Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-41796 |
Entity Registrant Name | NATURE WOOD GROUP LIMITED |
Entity Central Index Key | 0001948294 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | Avenida da Amizade no. 1287 |
Entity Address, Address Line Two | Chong Fok Centro Comercial |
Entity Address, City or Town | Macau S.A.R. |
Entity Address, Postal Zip Code | 13 E |
Title of 12(b) Security | American depositary shares, each representing eight ordinary shares, par value $0.001 per share |
Trading Symbol | NWGL |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Bankruptcy Proceedings, Reporting Current | false |
Entity Common Stock, Shares Outstanding | 132,425,321 |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Auditor Firm ID | 1171 |
Auditor Name | WWC, P.C. |
Auditor Location | San Mateo, California |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Avenida da Amizade no. 1287 |
Entity Address, Address Line Two | Chong Fok Centro Comercial |
Entity Address, City or Town | Macau S.A.R. |
Entity Address, Postal Zip Code | 13 E |
City Area Code | 853 |
Local Phone Number | 2855-3594 |
Contact Personnel Name | Jianjun Zeng |
Contact Personnel Email Address | johnny@nature-wood.com |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Non-current assets | ||
Property, plant and equipment, net | $ 3,562,021 | $ 8,570,748 |
Right-of-use assets, net | 189,009 | 157,068 |
Intangible assets, net | 20,516,939 | 19,305,457 |
Prepayments | 300,000 | 1,110,595 |
Total non-current assets | 24,567,969 | 29,143,868 |
Current assets | ||
Inventories | 8,538,813 | 13,127,730 |
Prepayments | 8,820,834 | 11,153,330 |
Trade and other receivables, net | 7,283,719 | 8,552,732 |
Prepaid income tax | 501,981 | 383,099 |
Restricted bank deposits | 628,156 | 603,341 |
Cash and bank balances | 3,979,416 | 5,082,587 |
Total current assets | 29,752,919 | 38,902,819 |
Total assets | 54,320,888 | 68,046,687 |
Current liabilities | ||
Trade and other payables | (4,338,192) | (7,732,211) |
Contract liabilities | (775,183) | (815,455) |
Bank borrowings | (12,285,470) | (12,000,062) |
Other borrowings | (664,479) | |
Amounts due to an ultimate beneficial shareholder | (5,021,638) | (4,531,760) |
Lease liabilities | (64,296) | (107,945) |
Convertible bonds | (12,210,327) | |
Income tax payable | (21,560) | (167,653) |
Total current liabilities | (23,170,818) | (37,565,413) |
Net current assets | 6,582,101 | 1,337,406 |
Non-current liabilities | ||
Bank borrowings | (533,760) | (836,532) |
Amounts due to an ultimate beneficial shareholder | (12,300,650) | (17,087,553) |
Lease liabilities | (133,972) | (65,513) |
Total non-current liabilities | (12,968,382) | (17,989,598) |
Total liabilities | (36,139,200) | (55,555,011) |
Capital and reserves | ||
Share capital | (132,425) | (105,263) |
Capital reserves | (30,052,790) | (12,891,887) |
Accumulated comprehensive losses | 12,003,527 | 505,474 |
Total equity | (18,181,688) | (12,491,676) |
Total liabilities and equity | $ (54,320,888) | $ (68,046,687) |
Consolidated Statement of Profi
Consolidated Statement of Profit or Loss and Other Comprehensive Income - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | ||||
Revenue | $ 25,456,775 | $ 55,339,277 | $ 47,684,127 | |
Cost of revenue | (23,071,638) | (35,423,411) | (31,272,086) | |
Gross profit | 2,385,137 | 19,915,866 | 16,412,041 | |
Net foreign exchange gains (losses) | 166,849 | (958,564) | (1,515,866) | |
Other income, net | 1,113,651 | 1,823,162 | 1,625,523 | |
Impairment loss recognized on property, plant and equipment | (4,244,688) | |||
Selling and distribution expenses | (4,551,860) | (8,632,192) | (9,342,690) | |
Administrative expenses | (5,263,450) | (5,020,733) | (3,347,182) | |
Finance income | 23,239 | 11,573 | 892 | |
Finance costs | (1,605,060) | (1,928,292) | (1,872,175) | |
(Loss) profit before income tax | (11,976,182) | 5,210,820 | 1,960,543 | |
Income tax credits (expenses) | 42,854 | (431,925) | (628,253) | |
(Loss) profit for the year | (11,933,328) | 4,778,895 | 1,332,290 | |
Other comprehensive income (loss): | ||||
Exchange difference arising from translation of foreign operations | 435,275 | (314,831) | (174,231) | |
Other comprehensive income (loss) | 435,275 | (314,831) | (174,231) | |
Total comprehensive (loss) income for the year | $ (11,498,053) | $ 4,464,064 | $ 1,158,059 | |
(LOSS) EARNINGS PER SHARE BASIC | [1],[2] | $ (0.11) | $ 0.05 | $ 0.01 |
(LOSS) EARNINGS PER SHARE DILUTED | [1],[2] | $ (0.11) | $ 0.05 | $ 0.01 |
Weighted average number of ordinary shares used in computing basic (loss) earnings per ADS | [1],[2] | 111,911,839 | 105,263,000 | 105,263,000 |
Weighted average number of ordinary shares used in computing diluted (loss) earnings per ADS | [1],[2] | 111,911,839 | 105,263,000 | 105,263,000 |
American Depositary Shares [Member] | ||||
Other comprehensive income (loss): | ||||
(LOSS) EARNINGS PER SHARE BASIC | [1],[2] | $ (0.85) | ||
(LOSS) EARNINGS PER SHARE DILUTED | [1],[2] | $ (0.85) | ||
Weighted average number of ordinary shares used in computing basic (loss) earnings per ADS | [1],[2] | 111,911,839 | 105,263,000 | 105,263,000 |
Weighted average number of ordinary shares used in computing diluted (loss) earnings per ADS | [1],[2] | 111,911,839 | 105,263,000 | 105,263,000 |
[1]Each ADS represents eight ordinary shares.[2]Since there is antidilutive effect on dilutive (loss) earnings per share/ADS, basic and dilutive (loss) earnings per share/ADS should remain the same. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) | Issued capital [member] | Share premium [member] | Statutory reserve [member] | Other reserves [member] | Capital reserve [member] | Accumulated other comprehensive income [member] | Retained earnings [member] | Net Accumulated Comprehensive Losses [Member] | Total |
Balance at Dec. 31, 2020 | $ 105,263 | $ 12,834,431 | $ 1,860 | $ 55,596 | $ 12,891,887 | $ (374,607) | $ (5,752,990) | $ (6,127,597) | $ 6,869,553 |
IfrsStatementLineItems [Line Items] | |||||||||
Exchange difference arising from translation of foreign operations | (174,231) | (174,231) | (174,231) | ||||||
Profit (Loss) for the year | 1,332,290 | 1,332,290 | 1,332,290 | ||||||
Balance at Dec. 31, 2021 | 105,263 | 12,834,431 | 1,860 | 55,596 | 12,891,887 | (548,838) | (4,420,700) | (4,969,538) | 8,027,612 |
IfrsStatementLineItems [Line Items] | |||||||||
Exchange difference arising from translation of foreign operations | (314,831) | (314,831) | (314,831) | ||||||
Profit (Loss) for the year | 4,778,895 | 4,778,895 | 4,778,895 | ||||||
Balance at Dec. 31, 2022 | 105,263 | 12,834,431 | 1,860 | 55,596 | 12,891,887 | (863,669) | 358,195 | (505,474) | 12,491,676 |
IfrsStatementLineItems [Line Items] | |||||||||
Exchange difference arising from translation of foreign operations | 435,275 | 435,275 | 435,275 | ||||||
Profit (Loss) for the year | (11,933,328) | (11,933,328) | (11,933,328) | ||||||
Issue of new shares | 27,162 | 17,160,903 | 17,160,903 | 17,188,065 | |||||
Balance at Dec. 31, 2023 | $ 132,425 | $ 29,995,334 | $ 1,860 | $ 55,596 | $ 30,052,790 | $ (428,394) | $ (11,575,133) | $ (12,003,527) | $ 18,181,688 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
(Loss) profit before income tax | $ (11,976,182) | $ 5,210,820 | $ 1,960,543 |
Adjustments for: | |||
Expected credit losses recognized on trade receivables | 253,459 | 73,537 | 96,891 |
Write-down of inventories | 1,933,391 | ||
Impairment loss recognized on property, plant and equipment | 4,244,688 | ||
Depreciation of property, plant and equipment | 863,287 | 707,747 | 509,177 |
Depreciation of right-of-use asset | 99,360 | 105,479 | 86,769 |
Amortization of intangible assets | 950,624 | 904,315 | 834,575 |
Gain on lease modification | (703) | ||
(Profit) loss on disposal of property, plant and equipment | (3,669) | (8,423) | 50,116 |
Interest expenses | 1,498,152 | 1,808,990 | 1,737,321 |
Interest income | (23,239) | (11,573) | (892) |
Operating cash flows before movements in working capital | (2,160,832) | 8,790,892 | 5,274,500 |
Decrease (increase) in inventories | 2,655,526 | (2,176,217) | (1,007,539) |
Decrease (increase) in prepayments, trade and other receivables | 3,054,403 | (360,436) | (1,672,117) |
(Decrease) increase in trade and other payables | (3,508,602) | 929,767 | 100,300 |
(Decrease) increase in contract liabilities | (40,272) | (608,006) | 732,146 |
Cash generated from operations | 223 | 6,576,000 | 3,427,290 |
Income tax paid | (239,451) | (704,838) | (175,791) |
Net cash (used in) generated from operating activities | (239,228) | 5,871,162 | 3,251,499 |
Investing activities | |||
Interest received | 23,239 | 11,573 | 892 |
Purchases of property, plant, and equipment | (116,404) | (1,202,289) | (2,533,241) |
Proceeds from sales of property, plant and equipment | 22,542 | 38,185 | 1,477 |
Purchases of intangible assets | (1,057,831) | (314,168) | (6,336) |
(Increase) decrease in restricted bank deposits | (24,815) | 37,687 | 55,103 |
Net cash used in investing activities | (1,153,269) | (1,429,012) | (2,482,105) |
Financing activities | |||
Advances from an ultimate beneficial shareholder | 2,579,641 | 9,767,902 | 5,400,896 |
Repayments to an ultimate beneficial shareholder | (6,872,847) | (7,528,710) | (6,499,827) |
Proceeds from bank borrowings | 30,492,404 | 22,477,387 | 24,977,364 |
Repayments of bank borrowings | (30,637,447) | (25,346,613) | (21,668,049) |
Proceeds from other borrowings | 663,211 | ||
Repayments of lease liabilities | (105,956) | (105,957) | (77,889) |
Proceeds from issue of shares, net of expenses | 5,092,321 | ||
Interest paid | (1,498,152) | (1,808,990) | (1,737,321) |
Net cash (used in) generated from financing activities | (286,825) | (2,544,981) | 395,174 |
Net (decrease) increase in cash and cash equivalents | (1,679,322) | 1,897,169 | 1,164,568 |
Cash and bank balances at beginning of year | 5,082,587 | 3,545,458 | 3,554,117 |
Effect of foreign exchange rate changes | 576,151 | (360,040) | (1,173,227) |
Cash and bank balances at end of year | $ 3,979,416 | $ 5,082,587 | $ 3,545,458 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization And Principal Activities | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1 ORGANIZATION AND PRINCIPAL ACTIVITIES Organization and reorganization Nature Wood Group Limited (the “Company” or the “Group”) was incorporated in the British Virgin Islands on September 22, 2011. The registered office of the Company is Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands. The principal place of business of the Company is Avenida da Amizade n.o1287, Chong Fok Centro Comercial, 13 E Macau S.A.R. The Group’s principal subsidiaries, as of the date of this report, are set out below: SCHEDULE OF PRINCIPAL SUBSIDIARIES Percentage of effective ownership Name Date of December 31, 2023 December 31, 2022 Place of incorporation Principal % % Swift Top Capital Resources Limited November 20, 2012 100 100 Hong Kong Trading of logs Parquet Nature (France) S.A.R.L. August 21, 2012 100 100 France Trading of logs Choi Chon Investment Company Limited March 12,2015 100 100 Macau Trading of wood products South American Wood S.A.C. December 16, 2019 100 100 Peru Trading of wood products Grupo Maderero Amaz S.A.C. July 27, 2016 100 100 Peru Trading of wood products E&T Forestal S.A.C. May 2,2014 100 100 Peru Manufacturing of wood products and holding of concession rights Maderera Industrial Isabelita S.A.C. February 22, 2002 100 100 Peru Trading of wood products and holding of concession rights Nuevo San Martin S.A.C. June 5, 2002 100 100 Peru Manufacturing and trading of wood products and holding of concession rights Sepahua Tropical Forest S.A.C. June 5, 2002 100 100 Peru Holding of concession rights Latinoamerican Forest S.A.C. March 31, 2022 100 100 Peru Trading of wood products Principal activities The Company is an investment holding company. The principal activities of the Company are conducted through its subsidiaries which are in the business of selling logs, sales of wood products from extraction, and processing of logs. The Company is headquartered in Macau and conducts its primary operations through its significant direct and indirectly held subsidiaries that are incorporated and domiciled in Peru, namely E&T Forestal S.A.C., Nuevo San Martin S.A.C., Sepahua Tropical Forest S.A.C., Maderera Industrial Isabelita S.A.C., Latinoamerican Forest S.A.C., South American Wood S.A.C. and Grupo Maderero Amaz S.A.C., and in France namely Parquet Nature (France) S.A.R.L., and in Macau and Hong Kong namely Choi Chon Investment Company Limited and Swift Top Capital Resources Limited respectively. |
SUMMARY OF MATERIAL ACCOUNTING
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Material Accounting Policy Information | |
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION | 2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION BASIS OF ACCOUNTING - The consolidated financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and in accordance with International Financial Reporting Standards (or “IFRSs”) as issued by the International Accounting Standards Board (the “IASB”). Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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 Share-based Payment Leases Inventories Impairment of Assets 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. ADOPTION OF NEW AND REVISED STANDARDS IFRSs issued by the International Accounting Standards Board (“IASB”) that are mandatorily effective for an accounting period that begins on or after January 1, 2023: ● Amendments to IAS 8, Definition of accounting estimates ● Amendments to IAS 1 and IFRS Practice Statement 2 , Disclosure of accounting policies ● Amendments to IAS12, Deferred Tax related to Assets and Liabilities arising from a Single Transaction At the date of authorization of these consolidated financial statements, the management determined that the adoption of the above/other IFRSs and amendments to IFRS have not had any material impact on the consolidated financial statements of the Group in the period of their initial adoption. NEW AND REVISED IFRS STANDARDS IN ISSUE BUT NOT YET EFFECTIVE - At the date of authorization of these consolidated financial statements, the Group has not adopted the new and revised IFRSs and amendments to IFRS that have been issued but are not yet effective to them. The Company do not anticipate that the adoption of these new and revised IFRS (I) pronouncements in future periods will have a material impact on the Group’s and the Company’s consolidated financial statements in the period of their initial adoption. The preparation of these consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the consolidated financial statements are disclosed in Note 3. BASIS OF CONSOLIDATION The Group consolidates the accounts of its subsidiaries and eliminates all significant intercompany balances and transactions in its consolidated financial statements. Subsidiary corporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases. In preparing the consolidated financial statements, transactions, balances, and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted by the Group. Acquisition of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the consolidated financial statements of the Company are a continuation of the acquired entities and is accounted for as follows: (i) The results of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented in the consolidated financial statements; (ii) The Company will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments are made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would otherwise be done under the acquisition method; and (iii) No new goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill relating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected within equity as merger reserve or deficit. FINANCIAL ASSETS (a) Classification and measurement The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At subsequent measurement - Debt instrument - Debt instruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment The Group recognizes a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless when there has a significant increase in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increase in the likelihood or risk of a default occurring since initial recognition. Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organizations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s operations. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor; ● existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● an actual or expected significant deterioration in the operating results of the debtor; ● significant increases in credit risk on other financial instruments of the same debtor; ● an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. Financial liabilities and equity instruments 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 substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 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 a Group are recognized at the proceeds received, net of direct issue costs. Financial liabilities Except for derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently measured at amortized cost using the effective interest method. Convertible bonds Convertible bonds that can be converted to equity share capital at the option of the holder, where the number of shares that would be issued on conversion and the value of the consideration that would be received at that time do not vary, are accounted for as compound financial instruments which contain a liability component, a derivative component, and an equity component. Convertible bonds issued by the Group that contain both financial liability and equity components are classified separately into respective liability, derivative and equity components on initial recognition. On initial recognition, the fair value of the liability component is determined using the prevailing market interest rate for similar non-convertible debts. The difference between the proceeds of the issue of the convertible bonds and the fair value assigned to the liability component, representing the call option for conversion of the convertible bonds into equity, is included in equity as convertible bonds reserve. The liability component is subsequently carried at amortized cost using the effective interest method. The equity component will remain in equity until conversion or redemption of the bond. When the convertible bond is converted, the equity component of convertible bond and the carrying value of the liability component at the time of conversion are transferred to share capital and share premium as consideration for the shares issued. If the bond is redeemed, the convertible bonds reserve is released directly to retained profits. 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 amortized cost of a financial liability. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Offsetting financial instruments Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. SHARE-BASED PAYMENTS Equity-settled share-based payment transactions Share options granted to employees Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value of the equity-settled share-based payments determined at the grant date without taking into consideration all non- market vesting conditions is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity (share-based payments reserve). At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest based on assessment of all relevant non-market vesting conditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based payments reserve. For shares/share options that vest immediately at the date of grant, the fair value of the shares/share options granted is expensed immediately to profit or loss. When share options are exercised, the amount previously recognized in share-based payments reserve will be transferred to 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 in share-based payments reserve will continue to be held in share-based payments reserve/will be transferred to retained earnings. When shares granted are vested, the amount previously recognized in share-based payments reserve will be transferred to share capital and share premium. PROPERTY, PLANT AND EQUIPMENT (a) Measurement (i) Property, plant and equipment Property , plant (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation on other items of property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed; SCHEDULE OF ESTIMATED USEFUL LIVES Properties 20 Machineries 10 Motor vehicles 5 Furniture and fittings 4 5 Office equipment 4 5 Leasehold Improvements 5 No The residual values estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when all of the activities necessary to prepare the assets for their intended use are substantially complete. No depreciation is provided in respect of construction in progress. (c) Subsequent expenditure Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. (d) Disposal On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss within “Other losses - net”. INTANGIBLE ASSETS Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Timber concessions and cutting rights are amortized on a straight-line basis, over the terms of license of respective timber concessions and cutting rights. Other intangible assets are initially recognized at cost less accumulated amortization and accumulated impairment losses. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains and losses from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the assets, are recognized in profit or loss when the asset is derecognized. IMPAIRMENT OF NON-FINANCIAL ASSETS For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognized in profit or loss. INVENTORIES Inventories of manufactured products, logs, timbers, and other raw materials are valued at the lower of weighted average cost and net realizable value. Processing materials and supplies are valued at the lower of weighted average cost and replacement cost. LEASES When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. ● Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right- of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. ● Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: - Fixed payment (including in-substance fixed payments), less any lease incentives receivables; - Variable lease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date; - Amount expected to be payable under residual value guarantees; - The exercise price of a purchase option if is reasonably certain to exercise the option; and - Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For contracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component for property leases and account these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: - There is a change in future lease payments arising from changes in an index or rate; - There is a change in the Group’s assessment of whether it will exercise an extension option; or - There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. ● Short-term and low-value leases The Group has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. ● Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. EMPLOYEE BENEFITS (a) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. (b) Employee leave entitlement Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. PROVISIONS 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. Where 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 some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the 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. REVENUE RECOGNITION ● Step 1: Identify the contract(s) with a client ● 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 Company satisfies a performance obligation The Company recognizes revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying the particular performance obligations is transferred to clients. A performance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially the same. Control is transferred overtime and revenue is recognized overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: ● the client simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs; ● the Company’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or ● the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Otherwise, revenue is recognized at a point in time when the customer obtains control of the distinct service. Advance payments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for service prior to, or after it satisfies the performance obligation under a service agreement. Income from sales of logs and manufactured wood products Revenue from logs and wood products is recognized at a point in time when the goods are delivered and transferred to customers, being at the point that the customer obtains the control of the goods (for export sales, it would be under the shipping terms of either Freight On Board (“FOB”) or Cost, insurance, and freight (“CIF”); for local sales, it would be recognized upon delivery is made to customer’s designated receiving location) and the Group has presented right of payment and collection of the consideration is probable. The Group receives certain portion of the contract value as deposits from customers or receipts in advance from customers when they sign the sale and purchase agreement. Deposits received on logs and wood products prior to the date of revenue recognition are recorded as contract liabilities under current liabilities. The management of the Group considers that there are no sales return and warranty policies for our international business. GOVERNMENT GRANTS AND SUBSIDIES Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Grants related to assets are presented as deferred income under trade and other payables. SHARE CAPITAL - Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the capital reserves account. INCOME TAX Deferred income tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. A deferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income tax is measured: (i) at the tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale. Current and deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition. The Group accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized. FOREIGN CURRENCY TRANSACTIONS (a) Functional and presentation currency Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements are presented in US Dollar (“USD”), Hong Kong Dollar (“HKD”), China Yuan (“CNY”), Euro (“EUR”), Peruvian Sol (“PEN”) which is the functional currency of the Group and the Company. The value of foreign currencies including, may fluctuate against the USD. Any significant variations of the aforementioned currencies relative to the USD may materially affect the Company’s financial condition in terms of reporting in USD. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATE December 31, 2023 2022 202 1 HKD to USD Year End 0.128 0.128 0.128 HKD to USD Average Rate 0.128 0.128 0.129 CNY to USD Year End 0.141 0.144 0.157 CNY to USD Average Rate 0.141 0.148 0.155 EUR to USD Year End 1.110 1.066 1.132 EUR to USD Average Rate 1.099 1.052 1.182 PEN to USD Year End 0.270 0.262 0.251 PEN to USD Average Rate 0.268 0.261 0.256 (b) Transactions and balances Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than |
CRITICAL ACCOUNTING JUDGEMENTS
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 12 Months Ended |
Dec. 31, 2023 | |
Critical Accounting Judgements And Key Sources Of Estimation Uncertainty | |
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY | 3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group’s accounting policies, which are described in Note 2 to the consolidated financial statements, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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. Critical judgements in applying the Group’s accounting policies There are no critical judgements, apart from those involving estimation (see below) that the management has made in the process of applying the Group’s accounting policy and that has the most significant effect on the amounts recognized in the consolidated financial statements. Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed below: Impairment of property, plant and equipment (Note 4) and intangible assets (Note 6) Determining an appropriate amount of an impairment requires an estimation of recoverable amounts of relevant property, plant and equipment and intangible assets or the respective cash-generating units (“CGU”) to which the property, plant and equipment and intangible assets belong, which is the higher of value in use and fair value less cost of disposal. If there is any indication that an asset may be impaired, the recoverable amount shall be estimated for individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of the CGU to which the asset belongs. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the relevant assets or the CGU and a suitable discount rate in order to calculate the present value. The discount rate represents rate that reflects current market assessments of time value of money and the risks specific to the asset or the CGU for which the future cash flow estimates have not been adjusted. Where the actual future cash flows are less than expected or there is a downward revision of future estimated cash flows due to unfavourable changes in facts and circumstances, an additional impairment loss may arise. Write-down of inventories (Note 7) The Company performs regular reviews of the carrying amounts of inventories with reference to aged inventories analysis, projections of expected future saleability of goods and, management experience and judgement. Based on this review, a write-down of inventories will be made when the estimated net realizable value of inventories decline below their carrying amounts. Due to changes in market environment, actual saleability of goods may be different from estimation and the consolidated statement of profit or loss in future accounting periods could be affected by differences in their estimation. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property Plant And Equipment Net | |
PROPERTY, PLANT AND EQUIPMENT, NET | 4 PROPERTY, PLANT AND EQUIPMENT, NET SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Freehold land Properties Leasehold Improvements Construction in progress Machineries Furniture and fittings Motor vehicles Office equipment Total USD USD USD USD USD USD USD USD USD Cost: At January 1, 2022 1,546,665 1,837,409 26,908 1,314,140 4,021,535 68,393 764,190 24,249 9,603,489 Additions - - - 80,216 92,586 2,475 1,017,530 9,482 1,202,289 Transfer - 1,340,556 - (1,340,556 ) 394,626 (26,966 ) (394,626 ) 26,966 - Disposals - - - - (1,300 ) - (76,922 ) (1,648 ) (79,870 ) Exchange difference - - (2,275 ) - (82 ) (1,857 ) (7,576 ) (211 ) (12,001 ) At December 31, 2022 and January 1, 2023 1,546,665 3,177,965 24,633 53,800 4,507,365 42,045 1,302,596 58,838 10,713,907 Additions - 36,109 - 64,416 10,574 1,392 - 3,913 116,404 Transfer - 118,216 - (118,216 ) - - - - - Disposals - - - - (1,401 ) - (88,652 ) (184 ) (90,237 ) Exchange difference - - (410 ) - 107 - 6,913 593 7,203 At December 31, 2023 1,546,665 3,332,290 24,223 - 4,516,645 43,437 1,220,857 63,160 10,747,277 Accumulated depreciation: At January 1, 2022 - (266,484 ) (9,666 ) - (830,772 ) (29,346 ) (337,940 ) (18,526 ) (1,492,734 ) Charge for the year - (96,261 ) (6,522 ) - (553,706 ) (5,100 ) (36,838 ) (9,320 ) (707,747 ) Transfer - - - - - 17,619 - (17,619 ) - Eliminated upon disposals - - - - 162 - 48,309 1,637 50,108 Exchange difference - - 1,011 - 64 1,245 4,792 102 7,214 At December 31, 2022 and January 1, 2023 - (362,745 ) (15,177 ) - (1,384,252 ) (15,582 ) (321,677 ) (43,726 ) (2,143,159 ) Charge for the year - (156,404 ) (6,206 ) - (450,707 ) (5,071 ) (237,309 ) (7,590 ) (863,287 ) Eliminated upon disposals - - - - 756 - 70,608 - 71,364 Exchange difference - - 236 - (2,299 ) - (2,984 ) (439 ) (5,486 ) At December 31, 2023 - (519,149 ) (21,147 ) - (1,836,502 ) (20,653 ) (491,362 ) (51,755 ) (2,940,568 ) Accumulated impairment: At January 1, 2022 - - - - - - - - - Beginning balance - - - - - - - - - Charge for the year - - - - - - - - - At December 31, 2022 and January 1, 2023 - - - - - - - - - Charge for the year - (2,575,694 ) - - (1,668,994 ) - - - (4,244,688 ) At December 31, 2023 - (2,575,694 ) - - (1,668,994 ) - - - (4,244,688 ) Net book value: At December 31, 2022 1,546,665 2,815,220 9,456 53,800 3,123,113 26,463 980,919 15,112 8,570,748 At December 31, 2023 1,546,665 237,447 3,076 - 1,011,149 22,784 729,495 11,405 3,562,021 Ending balance 1,546,665 237,447 3,076 - 1,011,149 22,784 729,495 11,405 3,562,021 Impairment assessment During the reporting period, certain subsidiaries operating in Peru have been severely affected by unfavorable market conditions arising in the construction and home improvement sector, which indicates that the property, plant and equipment of these subsidiaries may have impaired. The directors of the Company have therefore performed an impairment assessment on the property, plant and equipment of these subsidiaries at December 31, 2023 based on a valuation performed by BMI Appraisals Limited, an independent professionally qualified valuer. The recoverable amount of the property, plant and equipment of these subsidiaries amounted to approximately US$ 12,011,000 is determined based on value in use calculation involving estimation of the future cash flow and the use of assumptions including revenue growth rate, long-term growth rate and discount rate. As a result of the impairment assessment, an impairment loss of USD 4,244,688 was recognized in profit or loss during the reporting period. |
RIGHT-OF-USE-ASSETS, NET
RIGHT-OF-USE-ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Right-of-use-assets Net | |
RIGHT-OF-USE-ASSETS, NET | 5 RIGHT-OF-USE-ASSETS, NET SCHEDULE OF RIGHT OF USE ASSETS Leased Properties USD At January 1, 2022 274,098 Depreciation charge for the year (105,479 ) Exchange difference (11,551 ) At December 31, 2022 and January 1, 2023 157,068 Addition 136,242 Lease modification (6,035 ) Depreciation charge for the year (99,360 ) Exchange difference 1,094 At December 31, 2023 189,009 2023 2022 USD USD Expense relating to short-term lease and other leases with lease terms end within 12 months 1,283 66,078 Total cash outflow for leases 112,262 115,277 For both years, the Group leased offices for its operations. Lease contracts are entered into fixed terms from 1 year to 9 years (2022: 1 year to 9 years). No extension options are available for all leases. Lease terms are negotiated on an individual basis and contain wide range of different terms and conditions All leases are operating leases. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets Net | |
INTANGIBLE ASSETS, NET | 6 INTANGIBLE ASSETS, NET The Group currently owns certain natural forest concessions and cutting rights for the exploitation of timbers on parcels of land in Peru, which are subject to compliance of certain laws and regulations in Peru. The timber concessions and cutting rights have finite useful lives ranging from 23 40 years. SCHEDULE OF INTANGIBLE ASSETS Timber concession and cutting rights Others Total USD USD USD Cost: At January 1, 2022 23,464,332 57,826 23,522,158 Additions 313,517 651 314,168 Exchange difference - (251 ) (251 ) At December 31, 2022 and January 1, 2023 23,777,849 58,226 23,836,075 Cost, balance 23,777,849 58,226 23,836,075 Additions 2,162,073 - 2,162,073 At December 31, 2023 25,939,922 58,226 25,998,148 Cost, balance 25,939,922 58,226 25,998,148 Accumulated amortization: At January 1, 2022 (3,619,497 ) (3,491 ) (3,622,988 ) Charge for the year (888,181 ) (16,134 ) (904,315 ) Exchange difference - (3,315 ) (3,315 ) At December 31, 2022 and January 1, 2023 (4,507,678 ) (22,940 ) (4,530,618 ) Accumulated amortization, balance (4,507,678 ) (22,940 ) (4,530,618 ) Charge for the year (943,607 ) (7,017 ) (950,624 ) Exchange difference - 33 33 At December 31, 2023 (5,451,285 ) (29,924 ) (5,481,209 ) Accumulated amortization, balance (5,451,285 ) (29,924 ) (5,481,209 ) Net book value: At December 31, 2022 19,270,171 35,286 19,305,457 At December 31, 2023 20,488,637 28,302 20,516,939 Net book value 20,488,637 28,302 20,516,939 Note: During the year ended December 31, 2023, the Group acquired several timber concession and cutting rights in Peru with an aggregate area of approximately 77,217 2,162,073 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Inventories | |
INVENTORIES | 7 INVENTORIES SCHEDULE OF INVENTORIES 2023 2022 USD USD Raw materials 549,541 4,427,134 Work in progress 372,190 1,742,927 Finished goods 7,307,695 6,566,406 Spare parts for production 309,387 391,263 Total 8,538,813 13,127,730 Note: Write-down of inventories to net realizable value amounted to USD 1,933,391 (2022: Nil ). These were recognized as an expense during the year ended December 31, 2023 and included in “cost of revenue” in the consolidated statement of profit or loss. |
PREPAYMENTS
PREPAYMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Current And Non-current Prepayments | |
PREPAYMENTS | 8 PREPAYMENTS SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS 2023 2022 USD USD Advance payments made for: Purchase of flooring and decking products (Note 1 4,420,000 2,801,710 Purchase of logs (Note 2 625,272 2,478,043 Harvesting work in concessions and wood processing services (Note 3 1,980,680 2,890,222 Acquisition of cutting rights in timber concession (Note 4 - 1,104,242 Harvesting cost (Note 5 1,568,630 600,185 Prepayment for acquisition of property, plant and equipment (Note 6 300,000 - Others (Note 7) 226,252 2,389,523 Total 9,120,834 12,263,925 Less: Amounts to be utilized within 12 months shown under current assets (8,820,834 ) (11,153,330 ) Amounts to be utilized after 12 months shown under non-current assets 300,000 1,110,595 Notes: 1. Included in the prepayments, USD 4.4 2.8 2. Included in the prepayments, USD 0.6 2.5 3. Included in the prepayments, USD 2.0 2.9 4. At December 31, 2022, USD 1.1 5. Included in the prepayments, USD 1.6 million (2022: USD 0.6 million) was the harvesting cost to be transferred to inventories upon the receipt of logs. 6. At December 31, 2023, included in the prepayments was an initial payment of USD 0.3 million upon signing of a contract by a subsidiary for acquiring a property in Peru at a sum of USD 1.0 million. In February 2024, the property has been transferred to the Group. The Group’s capital commitment is disclosed in Note 27. 7. Remaining amounts of the prepayments were advance payments made to Group’s operating expenses of which certain expenses were prepaid for services more than 1 year and thus classified under non-current assets. |
TRADE AND OTHER RECEIVABLES, NE
TRADE AND OTHER RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2023 | |
Trade And Other Receivables Net | |
TRADE AND OTHER RECEIVABLES, NET | 9 TRADE AND OTHER RECEIVABLES, NET SCHEDULE OF TRADE AND OTHER RECEIVABLES 2023 2022 USD USD Trade receivables – contracts with customers 4,963,636 6,184,970 Less: Allowance for credit losses (483,153 ) (229,694 ) Trade receivables, net 4,480,483 5,955,276 Other receivables 2,803,236 2,597,456 Total 7,283,719 8,552,732 Movement in the above allowance for credit losses: Beginning balance 229,694 156,157 Charged for the year 253,459 73,537 Ending balance 483,153 229,694 The normal credit period for customers is ranging from 0 to 90 days. No interest is charged on the outstanding balances. SCHEDULE OF CREDIT CUSTOMERS RANGING 2023 2022 USD USD Not past due 132,747 1,488,567 Past due 4,830,889 4,696,403 Less: Allowance for credit losses (483,153 ) (229,694 ) Net trade receivables 4,480,483 5,955,276 The following is an aged analysis of trade receivables, net of allowance for credit losses, presented based on past due date: SCHEDULE OF AGED ANALYSIS OF TRADE RECEIVABLES 2023 2022 USD USD < 30 days 589,052 2,016,964 31 days to 60 days 356,638 1,922,323 61 days to 90 days 160,131 346,017 91 days to 180 days 2,585,027 6,392 181 days to 365 days 653,559 175,013 More than 1 year 3,329 - Total 4,347,736 4,466,709 As at December 31, 2023, included in the Group’s trade receivables balance are debtors with aggregate carrying amount of USD 4,347,736 4,466,709 3,241,915 181,405 As of and through April 25, 2024, the Group has received approximately USD 0.6 million in settlements of accounts receivables from its customers. Details of impairment assessment of trade and other receivables are set out in note 25. |
RESTRICTED BANK DEPOSITS AND CA
RESTRICTED BANK DEPOSITS AND CASH AND BANK BALANCES | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
RESTRICTED BANK DEPOSITS AND CASH AND BANK BALANCES | 10 RESTRICTED BANK DEPOSITS AND CASH AND BANK BALANCES SCHEDULE OF RESTRICTED BANK DEPOSITS CASH AND BANK BALANCES 2023 2022 USD USD Restricted bank deposits 628,156 603,341 Cash and bank balances 3,979,416 5,082,587 Total 4,607,572 5,685,928 Restricted bank deposits are pledged to banks as security deposits for the auction of logs. Details of impairment assessment of restricted bank deposits, and cash and bank balances are set out in note 25. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables [abstract] | |
TRADE AND OTHER PAYABLES | 11 TRADE AND OTHER PAYABLES SCHEDULE OF TRADE AND OTHER PAYABLES 2023 2022 USD USD Trade payables 2,350,888 1,992,691 Other payables 978,536 2,218,216 Accruals 1,008,768 3,521,304 Total 4,338,192 7,732,211 Other payables and accruals consist mainly of staff salaries, audit fees and other costs of non-trade nature. |
CONTRACT LIABILITIES
CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Contract liabilities [abstract] | |
CONTRACT LIABILITIES | 12 CONTRACT LIABILITIES SCHEDULE OF CONTRACT LIABILITIES 2023 2022 USD USD Contract liabilities 775,183 815,455 Contract liabilities relates to advances collected from customers but goods have yet delivered. These will be recognized as revenue once the control of the goods has been transferred to customers. Management expects that all the unsatisfied performance obligation as at the end of the reporting period may be recognized as revenue within twelve months from balance sheet date. |
BANK BORROWINGS AND OTHER BORRO
BANK BORROWINGS AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
BANK BORROWINGS AND OTHER BORROWINGS | 13 BANK BORROWINGS AND OTHER BORROWINGS SCHEDULE OF BANK AND OTHER BORROWINGS 2023 2022 USD USD (a) Bank borrowings (i)) Bank overdrafts - variable rate 1,779,659 880,765 Bank borrowings - fixed rate 8,481,756 11,560,237 Bank borrowings - variable rate 2,557,815 395,592 Total 12,819,230 12,836,594 Secured bank borrowings (Note (ii)) 11,708,392 11,437,433 Unsecured bank borrowings 1,110,838 1,399,161 Total 12,819,230 12,836,594 The carrying amounts of the above borrowings are repayable: Within one year 12,285,470 12,000,062 Within a period of more than one year but not exceeding two years 486,964 572,566 Within a period of more than two years but not exceeding five years 46,796 263,966 Total 12,819,230 12,836,594 Less: Amounts due within one year shown under current liabilities: (12,285,470 ) (12,000,062 ) Amounts shown under non-current liabilities: 533,760 836,532 (b) Other borrowings (Note (iii)) Unsecured other borrowing s – a related party - fixed rate (Note 24) 536,530 - Unsecured other borrowing - fixed rate 127,949 - Total 664,479 - Note: (i) Bank borrowings carry a weighted average effective interest rate at 6% 5% (ii) Secured bank borrowings were pledged by the personal guarantee and the private real estate properties owned by our shareholders. (iii) Included in other borrowings, an aggregate loan balance from a related party of USD 536,530 (2022: Nil ) was unsecured, interest-free or interest bearing at 7.5 % p.a. A principal amount of USD 127,949 Nil 6 |
AMOUNTS DUE TO AN ULTIMATE BENE
AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER | 12 Months Ended |
Dec. 31, 2023 | |
Amounts Due To Ultimate Beneficial Shareholder | |
AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER | 14 AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER SCHEDULE OF AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER 2023 2022 USD USD Due within one year 5,021,638 4,531,760 Due after one year 12,300,650 17,087,553 Total 17,322,288 21,619,313 Except as described below, all other amounts are unsecured, interest free and repayable on demand. As at December 31, 2023: Included in the non-current portion, two promissory notes with principal amounts of USD 12,300,650 (2022: USD 12,300,493 ) were unsecured, interest-free and repayable in February 2026. Included in the current portion, an aggregate loan balance of USD 895,645 was unsecured, interest bearing at 8 % p.a. and repayable in February to March 2024. Principal amounts of USD 1,217,405 were unsecured, interest-free and repayable in January to March 2024. As at December 31, 2022: Included in the non-current portion, an aggregate loan balance of USD 2,693,351 5% 8% 2,093,709 Included in the current portion, a principal amount of USD 641,294 8 |
LEASE LIABILITIES
LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
LEASE LIABILITIES | 15 LEASE LIABILITIES SCHEDULE OF LEASE LIABILITIES 2023 2022 USD USD Within one year 64,296 107,945 Within a period of more than one year but not more than two years 41,440 39,394 Within a period of more than two years but not more than five years 92,532 26,119 Lease liabilities gross 198,268 173,458 Less: Amount due for settlement with 12 months shown under current liabilities (64,296 ) (107,945 ) Amount due for settlement after 12 months shown under non-current liabilities 133,972 65,513 The weighted average incremental borrowing rates applied to lease liabilities range from 3 % to 5 % per annum (2022: 3 % to 4.5 % per annum). Lease obligations that are denominated in currencies other than the functional currencies of the relevant group entities are set out below: SCHEDULE OF LEASE OBLIGATIONS 2023 2022 USD USD EUR 42,459 54,727 CNY 131,076 62,289 Lease Obligations 131,076 62,289 |
CONVERTIBLE BONDS
CONVERTIBLE BONDS | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Bonds | |
