Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Sky Solar Holdings, Ltd. |
Entity Central Index Key | 1,594,124 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 419,546,514 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME OR EXPENSE - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue | ||||
Related parties | $ 286 | $ 788 | $ 4,450 | |
Non-related parties | 56,447 | 65,137 | 42,705 | |
Total revenue | 56,733 | 65,925 | 47,155 | |
Cost of sales and services | (23,201) | (30,911) | (18,533) | |
Gross profit | 33,532 | 35,014 | 28,622 | |
Impairment loss on IPP solar parks | (5,221) | (2,151) | (1,835) | |
Provision on receivables | (1,071) | |||
Selling expenses | (554) | (882) | (1,171) | |
Administrative expenses | (25,110) | (29,744) | (22,556) | |
Other operating income | 2,068 | 13,163 | 197 | |
Reversal of provision for other taxes | 6,025 | |||
Profit from operations | 4,715 | 15,400 | 8,211 | |
Investment income | 7,891 | 498 | 349 | |
Other losses | (39,986) | (4,971) | (6,901) | |
Finance costs | (12,200) | (6,368) | (3,897) | |
(Loss) profit before taxation | (39,580) | 4,559 | (2,238) | |
Income tax (expense) credit | 6,530 | (1,277) | 684 | |
(Loss) profit for the year | (33,050) | 3,282 | (1,554) | |
Other comprehensive (expense) income that may be subsequently reclassified to profit or loss: | ||||
Currency translation difference | 5,579 | (57) | (10,310) | |
Share of other comprehensive income of associates | 136 | |||
Fair value loss arising from cash flow hedges | (446) | (680) | ||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary | [1] | 1,126 | ||
Total comprehensive (expense) income for the year | (27,471) | 4,041 | (12,544) | |
(Loss) profit for the year attributable to owners of the Company | (33,171) | 3,784 | (1,397) | |
(Loss) profit for the year attributable to non-controlling interests | 121 | (502) | (157) | |
Profit (Loss)for the year | (33,050) | 3,282 | (1,554) | |
Total comprehensive (expense) income attributable to: | ||||
Owners of the Company | (26,738) | 4,242 | (12,379) | |
Non-controlling interests | (733) | (201) | (165) | |
Total comprehensive (expense) income for the year | $ (27,471) | $ 4,041 | $ (12,544) | |
(Loss) earnings per share-Basic | $ (0.1) | $ 0.01 | $ 0 | |
(Loss) earnings per share-Diluted | $ (0.1) | $ 0.01 | $ 0 | |
[1] | On June 23, 2015, the Company received a refund amounting to US$125 thousand from NASDAQ for the change of listing tiers from Global Select Market to Global Market. |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 46,084 | $ 12,518 |
Restricted cash | 40,716 | 29,850 |
Amount due from Sky Solar Holdings Co., Ltd. | 0 | 1,430 |
Amounts due from other related parties | 16,713 | 6,233 |
Trade and other receivables | 34,582 | 30,097 |
Inventories | 307 | 39,034 |
Assets classified as held for sale | 47,006 | |
Current Assets | 138,402 | 166,168 |
Non-current assets: | ||
Investment property | 1,516 | 1,568 |
Intangible assets | 126 | 122 |
Interests in associates | 2,566 | 4,092 |
Amounts due from other related parties | 5,632 | 8,125 |
Deferred tax assets | 23,500 | 9,581 |
Other non-current assets | 11,045 | 14,514 |
Non-current Assets | 442,706 | 310,078 |
Total assets | 581,108 | 476,246 |
Current liabilities: | ||
Trade and other payables | 29,043 | 24,037 |
Amounts due to other related parties | 28 | 7,512 |
Taxes payable | 2,340 | 6,903 |
Borrowings | 19,702 | 27,280 |
Other current liabilities | 120,820 | |
Liabilities directly associated with assets classified as held for sale | 3,380 | |
Total current liabilities | 171,933 | 69,112 |
Non-current liabilities: | ||
Borrowings | 230,027 | 131,881 |
Other non-current liabilities | 70,136 | 141,001 |
Deferred tax liabilities | 2,784 | 330 |
Total non-current liabilities | 302,947 | 273,212 |
Total liabilities | 474,880 | 342,324 |
Total assets less total liabilities | 106,228 | 133,922 |
Equity: | ||
Share capital | 8 | 8 |
Reserves | 101,115 | 128,076 |
Equity attributable to owners of the Company | 101,123 | 128,084 |
Non-controlling interests | 5,105 | 5,838 |
Total equity | 106,228 | 133,922 |
Total liabilities and equity | 581,108 | 476,246 |
Carrying value - Property other than solar parks | ||
Non-current assets: | ||
Property, plant and equipment | 916 | 823 |
IPP Solar Parks | ||
Non-current assets: | ||
Property, plant and equipment | $ 397,405 | $ 271,253 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Share capital | Share-based compensation reserve | Translation reserve | [1] | Cash flow Hedge reserve | Accumulated losses | Additional paid-in capital | Legal reserve | [2] | Total | Non- controlling interests | Total | |
Equity at beginning of period at Dec. 31, 2014 | $ 5 | $ 41,754 | $ (11,325) | $ (147,417) | $ 240,305 | $ 394 | $ 123,716 | $ 33 | $ 123,749 | ||||
Profit (Loss)for the year | (1,397) | (1,397) | (157) | (1,554) | |||||||||
Other comprehensive expense for the year | (10,302) | $ (680) | (10,982) | (8) | (10,990) | ||||||||
Total comprehensive (expense) income for the year | (10,302) | (680) | (1,397) | (12,379) | (165) | (12,544) | |||||||
Transfer to legal reserve | (133) | 133 | |||||||||||
Reversal of IPO expense (Note a) | [1] | 125 | 125 | 125 | |||||||||
Share-based compensation | 1,389 | 1,389 | 1,389 | ||||||||||
Equity at end of period at Dec. 31, 2015 | 5 | 43,143 | (21,627) | (680) | (148,947) | 240,430 | 527 | 112,851 | (132) | 112,719 | |||
Profit (Loss)for the year | 3,784 | 3,784 | (502) | 3,282 | |||||||||
Total comprehensive (expense) income for the year | (222) | 680 | 3,784 | 4,242 | (201) | 4,041 | |||||||
Currency translation difference | (358) | (358) | 301 | (57) | |||||||||
Share of other comprehensive income of associates | 136 | 136 | 136 | ||||||||||
Fair value loss arising from cash flow hedges | (446) | (446) | (446) | ||||||||||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary (Note 28 a) | [1] | $ 1,126 | 1,126 | 1,126 | |||||||||
Transfer to legal reserve | (240) | 240 | |||||||||||
Share-based compensation | 997 | 997 | 997 | ||||||||||
Non-controlling interest addition | [2] | 6,171 | 6,171 | ||||||||||
Ordinary shares consideration for business combination (Note c) | [3] | 3 | 10,144 | 10,147 | 10,147 | ||||||||
Issuance cost (Note d) | [4] | (153) | (153) | (153) | |||||||||
Equity at end of period at Dec. 31, 2016 | 8 | 44,140 | (21,849) | (145,403) | 250,421 | 767 | 128,084 | 5,838 | 133,922 | ||||
Profit (Loss)for the year | (33,171) | (33,171) | 121 | (33,050) | |||||||||
Total comprehensive (expense) income for the year | 6,433 | (33,171) | (26,738) | (733) | (27,471) | ||||||||
Currency translation difference | 6,433 | 6,433 | (854) | 5,579 | |||||||||
Share-based compensation | (223) | (223) | (223) | ||||||||||
Equity at end of period at Dec. 31, 2017 | $ 8 | $ 43,917 | $ (15,416) | $ (178,574) | $ 250,421 | $ 767 | $ 101,123 | $ 5,105 | $ 106,228 | ||||
[1] | On June 23, 2015, the Company received a refund amounting to US$125 thousand from NASDAQ for the change of listing tiers from Global Select Market to Global Market. | ||||||||||||
[2] | During the year ended December 31, 2016, the Group has non-controlling interest addition amounting to US$1.4 million upon acquisition of 23 solar parks in USA. During the year ended December 31, 2016, Renewable Capital Investment II (“RCI 2”) entered into equity conversion agreements with its EPC supplier to convert account payable for EPC service amounting to US$4.8 million into the equity of the 5 Uruguay project companies of RCI 2. | ||||||||||||
[3] | On July 15, 2016, the Group completed acquisition of 23 solar parks with 22MW capacity in USA (Note 32). As part of the consideration, 29,519,844 ordinary shares were validly issued with par value of 0.0001 per share. As of the acquisition date, the closing stock price was US$2.75/ADS or US$0.34375 per share, which made the value of total issued shares US$10.1 million. | ||||||||||||
[4] | During the year ended December 31, 2016, the Group incurred US$153 thousand cost directly related to issuance of restricted shares and recorded it in additional paid in capital. |
CONSOLIDATED STATEMENTS OF CHA5
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands | Jul. 15, 2016USD ($)instrumentitem$ / sharesMW | Jun. 23, 2015USD ($) | Dec. 31, 2016USD ($)instrumentprojectitem$ / shares | |
Refund from NASDAQ | $ 125 | |||
Number of solar parks acquired | item | 23 | |||
Accounts payable converted to equity | $ 4,800 | |||
Number of Uruguay projects | project | 5 | |||
Par value | $ / shares | $ 0.0001 | |||
Cost related to issuance of restricted shares | [1] | $ 153 | ||
Acquired Companies | ||||
Non-controlling interest addition | $ 1,405 | $ 1,400 | ||
Number of solar parks acquired | item | 23 | 23 | ||
Capacity (in MW) | MW | 22 | |||
Number of shares issued | instrument | 29,519,844 | 29,519,844 | ||
Issuance of ordinary shares | $ 10,147 | $ 10,147,446 | ||
Acquired Companies | Ordinary shares | ||||
Number of shares issued | instrument | 29,519,844 | |||
Par value | $ / shares | $ 0.0001 | |||
Closing price | $ / shares | 0.34375 | |||
Acquired Companies | ADS | ||||
Closing price | $ / shares | $ 2.75 | |||
[1] | During the year ended December 31, 2016, the Group incurred US$153 thousand cost directly related to issuance of restricted shares and recorded it in additional paid in capital. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
(Loss) profit before taxation | $ (39,580) | $ 4,559 | $ (2,238) |
Adjustments for: | |||
Interest income | (445) | (325) | (200) |
Finance costs | 12,200 | 6,368 | 3,897 |
Depreciation of property, plant and equipment | 298 | 271 | 281 |
Depreciation of IPP solar parks | 14,272 | 14,208 | 9,229 |
Amortization of intangible assets | 44 | 71 | 102 |
Warranty reversal | (308) | (451) | (334) |
Share-based compensation | (223) | 997 | 1,389 |
Fair value changes on other non-current liability | 39,105 | 2,957 | 5,686 |
Loss on disposal of property, plant and equipment | 15 | 64 | |
Loss on disposal of intangible assets | 1 | 6 | |
Impairment loss on IPP solar parks | 5,221 | 2,151 | 1,835 |
Provision on receivables | 1,071 | ||
Gain on disposal of associates | (7,448) | ||
Share of profit of associates | (173) | (149) | |
Gain on disposal of IPP solar parks | (1,248) | ||
Gain on disposal of a subsidiary | (1,875) | (11,768) | |
Reversal of provision for other taxes | (6,025) | ||
Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as FVTPL | (201) | 641 | 585 |
Unrealized gain from sales to associates | 242 | 2,040 | |
Operating cash flows before movements in working capital | 21,060 | 18,516 | 17,239 |
Increase in inventories | (271) | (32,739) | (1,726) |
(Increase)/ decrease in trade and other receivables | (4,484) | (5,962) | (11,790) |
(Increase)/ decrease in amounts due from other related parties | (10,436) | 2,145 | (2,902) |
Increase/ (decrease) in trade and other payables | 8,085 | (18,249) | 5,591 |
Decrease in amounts due to other related parties | (5,893) | (22) | |
Decrease in amounts due to customers for contract work | (1,194) | ||
Cash generated from/ (used in) operations | (36,289) | 5,196 | |
Income taxes paid | (9,470) | (6,265) | (1,403) |
Net cash generated from/ (used in) operating activities | (1,409) | (42,554) | 3,793 |
Investing activities | |||
Withdrawal of restricted cash | 29,850 | 5,560 | 5,438 |
Placement of restricted cash | (40,716) | (29,850) | (5,560) |
Collection of advances to other related parties | 1,043 | ||
Advances to other related parties | (30) | ||
Interest income received | 445 | 325 | 200 |
Purchases of property, plant and equipment | (375) | (349) | (327) |
Purchases of intangible assets | (42) | (40) | (241) |
Payments for IPP solar parks | (92,931) | (43,581) | (100,823) |
Proceeds from disposal of property, plant and equipment | 56 | ||
Proceeds from disposal of intangible assets | 180 | ||
Proceeds from disposal of IPP solar parks | 1,979 | 4,839 | |
Investment in associates | (5,692) | ||
Return of investment in associates | 9,505 | 1,554 | |
Dividends received from associates | 427 | 415 | |
Disposal of subsidiaries | 41,056 | 4,118 | (4,831) |
Acquisition of subsidiaries | (1,113) | ||
Net cash used in investing activities | (50,802) | (58,122) | (110,587) |
Financing activities | |||
Proceeds from bank borrowings | 84,865 | 11,403 | 47,126 |
Repayment of bank borrowings | (2,164) | (4,371) | (40,751) |
Proceeds from other borrowings | 35,059 | 51,833 | 46,949 |
Repayment of other borrowings | (25,116) | (6,372) | (5,470) |
Issuance cost of IPO/restricted shares | (153) | ||
Refund of IPO expense | 125 | ||
Advances from other related parties | 480 | ||
Repayment of advances from other related parties | (218) | ||
Changes of financial liabilities | 44,000 | 36,720 | |
Interest paid | (12,386) | (6,368) | (3,897) |
Net cash generated from financing activities | 80,258 | 89,972 | 81,064 |
Net (decrease)/ increase in cash and cash equivalents | 28,047 | (10,704) | (25,730) |
Cash and cash equivalents at beginning of the year | 12,518 | 26,272 | 52,993 |
Effects of exchange rate changes on the balance of cash held in foreign currencies | 5,519 | 867 | (991) |
Cash and cash equivalents at end of the year | $ 46,084 | $ 12,518 | $ 26,272 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of the balances of cash and cash equivalents | |||
Bank balance before reclassifcation | $ 46,084 | $ 16,435 | $ 26,272 |
Bank balances and cash included in assets classified as held for sale | (3,917) | ||
Cash and cash equivalents at the end of the year | 46,084 | 12,518 | 26,272 |
Supplemental information of non-cash transactions: | |||
Unsettled trade and other payable for acquisitions of property, plant and equipment and IPP solar parks | $ 7,100 | $ 12,600 | $ 26,100 |
CORPORATION INFORMATION AND BAS
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 1. CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS SKY SOLAR HOLDINGS, LTD. (the “Company”) was incorporated on August 19, 2013 as an exempted company with limited liability in the Cayman Islands under the Companies Law of the Cayman Islands. Concurrent with the establishment of the Company, the Company became the holding company of Sky Solar Power Ltd., which is a limited liability entity incorporated in the British Virgin Islands (“BVI”) and its subsidiaries (together with the Company hereinafter collectively referred to as the “Group”). Sky Solar Holdings Co., Ltd. (“Sky Solar Holdings”) which is controlled by Mr. Su Weili, was the holding company of Sky Solar Power Ltd. immediately before the establishment of the Company. The immediate holding company of the Company is Sky Power Group Ltd., which was incorporated on June 24, 2013 as an exempted company with limited liability in the Cayman Islands. The ultimate holding company is Flash Bright Power Ltd., which is a private limited entity established in the BVI and is controlled by Mr. Su. Accordingly, the assets and liabilities of the Group are the same immediately before and after the reorganization. This legal reorganization, whereby the Company and Sky Power Group Ltd. were established as intermediate entities between Sky Solar Holdings and Sky Solar Power Ltd., through a one-to-one share swap, has been accounted for as a reorganization of entities under common control. The assets and liabilities of the Group are the same immediately before and after the legal reorganization and the financial statements of the Company have been presented as if the legal reorganization was consummated on the first date of the periods presented. The Company completed its IPO on the NASDAQ on November 13, 2014, with Capital Market symbol of “SKYS”. The Company is an investment holding company. The subsidiaries of the Company are principally engaged in the following activities: (i) sell electricity generated from solar parks owned by the Group as independent power producer (“IPP”); (ii) pipeline (including obtaining permits required for solar power projects and sourcing of solar modules) and provide engineering, construction and procurement services (“Pipeline plus EPC”); (iii) provide operating and maintenance services for solar parks (“Provision of O&M services”); (iv) sales of solar modules and (v) build and transfer of solar parks (“BT”). The consolidated financial statements are presented in United States dollars (“USD”), which is the functional currency of the Company. The functional currencies of the subsidiaries of the Company are the currencies in which the transactions of principal operations of each subsidiary are predominantly denominated. |
APPLICATION OF NEW AND AMENDMEN
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | 12 Months Ended |
Dec. 31, 2017 | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | 2. APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS 2.1 Amendments to IFRSs that are mandatorily effective for current year In the current year, the Group has applied a number of amendments to IFRSs issued by the International Accounting Standards Board (IASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2016. The application of these amendments has had no impact on the disclosures or amounts recognised in the Group’s consolidated financial statements. 2.2 New and Amendments to IFRSs in issue but not yet effective The Group has not early applied the following new and amendments to IFRSs that have been issued but are not yet effective: IFRS 9 Financial Instruments (2) IFRS 15 Revenue from Contracts with Customers and the related amendments(2) IFRS 16 Leases (3) IFRIC 22 Foreign Currency Transactions and Advance Consideration (2) Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions(2) Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts(2) Amendment to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (4) Amendments to IAS 7 Disclosure Initiative (1) Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses (1) Amendments to IAS 40 Transfers of Investment Property (2) Amendments to IFRSs Annual Improvements to IFRS Standards 2014-2016 Cycle (5) (1) Effective for annual periods beginning on or after January 1, 2017, with earlier application permitted. (2) Effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. (3) Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted. (4) Effective for annual periods beginning on or after a date to be determined. (5) Effective for annual periods beginning on or after January 1, 2017 or January 1, 2018, as appropriate. The Group has not early adopted these new amendments to standards in the preparation of the consolidated financial statements. The management of the Group anticipates that the application of these new and revised standards, amendments to standards will have no material impact on the results and the financial position of the Group, except for potentially IFRS 9 and IFRS 16. IFRS 9 Financial Instruments IFRS 9 issued in November 2009 introduced new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition, and in November 2013 to include the new requirements for general hedge accounting. Another revised version of IFRS 9 was issued in July 2014 mainly to include a) impairment requirements for financial assets and b) limited amendments to the classification and measurement requirements by introducing a ‘fair value through other comprehensive income’ (FVTOCI) measurement category for certain simple debt instruments. Key requirements of IFRS 9 are: · all recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement are required to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets, and that have contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are generally measured at FVTOCI. All other debt investments and equity investments are measured at their fair value at the end of subsequent accounting periods. In addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss; · with regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss; · in relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model, as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognised; and · the new general hedge accounting requirements retain the three types of hedge accounting mechanisms currently available in IAS 39. Under IFRS 9, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an ‘economic relationship’. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced. The directors of the Company anticipate that the application of IFRS 9 in the future may have impact on the classification and disclosure of financial assets and liabilities in the Group’s consolidated financial statements. The new model requires the recognition of provisions based on expected credit losses rather than only incurred credit losses as is the case under IAS 39. While the Group has not yet undertaken a detailed assessment of how its impairment provisions would be affected by the new model, management expects it might result in an earlier recognition of credit losses. The changes in the fair value of a financial liability designated as at FVTPL attributable to changes in the credit risk of that liability are presented in other comprehensive income unless the presentation of the effect of the change in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risks are not subsequently reclassified to profit or loss. IFRS 15 Revenue from Contracts with Customers In May 2014, IFRS 15 was issued which establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 Revenue, IAS 11 Construction Contracts and the related Interpretations when it becomes effective. The core principle of IFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Standard introduces a 5-step approach to revenue recognition: · Step 1: Identify the contract(s) with a customer. · Step 2: Identify the performance obligations in the contract. · Step 3: Determine the transaction price. · Step 4: Allocate the transaction price to the performance obligations in the contract. · Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation. Under IFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios. Furthermore, extensive disclosures are required by IFRS 15. In 2016, the IASB issued Clarification to IFRS 15 in relation to the identification of performance obligations, principal versus agent considerations, as well as licensing application guidance. The directors of the Company have assessed the impact of IFRS 15 on the Group’s consolidated financial statements and it is not expected to have a material impact on the Group’s consolidated financial statements but may require additional disclosures. IFRS 16 Leases IFRS 16, which upon the effective date will supersede IAS 17 Leases , introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Specifically, under IFRS 16, a lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Accordingly, a lessee should recognise depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows. Also, the right-of-use asset and the lease liability are initially measured on a present value basis. The measurement includes non-cancellable lease payments and also includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease. This accounting treatment is significantly different from the lessee accounting for leases that are classified as operating leases under the predecessor standard, IAS 17. In respect of the lessor accounting, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. The directors of the Company anticipate that the application of IFRS 16 in the future may have impact on lease accounting made in the Group’s consolidated financial statements. The Group is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments and recognise depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows. As of December 31, 2016, the Group had commitments of USD 98.8 million for future minimum lease payments under non-cancellable operating leases (Note 36) and the directors of the Company anticipate that the application of IFRS 16 in the future may have material impact on the consolidated financial statement of the Group. For the moment, it is not practicable to provide a reasonable estimate of the effect of the application of IFRS 16 until the Group performs a detailed review. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. 3.2 Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. These policies have been consistently applied throughout the periods presented. 3.3 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: · the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Company, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income (expense) from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (expense) are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Non-controlling interests in subsidiaries are presented separately from the Group’s equity therein. Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. 3.4 Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and asset or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS12 Income Taxes and IAS 19 Employee Benefits respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date (see note 3.17.2); and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. 3.5 Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. 3.6 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts of goods sold and services provided in the normal course of business, net of discounts and sales related taxes, if any. Electricity sales income When the Group owns and operates solar parks for the purpose of generating income from the sale of electricity over the life of the solar parks, electricity generation income is classified as revenue. When electricity income is generated from solar parks which the Group holds as inventories, the electricity income is considered incidental and classified as other operating income. Electricity generation income is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. EPC services solar energy system sales - Provision of pipeline plus EPC services The provision of Pipeline plus EPC services involves application of permits, sourcing of solar modules, and provision of construction services. The Group either applies for the permits required to construct and operate solar parks itself or acquires the permits through the acquisition of the equity interests in project companies, which are typically formed for the specific purpose of holding such permits. In the course of providing Pipeline plus EPC services, the Group sells the permits to customers through the disposal of project companies holding the relevant permits. Revenue from disposing project companies holding permits is recognized when equity interests in the relevant project companies are transferred to customers by the Group at which time control is transferred. In addition to revenue from sales of permits as discussed above, the Group also enters into separate contracts with customers for sourcing of modules and provision of construction services for their project companies if it is requested by the customers. Revenue from modules sourced and provision of construction service is recognized in accordance with sales of solar modules and construction contract discussed below. EPC services solar energy system sales - Build and transfer of solar parks Revenue from BT represents the sale of completed solar parks and is recognized when titles to the solar parks have been transferred at which point control is passed to the customer. Other sales - Sales of solar modules Revenue from the sales of solar modules is recognized when the modules are delivered and titles have passed. Solar modules are considered delivered and their titles have passed, at the point at which all the following conditions are satisfied: · the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; · the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; · the amount of revenue can be measured reliably; · it is probable that the economic benefits associated with the transaction will flow to the Group; and · the costs incurred or to be incurred in respect of the transaction can be measured reliably. Other sales — O&M service Income from provision of O&M service and other administrative service is recognized when services are provided. Others Interest income from financial assets is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. 