01-09-2023, 06:13 PM
(29-08-2023, 05:42 PM)weijian Wrote: [ -> ](12-08-2023, 09:55 PM)Yoyo Wrote: [ -> ]YZJFH 1H 2023
Note 15 Debt Investment (DI)
Allowance for impairment loss
Opening 255,144
Ending 228,299
Reversal to P&L (ie writeback) 8,493
Debt Investment written off is 18,352 ie 255,144 - 228,299 - 8,493
(Update - 1H2023 Result Presentation stated that there is no utilisation, hence the difference is due to currency translation ).
Redemption 452,007 (vs 1H2022 of 1,187,773)
New DI 474,373 (vs 1H2022 914,656)
As at end Dec 2022, the current portion of DI is 2,264,600.
1. The 452m redemption (in the first 6 months) represents 20% of the current DI (to be redeemed within 12 months)
2. Some of these current DI may have been refinanced/repackaged with a longer repayment period, resulting in amount rollover to the non-current portion.
Issue - While it is management intention to scale down DI, is it reasonable to expect a complete STOP to approving new DI for the half year? Don't get me wrong, I would very much like to see a meaningful reduction in the total DI amount.
Note 16 Trade and Other Receivables
1. Allowance for impairment of loans to non-related parties – microfinance
The reduction is likely to be loan written off of 1,779
2. Nature of the 105,309 increase in other receivable - non-related parties - other assets (money placement for some yet to disclosed business venture?)
hi yoyo,
Thanks for helping to explain the movement of the loss allowances here. Would you be able to see if my explanation of the NPL movement is correct? (it is found under slide 16/17 of the presentation
1H23 ppt: https://links.sgx.com/FileOpen/YZJFH%201...eID=769833
There is another item on YZJFH's ppt that I would like to seek VBs' confirmation of my understanding. This is in reference to slide 17 and 18 of 1H23, with regards to:
(1) NPL
(2) Allowances for/(reversal of allowances for) credit and other losses
(3) Utilisation of allowance for impairment loss
My understanding:
(1) Loan is classified as "NPL" immediately when no principal payments come due.
(2) "Allowances for/(reversal of allowances for) credit and other losses" are defined as loans where the terms are not amended and legal action is underway to seize the collateral/look for the guarantor etc. Allowances for credit loss are recognized in P/L (and hence to equity). In addition, from the cashflow statement, it is a cash item too (since there is no repayment). Recovery proceeds (if any) that exceed the amount recognized, will be reversed. The same will be reversed in the P/L, equity and cashflow statement
(3) "Utilisation of allowance for impairment loss" is incurred when there is no prospect of recovering the debt. Since it is already recognized in P/L in (2), there is no changes to the P/L and balance sheet anymore as well.