (Note 1) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries. 3) Other current and non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) The total number of the balance was USD55,426 thousand and USD65,870 thousand as of December 31, 2017 and December 31, 2018. Other current liabilities shows as USD 8,383 thousand and Other non-current liabilities was 57,487 thousand as of December 31, 2018. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 10.8% and 12% for year 2017 and 2018 respectively. (Note 2) 4) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities— USD1,064 thousand and USD1,117 thousand as at December 31, 2017 and December 31, 2018. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 5) Interest rate swaps not designated in hedge accounting relationships (Note 25, 30) Other non-current liabilities—USD64 thousand and USD10 thousand as at December 31, 2017 and December 31, 2018. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A Note: (1) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD32 thousand and USD31 thousand as at December 31, 2017 and December 31, 2018, respectively. A 5% increase in estimated net change in electricity income and direct cost would increase the carrying amount of the non-current liabilities by USD63 thousand and USD63 thousand as at December 31, 2017 and December 31, 2018, respectively. (2) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD510 thousand and USD1,973 thousand as at December 31, 2017 and December 31, 2018, respectively. |
Trade receivables and contract assets | |
Disclosure of nature and extent of risks arising from financial instruments | |
Summary of expected credit loss | Expected credit losses for trade receivables and contract assets as at December 31, 2018 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 25 41 132 4 20 — 223 Expected credit losses for trade receivables and contract assets as at December 31, 2017 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 45 — — 136 1 — 183 |
Short-term deposits and debt investments | |
Disclosure of nature and extent of risks arising from financial instruments | |
Summary of expected credit loss | Expected credit losses for short-term deposits and debt investments as at December 31, 2018 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 16 63 6 6 292 23 1,227 1,633 Expected credit losses for short-term deposits and debt investments as at December 31, 2017 <90 days 90-180 days 181-360 days 1 - 2 years 2 - 3 years >3 years individually Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 41 — 310 502 8 — — 861 |
Long-term deposits and debt investments | |
Disclosure of nature and extent of risks arising from financial instruments | |
Summary of expected credit loss | Expected credit losses for long-term deposits and debt investments as at December 31, 2018 <180 days 181-360 days 1 - 2 years 2 - 3 years 3-4years 4-5years Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD — 1 — 4 5 388 398 Expected credit losses for long-term deposits and debt investments as at December 31, 2017 <180 days 181-360 days 1 - 2 years 2 - 3 years 3-4years 4-5years Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD 1 1 4 5 7 449 467 |
Currency risk | |
Disclosure of nature and extent of risks arising from financial instruments | |
Schedule of currency risk | Year ended December 31, 2017 2017 2017 2018 2018 2018 Thousand Thousand Thousand Thousand Thousand Thousand USD USD USD USD USD USD Denominated Denominated Denominated Denominated Denominated Denominated in Euro in JPY in CAD in Euro in JPY in CAD Cash and cash equivalents 7,717 21,673 824 5,862 26,672 571 Restricted cash 952 26,537 470 937 30,606 431 Trade and other receivables and contract assets (a) 8,428 7,025 292 3,787 4,605 1,037 Amount due from related parties 9,695 — — 1,533 — 6 Other non-current assets — — — — 6,821 — Total financial assets 26,792 55,235 1,586 12,119 68,704 2,045 Trade and other payables 5,129 10,076 362 3,457 14,533 444 Borrowings 17,152 118,233 — 14,667 131,036 — Amounts due to related parties — — — — — — Other financial liabilities — 123,136 — — 124,435 — Total financial liabilities 22,281 251,445 362 18,124 270,004 444 (a) Trade and other receivables include only trade receivables, other receivables and deposits. Due to the influence of updated IFRS 9, the balance of trade and other receivables and contract assets as December 31, 2018 has been declining sharply comparing to that as December 31, 2017. |
Schedule of sensitivity to currency risk | Year ended December 31, 2017 2018 Thousand USD Thousand USD EURO 523 (306) CAD 142 81 JPY (22,760) (10,245) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OPERATING LEASES | |
Schedule of minimum lease payments paid under operating leases | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Minimum lease payments paid under operating leases 4,040 4,283 2,957 |
Schedule of future minimum lease payments under non-cancellable operating leases | At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Within one year 4,468 4,420 3,240 In the second to fifth years inclusive 15,154 15,266 12,044 Over five years 79,172 44,594 32,495 98,794 64,280 47,779 |
Schedule of non-cancellable operating lease receivables | At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Within one year 196 195 224 In the second to fifth years inclusive 782 780 896 Over five years 2,585 3,338 2,518 3,563 4,313 3,638 |
CAPITAL COMMITMENT (Tables)
CAPITAL COMMITMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CAPITAL COMMITMENT | |
Schedule of capital commitments | At December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements 90,430 34,279 30,872 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | |
Schedule of sales to related parties | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD 1088526 B.C.Ltd and its subsidiaries — — 7 RisenSky Solar and its subsidiaries 254 277 278 1091187 B.C.Ltd and its subsidiaries — — 30 Oky Solar Holdings and its subsidiaries 525 — — Sky Global Solar S.A. 9 9 9 788 286 324 |
Schedule of remuneration of directors and other members of key management | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Short-term benefits 1,630 2,049 2,411 Retirement benefit scheme contributions 99 149 142 Share-based payment expense 646 112 — 2,375 2,310 2,553 |
Schedule of interest charged by the related parties | Year ended December 31, 2016 2017 2018 Thousand USD Thousand USD Thousand USD Sky Solar (Hong Kong) International Co., Ltd. 292 — — 292 — — |
CORPORATION INFORMATION AND B_2
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Details) | Aug. 19, 2013 |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | |
Share swap ratio | 1 |
APPLICATION OF NEW AND AMENDM_3
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS - IFRS 9 Financial Instruments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | $ 140,929 |
Adjustment upon adoption of IFRS 9 | (1,944) |
Opening balance after adoption of IFRS 9 | 138,985 |
Remeasurement | (1,944) |
Retained earnings effect | (1,944) |
Increase (decrease) in financial liabilities on basis of measurement category, initial application of IFRS 9 | 0 |
Increase (decrease) in financial liabilities arising from change in measurement attribute, initial application of IFRS 9 | 0 |
Cash and cash equivalents | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 46,084 |
Opening balance after adoption of IFRS 9 | 46,084 |
Restricted cash | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 40,716 |
Opening balance after adoption of IFRS 9 | 40,716 |
Trade and other receivables | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 22,150 |
Adjustment upon adoption of IFRS 9 | (1,044) |
Opening balance after adoption of IFRS 9 | 21,106 |
Remeasurement | (1,044) |
Retained earnings effect | (1,044) |
Other non-current assets | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 9,634 |
Adjustment upon adoption of IFRS 9 | (467) |
Opening balance after adoption of IFRS 9 | 9,167 |
Remeasurement | (467) |
Retained earnings effect | (467) |
Amount due from related parties | Loans and receivables | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Opening balance after adoption of IFRS 9 | 2,740 |
Reclassification | (19,605) |
Amount due from related parties | FVTPL | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Adjustment upon adoption of IFRS 9 | (433) |
Opening balance after adoption of IFRS 9 | 19,172 |
Reclassification | 19,605 |
Remeasurement | (433) |
Retained earnings effect | (433) |
Amount due from related parties | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 22,345 |
Amount due from related parties | CNE | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 1,493 |
Opening balance after adoption of IFRS 9 | 1,493 |
Amount due from related parties | Mr. Su Weili | FVTPL | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Opening balance after adoption of IFRS 9 | 15,220 |
Amount due from related parties | Mr. Su Weili | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | 15,220 |
Amount due from related parties | RisenSky Solar | FVTPL | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Adjustment upon adoption of IFRS 9 | (433) |
Opening balance after adoption of IFRS 9 | 5,199 |
Remeasurement | (433) |
Amount due from related parties | RisenSky Solar | Amortised cost | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
Closing balance as per IAS 39 | $ 5,632 |
APPLICATION OF NEW AND AMENDM_4
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS - IFRS 15 Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | ||
Contract assets | $ 731 | |
Trade and other receivables | $ 20,535 | $ 34,582 |
Trade and other receivables and contract assets | 34,582 | |
Impact of adopting IFRS 15 | ||
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | ||
Contract assets | 819 | |
Trade and other receivables | (819) | |
After application of IFRS 15 | ||
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | ||
Contract assets | 819 | |
Trade and other receivables | 33,763 | |
Trade and other receivables and contract assets | $ 34,582 |
APPLICATION OF NEW AND AMENDM_5
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS - IFRS 16 Leases (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Assets And Liabilities At Date Of Initial Application Of IFRS 16 [Line Items] | ||||
Minimum lease payments payable under non-cancellable operating lease | $ 47,779 | $ 64,280 | $ 98,794 | |
Application of IFRS 16 | ||||
Disclosure Of Assets And Liabilities At Date Of Initial Application Of IFRS 16 [Line Items] | ||||
Right-of-use assets | $ 35,600 | |||
Lease liabilities | $ 35,600 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold improvement | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 20 years |
Motor vehicles | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
Furniture and fixtures | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Leasing (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Leasing | |||
Minimum lease payments receivable | $ 3,638 | $ 4,313 | $ 3,563 |
IPP solar parks | |||
Leasing | |||
Minimum lease payments receivable | $ 0 |
KEY SOURCES OF ESTIMATES AND _2
KEY SOURCES OF ESTIMATES AND JUDGEMENTS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017director | Dec. 31, 2018USD ($)director | Dec. 31, 2017USD ($) | Dec. 31, 2016director | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | ||||
Trade and other receivables | $ 20,535 | $ 34,582 | ||
Balance due from related parties | 21,478 | 22,345 | ||
Other non-current assets | 15,098 | 11,045 | ||
Impairment | ||||
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | ||||
Trade and other receivables | (3,182) | (1,403) | ||
Balance due from related parties | (1,974) | (2,200) | ||
Other non-current assets | 398 | 0 | ||
1088526 B.C. Ltd. | ||||
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | ||||
Other non-current assets | $ 10,996 | $ 11,359 | ||
Proportion of equity interest held | 75.00% | 75.00% | ||
Number of directors who can be appointed in associate by contractual right | director | 2 | 2 | ||
Total number of directors in the associate | director | 4 | 4 | ||
1091187 B.C. Ltd. | ||||
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | ||||
Other non-current assets | $ 1,302 | $ 1,683 | ||
Proportion of equity interest held | 75.00% | 75.00% | ||
Number of directors who can be appointed in associate by contractual right | director | 2 | 2 | ||
Total number of directors in the associate | director | 4 | 4 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
Related parties | $ 324 | $ 286 | $ 788 |
Non-related parties | 64,345 | 56,447 | 65,137 |
Total revenue | 64,669 | 56,733 | 65,925 |
IPP Sale of Electricity | |||
Revenue | |||
Non-related parties | 61,438 | 53,614 | 53,658 |
EPC Services | |||
Revenue | |||
Non-related parties | 198 | 285 | 9,186 |
Sales of permits | |||
Revenue | |||
Related parties | 525 | ||
Construction services | |||
Revenue | |||
Non-related parties | 198 | 285 | 4,954 |
BT | |||
Revenue | |||
Non-related parties | 4,232 | ||
Other sales | |||
Revenue | |||
Related parties | 324 | 286 | 263 |
Non-related parties | 2,709 | 2,548 | 2,293 |
Trading Solar Modules | |||
Revenue | |||
Non-related parties | 1 | 3 | |
O&M services (including consulting and others) | |||
Revenue | |||
Related parties | 324 | 286 | 263 |
Non-related parties | $ 2,708 | $ 2,548 | $ 2,290 |
REVENUE - Contract balances (De
REVENUE - Contract balances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue | ||
Contract assets | $ 731 | |
Contract liabilities | $ 731 | |
After application of IFRS 15 | ||
Revenue | ||
Contract assets | $ 819 | |
Contract liabilities | 819 | |
Trade and other receivables | After application of IFRS 15 | ||
Revenue | ||
Receivables | $ 819 |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographical (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Geographical information based on revenue and non-current assets | |||
Number of operating segments | segment | 1 | ||
Revenue | $ 64,669 | $ 56,733 | $ 65,925 |
Non-current assets | 356,880 | 413,574 | |
Bulgaria | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 912 | 966 | 871 |
Non-current assets | 79 | 92 | |
Canada | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 361 | 382 | 8,724 |
Non-current assets | 1,707 | 1,956 | |
Chile | |||
Geographical information based on revenue and non-current assets | |||
Non-current assets | 5,545 | 3,164 | |
Czech | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 4,103 | 3,548 | 3,197 |
Non-current assets | 13,791 | 15,127 | |
Germany | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 27 | ||
Greece | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 1,613 | 1,650 | 8,748 |
Non-current assets | 94 | 109 | |