3.7 Construction contracts When the outcome of a construction contract can be estimated reliably, revenue and costs are recognized by reference to the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognized as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediately. Where contract costs incurred to date plus recognized profits less recognized losses exceed progress billings, the surplus is shown as amounts due from customers for contract work. For contracts where progress billings exceed contract costs incurred to date plus recognized profits less recognized losses, the surplus is shown as the amounts due to customers for contract work. Amounts received before the related work is performed are included in the consolidated statement of financial position as a liability under advances received. Amounts billed for work performed but not yet paid by the customer are included in the consolidated statement of financial position under trade and other receivables. 3.8 Inventories The Group’s inventories mainly comprise permits and related costs capitalized during the course of obtaining permits, solar modules and solar parks under development or completed solar parks that are held for sale by the Group within normal operating cycle which is usually twelve months since their completion of construction. Inventories are stated at the lower of cost and net realizable value. Costs of solar modules are calculated using weighted average method. Costs of permits include capitalized costs incurred to obtaining such permits (for example legal expenses, consultancy fees, staff costs and other costs). Costs of solar parks under development include costs relating to solar parks capitalized before construction is completed, such as modules installed and development costs incurred. The proceeds from the sale of solar parks held for sale is recognized as revenue of the Group and the carrying amount of the solar parks which is recognized as costs of sales of the Group. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Provisions are made for inventory whose carrying value is in excess of net realizable value. Certain factors could impact the realizable value, so the Group continually evaluates the recoverability based on assumptions about market conditions. The Group regularly reviews the cost against its estimated net realizable value and records lower of cost and net realizable value to cost of sales, if inventories have costs in excess of estimated net realizable values. 3.9 Assets classified as held for sale Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified a held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. The Group discontinues the use of the equity method at the time of disposal when the disposal results in the Group losing significant influence over the associate or joint venture. After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture in accordance with IAS 39 unless the retained interest continues to be an associate or a joint venture, in which case the Group uses the equity method (see the accounting policy regarding investments in associates or joint ventures above). Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. 3.10 IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Costs include expenditures for solar modules, permits and other direct costs capitalized in the course of construction. Such costs are capitalized starting from the point in time it is determined that development of the IPP solar project is probable. Permits and related costs capitalized during the course of obtaining permits and solar parks under development are stated in the consolidated statement of financial position at cost less subsequent accumulated impairment losses, if any. Depreciation of completed solar parks commences once the solar parks are successfully connected to grids and begin generating electricity. Depreciation is recognized over their estimated useful lives of the solar parks (less residual value if any), using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. IPP solar parks are derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of solar parks is determined as the difference between the sales proceeds and the carrying amount of the solar parks and is recognized in other operating income and loss. At the end of each reporting period, the Group performs impairment review on IPP solar parks when impairment indicators arise in different regions, if any. 3.11 Property, plant and equipment Property, plant and equipment are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Depreciation is recognized so as to write off the cost of assets less their residual values over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives after taking into account the residual values: Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. 3.12 Intangible assets Intangible assets acquired separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. 3.13 Investment property Investment property are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the investment property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the investment property is derecognized. 3.14 Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Group as lessor Contingent rental arising under operating leases are recognized as rental income in the period in which they are incurred. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. IPP solar parks—the Group as lessor For IPP solar parks where customers purchase electricity from the Group under power purchase agreements in certain countries, facts and circumstances of the Feed-in-Tariff policies were changed mandatorily which triggered re-assessment on accounting for these agreements. As a result, the newly issued Feed-in-Tariff policies may indicate that it is remote that one or more parties other than the purchaser will take more than an insignificant amount of the output or other utility that will be produced or generated by the asset during the term of the arrangement, and the price that the purchaser will pay for the output is neither contractually fixed per unit of output nor equal to the current market price per unit of output as of the time of delivery of the output. These agreements will be accounted for under such circumstance pursuant to IFRIC 4, Determine whether an Arrangement Contains a Lease and IAS 17, Leases as an operating lease. Revenue is recognized based upon the amount of electricity delivered as determined by remote monitoring equipment at rates specified under the contracts, assuming all other revenue recognition criteria are met. The rental income from operating lease of these IPP solar parks is presented as electricity generation income in note 3. There is no minimum lease payment since all lease payment are contingent based on actual volume of electricity produced. The Group as lessee Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. 3.15 Foreign currencies In preparing the financial statements of each individual group entity, transactions in currencies other than the functional currency of that entity (i.e. foreign currencies) are recorded in the respective functional currency (i.e. the currency of the primary economic environment in which the entity operates) at the rates of exchanges prevailing on the dates of the transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are recognized in profit or loss in the period in which they arise. For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into the presentation currency of the Group using exchange rates prevailing at the end of each reporting period. Income and expenses items are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized in other comprehensive income (expense) and accumulated in equity under the heading of translation reserve (attributed to non-controlling interests as appropriate). On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e. partial disposals of associates that do not result in the Group losing significant influence), the proportionate share of the accumulated exchange differences is reclassified to profit or loss. 3.16 Borrowing costs Borrowing costs directly attributable to the acquisition, construction |
KEY SOURCES OF ESTIMATES AND JU
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | 4. KEY SOURCES OF ESTIMATES AND JUDGEMENTS In the application of the Group’s accounting policies, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. A. KEY SOURCES OF ESTIMATION UNCERTAINTY (a) Impairment of trade and other receivables, amounts due from other related parties and amounts due from Sky Solar Holdings. When there is an objective evidence of impairment loss, the Group takes into consideration the estimation of future cash flows. The amount of the impairment is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). In the event the expected actual future cash flows are less than the amount owed, a material impairment loss may arise. The carrying amounts of the Group’s trade and other receivables as at December 31, 2016 and December 31, 2017 are approximately USD30,097 thousand and USD34,582 thousand and net of allowance of doubtful debts of USD1,329 thousand and USD1,403 thousand, respectively. The carrying amounts of the Group’s amounts due from other related parties as at December 31, 2016 and December 31, 2017 were USD14,358 thousand and USD22,345 thousand and net of allowance of doubtful debts of USD2,200 thousand and USD2,200 thousand, respectively. The carrying amounts of the Group’s amounts due from Sky Solar Holdings Co., Ltd. as at December 31, 2016 and December 31, 2017 were USD1, 430 thousand and nil, respectively. (b) Impairment losses in relation to IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. When there is an objective evidence of impairment loss, such as changes of technological advancement, changes of regulatory policies for solar industry, damages of solar park due to natural disaster or economic performance of the IPP solar parks is, or will be, worse than expected, for example, the Group takes into consideration the estimation of future cash flows. The amount of the impairment is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition). (c) Fair value measurements and valuation process Some of the Group’s liabilities are measured at fair value for financial reporting purposes. The Group’s finance department, which is headed by the Chief Financial Officer (“CFO”), is responsible for determination of appropriate valuation techniques and inputs for fair value measures. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group performs the valuation with the assistance from third party qualified valuation specialists. The finance department works closely with the qualified external valuation specialists to establish the appropriate valuation techniques and inputs to the model. The CFO reports the finance department’s findings to the board of directors of the Company every quarter to explain the cause of fluctuations in the fair value of assets and liabilities. The Group uses valuation techniques that include inputs that are not based on observable market data to estimate the fair value of certain types of financial instruments. Note 35 provides detailed information about the valuation techniques, inputs and key assumptions used in the determination of the fair value of various liabilities. (d) Asset retirement obligations Asset retirement obligations are recognized in the consolidated statement of financial position when the Group has a legal or constructive obligation as a result of past events, and it is probable that an outflow of economic benefit will be required to settle the obligation. If the effect is material, asset retirement obligations are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The Group made the provision for asset retirement obligation based on its best estimate of future cash flow. When the future costs are higher or lower than expected and where events or changes in circumstances indicate that the amount of asset retirement obligation provision may not be adequate or may be excessive, such difference will impact the carrying values and provision expenses in the years in which such estimate has been changed. B. CRITICAL ACCOUNTING JUDGEMENTS (a) Significant influence over 1088526 B.C. Ltd (“1088526”) and 1091187 B.C. Ltd (“1091187”) 1088526 B.C. Ltd. and 1091187 B.C. Ltd each is considered as an associate of the Group although the Group owns 75% equity interest in both 1088526 and 1091187, and contractual right to appoint two out of four directors to the board of directors of both 1088526 and 1091187. The Group only has significant influence over both 1088526 and 1091187 are explained by the facts that (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of both 1088526 and 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. (Note 23). |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2017 | |
REVENUE | |
REVENUE | 5. REVENUE The Group’s revenue streams are mainly composed of pipeline plus EPC services, BT, sales of solar modules, O&M services and income from the sale of electricity generated by IPP solar parks. The following table summarizes the categories of the Group’s revenue: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Related parties: —EPC services solar energy system sales Sales of permits — —Other sales -O&M services -Sales of solar modules — — — Subtotal Non-related parties —Electricity sales income —EPC services solar energy system sales -Provision of Pipeline plus EPC services Sales of permits — — Provision of construction services - BT — —Other sales -O&M services -Sales of solar modules — Subtotal Total |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 6. SEGMENT INFORMATION Operating segments are defined as components of a group entity about which discrete financial information is available for regular evaluation by the chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the executive team. The executive team regularly reviews revenue analysis and the Group’s consolidated results for the periods presented for the purposes of resource allocation and performance assessment. As no other discrete financial information is available for the assessment of different business activities, no segment information is presented other than entity-wide disclosures. Based on the financial information presented to and reviewed by the chief operating decision maker in deciding how to allocate the resources and in assessing the performance of the Company, the Company has determined that it has one operating segment which is the development and operation of solar parks and related business activities. Geographical information The Group’s operations are located in the respective countries of domicile of the Group’s subsidiaries. The operations of the Group include the Republic of Bulgaria (“Bulgaria”), the Federal Republic of Germany (“Germany”), the Hellenic Republic (“Greece”), Czech, Japan, Spain, Uruguay, Canada and USA during the periods presented. Information about the Group’s revenue is presented based on the location of the operations. Information about the Group’s non-current assets is presented based on the geographical location of the assets. Revenue for the 2015 2016 2017 Thousand USD Thousand USD Thousand USD Bulgaria Canada Czech Germany — Greece Japan Spain USA Uruguay Non-current assets 2016 2017 Thousand USD Thousand USD Bulgaria Canada Chile Czech Greece Japan PRC Spain USA Uruguay Non-current assets excluded deferred tax assets and amounts due from other related parties. Information about major customers Revenue from customers during the periods presented contributing over 10% of the total sales of the Group for each of the respective reporting periods are as follows: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Customer A Customer B Customer C * Customer D * * The corresponding revenue does not contribute over 10% of the total revenue of the Group in the respective periods. |
INVESTMENT INCOME
INVESTMENT INCOME | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT INCOME | |
INVESTMENT INCOME | 7. INVESTMENT INCOME Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Interest income Interest income from amounts due from related parties Share of profit of associates — Disposal of associates(Note a) — — (a) In March 2017, Sky Solar Japan KK entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. The company recorded a gain on disposal of subsidiaries of JPY 837 million (USD 7.4 million). |
OTHER LOSSES
OTHER LOSSES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LOSSES | |
OTHER LOSSES | 8. OTHER LOSSES Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) ) ) ) Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as at FVTPL (Note 30) ) ) Transaction cost related to FVTPL liabilities (Note a) — ) — Net foreign exchange (losses) gains Others, net ) ) ) ) ) (a) The transaction cost represents the professional fee directly attributable to the issue of the financial liability to Hudson. |
FINANCE COSTS
FINANCE COSTS | 12 Months Ended |
Dec. 31, 2017 | |
FINANCE COSTS | |
FINANCE COSTS | 9. FINANCE COSTS Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Interest on: Bank borrowings ) ) ) Other borrowings ) ) ) ) ) ) |
STAFF COSTS, ADMINISTRATIVE EXP
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | 12 Months Ended |
Dec. 31, 2017 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | 10. STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Loss) profit before taxation has been arrived at after charging: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Depreciation of property, plant and equipment Amortization of intangible assets Depreciation of solar parks Auditor’s remuneration Directors’ emoluments: Salaries and other benefits (Note a) Retirement benefits scheme contributions Share-based compensation ) Others staff: Other staff costs Retirement benefits scheme contributions Share-based compensation ) Total staff costs |
INCOME TAX (EXPENSE) CREDIT
INCOME TAX (EXPENSE) CREDIT | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX (EXPENSE) CREDIT | |
INCOME TAX (EXPENSE) CREDIT | 11. INCOME TAX (EXPENSE) CREDIT Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Current tax ) ) ) Overprovision in prior years — — ) ) Deferred tax ) ) ) Income tax of Bulgaria, Germany, Hong Kong, and Canada is calculated at 10%, 15%, 16.5%, and 26.5%, respectively, of the estimated assessable profit of respective Group’s subsidiaries for the three years ended December 31, 2017. Income tax rate in Japan is 33% , 30% and 27.8% for the three years ended December 31, 2017, respectively. Income tax rate in Greece is 26%, 29%, and 29% for the three years ended December 31, 2017, respectively. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. In August 2015, the Group received a tax audit report from the tax authority of one subsidiary of the Group upon the completion of the audit for tax years 2009 to 2013 period. As a result of the completion of this audit, the tax related to the audit period was determined to be USD0.4 million by the relevant tax authorities. As such the Group reversed the overprovision of income tax for USD4.2 million and other taxes for USD6.0 million. The taxation for the year can be reconciled to the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income as follows: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD (Loss) profit before taxation ) ) Tax at the domestic income tax rate (2015: 26%, 2016: 29%, 2017: 27.8%,) ) ) Tax effect of income not taxable for tax purpose ) ) — Tax effect of expenses not deductible Overprovision in prior years ) — ) Tax effect of tax losses not recognized Recognition of deferred tax assets previously not recognized — ) — Utilization of tax losses previously not recognized — ) ) Effect of different tax rates of subsidiaries operating in other jurisdictions Income tax expense (benefit) ) ) Effective income tax rate % % % The domestic income tax rate represents statutory rate in the jurisdictions where the operation of the Group was most significant during the year presented; which is the income tax rate in Greece for the years ended December 31, 2015 and 2016. Since the group disposed all the solar park assets in Greece in 2017, the most significant operation of the Group of 2017 was Japan. As a result, the domestic income tax rate was 27.8% for the year ended December 31, 2017. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2017 | |
DIVIDENDS | |
DIVIDENDS | 12. DIVIDENDS No dividend was paid or proposed during the periods presented, nor has any dividend been proposed since the end of the reporting period. |
(LOSS) EARNINGS PER SHARE
(LOSS) EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
(LOSS) EARNINGS PER SHARE | |
(LOSS) EARNINGS PER SHARE | 13. (LOSS) EARNINGS PER SHARE The calculation of the basic and diluted (loss) earnings per share attributable to the owners of the Company is based on the following data: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD (Loss) profit (Loss) profit for the purpose of basic and diluted (loss) earnings per share ) ) Year ended December 31, 2015 2016 2017 Number of shares Weighted average number of ordinary share outstanding- basic and diluted Basic net (loss) earnings per share ) Diluted net (loss) earnings per share ) For the year ended December 31, 2015, diluted loss per share are the same as basic loss per share as the Company did not have any equity instruments that have dilutive effect on loss per share during the periods presented. For the year ended December 31, 2016 and 2017, diluted net income (loss) per share does not include the 330,000 share options, of which the exercise price is higher than the average market price, as their inclusion would be anti-dilutive. For the year ended December 31, 2016, diluted net income (loss) per share does not include the 330,000 share options, of which the exercise price is higher than the average market price, or 1,430,000 unvested restricted shares, of which assumed exercise price is higher than the average market price for year ended December 31, 2016, as their inclusion would be anti-dilutive. For the year ended December 31, 2017, diluted net income (loss) per share does not include the 220,000 share options, of which the exercise price is higher than the average market price, or 940,000 unvested restricted shares, of which assumed exercise price is higher than the average market price for year ended December 31, 2017, as their inclusion would be anti-dilutive. The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of ordinary shares for the purpose of diluted loss per share. Year ended December 31, 2015 2016 2017 Options Non-vested restricted shares |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2017 | |
OTHER OPERATING INCOME | |
OTHER OPERATING INCOME | 14. OTHER OPERATING INCOME Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Gain(Loss) on disposal of IPP solar parks — — Gain(Loss) on disposal of subsidiaries (Note 21, Note 34) — Others |
AMOUNT DUE FROM SKY SOLAR HOLDI
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. | |
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. | 15. AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. At December 31, 2016 2017 Thousand USD Thousand USD Amount due from Sky Solar Holdings Co., Ltd. —Current — The balances were unsecured. In September of 2015, the Group has entered into several assignment agreements with multiple parties, including Sky Solar Holdings, two other related parties (Note 27) and two other third parties to settle its payables to these third parties for approximately USD1.2 million. After this assignment, the Group has increased its amount due from Sky Solar Holdings Co., Ltd. by USD1.6 million and amount due to the other related parties amounting to USD2.8 million. In September of 2017, the group has entered into a deed of non-competition and right of first refusal with Mr. Weili Su (“Mr. Su”) whereby he promises that he and any company he controls will not engage in any business that competes with us and grants us the right of first refusal to purchase shares in his businesses in China in which he owns more than 50% of the voting shares in the event that Mr. Su receives from or otherwise negotiate with a third party a bona fide offer to purchase Mr. Su’s shares in any of the business and the sale of such shares will result in Mr. Su ceasing control of that business. In connection with the settlement agreement entered with Mr. Su, he agrees to pay back to the Company approximately US$15 million to settle all its receivables and payables with his related companies, including Sky Solar Holdings. Thus the Group has assigned its both amount due from and amount due to Sky Solar Holdings Co., Ltd to Mr. Su. |
AMOUNTS DUE FROM OTHER RELATED
AMOUNTS DUE FROM OTHER RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNTS DUE FROM OTHER RELATED PARTIES | |