CONVERTIBLE BONDS | 16 CONVERTIBLE BONDS On September 28, 2020, the Group issued HKD denominated 8 12,272,735 95,200,625 At the issue date, the Convertible Bonds can be converted into 20,475,377 shares (the “Conversion Shares”). At any time prior to the Maturity Date, holders of the Convertible Bonds shall have no right to convert all or part of the outstanding Convertible Bonds unless the criteria for early conversion set out in the Convertible Bond Agreements are satisfied. Otherwise, the Company shall on the Maturity Date redeem the outstanding principal amount of the Convertible Bonds together with the accrued interest rate of 8 Prior to the issuance of the Convertible bonds, the loan has been existed for the same amount and the third-party borrower agreed to transfer their loan amounts in full to become the amounts in the Convertible bonds upon issuance. The conversion option embedded in the Convertible bonds meet the definition of equity instrument of the Company and is classified as equity. Based on the assessment from the valuation expert, there is no value on the conversion option while the liability component was initially recognized at its fair value and was subsequently measured at amortized cost. On October 9, 2023, upon the criteria for early conversion set out in the Convertible Bond Agreements were satisfied, all of the outstanding convertible bonds were converted into 20,475,377 ordinary shares of the Company. Movement in convertible bonds: SCHEDULE OF CONVERTIBLE BONDS RECOGNIZED 2023 2022 USD USD At January 1 12,210,327 12,208,260 Interest expenses 684,163 972,045 Interest paid (684,163 ) (972,045 ) Converted to shares (12,210,327 ) - Exchange difference - 2,067 At December 31 - 12,210,327 Imputed interest expense of the Convertible Bonds is calculated using the effective interest method by applying effective interest rate of 8 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital | |
SHARE CAPITAL | 17 SHARE CAPITAL SCHEDULE OF SHARE CAPITAL 2023 2022 USD USD Paid up capital: 132,425,321 (2022: 105,263,000 At January 1 105,263 105,263 Issue of new shares for the initial public offering 6,687 - Issue of new shares for the conversion of Convertible Bonds 20,475 - At December 31 132,425 105,263 On September 14, 2023, upon completion of the Initial Public Offering, the Company issued 6,686,944 835,868 9 7.5 5.1 A registration statement on Form F-1 (File No. 333-271425) related to the Offering has been filed with, and declared effective on September 11, 2023 by the SEC. The ADSs began trading on September 12, 2023 on the Nasdaq Capital Market under the symbol “NWGL”. On October 9, 2023, the Company’s outstanding convertible bonds were converted into 20,475,377 As of December 31, 2023, the Company is authorized to issue a maximum of 200,000,000 200,000,000 132,425,321 105,263,000 0.001 Details of share option scheme issued by the Group is described in note 23. |
REVENUE AND SEGMENT INFORMATION
REVENUE AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Revenue And Segment Information | |
REVENUE AND SEGMENT INFORMATION | 18 REVENUE AND SEGMENT INFORMATION The Group is currently organized into two operating divisions – Direct Purchase and Original Design Manufacturer (“ODM”) Services, and Manufacturing segments. These segments are the basis on which the Group reports its primary segment information to the chief operating decision marker. The business nature of each segment is disclosed as follows: Direct Purchase and ODM Segment Manufacturing Segment Segment information of these businesses is presented below: (a) Reconciliation of the reportable segment revenue, profit or loss SCHEDULE OF REVENUE AND SEGMENT INFORMATION Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2023 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 10,024,250 390,739 - 10,414,989 Flooring 1,844,633 4,204,279 - 6,048,912 Decking 3,712,691 3,945,418 - 7,658,109 Sawn timber - 1,334,765 - 1,334,765 Revenue from external customers and segment revenue 15,581,574 9,875,201 - 25,456,775 Reportable segment results (128,996 ) (9,651,185 ) (2,196,001 ) (11,976,182 ) Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2022 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 27,272,065 526,192 - 27,798,257 Flooring 4,407,737 7,585,698 - 11,993,435 Decking 5,759,307 8,040,685 - 13,799,992 Sawn timber - 1,747,593 - 1,747,593 Revenue from external customers and segment revenue 37,439,109 17,900,168 - 55,339,277 Reportable segment results 6,118,794 1,678,217 (2,586,191 ) 5,210,820 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2021 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 20,035,002 1,110,996 - 21,145,998 Flooring 4,167,894 7,771,130 - 11,939,024 Decking 4,518,545 7,513,870 - 12,032,415 Sawn timber - 2,566,690 - 2,566,690 Revenue from external customers and segment revenue 28,721,441 18,962,686 - 47,684,127 Reportable segment results 3,441,324 (204,274 ) (1,276,507 ) 1,960,543 (b) Reconciliation of the reportable segment assets and liabilities SCHEDULE OF REPORTABLE SEGMENT ASSETS AND LIABILITIES Direct Purchase and ODM Manufacturing Unallocated Total reportable segment As at December 31, 2023 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Reportable segment assets 17,318,638 36,414,457 587,793 54,320,888 Reportable segment liabilities (15,727,139 ) (19,069,138 ) (1,342,923 ) (36,139,200 ) Direct Purchase and ODM Manufacturing Unallocated Total reportable segment As at December 31, 2022 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Reportable segment assets 17,601,758 49,294,010 1,150,919 68,046,687 Reportable segment liabilities (19,131,264 ) (23,217,801 ) (13,205,946 ) (55,555,011 ) (c) Disaggregation of revenue from contracts with customers In the following table, revenue is disaggregated by the geographical locations of customers and by the timing of revenue recognition. SCHEDULE OF REVENUES BY GEOGRAPHICAL LOCATIONS 2023 2022 2021 USD USD USD Geographical locations: China 15,491,537 37,860,768 32,366,974 Europe 8,094,986 15,278,355 12,788,272 South America 1,364,773 1,531,560 2,306,726 North America 110,057 37,107 171,354 South East Asia 395,422 631,487 50,801 Total 25,456,775 55,339,277 47,684,127 Timing of revenue recognition: At a point in time 25,456,775 55,339,277 47,684,127 Information about major customers is disclosed in note 25 (e). |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
OTHER INCOME, NET | 19 OTHER INCOME, NET SCHEDULE OF OTHER INCOME, NET 2023 2022 2021 USD USD USD Sales of side products and spare parts 619,830 929,780 791,110 VAT tax concessions 449,097 762,327 870,411 Profit (loss) on disposal of property, plant and equipment 3,669 8,423 (50,116 ) Government grants - - 700 Gain on lease modification 703 - - Others 40,352 122,632 13,418 Total 1,113,651 1,823,162 1,625,523 |
FINANCE COSTS
FINANCE COSTS | 12 Months Ended |
Dec. 31, 2023 | |
Finance Costs | |
FINANCE COSTS | 20 FINANCE COSTS SCHEDULE OF FINANCE COSTS 2023 2022 2021 USD USD USD Interest expenses on bank borrowings 605,979 421,753 318,014 Interest expenses on other borrowings 4,638 - - Interest expenses on shareholder loans 197,066 405,872 429,927 Interest expenses on convertible bonds 684,163 972,045 979,654 Interest expenses on lease liabilities 6,306 9,320 9,726 Bank charges 106,908 119,302 134,854 Total 1,605,060 1,928,292 1,872,175 |
(LOSS) PROFIT BEFORE INCOME TAX
(LOSS) PROFIT BEFORE INCOME TAX | 12 Months Ended |
Dec. 31, 2023 | |
Loss Profit Before Income Tax | |
(LOSS) PROFIT BEFORE INCOME TAX | 21 (LOSS) PROFIT BEFORE INCOME TAX (Loss) profit before income tax is arrived at after charging: SCHEDULE OF (LOSS) PROFIT BEFORE INCOME TAX 2023 2022 202 1 USD USD USD Cost of revenue 23,071,638 35,423,411 31,272,086 Depreciation expenses of: - Property, plant and equipment 863,287 707,747 509,177 - Right-of-use assets 99,360 105,479 86,769 Amortization of intangible assets 950,624 904,315 834,575 Expected credit losses recognized on trade receivables 253,459 73,537 96,891 Write-down of inventories, included in cost of revenue 1,933,391 - - Impairment loss recognized on property, plant and equipment 4,244,688 - - Auditor’s remuneration 204,246 212,268 10,977 Employee benefits expenses (including directors’ remuneration): - Salaries and allowances 3,375,361 3,877,068 3,104,038 - Pension scheme contribution 264,116 396,232 412,822 |
INCOME TAX (CREDITS) EXPENSES
INCOME TAX (CREDITS) EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Credits Expenses | |
INCOME TAX (CREDITS) EXPENSES | 22 INCOME TAX (CREDITS) EXPENSES British Virgin Islands The Company and our subsidiaries incorporated in British Virgin Islands currently enjoy permanent income tax holidays; accordingly, the Company and our subsidiaries incorporated in the British Virgin Islands do not accrue for income taxes. Peru Our subsidiaries incorporated in Peru are considered as Peru tax residents under Peru tax laws; accordingly, they are subject to corporate income tax on their taxable income under Peru tax laws at statutory tax rates ranging from 5% to 29.5 % (2022: 5 % to 29.5 %, 2021: 5 29.5 depending on the city where the subsidiaries are situated and operated. France Our subsidiary incorporated in France is considered as France tax resident under France tax laws; accordingly, it is subject to corporate income tax on their taxable income under France tax laws at a statutory tax rate of 25.0% (2022: 33.3 %, 2021: 26.5 %). China Our subsidiary incorporated in China is considered as China tax resident under China tax laws; accordingly, it is subject to corporate income tax on their taxable income under China tax laws at a statutory tax rate of 25% (2022: 25 25 ). Macau Our subsidiary incorporated in Macau is considered as Macau tax resident under Macau tax laws; accordingly, it is subject to corporate income tax on their taxable income under Macau tax laws at a statutory tax rate of 12% (2022: 12 12 ). Hong Kong Our subsidiary incorporated in Hong Kong is subject to corporate income tax on their taxable income under Hong Kong tax laws at a statutory tax rate of 16.5% (2022: 16.5 16.5 ). The income tax provision consists of the following components: SCHEDULE OF INCOME TAX PROVISION 2023 2022 2021 USD USD USD Current tax 29,186 431,925 622,963 (Over) under-provision of tax in prior years (72,040 ) - 5,290 Total (42,854 ) 431,925 628,253 The income tax (credits) expenses for the years can be reconciled to the (loss) profit before income tax per the consolidated statement of profit or loss as follows: SCHEDULE OF INCOME TAX (CREDITS) EXPENSES RECONCILED TO (LOSS) PROFIT BEFORE INCOME TAX 2023 2022 2021 USD USD USD (Loss) profit before income tax (11,976,182 ) 5,210,820 1,960,543 Tax at the respective income tax rates (1,418,569 ) 847,763 623,576 Tax effect of expenses not deductible for tax purpose 1,683,289 649,932 3,802,565 Tax effect of income not taxable for tax purpose (235,534 ) (850,911 ) (4,037,252 ) Tax effect of tax losses not recognized - - 288,070 Utilization of tax losses previously not recognized - (214,859 ) (128,876 ) (Over) under-provision in respect of prior years (72,040 ) - 5,290 Others - - 74,880 Total (42,854 ) 431,925 628,253 |
SHARE-BASED PAYMENTS TRANSACTIO
SHARE-BASED PAYMENTS TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Payments Transactions | |
SHARE-BASED PAYMENTS TRANSACTIONS | 23 SHARE-BASED PAYMENTS TRANSACTIONS Equity-settled share option scheme of the Company The Company’s share option scheme (the “Scheme”) was adopted pursuant to an ordinary resolution of the shareholders passed on September 1, 2019 for the primary purpose of providing incentives to directors and eligible employees and will expire on the date of the listing of shares of the Company. Under the Scheme, the directors of the Company may grant options to eligible employees, including directors of the Company and its subsidiaries, to subscribe for shares in the Company. At December 31, 2023, the number of shares in respect of which options had been granted and remained outstanding under the Scheme was 7,800,000 8,160,000 6% 8% 10% 1% Options granted must be taken up within 1 month of the date of grant, upon payment of HK$ 1 th 4.661 37.288 a) Details of specific categories of options are as follows: SCHEDULE OF SPECIFIC CATEGORIES OF OPTIONS Date of grant Vesting period Exercise period Exercise Price Exercise dates September 30, 2019 Vested upon grant date September 30, 2019–September 29, 2029 HK$ 4.661 Not yet exercised August 18, 2020 Vested upon grant date August 18, 2020 – August 17, 2030 HK$ 4.661 Not yet exercised b) The following table discloses movements of the Scheme during the year: SCHEDULE OF MOVEMENTS OF THE SCHEME Option grant date Outstanding at January 1, 2023 Granted during year Exercised during year Forfeited during year Expired during year Outstanding at December 31, 2023 September 30, 2019 6,957,000 - - (360,000 ) - 6,597,000 August 18, 2020 1,203,000 - - - - 1,203,000 8,160,000 - - (360,000 ) - 7,800,000 Exercisable at the end of the year 7,800,000 Weighted average exercise price HK$ 4.661 - - - - HK$ 4.661 The following table discloses movements of the Scheme during the prior year: Option grant date Outstanding at January 1, 2022 Granted during year Exercised during year Forfeited during year Expired during year Outstanding at December 31, 2022 September 30, 2019 6,957,000 - - - - 6,957,000 August 18, 2020 1,203,000 - - - - 1,203,000 8,160,000 - - - - 8,160,000 Exercisable at the end of the year 8,160,000 Weighted average exercise price HK$ 4.661 - - - - HK$ 4.661 In respect of the share options exercised during the year, the weighted average share price at the dates of exercise was HK$ 4.661 4.661 c) During the year ended December 31, 2021, options were granted on 18 August 2020. The estimated fair values of the options granted on this date is HK$ 0 d) These fair values were calculated using Hull-White Enhanced Model. The inputs into the model on option grant dates were as follows: SCHEDULE OF MEASUREMENT OF FAIR VALUE SHARE OPTIONS GRANTED Underlying stock price HK$ 0.235 Exercise price HK$ 4.661 Expected volatility 2.86 Expected life 10 Risk-free rate 1.20 % Expected dividend yield - e) Expected volatility was determined by using the historical volatility of the comparable companies adopted by the independent valuation expert. The expected life used in the model has not been adjusted which is based on the exercise period as specified under the terms and conditions of the share options. f) The Group did not recognize any share-based payment expense in relation to share options granted by the Company because assessed option value by the independent valuation expert on grant date is zero. |
SIGNIFICANT RELATED PARTY TRANS
SIGNIFICANT RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Significant Related Party Transactions | |
SIGNIFICANT RELATED PARTY TRANSACTIONS | 24 SIGNIFICANT RELATED PARTY TRANSACTIONS Related companies in these consolidated financial statements refer to members of the ultimate holding company’s group of companies. Some of the Company’s transactions and arrangements are between members of the group and the effect of these on the basis determined between the parties is reflected in these consolidated financial statements. The intercompany balances are unsecured, interest-free and repayable on demand, unless otherwise stated. Some of the group’s transactions and arrangements are with related parties and the effect of these on the basis determined between the parties is reflected in these consolidated financial statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated. Balances due to related parties SCHEDULE OF BALANCE DUE TO RELATED PARTIES 2023 2022 Name Relationship Nature USD USD Mr. Hok Pan Se Ultimate beneficial shareholder Non-trade payables Long-term loans (Note 14) 12,300,650 17,087,553 Short-term loans (Note 14) 5,021,638 4,531,760 Convertible bonds (Note 16) - 1,282,589 Amounts due to an ultimate beneficial shareholder 17,322,288 22,901,902 Mr. Se Ka Wai Related party of an ultimate beneficial shareholder Other borrowings (Note 13(b)) 536,530 - Long-term loans from related parties are not expected to be repaid within the next 12 months. The Company did not have any outstanding to any officers or directors as of December 31, 2023 and 2022, and it does not expect to provide long terms loans or credit facilities to officers and directors. Transactions with related parties The following table represents the significant related party transactions for the years ended December 31, 2023, 2022 and 2021. SCHEDULE OF RELATED PARTY TRANSACTIONS 2023 2022 202 1 Name Relationship Nature USD USD USD Mr. Hok Pan Se Ultimate beneficial shareholder Interest expense on shareholder loans 197,066 405,872 429,927 Mr. Hok Pan Se Ultimate beneficial shareholder Interest expense on convertible bonds 71,865 102,149 51,875 Fo Shan Sunde Daziran Investment Management Limited Joint control over the entity by ultimate beneficial shareholder Lease payments made 55,263 24,197 21,156 Fo Shan Sunde Changcheng Management Limited Joint control over the entity by ultimate beneficial shareholder Lease payments made 6,523 - - |
FINANCIAL INSTRUMENTS, FINANCIA
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments Financial Risks And Capital Risks Management | |
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT | 25 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT a) Categories of financial instruments The following table sets out the financial instruments as at the end of the reporting period: SCHEDULE OF FINANCIAL INSTRUMENTS 2023 2022 USD USD Financial assets At amortized cost 11,891,291 14,238,660 Financial assets at amortized cost 11,891,291 14,238,660 Financial liabilities At amortized cost (34,135,421 ) (50,877,141 ) Financial liabilities at amortized cost (34,135,421 ) (50,877,141 ) b) Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements The Group does not have any financial instruments which are subject to enforceable master netting arrangements or similar netting agreements. c) Financial risk management policies and objectives The management of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures are implemented in a timely and effective manner. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk. (i) Market risk management The Group activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management monitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures should the need arise. There has been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk. (ii) Foreign currency risk management The Group also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore exposed to foreign exchange risk. The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currencies are as follows: SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES Assets Liabilities 2023 2022 2023 2022 USD USD USD USD HKD 1,234,627 451,108 6,128,951 20,845,542 EUR 6,606,145 10,387,503 7,777,874 8,119,790 CNY 532,019 169,378 605,746 48,986 PEN 2,806,064 2,205,594 1,475,495 2,347,271 MOP 252 - 15,559 54,697 Foreign currency sensitivity The following table details the sensitivity to a 5 5 5 SCHEDULE OF SENSITIVITY CHANGE IN FOREIGN CURRENCIES RISK 2023 2022 2021 USD USD USD HKD (244,716 ) (1,019,722 ) (1,153,144 ) EUR (48,365 ) 113,386 (108,570 ) CNY (3,686 ) 6,020 (213 ) PEN (48,904 ) (7,804 ) 93,749 MOP (765 ) (2,735 ) (9,760 ) (iii) Interest rate risk management The Group is exposed to interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms of repayment of the loans are disclosed in the Note to the consolidated financial statements. The Group currently does not have an interest rate hedging policy. Interest rate sensitivity analysis The sensitivity analysis below has been determined based on the exposure to interest rate for non-derivative instruments at the end of the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates on loans had been 50 basis points higher/lower and all other variables were held constant, the Group’s (loss) profit for the year would decrease/increase by approximately USD 21,687 (2022: USD 6,382 36,838 ). (iv) Credit risk and impairment assessment Credit risk refers to the risk that the Group’s counterparties default on their contractual obligations resulting in financial losses to the Group. The Group’s credit risk exposures are primarily attributable to trade receivables, other receivables, restricted bank deposits, and cash and bank balances. The Group does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial assets. In order to minimize credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading to categorize exposures according to their degree of risk of default. The finance team uses publicly available financial information and the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Trade receivables Before accepting any new customer, the Group uses an internal credit scoring system to assess the potential customer’s credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed regularly. Other monitoring procedures are in place to ensure that follow-up action is taken to recover overdue debts. In this regard, the management considers that the Group’s credit risk is significantly reduced. The Group has concentration of credit risk as 55.2% (2022: 39.5%, 2021: 30.1%) and 89.9% (2022: 85.4%, 2021: 66.0%) of the total trade receivables was due from the Group’s largest customer and the five largest customers respectively. In order to minimize the credit risk, the management of the Group has delegated a team responsible for determination of credit limits and credit approvals. In addition, the Group performs impairment assessment under ECL model on trade receivables individually. Impairment of USD 253,459 (2022: USD 73,537 , 2021: USD 156,157 ) is recognized during the year. Details of the quantitative disclosures are set out below in this note. Other receivables For other receivables, the management makes periodic individual assessment on the recoverability of other receivables based on historical settlement records, past experience, and also quantitative and qualitative information that is reasonable and supportive forward-looking information. The management believes that there is no significant increase in credit risk of these amounts since initial recognition and the Group provided impairment based on 12m ECL. For the years ended December 31, 2023 and 2022, the Group assessed the ECL for other receivables and deposits are insignificant and thus no loss allowance is recognized. Restricted bank deposits/ cash and bank balances Credit risk on restricted bank deposits/ cash and bank balances is limited because the counterparties are reputable banks with high credit ratings assigned by international credit agencies. The Group assessed 12m ECL for restricted bank deposits/ cash and bank balances by reference to information relating to probability of default and loss given default of the respective credit rating grades published by external credit rating agencies. Based on the average loss rates, the 12m ECL on pledged bank deposits/restricted bank deposits/bank balances is considered to be insignificant and therefore no loss allowance was recognized. The Group’s internal credit risk grading framework comprises the following categories: SCHEDULE OF INTERNAL CREDIT RISK GRADING Category Description Trade receivables Other financial assets Low risk The counterparty has a low risk of default and does not have any past-due amounts 12-month ECL – not credit- impaired 12-month ECL Watch list Debtor frequently repays after due dates but usually settle in full Lifetime ECL – not credit- impaired 12-month ECL Doubtful There have been significant increases in credit risk since initial recognition through information developed internally or external resources Lifetime ECL – not credit-impaired Lifetime ECL - not credit-impaired Loss There is evidence indicating the asset is credit impaired Lifetime ECL – credit-impaired Lifetime ECL - credit impaired Write-off There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery Amount is written off Amount is written off The tables below detail the credit risk exposures of the Group’s financial assets, including trade receivables, other receivables, restricted bank deposits, and cash and bank balances, which are subject to ECL assessment: SCHEDULE OF CREDIT RISK 2023 2022 Note External credit rating Internal credit rating 12m or lifetime ECL Gross carrying amount Allowance for credit losses Gross carrying amount Allowance for credit losses Financial assets at amortized costs USD USD USD USD Trade receivables – contract with customers N/A Low 12-month ECL 132,746 - 1,488,567 - Watch list Lifetime ECL 4,550,560 (206,152 ) 4,510,354 (43,645 ) Doubtful Lifetime ECL 280,330 (277,001 ) 186,049 (186,049 ) 4,963,636 (483,153 ) 6,184,970 (229,694 ) Other receivables N/A Low 12-month ECL 2,803,236 2,597,456 Restricted bank deposits AA N/A 12-month ECL 628,156 603,341 Cash and bank balances AA+ N/A 12-month ECL 3,979,416 5,082,587 (v) Liquidity risk management Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. In assessing our liquidity, we monitor and analyze our cash on-hand and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through cash flows from operations, equity financing, and short-term borrowing from banks and third parties. As of December 31, 2023, our cash and bank balances amounted to approximately USD 4.0 million (2022: USD 5.1 million), and our current assets were approximately USD 29.8 million 2022: USD 38.9 million), and our current liabilities were approximately USD 23.2 million (2022: USD 37.6 million). Based on the above considerations, management is of the opinion that the Company has sufficient funds to meet its working capital requirements and debt obligations, for at least the next 12 months from the consolidated financial statement filing date. However, there is no assurance that management will be successful in their plans. There are several factors that could potentially arise that could undermine the Company’s plans, such as changes in the demand for its services, economic conditions, its operating results not continuing to deteriorate and its bank and shareholders being able to provide continued financial support. The Group maintains sufficient cash and cash equivalent, and internally generated cash flows to finance their activities. Liquidity risk analyses Non-derivative financial liabilities The following table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. SCHEDULE OF NON DERIVATIVE FINANCIAL LIABILITIES On demand or within 1 year 1 to 2 years 2 to 5 years Total USD USD USD USD 2023 Trade payables 2,350,888 - - 2,350,888 Other payables 978,536 - - 978,536 Bank borrowings 12,285,470 486,964 46,796 12,819,230 Other borrowings 664,479 - - 664,479 Amounts due to an ultimate beneficial shareholder 5,021,638 - 12,300,650 17,322,288 Convertible bonds 12,210,327 - - 12,210,327 Total 21,301,011 486,964 12,347,446 34,135,421 2022 Trade payables 1,992,691 - - 1,992,691 Other payables 2,218,216 - - 2,218,216 Bank borrowings 12,000,062 572,566 263,966 12,836,594 Amounts due to an ultimate beneficial shareholder 4,531,760 4,787,060 12,300,493 21,619,313 Convertible bonds 12,210,327 - - 12,210,327 Total 32,953,056 5,359,626 12,564,459 50,877,141 (vi) Fair value of financial assets and financial liabilities The management considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets and liabilities are disclosed in the respective notes to financial statements. (d) Capital risk management policies and objectives The management manages its capital to ensure that the Group will be able to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce cost of capital. The capital structure of the Company consists of equity attributable to owners of the Company, comprising issued capital and retained earnings as disclosed in the notes to consolidated financial statements. Management monitors capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as total debt divided by total equity. Total debt is calculated as borrowings plus trade and other payables. SCHEDULE OF DEBT TO EQUITY RATIO 2023 2022 USD USD Total debts 36,139,200 55,555,011 Total equity 18,181,688 12,491,676 Debt-to-equity % 199 445 The Group is not subject to externally imposed capital requirements for the years ended December 31, 2023 and 2022. The Group’s overall strategy remains unchanged from prior year. (e) Concentrations Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of their customers, and generally do not require collateral or other security from them. The Group evaluates their collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of their customers to minimize collection risk on accounts receivable. The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue: SCHEDULE OF CONCENTRATIONS 2023 2022 2021 USD % USD % USD % Amount of the Group’s revenue: 25,456,775 100.0 55,339,277 100.0 47,684,127 100 .0 Customer A 7,188,782 28.2 10,810,773 19.5 10,754,805 22.6 Customer C 261,155 1.0 5,528,442 10.0 2,702,037 5.7 The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: 2023 2022 2021 USD % USD % USD % Amount of the Group’s accounts receivable: 4,963,636 100.0 6,184,970 100.0 4,099,989 100.0 Customer A 2,738,407 55.2 - - - - Customer B 1,105,487 22.3 - - - - Customer C - - 2,440,997 39.5 524,950 12.8 Customer D - - 946,070 15.3 200,520 4.9 Customer E - - 780,427 12.6 1,232,501 30.1 Customer F - - 730,553 11.8 165,711 4.0 Customer G - - 110,532 1.8 434,342 10.6 |
RECONCILIATIONS OF LIABILITIES
RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
Reconciliations Of Liabilities Arising From Financing Activities | |
RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES | 26 RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES SCHEDULE OF RECONCILIATIONS OF LIABILITIES FROM FINANCING ACTIVITIES At beginning of year New leases entered Advance receipts Repayments made Conversion to shares Interest expenses Exchange difference At end of year USD USD USD USD USD USD USD USD 2023 Bank borrowings 12,836,594 - 30,492,404 (31,243,426 ) - 605,979 127,679 12,819,230 Other borrowings - - 663,211 (4,638 ) - 4,638 1,268 664,479 Convertible bonds 12,210,327 - - (684,163 ) (12,210,327 ) 684,163 - - Amounts due to an ultimate beneficial shareholder 21,619,313 - 2,579,641 (7,069,913 ) - 197,066 (3,819 ) 17,322,288 Lease liabilities 173,458 128,273 - (112,262 ) - 6,306 2,493 198,268 46,839,692 128,273 33,735,256 (39,114,402 ) (12,210,327 ) 1,498,152 127,621 31,004,265 2022 Bank borrowings 15,740,023 - 22,477,387 (25,768,366 ) - 421,753 (34,203 ) 12,836,594 Convertible bonds 12,208,260 - - (972,045 ) - 972,045 2,067 12,210,327 Amounts due to an ultimate beneficial shareholder 19,386,048 - 9,697,902 (7,934,582 ) - 405,872 (5,927 ) 21,619,313 Lease liabilities 292,151 - - (115,277 ) - 9,320 (12,736 ) 173,458 47,626,482 - 32,245,289 (34,790,270 ) - 1,808,990 (50,799 ) 46,839,692 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments And Contingencies | |
COMMITMENTS AND CONTINGENCIES | 27 COMMITMENTS AND CONTINGENCIES Capital Commitment The Group has the following capital commitments at the end of the reporting period: SCHEDULE OF CAPITAL COMMITMENT 2023 2022 USD USD Contracted, but not provided for: Property, plant and equipment 700,000 - Contingencies In the ordinary course of business, the Group may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Group records contingent liabilities resulting from such claims, when a loss is assessed to be probable, and the amount of the loss is reasonably estimable. In the opinion of management, there were no material pending or threatened claims and litigation as of December 31, 2023 and through the issuance date of these consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
SUBSEQUENT EVENTS | 28 SUBSEQUENT EVENTS The Group evaluated all events and transactions that occurred after December 31, 2023 up through April 25, 2023, which is the date that these consolidated financial statements are available for distribution. Other than the events disclosed above, no other material subsequent events have occurred that would require recognition or disclosure in the Company’s consolidated financial statements. |
SUMMARY OF MATERIAL ACCOUNTIN_2
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Material Accounting Policy Information | |
BASIS OF ACCOUNTING | BASIS OF ACCOUNTING - The consolidated financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and in accordance with International Financial Reporting Standards (or “IFRSs”) as issued by the International Accounting Standards Board (the “IASB”). Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. 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 Share-based Payment Leases Inventories Impairment of Assets 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. |
ADOPTION OF NEW AND REVISED STANDARDS | ADOPTION OF NEW AND REVISED STANDARDS IFRSs issued by the International Accounting Standards Board (“IASB”) that are mandatorily effective for an accounting period that begins on or after January 1, 2023: ● Amendments to IAS 8, Definition of accounting estimates ● Amendments to IAS 1 and IFRS Practice Statement 2 , Disclosure of accounting policies ● Amendments to IAS12, Deferred Tax related to Assets and Liabilities arising from a Single Transaction At the date of authorization of these consolidated financial statements, the management determined that the adoption of the above/other IFRSs and amendments to IFRS have not had any material impact on the consolidated financial statements of the Group in the period of their initial adoption. |
NEW AND REVISED IFRS STANDARDS IN ISSUE BUT NOT YET EFFECTIVE | NEW AND REVISED IFRS STANDARDS IN ISSUE BUT NOT YET EFFECTIVE - At the date of authorization of these consolidated financial statements, the Group has not adopted the new and revised IFRSs and amendments to IFRS that have been issued but are not yet effective to them. The Company do not anticipate that the adoption of these new and revised IFRS (I) pronouncements in future periods will have a material impact on the Group’s and the Company’s consolidated financial statements in the period of their initial adoption. The preparation of these consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the consolidated financial statements are disclosed in Note 3. |
BASIS OF CONSOLIDATION | BASIS OF CONSOLIDATION The Group consolidates the accounts of its subsidiaries and eliminates all significant intercompany balances and transactions in its consolidated financial statements. Subsidiary corporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases. In preparing the consolidated financial statements, transactions, balances, and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted by the Group. Acquisition of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the consolidated financial statements of the Company are a continuation of the acquired entities and is accounted for as follows: (i) The results of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented in the consolidated financial statements; (ii) The Company will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments are made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would otherwise be done under the acquisition method; and (iii) No new goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill relating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected within equity as merger reserve or deficit. |
FINANCIAL ASSETS | FINANCIAL ASSETS (a) Classification and measurement The Group reclassifies debt instruments when and only when its business model for managing those assets changes. At subsequent measurement - Debt instrument - Debt instruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. (b) Impairment The Group recognizes a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognizes lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless when there has a significant increase in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increase in the likelihood or risk of a default occurring since initial recognition. Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organizations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s operations. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: ● an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; ● significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor; ● existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; ● an actual or expected significant deterioration in the operating results of the debtor; ● significant increases in credit risk on other financial instruments of the same debtor; ● an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. (c) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss. |
Financial liabilities and equity instruments | Financial liabilities and equity instruments 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 substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 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 a Group are recognized at the proceeds received, net of direct issue costs. Financial liabilities Except for derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently measured at amortized cost using the effective interest method. Convertible bonds Convertible bonds that can be converted to equity share capital at the option of the holder, where the number of shares that would be issued on conversion and the value of the consideration that would be received at that time do not vary, are accounted for as compound financial instruments which contain a liability component, a derivative component, and an equity component. Convertible bonds issued by the Group that contain both financial liability and equity components are classified separately into respective liability, derivative and equity components on initial recognition. On initial recognition, the fair value of the liability component is determined using the prevailing market interest rate for similar non-convertible debts. The difference between the proceeds of the issue of the convertible bonds and the fair value assigned to the liability component, representing the call option for conversion of the convertible bonds into equity, is included in equity as convertible bonds reserve. The liability component is subsequently carried at amortized cost using the effective interest method. The equity component will remain in equity until conversion or redemption of the bond. When the convertible bond is converted, the equity component of convertible bond and the carrying value of the liability component at the time of conversion are transferred to share capital and share premium as consideration for the shares issued. If the bond is redeemed, the convertible bonds reserve is released directly to retained profits. 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 amortized cost of a financial liability. Derecognition of financial liabilities The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Offsetting financial instruments Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS Equity-settled share-based payment transactions Share options granted to employees Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value of the equity-settled share-based payments determined at the grant date without taking into consideration all non- market vesting conditions is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity (share-based payments reserve). At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest based on assessment of all relevant non-market vesting conditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based payments reserve. For shares/share options that vest immediately at the date of grant, the fair value of the shares/share options granted is expensed immediately to profit or loss. When share options are exercised, the amount previously recognized in share-based payments reserve will be transferred to 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 in share-based payments reserve will continue to be held in share-based payments reserve/will be transferred to retained earnings. When shares granted are vested, the amount previously recognized in share-based payments reserve will be transferred to share capital and share premium. |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (a) Measurement (i) Property, plant and equipment Property , plant (ii) Components of costs The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (b) Depreciation Depreciation on other items of property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed; SCHEDULE OF ESTIMATED USEFUL LIVES Properties 20 Machineries 10 Motor vehicles 5 Furniture and fittings 4 5 Office equipment 4 5 Leasehold Improvements 5 No The residual values estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when all of the activities necessary to prepare the assets for their intended use are substantially complete. No depreciation is provided in respect of construction in progress. (c) Subsequent expenditure Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred. (d) Disposal On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss within “Other losses - net”. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets acquired in a business combination are recognized separately from goodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Timber concessions and cutting rights are amortized on a straight-line basis, over the terms of license of respective timber concessions and cutting rights. Other intangible assets are initially recognized at cost less accumulated amortization and accumulated impairment losses. An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains and losses from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the assets, are recognized in profit or loss when the asset is derecognized. |
IMPAIRMENT OF NON-FINANCIAL ASSETS | IMPAIRMENT OF NON-FINANCIAL ASSETS For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the asset belongs. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years. A reversal of impairment loss for an asset other than goodwill is recognized in profit or loss. |
INVENTORIES | INVENTORIES Inventories of manufactured products, logs, timbers, and other raw materials are valued at the lower of weighted average cost and net realizable value. Processing materials and supplies are valued at the lower of weighted average cost and replacement cost. |
LEASES | LEASES When the Group is the lessee At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed. ● Right-of-use assets The Group recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right- of-use assets. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. ● Lease liabilities The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate. Lease payments include the following: - Fixed payment (including in-substance fixed payments), less any lease incentives receivables; - Variable lease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date; - Amount expected to be payable under residual value guarantees; - The exercise price of a purchase option if is reasonably certain to exercise the option; and - Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option. For contracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component for property leases and account these as one single lease component. Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when: - There is a change in future lease payments arising from changes in an index or rate; - There is a change in the Group’s assessment of whether it will exercise an extension option; or - There is modification in the scope or the consideration of the lease that was not part of the original term. Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. ● Short-term and low-value leases The Group has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. ● Variable lease payments Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments. |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS (a) Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Central Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. (b) Employee leave entitlement Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. |
PROVISIONS | PROVISIONS 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. Where 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 some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the 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. |
REVENUE RECOGNITION | REVENUE RECOGNITION ● Step 1: Identify the contract(s) with a client ● 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 Company satisfies a performance obligation The Company recognizes revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying the particular performance obligations is transferred to clients. A performance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially the same. Control is transferred overtime and revenue is recognized overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: ● the client simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs; ● the Company’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or ● the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Otherwise, revenue is recognized at a point in time when the customer obtains control of the distinct service. Advance payments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for service prior to, or after it satisfies the performance obligation under a service agreement. Income from sales of logs and manufactured wood products Revenue from logs and wood products is recognized at a point in time when the goods are delivered and transferred to customers, being at the point that the customer obtains the control of the goods (for export sales, it would be under the shipping terms of either Freight On Board (“FOB”) or Cost, insurance, and freight (“CIF”); for local sales, it would be recognized upon delivery is made to customer’s designated receiving location) and the Group has presented right of payment and collection of the consideration is probable. The Group receives certain portion of the contract value as deposits from customers or receipts in advance from customers when they sign the sale and purchase agreement. Deposits received on logs and wood products prior to the date of revenue recognition are recorded as contract liabilities under current liabilities. The management of the Group considers that there are no sales return and warranty policies for our international business. |
GOVERNMENT GRANTS AND SUBSIDIES | GOVERNMENT GRANTS AND SUBSIDIES Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Grants related to assets are presented as deferred income under trade and other payables. |
SHARE CAPITAL | SHARE CAPITAL - Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the capital reserves account. |
INCOME TAX | INCOME TAX Deferred income tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. A deferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income tax is measured: (i) at the tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale. Current and deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition. The Group accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized. |