Japan | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 41,140 | 37,887 | 37,757 |
Non-current assets | 180,794 | 234,398 | |
PRC | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 29 | ||
Non-current assets | 1,134 | 268 | |
Spain | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 329 | 421 | 379 |
Non-current assets | 545 | 6,446 | |
USA | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 4,914 | 6,681 | 3,797 |
Non-current assets | 42,563 | 45,137 | |
Uruguay | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 11,268 | 5,198 | $ 2,425 |
Non-current assets | $ 110,628 | $ 106,877 |
SEGMENT INFORMATION - Revenue d
SEGMENT INFORMATION - Revenue disaggregation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEGMENT INFORMATION | |||
Revenue | $ 64,669 | $ 56,733 | $ 65,925 |
Bulgaria | |||
SEGMENT INFORMATION | |||
Revenue | 912 | 966 | 871 |
Canada | |||
SEGMENT INFORMATION | |||
Revenue | 361 | 382 | 8,724 |
Czech | |||
SEGMENT INFORMATION | |||
Revenue | 4,103 | 3,548 | 3,197 |
Greece | |||
SEGMENT INFORMATION | |||
Revenue | 1,613 | 1,650 | 8,748 |
Japan | |||
SEGMENT INFORMATION | |||
Revenue | 41,140 | 37,887 | 37,757 |
PRC | |||
SEGMENT INFORMATION | |||
Revenue | 29 | ||
Spain | |||
SEGMENT INFORMATION | |||
Revenue | 329 | 421 | 379 |
USA | |||
SEGMENT INFORMATION | |||
Revenue | 4,914 | 6,681 | 3,797 |
Uruguay | |||
SEGMENT INFORMATION | |||
Revenue | 11,268 | 5,198 | $ 2,425 |
EPC services solar energy system sales | |||
SEGMENT INFORMATION | |||
Revenue | 198 | 285 | |
EPC services solar energy system sales | Canada | |||
SEGMENT INFORMATION | |||
Revenue | 177 | 256 | |
EPC services solar energy system sales | USA | |||
SEGMENT INFORMATION | |||
Revenue | 21 | 29 | |
Sales of solar modules | |||
SEGMENT INFORMATION | |||
Revenue | 1 | ||
Sales of solar modules | Canada | |||
SEGMENT INFORMATION | |||
Revenue | 1 | ||
Electricity sales income | |||
SEGMENT INFORMATION | |||
Revenue | 61,438 | 53,615 | |
Electricity sales income | Canada | |||
SEGMENT INFORMATION | |||
Revenue | 143 | 126 | |
Electricity sales income | Czech | |||
SEGMENT INFORMATION | |||
Revenue | 4,103 | 3,548 | |
Electricity sales income | Greece | |||
SEGMENT INFORMATION | |||
Revenue | 146 | ||
Electricity sales income | Japan | |||
SEGMENT INFORMATION | |||
Revenue | 40,925 | 37,671 | |
Electricity sales income | PRC | |||
SEGMENT INFORMATION | |||
Revenue | 29 | ||
Electricity sales income | Spain | |||
SEGMENT INFORMATION | |||
Revenue | 329 | 421 | |
Electricity sales income | USA | |||
SEGMENT INFORMATION | |||
Revenue | 4,822 | 6,647 | |
Electricity sales income | Uruguay | |||
SEGMENT INFORMATION | |||
Revenue | 11,087 | 5,056 | |
O&M services | |||
SEGMENT INFORMATION | |||
Revenue | 3,032 | 2,833 | |
O&M services | Bulgaria | |||
SEGMENT INFORMATION | |||
Revenue | 912 | 966 | |
O&M services | Canada | |||
SEGMENT INFORMATION | |||
Revenue | 40 | ||
O&M services | Greece | |||
SEGMENT INFORMATION | |||
Revenue | 1,613 | 1,504 | |
O&M services | Japan | |||
SEGMENT INFORMATION | |||
Revenue | 215 | 216 | |
O&M services | USA | |||
SEGMENT INFORMATION | |||
Revenue | 71 | 5 | |
O&M services | Uruguay | |||
SEGMENT INFORMATION | |||
Revenue | $ 181 | $ 142 |
SEGMENT INFORMATION - Major cus
SEGMENT INFORMATION - Major customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Information about major customers | |||
Revenue | $ 64,669 | $ 56,733 | $ 65,925 |
Customer A | |||
Information about major customers | |||
Revenue | 14,079 | 13,056 | 10,504 |
Customer B | |||
Information about major customers | |||
Revenue | 11,774 | 11,684 | 10,861 |
Customer C | |||
Information about major customers | |||
Revenue | 10,996 | $ 9,912 | 8,164 |
Customer D | |||
Information about major customers | |||
Revenue | $ 10,269 | $ 7,103 |
INVESTMENT INCOME (Details)
INVESTMENT INCOME (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
INVESTMENT INCOME | |||||
Interest income | $ 93 | $ 186 | $ 83 | ||
Interest income from amounts due from related parties | 298 | 259 | 242 | ||
Share of profit of associates(Note b) | 189 | 173 | |||
Disposal of associates(Note a) | 7,446 | ||||
Total | 580 | $ 7,891 | $ 498 | ||
Associates | |||||
INVESTMENT INCOME | |||||
Share of profit of associates(Note b) | 189 | ||||
1088526 B.C. Ltd. | |||||
INVESTMENT INCOME | |||||
Share of profit of associates(Note b) | $ 111 | ||||
Proportion of share profit held in associate | 30.00% | ||||
Proportion of voting power held | 50.00% | 50.00% | |||
1091187 B.C. Ltd. | |||||
INVESTMENT INCOME | |||||
Share of profit of associates(Note b) | $ 78 | ||||
Proportion of voting power held | 50.00% | 50.00% | |||
Sky Solar Japan KK (SSJ) | Orix Holdings | |||||
INVESTMENT INCOME | |||||
Disposal of associates(Note a) | ¥ 837 | $ 7,400 | |||
Consideration received for sale of share interest in OKY Solar 1 K.K and OKY Solar Omut K.K | ¥ 1,068 | $ 9,180 |
OTHER LOSSES (Details)
OTHER LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER LOSSES | |||
Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) | $ (25,607) | $ (39,105) | $ (2,957) |
Change of financial assets with fair value through profit and loss | 814 | ||
Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as at FVTPL (Note 25, Note 30) | 248 | 201 | (641) |
Transaction cost related to FVTPL liabilities (Note a) | (4,041) | ||
Net foreign exchange (losses) gains | 397 | 1,814 | 1,145 |
Others, net | 1,751 | (2,896) | 1,523 |
Total | $ (22,397) | $ (39,986) | $ (4,971) |
FINANCE COSTS (Details)
FINANCE COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCE COSTS | |||
Interest on bank borrowings | $ (6,006) | $ (3,865) | $ (2,611) |
Interest on other borrowings | (11,324) | (8,335) | (3,757) |
Total | $ (17,330) | $ (12,200) | $ (6,368) |
STAFF COSTS, ADMINISTRATIVE E_3
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Amortization of intangible assets | $ 52 | $ 44 | $ 71 |
Auditor's remuneration | 1,088 | 1,050 | 1,200 |
Retirement benefits scheme contributions | 1,303 | 627 | 816 |
Share-based compensation | (223) | 997 | |
Total staff costs | 9,821 | 8,916 | 10,552 |
Directors | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Salaries and other benefits | 1,194 | 887 | 392 |
Retirement benefits scheme contributions | 42 | 36 | 27 |
Share-based compensation | (43) | 46 | |
Total staff costs | 1,236 | 880 | 465 |
Other staff | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Salaries and other benefits | 7,324 | 7,625 | 8,090 |
Retirement benefits scheme contributions | 1,261 | 591 | 1,046 |
Share-based compensation | (180) | 951 | |
Total staff costs | 8,585 | 8,036 | 10,087 |
Property other than IPP solar parks | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Depreciation expense | 204 | 298 | 271 |
IPP solar parks | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Depreciation expense | $ 19,414 | $ 14,272 | $ 14,208 |
INCOME TAX (EXPENSE) CREDIT - C
INCOME TAX (EXPENSE) CREDIT - Component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INCOME TAX (EXPENSE) CREDIT | |||
Current tax | $ (15,299) | $ (4,906) | $ (10,976) |
Deferred tax | 8,014 | 11,436 | 9,699 |
Total income tax (expense) credit | $ (7,285) | $ 6,530 | $ (1,277) |
INCOME TAX (EXPENSE) CREDIT - I
INCOME TAX (EXPENSE) CREDIT - Income Tax rates (Details) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 27.80% | 27.80% | 29.00% | ||
Bulgaria | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Czech | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 19.00% | 19.00% | 19.00% | ||
Germany | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | |
Hong Kong | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% |
Canada | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 25.00% | 26.50% | 26.50% | 26.50% | 26.50% |
Japan | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 27.80% | 27.80% | 30.00% | 33.00% | 38.00% |
Greece | |||||
INCOME TAX (EXPENSE) CREDIT | |||||
Income tax (as a percent) | 29.00% | 29.00% | 26.00% | 26.00% |
INCOME TAX (EXPENSE) CREDIT - R
INCOME TAX (EXPENSE) CREDIT - Reconciliation of tax expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of taxation with the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income | |||
(Loss) profit before taxation | $ (14,835) | $ (39,580) | $ 4,559 |
Tax at the domestic income tax rate (2016: 29%, 2017: 27.8%, 2018: 27.8%) | (4,124) | (11,003) | 1,322 |
Tax effect of income not taxable for tax purpose | (158) | (1,802) | |
Tax effect of expenses not deductible | 3,116 | 1,898 | 716 |
Overprovision in prior years | (715) | ||
Tax effect of tax losses not recognized | 10,318 | 3,007 | 5,321 |
Recognition of deferred tax assets previously not recognized | (3,646) | ||
Utilization of tax losses previously not recognized | (1,530) | (601) | (2,463) |
Effect of different tax rates of subsidiaries operating in other jurisdictions | (337) | 884 | 1,829 |
Income tax expense (benefit) | $ 7,285 | $ (6,530) | $ 1,277 |
Effective income tax rate | (49.00%) | 16.00% | 28.00% |
Domestic income tax rate | 27.80% | 27.80% | 29.00% |
DIVIDENDS (Details)
DIVIDENDS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DIVIDENDS | |||
Dividends paid or proposed | $ 0 | $ 0 | $ 0 |
Dividends proposed since end of reporting period | $ 0 |
(LOSS) EARNINGS PER SHARE (Deta
(LOSS) EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
(LOSS) EARNINGS PER SHARE | |||
(Loss) profit for the purpose of basic and diluted (loss) earnings per share | $ (21,955) | $ (33,171) | $ 3,784 |
Weighted average number of ordinary shares outstanding - basic and diluted | 419,546,514 | 418,314,541 | 401,602,159 |
Basic net (loss) earnings per share | $ (0.05) | $ (0.1) | $ 0.01 |
Diluted net (loss) earnings per share | $ (0.05) | $ (0.1) | $ 0.01 |
Number of anti-dilutive instruments excluded from the computation of EPS | 1,160,000 | 1,160,000 | 1,280,000 |
Options | |||
(LOSS) EARNINGS PER SHARE | |||
Number of anti-dilutive instruments excluded from the computation of EPS | 220,000 | 220,000 | 330,000 |
Restricted shares | |||
(LOSS) EARNINGS PER SHARE | |||
Number of anti-dilutive instruments excluded from the computation of EPS | 940,000 | 940,000 | 950,000 |
OTHER OPERATING INCOME (Details
OTHER OPERATING INCOME (Details) $ in Thousands, ¥ in Millions | Oct. 30, 2018JPY (¥)item | Oct. 30, 2018USD ($)item | Mar. 30, 2018JPY (¥)MW | Mar. 30, 2018USD ($)MW | Sep. 29, 2016USD ($) | Dec. 31, 2018JPY (¥)itemMW | Dec. 31, 2018USD ($)itemMW | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Other operating income | |||||||||
Gain(Loss) on disposal of IPP solar parks(Note a) | ¥ 925 | $ 8,400 | $ 8,491 | $ 1,248 | |||||
Gain on sale of permits and rights(Note b) | 18,220 | ||||||||
Gain(Loss) on disposal of subsidiaries | $ 10,082 | (1,288) | $ 1,875 | 11,768 | |||||
Others | 207 | 193 | 147 | ||||||
Total | $ 25,630 | 2,068 | 13,163 | ||||||
Number of IPP solar parks disposed | item | 4 | 4 | 4 | 4 | |||||
Proceeds from disposal of IPP solar parks | ¥ 2,150 | $ 19,600 | $ 46,195 | $ 1,979 | $ 4,839 | ||||
Renova and Nec Capital | |||||||||
Other operating income | |||||||||
Gain on sale of permits and rights(Note b) | ¥ 2,000 | $ 18,200 | |||||||
Mega watts project (in Mega Watts) | MW | 40.8 | 40.8 | 40.8 | 40.8 | |||||
Project investment | ¥ 529 | $ 4,800 | ¥ 529 | $ 4,800 | |||||
Distribution of profit loss (as a percent) | 45.00% | 45.00% | 45.00% | 45.00% | |||||
Proceeds from sale of permit | ¥ 2,600 | $ 23,000 |
AMOUNTS DUE FROM RELATED PART_3
AMOUNTS DUE FROM RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - current, trade | $ 1,427 | $ 1,364 |
Amounts due from related parties - current, non-trade | 15,001 | 15,349 |
Amounts due from related parties, current | 16,428 | 16,713 |
Amounts due from related parties - non-current, trade | 1,247 | |
Amounts due from related parties, non-current | 5,050 | 5,632 |
RisenSky Solar and its subsidiaries | ||
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - non-current, trade | 1,247 | |
Amounts due from related parties - non-current, non-trade | 5,050 | 4,385 |
COST / gross amount | China New Era | ||
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - current, trade | 3,165 | 3,334 |
Amounts due from related parties - current, non-trade | 342 | 359 |
COST / gross amount | 8180792 Canada Inc | ||
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - current, non-trade | 6 | |
COST / gross amount | Mr. Su Weili | ||
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - current, non-trade | 14,889 | 15,220 |
Impairment | ||
AMOUNTS DUE FROM RELATED PARTIES | ||
Amounts due from related parties - current, trade | (1,744) | (1,970) |
Amounts due from related parties - current, non-trade | $ (230) | $ (230) |
AMOUNTS DUE RELATED PARTIES - N
AMOUNTS DUE RELATED PARTIES - Notes (Details) - USD ($) $ in Thousands | Mar. 28, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
AMOUNTS DUE FROM RELATED PARTIES | ||||
Receivables due from related parties | $ 21,478 | $ 22,345 | ||
Balance at beginning of year | 140,929 | |||
Balance at end of the year | 137,834 | 140,929 | ||
Amount due from related parties | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Balance at end of the year | 21,478 | |||
Impairment | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Receivables due from related parties | (1,974) | (2,200) | ||
Impairment | Amount due from related parties | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Balance at beginning of year | 2,200 | 2,200 | ||
Reversal of provision | (116) | |||
Exchange differences | (110) | |||
Balance at end of the year | $ 1,974 | $ 2,200 | ||
1091187 B.C. Ltd. | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Proportion of equity interest held | 75.00% | 75.00% | ||
China New Era | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Receivables due from related parties | $ 0 | |||
Amount received from related parties | $ 1,500 | |||
China New Era | Impairment | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Receivables due from related parties | $ 2,000 | $ 2,200 | ||
China New Era | Sky Solar Holdings | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Proportion of equity interest held | 49.00% | |||
RisenSky Solar and its subsidiaries | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Receivables interest-bearing | $ 5,000 | $ 4,400 | ||
Interest on receivables from related parties (as a percent) | 3.00% | 3.00% | ||
Mr. Su Weili | ||||
AMOUNTS DUE FROM RELATED PARTIES | ||||
Amount due to related parties | $ 14,900 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) $ in Thousands, € in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012item | Sep. 30, 2012installment |
Trade and other receivables | ||||||
Financial assets | $ 13,760 | $ 22,150 | ||||