AMOUNTS DUE FROM OTHER RELATED PARTIES | 16. AMOUNTS DUE FROM OTHER RELATED PARTIES At December 31, Notes 2016 2017 Thousand USD Thousand USD Current: Trade China New Era a Sky Global Solar S.A. h — Less: allowance for doubtful debts a ) ) Non-Trade Sky Solar (Hong Kong) International Co., Ltd. b — SWL Flash Bright Limited d — China New Era a Sky Solar New Energy Investment Ltd. e — Tany International (Hong Kong) Co., Ltd. f — Sky Solar (Canada) FIT 1 Limited Partnership i — Su Weili j — Less: allowance for doubtful debts a ) ) Non-Current: Trade Oky Solar Holdings, Ltd. and its subsidiaries g — RisenSky Solar (defined in Note 23) and its subsidiaries Non-Trade RisenSky Solar (defined in Note 23) and its subsidiaries c Notes: (a) Sky Solar Holdings is able to exercise significant influence over China New Era through its 49% ownership interest and participation on the board. In addition, certain key management of the Group acts as legal representatives of the solar plant entities controlled by China New Era. China New Era is therefore an associate of Sky Solar Holdings and considered as a related party of the Group. Included in the balance amount due from China New Era as of December 31, 2016 and December 31, 2017, an allowance for doubtful debt of USD 2.2 million is provided for receivables for which they have defaulted on payment obligation. (b) Sky Solar (Hong Kong) International Co., Ltd. is an entity which is a 100% owned and controlled by Mr. Su as at December 31, 2016 and 2017. (c) Included in the balance was a carrying amount of USD 3.8 million and as USD 4.4 million at December 31, 2016 and 2017, respectively, which carried interest at 3.0% per annum. The balance was reclassified from current to non-current as the Group does not expect to receive the repayment within twelve months after the end of the reporting period. (d) SWL Flash Bright Limited is a 100% owned subsidiary of Sky Solar (Hong Kong) International Co., Ltd. as at December 31, 2016 and 2017. (e) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. (f) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. (g) Sky Solar Japan Co., Ltd. (“Sky Solar Japan” or “SSJ”), a wholly owned subsidiary of the Group, holds 30% equity interests in Oky Solar Holdings, Ltd. (“Oky Solar Holdings”) as at December 31, 2016 and sold it in March 2017. (h) Mr. Su holds 40% equity interests in Sky Global Solar S.A. as at December 31, 2016 and December 31, 2017. Mr. Su has significant influence over the entity, and as such, Sky Global Solar S.A. is considered a related party. (i) Sky Solar (Canada) FIT 1 Limited Partnership (“FIT 1”) is controlled by 10088526 B.C, Ltd (“1088526”), an equity investee in which the Group holds 75% equity interest. (Note 23) (j) On September 19, 2017, the Company entered into a settlement agreement with Mr. Su to resolve all potential claims by the Company against Mr. Su and certain entities controlled by him concerning certain fund transfers, which were not approved by the board or the audit committee and which lacked insufficient documentary support, as well as all potential claims that Mr. Su and such entities may have against the Company in connection with Mr. Su’s employment at the Company. Under this agreement, various debt assignment agreements signed among the Company, certain third parties, and certain entities controlled by Mr. Su in April 2017 shall have no effect and be rescinded immediately; and Mr. Su agrees to pay back to the Company approximately US$15.2 million and failing this, authorize the Company to sell on behalf of him and /or transfer to the Company the American depositary shares that he holds in the Company to pay for such settlement amount. After this agreement, the Group has amount due from Mr. Su to USD 15.2 million. Other than the non-current amounts which mature after one year in accordance to contracts since the end of reporting period, the remaining balances are repayable on demand. Save as disclosed above, the balances are unsecured and interest-free. Amounts due from other related parties which are non-trade in nature mainly represented loans or advances to these related parties by the Group. The Group normally allows credit period up to one year to related parties from the date of invoice on a case-by-case basis. The allowance for doubtful debts as at December 31, 2016 and December 31, 2017 was USD2.2 million. This provision was mainly due to the collectability of O&M revenue provided for and the expenses paid on behalf of China New Era in 2013. The group made individual assessments on the collectability of the balances. Movements in the allowance for doubtful debts of amounts due from related parties during the periods presented are as follows: At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year ) ) Provisions recognized on receivables — — Balance at end of the year ) ) |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | 17. TRADE AND OTHER RECEIVABLES At December 31, 2016 2017 Thousand USD Thousand USD Trade receivables Value-added tax recoverable Prepaid assets and prepayments Deposits (Note a) Others (Note c) Less: allowance for doubtful debts (Note b) ) ) Note: (a) The balance as of December 31, 2016 includes (1) USD3.7 million guarantee paid under the power purchase agreements related to the solar parks in Uruguay and will be collected once the solar projects are connected to grid in 2017 (Note 25) and (2) USD7.0 million deposit under the arrangement of Hudson Note and will be collected upon completion of construction of underlying solar projects in USA and Uruguay (Note 30). The balance as of December 31, 2017 includes (1) USD 2.5 million deposit under the arrangement of Hudson Note, (2) USD 1.4 million for the EPC deposit in Canada and (3) USD 1.8 million for the litigation deposit in Japan and this deposit was received by January 2018. (b) The balance as of December 31, 2016 and 2017 mainly includes an amount receivable due from a third party to the Group of approximately USD1.1 million (equivalent to EUR1.0 million), which was incurred in 2012, claim against two third party contractors who failed to construct a solar park for one subsidiary of the Group, who delivered solar modules and made prepayment already. A settlement agreement was made in September 2012, however the two contractors failed to repay after made the first repayment of total three installments. The Group is negotiating for another settlement agreement, and based on the recent communications among the Group and two contractors, management concluded to make full provision for doubtful receivables in the amount of USD1.1 million in 2015. (c) The balance as of December 31, 2017 mainly includes (1) USD 2.6 million receivable from the sold subsidiary, (2) USD 1.3 million receivable from the EPC construction service, and (3) USD 2 million deposit for issuing the guarantee of EPC construction in Uruguay. The Group allows credit periods of up to one year to certain customers on a case-by-case basis. Trade receivables of the Group are assessed to be impaired individually with reference to the nature of trading balances, length of credit period offered by the Group to the customers and historical recoverability of the balances. No interest is charged on trade receivables. The Group does not have collateral over the balances. Before accepting any new customer, the management of the Group will assess the potential customer’s credit quality and grant credit limits to each customer. Movements in the allowance for doubtful debts of trade and other receivables during the periods presented are as follows: At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year Provisions recognized on receivables — — Write off — — Exchange difference ) Balance at end of the year The allowance for doubtful debt at the end of each reporting period represented individually impaired receivables which were either with financial difficulties or have defaulted on payment obligation. Included in the Group’s trade receivables balance were debtors with aggregate carrying amounts of approximately USD938 thousand and USD1.1 million at December 31, 2016 and December 31, 2017, respectively, which were past due, but the Group did not provide for provisions since the debtors credit worthiness is qualified or guaranteed. The balances that are neither past due nor impaired as at the end of each reporting period are at good credit quality. These debtors were either placed under liquidation or in severe financial difficulties and such amounts were not likely to be recovered in the future. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the debtor from the date credit was initially granted up to the end of each reporting period. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES | |
INVENTORIES | 18. INVENTORIES At December 31, 2016 2017 Thousand USD Thousand USD Solar modules Permits and related costs capitalized during the course of obtaining permits (a) Solar parks completed or under development those are held for sale (b) — Note: (a) In August 2016, the Group acquired 22.5MW development stage permits for the solar projects in California and Vermont. In 2017, the group was in the process of developing 11.8 MW permits in Canada. (b) The balance as of December 31, 2016 represents the cost capitalized, including land costs and cost for construction of solar parks relating to the solar parks under development in South America. These solar parks are connected at August 2017, and held as IPP solar parks. |
ASSETS CLASSIFIED AS HELD FOR S
ASSETS CLASSIFIED AS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2017 | |
ASSETS CLASSIFIED AS HELD FOR SALE | |
ASSETS CLASSIFIED AS HELD FOR SALE | 19. ASSETS CLASSIFIED AS HELD FOR SALE At December 31, 2016 2017 Thousand Thousand Total Total IPP solar parks held for sale — Cash and cash equivalents — Trade and other receivable — Other assets — — Liabilities associated with assets held for sale — (a) As at December 31, 2016, the board of directors of the Group has approved the transaction to dispose the 20 operating solar parks with capacity of 23MW in Greece. The negotiation of the transaction was at final stage and the agreement was signed on January 4, 2017. Therefore, as of December 31, 2016, these solar projects related assets and liabilities, which were expected to be sold within twelve months, were classified as held for sale. The transaction was completed in April 2017 disposal of subsidiaries. (Note 34) (b) As at December 31, 2016, the board of directors of the Group has approved the transaction to dispose 6 operating solar parks in Canada. The negotiation of the transaction was at final stage and the agreements were signed on January 3, 2017. Therefore, as of December 31, 2016, these solar projects related assets and liabilities, which were expected to be sold within twelve months, were classified as held for sale. The transaction was completed in January 2017 as disposal of subsidiaries. (Note 34) |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Carrying value - Property other than solar parks | |
Property, plant and equipment | |
PROPERTY, PLANT AND EQUIPMENT | 20. Leasehold Motor vehicles Furniture and Total Thousand USD Thousand USD Thousand USD Thousand USD COST At January 1, 2015 Additions Disposals — ) ) ) Exchange adjustments ) ) ) ) At December 31, 2015 Additions Disposals — ) ) ) Exchange adjustments ) ) ) At December 31, 2016 Additions — Disposals ) ) ) ) Exchange adjustments At December 31, 2017 DEPRECIATION At January 1, 2015 Provided for the year Eliminated on disposals — ) ) ) Exchange adjustments ) ) ) At December 31, 2015 Provided for the year Eliminated on disposals — ) ) ) Exchange adjustments ) ) — At December 31, 2016 Provided for the year Eliminated on disposals ) ) ) ) Exchange adjustments ) At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 The above items of property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives after taking into account the residual values: Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years |
IPP SOLAR PARKS, INVESTMENT PRO
IPP SOLAR PARKS, INVESTMENT PROPERTY | 12 Months Ended |
Dec. 31, 2017 | |
IPP Solar Parks | |
IPP SOLAR PARKS, INVESTMENT PROPERTY | |
PROPERTY, PLANT AND EQUIPMENT | 21. (1) IPP Solar Parks At the end of each reporting period, the Group’s solar parks, which are held for use, consisted of the following: Permits Completed Total Thousand USD Thousand USD Thousand USD At January 1, 2015 Additions — Transfer ) — Exchange adjustments ) ) ) At December 31, 2015 Additions Acquisition of subsidiaries (Note 33) — Transfer to investment property ) — ) Reclassified as held for sale (Note 19) — ) ) Disposal of subsidiaries (Note 34) — ) ) Disposal of solar parks — ) ) Transfer ) — Exchange adjustments ) At December 31, 2016 Additions Disposal of solar parks ) — ) Disposal of subsidiaries (Note a) ) ) ) Transfer ) — Exchange adjustments ) At December 31, 2017 DEPRECIATION AND IMPAIRMENT At January 1, 2015 Provided for the year — Impairment provided for the year Exchange adjustments — ) ) At December 31, 2015 Provided for the year — Impairment provided for the year — Reclassified as held-for-sale (Note 19) — ) ) Disposal of subsidiaries (Note 34) — ) ) Disposal of solar parks — ) ) Exchange adjustments ) ) ) At December 31, 2016 Provided for the year — Impairment provided for the year Disposal of subsidiaries (Note a) — ) ) Exchange adjustments At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 a) In February 2017, Sky Solar Japan KK(“SSJ”), a wholly-owned subsidiary of the Group, entered into a share purchase agreement to sell its all shares of Tokyo Solar Electricity KK(“TS”), with total purchase price of JPY 9.3 million (USD83 thousand). This disposal was aimed to maintain the strategy on high-voltage solar business, while TS was operated on low-voltage solar business with small sizes but high costs. The transaction was completed in February 2017, and the Group recorded a loss of USD 5 thousand. Depreciation is calculated using the straight-line method over the estimated useful lives of 20 to 30 years for completed solar parks. As at December 31, 2015, 2016 and 2017, the solar parks with carrying amounts of approximately USD 100.2 million, USD USD215.6 million and USD277.4 million, respectively, were pledged by the Group to secure borrowings with carrying amounts of approximately USD97.1 million, USD150.6 million and USD244.0 million, respectively. In addition, equity interests of an indirect wholly-owned subsidiary of the Company which held several IPP solar parks in Czech and trade receivables arising out of the business relations were pledged to a bank as at December 31, 2015, 2016 and 2017 to secure the respective borrowings. During the year ended December 31, 2015, IPP solar parks operating in Greece were evaluated for impairment given the macroeconomic conditions prevailing in Greece. The recoverable amount of the IPP solar parks is calculated on the basis of value in use. During the year ended December 31, 2016, IPP solar parks operating in Greece were evaluated for impairment given the macroeconomic conditions prevailing in Spain. The recoverable amount of the IPP solar parks is calculated on the basis of value in use, and loss of USD 2.2 million was recorded. During the year ended December 31, 2017, several developing licenses were discounted in Latin America, and the developing permits in North America were evaluated for impairment given the difference between the assets’ carrying amount and present value of estimated future cash flow discounted at the effective interest rate. As a result, an impairment loss of USD 5.2 million was recorded by the Group. In the year ended December 31, 2015 and 2016, such impairment was USD 1.8 million and USD 2.2 million, respectively. (2) Investment Property Included in the Group’s IPP solar parks are land acquired by the Group with carrying amounts of approximately USD9.5 million, USD11.3 million and USD11.3 million, respectively, as at December 31, 2015, 2016 and 2017. The Group transferred certain pieces of land with carrying amount of approximately nil, USD 104 thousand and nil, during the year ended December 31, 2015, 2016 and 2017, respectively, from IPP solar parks to investment property upon commencement of leases. The transfer is triggered by the sales of IPP solar parks assets situated on these land to third party customers. The land, being accounted for as investment property, has indefinite useful lives and is measured at costs less accumulated impairment losses, if any. The lease of land is an operating lease in nature and the future minimum lease payments under non-cancellable operating leases is disclosed in note 37. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 22. INTANGIBLE ASSETS Software Thousand USD COST At January 1, 2015 Additions Disposals ) Exchange adjustments ) At December 31, 2015 Additions Disposals ) Exchange adjustments At December 31, 2016 Additions Disposals ) Exchange adjustments ) At December 31, 2017 AMORTIZATION At January 1, 2015 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2015 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2016 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 Most of the above intangible assets are software systems for solar park monitoring, which have finite useful lives. Such intangible assets are amortized on a straight-line basis over 5 years. |
INTERESTS IN ASSOCIATES
INTERESTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2017 | |
INTERESTS IN ASSOCIATES | |
INTERESTS IN ASSOCIATES | 23. INTERESTS IN ASSOCIATES 2016 2017 Thousand USD Thousand USD As at January 1, Investment in new affiliates Return of investment in associates ) — Add: Share of profit of associates — Less: Unrealized gain from sales to associates ) — Less: Dividends received from the associates ) ) Less: Disposal of associates(Note d) — ) Exchange difference As at December 31, As at December 31, 2016 and December 31, 2017, the Group had interests in the following associates: Place of Proportion of nominal incorporation/ Class of value of issued capital Proportion of voting Form of principal place shares held power held Name of entity Entity of incorporation Held 2016 2017 2016 2017 Principal activities RisenSky Solar S.a.r.l. (a) Limited liability Luxemburg Ordinary % % % % Operating entity engaged in the investment, construction, financing and management of solar parks 1088526 B.C. Ltd. (b) Limited liability Canada Ordinary % % % % Operating entity engaged in the investment, construction, financing and management of solar parks 1091187 B.C. Ltd. (c) Limited liability Canada Ordinary — % — % Operating entity engaged in the investment, construction, financing and management of solar parks Oky Solar Holdings (d) Limited liability Japan Ordinary % N/A % N/A Operating entity engaged in the investment, construction, financing and management of solar parks Notes: (a) In 2011, Sky Europe entered into an agreement with Risen Energy (Hong Kong) Co., Ltd. (“Risen HK”) (a subsidiary of a company listed on the security market in the PRC) to establish a private limited liability company, namely RisenSky Solar Energy S.a.r.l. (“RisenSky Solar”). The Group is able to exercise significant influence over RisenSky Solar through its 30% ownership interest and participation on the board. RisenSky is therefore classified as an associate of the Group. (b) In 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1088526 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1088526 was measured at fair value. (Note 34) (c) In January 2017, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1091187 B.C. Ltd. (“1091187”), who owns Sky Solar (Canada) FIT 2 LP in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1091187 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1091187 was measured at fair value. (Note 34) (d) In 2014, Sky Solar Japan entered into an agreement with Orix KK (a company listed on the security market in Japan and United States) to establish a private limited liability company, namely Oky Solar Holdings, registered in Japan, in which 30% of the share capital is subscribed by Sky Solar Japan for JPY43.5 million (USD426 thousand) while the remaining 70% is subscribed by Orix KK. In 2015, additional investment of JPY 685.7 million (USD5.7 million) was injected by Sky Solar Japan to maintain its 30% of the share capital. In 2016, the Group received JPY 169 million (USD 1.55 million) investment return, and the share capital proportion remained the same. The Group is able to exercise significant influence over Oky Solar Holdings through 30% ownership interest and participation on the board. Oky Solar Holdings is there classified as an associate of the Group. The results, assets and liabilities of this associate are accounted for in the consolidated financial statements using the equity method of accounting. In March 2017, SSJ entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. This transaction resulted a gain of disposal JPY 837 million (USD 7.4 million). The summarized financial information in respect of the Group’s associates is set out below: At December 31, RisenSky Oky Solar 1088526 Aggregate RisenSky 1091187 1088526 Aggregate Thousand Thousand Thousand Thousand Thousand Thousand Thousand Thousand Non-current assets IPP solar parks Other non-current assets Current assets Current liabilities Other current liabilities Amount due to other related parties — — — — Non-current liability Borrowings Others — — — Net assets (liabilities) ) Year ended December 31, RisenSky Oky Solar 1088526 Aggregate RisenSky 1091187 1088526 Aggregate Thousand Thousand Thousand Thousand Thousand Thousand Thousand Thousand Revenue Profit for the year ) ) Group’s share of profit of associates of the year — — — — — — Group’s share of profit of associates of the year not recognized — — ) Group’s share of other comprehensive income of associates — — — — — — — — |
DEFERRED TAX ASSETS
DEFERRED TAX ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED TAX ASSETS | |
DEFERRED TAX ASSETS | 24. DEFERRED TAX ASSETS The principal components of the deferred income tax assets and liabilities are as follows: Fair value change of Unrealized gain on Depreciation of Tax losses financial instruments inter-group sales solar parks Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At January 1, 2016 ) Credit (charge) to profit or loss Reclassified to held-for-sale ) — — — ) Exchange differences ) ) ) ) ) At December 31, 2016 ) Deferred tax assets ) Deferred tax liabilities — — — Credit (charge) to profit or loss ) Exchange differences ) ) At December 31, 2017 ) Deferred tax assets Deferred tax liabilities — — — As at December 31, 2015, 2016 and 2017, the Group has unused tax losses of approximately USD135.8 million, USD152.2 million and USD 162.6 million, excludes tax losses recognized above, respectively, available for offset against future profits that may be carried forward indefinitely. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 25. OTHER NON-CURRENT ASSETS At December 31, 2016 2017 Thousand USD Thousand USD Long term deposits relate to IPP solar parks (a) Long-term loan to a third party (b) Others (a) The balance of long term deposits were the guarantee deposits for power purchase agreements related to the IPP solar parks in Uruguay amounting to USD3.3 million and reduced to nil as at December 31, 2016 and 2017, respectively. The balance of long term deposits for land rental related to the IPP solar parks in Japan were USD1.6 million and USD 1.7 million as at December 31, 2016 and 2017, respectively. (b) The loan to a third party represents the USD 9.2 million and USD 8.0 million long-term note receivable as at December 31, 2016 and 2017, respectively, which was obtained in connection with the acquisition of a subsidiary in the USA in 2016 which holds 23MW of solar parks (Note 33). The note receivable bears annual interest of 1% and is with principle payment schedule from 2018 to 2041. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 26. TRADE AND OTHER PAYABLES At December 31, 2016 2017 Thousand USD Thousand USD Trade payables(Note a) Other payables Warranty provision to customers for supply of modules Other accrued expenses Other tax payables Advances from customers The credit periods on purchases of goods range from three months to a year. (a) The trade payable balance included the EPC construction payable of USD 8.3 million in Uruguay as of December 31, 2017. Movements in the warranty provision balance for provision of modules during the periods presented are as follows: At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year Provided for the year — — Reversal for the year ) ) Balance at end of the year The Group is obliged to provide limited warranties to its customers of solar projects with respect to certain levels of performance. The Group is able to determine, at the point of delivery, that the solar projects are performing in accordance with the contractual terms and as such no warranties are provided for. To date, the Group has not experienced any significant claims. |
AMOUNTS DUE TO OTHER RELATED PA
AMOUNTS DUE TO OTHER RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNTS DUE TO OTHER RELATED PARTIES | |
AMOUNTS DUE TO OTHER RELATED PARTIES | 27. AMOUNTS DUE TO OTHER RELATED PARTIES At December 31, Notes 2016 2017 Thousand USD Thousand USD Current Trade China New Era — Non-Trade Sky Solar (Hong Kong) International Co., Ltd. a — Sky Solar New Energy Investment Limited 17 — Mr. Su b — Beijing Sky Solar Investment Management Co., Ltd. c Notes: (a) The entity is 100% owned by Mr. Su as at December 31, 2016 and 2017. The Group has initially borrowed USD3 million from Sky Solar (Hong Kong) International Co., Ltd. The loan from Sky Solar (Hong Kong) International Co., Ltd. carried interest at 12% per annum. (b) On October 1, 2015, the Group entered into an agreement with Mr. Su to sell and transfer all the shares in a 100% owned subsidiary namely Sky Solar Investment Limited. In accordance with the terms of the agreement, the Group will pay an amount of USD2.4 million to Mr. Su to assume the net liabilities of Sky Solar Investment Limited in the amount of USD2.3 million and miscellaneous expense of USD0.1 million. (c) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. The amount is a result of the licensed trademark used. On September 19, 2017, the Company entered into a settlement agreement with Mr. Su to resolve all potential claims by the Company against Mr. Su and certain entities controlled by him concerning certain fund transfers, which were not approved by the board or the audit committee and which lacked insufficient documentary support, as well as all potential claims that Mr. Su and such entities may have against the Company in connection with Mr. Su’s employment at the Company. Under this agreement, various debt assignment agreements signed among the Company, certain third parties, and certain entities controlled by Mr. Su in April 2017 shall have no effect and be rescinded immediately; and Mr. Su agrees to pay back to the Company approximately US$15.2 million and failing this, authorize the Company to sell on behalf of him and /or transfer to the Company the American depositary shares that he holds in the Company to pay for such settlement amount. For trade amounts due to other related parties, the credit periods on purchases of goods range from 90 to 365 days. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS | |
BORROWINGS | 28. BORROWINGS At December 31, 2016 2017 Thousand USD Thousand USD Bank borrowings (a) Other borrowings Secured Unsecured Variable-rate borrowings Fixed-rate borrowings Carrying amount repayable: Within one year More than one year but not exceeding two years More than two years but not exceeding five years More than five years Less: amounts repayable within one year shown under current liabilities Amounts shown under non-current liabilities (a) During the year ended December 31, 2014 and 2015, one of the subsidiary of the Group entered into a series of 15-year loan agreements with total principle of CAD 23.2 million (USD 16.8 million) with bank. The loan agreements specified a variable interest rate equal to 3-month Canadian Dollar Offered Rate (“CDOR”) plus 2.74% - 3.43%. The agreement also includes a fixed rate option, which allows the Group to swap variable to fixed interest rate of 5.75%, 5.50% or 4.50%. The associated interest rate swap agreements with principle of USD16.3 million was qualified for hedge accounting under IAS39. The effective portion of changes in the fair value of cash flow hedges recorded in other comprehensive income was loss of USD680 thousand and USD 446 thousand for year ended December 31, 2015 and 2016, respectively. During the year ended December 31, 2016, the subsidiary was disposed by the Group, and the accumulated other comprehensive expense of USD1,126 thousand under the heading of cash flow hedging reserve was recorded in profit or loss. The amounts due are based on scheduled repayment dates set out in the loan agreements. Some loan agreements have financial covenants which require certain financial ratios to be kept at certain level. As of December 31, 2016 and 2017, the Group was in compliance with all the covenants. The Group has variable-rate bank borrowings which carried interest at one-month bank interest rate in Czech and Uruguay plus margin as at December 31, 2016 and 2017. The effective interest rates on the Group’s borrowings as at December 31, 2016 and 2017 are as follows: At December 31, 2016 2017 Effective interest rate: Fixed-rate borrowings % % Variable-rate borrowings % % As at December 31, 2016 and 2017, equity interests of an indirectly wholly-owned subsidiary of the Company in Czech, its IPP solar parks and its trade receivables arising out of the business relations were pledged to a bank. Details of this pledge are set out in note 21(1). |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | 29. OTHER CURRENT LIABILITIES December 31, Thousand USD Financial liabilities designated as fair value through profit or loss As at January 1, Fair value effect during the year Interest paid back for distribution — Exchange difference As at December 31,(Note a) (a) This transaction is related to the Silent Partnership in Japan, which was in Non-current liability as of December, 2016, and was reclassified into current liability as of December 31, 2017. During the year ended December 31, 2014, Sky Solar Japan entered into silent partnership agreements that were amended and finalized on October 10, 2014 with two groups of third party investors (the “Silent Partners”), pursuant to which the Silent Partners provided financing and SSJ will develop and operate 21 solar parks with an aggregate capacity of 34.6 MW in Japan (the “SSJ Silent Partnership Assets”). In accordance with the agreements, SSJ contributed JPY750 million in cash and solar power projects with a carrying amount of JPY2.3 billion and an agreed valuation of approximately JPY4.6 billion. The Silent Partners contributed JPY5 billion in cash. No separate legal entity was established in connection with the silent partnership agreement. The SSJ Silent Partnership Assets are held and managed through the SSJ legal entity, subject to the provisions of the silent partnership agreement. The Silent Partners are not involved in the investment decisions associated with management of the SSJ Silent Partnership Assets or other assets and businesses which continue to be held and operated by SSJ, outside the auspices of the silent partnership agreement. Over an expected maximum period from the date of the agreement through June 2017, distributable profits from the SSJ Silent Partnership Assets shall be first distributed to the Silent Partners in proportion to their respective capital contributions, until a cumulative annual internal rate of return, or IRR, of 15% on their capital contributions is achieved. Any remaining profits shall be distributed to SSJ until a cumulative annual IRR of 15% of SSJ’s contributed amount, based on the agreed valuation, is achieved. The remaining profits, if any, shall be distributed to SSJ and the Silent Partner at the ratio of approximately 51% and 49%, respectively. Silent Partners shall only bear losses up to the amount of money they financed. The IRR of 15% is the discount rate required to make the present value of the total distributable profits expected to be generated by SSJ Silent Partnership Assets payable to certain members of Silent Partnership equal to the present value of the cumulative total of investments of certain Silent Partners. Distributable profits represent the cash that may be distributed to investors, including cash received from generating electricity or other sources, less the debts which fall due. Investments include the cash proceeds received from Silent Partners of JPY5 billion, cash contribution made from SSJ of JPY750 million and contribution of solar power projects with an agreed valuation of approximately USD45.5 million. Subject to the availability of distributable profits, the annual amount to be distributed to the Silent Partners is estimated to be approximately USD7.4 million (without considering the cumulative effect of IRR), before any amounts are distributable to the Company. In connection with the above transaction, Flash Bright Power Ltd. (“Flash Bright”), the entity wholly owned by Mr. Su, granted to an affiliate of one of the Silent Partners (“Investor”) an option to purchase from Flash Bright up to USD30 million worth of existing ordinary shares of Sky Solar Holdings, Ltd. at a per share price equal to the per ordinary share initial public offering price. This option is exercisable during a two-year period with an option to a one-year extension at the request of the Investor which Flash Bright can, at its sole discretion, approve or deny, commencing 180 days after the pricing date of this initial public offering. If, on any date during the exercise period, the market price of an ordinary share of the Company equals or exceeds 200% of the per ordinary share initial public offering price, the Investor shall be automatically deemed to have exercised the then remaining portion of the call option. Upon any exercise of the call option, the Investor may elect to pay the purchase price to Flash Bright in cash or through cashless settlement procedures. The call option was issued by Flash Bright for the benefit of the Group, to induce the Silent Partners to provide the financing and therefore the fair value associated with the call option of USD6,600 thousand measured on the grant date of October 10, 2014 was considered transaction costs and recorded within other losses in the consolidated statement of profit or loss and other comprehensive income. The fair value of the call option was determined by Income approach (Level 3 as defined in Note 3), in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Weighted average cost of capital was determined using a Capital Asset Pricing Model at 13.5% per annum. This option was exercisable during a two-year period with an option to a one-year extension at the request of the investor which Flash Bright could, at its sole discretion, approve or deny, commencing 180 days after the pricing date of the initial public offering. The investor did not request the one-year extension and such share purchase right has expired. In August 2015, SSJ further entered into certain definitive agreements (the “Amended Agreements”) with Silent Partners to increase the total capital contribution of JPY9 billion made by Silent Partners with respect to the total 67 solar parks (with additional 46 solar parks contributed by SSJ) with an aggregate capacity of 107.9 MW in Japan developed and operated by SSJ. According to the Amended Agreements, all the operating assets held under the original silent partnership agreement are transferred to the amended silent partnership agreement and the original silent partnership agreements are therefore terminated upon the transfer. In addition that: · One of the Silent Partners, assigned its full position, rights and obligation to another party of the Silent Partners (the “TK partner”), and would have no further obligations as agreed by all parties; · An amount of JPY 698 million (USD5.8 million) is agreed by SSJ being paid to the TK partner in order to amend the silent partnership agreements, and the new term of the Amended Agreements starts from August 28, 2015 to August 27, 2018 for three years. · The TK partner further invested an additional JPY4 billion (USD33.2 million), JPY2 billion of which is used by SSJ to extend a loan (the “Up-Stream Loan”) of the same principal amount to Sky International Enterprise Group Ltd. (“SIE”), a wholly owned subsidiary of the Group. The Up-Stream Loan has a 12- month term and bears interest at a 5% rate per annum. The proceeds of the Up-Stream Loan shall be used for, among others, the development of certain PV projects in Asia and the Americas. The remaining JPY2 billion proceeds are used by SSJ to continue executing its project pipeline in Japan; · For profit and loss distribution, it is agreed that during a distribution period, corresponding profits, after offset by the cumulative losses, multiplying the ratio of distribution, which is calculated as each party’s contribution ratio of total contributions, on the day of distribution will be distributed to SSJ and TK partner. In the case when the cumulative amount of losses exceeds the balance of total capital contribution, TK partner are only responsible for the amount of loss within the scope of capital contribution under the Amended Agreements, while the Company shall bear any excess amount; · Upon the completion of the solar power projects, SSJ is expected to transfer the ownership of one or more of the completed projects to a special purpose company formed by it or other third parties to recover the investments. Upon such transfer, it is contemplated that TK partner and SSJ will receive the distributable profits derived from the proceeds of such transfer pursuant to their respective percentages of contribution. In the event that SSJ still holds SSJ Silent Partnership Assets in the aggregate capacity of 10.79 MW (which is 10% of the aggregate capacity of the SSJ Silent Partnership Assets currently held by SSJ) or greater as of April 27, 2018, SSJ should either (1) purchase the remaining SSJ Silent Partnership Assets for a price agreed upon by an agent for the TK Partner or (2) secure a third party offer to purchase the remaining SSJ Silent Partnership Assets, and should notify the TK Partner by May 27, 2018 of its intent to settle in either case. If the TK Partner is able to secure a third party offer that is more attractive within 90 days of being so notified, SSJ shall transfer the remaining SSJ Silent Partnership Assets to such third party. If the TK Partner not only does not agree with the offer made by SSJ but also fails to find a third party offer that is more attractive, the TK Partner may elect to change the percentages of contribution to such percentages that will result in the TK Partner enjoying a 15% cumulative IRR. After completion of the changes of Amended Agreements, the Group continues to control the SSJ Silent Partnership Assets and retains substantially all the risks and rewards of ownership and as such will continue to consolidate these solar power projects in its consolidated financial statements. Considering the aforementioned changes in the Amended Agreements, the Group accounted for the financial liability associate with the amended silent partnership agreements as designated as fair value through profit or loss (“FVTPL”) in accordance with IAS 39, since the Silent Partnership Assets are managed and whose performance are evaluated by the Group on a fair value basis in accordance with a documented risk management strategy. The fair value of the financial liabilities were USD80,107 thousand as at December 31, 2016, and was estimated based on the anticipated operating results and cash flows generated by the related solar parks. The assumptions used in the fair value evaluation are disclosed in note 35. During the year ended December 31, 2016, a loss associated with the change in fair value and extinguishment associated with the original silent partnership agreement was recognized in other loss of USD2,764 thousand. During the year ended December 31, 2017, the Silent Partner has alleged that the Company had breached certain terms of the Silent Partnership Agreement, and demanded the exercise of its option right in connection with the Silent Partnership Agreement to adjust the original percentage of contribution ratio under the Silent Partnership Agreement so that it can enjoy15% cumulative IRR immediately. The Company recorded a fair value of JPY 13.6 billion (USD 120.8 million) as of December 31, 2017, and a loss of USD37.9 million associated with change of the fair value was recorded accordingly, which reflect Silent Partner’s claim for 15% cumulative IRR based on the option statements. According to the Silent Partnership Agreement, by August 27, 2018, SSJ should either secure financing for the purchase of, or secure a third-party offer to purchase, the SSJ Silent Partnership Assets, therefore such liability was reclassified as current liability. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 30. OTHER NON-CURRENT LIABILITIES December 31, 2016 2017 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) — Transaction (b) Transaction (c) Held for trading derivatives not designated in hedge accounting relationships (d) Asset retirement obligation (e) Others (a) This transaction is related to the Silent Partnership in Japan, which was reclassified into current liability.(Note 29) (b) During the year ended December 31, 2015, three subsidiaries of SSJ, which holds four IPP solar parks, entered into silent partnership agreements with JA Mitsui Lease (the “JAML”). JAML provided approximately JPY63 million (USD519 thousand) in cash at the inception of the agreements, which amounted to 10% portion of total contributions in each subsidiaries, and in return are entitled to receive return in the next 15 years from the date of agreements based on an amount specified in accordance with formulas in the agreements. The fair value of this instrument is estimated based on the anticipated operating results and cash flows generated by the related solar parks for the contractual period of 15 years. The carrying amount of financial liabilities are USD829 thousand and USD1,253 thousand as at December 31, 2016 and 2017 with a loss associated with a change in fair value to the other gain of USD 86 thousand in 2016 and other loss of USD 396 thousand in 2017. The amount is designated as financial liabilities at FVTPL on initial recognition on the consolidated statement of financial position since the amount and timing of return is variable. The movement of the balance is as follows: 2016 2017 Thousand USD Thousand USD As at January 1, Fair value effect during the year ) Exchange difference As at December 31, (c) On September 18, 2015, the Group’s wholly-owned subsidiary Energy Capital Investment S.a.r.l (“ECI”), and a third party Hudson Solar Cayman, LP (“Hudson”), a private equity and infrastructure firm entered into strategic partnership agreements to fund solar projects in Latin America. As part of this partnership, Hudson will invest USD50 million by way of the convertible notes issued by ECI for the constructions of solar projects in Chile and Uruguay, and then they will receive a 49 percent non-controlling equity in these projects upon their completion if it elects to convert the outstanding principal and interest on the notes into such equity interest. On July 15, 2016, the agreement was amended to change the underlying projects from those in Chile to US. As of December 31, 2017, USD48.2 million has been funded under this arrangement. Under the note purchase agreement, initial amortization date means, for any notes, the earlier of the date which is nine months after the commercial operation date (for any projects, the date on which such projects enters into full commercial operation, achieves preliminary acceptance, achieves technical acceptance or other similar concept, as determined in accordance with the primary construction contract(s) for such project.) of the relevant project and twenty four months after the note purchase date. Then the maturity date of the notes will be the earlier of the twentieth anniversary of the initial amortization date or August 19, 2036. After all construction costs of project companies have been funded through long-term financing from Inter-American Development Bank, and upon completion of solar parks construction, the equity conversion will be effected. Hudson holds the conversion option and the mandatory prepayment option under the notes agreement. If an equity conversion has not occurred or delayed more than one year, the repayment of principal and interest is paid semi-annually according to repayment schedule set out in each note and the date of the request for note purchase is based on the estimated commercial operation date. The outstanding principal balance of each note shall be due and payable in full on the maturity date. The share price for conversion is equal to the equity value of the relevant project company multiplied by the percentage ownership in such project company represented by such project company shares on the date of conversion. On each equity conversion date, the outstanding principal balance of the notes issued in connection with the project company that is the subject of the equity conversion. The Group accounted for the Hudson notes agreement as a financial liability designated as fair value through profit or loss (“FVTPL”) in accordance with IAS39. The fair value on initial recognition is the transaction price. For the year ended December 31, 2016 and 2017, a loss of USD279 thousand and USD791 thousand was recognized respectively. The movement of the balance is as follows: 2016 2017 Thousand USD Thousand USD As at January 1, Additional received from Hudson — Interest addition during the year Fair value effect during the year Less: Interest paid back during the year — ) As at December 31, (d) During the year ended December 31, 2015, SSJ entered into two loan agreements totaling approximately JPY 2,300 million (USD19.1 million) in support of its business development. The loan agreements provide for a floating interest rate equal to 6-month Tokyo Interbank Offered Rate (“TIBOR”) plus 2.2%. To manage the interest rate exposure, SSJ entered into interest swap arrangements for the same period of the loan to swap the floating rate to a fixed interest rate equal to 3.16% and 3.08%. During the years ended December 31, 2016, SSJ entered into one loan agreement totaling approximately JPY 1,570 million (USD13.5 million) in support of its business development. The loan agreement provides for a floating interest rate equal to 6-month TIBOR plus 2%. SSJ had interest swap arrangement for the same period of the loan to swap fixed interest rate equal to 2.68%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swap, which amounted to a loss of USD744 thousand and a gain of USD204 thousand was recognized during the year ended December 31, 2016 and 2017 respectively. The major terms of these contracts are as follows: Notional amount Maturity Swaps JPY 547,200,000 May 23, 2031 From 6-months JPY TIBOR+2.2% to 3.16% JPY 1,752,800,000 May 31, 2032 From 6-months JPY TIBOR+ 2.2% to 3.08% JPY 1,570,000,000 November 30, 2032 From 6-months JPY TIBOR+ 2% to 2.68% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities Japan 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2015 to 2032 During the year ended December 2016, the Group acquired 23 solar parks in the USA, and assumed three bank loans totaling USD5.65 million and interest rate swaps agreements. The loan agreement provides for a floating interest rate equal to USD Federal Reserve statistical release H.15 (“Prime H.15”) for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5.75%, 6.00% and 6.27%, respectively. The 5.75% and 6.27% related interest swap arrangements were terminated in 2017, due to the termination of loan agreements. During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swaps, which amounted to USD181 thousand gain and USD 3 thousand loss was recognized in the other losses for the year ended December 31, 2016 and 2017 respectively . Notional amount Maturity Swaps USD 20,200,000 December 8, 2027 From 3-month-USD Prime H.15 to 5% USD 2,000,000 June 30, 2026 From 3-month-USD Prime H.15 to 6% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities USA 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2014 to 2019 The interest rate swaps settle on a quarter basis. The floating and fixed rate on the interest rate swaps is the local interbank rate of Japan and USA. The Group will settle the difference between the fixed and floating rate on a net basis. (e) The asset retirement obligation liability reflects the present value of estimated cost of decommissioning associated with long-lived assets at a future date. The liabilities incurred, including those from acquisition, are USD 2.1 million for the year ended December 31, 2016, and USD 4.8 million for the year ended December 31, 2017. The accretion expenses are USD 355 thousand and USD 108 thousand for the year ended December 31, 2016 and 2017, respectively. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL | |
SHARE CAPITAL | 31. SHARE CAPITAL Number Share Thousand The Company Ordinary shares of USD0.0001 each Authorized: On August 19, 2013 and December 31, 2013 — Issued: On August 19, 2013 and December 31, 2013 — Issued at IPO On December 31, 2014 and 2015 Issued: On July 15, 2016 On December 31, 2016 and 2017 During the year ended December 31, 2016, the Group issued 29,519,844 restricted ordinary shares to SunPeak Universal Holdings, Inc. as part of the consideration to acquire 23 solar parks in USA (note 33). The par value and fair value of shares issued was USD 2,952 and USD10, 147,446 as of the acquisition date. As of December 31, 2016 and 2017, the Group had 1,430,000 and 940,000 ordinary shares respectively, including restricted shares, which were legally issued according to its share incentive plans, but were not deemed issued or outstanding from an accounting perspective. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 32. SHARE-BASED COMPENSATION (A) SHARE OPTION SCHEME A share option scheme (the “Share Option Scheme”) was adopted by Sky Solar Holdings pursuant to a resolution passed in 2009 for the primary purpose of providing incentives to directors and eligible employees. Under the Share Option Scheme, Sky Solar Holdings may grant options to eligible employees of the Group to subscribe for shares in Sky Solar Holdings. The total number of shares in respect of which options may be granted under the Share Option Scheme is not permitted to exceed 22,195,122 shares of Sky Solar Holdings in issue at any point in time, without prior approval from the shareholders of Sky Solar Holdings. The number of shares issued and to be issued in respect of which options granted and may be granted to any individual in any one year is not permitted to exceed 1% of the shares of Sky Solar Holdings in issue at any point in time, without prior approval from the shareholders of Sky Solar Holdings. No consideration is paid or payable on the grant of an option. Options may be exercised at any time upon vesting up to 10 years from the date of grant, at which point they expire. In 2010, Sky Solar Holdings granted 2 tranches of share options to employees of the Group. The exercise price of the options under tranches 1 and 2 was USD0.6833 per share option. For the first tranche of options, 50% of the options vest on the first year anniversary from the date of grant and the remaining options vest on the second year anniversary from the date of grant. For the second tranche of options, 25% of the options vest on the first year anniversary from the date of grant, 25% of the options vest on the second year anniversary from the date of grant, 25% of the options vest on the third year anniversary from the date of grant and the remaining options would be vest on the fourth year anniversary from the date of grant. The number of share options outstanding at the beginning and end of 2015, 2016 and 2017 was 729,000, and vested and exercisable at the end of 2015, 2016 and 2017 were 729,000, 729,000 and 729,000 respectively. The weighted average remaining contractual life as at December 31, 2017 was 2.05 years. The estimated fair values of the Tranche 1 and 2 options granted were USD144 thousand and USD1,509 thousand, respectively. (B) EQUITY INCENTIVE PLAN The Company has adopted the 2014 Equity Incentive Plan made effective as of October 30, 2014. Under the Equity Incentive Plan, the Company may grant options and restricted shares to eligible employees or directors of the Group to subscribe for shares in the Company. No consideration is paid or payable on the grant of an option. Options may be exercised at any time upon vesting up to 10 years from the date of grant, at which point they expire. On November 13, 2014, the Company granted 330,000 share options to directors of the Group under 2014 Equity Incentive Plan. The exercise price of the options under this tranche was USD1.0 per share option. The options shall vest and become exercisable with respect to one third of shares initially covered by the option on each of the first anniversary of the date of grant, the second anniversary of the date of grant, and the third anniversary of the date of grant. As the directors were resigned in June 2017, the option related to third anniversary of the date of grant cannot vest and be exercised. As at the end of each reporting period, the number of unvested share options and fair values in relation to these unvested share options not yet recognized did not have material impacts to the Group’s results or financial position. The contractual life was ended in 2017. On November 14, 2014, the Company granted 1,800,000 restricted shares to employees of the Group under 2014 Equity Incentive Plan. 25% of the restricted shares shall vest immediately upon the date of the listing of the Company’s American Depositary Shares on the NASDAQ Capital Market (the “IPO Date”). The rest 75% of the restricted shares shall vest with respect to 25% of restricted shares initially covered on each of the first anniversary of the IPO date, the second anniversary of the IPO date, and the third anniversary of the IPO date. As at December 31, 2016 and December 31, 2017, the unrecognized amounts of the unvested restricted shares were approximately USD174 thousand and nil, respectively. The Company measured the fair value of the restricted shares based on the open market quote of the Company’s shares on the IPO date which was US$1.14.” On July 1, 2015 and August 1, 2015, the Company further granted 500,000 and 500,000 restricted shares, respectively, to one employee of the Group under 2014 Equity Incentive Plan. 50% of the restricted shares shall vest on each of the first anniversary of the date of grant, and the rest 50% shall vest of the restricted shares shall vest on the second anniversary of the date of grant. As at December 31, 2016 and 2017, the unrecognized amounts of the unvested restricted shares were approximately USD156 thousand and nil, respectively. The Company measured the fair value of the restricted shares based on the open market quote of the Company’s shares, which was US$1.18 and US$1.13, respectively.” For the year ended December 31, 2015, 2016 and 2017, the fair values recognized in relation to the restricted shares amounted to approximately USD1,389 thousand, USD997 thousand and negative USD223 thousand, respectively, were recorded in the consolidated financial statements as follows: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Cost of sales — — — Administrative expenses ) ) The negative USD 223 thousand was due to the resignation of the directors and eligible employees of the Group in 2017. |
ACQUISITION OF SUBSIDIARIES
ACQUISITION OF SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITION OF SUBSIDIARIES | |