FOREIGN CURRENCY TRANSACTIONS | FOREIGN CURRENCY TRANSACTIONS (a) Functional and presentation currency Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements are presented in US Dollar (“USD”), Hong Kong Dollar (“HKD”), China Yuan (“CNY”), Euro (“EUR”), Peruvian Sol (“PEN”) which is the functional currency of the Group and the Company. The value of foreign currencies including, may fluctuate against the USD. Any significant variations of the aforementioned currencies relative to the USD may materially affect the Company’s financial condition in terms of reporting in USD. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATE December 31, 2023 2022 202 1 HKD to USD Year End 0.128 0.128 0.128 HKD to USD Average Rate 0.128 0.128 0.129 CNY to USD Year End 0.141 0.144 0.157 CNY to USD Average Rate 0.141 0.148 0.155 EUR to USD Year End 1.110 1.066 1.132 EUR to USD Average Rate 1.099 1.052 1.182 PEN to USD Year End 0.270 0.262 0.251 PEN to USD Average Rate 0.268 0.261 0.256 (b) Transactions and balances Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets and financial liabilities. However, in the consolidated financial statements, currency translation differences arising from borrowings in foreign currencies and net investment in foreign operations, are recognized in other comprehensive income and accumulated in the currency translation reserve. When a foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate share of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal. Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined. (c) Translation of Group entities’ financial statements The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) assets and liabilities are translated at the closing exchange rates at the reporting date; (ii) income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and (iii) all resulting currency translation differences are recognized in other comprehensive income and accumulated in the currency translation reserve. These currency translation differences are reclassified to profit or loss on disposal or partial disposal with loss of control of the foreign operation. Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at the closing rates at the reporting date. |
RELATED PARTIES | RELATED PARTIES (a) A person, or a close member of that person’s family, is related to the group if that person: (i) has control or joint control over the group; (ii) has significant influence over the group; or (iii) is a member of the key management personnel of the group or the group’s parent. (b) An entity is related to the group if any of the following conditions applies: (i) The entity and the group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of of either the group or an entity related to the group. (vi) The entity is controlled or jointly controlled by a person identified in (a). (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the group or to the group’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. |
EARNINGS PER SHARE | EARNINGS PER SHARE |
SEGMENT REPORTING | SEGMENT REPORTING Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization And Principal Activities | |
SCHEDULE OF PRINCIPAL SUBSIDIARIES | The Group’s principal subsidiaries, as of the date of this report, are set out below: SCHEDULE OF PRINCIPAL SUBSIDIARIES Percentage of effective ownership Name Date of December 31, 2023 December 31, 2022 Place of incorporation Principal % % Swift Top Capital Resources Limited November 20, 2012 100 100 Hong Kong Trading of logs Parquet Nature (France) S.A.R.L. August 21, 2012 100 100 France Trading of logs Choi Chon Investment Company Limited March 12,2015 100 100 Macau Trading of wood products South American Wood S.A.C. December 16, 2019 100 100 Peru Trading of wood products Grupo Maderero Amaz S.A.C. July 27, 2016 100 100 Peru Trading of wood products E&T Forestal S.A.C. May 2,2014 100 100 Peru Manufacturing of wood products and holding of concession rights Maderera Industrial Isabelita S.A.C. February 22, 2002 100 100 Peru Trading of wood products and holding of concession rights Nuevo San Martin S.A.C. June 5, 2002 100 100 Peru Manufacturing and trading of wood products and holding of concession rights Sepahua Tropical Forest S.A.C. June 5, 2002 100 100 Peru Holding of concession rights Latinoamerican Forest S.A.C. March 31, 2022 100 100 Peru Trading of wood products |
SUMMARY OF MATERIAL ACCOUNTIN_3
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Material Accounting Policy Information | |
SCHEDULE OF ESTIMATED USEFUL LIVES | Depreciation on other items of property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed; SCHEDULE OF ESTIMATED USEFUL LIVES Properties 20 Machineries 10 Motor vehicles 5 Furniture and fittings 4 5 Office equipment 4 5 Leasehold Improvements 5 |
SCHEDULE OF CURRENCY EXCHANGE RATE | SCHEDULE OF CURRENCY EXCHANGE RATE December 31, 2023 2022 202 1 HKD to USD Year End 0.128 0.128 0.128 HKD to USD Average Rate 0.128 0.128 0.129 CNY to USD Year End 0.141 0.144 0.157 CNY to USD Average Rate 0.141 0.148 0.155 EUR to USD Year End 1.110 1.066 1.132 EUR to USD Average Rate 1.099 1.052 1.182 PEN to USD Year End 0.270 0.262 0.251 PEN to USD Average Rate 0.268 0.261 0.256 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property Plant And Equipment Net | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Freehold land Properties Leasehold Improvements Construction in progress Machineries Furniture and fittings Motor vehicles Office equipment Total USD USD USD USD USD USD USD USD USD Cost: At January 1, 2022 1,546,665 1,837,409 26,908 1,314,140 4,021,535 68,393 764,190 24,249 9,603,489 Additions - - - 80,216 92,586 2,475 1,017,530 9,482 1,202,289 Transfer - 1,340,556 - (1,340,556 ) 394,626 (26,966 ) (394,626 ) 26,966 - Disposals - - - - (1,300 ) - (76,922 ) (1,648 ) (79,870 ) Exchange difference - - (2,275 ) - (82 ) (1,857 ) (7,576 ) (211 ) (12,001 ) At December 31, 2022 and January 1, 2023 1,546,665 3,177,965 24,633 53,800 4,507,365 42,045 1,302,596 58,838 10,713,907 Additions - 36,109 - 64,416 10,574 1,392 - 3,913 116,404 Transfer - 118,216 - (118,216 ) - - - - - Disposals - - - - (1,401 ) - (88,652 ) (184 ) (90,237 ) Exchange difference - - (410 ) - 107 - 6,913 593 7,203 At December 31, 2023 1,546,665 3,332,290 24,223 - 4,516,645 43,437 1,220,857 63,160 10,747,277 Accumulated depreciation: At January 1, 2022 - (266,484 ) (9,666 ) - (830,772 ) (29,346 ) (337,940 ) (18,526 ) (1,492,734 ) Charge for the year - (96,261 ) (6,522 ) - (553,706 ) (5,100 ) (36,838 ) (9,320 ) (707,747 ) Transfer - - - - - 17,619 - (17,619 ) - Eliminated upon disposals - - - - 162 - 48,309 1,637 50,108 Exchange difference - - 1,011 - 64 1,245 4,792 102 7,214 At December 31, 2022 and January 1, 2023 - (362,745 ) (15,177 ) - (1,384,252 ) (15,582 ) (321,677 ) (43,726 ) (2,143,159 ) Charge for the year - (156,404 ) (6,206 ) - (450,707 ) (5,071 ) (237,309 ) (7,590 ) (863,287 ) Eliminated upon disposals - - - - 756 - 70,608 - 71,364 Exchange difference - - 236 - (2,299 ) - (2,984 ) (439 ) (5,486 ) At December 31, 2023 - (519,149 ) (21,147 ) - (1,836,502 ) (20,653 ) (491,362 ) (51,755 ) (2,940,568 ) Accumulated impairment: At January 1, 2022 - - - - - - - - - Beginning balance - - - - - - - - - Charge for the year - - - - - - - - - At December 31, 2022 and January 1, 2023 - - - - - - - - - Charge for the year - (2,575,694 ) - - (1,668,994 ) - - - (4,244,688 ) At December 31, 2023 - (2,575,694 ) - - (1,668,994 ) - - - (4,244,688 ) Net book value: At December 31, 2022 1,546,665 2,815,220 9,456 53,800 3,123,113 26,463 980,919 15,112 8,570,748 At December 31, 2023 1,546,665 237,447 3,076 - 1,011,149 22,784 729,495 11,405 3,562,021 Ending balance 1,546,665 237,447 3,076 - 1,011,149 22,784 729,495 11,405 3,562,021 |
RIGHT-OF-USE-ASSETS, NET (Table
RIGHT-OF-USE-ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Right-of-use-assets Net | |
SCHEDULE OF RIGHT OF USE ASSETS | SCHEDULE OF RIGHT OF USE ASSETS Leased Properties USD At January 1, 2022 274,098 Depreciation charge for the year (105,479 ) Exchange difference (11,551 ) At December 31, 2022 and January 1, 2023 157,068 Addition 136,242 Lease modification (6,035 ) Depreciation charge for the year (99,360 ) Exchange difference 1,094 At December 31, 2023 189,009 2023 2022 USD USD Expense relating to short-term lease and other leases with lease terms end within 12 months 1,283 66,078 Total cash outflow for leases 112,262 115,277 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets Net | |
SCHEDULE OF INTANGIBLE ASSETS | SCHEDULE OF INTANGIBLE ASSETS Timber concession and cutting rights Others Total USD USD USD Cost: At January 1, 2022 23,464,332 57,826 23,522,158 Additions 313,517 651 314,168 Exchange difference - (251 ) (251 ) At December 31, 2022 and January 1, 2023 23,777,849 58,226 23,836,075 Cost, balance 23,777,849 58,226 23,836,075 Additions 2,162,073 - 2,162,073 At December 31, 2023 25,939,922 58,226 25,998,148 Cost, balance 25,939,922 58,226 25,998,148 Accumulated amortization: At January 1, 2022 (3,619,497 ) (3,491 ) (3,622,988 ) Charge for the year (888,181 ) (16,134 ) (904,315 ) Exchange difference - (3,315 ) (3,315 ) At December 31, 2022 and January 1, 2023 (4,507,678 ) (22,940 ) (4,530,618 ) Accumulated amortization, balance (4,507,678 ) (22,940 ) (4,530,618 ) Charge for the year (943,607 ) (7,017 ) (950,624 ) Exchange difference - 33 33 At December 31, 2023 (5,451,285 ) (29,924 ) (5,481,209 ) Accumulated amortization, balance (5,451,285 ) (29,924 ) (5,481,209 ) Net book value: At December 31, 2022 19,270,171 35,286 19,305,457 At December 31, 2023 20,488,637 28,302 20,516,939 Net book value 20,488,637 28,302 20,516,939 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Inventories | |
SCHEDULE OF INVENTORIES | SCHEDULE OF INVENTORIES 2023 2022 USD USD Raw materials 549,541 4,427,134 Work in progress 372,190 1,742,927 Finished goods 7,307,695 6,566,406 Spare parts for production 309,387 391,263 Total 8,538,813 13,127,730 Note: Write-down of inventories to net realizable value amounted to USD 1,933,391 (2022: Nil ). These were recognized as an expense during the year ended December 31, 2023 and included in “cost of revenue” in the consolidated statement of profit or loss. |
PREPAYMENTS (Tables)
PREPAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Current And Non-current Prepayments | |
SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS | SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS 2023 2022 USD USD Advance payments made for: Purchase of flooring and decking products (Note 1 4,420,000 2,801,710 Purchase of logs (Note 2 625,272 2,478,043 Harvesting work in concessions and wood processing services (Note 3 1,980,680 2,890,222 Acquisition of cutting rights in timber concession (Note 4 - 1,104,242 Harvesting cost (Note 5 1,568,630 600,185 Prepayment for acquisition of property, plant and equipment (Note 6 300,000 - Others (Note 7) 226,252 2,389,523 Total 9,120,834 12,263,925 Less: Amounts to be utilized within 12 months shown under current assets (8,820,834 ) (11,153,330 ) Amounts to be utilized after 12 months shown under non-current assets 300,000 1,110,595 Notes: 1. Included in the prepayments, USD 4.4 2.8 2. Included in the prepayments, USD 0.6 2.5 3. Included in the prepayments, USD 2.0 2.9 4. At December 31, 2022, USD 1.1 5. Included in the prepayments, USD 1.6 million (2022: USD 0.6 million) was the harvesting cost to be transferred to inventories upon the receipt of logs. 6. At December 31, 2023, included in the prepayments was an initial payment of USD 0.3 million upon signing of a contract by a subsidiary for acquiring a property in Peru at a sum of USD 1.0 million. In February 2024, the property has been transferred to the Group. The Group’s capital commitment is disclosed in Note 27. 7. Remaining amounts of the prepayments were advance payments made to Group’s operating expenses of which certain expenses were prepaid for services more than 1 year and thus classified under non-current assets. |
TRADE AND OTHER RECEIVABLES, _2
TRADE AND OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade And Other Receivables Net | |
SCHEDULE OF TRADE AND OTHER RECEIVABLES | SCHEDULE OF TRADE AND OTHER RECEIVABLES 2023 2022 USD USD Trade receivables – contracts with customers 4,963,636 6,184,970 Less: Allowance for credit losses (483,153 ) (229,694 ) Trade receivables, net 4,480,483 5,955,276 Other receivables 2,803,236 2,597,456 Total 7,283,719 8,552,732 Movement in the above allowance for credit losses: Beginning balance 229,694 156,157 Charged for the year 253,459 73,537 Ending balance 483,153 229,694 |
SCHEDULE OF CREDIT CUSTOMERS RANGING | The normal credit period for customers is ranging from 0 to 90 days. No interest is charged on the outstanding balances. SCHEDULE OF CREDIT CUSTOMERS RANGING 2023 2022 USD USD Not past due 132,747 1,488,567 Past due 4,830,889 4,696,403 Less: Allowance for credit losses (483,153 ) (229,694 ) Net trade receivables 4,480,483 5,955,276 |
SCHEDULE OF AGED ANALYSIS OF TRADE RECEIVABLES | The following is an aged analysis of trade receivables, net of allowance for credit losses, presented based on past due date: SCHEDULE OF AGED ANALYSIS OF TRADE RECEIVABLES 2023 2022 USD USD < 30 days 589,052 2,016,964 31 days to 60 days 356,638 1,922,323 61 days to 90 days 160,131 346,017 91 days to 180 days 2,585,027 6,392 181 days to 365 days 653,559 175,013 More than 1 year 3,329 - Total 4,347,736 4,466,709 |
RESTRICTED BANK DEPOSITS AND _2
RESTRICTED BANK DEPOSITS AND CASH AND BANK BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF RESTRICTED BANK DEPOSITS CASH AND BANK BALANCES | SCHEDULE OF RESTRICTED BANK DEPOSITS CASH AND BANK BALANCES 2023 2022 USD USD Restricted bank deposits 628,156 603,341 Cash and bank balances 3,979,416 5,082,587 Total 4,607,572 5,685,928 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables [abstract] | |
SCHEDULE OF TRADE AND OTHER PAYABLES | SCHEDULE OF TRADE AND OTHER PAYABLES 2023 2022 USD USD Trade payables 2,350,888 1,992,691 Other payables 978,536 2,218,216 Accruals 1,008,768 3,521,304 Total 4,338,192 7,732,211 |
CONTRACT LIABILITIES (Tables)
CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contract liabilities [abstract] | |
SCHEDULE OF CONTRACT LIABILITIES | SCHEDULE OF CONTRACT LIABILITIES 2023 2022 USD USD Contract liabilities 775,183 815,455 |
BANK BORROWINGS AND OTHER BOR_2
BANK BORROWINGS AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF BANK AND OTHER BORROWINGS | SCHEDULE OF BANK AND OTHER BORROWINGS 2023 2022 USD USD (a) Bank borrowings (i)) Bank overdrafts - variable rate 1,779,659 880,765 Bank borrowings - fixed rate 8,481,756 11,560,237 Bank borrowings - variable rate 2,557,815 395,592 Total 12,819,230 12,836,594 Secured bank borrowings (Note (ii)) 11,708,392 11,437,433 Unsecured bank borrowings 1,110,838 1,399,161 Total 12,819,230 12,836,594 The carrying amounts of the above borrowings are repayable: Within one year 12,285,470 12,000,062 Within a period of more than one year but not exceeding two years 486,964 572,566 Within a period of more than two years but not exceeding five years 46,796 263,966 Total 12,819,230 12,836,594 Less: Amounts due within one year shown under current liabilities: (12,285,470 ) (12,000,062 ) Amounts shown under non-current liabilities: 533,760 836,532 (b) Other borrowings (Note (iii)) Unsecured other borrowing s – a related party - fixed rate (Note 24) 536,530 - Unsecured other borrowing - fixed rate 127,949 - Total 664,479 - Note: (i) Bank borrowings carry a weighted average effective interest rate at 6% 5% (ii) Secured bank borrowings were pledged by the personal guarantee and the private real estate properties owned by our shareholders. (iii) Included in other borrowings, an aggregate loan balance from a related party of USD 536,530 (2022: Nil ) was unsecured, interest-free or interest bearing at 7.5 % p.a. A principal amount of USD 127,949 Nil 6 |
AMOUNTS DUE TO AN ULTIMATE BE_2
AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Amounts Due To Ultimate Beneficial Shareholder | |
SCHEDULE OF AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER | SCHEDULE OF AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER 2023 2022 USD USD Due within one year 5,021,638 4,531,760 Due after one year 12,300,650 17,087,553 Total 17,322,288 21,619,313 |
LEASE LIABILITIES (Tables)
LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
SCHEDULE OF LEASE LIABILITIES | SCHEDULE OF LEASE LIABILITIES 2023 2022 USD USD Within one year 64,296 107,945 Within a period of more than one year but not more than two years 41,440 39,394 Within a period of more than two years but not more than five years 92,532 26,119 Lease liabilities gross 198,268 173,458 Less: Amount due for settlement with 12 months shown under current liabilities (64,296 ) (107,945 ) Amount due for settlement after 12 months shown under non-current liabilities 133,972 65,513 |
SCHEDULE OF LEASE OBLIGATIONS | Lease obligations that are denominated in currencies other than the functional currencies of the relevant group entities are set out below: SCHEDULE OF LEASE OBLIGATIONS 2023 2022 USD USD EUR 42,459 54,727 CNY 131,076 62,289 Lease Obligations 131,076 62,289 |
CONVERTIBLE BONDS (Tables)
CONVERTIBLE BONDS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Bonds | |
SCHEDULE OF CONVERTIBLE BONDS RECOGNIZED | SCHEDULE OF CONVERTIBLE BONDS RECOGNIZED 2023 2022 USD USD At January 1 12,210,327 12,208,260 Interest expenses 684,163 972,045 Interest paid (684,163 ) (972,045 ) Converted to shares (12,210,327 ) - Exchange difference - 2,067 At December 31 - 12,210,327 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital | |
SCHEDULE OF SHARE CAPITAL | SCHEDULE OF SHARE CAPITAL 2023 2022 USD USD Paid up capital: 132,425,321 (2022: 105,263,000 At January 1 105,263 105,263 Issue of new shares for the initial public offering 6,687 - Issue of new shares for the conversion of Convertible Bonds 20,475 - At December 31 132,425 105,263 |
REVENUE AND SEGMENT INFORMATI_2
REVENUE AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue And Segment Information | |
SCHEDULE OF REVENUE AND SEGMENT INFORMATION | SCHEDULE OF REVENUE AND SEGMENT INFORMATION Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2023 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 10,024,250 390,739 - 10,414,989 Flooring 1,844,633 4,204,279 - 6,048,912 Decking 3,712,691 3,945,418 - 7,658,109 Sawn timber - 1,334,765 - 1,334,765 Revenue from external customers and segment revenue 15,581,574 9,875,201 - 25,456,775 Reportable segment results (128,996 ) (9,651,185 ) (2,196,001 ) (11,976,182 ) Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2022 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 27,272,065 526,192 - 27,798,257 Flooring 4,407,737 7,585,698 - 11,993,435 Decking 5,759,307 8,040,685 - 13,799,992 Sawn timber - 1,747,593 - 1,747,593 Revenue from external customers and segment revenue 37,439,109 17,900,168 - 55,339,277 Reportable segment results 6,118,794 1,678,217 (2,586,191 ) 5,210,820 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment For the year ended December 31, 2021 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Logs 20,035,002 1,110,996 - 21,145,998 Flooring 4,167,894 7,771,130 - 11,939,024 Decking 4,518,545 7,513,870 - 12,032,415 Sawn timber - 2,566,690 - 2,566,690 Revenue from external customers and segment revenue 28,721,441 18,962,686 - 47,684,127 Reportable segment results 3,441,324 (204,274 ) (1,276,507 ) 1,960,543 |
SCHEDULE OF REPORTABLE SEGMENT ASSETS AND LIABILITIES | SCHEDULE OF REPORTABLE SEGMENT ASSETS AND LIABILITIES Direct Purchase and ODM Manufacturing Unallocated Total reportable segment As at December 31, 2023 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Reportable segment assets 17,318,638 36,414,457 587,793 54,320,888 Reportable segment liabilities (15,727,139 ) (19,069,138 ) (1,342,923 ) (36,139,200 ) Direct Purchase and ODM Manufacturing Unallocated Total reportable segment As at December 31, 2022 Direct Purchase and ODM Manufacturing Unallocated Total reportable segment USD USD USD USD Reportable segment assets 17,601,758 49,294,010 1,150,919 68,046,687 Reportable segment liabilities (19,131,264 ) (23,217,801 ) (13,205,946 ) (55,555,011 ) |
SCHEDULE OF REVENUES BY GEOGRAPHICAL LOCATIONS | In the following table, revenue is disaggregated by the geographical locations of customers and by the timing of revenue recognition. SCHEDULE OF REVENUES BY GEOGRAPHICAL LOCATIONS 2023 2022 2021 USD USD USD Geographical locations: China 15,491,537 37,860,768 32,366,974 Europe 8,094,986 15,278,355 12,788,272 South America 1,364,773 1,531,560 2,306,726 North America 110,057 37,107 171,354 South East Asia 395,422 631,487 50,801 Total 25,456,775 55,339,277 47,684,127 Timing of revenue recognition: At a point in time 25,456,775 55,339,277 47,684,127 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
SCHEDULE OF OTHER INCOME, NET | SCHEDULE OF OTHER INCOME, NET 2023 2022 2021 USD USD USD Sales of side products and spare parts 619,830 929,780 791,110 VAT tax concessions 449,097 762,327 870,411 Profit (loss) on disposal of property, plant and equipment 3,669 8,423 (50,116 ) Government grants - - 700 Gain on lease modification 703 - - Others 40,352 122,632 13,418 Total 1,113,651 1,823,162 1,625,523 |
FINANCE COSTS (Tables)
FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance Costs | |
SCHEDULE OF FINANCE COSTS | SCHEDULE OF FINANCE COSTS 2023 2022 2021 USD USD USD Interest expenses on bank borrowings 605,979 421,753 318,014 Interest expenses on other borrowings 4,638 - - Interest expenses on shareholder loans 197,066 405,872 429,927 Interest expenses on convertible bonds 684,163 972,045 979,654 Interest expenses on lease liabilities 6,306 9,320 9,726 Bank charges 106,908 119,302 134,854 Total 1,605,060 1,928,292 1,872,175 |
(LOSS) PROFIT BEFORE INCOME T_2
(LOSS) PROFIT BEFORE INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loss Profit Before Income Tax | |
SCHEDULE OF (LOSS) PROFIT BEFORE INCOME TAX | SCHEDULE OF (LOSS) PROFIT BEFORE INCOME TAX 2023 2022 202 1 USD USD USD Cost of revenue 23,071,638 35,423,411 31,272,086 Depreciation expenses of: - Property, plant and equipment 863,287 707,747 509,177 - Right-of-use assets 99,360 105,479 86,769 Amortization of intangible assets 950,624 904,315 834,575 Expected credit losses recognized on trade receivables 253,459 73,537 96,891 Write-down of inventories, included in cost of revenue 1,933,391 - - Impairment loss recognized on property, plant and equipment 4,244,688 - - Auditor’s remuneration 204,246 212,268 10,977 Employee benefits expenses (including directors’ remuneration): - Salaries and allowances 3,375,361 3,877,068 3,104,038 - Pension scheme contribution 264,116 396,232 412,822 |
INCOME TAX (CREDITS) EXPENSES (
INCOME TAX (CREDITS) EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Credits Expenses | |
SCHEDULE OF INCOME TAX PROVISION | The income tax provision consists of the following components: SCHEDULE OF INCOME TAX PROVISION 2023 2022 2021 USD USD USD Current tax 29,186 431,925 622,963 (Over) under-provision of tax in prior years (72,040 ) - 5,290 Total (42,854 ) 431,925 628,253 |
SCHEDULE OF INCOME TAX (CREDITS) EXPENSES RECONCILED TO (LOSS) PROFIT BEFORE INCOME TAX | The income tax (credits) expenses for the years can be reconciled to the (loss) profit before income tax per the consolidated statement of profit or loss as follows: SCHEDULE OF INCOME TAX (CREDITS) EXPENSES RECONCILED TO (LOSS) PROFIT BEFORE INCOME TAX 2023 2022 2021 USD USD USD (Loss) profit before income tax (11,976,182 ) 5,210,820 1,960,543 Tax at the respective income tax rates (1,418,569 ) 847,763 623,576 Tax effect of expenses not deductible for tax purpose 1,683,289 649,932 3,802,565 Tax effect of income not taxable for tax purpose (235,534 ) (850,911 ) (4,037,252 ) Tax effect of tax losses not recognized - - 288,070 Utilization of tax losses previously not recognized - (214,859 ) (128,876 ) (Over) under-provision in respect of prior years (72,040 ) - 5,290 Others - - 74,880 Total (42,854 ) 431,925 628,253 |