Value-added tax recoverable | 1,053 | 2,044 | ||||
Prepaid assets and prepayment | 4,915 | 6,755 | ||||
Receivable due from staff | 40 | 78 | ||||
Others | 2,093 | 4,958 | ||||
Allowance for expected credit losses (Note c) | (1,326) | (1,403) | ||||
Non-financial assets | 6,775 | 12,432 | ||||
Total trade and other receivables | 20,535 | 34,582 | ||||
Two third party contractors | ||||||
Trade and other receivables | ||||||
Number of third party contractors failed to construct solar parks | item | 2 | |||||
Number of installments due from third party contractors | installment | 3 | |||||
Impairment | ||||||
Trade and other receivables | ||||||
Total trade and other receivables | (3,182) | (1,403) | ||||
Trade receivables | COST / gross amount | ||||||
Trade and other receivables | ||||||
Financial assets | 7,939 | 10,206 | ||||
Trade receivables | Impairment | ||||||
Trade and other receivables | ||||||
Financial assets | (1,856) | |||||
Trade receivables | Impairment | Two third party contractors | ||||||
Trade and other receivables | ||||||
Financial assets | € (1) | (1,100) | $ (1,100) | |||
Deposit | ||||||
Trade and other receivables | ||||||
Financial assets | 1,072 | 7,186 | ||||
Deposit | Hudson | ||||||
Trade and other receivables | ||||||
Financial assets | 2,500 | |||||
Deposit | Canada | ||||||
Trade and other receivables | ||||||
Financial assets | 1,400 | |||||
Deposit | Japan | ||||||
Trade and other receivables | ||||||
Financial assets | 1,800 | |||||
Receivable due from third parties | ||||||
Trade and other receivables | ||||||
Financial assets | $ 6,605 | $ 4,758 |
TRADE AND OTHER RECEIVABLES - M
TRADE AND OTHER RECEIVABLES - Movements in the allowance for doubtful debts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful debts | ||
Balance at beginning of year | $ 140,929 | |
Balance at end of the year | 137,834 | $ 140,929 |
Trade and other receivables | ||
Allowance for doubtful debts | ||
Balance at end of the year | 13,760 | |
Trade and other receivables | Impairment | ||
Allowance for doubtful debts | ||
Balance at beginning of year | 1,403 | 1,329 |
Effect of IFRS 9 as at January 1, 2018 | 1,044 | |
Adjustment from the adoption of IFRS 9 | 2,447 | |
Provisions recognized on receivables | 811 | |
Exchange difference | (76) | 74 |
Balance at end of the year | $ 3,182 | $ 1,403 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
INVENTORIES | ||
Solar modules | $ 626 | $ 166 |
Permits and related costs capitalized during the course of obtaining permits | 141 | |
Inventories | $ 626 | $ 307 |
ASSETS CLASSIFIED AS HELD FOR_3
ASSETS CLASSIFIED AS HELD FOR SALE (Details) $ in Thousands, ¥ in Billions | Mar. 08, 2019JPY (¥)agreementitem | Mar. 08, 2019USD ($)agreementitem | Jan. 17, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
ASSETS CLASSIFIED AS HELD FOR SALE | ||||||
IPP solar parks | $ 353,050 | $ 397,405 | ||||
Cash and cash equivalents | 43,831 | 46,084 | $ 12,518 | |||
Trade and other receivables | 20,535 | 34,582 | ||||
Total assets | 585,217 | 581,108 | ||||
Liabilities associated with assets held for sale | 507,010 | $ 474,880 | ||||
Chile | ||||||
ASSETS CLASSIFIED AS HELD FOR SALE | ||||||
Sale price of subsidiary | $ 3,000 | |||||
Assets and liabilities classified as held for sale | Chile | ||||||
ASSETS CLASSIFIED AS HELD FOR SALE | ||||||
IPP solar parks | 2,121 | |||||
Cash and cash equivalents | 128 | |||||
Trade and other receivables | 1,092 | |||||
Total assets | 3,341 | |||||
Liabilities associated with assets held for sale | 336 | |||||
Assets and liabilities classified as held for sale | Japan | ||||||
ASSETS CLASSIFIED AS HELD FOR SALE | ||||||
IPP solar parks | 45,046 | |||||
Total assets | $ 45,046 | |||||
Asset purchase agreements | agreement | 12 | 12 | ||||
IPP solar parks | item | 12 | 12 | ||||
Sale price of subsidiary | ¥ 9.4 | $ 85,700 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property other than IPP solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | $ 916 | $ 823 | |
Property, plant and equipment at end of period | 684 | 916 | $ 823 |
Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | 87 | 89 | |
Property, plant and equipment at end of period | $ 103 | 87 | 89 |
Estimated useful lives of property, plant and equipment (in years) | 20 years | ||
Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | $ 352 | 314 | |
Property, plant and equipment at end of period | $ 182 | 352 | 314 |
Estimated useful lives of property, plant and equipment (in years) | 5 years | ||
Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | $ 477 | 420 | |
Property, plant and equipment at end of period | $ 399 | 477 | 420 |
Estimated useful lives of property, plant and equipment (in years) | 5 years | ||
COST / gross amount | Property other than IPP solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | $ 2,377 | 2,180 | 1,998 |
Additions | 114 | 375 | 349 |
Disposals | (900) | (297) | (128) |
Exchange adjustment | (47) | 119 | (39) |
Property, plant and equipment at end of period | 1,544 | 2,377 | 2,180 |
COST / gross amount | Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | 128 | 185 | 138 |
Additions | 35 | 42 | |
Disposals | (65) | ||
Exchange adjustment | (2) | 8 | 5 |
Property, plant and equipment at end of period | 161 | 128 | 185 |
COST / gross amount | Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | 842 | 786 | 622 |
Additions | 198 | 205 | |
Disposals | (569) | (174) | (24) |
Exchange adjustment | (6) | 32 | (17) |
Property, plant and equipment at end of period | 267 | 842 | 786 |
COST / gross amount | Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | 1,407 | 1,209 | 1,238 |
Additions | 79 | 177 | 102 |
Disposals | (331) | (58) | (104) |
Exchange adjustment | (39) | 79 | (27) |
Property, plant and equipment at end of period | 1,116 | 1,407 | 1,209 |
DEPRECIATION / AMORTIZATION | Property other than IPP solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | (1,461) | (1,357) | (1,199) |
Provided for the year | (204) | (298) | (271) |
Disposals | 771 | 284 | 113 |
Exchange adjustment | 34 | (90) | |
Property, plant and equipment at end of period | (860) | (1,461) | (1,357) |
DEPRECIATION / AMORTIZATION | Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | (41) | (96) | (71) |
Provided for the year | (18) | (17) | (15) |
Disposals | 66 | ||
Exchange adjustment | 1 | 6 | (10) |
Property, plant and equipment at end of period | (58) | (41) | (96) |
DEPRECIATION / AMORTIZATION | Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | (490) | (472) | (371) |
Provided for the year | (52) | (148) | (127) |
Disposals | 457 | 173 | 21 |
Exchange adjustment | (43) | 5 | |
Property, plant and equipment at end of period | (85) | (490) | (472) |
DEPRECIATION / AMORTIZATION | Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | (930) | (789) | (757) |
Provided for the year | (134) | (133) | (129) |
Disposals | 314 | 45 | 92 |
Exchange adjustment | 33 | (53) | 5 |
Property, plant and equipment at end of period | $ (717) | $ (930) | $ (789) |
IPP SOLAR PARKS, INVESTMENT P_3
IPP SOLAR PARKS, INVESTMENT PROPERTY (Details) $ in Thousands, ¥ in Millions | Sep. 29, 2016USD ($) | Feb. 28, 2017JPY (¥) | Feb. 28, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Total | ||||||
Impairment provided for the year | $ (4,541) | $ (5,221) | $ (2,151) | |||
Loss on disposal of subsidiaries | $ 10,082 | (1,288) | 1,875 | 11,768 | ||
Tokyo Solar Electricity KK | ||||||
Total | ||||||
Sale price of subsidiary | ¥ 9.3 | $ 83 | ||||
Loss on disposal of subsidiaries | $ (5) | |||||
IPP solar parks | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | 397,405 | 271,253 | ||||
Property, plant and equipment at end of period | 353,050 | 397,405 | 271,253 | |||
IPP solar parks | COST / gross amount | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | 445,820 | 298,437 | 300,027 | |||
Additions | 42,723 | 146,799 | 45,470 | |||
Acquisition of subsidiaries | 34,158 | |||||
Transfer to investment property | (265) | (104) | ||||
Reclassified as held for sale | (62,035) | (60,667) | ||||
Disposal of subsidiaries | (3,471) | (1,503) | (18,407) | |||
Disposals | (17,861) | (1,979) | (3,671) | |||
Exchange adjustment | 3,652 | 4,066 | 1,631 | |||
Property, plant and equipment at end of period | 408,563 | 445,820 | 298,437 | |||
IPP solar parks | DEPRECIATION AND IMPAIRMENT | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | (48,415) | (27,184) | (40,604) | |||
Provided for the year | (19,414) | (14,272) | (14,208) | |||
Reclassified as held for sale | (14,868) | 25,983 | ||||
Impairment provided for the year | (4,541) | (5,221) | (2,151) | |||
Disposal of subsidiaries | 1,056 | 19 | 1,560 | |||
Disposals | (1,459) | 80 | ||||
Exchange adjustment | (526) | (1,757) | 2,156 | |||
Property, plant and equipment at end of period | (55,513) | (48,415) | (27,184) | |||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | 43,244 | 32,566 | ||||
Property, plant and equipment at end of period | 31,519 | 43,244 | 32,566 | |||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | COST / gross amount | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | 52,631 | 36,476 | 37,359 | |||
Additions | 41,953 | 36,589 | 42,895 | |||
Transfer to investment property | (104) | |||||
Reclassified as held for sale | (9,983) | |||||
Disposal of subsidiaries | (669) | |||||
Disposals | (5,328) | (1,979) | ||||
Transfer | (44,327) | (17,150) | (42,330) | |||
Exchange adjustment | (117) | (636) | (1,344) | |||
Property, plant and equipment at end of period | 34,829 | 52,631 | 36,476 | |||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | DEPRECIATION AND IMPAIRMENT | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | (9,387) | (3,910) | (1,976) | |||
Reclassified as held for sale | (7,862) | |||||
Impairment provided for the year | (1,785) | (5,120) | (2,151) | |||
Exchange adjustment | (357) | 217 | ||||
Property, plant and equipment at end of period | (3,310) | (9,387) | (3,910) | |||
Completed solar parks | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | 354,161 | 238,687 | ||||
Property, plant and equipment at end of period | $ 321,531 | $ 354,161 | $ 238,687 | |||
Completed solar parks | Minimum | ||||||
Total | ||||||
Estimated useful lives | 20 years | 20 years | 20 years | |||
Completed solar parks | Maximum | ||||||
Total | ||||||
Estimated useful lives | 30 years | 30 years | 30 years | |||
Completed solar parks | COST / gross amount | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | $ 393,189 | $ 261,961 | $ 262,668 | |||
Additions | 770 | 110,210 | 2,575 | |||
Acquisition of subsidiaries | 34,158 | |||||
Transfer to investment property | (265) | |||||
Reclassified as held for sale | (52,052) | (60,667) | ||||
Disposal of subsidiaries | (3,471) | (834) | (18,407) | |||
Disposals | (12,533) | (3,671) | ||||
Transfer | 44,327 | 17,150 | 42,330 | |||
Exchange adjustment | 3,769 | 4,702 | 2,975 | |||
Property, plant and equipment at end of period | 373,734 | 393,189 | 261,961 | |||
Completed solar parks | DEPRECIATION AND IMPAIRMENT | ||||||
Total | ||||||
Property, plant and equipment at beginning of period | (39,028) | (23,274) | (38,628) | |||
Provided for the year | (19,414) | (14,272) | (14,208) | |||
Reclassified as held for sale | (7,006) | 25,983 | ||||
Impairment provided for the year | (2,756) | (101) | ||||
Disposal of subsidiaries | 1,056 | 19 | 1,560 | |||
Disposals | (1,459) | 80 | ||||
Exchange adjustment | (526) | (1,400) | 1,939 | |||
Property, plant and equipment at end of period | $ (52,203) | $ (39,028) | $ (23,274) |
IPP SOLAR PARKS, INVESTMENT P_4
IPP SOLAR PARKS, INVESTMENT PROPERTY - Secured borrowings and impairment (Details) $ in Thousands | Oct. 30, 2018item | Dec. 31, 2018USD ($)subsidiaryitem | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Borrowings | $ 256,757 | $ 249,729 | ||
Impairment provided for the year | $ 4,541 | 5,221 | $ 2,151 | |
Number of subsidiaries disposed | subsidiary | 2 | |||
Number of IPP solar parks disposed | item | 4 | 4 | ||
Secured | ||||
Borrowings | $ 252,896 | 244,030 | ||
IPP solar parks | Greece | ||||
Impairment provided for the year | 2,200 | |||
IPP solar parks | Uruguay | ||||
Impairment provided for the year | 2,800 | |||
IPP solar parks | USA | ||||
Impairment provided for the year | 2,300 | |||
IPP solar parks | Latin America | ||||
Impairment provided for the year | 4,500 | |||
IPP solar parks | Secured | ||||
Carrying amounts of solar parks pledged to secure borrowings | 344,300 | 277,400 | 215,600 | |
Borrowings | $ 252,900 | $ 244,000 | $ 150,600 |
IPP SOLAR PARKS, INVESTMENT P_5
IPP SOLAR PARKS, INVESTMENT PROPERTY - Investment Property (Details) - Land - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, plant and equipment | |||
Property, plant and equipment | $ 11,000 | $ 11,300 | $ 11,300 |
Transfer to investment property | $ 265 | $ 0 | $ 104 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | $ 126 | ||
Balance at end of the year | 85 | $ 126 | |
Software | |||
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | 126 | 122 | |
Balance at end of the year | $ 85 | 126 | $ 122 |
Intangible assets amortization period (in years) | 5 years | ||
COST / gross amount | Software | |||
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | $ 281 | 252 | 239 |
Additions | 10 | 42 | 40 |
Disposals | (8) | (1) | (32) |
Exchange adjustments | 2 | (12) | 5 |
Balance at end of the year | 285 | 281 | 252 |
DEPRECIATION / AMORTIZATION | Software | |||
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | (155) | (130) | (92) |
Charge for the year | (52) | (44) | (71) |
Disposals | 6 | 1 | 31 |
Exchange adjustments | 1 | 18 | 2 |
Balance at end of the year | $ (200) | $ (155) | $ (130) |
INTERESTS IN ASSOCIATES - Recon
INTERESTS IN ASSOCIATES - Reconciliation of changes in interest in associates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in interest in associates | ||
Balance at the beginning of the period | $ 2,566 | $ 4,092 |
Investment in new affiliates | 612 | |
Add: Share of profit of associates | 189 | |
Less: Dividends received from the associates | (302) | (427) |
Less: Disposal of associates | (2,038) | |
Exchange difference | (120) | 327 |
Balance at the end of the period | $ 2,333 | $ 2,566 |
INTERESTS IN ASSOCIATES - Detai
INTERESTS IN ASSOCIATES - Detailed Information (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017director | Dec. 31, 2018director | Dec. 31, 2017 | Dec. 31, 2016itemdirector | Dec. 31, 2019 | |
RisenSky Solar | |||||
Disclosure of interests in associates | |||||
Proportion of nominal value of issued capital held | 30.00% | 30.00% | |||
Proportion of voting power held | 30.00% | 30.00% | |||
1088526 B.C. Ltd. | |||||
Disclosure of interests in associates | |||||
Proportion of nominal value of issued capital held | 75.00% | 75.00% | |||