ACQUISITION OF SUBSIDIARIES | 33. ACQUISITION OF SUBSIDIARIES To expand business in the USA, on May 6, 2016, the Group entered into an agreement with Greenleaf-TNX Management, LLC (“GTL”) and SunPeak Universal Holdings, Inc. (“Sunpeak”) to acquire all the shares held by them in Greenleaf Clear Skies I, Greenleaf Clear Skies II, and Greenleaf Clear Skies IV (the “Acquired Companies”). The Acquired Companies own 100% equity interest of Acquired Companies which control 23 solar parks in the USA, and the Acquired Companies with non-controlling interests are as follows: · Greenleaf Clear Skies I owns 100% Class B membership interests of GLT NLH2 Solar, which in turns owns 100% Sun Harvest Solar; · Greenleaf Clear Skies II owns 100% GLT Pioneer Solar, which in turns owns 90% of Greenfield PV Holdings, which owns 99.99% of Pioneer Vally Solar, which in turns owns Axio Green, LLC; · Greenleaf Clear Skies IV owns 100% Class B membership interests of Cloverdale Solar, which in turns owns 100% Cloverdale Solar I. The transaction is closed on July 15, 2016 and was recognized as a business combination. The fair value of the total consideration transferred at the date of acquisition was USD15.8 million, which consisted of USD5.7 million cash settled, 29,519,844 validly issued restricted ordinary shares, which can be traded freely in the market after 180 days, with USD 10.1 million fair value calculated at stock price as of the acquisition date. The assets acquired and the associated liabilities assumed are as follows: Thousand USD Current assets Bank and cash Trade and other receivables Non-current assets IPP solar parks Other long-term assets Current liabilities ) Trade and other payables ) Short-term bank loan ) Non-current liabilities ) Assets Retirement Obiligation ) Long-term bank loan ) Other long-term liabilities ) Non-controlling interest Net assets acquired Consideration and satisfied by: Issuance of ordinary shares Cash paid Net cash outflow on acquisition of a subsidiary is as follows: Cash paid as consideration Less: cash received in acquired companies Net cash outflow arising on acquisition: Included in the profit for the year of the Group are net income amounting to approximately USD1,753 thousand attributable to the additional business generated by the above entities holding IPP solar parks. Revenue for the year included approximately USD3,836 thousand generated from the acquirees. Had the acquisition been completed on January 1, 2016, total group revenue for the year would have been USD 69,761 thousand and profit for the year would have been USD5,100 thousand. The pro forma information is for illustrative purposes only and is not necessarily an indication of revenue and results of operations of the Group that actually would have been achieved had the acquisition been completed on January 1, 2016, nor is it intended to be a projection of future results. In determining the “pro-forma” revenue and profit of the Group had the acquirees been acquired at the beginning of the current year, the management of the Group have calculated depreciation of plant and equipment acquired on the basis of the fair values arising in the initial accounting for the business combination rather than the carrying amounts recognized in the pre-acquisition financial statements. There was no acquisition of subsidiaries during the year ended December 31, 2017. |
DISPOSAL OF SUBSIDIARIES
DISPOSAL OF SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
DISPOSAL OF SUBSIDIARIES | |
DISPOSAL OF SUBSIDIARIES | 34. DISPOSAL OF SUBSIDIARIES On March 31, 2016, SSJ disposed Solar Tech K.K (“ST”), one of its subsidiaries, which was in a net liability position, to a third party for JPY 900,000 yen (USD 8 thousand) and recognized a gain of USD 1.7 million. Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Deferred tax assets Non-current Assets IPP solar parks Long term deposit and others Current Liabilities ) Trade and other payables ) Tax payable ) Non-current Liabilities ) Borrowings ) Net liabilities disposed of ) Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received Net liabilities disposed of Gain on disposal of a subsidiary Net cash outflow on disposal of a subsidiary is as follows: Thousand USD Cash and cash equivalent balances disposed of Cash received as consideration Net cash outflow arising on disposal On September 29, 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. The Group continues to own a 75% equity interest and is able to appoint two out of four directors in the board of directors of 1088526. As a result of the transaction, the Group concluded it no longer was able to exercise control, but continued to have significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; and (2) the other shareholder have the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1088526 was measured at fair value, determined based on a discounted cash flow model of the underlying solar parks. The consideration received for the 25 preferred shares in 1088526 is CAD10.6 million (USD8.0 million). The Group recognized a gain of USD10 million upon the disposal of subsidiary. Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Other current asset Non-current Assets IPP solar parks Current Liabilities ) Trade and other payables ) Borrowing ) Non-current Liabilities ) Long-term borrowing ) Swap liability ) Net liabilities disposed of ) Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: Net liabilities disposed of Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary ) Re-evaluate fair value of residual investment Gain on disposal of a subsidiary Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal In January 2017, Energy Capital Investment II sarl (“ECI”), a wholly-owned subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. the (“Jade”), to sell its 25 preferred share in the capital of 1091187 B.C, Ltd. (“1091187”), with total purchase price of CAD4.0 million (USD3.0 million). 1091187 was incorporated with total capital of 75 common shares and 25 preferred shares, and owns Sky Solar (Canada) FIT 2 LP (“FTP 2LP”) and its 6 operating solar facilities. The subsidiary was reclassified as held for sale as of December 31, 2016, and the transaction was completed in January 2017. The Company has significant influence over 1091187 B.C, Ltd. after this transaction. The Group’s residual investment in 1091187 was measured at fair value, determined based on a discounted cash flow model of the underlying solar parks. The consideration received for the 25 preferred shares in 1091187 is CAD4.0 million (USD3.0 million). The Group recognized a gain of USD1.4million upon the disposal of subsidiary. Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Non-current Assets IPP solar parks Other Non-current Assets Current Liabilities ) Trade and other payables ) Borrowing ) Non-current Liabilities ) Long-term borrowing ) Net Assets disposed of Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: Net assets disposed of ) Re-evaluate fair value of residual investment Gain on disposal of a subsidiary Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal In January 2017, Sonusco Limited and Neurlus Limited, subsidiaries of the Group in Greece, entered into share purchase agreements with A.W. Aktina Wind Limited, to sell all shares of companies based in Cypriot, all of which hold 20 operating solar parks in Greece with capacity of 23.0 MW. The total purchase price was about EUR39.7 million (USD41.9 million). These subsidiaries were reclassified as held for sale as of December 31, 2016. The transaction was completed in April 2017, and the Group recorded a gain of USD 416 thousand. Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Non-current Assets IPP solar parks Other Non-current Assets Current Liabilities ) Trade and other payables ) Net Assets disposed of Gain on disposal of a subsidiary is as follows: Thousand USD Cash Consideration received in: Net assets disposed of ) Gain/(Loss) on disposal of a subsidiary Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 35. FINANCIAL INSTRUMENTS (a) Categories of financial instruments Year ended December 31, 2016 2017 Thousand USD Thousand USD Loans and receivables: Trade and other receivables Amounts due from other related parties Amount due from Sky Solar Holdings Co., Ltd. — Restricted cash Cash and cash equivalents Total loans and receivables Financial liabilities Liabilities at amortized cost: Trade and other payables Amounts due to other related parties — Borrowings Total liabilities at amortized cost Liabilities at FVTPL Other Current liabilities — Other non-current liabilities Total liabilities at FVTPL (b) Financial risk management objectives and policies The Group’s activities expose it to a variety of financial risks including market risk, credit risk and liquidity risk. This note presents information about the Group’s exposure to each of these risks, and the objectives, policies and processes for measuring and managing them. The management of the Company have the overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange rate to determine market risk. Risk management is carried out under policies approved by the management of the Company. The finance department identifies and evaluates financial risks in close co-operation with the Group’s operating units. The management of the Company provide written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk and liquidity risk. Currency risk Certain monetary assets and liabilities of the Group’s subsidiaries denominated in currencies other than the functional currency USD, including EURO, JPY and CAD. The following table presents these monetary assets and liabilities in USD at the end of each reporting period using the exchange rates as of the end of the reporting period: Year ended December 31, 2016 2016 2016 2017 2017 2017 Thousand Thousand Thousand Thousand Thousand Thousand Denominated Denominated Denominated Denominated Denominated Denominated Cash and cash equivalents Restricted cash Trade and other receivables Amount due from other related parties — — Total financial assets Trade and other payables Borrowings — — Amounts due to other related parties — — — — — Other financial liabilities — — — — Total financial liabilities The Group’s subsidiaries are mainly exposed to the foreign currency risk with respect to the EURO, JPY and CAD. The following table details sensitivity of the Group’s subsidiaries and the Company to a 10% increase and decrease in their respective functional currencies against respective foreign currencies. The 10% sensitivity rate used represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the end of each reporting period for a 10% change in respective functional currencies of the Group’s subsidiaries. A positive number below indicates an increase in profit where their respective functional currencies strengthen 10% against the functional currency. For a 10% weakening of their respective functional currencies against foreign currencies, there would be an equal and opposite impact on the equity and the balances below would be negative. Year ended December 31, 2016 2017 Thousand USD Thousand USD EURO CAD JPY ) ) The Group currently does not have a foreign currency hedging policy but monitors its foreign risks and will consider hedging significant foreign currency exposure should they determine it appropriate. Interest rate risk The Group’s cashflow interest rate risk relates primarily to variable-rates on restricted cash, cash and cash equivalents and borrowings. The Group’s fair value interest rate risk relates mainly to fixed-rate borrowings. Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt and the cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps at the end of the reporting period is determined by discounting the future cash flows using the curves at the end of the reporting period and the credit risk inherent in the contract. The average interest rate is based on the outstanding balances at the end of the reporting period. The sensitivity analysis below has been determined based on the exposure to interest rates for interest bearing bank balances and floating rate borrowings at the end of the reporting period. The analysis is prepared assuming that those balances outstanding at the end of the reporting period were outstanding for the whole year. A 5% increase or decrease which represents the management’s assessment of the reasonably possible charge in interest rates is used. If the interest rate on bank and other borrowings with variable interest rates had been 5% higher/lower and all other variables were held constant, the post-tax profit of the Group would increase/decrease by approximately USD22 thousand and USD268 thousand for the year ended December 31, 2016 and 2017 respectively. In management’s opinion, the sensitivity analysis is unrepresentative of the inherent interest rate risk as the exposure at the end of each reporting period does not reflect the exposure at the end of each reporting period. Credit risk The Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties is arising from the carrying amounts of the respective recognized financial assets as stated in the consolidated statement of financial position of the Group. In order to minimize and account for the exposure to credit risk, the management of the Company has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. This includes carrying out reviews the recoverable amount of each individual debtor at the end of each reporting period to ensure that adequate impairment losses are made for amounts considered irrecoverable. The Group will negotiate with the counterparties of the debts for settlement plans should the need arise. The Group’s credit risk primarily relates to trade and other receivables, restricted cash, cash and cash equivalents, amount due from Sky Solar Holdings and amounts due from other related parties. The management of the Company generally grants credit only to customers and related parties with good credit ratings and also closely monitors overdue debts. The credit risk of the Group as at December 31, 2016 is concentrated on trade receivables from electricity companies in Japan, Europe and USA, that amounted to approximately USD8.3 million and accounted for 91.9% of the Group’s total trade receivables. The credit risk of the Group as at December 31, 2017 is concentrated on trade receivables from electricity companies in Japan, Europe, USA and Uruguay, that amounted to approximately USD8.0 million and accounted for 78.4% of the Group’s total trade receivables. The credit risk of the Group as at December 31, 2016 and 2017 on balances with related parties is concentrated on four and two related parties, respectively, which are engaged in solar industry in the People’s Republic of China (“PRC”) and overseas countries and amounted to approximately USD10.71 million and USD20.9 million, representing 73.2% and 93.3%, respectively, of the Group’s total balances from related parties. The credit risk on liquid funds and restricted cash of the Group is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies and good reputation. The Group does not have concentration of credit risk on liquid funds at the end of each reporting period. Liquidity risk As noted in note 1, the management of the Group manages liquidity risk by closely and continuously monitoring their financial positions. The following tables detail the Group’s remaining contractual maturity for its financial liabilities based on the agreed repayment terms. The table has been drawn up based on the undiscounted cash flows, including both principal and interest, of financial liabilities based on the earliest date on which the Group can be required to pay. Weighted <1 year 1 - 2 years 2 - 3 years >3 years Total Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At December 31, 2016 Trade and other payables N/A — — — Amounts due to other related parties N/A — — — Borrowings— variable rate % Borrowings— fixed rate % At December 31, 2017 Trade and other payables N/A — — — Amounts due to other related parties N/A — — — Borrowings— variable rate % Borrowings— fixed rate % The amounts included above for variable interest rate instruments for non-derivative financial liabilities are subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of each reporting period. The following table details the Group’s liquidity analysis for its financial liabilities at FVTPL, representing liabilities recorded by the Group during the year ended December 31, 2016 and 2017 for arrangements with the Parties defined in details in note 29 and note 30, as at December 31, 2016 and 2017. The table is presented based on the undiscounted projected cash outflows on such instruments that management of the Group expects to settle. The liquidity analysis for the Group’s financial liabilities at FVTPL was prepared based on the management’s understanding of the timing of the cash flows of the derivatives. Weighted average <1 year 1 - 2 years 2 - 3 years >3 years Total Total Thousand Thousand Thousand Thousand Thousand USD Thousand USD At December 31, 2016 Other non-current liabilities % At December 31, 2017 Other Current liabilities % — — — Other non-current liabilities % Fair value measurements Some of the Group’s financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorized (levels 1 to 3) based on the degree to which the inputs to the fair value measurements is observable. Financial liabilities Fair value Fair Valuation technique(s) Significant 1) Other Current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 29) Other non-current liabilities—USD80,107 thousand as of December 31, 2016 and Other current liabilities—USD120,820 thousand as of December 31, 2017, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 7% and 6% per annum for year 2015 and 2016, respectively. Estimated net change in electricity income and direct costs was taken into account based on management’s experience and knowledge of market conditions of the specific industries. 2) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD829 thousand and USD1, 253 thousand as of December 31, 2016 and December 31, 2017, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% per annum. (Note 1) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries. 3) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD51,143 thousand and USD55,426 thousand as of December 31, 2016 and December 31, 2017. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 10.8% for year 2016 and 2017 respectively. (Note 2) 4) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities— USD1,225 thousand and USD1,064 thousand as at December 31, 2016 and December 31, 2017. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 5) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities—USD139 thousand and USD64 thousand as at December 31, 2016 and December 31, 2017. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A Note: (1) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD22 thousand and USD32 thousand as at December 31, 2016 and December 31, 2017, respectively. A 5% increase in estimated net change in electricity income and direct cost would increase the carrying amount of the non-current liabilities by USD40 thousand and USD63 thousand as at December 31, 2016 and December 31, 2017, respectively. (2) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD194 thousand and USD510 thousand as at December 31, 2016 and December 31, 2017, respectively. The management of the Group considers that the carrying amounts of the other financial assets and financial liabilities in the consolidated financial statements approximate their fair values. There were no transfers between Level 1 and Level 2 in the years ended December 31, 2015, December 31, 2016 and December 31, 2017. Fair value measurements and valuation processes In estimating the fair value of the financial assets and financial liabilities of the Group, the management of the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the management of the Group performs the valuation themselves with competent and qualified team members. The team establishes the appropriate valuation techniques and inputs to the model. The Chief Financial Officer reports the valuation findings to the board of directors of the Company regularly to explain the cause of fluctuations in the fair value of the related financial assets and liabilities. Information about the valuation techniques and inputs used in determining the fair value of the financial assets and liabilities are disclosed above. (c) Capital management The Group manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balances. The capital structure of the Group consists of net debt (which includes borrowings net of cash and cash equivalents) and equity attributable to owners of the Company (comprising issued share capital, share premium and other reserves) and to a limited extent, non-controlling interests. The Group reviews the capital structure regularly. As part of this review, consideration is given to the cost of capital and the risks associated with each class of capital and will attempt to balance its overall capital structure through raising additional capital and overall use of bank borrowings. |
DETAILS OF PRINCIPAL SUBSIDIARI
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | 12 Months Ended |
Dec. 31, 2017 | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | 36. DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP During the two years ended December 31, 2016 and December 31, 2017, The Company had direct and indirect interests in the following subsidiaries: Proportion of of issued share capital/registered Establishment capital held by Principal Name Region date Currency Share capital 2016.12.31 2017.12.31 activities Sky Solar Bulgaria Co EOOD Bulgaria 02/07/2009 BGN Operating entity, together with its 16 subsidiaries, engaged in the construction and management of solar parks and production and trading of solar equipment Sky Solar (Canada) Ltd. Canada 13/04/2009 CAD Operating entity, together with its seven subsidiaries, engaged in the development, construction and sale of solar parks Moktap Holdings Ltd. Cyprus 09/03/2011 EUR Holding entity Neurlus Ltd. Cyprus 16/12/2011 EUR Holding entity Sky Development Renewable Energy Resources S.A. Greece 02/12/2009 EUR Operating entity engaged in the construction, installation and management of solar parks Sky International Enterprise Group Ltd. Hong Kong 23/11/2007 HKD Holding entity Sky Solar Japan K.K. Japan 16/10/2009 JPY Holding entity Sky Solar Energy S.à.r.l. Luxembourg 28/09/2009 EUR Holding entity Sky Capital Europe S.à.r.l. Luxembourg 18/05/2010 EUR Holding entity Energy Capital Investment S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR Holding entity Energy Capital Investment II S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR Holding entity Sky Solar Iberica S.L. Spain 03/12/2009 EUR Operating entity engaged in the construction of solar parks and provision of EPC services Sky Capital America Inc. (Note b) USA 23/07/2015 USD Operating entity engaged in the development of solar parks Notes: (a) The above table lists the subsidiaries of the Group which, in the opinion of the management, principally affected the results or assets of the Group. To give details of other subsidiaries would, in the opinion of the management result in particular of excessive length. (b) The entity was newly established during the year ended December 31, 2015. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2017 | |
OPERATING LEASES | |
OPERATING LEASES | 37. OPERATING LEASES The Group as lessee Operating leases relate to leases of premises and land with lease term between 5 to 20 years. The Group does not have an option to purchase the leased land at the expiry of the lease periods. Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Minimum lease payments paid under operating leases At the end of each reporting period, the Group had commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows: At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Within one year In the second to fifth years inclusive Over five years The Group as lessor Operating leases relate to the investment property owned by the Group with lease term of 20 years. The lessee does not have an option to purchase the investment property at the expiry of the lease period. At the end of each reporting period, the Group had non-cancellable operating lease receivables as follows: At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Within one year In the second to fifth years inclusive Over five years For IPP solar parks in certain countries consists of an operating lease, there is no minimum lease payment since all lease payment is contingent based on actual volume of electricity produced. The contingent rental income the Company recognized amounts to USD7.9 million and USD4.3 million for the year ended December 31, 2016 and 2017, respectively. |
CAPITAL COMMITMENT
CAPITAL COMMITMENT | 12 Months Ended |
Dec. 31, 2017 | |
CAPITAL COMMITMENT | |
CAPITAL COMMITMENT | 38. CAPITAL COMMITMENT At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements |
RETIREMENT BENEFIT SCHEMES
RETIREMENT BENEFIT SCHEMES | 12 Months Ended |
Dec. 31, 2017 | |
RETIREMENT BENEFIT SCHEMES | |
RETIREMENT BENEFIT SCHEMES | 39. RETIREMENT BENEFIT SCHEMES The Group operated defined contribution schemes for its qualifying employees. The total costs charged to profit or loss of approximately USD734 thousand, USD816 thousand and USD627 thousand represent contributions payable to these schemes by the Group in the year ended December 31, 2015, 2016 and 2017, respectively. As at December 31, 2016 and 2017, contributions of USD89 thousand and nil due in respect of the year ended December 31, 2016 and 2017 had not been paid over the plans, respectively. The amounts were paid subsequent to the end of the reporting period. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 40. RELATED PARTY TRANSACTIONS Other than the balances and transactions with related parties as disclosed elsewhere in these consolidated financial statements, the Group entered into the following significant transactions with related parties: (a) Sales to related parties Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Chaorisky Solar and its subsidiaries — — — RisenSky Solar and its subsidiaries China New Era — — — Oky Solar Holdings and its subsidiaries — Sky Global Solar S.A. (b) Compensation of key management personnel The remuneration of directors and other members of key management were as follows: Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Short-term benefits Retirement benefit scheme contributions Share-based payment expense The remuneration of directors and key executives is determined by the board of directors having regard to the performance of individuals and market trends. (c) Interest charged by Beijing Sky Solar Investment and Sky Solar New Energy at a rate of 9.5% per annum, and charged by Sky Solar (Hong Kong) International at a rate of 12% per annum. Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Beijing Sky Solar Investment Management Co., Ltd. — — Sky Solar New Energy Investment Limited — — Sky Solar (Hong Kong) International Co., Ltd. — — (d) During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. Annual license fee will be based on the lower of HK$10 million (approximately US$1.3 million) and 0.05% of gross revenue of the Group from the year ended December 31, 2014 onwards. During the year ended December 31, 2016 and 2017, the Group has accrued approximately USD33 thousand and USD28 thousand using this trademark, respectively. (e) On September 19, 2017, the Company entered into a settlement agreement with Mr. Su to resolve all potential claims by the Company against Mr. Su and certain entities controlled by him concerning certain fund transfers, which were not approved by the board or the audit committee and which lacked insufficient documentary support, as well as all potential claims that Mr. Su and such entities may have against the Company in connection with Mr. Su’s employment at the Company. Under this agreement, various debt assignment agreements signed among the Company, certain third parties, and certain entities controlled by Mr. Su in April 2017 shall have no effect and be rescinded immediately; and Mr. Su agrees to pay back to the Company approximately US$15.2 million and failing this, authorize the Company to sell on behalf of him and /or transfer to the Company the American depositary shares that he holds in the Company to pay for such settlement amount. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 41. SUBSEQUENT EVENTS On March 30, 2018. the company cooperated with Renova, a listing company in Japan, and NEC Capital, and invested to a 40.8 MW project in Japan. And the company invested JPY529 million (US$4.7 million) for 45% of the distribution of profit or loss. This project is expected to complete in October 2021. |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Statement of compliance | 3.1 Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. |