SHARE-BASED PAYMENTS TRANSACT_2
SHARE-BASED PAYMENTS TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Payments Transactions | |
SCHEDULE OF SPECIFIC CATEGORIES OF OPTIONS | a) Details of specific categories of options are as follows: SCHEDULE OF SPECIFIC CATEGORIES OF OPTIONS Date of grant Vesting period Exercise period Exercise Price Exercise dates September 30, 2019 Vested upon grant date September 30, 2019–September 29, 2029 HK$ 4.661 Not yet exercised August 18, 2020 Vested upon grant date August 18, 2020 – August 17, 2030 HK$ 4.661 Not yet exercised |
SCHEDULE OF MOVEMENTS OF THE SCHEME | b) The following table discloses movements of the Scheme during the year: SCHEDULE OF MOVEMENTS OF THE SCHEME Option grant date Outstanding at January 1, 2023 Granted during year Exercised during year Forfeited during year Expired during year Outstanding at December 31, 2023 September 30, 2019 6,957,000 - - (360,000 ) - 6,597,000 August 18, 2020 1,203,000 - - - - 1,203,000 8,160,000 - - (360,000 ) - 7,800,000 Exercisable at the end of the year 7,800,000 Weighted average exercise price HK$ 4.661 - - - - HK$ 4.661 The following table discloses movements of the Scheme during the prior year: Option grant date Outstanding at January 1, 2022 Granted during year Exercised during year Forfeited during year Expired during year Outstanding at December 31, 2022 September 30, 2019 6,957,000 - - - - 6,957,000 August 18, 2020 1,203,000 - - - - 1,203,000 8,160,000 - - - - 8,160,000 Exercisable at the end of the year 8,160,000 Weighted average exercise price HK$ 4.661 - - - - HK$ 4.661 |
SCHEDULE OF MEASUREMENT OF FAIR VALUE SHARE OPTIONS GRANTED | SCHEDULE OF MEASUREMENT OF FAIR VALUE SHARE OPTIONS GRANTED Underlying stock price HK$ 0.235 Exercise price HK$ 4.661 Expected volatility 2.86 Expected life 10 Risk-free rate 1.20 % Expected dividend yield - |
SIGNIFICANT RELATED PARTY TRA_2
SIGNIFICANT RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Related Party Transactions | |
SCHEDULE OF BALANCE DUE TO RELATED PARTIES | SCHEDULE OF BALANCE DUE TO RELATED PARTIES 2023 2022 Name Relationship Nature USD USD Mr. Hok Pan Se Ultimate beneficial shareholder Non-trade payables Long-term loans (Note 14) 12,300,650 17,087,553 Short-term loans (Note 14) 5,021,638 4,531,760 Convertible bonds (Note 16) - 1,282,589 Amounts due to an ultimate beneficial shareholder 17,322,288 22,901,902 Mr. Se Ka Wai Related party of an ultimate beneficial shareholder Other borrowings (Note 13(b)) 536,530 - |
SCHEDULE OF RELATED PARTY TRANSACTIONS | The following table represents the significant related party transactions for the years ended December 31, 2023, 2022 and 2021. SCHEDULE OF RELATED PARTY TRANSACTIONS 2023 2022 202 1 Name Relationship Nature USD USD USD Mr. Hok Pan Se Ultimate beneficial shareholder Interest expense on shareholder loans 197,066 405,872 429,927 Mr. Hok Pan Se Ultimate beneficial shareholder Interest expense on convertible bonds 71,865 102,149 51,875 Fo Shan Sunde Daziran Investment Management Limited Joint control over the entity by ultimate beneficial shareholder Lease payments made 55,263 24,197 21,156 Fo Shan Sunde Changcheng Management Limited Joint control over the entity by ultimate beneficial shareholder Lease payments made 6,523 - - |
FINANCIAL INSTRUMENTS, FINANC_2
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments Financial Risks And Capital Risks Management | |
SCHEDULE OF FINANCIAL INSTRUMENTS | The following table sets out the financial instruments as at the end of the reporting period: SCHEDULE OF FINANCIAL INSTRUMENTS 2023 2022 USD USD Financial assets At amortized cost 11,891,291 14,238,660 Financial assets at amortized cost 11,891,291 14,238,660 Financial liabilities At amortized cost (34,135,421 ) (50,877,141 ) Financial liabilities at amortized cost (34,135,421 ) (50,877,141 ) |
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES | The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currencies are as follows: SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES Assets Liabilities 2023 2022 2023 2022 USD USD USD USD HKD 1,234,627 451,108 6,128,951 20,845,542 EUR 6,606,145 10,387,503 7,777,874 8,119,790 CNY 532,019 169,378 605,746 48,986 PEN 2,806,064 2,205,594 1,475,495 2,347,271 MOP 252 - 15,559 54,697 |
SCHEDULE OF SENSITIVITY CHANGE IN FOREIGN CURRENCIES RISK | SCHEDULE OF SENSITIVITY CHANGE IN FOREIGN CURRENCIES RISK 2023 2022 2021 USD USD USD HKD (244,716 ) (1,019,722 ) (1,153,144 ) EUR (48,365 ) 113,386 (108,570 ) CNY (3,686 ) 6,020 (213 ) PEN (48,904 ) (7,804 ) 93,749 MOP (765 ) (2,735 ) (9,760 ) |
SCHEDULE OF INTERNAL CREDIT RISK GRADING | The Group’s internal credit risk grading framework comprises the following categories: SCHEDULE OF INTERNAL CREDIT RISK GRADING Category Description Trade receivables Other financial assets Low risk The counterparty has a low risk of default and does not have any past-due amounts 12-month ECL – not credit- impaired 12-month ECL Watch list Debtor frequently repays after due dates but usually settle in full Lifetime ECL – not credit- impaired 12-month ECL Doubtful There have been significant increases in credit risk since initial recognition through information developed internally or external resources Lifetime ECL – not credit-impaired Lifetime ECL - not credit-impaired Loss There is evidence indicating the asset is credit impaired Lifetime ECL – credit-impaired Lifetime ECL - credit impaired Write-off There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery Amount is written off Amount is written off |
SCHEDULE OF CREDIT RISK | The tables below detail the credit risk exposures of the Group’s financial assets, including trade receivables, other receivables, restricted bank deposits, and cash and bank balances, which are subject to ECL assessment: SCHEDULE OF CREDIT RISK 2023 2022 Note External credit rating Internal credit rating 12m or lifetime ECL Gross carrying amount Allowance for credit losses Gross carrying amount Allowance for credit losses Financial assets at amortized costs USD USD USD USD Trade receivables – contract with customers N/A Low 12-month ECL 132,746 - 1,488,567 - Watch list Lifetime ECL 4,550,560 (206,152 ) 4,510,354 (43,645 ) Doubtful Lifetime ECL 280,330 (277,001 ) 186,049 (186,049 ) 4,963,636 (483,153 ) 6,184,970 (229,694 ) Other receivables N/A Low 12-month ECL 2,803,236 2,597,456 Restricted bank deposits AA N/A 12-month ECL 628,156 603,341 Cash and bank balances AA+ N/A 12-month ECL 3,979,416 5,082,587 |
SCHEDULE OF NON DERIVATIVE FINANCIAL LIABILITIES | SCHEDULE OF NON DERIVATIVE FINANCIAL LIABILITIES On demand or within 1 year 1 to 2 years 2 to 5 years Total USD USD USD USD 2023 Trade payables 2,350,888 - - 2,350,888 Other payables 978,536 - - 978,536 Bank borrowings 12,285,470 486,964 46,796 12,819,230 Other borrowings 664,479 - - 664,479 Amounts due to an ultimate beneficial shareholder 5,021,638 - 12,300,650 17,322,288 Convertible bonds 12,210,327 - - 12,210,327 Total 21,301,011 486,964 12,347,446 34,135,421 2022 Trade payables 1,992,691 - - 1,992,691 Other payables 2,218,216 - - 2,218,216 Bank borrowings 12,000,062 572,566 263,966 12,836,594 Amounts due to an ultimate beneficial shareholder 4,531,760 4,787,060 12,300,493 21,619,313 Convertible bonds 12,210,327 - - 12,210,327 Total 32,953,056 5,359,626 12,564,459 50,877,141 |
SCHEDULE OF DEBT TO EQUITY RATIO | SCHEDULE OF DEBT TO EQUITY RATIO 2023 2022 USD USD Total debts 36,139,200 55,555,011 Total equity 18,181,688 12,491,676 Debt-to-equity % 199 445 |
SCHEDULE OF CONCENTRATIONS | The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue: SCHEDULE OF CONCENTRATIONS 2023 2022 2021 USD % USD % USD % Amount of the Group’s revenue: 25,456,775 100.0 55,339,277 100.0 47,684,127 100 .0 Customer A 7,188,782 28.2 10,810,773 19.5 10,754,805 22.6 Customer C 261,155 1.0 5,528,442 10.0 2,702,037 5.7 The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: 2023 2022 2021 USD % USD % USD % Amount of the Group’s accounts receivable: 4,963,636 100.0 6,184,970 100.0 4,099,989 100.0 Customer A 2,738,407 55.2 - - - - Customer B 1,105,487 22.3 - - - - Customer C - - 2,440,997 39.5 524,950 12.8 Customer D - - 946,070 15.3 200,520 4.9 Customer E - - 780,427 12.6 1,232,501 30.1 Customer F - - 730,553 11.8 165,711 4.0 Customer G - - 110,532 1.8 434,342 10.6 |
RECONCILIATIONS OF LIABILITIE_2
RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reconciliations Of Liabilities Arising From Financing Activities | |
SCHEDULE OF RECONCILIATIONS OF LIABILITIES FROM FINANCING ACTIVITIES | SCHEDULE OF RECONCILIATIONS OF LIABILITIES FROM FINANCING ACTIVITIES At beginning of year New leases entered Advance receipts Repayments made Conversion to shares Interest expenses Exchange difference At end of year USD USD USD USD USD USD USD USD 2023 Bank borrowings 12,836,594 - 30,492,404 (31,243,426 ) - 605,979 127,679 12,819,230 Other borrowings - - 663,211 (4,638 ) - 4,638 1,268 664,479 Convertible bonds 12,210,327 - - (684,163 ) (12,210,327 ) 684,163 - - Amounts due to an ultimate beneficial shareholder 21,619,313 - 2,579,641 (7,069,913 ) - 197,066 (3,819 ) 17,322,288 Lease liabilities 173,458 128,273 - (112,262 ) - 6,306 2,493 198,268 46,839,692 128,273 33,735,256 (39,114,402 ) (12,210,327 ) 1,498,152 127,621 31,004,265 2022 Bank borrowings 15,740,023 - 22,477,387 (25,768,366 ) - 421,753 (34,203 ) 12,836,594 Convertible bonds 12,208,260 - - (972,045 ) - 972,045 2,067 12,210,327 Amounts due to an ultimate beneficial shareholder 19,386,048 - 9,697,902 (7,934,582 ) - 405,872 (5,927 ) 21,619,313 Lease liabilities 292,151 - - (115,277 ) - 9,320 (12,736 ) 173,458 47,626,482 - 32,245,289 (34,790,270 ) - 1,808,990 (50,799 ) 46,839,692 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments And Contingencies | |
SCHEDULE OF CAPITAL COMMITMENT | The Group has the following capital commitments at the end of the reporting period: SCHEDULE OF CAPITAL COMMITMENT 2023 2022 USD USD Contracted, but not provided for: Property, plant and equipment 700,000 - |
SCHEDULE OF PRINCIPAL SUBSIDIAR
SCHEDULE OF PRINCIPAL SUBSIDIARIES (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Swift Top Capital Resources Limited [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Swift Top Capital Resources Limited | |
Date of incorporation | November 20, 2012 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Hong Kong | |
Principal activities | Trading of logs | |
Parquet Nature SARL [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Parquet Nature (France) S.A.R.L. | |
Date of incorporation | August 21, 2012 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | France | |
Principal activities | Trading of logs | |
ChoiChon Investment Company Limited [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Choi Chon Investment Company Limited | |
Date of incorporation | March 12,2015 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Macau | |
Principal activities | Trading of wood products | |
South American Wood SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | South American Wood S.A.C. | |
Date of incorporation | December 16, 2019 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Trading of wood products | |
Grupo Maderero Amaz SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Grupo Maderero Amaz S.A.C. | |
Date of incorporation | July 27, 2016 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Trading of wood products | |
E and T Forestal SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | E&T Forestal S.A.C. | |
Date of incorporation | May 2,2014 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Manufacturing of wood products and holding of concession rights | |
Maderera Industrial Isabelita SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Maderera Industrial Isabelita S.A.C. | |
Date of incorporation | February 22, 2002 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Trading of wood products and holding of concession rights | |
Nuevo San Martin SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Nuevo San Martin S.A.C. | |
Date of incorporation | June 5, 2002 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Manufacturing and trading of wood products and holding of concession rights | |
Sepahua Tropical Forest SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Sepahua Tropical Forest S.A.C. | |
Date of incorporation | June 5, 2002 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Holding of concession rights | |
Latino American Forest SAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Name of subsidiary | Latinoamerican Forest S.A.C. | |
Date of incorporation | March 31, 2022 | |
Percentage of effective ownership | 100% | 100% |
Place of incorporation | Peru | |
Principal activities | Trading of wood products |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Properties [Member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 20 years |
Machinery [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 10 years |
Motor vehicles [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 5 years |
Fixtures and fittings [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 4 years |
Fixtures and fittings [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 5 years |
Office equipment [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 4 years |
Office equipment [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 5 years |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life property, plant and equipment | 5 years |
SCHEDULE OF CURRENCY EXCHANGE R
SCHEDULE OF CURRENCY EXCHANGE RATE (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
HKD To USD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Year End | 0.128 | 0.128 | 0.128 |
Average Rate | 0.128 | 0.128 | 0.129 |
CNY To USD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Year End | 0.141 | 0.144 | 0.157 |
Average Rate | 0.141 | 0.148 | 0.155 |
EUR To USD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Year End | 1.110 | 1.066 | 1.132 |
Average Rate | 1.099 | 1.052 | 1.182 |
PEN To USD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Year End | 0.270 | 0.262 | 0.251 |
Average Rate | 0.268 | 0.261 | 0.256 |
SUMMARY OF MATERIAL ACCOUNTIN_4
SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Depreciation | $ 863,287 | $ 707,747 | $ 509,177 |
Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
Depreciation | 0 | ||
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Depreciation | $ 0 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | $ 8,570,748 | |
Ending balance | 3,562,021 | $ 8,570,748 |
Freehold Land [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 1,546,665 | |
Ending balance | 1,546,665 | 1,546,665 |
Properties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 2,815,220 | |
Ending balance | 237,447 | 2,815,220 |
Leasehold Improvement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 9,456 | |
Ending balance | 3,076 | 9,456 |
Construction in progress [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 53,800 | |
Ending balance | 53,800 | |
Machinery [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 3,123,113 | |
Ending balance | 1,011,149 | 3,123,113 |
Furnitures and Fittings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 26,463 | |
Ending balance | 22,784 | 26,463 |
Motor vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 980,919 | |
Ending balance | 729,495 | 980,919 |
Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 15,112 | |
Ending balance | 11,405 | 15,112 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 10,713,907 | 9,603,489 |
Charge for the year | 116,404 | 1,202,289 |
Transfer | ||
Eliminated upon disposals | (90,237) | (79,870) |
Exchange difference | 7,203 | (12,001) |
Ending balance | 10,747,277 | 10,713,907 |
Gross carrying amount [member] | Freehold Land [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 1,546,665 | 1,546,665 |
Charge for the year | ||
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | 1,546,665 | 1,546,665 |
Gross carrying amount [member] | Properties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 3,177,965 | 1,837,409 |
Charge for the year | 36,109 | |
Transfer | 118,216 | 1,340,556 |
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | 3,332,290 | 3,177,965 |
Gross carrying amount [member] | Leasehold Improvement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 24,633 | 26,908 |
Charge for the year | ||
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | (410) | (2,275) |
Ending balance | 24,223 | 24,633 |
Gross carrying amount [member] | Construction in progress [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 53,800 | 1,314,140 |
Charge for the year | 64,416 | 80,216 |
Transfer | (118,216) | (1,340,556) |
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | 53,800 | |
Gross carrying amount [member] | Machinery [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 4,507,365 | 4,021,535 |
Charge for the year | 10,574 | 92,586 |
Transfer | 394,626 | |
Eliminated upon disposals | (1,401) | (1,300) |
Exchange difference | 107 | (82) |
Ending balance | 4,516,645 | 4,507,365 |
Gross carrying amount [member] | Furnitures and Fittings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 42,045 | 68,393 |
Charge for the year | 1,392 | 2,475 |
Transfer | (26,966) | |
Eliminated upon disposals | ||
Exchange difference | (1,857) | |
Ending balance | 43,437 | 42,045 |
Gross carrying amount [member] | Motor vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 1,302,596 | 764,190 |
Charge for the year | 1,017,530 | |
Transfer | (394,626) | |
Eliminated upon disposals | (88,652) | (76,922) |
Exchange difference | 6,913 | (7,576) |
Ending balance | 1,220,857 | 1,302,596 |
Gross carrying amount [member] | Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | 58,838 | 24,249 |
Charge for the year | 3,913 | 9,482 |
Transfer | 26,966 | |
Eliminated upon disposals | (184) | (1,648) |
Exchange difference | 593 | (211) |
Ending balance | 63,160 | 58,838 |
Accumulated depreciation and amortisation [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (2,143,159) | (1,492,734) |
Charge for the year | (863,287) | (707,747) |
Transfer | ||
Eliminated upon disposals | 71,364 | 50,108 |
Exchange difference | (5,486) | 7,214 |
Ending balance | (2,940,568) | (2,143,159) |
Accumulated depreciation and amortisation [member] | Freehold Land [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | ||
Accumulated depreciation and amortisation [member] | Properties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (362,745) | (266,484) |
Charge for the year | (156,404) | (96,261) |
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | (519,149) | (362,745) |
Accumulated depreciation and amortisation [member] | Leasehold Improvement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (15,177) | (9,666) |
Charge for the year | (6,206) | (6,522) |
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | 236 | 1,011 |
Ending balance | (21,147) | (15,177) |
Accumulated depreciation and amortisation [member] | Construction in progress [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Transfer | ||
Eliminated upon disposals | ||
Exchange difference | ||
Ending balance | ||
Accumulated depreciation and amortisation [member] | Machinery [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (1,384,252) | (830,772) |
Charge for the year | (450,707) | (553,706) |
Transfer | ||
Eliminated upon disposals | 756 | 162 |
Exchange difference | (2,299) | 64 |
Ending balance | (1,836,502) | (1,384,252) |
Accumulated depreciation and amortisation [member] | Furnitures and Fittings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (15,582) | (29,346) |
Charge for the year | (5,071) | (5,100) |
Transfer | 17,619 | |
Eliminated upon disposals | ||
Exchange difference | 1,245 | |
Ending balance | (20,653) | (15,582) |
Accumulated depreciation and amortisation [member] | Motor vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (321,677) | (337,940) |
Charge for the year | (237,309) | (36,838) |
Transfer | ||
Eliminated upon disposals | 70,608 | 48,309 |
Exchange difference | (2,984) | 4,792 |
Ending balance | (491,362) | (321,677) |
Accumulated depreciation and amortisation [member] | Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | (43,726) | (18,526) |
Charge for the year | (7,590) | (9,320) |
Transfer | (17,619) | |
Eliminated upon disposals | 1,637 | |
Exchange difference | (439) | 102 |
Ending balance | (51,755) | (43,726) |
Accumulated impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | (4,244,688) | |
Ending balance | (4,244,688) | |
Accumulated impairment [member] | Freehold Land [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance | ||
Accumulated impairment [member] | Properties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | (2,575,694) | |
Ending balance | (2,575,694) | |
Accumulated impairment [member] | Leasehold Improvement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance | ||
Accumulated impairment [member] | Construction in progress [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance | ||
Accumulated impairment [member] | Machinery [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | (1,668,994) | |
Ending balance | (1,668,994) | |
Accumulated impairment [member] | Furnitures and Fittings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance | ||
Accumulated impairment [member] | Motor vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance | ||
Accumulated impairment [member] | Office equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
At December 31, 2022 and January 1, 2023 | ||
Charge for the year | ||
Ending balance |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Property Plant And Equipment Net | |
Recoverable amount of asset or cash-generating unit | $ 12,011,000 |
Impairment loss | $ 4,244,688 |
SCHEDULE OF RIGHT OF USE ASSETS
SCHEDULE OF RIGHT OF USE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Right-of-use-assets Net | |||
Right of use assets net, beginning balance | $ 157,068 | $ 274,098 | |
Depreciation charge for the year | (99,360) | (105,479) | $ (86,769) |
Exchange difference | 1,094 | (11,551) | |
Addition | 136,242 | ||
Lease modification | (6,035) | ||
Right of use assets net, ending balance | 189,009 | 157,068 | $ 274,098 |
Expense relating to short-term lease and other leases with lease terms end within 12 months | 1,283 | 66,078 | |
Total cash outflow for leases | $ 112,262 | $ 115,277 |
RIGHT-OF-USE-ASSETS, NET (Detai
RIGHT-OF-USE-ASSETS, NET (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 | |
Right-of-use-assets Net | |
Lease description | the Group leased offices for its operations. Lease contracts are entered into fixed terms from 1 year to 9 years (2022: 1 year to 9 years). No extension options are available for all leases. Lease terms are negotiated on an individual basis and contain wide range of different terms and conditions |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Cost, balance | $ 19,305,457 | |
Cost, balance | 20,516,939 | $ 19,305,457 |
Net book value | 20,516,939 | 19,305,457 |