Proportion of voting power held | 50.00% | 50.00% | |||
Number of directors who can be appointed in associate by contractual right | 2 | 2 | |||
Total number of directors in the associate | 4 | 4 | |||
1088526 B.C. Ltd. | Energy Capital Investment II sarl ("ECI") | |||||
Disclosure of interests in associates | |||||
Percentage of preferred shares of the associate, agreed to be sold, under the share purchase agreement with Jade | 25.00% | ||||
Share capital subscribed (as a percent) | 70.00% | 95.00% | |||
1088526 B.C. Ltd. | Sky Solar (Canada) FIT 1 Limited Partnership | |||||
Disclosure of interests in associates | |||||
Number of commercial and industrial solar facilities owned in Canada | item | 15 | ||||
1091187 B.C. Ltd. | |||||
Disclosure of interests in associates | |||||
Proportion of nominal value of issued capital held | 75.00% | 75.00% | |||
Proportion of voting power held | 50.00% | 50.00% | |||
Number of directors who can be appointed in associate by contractual right | 2 | 2 | |||
Total number of directors in the associate | 4 | 4 | |||
1091187 B.C. Ltd. | Energy Capital Investment II sarl ("ECI") | |||||
Disclosure of interests in associates | |||||
Percentage of preferred shares of the associate, agreed to be sold, under the share purchase agreement with Jade | 25.00% | ||||
Share capital subscribed (as a percent) | 70.00% | 95.00% |
INTERESTS IN ASSOCIATES - Summa
INTERESTS IN ASSOCIATES - Summarized financial information in respect of the Group's associates (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | |
Non-current assets: | ||||
IPP solar parks | $ 353,050 | $ 397,405 | ||
Other non-current assets | 15,098 | 11,045 | ||
Non-current Assets | 410,497 | 442,706 | ||
Current assets | 174,720 | 138,402 | ||
Current liabilities: | ||||
Other current liabilities | 130,323 | 120,820 | ||
Amounts due to related parties | 211 | 28 | ||
Total current liabilities | 224,348 | 171,933 | ||
Non-current liabilities: | ||||
Borrowings | 207,057 | 230,027 | ||
Others | 72,446 | 70,136 | ||
Total non-current liabilities | 282,662 | 302,947 | ||
Net assets (liabilities) | 78,207 | 106,228 | $ 1,022 | |
Revenue | 64,669 | 56,733 | $ 65,925 | |
(Loss) profit for the year | (22,120) | (33,050) | 3,282 | |
Group's share of profit of associates of the year | 189 | 173 | ||
Group's share of other comprehensive income of associates | $ 136 | |||
Associates | ||||
Non-current assets: | ||||
IPP solar parks | 34,671 | 39,054 | ||
Other non-current assets | 12,737 | 13,514 | ||
Non-current Assets | 47,408 | 52,568 | ||
Current assets | 7,955 | 8,190 | ||
Current liabilities: | ||||
Other current liabilities | 3,151 | 4,205 | ||
Amounts due to related parties | 268 | 967 | ||
Total current liabilities | 3,419 | 5,172 | ||
Non-current liabilities: | ||||
Borrowings | 36,113 | 40,464 | ||
Others | 1,103 | 999 | ||
Total non-current liabilities | 37,216 | 41,463 | ||
Net assets (liabilities) | 14,728 | 14,123 | ||
Revenue | 7,886 | 7,817 | ||
(Loss) profit for the year | 1,743 | 970 | ||
Group's share of profit of associates of the year | 189 | |||
Group's share of profit of associates of the year not recognized | 388 | 302 | ||
RisenSky Solar | ||||
Non-current assets: | ||||
IPP solar parks | 20,428 | 22,592 | ||
Other non-current assets | 439 | 472 | ||
Non-current Assets | 20,867 | 23,064 | ||
Current assets | 5,160 | 5,342 | ||
Current liabilities: | ||||
Other current liabilities | 1,419 | 2,739 | ||
Amounts due to related parties | 262 | 967 | ||
Total current liabilities | 1,681 | 3,706 | ||
Non-current liabilities: | ||||
Borrowings | 22,456 | 24,034 | ||
Total non-current liabilities | 22,456 | 24,034 | ||
Net assets (liabilities) | 1,890 | 666 | ||
Revenue | 3,978 | 3,840 | ||
(Loss) profit for the year | 1,293 | 1,076 | ||
Group's share of profit of associates of the year not recognized | $ 388 | $ 323 | ||
Proportion of profits | 30.00% | 30.00% | ||
1088526 B.C. Ltd. | ||||
Non-current assets: | ||||
IPP solar parks | $ 11,367 | $ 13,157 | ||
Other non-current assets | 10,996 | 11,359 | ||
Non-current Assets | 22,363 | 24,516 | ||
Current assets | 2,372 | 2,689 | ||
Current liabilities: | ||||
Other current liabilities | 1,558 | 1,312 | ||
Total current liabilities | 1,558 | 1,312 | ||
Non-current liabilities: | ||||
Borrowings | 12,529 | 15,109 | ||
Others | 967 | 941 | ||
Total non-current liabilities | 13,496 | 16,050 | ||
Net assets (liabilities) | 9,681 | 9,843 | ||
Revenue | 3,201 | 3,268 | ||
(Loss) profit for the year | 286 | (240) | ||
Group's share of profit of associates of the year | $ 111 | |||
Group's share of profit of associates of the year not recognized | $ (43) | |||
Proportion of share profit held in associate | 30.00% | |||
Proportion of profits | 50.00% | 50.00% | ||
1091187 B.C. Ltd. | ||||
Non-current assets: | ||||
IPP solar parks | $ 2,876 | $ 3,305 | ||
Other non-current assets | 1,302 | 1,683 | ||
Non-current Assets | 4,178 | 4,988 | ||
Current assets | 423 | 159 | ||
Current liabilities: | ||||
Other current liabilities | 174 | 154 | ||
Amounts due to related parties | 6 | |||
Total current liabilities | 180 | 154 | ||
Non-current liabilities: | ||||
Borrowings | 1,128 | 1,321 | ||
Others | 136 | 58 | ||
Total non-current liabilities | 1,264 | 1,379 | ||
Net assets (liabilities) | 3,157 | 3,614 | ||
Revenue | 707 | 709 | ||
(Loss) profit for the year | 164 | 134 | ||
Group's share of profit of associates of the year | $ 78 | |||
Group's share of profit of associates of the year not recognized | $ 22 | |||
Proportion of profits | 50.00% | 50.00% |
FINANCIAL ASSETS AND LIABILIT_2
FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | $ 137,834 | $ 138,985 | $ 140,929 |
Financial liabilities | 469,538 | 455,078 | |
Amortized cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 279,223 | 276,373 | |
FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 190,315 | 178,705 | |
Trade and other payables | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 22,255 | 26,644 | 26,644 |
Trade and other payables | Amortized cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 22,255 | 26,644 | |
Amounts due to related parties | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 211 | 28 | |
Amounts due to related parties | Amortized cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 211 | ||
Current borrowings | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 49,700 | 19,702 | |
Current borrowings | Amortized cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 49,700 | 19,702 | |
Other current liabilities | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 130,323 | 120,820 | 120,820 |
Other current liabilities | FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 130,323 | 120,820 | |
Non-current borrowings | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 207,057 | 230,027 | |
Non-current borrowings | Amortized cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 207,057 | 230,027 | |
Other non-current liabilities | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 59,992 | 57,885 | $ 57,885 |
Other non-current liabilities | FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial liabilities | 59,992 | 57,885 | |
Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 112,259 | 119,813 | |
FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 25,575 | 19,172 | |
Cash and cash equivalents | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 43,831 | 46,084 | |
Cash and cash equivalents | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 43,831 | 46,084 | |
Restricted cash | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 44,182 | 40,716 | |
Restricted cash | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 44,182 | 40,716 | |
Trade and other receivables | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 13,760 | 21,106 | |
Trade and other receivables | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 13,760 | 21,106 | |
Contract assets | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 731 | ||
Contract assets | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 731 | ||
Amount due from related parties | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 21,478 | 21,912 | |
Amount due from related parties | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 1,539 | 2,740 | |
Amount due from related parties | FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 19,939 | 19,172 | |
Other non-current assets | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 13,852 | 9,167 | |
Other non-current assets | Amortised cost | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | 8,216 | $ 9,167 | |
Other non-current assets | FVTPL | |||
FINANCIAL ASSETS AND LIABILITIES | |||
Financial assets | $ 5,636 |
DEFERRED TAX ASSETS (Details)
DEFERRED TAX ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | $ 20,716 | $ 9,251 | |
Credit (charge) to profit or loss | 8,014 | 11,436 | $ 9,699 |
Reclassified to held-for-sale | 186 | ||
Exchange differences | 307 | 29 | |
Balance at the end of the period | 29,223 | 20,716 | 9,251 |
Deferred tax assets | 32,382 | 23,500 | 9,581 |
Deferred tax liabilities | 3,159 | 2,784 | 330 |
Unrecognized deferred tax assets | 17,700 | 81,100 | |
Unrecognized deferred tax assets expire unutilized | |||
2019 | 310 | ||
2020 | 80 | ||
2021 | 220 | ||
2022 | 2,970 | ||
2023 | 2,420 | ||
Thereafter | 11,700 | ||
Tax losses | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 1,151 | 864 | |
Credit (charge) to profit or loss | (377) | 286 | |
Exchange differences | 28 | 1 | |
Balance at the end of the period | 802 | 1,151 | 864 |
Deferred tax assets | 802 | 1,151 | 864 |
Fair value change of financial instruments | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 12,283 | 917 | |
Credit (charge) to profit or loss | 5,226 | 11,325 | |
Exchange differences | 213 | 41 | |
Balance at the end of the period | 17,722 | 12,283 | 917 |
Deferred tax assets | 17,722 | 12,283 | 917 |
Unrealized gain on inter-group sales | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 8,606 | 10,456 | |
Credit (charge) to profit or loss | 1,772 | (1,843) | |
Exchange differences | 216 | (7) | |
Balance at the end of the period | 10,594 | 8,606 | 10,456 |
Deferred tax assets | 10,594 | 8,606 | 10,456 |
Depreciation of solar parks | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | (1,324) | (2,986) | |
Credit (charge) to profit or loss | 1,393 | 1,668 | |
Reclassified to held-for-sale | 186 | ||
Exchange differences | (150) | (6) | |
Balance at the end of the period | 105 | (1,324) | (2,986) |
Deferred tax assets | 3,264 | 1,460 | (2,656) |
Deferred tax liabilities | $ 3,159 | $ 2,784 | $ 330 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) $ in Thousands, ¥ in Millions | Mar. 30, 2018JPY (¥)MW | Mar. 30, 2018USD ($)MW | Dec. 31, 2018JPY (¥)MW | Dec. 31, 2018USD ($)MW | Dec. 31, 2017USD ($) | Dec. 31, 2016item | Jul. 15, 2016item |
Other non-current assets | |||||||
Long-term loan to a third party | $ 7,525 | $ 7,974 | |||||
Long term deposits relate to IPP solar parks | 1,089 | 1,660 | |||||
Financial Instruments | 5,636 | ||||||
Allowance for expected credit losses (Note b) | (398) | ||||||
Financial assets | 13,852 | 7,974 | |||||
Long-term Prepayments | 1,246 | 1,411 | |||||
Non-financial assets | 1,246 | 1,411 | |||||
Total | 15,098 | 11,045 | |||||
USD 20.2 million loan agreement | |||||||
Other non-current assets | |||||||
Principal | $ 20,200 | $ 20,200 | |||||
Interest rate swap fixed rate | 5.00% | 5.00% | |||||
Fair value assets | $ 224 | ||||||
Acquisition of solar parks in the USA | |||||||
Other non-current assets | |||||||
Long-term loan to a third party | $ 7,100 | $ 8,000 | |||||
Number of solar parks acquired | item | 23 | 23 | |||||
Annual interest rate (as a percent) | 1.00% | 1.00% | |||||
Japan | |||||||
Other non-current assets | |||||||
Long term deposits relate to IPP solar parks | $ 1,100 | $ 1,700 | |||||
Renova and Nec Capital | |||||||
Other non-current assets | |||||||
Mega watts project (in Mega Watts) | MW | 40.8 | 40.8 | 40.8 | 40.8 | |||
Project investment | ¥ 529 | $ 4,800 | ¥ 529 | $ 4,800 | |||
Distribution of profit loss (as a percent) | 45.00% | 45.00% | 45.00% | 45.00% | |||
Carrying amount | $ 5,400 | ||||||
Gain of fair value movement | $ 579 |
OTHER NON-CURRENT ASSETS - Move
OTHER NON-CURRENT ASSETS - Movements in the allowance for doubtful debts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of financial assets [line items] | |||
Balance at beginning of year | $ 140,929 | ||
Effect of IFRS 9 as at January 1, 2018 | [1] | $ (1,944) | |
Balance at end of the year | 137,834 | 140,929 | |
Other non-current assets | Impairment | |||
Disclosure of financial assets [line items] | |||
Effect of IFRS 9 as at January 1, 2018 | 467 | ||
Adjustment from the adoption of IFRS 9 | $ 467 | ||
Provisions recognized on receivables | (69) | ||
Balance at end of the year | $ 398 | ||
[1] | Due to the application IFRS 9 in 2018, the Group reconciliates of statement of financial on the date of initial application. The impact on profit and loss of the reclassification of the receivables from RisenSky Solar S.a.r.l. and Mr. Su Weili in amount due from related parties to fair value through profit or loss and the impairment of financial assets applying the expected credit loss model as at January 1, 2018 is USD 1.9 million. |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other payables | ||
Trade payables | $ 17,597 | $ 22,613 |
Other payables | 4,658 | 4,031 |
Warranty provision to customers for supply of modules | 24 | |
Other accrued expenses | 4,310 | 711 |
Other tax payable | 4,104 | 1,410 |
Advances from customers | 1,303 | 254 |
Total trade and other current payables | $ 31,972 | $ 29,043 |
Minimum | ||
Trade and other payables | ||
Credit period on purchases of goods | 3 months | |
Maximum | ||
Trade and other payables | ||
Credit period on purchases of goods | 1 year | |
Japan | ||
Trade and other payables | ||
Trade payables | $ 13,300 | |
Other tax payable | $ 3,700 |
TRADE AND OTHER PAYABLES - Warr
TRADE AND OTHER PAYABLES - Warranty provisions (Details) - Warranty provision - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Warranty provision | ||
Balance at beginning of year | $ 24 | $ 332 |
Reversal for the year | $ (24) | (308) |
Balance at end of year | $ 24 |
AMOUNTS DUE TO OTHER RELATED PA
AMOUNTS DUE TO OTHER RELATED PARTIES (Details) $ in Thousands, ¥ in Millions | May 24, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - non-trade | $ 211 | $ 28 | |
Amounts due to related parties | 211 | 28 | |
Sky Solar New Energy Investment Ltd. | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - non-trade | 150 | ||
Investment deposits | ¥ | ¥ 1 | ||