Basis of preparation | 3.2 Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; · Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs for the asset or liability. These policies have been consistently applied throughout the periods presented. |
Basis of consolidation | 3.3 Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company: · has power over the investee; · is exposed, or has rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: · the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; · potential voting rights held by the Company, other vote holders or other parties; · rights arising from other contractual arrangements; and · any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income (expense) from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (expense) are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Non-controlling interests in subsidiaries are presented separately from the Group’s equity therein. Changes in the Group’s ownership interests in existing subsidiaries Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture. |
Business combinations | 3.4 Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: · deferred tax assets or liabilities, and asset or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS12 Income Taxes and IAS 19 Employee Benefits respectively; · liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at the acquisition date (see note 3.17.2); and · assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS. |
Investments in associates | 3.5 Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with IFRS 5. Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognized immediately in profit or loss in the period in which the investment is acquired. The requirements of IAS 39 are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IAS 39. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the Group, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group. |
Revenue recognition | 3.6 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable and represents amounts of goods sold and services provided in the normal course of business, net of discounts and sales related taxes, if any. Electricity sales income When the Group owns and operates solar parks for the purpose of generating income from the sale of electricity over the life of the solar parks, electricity generation income is classified as revenue. When electricity income is generated from solar parks which the Group holds as inventories, the electricity income is considered incidental and classified as other operating income. Electricity generation income is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. EPC services solar energy system sales - Provision of pipeline plus EPC services The provision of Pipeline plus EPC services involves application of permits, sourcing of solar modules, and provision of construction services. The Group either applies for the permits required to construct and operate solar parks itself or acquires the permits through the acquisition of the equity interests in project companies, which are typically formed for the specific purpose of holding such permits. In the course of providing Pipeline plus EPC services, the Group sells the permits to customers through the disposal of project companies holding the relevant permits. Revenue from disposing project companies holding permits is recognized when equity interests in the relevant project companies are transferred to customers by the Group at which time control is transferred. In addition to revenue from sales of permits as discussed above, the Group also enters into separate contracts with customers for sourcing of modules and provision of construction services for their project companies if it is requested by the customers. Revenue from modules sourced and provision of construction service is recognized in accordance with sales of solar modules and construction contract discussed below. EPC services solar energy system sales - Build and transfer of solar parks Revenue from BT represents the sale of completed solar parks and is recognized when titles to the solar parks have been transferred at which point control is passed to the customer. Other sales - Sales of solar modules Revenue from the sales of solar modules is recognized when the modules are delivered and titles have passed. Solar modules are considered delivered and their titles have passed, at the point at which all the following conditions are satisfied: · the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; · the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; · the amount of revenue can be measured reliably; · it is probable that the economic benefits associated with the transaction will flow to the Group; and · the costs incurred or to be incurred in respect of the transaction can be measured reliably. Other sales — O&M service Income from provision of O&M service and other administrative service is recognized when services are provided. Others Interest income from financial assets is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. |
Construction contracts | 3.7 Construction contracts When the outcome of a construction contract can be estimated reliably, revenue and costs are recognized by reference to the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognized as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediately. Where contract costs incurred to date plus recognized profits less recognized losses exceed progress billings, the surplus is shown as amounts due from customers for contract work. For contracts where progress billings exceed contract costs incurred to date plus recognized profits less recognized losses, the surplus is shown as the amounts due to customers for contract work. Amounts received before the related work is performed are included in the consolidated statement of financial position as a liability under advances received. Amounts billed for work performed but not yet paid by the customer are included in the consolidated statement of financial position under trade and other receivables. |
Inventories | 3.8 Inventories The Group’s inventories mainly comprise permits and related costs capitalized during the course of obtaining permits, solar modules and solar parks under development or completed solar parks that are held for sale by the Group within normal operating cycle which is usually twelve months since their completion of construction. Inventories are stated at the lower of cost and net realizable value. Costs of solar modules are calculated using weighted average method. Costs of permits include capitalized costs incurred to obtaining such permits (for example legal expenses, consultancy fees, staff costs and other costs). Costs of solar parks under development include costs relating to solar parks capitalized before construction is completed, such as modules installed and development costs incurred. The proceeds from the sale of solar parks held for sale is recognized as revenue of the Group and the carrying amount of the solar parks which is recognized as costs of sales of the Group. Net realizable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Provisions are made for inventory whose carrying value is in excess of net realizable value. Certain factors could impact the realizable value, so the Group continually evaluates the recoverability based on assumptions about market conditions. The Group regularly reviews the cost against its estimated net realizable value and records lower of cost and net realizable value to cost of sales, if inventories have costs in excess of estimated net realizable values. |
Assets classified as held for sale | 3.9 Assets classified as held for sale Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. When the Group is committed to a sale plan involving disposal of an investment, or a portion of an investment, in an associate or joint venture, the investment or the portion of the investment that will be disposed of is classified as held for sale when the criteria described above are met, and the Group discontinues the use of the equity method in relation to the portion that is classified a held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. The Group discontinues the use of the equity method at the time of disposal when the disposal results in the Group losing significant influence over the associate or joint venture. After the disposal takes place, the Group accounts for any retained interest in the associate or joint venture in accordance with IAS 39 unless the retained interest continues to be an associate or a joint venture, in which case the Group uses the equity method (see the accounting policy regarding investments in associates or joint ventures above). Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. |
IPP solar parks | 3.10 IPP solar parks IPP solar parks are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Costs include expenditures for solar modules, permits and other direct costs capitalized in the course of construction. Such costs are capitalized starting from the point in time it is determined that development of the IPP solar project is probable. Permits and related costs capitalized during the course of obtaining permits and solar parks under development are stated in the consolidated statement of financial position at cost less subsequent accumulated impairment losses, if any. Depreciation of completed solar parks commences once the solar parks are successfully connected to grids and begin generating electricity. Depreciation is recognized over their estimated useful lives of the solar parks (less residual value if any), using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. IPP solar parks are derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of solar parks is determined as the difference between the sales proceeds and the carrying amount of the solar parks and is recognized in other operating income and loss. At the end of each reporting period, the Group performs impairment review on IPP solar parks when impairment indicators arise in different regions, if any. |
Property, plant and equipment | 3.11 Property, plant and equipment Property, plant and equipment are stated in the consolidated statement of financial position at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. Depreciation is recognized so as to write off the cost of assets less their residual values over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives after taking into account the residual values: Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss. |
Intangible assets | 3.12 Intangible assets Intangible assets acquired separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized. |
Investment property | 3.13 Investment property Investment property are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost, less subsequent accumulated depreciation and subsequent accumulated impairment losses, if any. An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the investment property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the investment property is derecognized. |
Leasing | 3.14 Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Group as lessor Contingent rental arising under operating leases are recognized as rental income in the period in which they are incurred. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term. IPP solar parks—the Group as lessor For IPP solar parks where customers purchase electricity from the Group under power purchase agreements in certain countries, facts and circumstances of the Feed-in-Tariff policies were changed mandatorily which triggered re-assessment on accounting for these agreements. As a result, the newly issued Feed-in-Tariff policies may indicate that it is remote that one or more parties other than the purchaser will take more than an insignificant amount of the output or other utility that will be produced or generated by the asset during the term of the arrangement, and the price that the purchaser will pay for the output is neither contractually fixed per unit of output nor equal to the current market price per unit of output as of the time of delivery of the output. These agreements will be accounted for under such circumstance pursuant to IFRIC 4, Determine whether an Arrangement Contains a Lease and IAS 17, Leases as an operating lease. Revenue is recognized based upon the amount of electricity delivered as determined by remote monitoring equipment at rates specified under the contracts, assuming all other revenue recognition criteria are met. The rental income from operating lease of these IPP solar parks is presented as electricity generation income in note 3. There is no minimum lease payment since all lease payment are contingent based on actual volume of electricity produced. The Group as lessee Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Foreign currencies | 3.15 Foreign currencies In preparing the financial statements of each individual group entity, transactions in currencies other than the functional currency of that entity (i.e. foreign currencies) are recorded in the respective functional currency (i.e. the currency of the primary economic environment in which the entity operates) at the rates of exchanges prevailing on the dates of the transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are recognized in profit or loss in the period in which they arise. For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into the presentation currency of the Group using exchange rates prevailing at the end of each reporting period. Income and expenses items are translated at the average exchange rates for the year. Exchange differences arising, if any, are recognized in other comprehensive income (expense) and accumulated in equity under the heading of translation reserve (attributed to non-controlling interests as appropriate). On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests and are not recognized in profit or loss. For all other partial disposals (i.e. partial disposals of associates that do not result in the Group losing significant influence), the proportionate share of the accumulated exchange differences is reclassified to profit or loss. |
Borrowing costs | 3.16 Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in profit or loss in the year in which they are incurred. |
Taxation | 3.17 Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. 3.17.1 Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘(loss) profit before taxation’ as reported in the consolidated statement of profit or loss and other comprehensive income (expense) because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. 3.17.2 Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. In addition, Group’s subsidiaries have legally enforceable rights to set off a tax asset and tax liability when they relate to income taxes levied by the same taxation authority and the taxation authority permits the Group’s subsidiaries to make or receive a single net payment. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. 3.17.3 Current and deferred tax for the year Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income (expense) or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income (expense) or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. |
Impairment of tangible and intangible assets other than goodwill | 3.18 Impairment of tangible and intangible assets other than goodwill At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Financial instruments | 3.19 Financial instruments Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. |
Financial assets | 3.20 Financial assets Financial assets of the Group consist of loans and receivables. 3.20.1 Effective interest method The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (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 debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. 3.20.2 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables (including trade and other receivables, amounts due from other related parties, amounts due from Sky Solar Holdings, restricted cash and cash and cash equivalents) are measured at amortized cost using the effective interest method, less any impairment. Restricted cash represents bank deposits pledged for borrowings and its related interest due within one year, bank deposits with predetermined usage under certain agreement and others are not available for general use. Interest income is recognized by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. 3.20.3 Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For all other financial assets, objective evidence of impairment could include: · significant financial difficulty of the issuer or counterparty; · breach of contract, such as a default or delinquency in interest or principal payments; · it becomes probable that the borrower will enter bankruptcy or financial re-organization; or For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 365 days, observable changes in national or local economic conditions that correlate with default on receivables. For financial assets carried at amortized cost, the amount of impairment loss recognized is the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade and other receivables and amounts due from other related parties, where the carrying amount is reduced through the use of an allowance account. Changes in the carrying amount of the allowance account are recognized in profit or loss. When a receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited to profit or loss. For financial assets measured at amortized cost, if, in a subsequent period, the amount of impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment losses was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized. |
Hedge accounting | 3.21 Hedge accounting The Group designates certain hedging instruments, which include derivatives, embedded derivatives and non-derivatives in respect of foreign currency risk, as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. Cash flow hedges The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the ‘other losses’ line item. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognised in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised immediately in profit or loss. |
Financial liabilities and equity instruments | 3.22 Financial liabilities and equity instruments 3.22.1 Classification as debt or equity Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3.22.2 Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. 3.22.3 Financial liabilities at fair value through profit or loss (“FVTPL”) Financial liabilities are classified as at FVTPL when the financial liabilities are either held for trading or those designated as at FVTPL on initial recognition. A financial liability is classified as held for trading if: · it has been acquired principally for the purpose of selling it in the near term; or · on initial recognition it is a part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or · it is a derivative that is not designated and effective as a hedging instrument. A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if: · such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or · the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or · it forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined contract (asset or liability) to be designated as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss is included in the ‘other losses’ line item in profit or loss and includes any interest paid on the financial liabilities. 3.22.4 Financial liabilities of amortized cost Other financial liabilities (including trade and other payables, amounts due to other related parties, borrowings, amounts due to Sky Solar Holdings) are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Interest expense is recognized on an effective interest basis. 3.22.5 Derecognition The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group continues to recognize the asset to the extent of its continuing involvement and recognizes an associated liability. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income (expense) and accumulated in equity is recognized in profit or loss. The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. |
Share-based compensation | 3.23 Share-based compensation Shares granted to the directors and eligible employees For shares granted or transferred by controlling shareholders in exchange of services received by the Group that are conditional within a vesting period, the fair value of services received is determined by reference to the fair values of relevant shares granted or transferred. Vesting conditions, other than market conditions, shall not be taken into account when estimating the fair value of the shares at the measurement date. Instead, vesting conditions shall be taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount. The amount recognized for goods or services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. The fair value of shares granted or transferred at the date of grant or date of transfer is expensed as share-based compensation on a straight-line basis over the vesting period, with a corresponding increase in equity (share-based compensation reserve). The forfeitures will be estimated to adjust over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such original estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change. At the time when the shares were cancelled during the vesting period, the Group accounts for the cancellation as an acceleration of vesting, and recognizes immediately the amount that otherwise would have been recognized for services received over the remainder of the vesting period. The amount previously recognized in share-based compensation reserve will remain in that reserve. Shares granted to non-employees Shares issued in exchange of services are measured at the fair values of the services received, unless that fair value cannot be reliably measured, in which case the services received are measured by reference to the fair value of the shares issued. The fair values of the services received are recognized as expenses, with a corresponding increase in equity (share capital and share premium), when the counterparties render services, unless the services qualify for recognition as assets. Share options granted to eligible employees Share options granted by the Company or controlling shareholders in exchange for service received by the Group are measured by reference to the fair value of the share options granted. The fair value of services received is expensed as share-based compensation on a straight-line basis over the vesting period with a corresponding increase in equity (share-based compensation reserve). At the end of each reporting period, the Group revises its estimates of the number of options that are expected to ultimately vest. The impact of the revision of the original estimates during the vesting period, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to equity. When share options are exercised, the amount previously recognized in equity will be recognized in share capital and share premium. When the share options are forfeited after the vesting date or are still not exercised at the expiry date, the amount previously recognized equity will be remained in the share-based compensation reserve. |
Provisions | 3.24 Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. 3.24.1 Warranties Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale of the relevant products, at the directors’ best estimate of the expenditure required to settle the Group’s obligation. 3.24.2 Contingent liabilities Unless the possibility of an outflow of resources embodying economic benefits is remote, contingent liabilities are disclosed where it is not probable that the Company will make a transfer of economic benefit to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. |
SIGNIFICANT ACCOUNTING POLICI50
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful life of the Property, plant and equipment | Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
REVENUE | |
Schedule of categories of the Group's revenue | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Related parties: —EPC services solar energy system sales Sales of permits — —Other sales -O&M services -Sales of solar modules — — — Subtotal Non-related parties —Electricity sales income —EPC services solar energy system sales -Provision of Pipeline plus EPC services Sales of permits — — Provision of construction services - BT — —Other sales -O&M services -Sales of solar modules — Subtotal Total |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT INFORMATION | |
Schedule of revenue and non-current assets based on geographical information | Revenue for the 2015 2016 2017 Thousand USD Thousand USD Thousand USD Bulgaria Canada Czech Germany — Greece Japan Spain USA Uruguay Non-current assets 2016 2017 Thousand USD Thousand USD Bulgaria Canada Chile Czech Greece Japan PRC Spain USA Uruguay |
Schedule of revenue from customers | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Customer A Customer B Customer C * Customer D * * The corresponding revenue does not contribute over 10% of the total revenue of the Group in the respective periods. |
INVESTMENT INCOME (Tables)
INVESTMENT INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT INCOME | |
Schedule of investment income | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Interest income Interest income from amounts due from related parties Share of profit of associates — Disposal of associates(Note a) — — (a) In March 2017, Sky Solar Japan KK entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. The company recorded a gain on disposal of subsidiaries of JPY 837 million (USD 7.4 million). |
OTHER LOSSES (Tables)
OTHER LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LOSSES | |
Schedule of other losses | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) ) ) ) Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as at FVTPL (Note 30) ) ) Transaction cost related to FVTPL liabilities (Note a) — ) — Net foreign exchange (losses) gains Others, net ) ) ) ) ) (a) The transaction cost represents the professional fee directly attributable to the issue of the financial liability to Hudson. |
FINANCE COSTS (Tables)
FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCE COSTS | |
Schedule of finance costs | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Interest on: Bank borrowings ) ) ) Other borrowings ) ) ) ) ) ) |
STAFF COSTS, ADMINISTRATIVE E56
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |
Schedule of staff costs, administrative expenses and cost of sales and services | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Depreciation of property, plant and equipment Amortization of intangible assets Depreciation of solar parks Auditor’s remuneration Directors’ emoluments: Salaries and other benefits (Note a) Retirement benefits scheme contributions Share-based compensation ) Others staff: Other staff costs Retirement benefits scheme contributions Share-based compensation ) Total staff costs |
INCOME TAX (EXPENSE) CREDIT (Ta
INCOME TAX (EXPENSE) CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX (EXPENSE) CREDIT | |
Schedule of components of Income tax (expense) credit | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Current tax ) ) ) Overprovision in prior years — — ) ) Deferred tax ) ) ) |