Timber Concession and Cutting Rights [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net book value | 20,488,637 | 19,270,171 |
Other Intangible Asset [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Net book value | 28,302 | 35,286 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Cost, balance | 23,836,075 | 23,522,158 |
Additions | 2,162,073 | 314,168 |
Exchange difference | (251) | |
Cost, balance | 25,998,148 | 23,836,075 |
Accumulated amortization, balance | (4,530,618) | (3,622,988) |
Charge for the year | (950,624) | (904,315) |
Accumulated amortization, balance | (5,481,209) | (4,530,618) |
Gross carrying amount [member] | Timber Concession and Cutting Rights [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Cost, balance | 23,777,849 | 23,464,332 |
Additions | 2,162,073 | 313,517 |
Exchange difference | ||
Cost, balance | 25,939,922 | 23,777,849 |
Accumulated amortization, balance | (4,507,678) | (3,619,497) |
Charge for the year | (943,607) | (888,181) |
Accumulated amortization, balance | (5,451,285) | (4,507,678) |
Gross carrying amount [member] | Other Intangible Asset [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Cost, balance | 58,226 | 57,826 |
Additions | 651 | |
Exchange difference | (251) | |
Cost, balance | 58,226 | 58,226 |
Accumulated amortization, balance | (22,940) | (3,491) |
Charge for the year | (7,017) | (16,134) |
Accumulated amortization, balance | (29,924) | (22,940) |
Accumulated depreciation and amortisation [member] | ||
IfrsStatementLineItems [Line Items] | ||
Exchange difference | 33 | (3,315) |
Accumulated depreciation and amortisation [member] | Timber Concession and Cutting Rights [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exchange difference | ||
Accumulated depreciation and amortisation [member] | Other Intangible Asset [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exchange difference | $ 33 | $ (3,315) |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - Timber Concession and Cutting Rights [Member] | 12 Months Ended |
Dec. 31, 2023 USD ($) ha | |
IfrsStatementLineItems [Line Items] | |
Aggregate area | ha | 77,217 |
Payments to suppliers for goods and services | $ | $ 2,162,073 |
Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Finite useful lives | 23 years |
Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Finite useful lives | 40 years |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Inventories | ||
Raw materials | $ 549,541 | $ 4,427,134 |
Work in progress | 372,190 | 1,742,927 |
Finished goods | 7,307,695 | 6,566,406 |
Spare parts for production | 309,387 | 391,263 |
Total | $ 8,538,813 | $ 13,127,730 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Inventories | |||
Adjustments for writedown of inventories | $ 1,933,391 |
SUMMARY OF CURRENT AND NON-CURR
SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Summary Of Current And Non-current Prepayments | |||
Purchase of flooring and decking products (Note ) | [1] | $ 4,420,000 | $ 2,801,710 |
Purchase of logs (Note ) | [2] | 625,272 | 2,478,043 |
Harvesting work in concessions and wood processing services (Note ) | [3] | 1,980,680 | 2,890,222 |
Acquisition of cutting rights in timber concession (Note ) | [4] | 1,104,242 | |
Harvesting cost (Note ) | [5] | 1,568,630 | 600,185 |
Prepayment for acquisition of property, plant and equipment (Note ) | [6] | 300,000 | |
Others (Note 7) | [7] | 226,252 | 2,389,523 |
Total | 9,120,834 | 12,263,925 | |
Less: Amounts to be utilized within 12 months shown under current assets | (8,820,834) | (11,153,330) | |
Amounts to be utilized after 12 months shown under non-current assets | $ 300,000 | $ 1,110,595 | |
[1]Included in the prepayments, USD 4.4 2.8 Included in the prepayments, USD 0.6 2.5 2.0 2.9 At December 31, 2022, USD 1.1 Included in the prepayments, USD 1.6 million (2022: USD 0.6 million) was the harvesting cost to be transferred to inventories upon the receipt of logs. At December 31, 2023, included in the prepayments was an initial payment of USD 0.3 million upon signing of a contract by a subsidiary for acquiring a property in Peru at a sum of USD 1.0 million. In February 2024, the property has been transferred to the Group. The Group’s capital commitment is disclosed in Note 27. Remaining amounts of the prepayments were advance payments made to Group’s operating expenses of which certain expenses were prepaid for services more than 1 year and thus classified under non-current assets. |
SUMMARY OF CURRENT AND NON-CU_2
SUMMARY OF CURRENT AND NON-CURRENT PREPAYMENTS (Details) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Property prepayments acquisition | $ 0.3 | |
Contractual commitments for acquisition of property, plant and equipment | 1 | |
Flooring [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Prepayments | 4.4 | $ 2.8 |
Logs [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Prepayments | 0.6 | 2.5 |
Harvesting [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Prepayments | 2 | 2.9 |
Inventory recognised as of acquisition date | $ 1.6 | 0.6 |
Timber Concession [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Property prepayments acquisition | $ 1.1 |
SCHEDULE OF TRADE AND OTHER REC
SCHEDULE OF TRADE AND OTHER RECEIVABLES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Trade And Other Receivables Net | |||
Trade receivables – contracts with customers | $ 4,963,636 | $ 6,184,970 | $ 4,099,989 |
Less: Allowance for credit losses | (483,153) | (229,694) | $ (156,157) |
Trade receivables, net | 4,480,483 | 5,955,276 | |
Other receivables | 2,803,236 | 2,597,456 | |
Total | 7,283,719 | 8,552,732 | |
Beginning balance | 229,694 | 156,157 | |
Charged for the year | 253,459 | 73,537 | |
Ending balance | $ 483,153 | $ 229,694 |
SCHEDULE OF CREDIT CUSTOMERS RA
SCHEDULE OF CREDIT CUSTOMERS RANGING (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Trade And Other Receivables Net | |||
Not past due | $ 132,747 | $ 1,488,567 | |
Past due | 4,830,889 | 4,696,403 | |
Less: Allowance for credit losses | (483,153) | (229,694) | $ (156,157) |
Trade receivables, net | $ 4,480,483 | $ 5,955,276 |
SCHEDULE OF AGED ANALYSIS OF TR
SCHEDULE OF AGED ANALYSIS OF TRADE RECEIVABLES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Total | $ 4,347,736 | $ 4,466,709 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 589,052 | 2,016,964 |
Not Later Than Two Month [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 356,638 | 1,922,323 |
Not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 160,131 | 346,017 |
Later than one month and not later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 2,585,027 | 6,392 |
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 653,559 | 175,013 |
Later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | $ 3,329 |
TRADE AND OTHER RECEIVABLES, _3
TRADE AND OTHER RECEIVABLES, NET (Details Narrative) - USD ($) | Apr. 25, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||||
Allowance account for credit losses of trade receivables | $ 4,347,736 | $ 4,466,709 | ||
Aggregate carring amount value analysis | 3,241,915 | 181,405 | ||
Receivables from contracts with customers | $ 4,963,636 | $ 6,184,970 | $ 4,099,989 | |
Nonadjusting Event [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Receivables from contracts with customers | $ 600,000 |
SCHEDULE OF RESTRICTED BANK DEP
SCHEDULE OF RESTRICTED BANK DEPOSITS CASH AND BANK BALANCES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Notes and other explanatory information [abstract] | ||||
Restricted bank deposits | $ 628,156 | $ 603,341 | ||
Cash and bank balances | 3,979,416 | 5,082,587 | $ 3,545,458 | $ 3,554,117 |
Total | $ 4,607,572 | $ 5,685,928 |
SCHEDULE OF TRADE AND OTHER PAY
SCHEDULE OF TRADE AND OTHER PAYABLES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other payables [abstract] | ||
Trade payables | $ 2,350,888 | $ 1,992,691 |
Other payables | 978,536 | 2,218,216 |
Accruals | 1,008,768 | 3,521,304 |
Total | $ 4,338,192 | $ 7,732,211 |
SCHEDULE OF CONTRACT LIABILITIE
SCHEDULE OF CONTRACT LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Contract liabilities [abstract] | ||
Contract liabilities | $ 775,183 | $ 815,455 |
SCHEDULE OF BANK AND OTHER BORR
SCHEDULE OF BANK AND OTHER BORROWINGS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||
Total | $ 12,819,230 | $ 12,836,594 | |
Total | 12,819,230 | 12,836,594 | |
Secured bank borrowings (Note | [1] | 11,708,392 | 11,437,433 |
Unsecured bank borrowings | 1,110,838 | 1,399,161 | |
Total | 12,285,470 | 12,000,062 | |
Total | (12,285,470) | (12,000,062) | |
Amounts shown under non-current liabilities: | 533,760 | 836,532 | |
Total | 664,479 | ||
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 536,530 | ||
Non Related Parties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 127,949 | ||
Not later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 12,285,470 | ||
Total | 12,285,470 | ||
Total | 12,285,470 | 12,000,062 | |
Total | (12,285,470) | (12,000,062) | |
Total | 664,479 | ||
Later than one year and not later than two years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 486,964 | ||
Total | 486,964 | ||
Total | 486,964 | 572,566 | |
Total | |||
Later than two years and not later than three years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 46,796 | ||
Total | 46,796 | ||
Total | 46,796 | 263,966 | |
Total | |||
Floating interest rate [member] | |||
IfrsStatementLineItems [Line Items] | |||
Bank overdrafts - variable rate | 1,779,659 | 880,765 | |
Total | 2,557,815 | 395,592 | |
Total | 2,557,815 | 395,592 | |
Fixed interest rate [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 8,481,756 | 11,560,237 | |
Total | $ 8,481,756 | $ 11,560,237 | |
[1]Secured bank borrowings were pledged by the personal guarantee and the private real estate properties owned by our shareholders. |
SCHEDULE OF BANK AND OTHER BO_2
SCHEDULE OF BANK AND OTHER BORROWINGS (Details) (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 28, 2020 |
IfrsStatementLineItems [Line Items] | |||
Other borrowings | $ 664,479 | ||
Borrowings, interest rate | 6% | 8% | |
Ultimate Beneficial Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other borrowings | $ 536,530 | ||
Borrowings, interest rate | 8% | ||
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Other borrowings | $ 536,530 | ||
Non Related Parties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other borrowings | $ 127,949 | ||
Weighted average [member] | |||
IfrsStatementLineItems [Line Items] | |||
Weighted average effective interest rate | 5% | ||
Weighted average [member] | |||
IfrsStatementLineItems [Line Items] | |||
Weighted average effective interest rate | 6% | ||
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings, interest rate | 7.50% | ||
Top of range [member] | Ultimate Beneficial Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings, interest rate | 8% |
SCHEDULE OF AMOUNTS DUE TO AN U
SCHEDULE OF AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Total | $ 17,322,288 | $ 21,619,313 |
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 5,021,638 | 4,531,760 |
Later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | $ 12,300,650 | $ 17,087,553 |
AMOUNTS DUE TO AN ULTIMATE BE_3
AMOUNTS DUE TO AN ULTIMATE BENEFICIAL SHAREHOLDER (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 28, 2020 |
IfrsStatementLineItems [Line Items] | |||
[custom:AmountsDueToUltimateBeneficialShareholdersNonCurrent-0] | $ 12,300,650 | $ 12,300,493 | |
Borrowings, interest rate | 6% | 8% | |
Borrowings | $ 12,819,230 | 12,836,594 | |
Principal amount current | 641,294 | ||
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings, interest rate | 7.50% | ||
Ultimate Beneficial Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Loan balance | $ 895,645 | 2,693,351 | |
Borrowings, interest rate | 8% | ||
Borrowings | $ 1,217,405 | $ 2,093,709 | |
Ultimate Beneficial Shareholder [Member] | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings, interest rate | 8% | 5% | |
Ultimate Beneficial Shareholder [Member] | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings, interest rate | 8% |
SCHEDULE OF LEASE LIABILITIES (
SCHEDULE OF LEASE LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Lease liabilities gross | $ 198,268 | $ 173,458 |
Less: Amount due for settlement with 12 months shown under current liabilities | (64,296) | (107,945) |
Amount due for settlement after 12 months shown under non-current liabilities | 133,972 | 65,513 |
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Lease liabilities gross | 64,296 | 107,945 |
Later than one year and not later than two years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Lease liabilities gross | 41,440 | 39,394 |
Later than two years and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Lease liabilities gross | $ 92,532 | $ 26,119 |
SCHEDULE OF LEASE OBLIGATIONS (
SCHEDULE OF LEASE OBLIGATIONS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Euro Member Countries, Euro | ||
IfrsStatementLineItems [Line Items] | ||
Lease Obligations | $ 42,459 | $ 54,727 |
China, Yuan Renminbi | ||
IfrsStatementLineItems [Line Items] | ||
Lease Obligations | $ 131,076 | $ 62,289 |
LEASE LIABILITIES (Details Narr
LEASE LIABILITIES (Details Narrative) | Dec. 31, 2023 | Dec. 31, 2022 |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 3% | 3% |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 5% | 4.50% |
SCHEDULE OF CONVERTIBLE BONDS R
SCHEDULE OF CONVERTIBLE BONDS RECOGNIZED (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Convertible Bonds | ||
At January 1 | $ 12,210,327 | $ 12,208,260 |
Interest expenses | 684,163 | 972,045 |
Interest paid | (684,163) | (972,045) |
Converted to shares | (12,210,327) | |
Exchange difference | 2,067 | |
At December 31 | $ 12,210,327 |
CONVERTIBLE BONDS (Details Narr
CONVERTIBLE BONDS (Details Narrative) | Dec. 31, 2023 | Oct. 09, 2023 shares | Sep. 28, 2020 USD ($) shares | Sep. 28, 2020 HKD ($) shares |
Convertible Bonds | ||||
Accrued interest rate percentage | 6% | 8% | 8% | |
Principal amount | $ 12,272,735 | $ 95,200,625 | ||
[custom:ConvertibleBondsConversionShares-0] | 20,475,377 | 20,475,377 | ||
Outstanding convertible bonds | 20,475,377 | |||
Effective interest rate percentage | 8% |
SCHEDULE OF SHARE CAPITAL (Deta
SCHEDULE OF SHARE CAPITAL (Details) (Parenthetical) - shares | Dec. 31, 2023 | Sep. 14, 2023 | Dec. 31, 2022 |
Share Capital | |||
Ordinary shares | 132,425,321 | 6,686,944 | 105,263,000 |
SCHEDULE OF SHARE CAPITAL (De_2
SCHEDULE OF SHARE CAPITAL (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 14, 2023 | |
Share Capital | |||
Ordinary shares | 132,425,321 | 105,263,000 | 6,686,944 |
At January 1 | $ 105,263 | $ 105,263 | |
Issue of new shares for the initial public offering | 6,687 | ||
Issue of new shares for the conversion of Convertible Bonds | 20,475 | ||
At December 31 | $ 132,425 | $ 105,263 |
SHARE CAPITAL (Details Narrativ
SHARE CAPITAL (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 8 Months Ended | ||||
Sep. 14, 2023 | Sep. 14, 2023 | Dec. 31, 2023 | Oct. 09, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Paid up capital ordinary shares | 6,686,944 | 6,686,944 | 132,425,321 | 105,263,000 | |
Over allotment price | $ 9 | ||||
Initial Public Offering including over-allotment | $ 7.5 | ||||
Initial Public Offering including over-allotment | $ 5.1 | ||||
Outstanding convertible bonds | 20,475,377 | ||||
Authorized shares | 200,000,000 | 200,000,000 | |||
Par value per share | $ 0.001 | ||||
American Depositary Shares [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Paid up capital ordinary shares | 835,868 | 835,868 |
SCHEDULE OF REVENUE AND SEGMENT
SCHEDULE OF REVENUE AND SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | $ 25,456,775 | $ 55,339,277 | $ 47,684,127 |
Reportable segment results | (11,976,182) | 5,210,820 | 1,960,543 |
Direct Purchase ODM [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 15,581,574 | 37,439,109 | 28,721,441 |
Reportable segment results | (128,996) | 6,118,794 | 3,441,324 |
Direct Purchase ODM [Member] | Logs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 10,024,250 | 27,272,065 | 20,035,002 |
Direct Purchase ODM [Member] | Flooring [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 1,844,633 | 4,407,737 | 4,167,894 |
Direct Purchase ODM [Member] | Decking [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 3,712,691 | 5,759,307 | 4,518,545 |
Direct Purchase ODM [Member] | Sawn Timber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Manufacturing [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 9,875,201 | 17,900,168 | 18,962,686 |
Reportable segment results | (9,651,185) | 1,678,217 | (204,274) |
Manufacturing [Member] | Logs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 390,739 | 526,192 | 1,110,996 |
Manufacturing [Member] | Flooring [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 4,204,279 | 7,585,698 | 7,771,130 |
Manufacturing [Member] | Decking [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 3,945,418 | 8,040,685 | 7,513,870 |
Manufacturing [Member] | Sawn Timber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 1,334,765 | 1,747,593 | 2,566,690 |
Unallocated [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Reportable segment results | (2,196,001) | (2,586,191) | (1,276,507) |
Unallocated [Member] | Logs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Unallocated [Member] | Flooring [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Unallocated [Member] | Decking [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Unallocated [Member] | Sawn Timber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | |||
Reportable segments [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 25,456,775 | 55,339,277 | 47,684,127 |
Reportable segment results | (11,976,182) | 5,210,820 | 1,960,543 |
Reportable segments [member] | Logs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 10,414,989 | 27,798,257 | 21,145,998 |
Reportable segments [member] | Flooring [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 6,048,912 | 11,993,435 | 11,939,024 |
Reportable segments [member] | Decking [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | 7,658,109 | 13,799,992 | 12,032,415 |
Reportable segments [member] | Sawn Timber [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue from external customers and segment revenue | $ 1,334,765 | $ 1,747,593 | $ 2,566,690 |
SCHEDULE OF REPORTABLE SEGMENT
SCHEDULE OF REPORTABLE SEGMENT ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Reportable segment assets | $ 54,320,888 | $ 68,046,687 |
Reportable segment liabilities | (36,139,200) | (55,555,011) |
Direct Purchase ODM [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Reportable segment assets | 17,318,638 | 17,601,758 |
Reportable segment liabilities | (15,727,139) | (19,131,264) |
Manufacturing [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Reportable segment assets | 36,414,457 | 49,294,010 |
Reportable segment liabilities | (19,069,138) | (23,217,801) |
Unallocated [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Reportable segment assets | 587,793 | 1,150,919 |
Reportable segment liabilities | (1,342,923) | (13,205,946) |
Reportable segments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Reportable segment assets | 54,320,888 | 68,046,687 |
Reportable segment liabilities | $ (36,139,200) | $ (55,555,011) |
SCHEDULE OF REVENUES BY GEOGRAP
SCHEDULE OF REVENUES BY GEOGRAPHICAL LOCATIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
At a point in time | $ 25,456,775 | $ 55,339,277 | $ 47,684,127 |
Goods or services transferred at point in time [member] | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | 25,456,775 | 55,339,277 | 47,684,127 |
CHINA | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | 15,491,537 | 37,860,768 | 32,366,974 |
Europe [Member] | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | 8,094,986 | 15,278,355 | 12,788,272 |
South America [Member] | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | 1,364,773 | 1,531,560 | 2,306,726 |
North America [Member] | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | 110,057 | 37,107 | 171,354 |
South East Asia [Member] | |||
IfrsStatementLineItems [Line Items] | |||
At a point in time | $ 395,422 | $ 631,487 | $ 50,801 |
SCHEDULE OF OTHER INCOME, NET (
SCHEDULE OF OTHER INCOME, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Sales of side products and spare parts | $ 619,830 | $ 929,780 | $ 791,110 |
VAT tax concessions | 449,097 | 762,327 | 870,411 |
Profit (loss) on disposal of property, plant and equipment | 3,669 | 8,423 | (50,116) |
Government grants | 700 | ||
Gain on lease modification | 703 | ||
Others | 40,352 | 122,632 | 13,418 |
Total | $ 1,113,651 | $ 1,823,162 | $ 1,625,523 |
SCHEDULE OF FINANCE COSTS (Deta
SCHEDULE OF FINANCE COSTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance Costs | |||
Interest expenses on bank borrowings | $ 605,979 | $ 421,753 | $ 318,014 |
Interest expenses on other borrowings | 4,638 | ||
Interest expenses on shareholder loans | 197,066 | 405,872 | 429,927 |
Interest expenses on convertible bonds | 684,163 | 972,045 | 979,654 |
Interest expenses on lease liabilities | 6,306 | 9,320 | 9,726 |
Bank charges | 106,908 | 119,302 | 134,854 |
Total | $ 1,605,060 | $ 1,928,292 | $ 1,872,175 |
SCHEDULE OF (LOSS) PROFIT BEFOR
SCHEDULE OF (LOSS) PROFIT BEFORE INCOME TAX (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Profit Before Income Tax | |||
Cost of revenue | $ 23,071,638 | $ 35,423,411 | $ 31,272,086 |
Depreciation expenses of: | |||
- Property, plant and equipment | 863,287 | 707,747 | 509,177 |
- Right-of-use assets | 99,360 | 105,479 | 86,769 |
Amortization of intangible assets | 950,624 | 904,315 | 834,575 |
Expected credit losses recognized on trade receivables | 253,459 | 73,537 | 96,891 |
Write-down of inventories, included in cost of revenue | 1,933,391 | ||
Impairment loss recognized on property, plant and equipment | 4,244,688 | ||
Auditor’s remuneration | 204,246 | 212,268 | 10,977 |
Employee benefits expenses (including directors’ remuneration): | |||
- Salaries and allowances | 3,375,361 | 3,877,068 | 3,104,038 |
- Pension scheme contribution | $ 264,116 | $ 396,232 | $ 412,822 |
SCHEDULE OF INCOME TAX PROVISIO
SCHEDULE OF INCOME TAX PROVISION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Total | $ (42,854) | $ 431,925 | $ 628,253 |
HONG KONG | |||
IfrsStatementLineItems [Line Items] | |||
Current tax | 29,186 | 431,925 | 622,963 |
(Over) under-provision of tax in prior years | (72,040) | 5,290 | |
Total | $ (42,854) | $ 431,925 | $ 628,253 |
SCHEDULE OF INCOME TAX (CREDITS
SCHEDULE OF INCOME TAX (CREDITS) EXPENSES RECONCILED TO (LOSS) PROFIT BEFORE INCOME TAX (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
(Loss) profit before income tax | $ (11,976,182) | $ 5,210,820 | $ 1,960,543 |
Total | (42,854) | 431,925 | 628,253 |
HONG KONG | |||
IfrsStatementLineItems [Line Items] | |||
(Loss) profit before income tax | (11,976,182) | 5,210,820 | 1,960,543 |
Tax at the respective income tax rates | (1,418,569) | 847,763 | 623,576 |
Tax effect of expenses not deductible for tax purpose | 1,683,289 | 649,932 | 3,802,565 |
Tax effect of income not taxable for tax purpose | (235,534) | (850,911) | (4,037,252) |
Tax effect of tax losses not recognized | 288,070 | ||
Utilization of tax losses previously not recognized | (214,859) | (128,876) | |