Beijing Sky Solar Investment Management Co., Ltd. | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - non-trade | $ 61 | $ 28 |
BORROWINGS - Schedule of borrow
BORROWINGS - Schedule of borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
BORROWINGS | ||
Borrowings | $ 256,757 | $ 249,729 |
Fixed rate | ||
BORROWINGS | ||
Borrowings | 139,965 | 154,513 |
Variable rate | ||
BORROWINGS | ||
Borrowings | 116,792 | 95,216 |
Secured | ||
BORROWINGS | ||
Borrowings | 252,896 | 244,030 |
Unsecured | ||
BORROWINGS | ||
Borrowings | 3,861 | 5,699 |
Bank borrowings | ||
BORROWINGS | ||
Borrowings | 145,779 | 151,648 |
Other borrowings | ||
BORROWINGS | ||
Borrowings | $ 110,978 | $ 98,081 |
BORROWINGS - Carrying amount re
BORROWINGS - Carrying amount repayable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
BORROWINGS | ||
Total borrowings | $ 256,757 | $ 249,729 |
Less: amounts repayable within one year shown under current liabilities | 49,700 | 19,702 |
Amounts shown under non-current liabilities | 207,057 | 230,027 |
Within one year | ||
BORROWINGS | ||
Total borrowings | 49,700 | 19,702 |
1-2 years | ||
BORROWINGS | ||
Total borrowings | 14,821 | 17,593 |
More than two years but not exceeding five years | ||
BORROWINGS | ||
Total borrowings | 44,366 | 46,881 |
More than five years | ||
BORROWINGS | ||
Total borrowings | $ 147,870 | $ 165,553 |
BORROWINGS - Effective interest
BORROWINGS - Effective interest rates (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed rate | ||
BORROWINGS | ||
Effective interest rate | 3.18% | 3.52% |
Variable rate | ||
BORROWINGS | ||
Effective interest rate | 5.02% | 4.82% |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) $ in Thousands, ¥ in Millions | Apr. 27, 2018MW | Mar. 19, 2018JPY (¥) | Mar. 19, 2018USD ($) | Oct. 10, 2014JPY (¥)itemMW | Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Aug. 31, 2015JPY (¥)itemMW | Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2015USD ($)itemMW | Oct. 10, 2014USD ($)itemMW |
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Balance at January 1, | ¥ 13,600 | $ 120,820 | $ 80,107 | ||||||||||
Transaction (Note 30(b)) | $ 8,383 | 8,383 | |||||||||||
Balance at December 31, | 130,323 | 130,323 | 120,820 | $ 80,107 | |||||||||
Balance at January 1, | 178,705 | ||||||||||||
Balance at December 31, | 190,315 | 190,315 | 178,705 | ||||||||||
Other current liabilities | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Balance at January 1, | 120,820 | ||||||||||||
Balance at December 31, | 130,323 | 130,323 | 120,820 | ||||||||||
Other current liabilities | Level 3 | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Balance at January 1, | 120,820 | 80,107 | |||||||||||
Fair value effect during the year | 16,605 | 37,918 | |||||||||||
Repayment of principal Interest paid back for distribution | (18,200) | ||||||||||||
Exchange difference | 2,715 | 2,795 | |||||||||||
Balance at December 31, | 121,940 | 121,940 | 120,820 | 80,107 | |||||||||
JAML silent partnership agreement | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Balance at January 1, | 121,940 | 120,820 | |||||||||||
Transaction (Note 30(b)) | 1,378 | 1,378 | 1,253 | 829 | |||||||||
Balance at December 31, | 121,940 | 120,820 | |||||||||||
Loss from change in fair value of financial liabilities and extinguishment of agreement | (88) | (396) | |||||||||||
Hudson agreement | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Transaction (Note 30(b)) | 65,870 | 65,870 | 55,426 | 51,143 | |||||||||
Transaction (Note 30(b)) | 57,487 | 57,487 | 55,426 | ||||||||||
Silent partnership agreements with third party investors | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Number of groups of third party investors in the Silent Partnership Agreement | item | 2 | 2 | |||||||||||
Silent partnership agreements with third party investors | Silent Partners | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Estimated annual distributable profits to silent partners | $ 7,400 | ||||||||||||
Silent partnership agreements with third party investors | Sky Solar Japan KK (SSJ) | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Number of solar parks agreed for development and operation | item | 21 | 21 | |||||||||||
Capacity of solar parks under agreement | MW | 34.6 | 34.6 | |||||||||||
Cash contribution for the project | ¥ | ¥ 750 | ||||||||||||
Carrying value of the solar power projects contributed | ¥ | 2,300 | ||||||||||||
Fair value of the solar power projects contributed | ¥ 4,600 | $ 45,500 | |||||||||||
Minimum cumulative annual internal rate of return required on the capital for distribution of profits | 15.00% | 15.00% | |||||||||||
Profit sharing percentage | 51.00% | 51.00% | |||||||||||
Silent partnership agreements with third party investors | Silent Partners | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Cash contribution for the project | ¥ | ¥ 5,000 | ||||||||||||
Minimum cumulative annual internal rate of return required on the capital for distribution of profits | 15.00% | 15.00% | |||||||||||
Profit sharing percentage | 49.00% | 49.00% | |||||||||||
Silent partnership agreements with third party investors | SWL Flash Bright Limited | Investor | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Maximum amount of ordinary shares of the company available for purchase for the investor | $ 30,000 | ||||||||||||
Option exercise period | 2 years | ||||||||||||
Extension time period for purchase of shares | 1 year | ||||||||||||
Period after initial public offering when option exercisability commences | 180 days | ||||||||||||
Target percent of the per share initial public offering price to exercise the call option | 200.00% | 200.00% | |||||||||||
Fair value of call option | $ 6,600 | ||||||||||||
Weighted average cost of capital | 13.50% | ||||||||||||
Amended Agreements | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Term of the amendment agreements | 3 years | ||||||||||||
Loss from change in fair value of financial liabilities and extinguishment of agreement | 16,600 | $ (37,900) | $ (2,764) | ||||||||||
Amended Agreements | Sky Solar Japan KK (SSJ) | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Number of solar parks agreed for development and operation | item | 67 | 67 | |||||||||||
Capacity of solar parks under agreement | MW | 10.79 | 107.9 | 107.9 | ||||||||||
Number of additional solar parks contributed | item | 46 | 46 | |||||||||||
Remaining proceeds used for executing project pipeline | ¥ | ¥ 2,000 | ||||||||||||
Percentage of threshold capacity limit of solar parks under agreement | 10.00% | ||||||||||||
Amended Agreements | Sky Solar Japan KK (SSJ) | Sky International Enterprise Group Ltd. | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Intercompany loan | ¥ | ¥ 2,000 | ||||||||||||
Term of the loans granted | 12 months | ||||||||||||
Interest rate on loans granted | 5.00% | ||||||||||||
Amended Agreements | Sky Solar Japan KK (SSJ) | TK Partner | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Consideration paid to the partner in order to amend the agreement | ¥ 698 | $ 5,800 | |||||||||||
Amended Agreements | Silent Partners | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Increase in capital contribution | ¥ | 9,000 | ||||||||||||
Amended Agreements | TK Partner | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Minimum cumulative annual internal rate of return required on the capital for distribution of profits | 15.00% | ||||||||||||
Additional investment contributed by the TK partner | ¥ 4,000 | $ 33,200 | |||||||||||
Time limit to secure third party offer | 90 days | ||||||||||||
TK Interest Agreement | Silent Partners | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Payment to settle litigation | ¥ 13,400 | $ 121,000 | ¥ 2,000 | $ 18,000 | |||||||||
TK Interest Agreement | Silent Partners | Sky International Enterprise Group Ltd. | |||||||||||||
Financial liabilities designated as fair value through profit or loss | |||||||||||||
Amount of litigation settlement | ¥ 15,400 | $ 140,100 |
OTHER NON-CURRENT LIABILITIES -
OTHER NON-CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
OTHER NON-CURRENT LIABILITIES | |||
Held for trading derivatives not designated in hedge accounting relationships | $ 1,127 | $ 1,128 | |
Asset retirement obligation | 12,454 | 12,251 | |
Others | 78 | ||
Total | 72,446 | 70,136 | |
JAML silent partnership agreement | |||
OTHER NON-CURRENT LIABILITIES | |||
Financial liabilities designated as fair value through profit or loss | 1,378 | 1,253 | $ 829 |
Hudson agreement | |||
OTHER NON-CURRENT LIABILITIES | |||
Financial liabilities designated as fair value through profit or loss | $ 65,870 | $ 55,426 | $ 51,143 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES - Financial liabilities designated as fair value through profit or loss (Details) $ in Thousands, ¥ in Millions | Sep. 18, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015JPY (¥)subsidiaryitem | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($)subsidiaryitem |
OTHER NON-CURRENT LIABILITIES | |||||||
Gains (losses) on financial liabilities at fair value through profit or loss | $ (25,607) | $ (39,105) | $ (2,957) | ||||
JAML silent partnership agreement | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Contractual period | 15 years | ||||||
Loss from change in fair value of financial liabilities | (88) | (396) | |||||
Balance at January 1, | 1,253 | 829 | |||||
Repayment | (2) | ||||||
Fair value effect during the year | 88 | 396 | |||||
Exchange difference | 39 | 28 | |||||
Balance at December 31, | 1,378 | 1,253 | 829 | ||||
Amounts shown under non-current liabilities | 1,253 | 829 | 829 | $ 1,253 | |||
JAML silent partnership agreement | Sky Solar Japan KK (SSJ) | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Number of subsidiaries | subsidiary | 3 | 3 | |||||
JAML silent partnership agreement | Three subsidiaries of Sky Solar Japan KK | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Number of IPP solar parks held by subsidiaries | item | 4 | 4 | |||||
JAML silent partnership agreement | JAML | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Cash contribution for the project | ¥ 63 | $ 519 | |||||
Contribution (as a percent) | 10.00% | ||||||
Hudson agreement | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Balance at January 1, | 55,426 | 51,143 | |||||
Interest addition during the year | 6,510 | 5,756 | |||||
Fair value effect during the year | 8,914 | 791 | |||||
Less: Interest paid back during the year | (4,980) | (2,264) | |||||
Balance at December 31, | 65,870 | 55,426 | 51,143 | ||||
Less: amounts repayable within one year shown under current liabilities(Note 29) | 8,383 | ||||||
Amounts shown under non-current liabilities | 55,426 | 51,143 | $ 51,143 | 55,426 | |||
Amount funded under the agreement | $ 48,200 | ||||||
Period of time after commercial operation date for initial amortization date | 9 months | ||||||
Period of time after note purchase date for initial amortization date | 24 months | ||||||
Equity conversion delay period | 1 year | ||||||
Gains (losses) on financial liabilities at fair value through profit or loss | $ 8,900 | $ (791) | |||||
Hudson agreement | Hudson | |||||||
OTHER NON-CURRENT LIABILITIES | |||||||
Contribution for project in convertible notes | $ 50,000 | ||||||
Non-controlling equity interest to be received (as a percent) | 49.00% |
OTHER NON-CURRENT LIABILITIES_3
OTHER NON-CURRENT LIABILITIES - Held for trading derivatives and asset retirement obligations (Details) | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)agreement | Dec. 31, 2015JPY (¥)agreement | Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2016JPY (¥)item | Dec. 31, 2016USD ($)item | Jul. 15, 2016item | Dec. 31, 2015USD ($) | |
OTHER NON-CURRENT LIABILITIES | ||||||||||
Gain (loss) on change in fair value of swaps | $ 248,000 | $ 201,000 | $ (641,000) | |||||||
Fair value liabilities, balance beginning of the year | 1,128,000 | |||||||||
Fair value liabilities, balance end of the year | 1,127,000 | 1,128,000 | ||||||||
Asset retirement obligations incurred | (54,000,000) | 4,800,000 | ||||||||
Accretion expenses on asset retirement obligations | 1,312,000 | $ 108,000 | ||||||||
Acquisition of solar parks in the USA | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Number of solar parks acquired | item | 23 | 23 | 23 | |||||||
Variable rate | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate (as a percent) | 5.02% | 4.82% | 4.82% | |||||||
JPY 2,300 million and 1,570 million loan agreements | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | $ 34,443,000 | $ 35,217,000 | ||||||||
Gain (loss) on change in fair value of swaps | (30,000) | $ 204,000 | ||||||||
Interest rate (as a percent) | 2.93% | 2.93% | 2.93% | |||||||
Fair value liabilities, balance beginning of the year | 1,064,000 | $ 1,255,000 | ||||||||
Fair value effect during the year | 30,000 | (204,000) | ||||||||
Exchange difference | 23,000 | 13,000 | ||||||||
Fair value liabilities, balance end of the year | 1,117,000 | 1,064,000 | 1,255,000 | |||||||
USD 5.65 million and 20.2 million loan agreements | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | 19,764,000 | $ 2,000,000 | ||||||||
Gain (loss) on change in fair value of swaps | (54,000) | $ (3,000) | ||||||||
Interest rate (as a percent) | 5.09% | 5.09% | 5.09% | |||||||
Fair value liabilities, balance beginning of the year | 64,000 | $ 139,000 | ||||||||
Repayment | (78,000) | |||||||||
Fair value effect during the year | (54,000) | 3,000 | ||||||||
Fair value liabilities, balance end of the year | $ 10,000 | 64,000 | $ 139,000 | |||||||
USD 5.65 million loan agreement | Acquisition of solar parks in the USA | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Number of loan agreements entered | agreement | 3 | |||||||||
Principal | $ 5,650,000 | |||||||||
USD 5.65 million loan agreement | 3-month-USD Prime H 15 | Acquisition of solar parks in the USA | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate basis | USD Federal Reserve statistical release H.15 ("Prime H.15") | |||||||||
USD 5.65 million loan agreement, first loan | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate swap fixed rate | 5.75% | 5.75% | ||||||||
USD 5.65 million loan agreement, second loan | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | $ 2,000,000 | |||||||||
Interest rate swap fixed rate | 6.00% | 6.00% | 6.00% | 6.00% | ||||||
USD 5.65 million loan agreement, third loan | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate swap fixed rate | 6.27% | 6.27% | ||||||||
USD 20.2 million loan agreement | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | $ 20,200,000 | $ 20,200,000 | ||||||||
Interest rate swap fixed rate | 5.00% | 5.00% | 5.00% | |||||||