Schedule of reconciliation of taxation with the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD (Loss) profit before taxation ) ) Tax at the domestic income tax rate (2015: 26%, 2016: 29%, 2017: 27.8%,) ) ) Tax effect of income not taxable for tax purpose ) ) — Tax effect of expenses not deductible Overprovision in prior years ) — ) Tax effect of tax losses not recognized Recognition of deferred tax assets previously not recognized — ) — Utilization of tax losses previously not recognized — ) ) Effect of different tax rates of subsidiaries operating in other jurisdictions Income tax expense (benefit) ) ) Effective income tax rate % % % |
(LOSS) EARNINGS PER SHARE (Tabl
(LOSS) EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
(LOSS) EARNINGS PER SHARE | |
Schedule of earnings per share | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD (Loss) profit (Loss) profit for the purpose of basic and diluted (loss) earnings per share ) ) Year ended December 31, 2015 2016 2017 Number of shares Weighted average number of ordinary share outstanding- basic and diluted Basic net (loss) earnings per share ) Diluted net (loss) earnings per share ) |
Schedule of anti-dilutive shares by type | Year ended December 31, 2015 2016 2017 Options Non-vested restricted shares |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER OPERATING INCOME | |
Schedule of other operating income | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Gain(Loss) on disposal of IPP solar parks — — Gain(Loss) on disposal of subsidiaries (Note 21, Note 34) — Others |
AMOUNT DUE FROM SKY SOLAR HOL60
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. | |
Schedule of amount due from SKY SOLAR HOLDINGS CO., LTD | At December 31, 2016 2017 Thousand USD Thousand USD Amount due from Sky Solar Holdings Co., Ltd. —Current — |
AMOUNTS DUE FROM OTHER RELATE61
AMOUNTS DUE FROM OTHER RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNTS DUE FROM OTHER RELATED PARTIES | |
Schedule of amounts due from other related parties | At December 31, Notes 2016 2017 Thousand USD Thousand USD Current: Trade China New Era a Sky Global Solar S.A. h — Less: allowance for doubtful debts a ) ) Non-Trade Sky Solar (Hong Kong) International Co., Ltd. b — SWL Flash Bright Limited d — China New Era a Sky Solar New Energy Investment Ltd. e — Tany International (Hong Kong) Co., Ltd. f — Sky Solar (Canada) FIT 1 Limited Partnership i — Su Weili j — Less: allowance for doubtful debts a ) ) Non-Current: Trade Oky Solar Holdings, Ltd. and its subsidiaries g — RisenSky Solar (defined in Note 23) and its subsidiaries Non-Trade RisenSky Solar (defined in Note 23) and its subsidiaries c Notes: (a) Sky Solar Holdings is able to exercise significant influence over China New Era through its 49% ownership interest and participation on the board. In addition, certain key management of the Group acts as legal representatives of the solar plant entities controlled by China New Era. China New Era is therefore an associate of Sky Solar Holdings and considered as a related party of the Group. Included in the balance amount due from China New Era as of December 31, 2016 and December 31, 2017, an allowance for doubtful debt of USD 2.2 million is provided for receivables for which they have defaulted on payment obligation. (b) Sky Solar (Hong Kong) International Co., Ltd. is an entity which is a 100% owned and controlled by Mr. Su as at December 31, 2016 and 2017. (c) Included in the balance was a carrying amount of USD 3.8 million and as USD 4.4 million at December 31, 2016 and 2017, respectively, which carried interest at 3.0% per annum. The balance was reclassified from current to non-current as the Group does not expect to receive the repayment within twelve months after the end of the reporting period. (d) SWL Flash Bright Limited is a 100% owned subsidiary of Sky Solar (Hong Kong) International Co., Ltd. as at December 31, 2016 and 2017. (e) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. (f) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. (g) Sky Solar Japan Co., Ltd. (“Sky Solar Japan” or “SSJ”), a wholly owned subsidiary of the Group, holds 30% equity interests in Oky Solar Holdings, Ltd. (“Oky Solar Holdings”) as at December 31, 2016 and sold it in March 2017. (h) Mr. Su holds 40% equity interests in Sky Global Solar S.A. as at December 31, 2016 and December 31, 2017. Mr. Su has significant influence over the entity, and as such, Sky Global Solar S.A. is considered a related party. (i) Sky Solar (Canada) FIT 1 Limited Partnership (“FIT 1”) is controlled by 10088526 B.C, Ltd (“1088526”), an equity investee in which the Group holds 75% equity interest. (Note 23) (j) On September 19, 2017, the Company entered into a settlement agreement with Mr. Su to resolve all potential claims by the Company against Mr. Su and certain entities controlled by him concerning certain fund transfers, which were not approved by the board or the audit committee and which lacked insufficient documentary support, as well as all potential claims that Mr. Su and such entities may have against the Company in connection with Mr. Su’s employment at the Company. Under this agreement, various debt assignment agreements signed among the Company, certain third parties, and certain entities controlled by Mr. Su in April 2017 shall have no effect and be rescinded immediately; and Mr. Su agrees to pay back to the Company approximately US$15.2 million and failing this, authorize the Company to sell on behalf of him and /or transfer to the Company the American depositary shares that he holds in the Company to pay for such settlement amount. After this agreement, the Group has amount due from Mr. Su to USD 15.2 million. |
Schedule of movements in the allowance for doubtful debts of amounts due from related parties | At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year ) ) Provisions recognized on receivables — — Balance at end of the year ) ) |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of trade and other receivables | At December 31, 2016 2017 Thousand USD Thousand USD Trade receivables Value-added tax recoverable Prepaid assets and prepayments Deposits (Note a) Others (Note c) Less: allowance for doubtful debts (Note b) ) ) Note: (a) The balance as of December 31, 2016 includes (1) USD3.7 million guarantee paid under the power purchase agreements related to the solar parks in Uruguay and will be collected once the solar projects are connected to grid in 2017 (Note 25) and (2) USD7.0 million deposit under the arrangement of Hudson Note and will be collected upon completion of construction of underlying solar projects in USA and Uruguay (Note 30). The balance as of December 31, 2017 includes (1) USD 2.5 million deposit under the arrangement of Hudson Note, (2) USD 1.4 million for the EPC deposit in Canada and (3) USD 1.8 million for the litigation deposit in Japan and this deposit was received by January 2018. (b) The balance as of December 31, 2016 and 2017 mainly includes an amount receivable due from a third party to the Group of approximately USD1.1 million (equivalent to EUR1.0 million), which was incurred in 2012, claim against two third party contractors who failed to construct a solar park for one subsidiary of the Group, who delivered solar modules and made prepayment already. A settlement agreement was made in September 2012, however the two contractors failed to repay after made the first repayment of total three installments. The Group is negotiating for another settlement agreement, and based on the recent communications among the Group and two contractors, management concluded to make full provision for doubtful receivables in the amount of USD1.1 million in 2015. (c) The balance as of December 31, 2017 mainly includes (1) USD 2.6 million receivable from the sold subsidiary, (2) USD 1.3 million receivable from the EPC construction service, and (3) USD 2 million deposit for issuing the guarantee of EPC constructor in Uruguay. |
Schedule of movements in the allowance for doubtful debts of trade and other receivables | At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year Provisions recognized on receivables — — Write off — — Exchange difference ) Balance at end of the year |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES | |
Schedule of inventories | At December 31, 2016 2017 Thousand USD Thousand USD Solar modules Permits and related costs capitalized during the course of obtaining permits (a) Solar parks completed or under development those are held for sale (b) — Note: (a) In August 2016, the Group acquired 22.5MW development stage permits for the solar projects in California and Vermont. In 2017, the group was in the process of developing 11.8 MW permits in Canada. (b) The balance as of December 31, 2016 represents the cost capitalized, including land costs and cost for construction of solar parks relating to the solar parks under development in South America. These solar parks are connected at August 2017, and held as IPP solar parks. |
ASSETS CLASSIFIED AS HELD FOR64
ASSETS CLASSIFIED AS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ASSETS CLASSIFIED AS HELD FOR SALE | |
Schedule of assets classified as held for sale | At December 31, 2016 2017 Thousand Thousand Total Total IPP solar parks held for sale — Cash and cash equivalents — Trade and other receivable — Other assets — — Liabilities associated with assets held for sale — (a) As at December 31, 2016, the board of directors of the Group has approved the transaction to dispose the 20 operating solar parks with capacity of 23MW in Greece. The negotiation of the transaction was at final stage and the agreement was signed on January 4, 2017. Therefore, as of December 31, 2016, these solar projects related assets and liabilities, which were expected to be sold within twelve months, were classified as held for sale. The transaction was completed in April 2017 disposal of subsidiaries. (Note 34) (b) As at December 31, 2016, the board of directors of the Group has approved the transaction to dispose 6 operating solar parks in Canada. The negotiation of the transaction was at final stage and the agreements were signed on January 3, 2017. Therefore, as of December 31, 2016, these solar projects related assets and liabilities, which were expected to be sold within twelve months, were classified as held for sale. The transaction was completed in January 2017 as disposal of subsidiaries. (Note 34) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Carrying value - Property other than solar parks | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Schedule of property, plant and equipment | Leasehold Motor vehicles Furniture and Total Thousand USD Thousand USD Thousand USD Thousand USD COST At January 1, 2015 Additions Disposals — ) ) ) Exchange adjustments ) ) ) ) At December 31, 2015 Additions Disposals — ) ) ) Exchange adjustments ) ) ) At December 31, 2016 Additions — Disposals ) ) ) ) Exchange adjustments At December 31, 2017 DEPRECIATION At January 1, 2015 Provided for the year Eliminated on disposals — ) ) ) Exchange adjustments ) ) ) At December 31, 2015 Provided for the year Eliminated on disposals — ) ) ) Exchange adjustments ) ) — At December 31, 2016 Provided for the year Eliminated on disposals ) ) ) ) Exchange adjustments ) At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 Leasehold improvement 20 years Motor vehicles 5 years Furniture and fixtures 5 years |
IPP SOLAR PARKS, INVESTMENT P66
IPP SOLAR PARKS, INVESTMENT PROPERTY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
IPP Solar Parks | |
IPP SOLAR PARKS, INVESTMENT PROPERTY | |
Schedule of property, plant and equipment | Permits Completed Total Thousand USD Thousand USD Thousand USD At January 1, 2015 Additions — Transfer ) — Exchange adjustments ) ) ) At December 31, 2015 Additions Acquisition of subsidiaries (Note 33) — Transfer to investment property ) — ) Reclassified as held for sale (Note 19) — ) ) Disposal of subsidiaries (Note 34) — ) ) Disposal of solar parks — ) ) Transfer ) — Exchange adjustments ) At December 31, 2016 Additions Disposal of solar parks ) — ) Disposal of subsidiaries (Note a) ) ) ) Transfer ) — Exchange adjustments ) At December 31, 2017 DEPRECIATION AND IMPAIRMENT At January 1, 2015 Provided for the year — Impairment provided for the year Exchange adjustments — ) ) At December 31, 2015 Provided for the year — Impairment provided for the year — Reclassified as held-for-sale (Note 19) — ) ) Disposal of subsidiaries (Note 34) — ) ) Disposal of solar parks — ) ) Exchange adjustments ) ) ) At December 31, 2016 Provided for the year — Impairment provided for the year Disposal of subsidiaries (Note a) — ) ) Exchange adjustments At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 a) In February 2017, Sky Solar Japan KK(“SSJ”), a wholly-owned subsidiary of the Group, entered into a share purchase agreement to sell its all shares of Tokyo Solar Electricity KK(“TS”), with total purchase price of JPY 9.3 million (USD83 thousand). This disposal was aimed to maintain the strategy on high-voltage solar business, while TS was operated on low-voltage solar business with small sizes but high costs. The transaction was completed in February 2017, and the Group recorded a loss of USD 5 thousand. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Software Thousand USD COST At January 1, 2015 Additions Disposals ) Exchange adjustments ) At December 31, 2015 Additions Disposals ) Exchange adjustments At December 31, 2016 Additions Disposals ) Exchange adjustments ) At December 31, 2017 AMORTIZATION At January 1, 2015 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2015 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2016 Charge for the year Eliminated on disposals ) Exchange adjustments ) At December 31, 2017 CARRYING VALUES At December 31, 2015 At December 31, 2016 At December 31, 2017 |
INTERESTS IN ASSOCIATES (Tables
INTERESTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTERESTS IN ASSOCIATES | |
Schedule of reconciliation of changes in interest in associates | 2016 2017 Thousand USD Thousand USD As at January 1, Investment in new affiliates Return of investment in associates ) — Add: Share of profit of associates — Less: Unrealized gain from sales to associates ) — Less: Dividends received from the associates ) ) Less: Disposal of associates(Note d) — ) Exchange difference As at December 31, |
Schedule of interest in associates | Place of Proportion of nominal incorporation/ Class of value of issued capital Proportion of voting Form of principal place shares held power held Name of entity Entity of incorporation Held 2016 2017 2016 2017 Principal activities RisenSky Solar S.a.r.l. (a) Limited liability Luxemburg Ordinary % % % % Operating entity engaged in the investment, construction, financing and management of solar parks 1088526 B.C. Ltd. (b) Limited liability Canada Ordinary % % % % Operating entity engaged in the investment, construction, financing and management of solar parks 1091187 B.C. Ltd. (c) Limited liability Canada Ordinary — % — % Operating entity engaged in the investment, construction, financing and management of solar parks Oky Solar Holdings (d) Limited liability Japan Ordinary % N/A % N/A Operating entity engaged in the investment, construction, financing and management of solar parks Notes: (a) In 2011, Sky Europe entered into an agreement with Risen Energy (Hong Kong) Co., Ltd. (“Risen HK”) (a subsidiary of a company listed on the security market in the PRC) to establish a private limited liability company, namely RisenSky Solar Energy S.a.r.l. (“RisenSky Solar”). The Group is able to exercise significant influence over RisenSky Solar through its 30% ownership interest and participation on the board. RisenSky is therefore classified as an associate of the Group. (b) In 2016, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1088526 B.C. Ltd. (“1088526”), who owns Sky Solar (Canada) FIT 1 LP and its 15 commercial and industrial solar facilities in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1088526 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1088526 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1088526 was measured at fair value. (Note 34) (c) In January 2017, Energy Capital Investment II sarl (“ECI”), a subsidiary of the Group, entered into a share purchase agreement with Jade Fair Precision Ltd. (“Jade”), to sell its 25 preferred shares in 1091187 B.C. Ltd. (“1091187”), who owns Sky Solar (Canada) FIT 2 LP in Canada. Though the Group owns 75% equity interest and two out of four directors in the board of directors of 1091187 after the transaction, the Group concluded that only applied significant influence over the investee for (1) all the key relevant activities, including appointment or removal of the O&M manager and asset manager, determination and amendment of the annual budget, capital expenditure, and approval of bank borrowing etc., of 1091187 requires consent from the other shareholders; (2) the other shareholder has the rights to the majority of the variable returns from its involvement with the investee. The Group’s residual investment in 1091187 was measured at fair value. (Note 34) (d) In 2014, Sky Solar Japan entered into an agreement with Orix KK (a company listed on the security market in Japan and United States) to establish a private limited liability company, namely Oky Solar Holdings, registered in Japan, in which 30% of the share capital is subscribed by Sky Solar Japan for JPY43.5 million (USD426 thousand) while the remaining 70% is subscribed by Orix KK. In 2015, additional investment of JPY 685.7 million (USD5.7 million) was injected by Sky Solar Japan to maintain its 30% of the share capital. In 2016, the Group received JPY 169 million (USD 1.55 million) investment return, and the share capital proportion remained the same. The Group is able to exercise significant influence over Oky Solar Holdings through 30% ownership interest and participation on the board. Oky Solar Holdings is there classified as an associate of the Group. The results, assets and liabilities of this associate are accounted for in the consolidated financial statements using the equity method of accounting. In March 2017, SSJ entered into a share transfer agreement with Orix Holdings to sell the share interest in OKY Solar 1 K.K and OKY Solar Omut K.K at the consideration of JPY1,068 million (US$9.18 million), which was closed on March 29, 2017 with all consideration paid in cash. This transaction resulted a gain of disposal JPY 837 million (USD 7.4 million). |
Summary of financial information in respect of the group's associates | At December 31, RisenSky Oky Solar 1088526 Aggregate RisenSky 1091187 1088526 Aggregate Thousand Thousand Thousand Thousand Thousand Thousand Thousand Thousand Non-current assets IPP solar parks Other non-current assets Current assets Current liabilities Other current liabilities Amount due to other related parties — — — — Non-current liability Borrowings Others — — — Net assets (liabilities) ) Year ended December 31, RisenSky Oky Solar 1088526 Aggregate RisenSky 1091187 1088526 Aggregate Thousand Thousand Thousand Thousand Thousand Thousand Thousand Thousand Revenue Profit for the year ) ) Group’s share of profit of associates of the year — — — — — — Group’s share of profit of associates of the year not recognized — — ) Group’s share of other comprehensive income of associates — — — — — — — — |
DEFERRED TAX ASSETS (Tables)
DEFERRED TAX ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DEFERRED TAX ASSETS | |
Schedule of principal components of the deferred income tax assets and liabilities | Fair value change of Unrealized gain on Depreciation of Tax losses financial instruments inter-group sales solar parks Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At January 1, 2016 ) Credit (charge) to profit or loss Reclassified to held-for-sale ) — — — ) Exchange differences ) ) ) ) ) At December 31, 2016 ) Deferred tax assets ) Deferred tax liabilities — — — Credit (charge) to profit or loss ) Exchange differences ) ) At December 31, 2017 ) Deferred tax assets Deferred tax liabilities — — — |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | At December 31, 2016 2017 Thousand USD Thousand USD Long term deposits relate to IPP solar parks (a) Long-term loan to a third party (b) Others (a) The balance of long term deposits were the guarantee deposits for power purchase agreements related to the IPP solar parks in Uruguay amounting to USD3.3 million and reduced to nil as at December 31, 2016 and 2017, respectively. The balance of long term deposits for land rental related to the IPP solar parks in Japan were USD1.6 million and USD 1.7 million as at December 31, 2016 and 2017, respectively. (b) The loan to a third party represents the USD 9.2 million and USD 8.0 million long-term note receivable as at December 31, 2016 and 2017, respectively, which was obtained in connection with the acquisition of a subsidiary in the USA in 2016 which holds 23MW of solar parks (Note 33). The note receivable bears annual interest of 1% and is with principle payment schedule from 2018 to 2041. |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
TRADE AND OTHER PAYABLES | |
Schedule of trade and other payables | At December 31, 2016 2017 Thousand USD Thousand USD Trade payables(Note a) Other payables Warranty provision to customers for supply of modules Other accrued expenses Other tax payables Advances from customers (a) The trade payable balance included the EPC construction payable of USD 8.3 million in Uruguay as of December 31, 2017. |
Schedule of activity in warranty provisions modules | At December 31, 2016 2017 Thousand USD Thousand USD Balance at beginning of year Provided for the year — — Reversal for the year ) ) Balance at end of the year |
AMOUNTS DUE TO OTHER RELATED 72
AMOUNTS DUE TO OTHER RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
AMOUNTS DUE TO OTHER RELATED PARTIES | |
Schedule of amounts due to related parties | At December 31, Notes 2016 2017 Thousand USD Thousand USD Current Trade China New Era — Non-Trade Sky Solar (Hong Kong) International Co., Ltd. a — Sky Solar New Energy Investment Limited 17 — Mr. Su b — Beijing Sky Solar Investment Management Co., Ltd. c Notes: (a) The entity is 100% owned by Mr. Su as at December 31, 2016 and 2017. The Group has initially borrowed USD3 million from Sky Solar (Hong Kong) International Co., Ltd. The loan from Sky Solar (Hong Kong) International Co., Ltd. carried interest at 12% per annum. (b) On October 1, 2015, the Group entered into an agreement with Mr. Su to sell and transfer all the shares in a 100% owned subsidiary namely Sky Solar Investment Limited. In accordance with the terms of the agreement, the Group will pay an amount of USD2.4 million to Mr. Su to assume the net liabilities of Sky Solar Investment Limited in the amount of USD2.3 million and miscellaneous expense of USD0.1 million. (c) The entity is controlled by Mr. Su as at December 31, 2016 and 2017. During the year ended December 31, 2013, the Group obtained, under a license agreement entered into between the Group and the Founder for the use of a trademark “Sky Solar”. The amount is a result of the licensed trademark used. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS | |
Schedule of borrowings | At December 31, 2016 2017 Thousand USD Thousand USD Bank borrowings (a) Other borrowings Secured Unsecured Variable-rate borrowings Fixed-rate borrowings (a) During the year ended December 31, 2014 and 2015, one of the subsidiary of the Group entered into a series of 15-year loan agreements with total principle of CAD 23.2 million (USD 16.8 million) with bank. The loan agreements specified a variable interest rate equal to 3-month Canadian Dollar Offered Rate (“CDOR”) plus 2.74% - 3.43%. The agreement also includes a fixed rate option, which allows the Group to swap variable to fixed interest rate of 5.75%, 5.50% or 4.50%. |
Schedule of carrying amount repayable | At December 31, 2016 2107 Thousand USD Thousand USD Carrying amount repayable: Within one year More than one year but not exceeding two years More than two years but not exceeding five years More than five years Less: amounts repayable within one year shown under current liabilities Amounts shown under non-current liabilities |
Schedule of effective interest rates | At December 31, 2016 2017 Effective interest rate: Fixed-rate borrowings % % Variable-rate borrowings % % |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT LIABILITIES | |