(Over) under-provision in respect of prior years | (72,040) | 5,290 | |
Others | 74,880 | ||
Total | $ (42,854) | $ 431,925 | $ 628,253 |
INCOME TAX (CREDITS) EXPENSES_2
INCOME TAX (CREDITS) EXPENSES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PERU | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 29.50% | 29.50% | 29.50% |
PERU | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 5% | 5% | 5% |
FRANCE | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 25% | 33.30% | 26.50% |
CHINA | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 25% | 25% | 25% |
MACAO | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 12% | 12% | 12% |
HONG KONG | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 16.50% | 16.50% | 16.50% |
SCHEDULE OF SPECIFIC CATEGORIES
SCHEDULE OF SPECIFIC CATEGORIES OF OPTIONS (Details) - Equity Settled Share Option Scheme [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Exercise Price One [Member] | |
IfrsStatementLineItems [Line Items] | |
Date of grant | September 30, 2019 |
Exercise period | September 30, 2019–September 29, 2029 |
Exercise Price | $ 4.661 |
Exercise Price Two [Member] | |
IfrsStatementLineItems [Line Items] | |
Date of grant | August 18, 2020 |
Exercise period | August 18, 2020 – August 17, 2030 |
Exercise Price | $ 4.661 |
SCHEDULE OF MOVEMENTS OF THE SC
SCHEDULE OF MOVEMENTS OF THE SCHEME (Details) - Equity Settled Share Option Scheme [Member] | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
IfrsStatementLineItems [Line Items] | ||
Option, Outstanding Beginning | 8,160,000 | 8,160,000 |
Option, Granted during year | ||
Option, Exercised during year | ||
Option, Forfeited during year | (360,000) | |
Option, Expired during year | ||
Option, Outstanding Ending | 7,800,000 | 8,160,000 |
Exercisable at the end of the year | 7,800,000 | 8,160,000 |
Weighted average exercise price, Outstanding, Beginning | $ / shares | $ 4.661 | $ 4.661 |
Weighted average exercise price, Granted during year | $ / shares | ||
Weighted average exercise price, Exercised during year | $ / shares | ||
Weighted average exercise price, Forfeited during year | $ / shares | ||
Weighted average exercise price, Expired during year | $ / shares | ||
Weighted average exercise price, Outstanding, Ending | $ / shares | $ 4.661 | $ 4.661 |
Exercise Price One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Option, Outstanding Beginning | 6,957,000 | 6,957,000 |
Option, Granted during year | ||
Option, Exercised during year | ||
Option, Forfeited during year | (360,000) | |
Option, Expired during year | ||
Option, Outstanding Ending | 6,597,000 | 6,957,000 |
Exercise Price Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Option, Outstanding Beginning | 1,203,000 | 1,203,000 |
Option, Granted during year | ||
Option, Exercised during year | ||
Option, Forfeited during year | ||
Option, Expired during year | ||
Option, Outstanding Ending | 1,203,000 | 1,203,000 |
SCHEDULE OF MEASUREMENT OF FAIR
SCHEDULE OF MEASUREMENT OF FAIR VALUE SHARE OPTIONS GRANTED (Details) - Equity Settled Share Option Scheme [Member] | 12 Months Ended |
Dec. 31, 2023 shares $ / shares | |
IfrsStatementLineItems [Line Items] | |
Underlying stock price | $ 0.235 |
Exercise price | $ 4.661 |
Expected volatility | 286% |
Expected life | shares | 10 |
Risk-free rate | 1.20% |
Expected dividend yield |
SHARE-BASED PAYMENTS TRANSACT_3
SHARE-BASED PAYMENTS TRANSACTIONS (Details Narrative) - Equity Settled Share Option Scheme [Member] | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 HKD ($) shares $ / shares | |
IfrsStatementLineItems [Line Items] | |||
Number of options outstanding | shares | 7,800,000 | 8,160,000 | 8,160,000 |
Percentage of share options granted in sharebased payment arrangement | 6% | 8% | |
Maximum percentage of share options granted in sharebased payment arrangement | 10% | ||
Maximum percentage of share options granted to individual in sharebased payment arrangement | 1% | ||
Price per option | $ 1 | ||
Exercise price of options granted | 4.661 | ||
Options exercised | 4.661 | $ 4.661 | $ 4.661 |
Fair values of options granted | $ | $ 0 | ||
American Depositary Shares [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exercise price of options granted | $ 37.288 |
SCHEDULE OF BALANCE DUE TO RELA
SCHEDULE OF BALANCE DUE TO RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ultimate Beneficial Shareholder One [Member] | Mr Hon Pan Se [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of related party relationship | Long-term loans (Note 14) | ||
Amounts payable, related party transactions | $ 12,300,650 | $ 17,087,553 | |
Ultimate Beneficial Shareholder Two [Member] | Mr Hon Pan Se [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of related party relationship | Short-term loans (Note 14) | ||
Amounts payable, related party transactions | $ 5,021,638 | 4,531,760 | |
Ultimate Beneficial Shareholder Three [Member] | Mr Hon Pan Se [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of related party relationship | Convertible bonds (Note 16) | ||
Amounts payable, related party transactions | 1,282,589 | ||
Ultimate Beneficial Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of related party relationship | Amounts due to an ultimate beneficial shareholder | ||
Amounts payable, related party transactions | $ 17,322,288 | 22,901,902 | |
Ultimate Beneficial Shareholder [Member] | Mr Hon Pan Se [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Amounts payable, related party transactions | $ 197,066 | 405,872 | $ 429,927 |
Related Party Ultimate Beneficial Share holder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of nature of related party relationship | Other borrowings (Note 13(b)) | ||
Amounts payable, related party transactions | $ 536,530 |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ultimate Beneficial Shareholder [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Outstanding of related party transactions | $ 17,322,288 | $ 22,901,902 | |
Ultimate Beneficial Shareholder [Member] | Mr Hon Pan Se [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of transactions with related party | Interest expense on shareholder loans | ||
Outstanding of related party transactions | $ 197,066 | 405,872 | $ 429,927 |
Ultimate Beneficial Shareholder [Member] | Mr Hon Pan Se One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of transactions with related party | Interest expense on convertible bonds | ||
Outstanding of related party transactions | $ 71,865 | 102,149 | 51,875 |
Joint ventures where entity is venturer [member] | Fo Shan Sunde Daziran [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of transactions with related party | Lease payments made | ||
Outstanding of related party transactions | $ 55,263 | 24,197 | 21,156 |
Joint ventures where entity is venturer [member] | Fo Shan Sunde Changcheng [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Description of transactions with related party | Lease payments made | ||
Outstanding of related party transactions | $ 6,523 |
SCHEDULE OF FINANCIAL INSTRUMEN
SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments Financial Risks And Capital Risks Management | ||
Financial assets at amortized cost | $ 11,891,291 | $ 14,238,660 |
Financial liabilities at amortized cost | $ (34,135,421) | $ (50,877,141) |
SCHEDULE OF FINANCIAL ASSETS AN
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Hong Kong, Dollars | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | $ 1,234,627 | $ 451,108 |
Financial liabilities | 6,128,951 | 20,845,542 |
Euro Member Countries, Euro | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 6,606,145 | 10,387,503 |
Financial liabilities | 7,777,874 | 8,119,790 |
China, Yuan Renminbi | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 532,019 | 169,378 |
Financial liabilities | 605,746 | 48,986 |
Peru, Nuevos Soles | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 2,806,064 | 2,205,594 |
Financial liabilities | 1,475,495 | 2,347,271 |
Macau, Patacas | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 252 | |
Financial liabilities | $ 15,559 | $ 54,697 |
SCHEDULE OF SENSITIVITY CHANGE
SCHEDULE OF SENSITIVITY CHANGE IN FOREIGN CURRENCIES RISK (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Hong Kong, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Sensitivity increase decrease in foreign currencies | $ (244,716) | $ (1,019,722) | $ (1,153,144) |
Euro Member Countries, Euro | |||
IfrsStatementLineItems [Line Items] | |||
Sensitivity increase decrease in foreign currencies | (48,365) | 113,386 | (108,570) |
China, Yuan Renminbi | |||
IfrsStatementLineItems [Line Items] | |||
Sensitivity increase decrease in foreign currencies | (3,686) | 6,020 | (213) |
Peru, Nuevos Soles | |||
IfrsStatementLineItems [Line Items] | |||
Sensitivity increase decrease in foreign currencies | (48,904) | (7,804) | 93,749 |
Macau, Patacas | |||
IfrsStatementLineItems [Line Items] | |||
Sensitivity increase decrease in foreign currencies | $ (765) | $ (2,735) | $ (9,760) |
SCHEDULE OF INTERNAL CREDIT RIS
SCHEDULE OF INTERNAL CREDIT RISK GRADING (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Low Risk [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of internal credit risk | The counterparty has a low risk of default and does not have any past-due amounts |
Low Risk [Member] | Other Financial Assets [Member] | 12-month expected credit losses [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | 12-month ECL |
Low Risk [Member] | Financial instruments not credit-impaired [member] | Trade receivables [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | 12-month |
Low Risk [Member] | Financial instruments credit-impaired [member] | Other Financial Assets [Member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Lifetime ECL - credit impaired |
Watch List [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of internal credit risk | Debtor frequently repays after due dates but usually settle in full |
Watch List [Member] | Other Financial Assets [Member] | 12-month expected credit losses [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | 12-month ECL |
Watch List [Member] | Financial instruments not credit-impaired [member] | Trade receivables [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Lifetime ECL – not credit- impaired |
Doubtful [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of internal credit risk | There have been significant increases in credit risk since initial recognition through information developed internally or external resources |
Doubtful [Member] | Financial instruments not credit-impaired [member] | Trade receivables [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Lifetime ECL – not credit-impaired |
Doubtful [Member] | Financial instruments not credit-impaired [member] | Other Financial Assets [Member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Lifetime ECL - not credit-impaired |
Loss [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of internal credit risk | There is evidence indicating the asset is credit impaired |
Loss [Member] | Financial instruments credit-impaired [member] | Trade receivables [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Lifetime ECL – credit-impaired |
Write Off [Member] | |
IfrsStatementLineItems [Line Items] | |
Description of internal credit risk | There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery |
Write Off [Member] | Trade receivables [member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Amount is written off |
Write Off [Member] | Other Financial Assets [Member] | |
IfrsStatementLineItems [Line Items] | |
Information on how entity determined that financial assets are credit-impaired | Amount is written off |
SCHEDULE OF CREDIT RISK (Detail
SCHEDULE OF CREDIT RISK (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Gross carrying amount | $ 4,963,636 | $ 6,184,970 | $ 4,099,989 | |
Allowance for credit losses | (483,153) | (229,694) | (156,157) | |
Other receivables | 2,803,236 | 2,597,456 | ||
Restricted bank deposits | 628,156 | 603,341 | ||
Cash and bank balances | 3,979,416 | 5,082,587 | $ 3,545,458 | $ 3,554,117 |
Lifetime expected credit losses [member] | Expected credit losses individually assessed [member] | Low [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Gross carrying amount | 132,746 | 1,488,567 | ||
Allowance for credit losses | ||||
Lifetime expected credit losses [member] | Expected credit losses individually assessed [member] | Watch List [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Gross carrying amount | 4,550,560 | 4,510,354 | ||
Allowance for credit losses | (206,152) | (43,645) | ||
Lifetime expected credit losses [member] | Expected credit losses individually assessed [member] | Doubtful [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Gross carrying amount | 280,330 | 186,049 | ||
Allowance for credit losses | (277,001) | (186,049) | ||
12-month expected credit losses [member] | AA [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Restricted bank deposits | 628,156 | 603,341 | ||
12-month expected credit losses [member] | AA Plus [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash and bank balances | 3,979,416 | 5,082,587 | ||
12-month expected credit losses [member] | Low [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Other receivables | $ 2,803,236 | $ 2,597,456 |
SCHEDULE OF NON DERIVATIVE FINA
SCHEDULE OF NON DERIVATIVE FINANCIAL LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||
Current trade payables | $ 2,350,888 | $ 1,992,691 | |
Other current payables | 978,536 | 2,218,216 | |
Borrowings | 12,819,230 | 12,836,594 | |
Other borrowings | 664,479 | ||
Other liabilities | 17,322,288 | 21,619,313 | |
[custom:ConvertibleBondsCurrent-0] | 12,210,327 | $ 12,208,260 | |
Financial liabilities at amortised cost | 34,135,421 | 50,877,141 | |
[custom:BankAndOtherBorrowing-0] | 12,836,594 | ||
Not later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current trade payables | 2,350,888 | 1,992,691 | |
Other current payables | 978,536 | 2,218,216 | |
Borrowings | 12,285,470 | ||
Other borrowings | 664,479 | ||
Other liabilities | 5,021,638 | 4,531,760 | |
[custom:ConvertibleBondsCurrent-0] | 12,210,327 | ||
Financial liabilities at amortised cost | 21,301,011 | 32,953,056 | |
[custom:BankAndOtherBorrowing-0] | 12,000,062 | ||
Later than one year and not later than two years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current trade payables | |||
Other current payables | |||
Borrowings | 486,964 | ||
Other borrowings | |||
Other liabilities | 4,787,060 | ||
[custom:ConvertibleBondsCurrent-0] | |||
Financial liabilities at amortised cost | 486,964 | 5,359,626 | |
[custom:BankAndOtherBorrowing-0] | 572,566 | ||
Later than two years and not later than three years [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current trade payables | |||
Other current payables | |||
Borrowings | 46,796 | ||
Other borrowings | |||
Other liabilities | 12,300,650 | 12,300,493 | |
[custom:ConvertibleBondsCurrent-0] | |||
Financial liabilities at amortised cost | $ 12,347,446 | 12,564,459 | |
[custom:BankAndOtherBorrowing-0] | $ 263,966 |
SCHEDULE OF DEBT TO EQUITY RATI
SCHEDULE OF DEBT TO EQUITY RATIO (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments Financial Risks And Capital Risks Management | ||
Total debts | $ 36,139,200 | $ 55,555,011 |
Total equity | $ 18,181,688 | $ 12,491,676 |
Debt to equity rate | 199% | 445% |
SCHEDULE OF CONCENTRATIONS (Det
SCHEDULE OF CONCENTRATIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 25,456,775 | $ 55,339,277 | $ 47,684,127 |
Amount of the Group's revenue, percentage | 100% | 100% | 100% |
Trade receivables – contracts with customers | $ 4,963,636 | $ 6,184,970 | $ 4,099,989 |
Amount of the Group's accounts receivable, percentage | 100% | 100% | 100% |
Customer A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 7,188,782 | $ 10,810,773 | $ 10,754,805 |
Amount of the Group's revenue, percentage | 28.20% | 19.50% | 22.60% |
Trade receivables – contracts with customers | $ 2,738,407 | ||
Amount of the Group's accounts receivable, percentage | 55.20% | ||
Customer C [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | $ 261,155 | $ 5,528,442 | $ 2,702,037 |
Amount of the Group's revenue, percentage | 1% | 10% | 5.70% |
Trade receivables – contracts with customers | $ 2,440,997 | $ 524,950 | |
Amount of the Group's accounts receivable, percentage | 39.50% | 12.80% | |
Customer B [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables – contracts with customers | $ 1,105,487 | ||
Amount of the Group's accounts receivable, percentage | 22.30% | ||
Customer D [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables – contracts with customers | $ 946,070 | $ 200,520 | |
Amount of the Group's accounts receivable, percentage | 15.30% | 4.90% | |
Customer E [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables – contracts with customers | $ 780,427 | $ 1,232,501 | |
Amount of the Group's accounts receivable, percentage | 12.60% | 30.10% | |
Customer F [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables – contracts with customers | $ 730,553 | $ 165,711 | |
Amount of the Group's accounts receivable, percentage | 11.80% | 4% | |
Customer G [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables – contracts with customers | $ 110,532 | $ 434,342 | |
Amount of the Group's accounts receivable, percentage | 1.80% | 10.60% |
FINANCIAL INSTRUMENTS, FINANC_3
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments Financial Risks And Capital Risks Management | ||||
Increase decrease in sensitivity percent | 5% | |||
Borrowings, interest rate basis | 50 basis points | |||
Increase decrease in profit | $ 21,687 | $ 6,382 | $ 36,838 | |
Concentrations of risk | The Group has concentration of credit risk as 55.2% (2022: 39.5%, 2021: 30.1%) and 89.9% (2022: 85.4%, 2021: 66.0%) of the total trade receivables was due from the Group’s largest customer and the five largest customers respectively. In order to minimize the credit risk, the management of the Group has delegated a team responsible for determination of credit limits and credit approvals. | |||
Impairment loss recognised in profit or loss, trade receivables | $ 253,459 | 73,537 | 156,157 | |
Cash and cash equivalents | 3,979,416 | 5,082,587 | $ 3,545,458 | $ 3,554,117 |
Current assets | 29,752,919 | 38,902,819 | ||
Current liabilities | $ 23,170,818 | $ 37,565,413 |
SCHEDULE OF RECONCILIATIONS OF
SCHEDULE OF RECONCILIATIONS OF LIABILITIES FROM FINANCING ACTIVITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | $ 46,839,692 | $ 47,626,482 |
Increase through new leases, liabilities arising from financing activities | 128,273 | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 33,735,256 | 32,245,289 |
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (39,114,402) | (34,790,270) |
Increase (decrease) through other changes, liabilities arising from financing activities | (12,210,327) | |
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 1,498,152 | 1,808,990 |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 127,621 | (50,799) |
Liabilities arising from financing activities at end of period | 31,004,265 | 46,839,692 |
Bank Borrowings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | 12,836,594 | |
Increase through new leases, liabilities arising from financing activities | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 30,492,404 | |
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (31,243,426) | |
Increase (decrease) through other changes, liabilities arising from financing activities | ||
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 605,979 | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 127,679 | |
Liabilities arising from financing activities at end of period | 12,819,230 | 12,836,594 |
Other Borrowings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | ||
Increase through new leases, liabilities arising from financing activities | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 663,211 | |
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (4,638) | |
Increase (decrease) through other changes, liabilities arising from financing activities | ||
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 4,638 | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 1,268 | |
Liabilities arising from financing activities at end of period | 664,479 | |
Convertible Bonds [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | 12,210,327 | 12,208,260 |
Increase through new leases, liabilities arising from financing activities | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | ||
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (684,163) | (972,045) |
Increase (decrease) through other changes, liabilities arising from financing activities | (12,210,327) | |
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 684,163 | 972,045 |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 2,067 | |
Liabilities arising from financing activities at end of period | 12,210,327 | |
Amounts Due To An Ultimate Beneficial Shareholder [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | 21,619,313 | 19,386,048 |
Increase through new leases, liabilities arising from financing activities | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 2,579,641 | 9,697,902 |
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (7,069,913) | (7,934,582) |
Increase (decrease) through other changes, liabilities arising from financing activities | ||
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 197,066 | 405,872 |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (3,819) | (5,927) |
Liabilities arising from financing activities at end of period | 17,322,288 | 21,619,313 |
Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | 173,458 | 292,151 |
Increase through new leases, liabilities arising from financing activities | 128,273 | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | ||
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (112,262) | (115,277) |
Increase (decrease) through other changes, liabilities arising from financing activities | ||
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 6,306 | 9,320 |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | 2,493 | (12,736) |
Liabilities arising from financing activities at end of period | 198,268 | 173,458 |
Bank and Other Borrowings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities arising from financing activities at beginning of period | $ 12,836,594 | 15,740,023 |
Increase through new leases, liabilities arising from financing activities | ||
Increase (decrease) through financing cash flows, liabilities arising from financing activities | 22,477,387 | |
[custom:IncreaseThroughRepaymentsMadeLiabilitiesArisingFromFinancingActivities] | (25,768,366) | |
Increase (decrease) through other changes, liabilities arising from financing activities | ||
[custom:IncreaseThroughInterestExpensesLiabilitiesArisingFromFinancingActivities] | 421,753 | |
Increase (decrease) through effect of changes in foreign exchange rates, liabilities arising from financing activities | (34,203) | |
Liabilities arising from financing activities at end of period | $ 12,836,594 |
SCHEDULE OF CAPITAL COMMITMENT
SCHEDULE OF CAPITAL COMMITMENT (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments And Contingencies | ||
Property, plant and equipment | $ 700,000 |