Sky Solar Japan KK (SSJ) | JPY 2,300 million loan agreements | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Number of loan agreements entered | agreement | 2 | |||||||||
Principal | ¥ 2,300,000,000 | $ 19,100,000 | ||||||||
Sky Solar Japan KK (SSJ) | JPY 2,300 million loan agreements | 6-months JPY TIBOR | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate basis | 6-month Tokyo Interbank Offered Rate ("TIBOR") | |||||||||
Adjustment to interest rate basis (as a percent) | 2.20% | 2.20% | ||||||||
Sky Solar Japan KK (SSJ) | JPY 547.2 million loan agreement | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | ¥ | ¥ 547,200,000 | |||||||||
Interest rate swap fixed rate | 3.16% | 3.16% | ||||||||
Sky Solar Japan KK (SSJ) | JPY 1,752.8 million loan agreement | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Principal | ¥ | ¥ 1,752,800,000 | |||||||||
Interest rate swap fixed rate | 3.08% | 3.08% | ||||||||
Sky Solar Japan KK (SSJ) | JPY 1,752.8 million loan agreement | 6-months JPY TIBOR | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Adjustment to interest rate basis (as a percent) | 2.20% | 2.20% | ||||||||
Sky Solar Japan KK (SSJ) | JPY 1,570 million loan agreement | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Number of loan agreements entered | agreement | 1 | |||||||||
Principal | ¥ 1,570,000,000 | ¥ 1,570,000,000 | $ 13,500,000 | |||||||
Interest rate swap fixed rate | 2.68% | 2.68% | ||||||||
Sky Solar Japan KK (SSJ) | JPY 1,570 million loan agreement | 6-months JPY TIBOR | ||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||
Interest rate basis | 6-month TIBOR | |||||||||
Adjustment to interest rate basis (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) | Jul. 15, 2016USD ($)instrumentitem$ / sharesshares | Nov. 13, 2014USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)instrumentitem$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | Aug. 19, 2013shares |
Share capital | |||||||||
Share capital | $ 8,000 | $ 8,000 | |||||||
Ordinary shares | |||||||||
Share capital | |||||||||
Par value per share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Shares authorized | shares | 500,000,000 | 500,000,000 | |||||||
Shares issued | shares | 419,546,514 | 419,546,514 | 419,546,514 | 390,026,670 | 390,026,670 | 339,196,670 | 339,196,670 | ||
Increase in number of shares issued | shares | 29,519,844 | 50,830,000 | |||||||
Share capital | $ 8,000 | $ 8,000 | $ 8,000 | $ 5,000 | $ 5,000 | ||||
Issue of equity | $ 3,000 | $ 5,000 | |||||||
Shares considered as legally issued | shares | 940,000 | 940,000 | |||||||
Acquisition of solar parks in the USA | |||||||||
Share capital | |||||||||
Number of solar parks acquired | item | 23 | 23 | |||||||
Acquisition of solar parks in the USA | Ordinary shares | |||||||||
Share capital | |||||||||
Par value per share | $ / shares | $ 0.0001 | ||||||||
Number of shares issued | instrument | 29,519,844 | 29,519,844 | |||||||
Par value of shares issued | $ 2,952 | ||||||||
Fair value of shares issued | $ 10,100,000 | $ 10,147,446 |
SHARE-BASED COMPENSATION - SHAR
SHARE-BASED COMPENSATION - SHARE OPTION SCHEME (Details) | 12 Months Ended | ||||
Dec. 31, 2010USD ($)tranche | Dec. 31, 2009shares | Dec. 31, 2018YEquityInstruments | Dec. 31, 2017EquityInstruments | Dec. 31, 2016EquityInstruments | |
Share Option Scheme | |||||
SHARE-BASED COMPENSATION | |||||
Permitted number shares to be issued | shares | 22,195,122 | ||||
Maximum awards that may granted in one year, as a percent to issued shares (as a percent ) | 1.00% | ||||
Expiry period (in years) | 10 years | ||||
Number of granted tranches of awards | tranche | 2 | ||||
Number of share options outstanding | EquityInstruments | 729,000 | 729,000 | 729,000 | ||
Vested and exercisable | EquityInstruments | 729,000 | 729,000 | 729,000 | ||
Weighted average remaining contractual life | Y | 1.05 | ||||
Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Exercise price (in dollars per share) | $ 0.6833 | ||||
Estimated fair values | 144,000 | ||||
Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Exercise price (in dollars per share) | 0.6833 | ||||
Estimated fair values | $ 1,509,000 | ||||
Vesting on first anniversary of grant date | Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 50.00% | ||||
Vesting on first anniversary of grant date | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Vesting on second anniversary of grant date | Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 50.00% | ||||
Vesting on second anniversary of grant date | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Vesting on third anniversary of grant date | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Vesting on fourth anniversary of grant date | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% |
SHARE-BASED COMPENSATION - EQUI
SHARE-BASED COMPENSATION - EQUITY INCENTIVE PLAN (Details) | Aug. 01, 2015USD ($)EquityInstruments | Jul. 01, 2015USD ($)EquityInstruments | Nov. 14, 2014USD ($)EquityInstruments | Nov. 13, 2014USD ($)EquityInstruments | Oct. 30, 2014 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
SHARE-BASED COMPENSATION | |||||||
Fair values recognized | $ (223,000) | $ 997,000 | |||||
Administrative expenses | (223,000) | 997,000 | |||||
2014 Equity Incentive Plan | |||||||
SHARE-BASED COMPENSATION | |||||||
Expiry period (in years) | 10 years | ||||||
Equity Incentive Plan 2014, Directors Tranche | |||||||
SHARE-BASED COMPENSATION | |||||||
Options granted | EquityInstruments | 330,000 | ||||||
Exercise price (in dollars per share) | $ 1 | ||||||
Equity Incentive Plan 2014, Directors Tranche | Vesting on first anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 33.33% | ||||||
Equity Incentive Plan 2014, Directors Tranche | Vesting on second anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 33.33% | ||||||
Equity Incentive Plan 2014, Directors Tranche | Vesting on third anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 33.33% | ||||||
Equity Incentive Plan 2014, Employee First Tranche | |||||||
SHARE-BASED COMPENSATION | |||||||
Restricted shares granted | EquityInstruments | 1,800,000 | ||||||
Unrecognized amounts of the unvested shares | 0 | 174,000 | |||||
Share price | $ 1.14 | ||||||
Equity Incentive Plan 2014, Employee First Tranche | Vesting immediately on IPO date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 25.00% | ||||||
Equity Incentive Plan 2014, Employee First Tranche | Vesting after IPO date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 75.00% | ||||||
Equity Incentive Plan 2014, Employee First Tranche | Vesting on first anniversary of IPO date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 25.00% | ||||||
Equity Incentive Plan 2014, Employee First Tranche | Vesting on second anniversary of IPO date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 25.00% | ||||||
Equity Incentive Plan 2014, Employee First Tranche | Vesting on third anniversary of IPO date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 25.00% | ||||||
Equity Incentive Plan 2014, Employee Second And Third Tranche | |||||||
SHARE-BASED COMPENSATION | |||||||
Unrecognized amounts of the unvested shares | $ 0 | $ 156,000 | |||||
Equity Incentive Plan 2014, Employee Second Tranche | |||||||
SHARE-BASED COMPENSATION | |||||||
Restricted shares granted | EquityInstruments | 500,000 | ||||||
Share price | $ 1.18 | ||||||
Equity Incentive Plan 2014, Employee Second Tranche | Vesting on first anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 50.00% | ||||||
Equity Incentive Plan 2014, Employee Second Tranche | Vesting on second anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 50.00% | ||||||
Equity Incentive Plan 2014, Employee Third Tranche | |||||||
SHARE-BASED COMPENSATION | |||||||
Restricted shares granted | EquityInstruments | 500,000 | ||||||
Share price | $ 1.13 | ||||||
Equity Incentive Plan 2014, Employee Third Tranche | Vesting on first anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 50.00% | ||||||
Equity Incentive Plan 2014, Employee Third Tranche | Vesting on second anniversary of grant date | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting percentage (as a percent) | 50.00% |
DISPOSAL OF SUBSIDIARIES (Detai
DISPOSAL OF SUBSIDIARIES (Details) € in Thousands, $ in Thousands, $ in Millions | Dec. 30, 2018EUR (€) | Dec. 30, 2018USD ($) | Sep. 29, 2016CAD ($)facilitydirector | Sep. 29, 2016USD ($)facilitydirector | Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($) | Jan. 31, 2017CAD ($)facilityMW | Jan. 31, 2017USD ($)facilityMW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Cash consideration received | $ (7,998) | ||||||||||
Gain(Loss) on disposal of subsidiaries | 10,082 | $ (1,288) | $ 1,875 | $ 11,768 | |||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | 174,720 | 138,402 | |||||||||
Cash and cash equivalents | 43,831 | 46,084 | 12,518 | ||||||||
Trade and other receivables | 20,535 | 34,582 | |||||||||
Net deferred tax assets | 32,382 | 23,500 | 9,581 | ||||||||
Non-current Assets | 410,497 | 442,706 | |||||||||
IPP solar parks | 353,050 | 397,405 | |||||||||
Other noncurrent assets | 1,246 | 1,411 | |||||||||
Intangible assets other than goodwill | 85 | 126 | |||||||||
Current Liabilities | (224,348) | (171,933) | |||||||||
Trade and other payables | (31,972) | (29,043) | |||||||||
Tax payable | (11,806) | (2,340) | |||||||||
Borrowing | (49,700) | (19,702) | |||||||||
Non-current Liabilities | (282,662) | (302,947) | |||||||||
Deferred tax liabilities | (3,159) | (2,784) | (330) | ||||||||
Long-term borrowing | (207,057) | (230,027) | |||||||||
Net assets (liabilities) | 1,022 | 78,207 | 106,228 | ||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | (7,998) | ||||||||||
Net assets\liabilities disposed of | (1,022) | (78,207) | (106,228) | ||||||||
Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary | (1,126) | ||||||||||
Re-evaluate fair value of residual investment | 2,188 | ||||||||||
Gain(Loss) on disposal of subsidiaries | 10,082 | (1,288) | 1,875 | 11,768 | |||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | $ (7,998) | ||||||||||
Net cash outflow arising on disposal | $ (64) | $ 41,056 | $ 4,118 | ||||||||
Solar Tech K.K. | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Cash consideration received | ¥ 900,000 | $ 8 | |||||||||
Gain(Loss) on disposal of subsidiaries | 1,686 | ||||||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | 924 | ||||||||||
Cash and cash equivalents | 628 | ||||||||||
Trade and other receivables | 213 | ||||||||||
Net deferred tax assets | 83 | ||||||||||
Non-current Assets | 4,578 | ||||||||||
IPP solar parks | 3,758 | ||||||||||
Long term deposit and others | 820 | ||||||||||
Current Liabilities | (696) | ||||||||||
Trade and other payables | (689) | ||||||||||
Tax payable | (7) | ||||||||||
Non-current Liabilities | (6,484) | ||||||||||
Long-term borrowing | (6,484) | ||||||||||
Net assets (liabilities) disposed | (1,678) | ||||||||||
Net assets (liabilities) | 1,678 | ||||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | 900,000 | 8 | |||||||||
Net assets\liabilities disposed of | (1,678) | ||||||||||
Gain(Loss) on disposal of subsidiaries | 1,686 | ||||||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | 628 | ||||||||||
Consideration received in cash and cash equivalent | ¥ 900,000 | 8 | |||||||||
Less: Cash and cash equivalent balances disposed of | 628 | ||||||||||
Net cash outflow arising on disposal | $ 620 | ||||||||||
1088526 B.C. Ltd. | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Percentage of Preferred shares sold | 25.00% | 25.00% | |||||||||
Cash consideration received | $ 10.6 | $ 7,998 | |||||||||
Number of facilities | facility | 15 | 15 | |||||||||
Gain(Loss) on disposal of subsidiaries | $ 10,000 | ||||||||||
Equity interest (as a percent) | 75.00% | 75.00% | |||||||||
Number of directors appointed by the Group | director | 2 | 2 | |||||||||
Number of total directors | director | 4 | 4 | |||||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | $ 3,882 | ||||||||||
Cash and cash equivalents | 3,260 | ||||||||||
Trade and other receivables | 397 | ||||||||||
Other current assets | 225 | ||||||||||
Non-current Assets | 13,089 | ||||||||||
IPP solar parks | 13,089 | ||||||||||
Current Liabilities | (1,036) | ||||||||||
Trade and other payables | (134) | ||||||||||
Borrowing | (902) | ||||||||||
Non-current Liabilities | (16,957) | ||||||||||
Long-term borrowing | (15,539) | ||||||||||
Swap liability | (1,418) | ||||||||||
Net assets (liabilities) disposed | (1,022) | ||||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | $ 10.6 | 7,998 | |||||||||
Gain(Loss) on disposal of subsidiaries | 10,000 | ||||||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | (3,260) | ||||||||||
Consideration received in cash and cash equivalent | $ 10.6 | 7,998 | |||||||||
Less: Cash and cash equivalent balances disposed of | (3,260) | ||||||||||
Net cash outflow arising on disposal | $ 4,738 | ||||||||||
1091187 B.C. Ltd. | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Percentage of Preferred shares sold | 25.00% | 25.00% | |||||||||
Cash consideration received | $ 4 | $ 2,979 | |||||||||
Number of facilities | facility | 6 | 6 | |||||||||
Gain(Loss) on disposal of subsidiaries | $ 1,464 | ||||||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | 295 | ||||||||||
Cash and cash equivalents | 284 | ||||||||||
Trade and other receivables | 11 | ||||||||||
Non-current Assets | 3,294 | ||||||||||
IPP solar parks | 3,253 | ||||||||||
Other noncurrent assets | 41 | ||||||||||
Current Liabilities | (143) | ||||||||||
Trade and other payables | (62) | ||||||||||
Borrowing | (81) | ||||||||||
Non-current Liabilities | (1,319) | ||||||||||
Long-term borrowing | (1,319) | ||||||||||
Net assets (liabilities) disposed | 2,127 | ||||||||||
Net assets (liabilities) | (2,127) | ||||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | $ 4 | 2,979 | |||||||||
Net assets\liabilities disposed of | 2,127 | ||||||||||
Re-evaluate fair value of residual investment | 612 | ||||||||||
Gain(Loss) on disposal of subsidiaries | 1,464 | ||||||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | (284) | ||||||||||
Consideration received in cash and cash equivalent | $ 4 | 2,979 | |||||||||
Less: Cash and cash equivalent balances disposed of | (284) | ||||||||||
Net cash outflow arising on disposal | $ 2,695 | ||||||||||
1091187 B.C. Ltd. | Ordinary shares | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Percentage of Shares Issued | 75.00% | 75.00% | |||||||||
1091187 B.C. Ltd. | Preferred Shares | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Percentage of Shares Issued | 25.00% | 25.00% | |||||||||
Companies based in Cypriot | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Cash consideration received | $ 39.7 | $ 41,915 | |||||||||
Number of facilities | 20 | 20 | |||||||||
Solar Generating Capacity | MW | 23 | 23 | |||||||||
Gain(Loss) on disposal of subsidiaries | $ 416 | ||||||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | 10,590 | ||||||||||
Cash and cash equivalents | 3,633 | ||||||||||
Trade and other receivables | 6,957 | ||||||||||
Non-current Assets | 32,827 | ||||||||||
IPP solar parks | 31,431 | ||||||||||
Other noncurrent assets | 1,396 | ||||||||||
Current Liabilities | (1,918) | ||||||||||
Trade and other payables | (1,918) | ||||||||||
Net assets (liabilities) disposed | 41,499 | ||||||||||
Net assets (liabilities) | (41,499) | ||||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | $ 39.7 | 41,915 | |||||||||
Net assets\liabilities disposed of | 41,499 | ||||||||||
Gain(Loss) on disposal of subsidiaries | 416 | ||||||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | (3,633) | ||||||||||
Consideration received in cash and cash equivalent | $ 39.7 | 41,915 | |||||||||
Less: Cash and cash equivalent balances disposed of | (3,633) | ||||||||||
Net cash outflow arising on disposal | $ 38,282 | ||||||||||
GRANSOLAR CUBIERTAS 3, S.L.U ("GSC3") and GRANSOLAR CUBIERTA 7, S.L.U ("GSC7") | |||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||
Cash consideration received | € (796) | $ (911) | |||||||||
Gain(Loss) on disposal of subsidiaries | (1,288) | ||||||||||
Net assets (liabilities) of subsidiary disposed | |||||||||||
Current Assets | 111 | ||||||||||
Cash and cash equivalents | 64 | ||||||||||
Trade and other receivables | 48 | ||||||||||
Non-current Assets | 2,418 | ||||||||||
IPP solar parks | 2,415 | ||||||||||
Intangible assets other than goodwill | 3 | ||||||||||
Current Liabilities | (127) | ||||||||||
Trade and other payables | (103) | ||||||||||
Tax payable | (14) | ||||||||||
Borrowing | (10) | ||||||||||
Non-current Liabilities | (177) | ||||||||||
Deferred tax liabilities | (177) | ||||||||||
Net assets (liabilities) | 2,225 | ||||||||||
Gain (Loss) on disposal of a subsidiary | |||||||||||
Cash consideration received | (796) | (911) | |||||||||
Cash receivable | 64 | ||||||||||
Net assets\liabilities disposed of | (2,225) | ||||||||||
Exchange difference | (38) | ||||||||||
Gain(Loss) on disposal of subsidiaries | (1,288) | ||||||||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||||||||
Consideration received in cash and cash equivalent | (64) | ||||||||||
Consideration received in cash and cash equivalent | € (796) | (911) | |||||||||
Less: Cash and cash equivalent balances disposed of | (64) | ||||||||||
Net cash outflow arising on disposal | $ (64) |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Categories of financial instruments: | |||
Financial assets | $ 137,834 | $ 138,985 | $ 140,929 |
Liabilities at amortized cost | 279,223 | 276,373 | |
Liabilities at FVTPL | 190,315 | 178,705 | |
Trade and other payables | |||
Categories of financial instruments: | |||
Liabilities at amortized cost | 22,255 | 26,644 | |
Amounts due to related parties | |||
Categories of financial instruments: | |||
Liabilities at amortized cost | 211 | ||
Borrowings | |||
Categories of financial instruments: | |||
Liabilities at amortized cost | 256,757 | 249,729 | |
Other current liabilities | |||
Categories of financial instruments: | |||
Liabilities at FVTPL | 130,323 | 120,820 | |
Other non-current liabilities | |||
Categories of financial instruments: | |||
Liabilities at FVTPL | 59,992 | 57,885 | |
Other non-current assets | |||
Categories of financial instruments: | |||
Assets at amortized cost | 8,216 | 9,634 | |
Assets at FVTPL | 5,636 | ||
Financial assets | 13,852 | 9,167 | |
Amount due from related parties | |||
Categories of financial instruments: | |||
Assets at amortized cost | 1,539 | 22,345 | |
Assets at FVTPL | 19,939 | ||
Financial assets | 21,478 | 21,912 | |
Contract Assets | |||
Categories of financial instruments: | |||
Assets at amortized cost | 731 | ||
Trade and other receivables | |||
Categories of financial instruments: | |||
Assets at amortized cost | 13,760 | 22,150 | |
Financial assets | 13,760 | 21,106 | |
Restricted cash | |||
Categories of financial instruments: | |||
Assets at amortized cost | 44,182 | 40,716 | |
Financial assets | 44,182 | 40,716 | |
Cash and cash equivalents | |||
Categories of financial instruments: | |||
Assets at amortized cost | 43,831 | $ 46,084 | |
Financial assets | $ 43,831 | $ 46,084 |
FINANCIAL INSTRUMENTS - Currenc
FINANCIAL INSTRUMENTS - Currency risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | $ 137,834 | $ 138,985 | $ 140,929 |
Financial liabilities | 469,538 | 455,078 | |
Trade and other payables | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 22,255 | 26,644 | 26,644 |
Amounts due to related parties | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 211 | 28 | |
Other financial liabilities | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 190,315 | 178,705 | |
Cash and cash equivalents | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 43,831 | 46,084 | |
Restricted cash | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 44,182 | 40,716 | |
Amount due from related parties | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 21,478 | 21,912 | |
Other non-current assets | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 13,852 | $ 9,167 | |
Currency risk | Denominated in Euro | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 12,119 | 26,792 | |
Financial liabilities | 18,124 | 22,281 | |
Currency risk | Denominated in Euro | Trade and other payables | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 3,457 | 5,129 | |
Currency risk | Denominated in Euro | Borrowings | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 14,667 | 17,152 | |
Currency risk | Denominated in Euro | Cash and cash equivalents | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 5,862 | 7,717 | |
Currency risk | Denominated in Euro | Restricted cash | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 937 | 952 | |
Currency risk | Denominated in Euro | Trade and other receivables and contract assets | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 3,787 | 8,428 | |
Currency risk | Denominated in Euro | Amount due from related parties | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 1,533 | 9,695 | |
Currency risk | Denominated in JPY | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 68,704 | 55,235 | |
Financial liabilities | 270,004 | 251,445 | |
Currency risk | Denominated in JPY | Trade and other payables | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 14,533 | 10,076 | |
Currency risk | Denominated in JPY | Borrowings | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 131,036 | 118,233 | |
Currency risk | Denominated in JPY | Other financial liabilities | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 124,435 | 123,136 | |
Currency risk | Denominated in JPY | Cash and cash equivalents | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 26,672 | 21,673 | |
Currency risk | Denominated in JPY | Restricted cash | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 30,606 | 26,537 | |
Currency risk | Denominated in JPY | Trade and other receivables and contract assets | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 4,605 | 7,025 | |
Currency risk | Denominated in JPY | Other non-current assets | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 6,821 | ||
Currency risk | Denominated in CAD | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 2,045 | 1,586 | |
Financial liabilities | 444 | 362 | |
Currency risk | Denominated in CAD | Trade and other payables | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial liabilities | 444 | 362 | |
Currency risk | Denominated in CAD | Cash and cash equivalents | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 571 | 824 | |
Currency risk | Denominated in CAD | Restricted cash | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 431 | 470 | |
Currency risk | Denominated in CAD | Trade and other receivables and contract assets | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | 1,037 | $ 292 | |
Currency risk | Denominated in CAD | Amount due from related parties | |||
Monetary assets and liabilities denominated in currencies other than the functional currency | |||
Financial assets | $ 6 |
FINANCIAL INSTRUMENTS - Foreign
FINANCIAL INSTRUMENTS - Foreign currencies (Details) - Currency risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Denominated in Euro | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
Increase (decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ (306) | $ 523 |
Denominated in CAD | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
Increase (decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ 81 | $ 142 |
Denominated in JPY | ||
Disclosure of nature and extent of risks arising from financial instruments | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
Increase (decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ (10,245) | $ (22,760) |
FINANCIAL INSTRUMENTS - Interes
FINANCIAL INSTRUMENTS - Interest rate risk (Details) - Variable rate - Interest rate risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments | ||
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% |
Increase in profit if variable interest rates had been higher by 5% | $ 293 | $ 268 |
Sensitivity analysis, assumed decrease in interest rate (as a percent) | 5.00% | 5.00% |
Decrease in profit if variable interest rates had been higher by 5% | $ (300) | $ (268) |
FINANCIAL INSTRUMENTS - Trade r
FINANCIAL INSTRUMENTS - Trade receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disclosure of major customers | |||
Financial assets | $ 137,834 | $ 138,985 | $ 140,929 |
Credit risk | |||
Disclosure of major customers | |||
Period of failure to make payments considered as indicator of no reasonable expectation of recovery | 180 days | ||
Credit risk | Electricity companies in Japan, Europe and USA | |||
Disclosure of major customers | |||
Trade receivables | $ 8,000 | ||
Percentage of total trade receivables | 78.40% | ||
Credit risk | Electricity companies in Japan, Europe, USA and Uruguay | |||
Disclosure of major customers | |||
Trade receivables | $ 5,800 | ||
Percentage of total trade receivables | 73.00% | ||
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | |||
Disclosure of major customers | |||
Financial assets | $ 223 | $ 183 | |
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | Less than 90 days | |||
Disclosure of major customers | |||
Financial assets | 1 | 1 | |
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | 90-180 days | |||
Disclosure of major customers | |||
Financial assets | 25 | 45 | |
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | 181-360 days | |||
Disclosure of major customers | |||
Financial assets | 41 | ||
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | 1-2 years | |||
Disclosure of major customers | |||
Financial assets | 132 | ||
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | 2-3 Years | |||
Disclosure of major customers | |||
Financial assets | 4 | 136 | |
Trade receivables and contract assets | Lifetime expected credit losses | Expected credit losses collectively assessed | After 3 years | |||
Disclosure of major customers | |||
Financial assets | 20 | 1 | |
Short-term deposits and debt investments | Lifetime expected credit losses | |||
Disclosure of major customers | |||
Financial assets | 1,633 | ||
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | |||
Disclosure of major customers | |||
Financial assets | 861 | ||
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | Less than 90 days | |||
Disclosure of major customers | |||
Financial assets | 16 | 41 | |
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 90-180 days | |||
Disclosure of major customers | |||
Financial assets | 63 | ||
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 181-360 days | |||
Disclosure of major customers | |||
Financial assets | 6 | 310 | |
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 1-2 years | |||
Disclosure of major customers | |||
Financial assets | 6 | 502 | |
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 2-3 Years | |||
Disclosure of major customers | |||
Financial assets | 292 | 8 | |
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | After 3 years | |||
Disclosure of major customers | |||
Financial assets | 23 | ||
Short-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses individually assessed [member] | |||
Disclosure of major customers | |||
Financial assets | 1,227 | ||
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | |||
Disclosure of major customers | |||
Financial assets | 398 | 467 | |
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 90-180 days | |||
Disclosure of major customers | |||
Financial assets | 1 | ||
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 181-360 days | |||
Disclosure of major customers | |||
Financial assets | 1 | 1 | |
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 1-2 years | |||
Disclosure of major customers | |||
Financial assets | 4 | ||
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 2-3 Years | |||
Disclosure of major customers | |||
Financial assets | 4 | 5 | |
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 3-4 years | |||
Disclosure of major customers | |||
Financial assets | 5 | 7 | |
Long-term deposits and debt investments | Lifetime expected credit losses | Expected credit losses collectively assessed | 4-5 years | |||
Disclosure of major customers | |||
Financial assets | $ 388 | $ 449 |
FINANCIAL INSTRUMENTS - Deposit
FINANCIAL INSTRUMENTS - Deposits and debt investments (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) |
Related party transactions | |||
Balance due from related parties | $ 21,478 | $ 22,345 | |
Credit risk | Related parties engaged in solar industry in China and overseas | |||
Related party transactions | |||
Number of related parties | item | 2 | ||
Balance due from related parties | $ 20,900 | $ 19,900 | |
Percentage of total due from related parties | 93.30% | 92.80% |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Detail of remaining contractual maturity for financial liabilities | ||||
Financial liabilities | $ 469,538 | $ 455,078 | ||
Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Interest rate (as a percent) | 5.02% | 4.82% | ||
Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Interest rate (as a percent) | 3.18% | 3.52% | ||
Trade and other payables, amounts due to related parties and borrowings | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 357,912 | $ 361,824 | ||
Financial liabilities | 279,223 | 276,401 | ||
Trade and other payables | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 22,255 | 26,644 | ||
Financial liabilities | 22,255 | $ 26,644 | 26,644 | |
Amounts due to related parties | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 211 | 28 | ||
Financial liabilities | 211 | 28 | ||
Borrowings | Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 163,284 | 140,189 | ||
Financial liabilities | $ 116,792 | $ 95,216 | ||
Borrowings | Variable rate | Weighted average | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Interest rate (as a percent) | 5.02% | 4.82% | ||
Borrowings | Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | $ 172,162 | $ 194,963 | ||
Financial liabilities | $ 139,965 | $ 154,513 | ||
Borrowings | Fixed rate | Weighted average | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Interest rate (as a percent) | 3.18% | 3.52% | ||
Within one year | Trade and other payables, amounts due to related parties and borrowings | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | $ 72,166 | $ 46,374 | ||
Within one year | Trade and other payables | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 22,255 | 26,644 | ||
Within one year | Amounts due to related parties | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 211 | 28 | ||
Within one year | Borrowings | Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 6,794 | 4,854 | ||
Within one year | Borrowings | Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 42,906 | 14,848 | ||
1-2 years | Trade and other payables, amounts due to related parties and borrowings | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 21,677 | 25,700 | ||
1-2 years | Borrowings | Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 11,742 | 8,173 | ||
1-2 years | Borrowings | Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 9,935 | 17,527 | ||
2-3 Years | Trade and other payables, amounts due to related parties and borrowings | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 21,677 | 23,775 | ||
2-3 Years | Borrowings | Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 11,742 | 8,164 | ||
2-3 Years | Borrowings | Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 9,935 | 15,611 | ||
After 3 years | Trade and other payables, amounts due to related parties and borrowings | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 242,392 | 265,975 | ||
After 3 years | Borrowings | Variable rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | 133,006 | 118,998 | ||
After 3 years | Borrowings | Fixed rate | ||||
Detail of remaining contractual maturity for financial liabilities | ||||
Undiscounted cash flows | $ 109,386 | $ 146,977 |
FINANCIAL INSTRUMENTS - Liqui_2
FINANCIAL INSTRUMENTS - Liquidity analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Financial liabilities | $ 469,538 | $ 455,078 | |
Other financial liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 272,742 | $ 275,224 | |
Financial liabilities | 190,315 | 178,705 | |
Other current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 130,323 | 120,820 | |
Financial liabilities | $ 130,323 | 120,820 | $ 120,820 |
Weighted average effective interest rate | 15.00% | 15.00% | |
Other non-current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | $ 142,419 | $ 154,404 | |
Financial liabilities | $ 59,992 | $ 57,885 | $ 57,885 |
Weighted average effective interest rate | 11.88% | 10.99% | |
Within one year | Other financial liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | $ 131,655 | $ 126,130 | |
Within one year | Other current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 130,323 | 120,820 | |
Within one year | Other non-current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 1,332 | 5,310 | |
1-2 years | Other financial liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 8,497 | 8,420 | |
1-2 years | Other non-current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 8,497 | 8,420 | |
2-3 Years | Other financial liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 8,477 | 8,440 | |
2-3 Years | Other non-current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 8,477 | 8,440 | |
After 3 years | Other financial liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | 124,113 | 132,234 | |
After 3 years | Other non-current liabilities | |||
Disclosure of maturity analysis for derivative financial liabilities [line items] | |||
Undiscounted cash flows | $ 124,113 | $ 132,234 |
FINANCIAL INSTRUMENTS - Fair va
FINANCIAL INSTRUMENTS - Fair value measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Transfers from Level 1 into Level 2 | $ 0 | $ 0 | $ 0 |
Transfers from Level 2 into Level 1 | $ 0 | $ 0 | $ 0 |
Discounted cash flow | Silent partnership agreements with third party investors | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Discount rate | 6.00% | 6.00% | |
Discounted cash flow | JAML silent partnership agreement | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Discount rate | 6.00% | ||
Discounted cash flow | Hudson agreement | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | $ 65,870 | $ 55,426 | |
Discount rate | 12.00% | 10.80% | |
Other current liabilities | Discounted cash flow | Silent partnership agreements with third party investors | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | $ 121,940 | ||
Other current liabilities | Discounted cash flow | Hudson agreement | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | $ 8,383 | ||
Other non-current liabilities | Discounted cash flow | Silent partnership agreements with third party investors | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | 120,820 | ||
Other non-current liabilities | Discounted cash flow | JAML silent partnership agreement | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | $ 1,378 | $ 1,253 | |
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% | |
Decrease in carrying amount of liabilities due to increase in discount rate | $ (31) | $ (32) | |
Sensitivity analysis, estimated increase in electricity income | 5.00% | 5.00% | |
Increase in carrying amount of liabilities due to increase in electricity income | $ 63 | $ 63 | |
Other non-current liabilities | Discounted cash flow | Hudson agreement | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | $ 57,487 | ||
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% | |
Decrease in carrying amount of liabilities due to increase in discount rate | $ (1,973) | $ (510) | |
Other non-current liabilities | Discounted cash flow | JPY 2,300 million and 1,570 million loan agreements | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | 1,117 | 1,064 | |
Other non-current liabilities | Discounted cash flow | USD 5.65 million and 20.2 million loan agreements | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | 10 | $ 64 | |
Interest rate swap | Discounted cash flow | USD 5.65 million and 20.2 million loan agreements | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial liabilities, at fair value | 224 | ||
Amounts due from related parties-current | Discounted cash flow | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial assets at fair value | 14,889 | ||
Amounts due from related parties-non-current | Income approach | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial assets at fair value | $ 5,050 | ||
Discount rate | 3.00% | ||
Amounts due from related parties-non-current | Discounted cash flow | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | ||
Decrease in carrying amount of liabilities due to increase in discount rate | $ 57 | ||
Sensitivity analysis, estimated increase in electricity income | 5.00% | ||
Increase in carrying amount of liabilities due to increase in electricity income | $ 180 | ||
Other non-current assets | Income approach | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Financial assets at fair value | $ 5,412 | ||
Discount rate | 17.52% |
DETAILS OF PRINCIPAL SUBSIDIA_2
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP (Details) | Dec. 31, 2018BGN (лв)subsidiary | Dec. 31, 2017BGN (лв)subsidiary | Dec. 31, 2018HKD ($)subsidiary | Dec. 31, 2018CAD ($)subsidiary | Dec. 31, 2018EUR (€)subsidiary | Dec. 31, 2018JPY (¥)subsidiary | Dec. 31, 2018USD ($)subsidiary | Dec. 31, 2017HKD ($)subsidiary | Dec. 31, 2017CAD ($)subsidiary | Dec. 31, 2017EUR (€)subsidiary | Dec. 31, 2017JPY (¥)subsidiary | Dec. 31, 2017USD ($)subsidiary |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | $ | $ 8,000 | $ 8,000 | ||||||||||
Sky Solar Bulgaria Co EOOD | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | лв | лв 2,364,800 | лв 2,364,800 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Number of subsidiaries held by subsidiary | subsidiary | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 |
Sky Clean Energy Ltd. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | $ | $ 100,000 | $ 100,000 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Number of subsidiaries held by subsidiary | subsidiary | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 |
Moktap Holdings Ltd. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | € 1,800 | € 1,800 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Development Renewable Energy Resources S.A. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | 1,260,000 | 1,260,000 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky International Enterprise Group Ltd. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | $ | $ 10,000 | $ 10,000 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Solar Japan KK (SSJ) | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | ¥ | ¥ 89,100,000 | ¥ 89,100,000 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Solar Energy S.a.r.l. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | 12,500 | 12,500 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Capital Europe S.a.r.l. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | 12,500 | 12,500 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Energy Capital Investment S.a.r.l. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | 12,500 | 12,500 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Energy Capital Investment II | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | 12,500 | 12,500 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Solar Iberica S.L. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | € 1,200,000 | € 1,200,000 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | ||||||||||
Sky Capital America Inc. | ||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | ||||||||||||
Share capital | $ | $ 1 | $ 1 | ||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% |
OPERATING LEASES - The Group as
OPERATING LEASES - The Group as lessee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
The Group as lessee | |||
Minimum lease payments paid under operating leases | $ 2,957 | $ 4,283 | $ 4,040 |
Future minimum lease payments | 47,779 | 64,280 | 98,794 |
Within one year | |||
The Group as lessee | |||
Future minimum lease payments | 3,240 | 4,420 | 4,468 |
In the second to fifth years inclusive | |||
The Group as lessee | |||
Future minimum lease payments | 12,044 | 15,266 | 15,154 |
More than five years | |||
The Group as lessee | |||
Future minimum lease payments | $ 32,495 | $ 44,594 | $ 79,172 |
Minimum | |||
The Group as lessee | |||
Lease term | 5 years | ||
Maximum | |||
The Group as lessee | |||
Lease term | 20 years |
OPERATING LEASES - The Group _2
OPERATING LEASES - The Group as lessor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
The Group as lessor | |||
Lease term | 20 years | ||
Non-cancellable operating lease receivables | $ 3,638 | $ 4,313 | $ 3,563 |
Within one year | |||
The Group as lessor | |||
Non-cancellable operating lease receivables | 224 | 195 | 196 |
In the second to fifth years inclusive | |||
The Group as lessor | |||
Non-cancellable operating lease receivables | 896 | 780 | 782 |
More than five years | |||
The Group as lessor | |||
Non-cancellable operating lease receivables | $ 2,518 | $ 3,338 | $ 2,585 |
CAPITAL COMMITMENT (Details)
CAPITAL COMMITMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
CAPITAL COMMITMENT | |||
Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements | $ 30,872 | $ 34,279 | $ 90,430 |
RETIREMENT BENEFIT SCHEMES (Det
RETIREMENT BENEFIT SCHEMES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RETIREMENT BENEFIT SCHEMES | |||
Contributions payable, charged to profit or loss for retirement benefit schemes | $ 1,303 | $ 627 | $ 816 |
Contributions payable to the plan, as of the balance sheet date | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Sa
RELATED PARTY TRANSACTIONS - Sales to related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related party transactions | |||
Related parties | $ 324 | $ 286 | $ 788 |
1088526 B.C. Ltd. | |||
Related party transactions | |||
Related parties | 7 | ||
RisenSky Solar and its subsidiaries | |||
Related party transactions | |||
Related parties | 278 | 277 | 254 |
1091187 B.C. Ltd. | |||
Related party transactions | |||
Related parties | 30 | ||
Oky Solar Holdings, Ltd. . and its subsidiaries | |||
Related party transactions | |||
Related parties | 525 | ||
Sky Global Solar S.A. | |||
Related party transactions | |||
Related parties | $ 9 | $ 9 | $ 9 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Compensation of key management personnel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS | |||
Short-term benefits | $ 2,411 | $ 2,049 | $ 1,630 |
Retirement benefit scheme contributions | 142 | 149 | 99 |
Share-based payment expense | 112 | 646 | |
Remuneration of directors and other members of key management | $ 2,553 | $ 2,310 | $ 2,375 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Interest charged by the related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions | |||
Interest charged by the related parties | $ 292 | ||
Sky Solar (Hong Kong) International Co., Ltd. | |||
Related party transactions | |||
Interest rate (as a percent) | 12.00% | 12.00% | 12.00% |
Interest charged by the related parties | $ 292 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other (Details) - Mr. Su Weili $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2013HKD ($) | Dec. 31, 2013USD ($) | |
Related party transactions | ||||
Annual license fee on usage of trademarks | $ 10 | $ 1,300 | ||
Percentage of annual license fee on gross revenue | 0.05% | 0.05% | ||
Accrued expense for using trademark | $ 32 | $ 28 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 |
Sky Development Renewable Energy Resources S.A. | |||
SUBSEQUENT EVENTS | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | |
Mr. Su Weili | |||
SUBSEQUENT EVENTS | |||
Amount due to related parties | $ 14,900,000 | ||
Mr. Su Weili | Stock purchase agreement | |||
SUBSEQUENT EVENTS | |||
Amount due to related parties | $ 14.9 |