Schedule of other current liabilities | December 31, Thousand USD Financial liabilities designated as fair value through profit or loss As at January 1, Fair value effect during the year Interest paid back for distribution — Exchange difference As at December 31,(Note a) (a) This transaction is related to the Silent Partnership in Japan, which was in Non-current liability as of December, 2016, and was reclassified into current liability as of December 31, 2017. |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of components of other non-current liabilities | December 31, 2016 2017 Thousand USD Thousand USD Financial liabilities designated as fair value through profit or loss Transaction (a) — Transaction (b) Transaction (c) Held for trading derivatives not designated in hedge accounting relationships (d) Asset retirement obligation (e) Others (a) This transaction is related to the Silent Partnership in Japan, which was reclassified into current liability.(Note 29) (b) During the year ended December 31, 2015, three subsidiaries of SSJ, which holds four IPP solar parks, entered into silent partnership agreements with JA Mitsui Lease (the “JAML”). JAML provided approximately JPY63 million (USD519 thousand) in cash at the inception of the agreements, which amounted to 10% portion of total contributions in each subsidiaries, and in return are entitled to receive return in the next 15 years from the date of agreements based on an amount specified in accordance with formulas in the agreements. The fair value of this instrument is estimated based on the anticipated operating results and cash flows generated by the related solar parks for the contractual period of 15 years. The carrying amount of financial liabilities are USD829 thousand and USD1,253 thousand as at December 31, 2016 and 2017 with a loss associated with a change in fair value to the other gain of USD 86 thousand in 2016 and other loss of USD 396 thousand in 2017. The amount is designated as financial liabilities at FVTPL on initial recognition on the consolidated statement of financial position since the amount and timing of return is variable. The movement of the balance is as follows: 2016 2017 Thousand USD Thousand USD As at January 1, Fair value effect during the year ) Exchange difference As at December 31, (c) On September 18, 2015, the Group’s wholly-owned subsidiary Energy Capital Investment S.a.r.l (“ECI”), and a third party Hudson Solar Cayman, LP (“Hudson”), a private equity and infrastructure firm entered into strategic partnership agreements to fund solar projects in Latin America. As part of this partnership, Hudson will invest USD50 million by way of the convertible notes issued by ECI for the constructions of solar projects in Chile and Uruguay, and then they will receive a 49 percent non-controlling equity in these projects upon their completion if it elects to convert the outstanding principal and interest on the notes into such equity interest. On July 15, 2016, the agreement was amended to change the underlying projects from those in Chile to US. As of December 31, 2017, USD48.2 million has been funded under this arrangement. Under the note purchase agreement, initial amortization date means, for any notes, the earlier of the date which is nine months after the commercial operation date (for any projects, the date on which such projects enters into full commercial operation, achieves preliminary acceptance, achieves technical acceptance or other similar concept, as determined in accordance with the primary construction contract(s) for such project.) of the relevant project and twenty four months after the note purchase date. Then the maturity date of the notes will be the earlier of the twentieth anniversary of the initial amortization date or August 19, 2036. After all construction costs of project companies have been funded through long-term financing from Inter-American Development Bank, and upon completion of solar parks construction, the equity conversion will be effected. Hudson holds the conversion option and the mandatory prepayment option under the notes agreement. If an equity conversion has not occurred or delayed more than one year, the repayment of principal and interest is paid semi-annually according to repayment schedule set out in each note and the date of the request for note purchase is based on the estimated commercial operation date. The outstanding principal balance of each note shall be due and payable in full on the maturity date. The share price for conversion is equal to the equity value of the relevant project company multiplied by the percentage ownership in such project company represented by such project company shares on the date of conversion. On each equity conversion date, the outstanding principal balance of the notes issued in connection with the project company that is the subject of the equity conversion. The Group accounted for the Hudson notes agreement as a financial liability designated as fair value through profit or loss (“FVTPL”) in accordance with IAS39. The fair value on initial recognition is the transaction price. For the year ended December 31, 2016 and 2017, a loss of USD279 thousand and USD791 thousand was recognized respectively. The movement of the balance is as follows: 2016 2017 Thousand USD Thousand USD As at January 1, Additional received from Hudson — Interest addition during the year Fair value effect during the year Less: Interest paid back during the year — ) As at December 31, (d) During the year ended December 31, 2015, SSJ entered into two loan agreements totaling approximately JPY 2,300 million (USD19.1 million) in support of its business development. The loan agreements provide for a floating interest rate equal to 6-month Tokyo Interbank Offered Rate (“TIBOR”) plus 2.2%. To manage the interest rate exposure, SSJ entered into interest swap arrangements for the same period of the loan to swap the floating rate to a fixed interest rate equal to 3.16% and 3.08%. During the years ended December 31, 2016, SSJ entered into one loan agreement totaling approximately JPY 1,570 million (USD13.5 million) in support of its business development. The loan agreement provides for a floating interest rate equal to 6-month TIBOR plus 2%. SSJ had interest swap arrangement for the same period of the loan to swap fixed interest rate equal to 2.68%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swap, which amounted to a loss of USD744 thousand and a gain of USD204 thousand was recognized during the year ended December 31, 2016 and 2017 respectively. The major terms of these contracts are as follows: Notional amount Maturity Swaps JPY 547,200,000 May 23, 2031 From 6-months JPY TIBOR+2.2% to 3.16% JPY 1,752,800,000 May 31, 2032 From 6-months JPY TIBOR+ 2.2% to 3.08% JPY 1,570,000,000 November 30, 2032 From 6-months JPY TIBOR+ 2% to 2.68% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities Japan 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2015 to 2032 During the year ended December 2016, the Group acquired 23 solar parks in the USA, and assumed three bank loans totaling USD5.65 million and interest rate swaps agreements. The loan agreement provides for a floating interest rate equal to USD Federal Reserve statistical release H.15 (“Prime H.15”) for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5.75%, 6.00% and 6.27%, respectively. The 5.75% and 6.27% related interest swap arrangements were terminated in 2017, due to the termination of loan agreements. During the years ended December 31, 2017, the group entered into another loan agreement totaling approximately USD 20.2 million, which provides for a floating interest rate equal to Prime H.15 for the loans, and interest swap arrangements allow the Group to swap the variable rates to fixed interest rates equal to 5%. The terms of the interest rate swap arrangements have been negotiated to match the terms of the respective designated hedged items. As not met the requirements, hedge accounting has not been applied, accordingly, the fair value changes of the interest rate swaps, which amounted to USD181 thousand gain and USD 3 thousand loss was recognized in the other gains and losses for the year ended December 31, 2016 and 2017 respectively . Notional amount Maturity Swaps USD 20,200,000 December 8, 2027 From 3-month-USD Prime H.15 to 5% USD 2,000,000 June 30, 2026 From 3-month-USD Prime H.15 to 6% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities USA 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2014 to 2019 The interest rate swaps settle on a quarter basis. The floating and fixed rate on the interest rate swaps is the local interbank rate of Japan and USA. The Group will settle the difference between the fixed and floating rate on a net basis. (e) The asset retirement obligation liability reflects the present value of estimated cost of decommissioning associated with long-lived assets at a future date. The liabilities incurred, including those from acquisition are USD 2.1 million and USD 12.3 million as at December 31, 2016 and 2017 respectively, and the accretion expenses are USD 355 thousand for the year ended December 31, 2016 and USD 108 thousand for the year ended December 31, 2017. |
Schedule of major terms of the contracts | Notional amount Maturity Swaps JPY 547,200,000 May 23, 2031 From 6-months JPY TIBOR+2.2% to 3.16% JPY 1,752,800,000 May 31, 2032 From 6-months JPY TIBOR+ 2.2% to 3.08% JPY 1,570,000,000 November 30, 2032 From 6-months JPY TIBOR+ 2% to 2.68% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities Japan 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2015 to 2032 Notional amount Maturity Swaps USD 20,200,000 December 8, 2027 From 3-month-USD Prime H.15 to 5% USD 2,000,000 June 30, 2026 From 3-month-USD Prime H.15 to 6% Not designated for hedging Average contracted fixed Notional principal value Fair value liabilities USA 2017/12/31 2016/12/31 2017/12/31 2016/12/31 2017/12/31 2016/12/31 % % Thousand Thousand Thousand Thousand From 2014 to 2019 |
Transaction B | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2016 2017 Thousand USD Thousand USD As at January 1, Fair value effect during the year ) Exchange difference As at December 31, |
Transaction C | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of movement of the balance | 2016 2017 Thousand USD Thousand USD As at January 1, Additional received from Hudson — Interest addition during the year Fair value effect during the year Less: Interest paid back during the year — ) As at December 31, |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL | |
Schedule of common share transactions | Number Share Thousand The Company Ordinary shares of USD0.0001 each Authorized: On August 19, 2013 and December 31, 2013 — Issued: On August 19, 2013 and December 31, 2013 — Issued at IPO On December 31, 2014 and 2015 Issued: On July 15, 2016 On December 31, 2016 and 2017 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
Schedule of fair values recognized in relation to the restricted shares | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Cost of sales — — — Administrative expenses ) ) |
ACQUISITION OF SUBSIDIARIES (Ta
ACQUISITION OF SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACQUISITION OF SUBSIDIARIES | |
Schedule of assets acquired and associated liabilities assumed | Thousand USD Current assets Bank and cash Trade and other receivables Non-current assets IPP solar parks Other long-term assets Current liabilities ) Trade and other payables ) Short-term bank loan ) Non-current liabilities ) Assets Retirement Obiligation ) Long-term bank loan ) Other long-term liabilities ) Non-controlling interest Net assets acquired Consideration and satisfied by: Issuance of ordinary shares Cash paid Net cash outflow on acquisition of a subsidiary is as follows: Cash paid as consideration Less: cash received in acquired companies Net cash outflow arising on acquisition: |
DISPOSAL OF SUBSIDIARIES (Table
DISPOSAL OF SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Solar Tech K.K. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Deferred tax assets Non-current Assets IPP solar parks Long term deposit and others Current Liabilities ) Trade and other payables ) Tax payable ) Non-current Liabilities ) Borrowings ) Net liabilities disposed of ) |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received Net liabilities disposed of Gain on disposal of a subsidiary |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Cash and cash equivalent balances disposed of Cash received as consideration Net cash outflow arising on disposal |
1088526 B.C. Ltd. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Other current asset Non-current Assets IPP solar parks Current Liabilities ) Trade and other payables ) Borrowing ) Non-current Liabilities ) Long-term borrowing ) Swap liability ) Net liabilities disposed of ) |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: Net liabilities disposed of Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary ) Re-evaluate fair value of residual investment Gain on disposal of a subsidiary |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Net cash inflow on disposal of a subsidiary is as follows: Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal |
1091187 B.C. Ltd. | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Non-current Assets IPP solar parks Other Non-current Assets Current Liabilities ) Trade and other payables ) Borrowing ) Non-current Liabilities ) Long-term borrowing ) Net Assets disposed of |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: Net assets disposed of ) Re-evaluate fair value of residual investment Gain on disposal of a subsidiary |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal |
Companies based in Cypriot | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of net assets (liabilities) of subsidiary | Thousand USD Current Assets Cash and cash equivalents Trade and other receivables Non-current Assets IPP solar parks Other Non-current Assets Current Liabilities ) Trade and other payables ) Net Assets disposed of |
Schedule of gain (loss) on disposal of subsidiary | Thousand USD Cash Consideration received in: Net assets disposed of ) Gain/(Loss) on disposal of a subsidiary |
Schedule of net cash inflow (outflow) on disposal of subsidiary | Thousand USD Consideration received in cash and cash equivalent Less: Cash and cash equivalent balances disposed of ) Net cash inflow arising on disposal |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS | |
Schedule of categories of financial instruments | Year ended December 31, 2016 2017 Thousand USD Thousand USD Loans and receivables: Trade and other receivables Amounts due from other related parties Amount due from Sky Solar Holdings Co., Ltd. — Restricted cash Cash and cash equivalents Total loans and receivables Financial liabilities Liabilities at amortized cost: Trade and other payables Amounts due to other related parties — Borrowings Total liabilities at amortized cost Liabilities at FVTPL Other Current liabilities — Other non-current liabilities Total liabilities at FVTPL |
Schedule of currency risk | Year ended December 31, 2016 2016 2016 2017 2017 2017 Thousand Thousand Thousand Thousand Thousand Thousand Denominated Denominated Denominated Denominated Denominated Denominated Cash and cash equivalents Restricted cash Trade and other receivables Amount due from other related parties — — Total financial assets Trade and other payables Borrowings — — Amounts due to other related parties — — — — — Other financial liabilities — — — — Total financial liabilities |
Schedule of sensitivity to currency risk | Year ended December 31, 2016 2017 Thousand USD Thousand USD EURO CAD JPY ) ) |
Schedule of remaining contractual maturity for nonderivative financial liabilities | Weighted <1 year 1 - 2 years 2 - 3 years >3 years Total Total Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD Thousand USD At December 31, 2016 Trade and other payables N/A — — — Amounts due to other related parties N/A — — — Borrowings— variable rate % Borrowings— fixed rate % At December 31, 2017 Trade and other payables N/A — — — Amounts due to other related parties N/A — — — Borrowings— variable rate % Borrowings— fixed rate % |
Schedule of remaining contractual maturity for derivative financial liabilities | Weighted average <1 year 1 - 2 years 2 - 3 years >3 years Total Total Thousand Thousand Thousand Thousand Thousand USD Thousand USD At December 31, 2016 Other non-current liabilities % At December 31, 2017 Other Current liabilities % — — — Other non-current liabilities % |
Schedule of fair value measurements of financial liabilities | Financial liabilities Fair value Fair Valuation technique(s) Significant 1) Other Current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 29) Other non-current liabilities—USD80,107 thousand as of December 31, 2016 and Other current liabilities—USD120,820 thousand as of December 31, 2017, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 7% and 6% per annum for year 2015 and 2016, respectively. Estimated net change in electricity income and direct costs was taken into account based on management’s experience and knowledge of market conditions of the specific industries. 2) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD829 thousand and USD1, 253 thousand as of December 31, 2016 and December 31, 2017, respectively. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 6% per annum. (Note 1) Estimated net change in electricity income and direct costs was taken into account management’s experience and knowledge of market conditions of the specific industries. 3) Other non-current liabilities classified as other financial instruments in the consolidated statement of financial position (Note 30) Other non-current liabilities—USD51,143 thousand and USD55,426 thousand as of December 31, 2016 and December 31, 2017. Level 3 Income approach—in this approach, the discounted cash flow method was used to capture the present value of the expected future economic cash outflows to be derived, based on an appropriate discount rate. Discount rate at 10.8% for year 2016 and 2017 respectively. (Note 2) 4) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities— USD1,225 thousand and USD1,064 thousand as at December 31, 2016 and December 31, 2017. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A 5) Interest rate swaps not designated in hedge accounting relationships (Note 30) Other non-current liabilities—USD139 thousand and USD64 thousand as at December 31, 2016 and December 31, 2017. Level 2 Discounted cash flow. Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties. N/A Note: (1) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD22 thousand and USD32 thousand as at December 31, 2016 and December 31, 2017, respectively. A 5% increase in estimated net change in electricity income and direct cost would increase the carrying amount of the non-current liabilities by USD40 thousand and USD63 thousand as at December 31, 2016 and December 31, 2017, respectively. (2) A 5% increase in the discount rate holding all other variables constant would decrease the carrying amount of other non-current liabilities by approximately USD194 thousand and USD510 thousand as at December 31, 2016 and December 31, 2017, respectively. |
DETAILS OF PRINCIPAL SUBSIDIA81
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |
Schedule of the Company's direct and indirect interests subsidiaries | Proportion of of issued share capital/registered Establishment capital held by Principal Name Region date Currency Share capital 2016.12.31 2017.12.31 activities Sky Solar Bulgaria Co EOOD Bulgaria 02/07/2009 BGN Operating entity, together with its 16 subsidiaries, engaged in the construction and management of solar parks and production and trading of solar equipment Sky Solar (Canada) Ltd. Canada 13/04/2009 CAD Operating entity, together with its seven subsidiaries, engaged in the development, construction and sale of solar parks Moktap Holdings Ltd. Cyprus 09/03/2011 EUR Holding entity Neurlus Ltd. Cyprus 16/12/2011 EUR Holding entity Sky Development Renewable Energy Resources S.A. Greece 02/12/2009 EUR Operating entity engaged in the construction, installation and management of solar parks Sky International Enterprise Group Ltd. Hong Kong 23/11/2007 HKD Holding entity Sky Solar Japan K.K. Japan 16/10/2009 JPY Holding entity Sky Solar Energy S.à.r.l. Luxembourg 28/09/2009 EUR Holding entity Sky Capital Europe S.à.r.l. Luxembourg 18/05/2010 EUR Holding entity Energy Capital Investment S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR Holding entity Energy Capital Investment II S.à.r.l. (Note b) Luxembourg 25/10/2015 EUR Holding entity Sky Solar Iberica S.L. Spain 03/12/2009 EUR Operating entity engaged in the construction of solar parks and provision of EPC services Sky Capital America Inc. (Note b) USA 23/07/2015 USD Operating entity engaged in the development of solar parks Notes: (a) The above table lists the subsidiaries of the Group which, in the opinion of the management, principally affected the results or assets of the Group. To give details of other subsidiaries would, in the opinion of the management result in particular of excessive length. (b) The entity was newly established during the year ended December 31, 2015. |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OPERATING LEASES | |
Schedule of minimum lease payments paid under operating leases | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Minimum lease payments paid under operating leases |
Schedule of future minimum lease payments under non-cancellable operating leases | At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Within one year In the second to fifth years inclusive Over five years |
Schedule of non-cancellable operating lease receivables | At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Within one year In the second to fifth years inclusive Over five years |
CAPITAL COMMITMENT (Tables)
CAPITAL COMMITMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CAPITAL COMMITMENT | |
Schedule of capital commitments | At December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
Schedule of sales to related parties | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Chaorisky Solar and its subsidiaries — — — RisenSky Solar and its subsidiaries China New Era — — — Oky Solar Holdings and its subsidiaries — Sky Global Solar S.A. |
Schedule of remuneration of directors and other members of key management | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Short-term benefits Retirement benefit scheme contributions Share-based payment expense |
Schedule of interest charged by the related parties | Year ended December 31, 2015 2016 2017 Thousand USD Thousand USD Thousand USD Beijing Sky Solar Investment Management Co., Ltd. — — Sky Solar New Energy Investment Limited — — Sky Solar (Hong Kong) International Co., Ltd. — — |
CORPORATION INFORMATION AND B85
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Details) | 12 Months Ended |
Dec. 31, 2017 | |
CORPORATION INFORMATION AND BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | |
Share swap ratio | 1 |
APPLICATION OF NEW AND AMENDM86
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS | |||
Future minimum lease payments under non-cancellable operating lease | $ 64,280 | $ 98,794 | $ 71,798 |
SIGNIFICANT ACCOUNTING POLICI87
SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Leasehold improvement | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 20 years |
Motor vehicles | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
Furniture and fixtures | |
Property, plant and equipment | |
Estimated useful lives of property, plant and equipment (in years) | 5 years |
KEY SOURCES OF ESTIMATES AND 88
KEY SOURCES OF ESTIMATES AND JUDGEMENTS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2017director | Dec. 31, 2017USD ($)director | Dec. 31, 2016USD ($)director | |
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | |||
Trade and other receivables | $ 34,582 | $ 30,097 | |
Trade and other receivables, allowance of doubtful debts | 1,403 | 1,329 | |
Balance due from related parties | 22,345 | 14,358 | |
Amounts due from other related parties, allowance of doubtful debts | 2,200 | 2,200 | |
Amount due from Sky Solar Holdings Co., Ltd. | 0 | 1,430 | |
1088526 B.C. Ltd. | |||
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | |||
IPP solar parks | $ 13,157 | $ 12,993 | |
Proportion of equity interest held | 75.00% | 75.00% | |
Number of directors who can be appointed in associate by contractual right | director | 2 | ||
Total number of directors in the associate | director | 4 | 4 | |
1091187 B.C. Ltd. | |||
KEY SOURCES OF ESTIMATES AND JUDGEMENTS | |||
IPP solar parks | $ 3,305 | ||
Proportion of equity interest held | 75.00% | ||
Number of directors who can be appointed in associate by contractual right | director | 2 | ||
Total number of directors in the associate | director | 4 | 4 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related parties: | |||
Subtotal - related party | $ 286 | $ 788 | $ 4,450 |
Non-related parties | |||
Electricity sales income | 53,614 | 53,658 | 35,479 |
Provision of pipeline plus EPC services | |||
Sales of permits | 434 | ||
Provision of construction services | 285 | 4,954 | 827 |
BT | 4,232 | 4,012 | |
Provision of Pipeline plus EPC services | 285 | 9,186 | 5,273 |
Other sales | |||
O&M services | 2,548 | 2,290 | 1,835 |
Sales of solar modules | 3 | 118 | |
Other sales | 2,548 | 2,293 | 1,953 |
Subtotal - non-related party | 56,447 | 65,137 | 42,705 |
Total revenue | 56,733 | 65,925 | 47,155 |
Related parties | |||
Related parties: | |||
Sales of permits | 525 | 4,119 | |
O&M services | 286 | 263 | 331 |
Other sales | 286 | 263 | 331 |
Subtotal - related party | $ 286 | $ 788 | $ 4,450 |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographical (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Geographical information based on revenue and non-current assets | |||
Number of operating segments | segment | 1 | ||
Revenue | $ 56,733 | $ 65,925 | $ 47,155 |
Non-current assets | 413,574 | 292,372 | |
Bulgaria | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 966 | 871 | 881 |
Non-current assets | 92 | 65 | |
Canada | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 382 | 8,724 | 8,327 |
Non-current assets | 1,956 | 1,037 | |
Chile | |||
Geographical information based on revenue and non-current assets | |||
Non-current assets | 3,164 | 122 | |
Czech | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 3,548 | 3,197 | 3,284 |
Non-current assets | 15,127 | 15,409 | |
Germany | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 27 | 249 | |
Greece | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 1,650 | 8,748 | 8,849 |
Non-current assets | 109 | 17 | |
Japan | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 37,887 | 37,757 | 24,728 |
Non-current assets | 234,398 | 217,432 | |
PRC | |||
Geographical information based on revenue and non-current assets | |||
Non-current assets | 268 | 2,161 | |
Spain | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 421 | 379 | 405 |
Non-current assets | 6,446 | 2,998 | |
USA | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 6,681 | 3,797 | 31 |
Non-current assets | 45,137 | 42,904 | |
Uruguay | |||
Geographical information based on revenue and non-current assets | |||
Revenue | 5,198 | 2,425 | $ 401 |
Non-current assets | $ 106,877 | $ 10,227 |
SEGMENT INFORMATION - Major cus
SEGMENT INFORMATION - Major customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Information about major customers | |||
Revenue | $ 56,733 | $ 65,925 | $ 47,155 |
Over percent of total sales (or above) | 10.00% | 10.00% | 10.00% |
Customer A | |||
Information about major customers | |||
Revenue | $ 13,056 | $ 10,504 | $ 7,420 |
Customer B | |||
Information about major customers | |||
Revenue | 11,684 | 10,861 | 6,951 |
Customer C | |||
Information about major customers | |||
Revenue | $ 9,912 | 8,164 | |
Customer D | |||
Information about major customers | |||
Revenue | $ 7,103 | $ 7,834 |
INVESTMENT INCOME (Details)
INVESTMENT INCOME (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
INVESTMENT INCOME | |||||
Interest income | $ 186 | $ 83 | $ 144 | ||
Interest income from amounts due from related parties | 259 | 242 | 56 | ||
Share of profit of associates | 173 | 149 | |||
Disposal of associates(Note a) | ¥ 837 | $ 7,400 | 7,446 | ||
Total | $ 7,891 | $ 498 | $ 349 | ||
Consideration received for sale of share interest in OKY Solar 1 K.K and OKY Solar Omut K.K | 1,068 | 9,180 | |||
Sky Solar Japan KK ("SSJ") | Orix Holdings | |||||
INVESTMENT INCOME | |||||
Consideration received for sale of share interest in OKY Solar 1 K.K and OKY Solar Omut K.K | ¥ 1,068 | $ 9,180 |
OTHER LOSSES (Details)
OTHER LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER LOSSES | |||
Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) | $ (39,105) | $ (2,957) | $ (5,686) |
Hedge ineffectiveness on cash flow hedges and net loss arising on interest rate swap designated as at FVTPL (Note 30) | 201 | (641) | (585) |
Transaction cost related to FVTPL liabilities (Note a) | (4,041) | ||
Net foreign exchange (losses) gains | 1,814 | 1,145 | 400 |
Others, net | (2,896) | 1,523 | (1,030) |
Total | $ (39,986) | $ (4,971) | $ (6,901) |
FINANCE COSTS (Details)
FINANCE COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FINANCE COSTS | |||
Interest on bank borrowings | $ (3,865) | $ (2,611) | $ (2,780) |
Interest on other borrowings | (8,335) | (3,757) | (1,117) |
Total | $ (12,200) | $ (6,368) | $ (3,897) |
STAFF COSTS, ADMINISTRATIVE E95
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Amortization of intangible assets | $ 44 | $ 71 | $ 102 |
Auditor's remuneration | 1,050 | 1,200 | 1,155 |
Directors' emoluments: | |||
Salaries and other benefits (Note a) | 887 | 392 | 592 |
Retirement benefits scheme contributions | 36 | 27 | 32 |
Share-based compensation | (43) | 46 | 104 |
Total directors' emoluments | 880 | 465 | 728 |
Others staff: | |||
Other staff costs | 7,625 | 8,090 | 7,337 |
Retirement benefits scheme contributions | 591 | 1,046 | 704 |
Share-based compensation | (180) | 951 | 1,285 |
Total other staff costs | 8,036 | 10,087 | 9,326 |
Total staff costs | 8,916 | 10,552 | 10,054 |
Property, plant and equipment | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Depreciation expense | 298 | 271 | 281 |
Solar parks | |||
STAFF COSTS, ADMINISTRATIVE EXPENSES AND COST OF SALES AND SERVICES | |||
Depreciation expense | $ 14,272 | $ 14,208 | $ 9,229 |
INCOME TAX (EXPENSE) CREDIT - C
INCOME TAX (EXPENSE) CREDIT - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME TAX (EXPENSE) CREDIT | |||
Current tax | $ (4,906) | $ (10,976) | $ (2,372) |
Overprovision in prior years | 4,258 | ||
Total current income tax (expense) credit | (4,906) | (10,976) | 1,886 |
Deferred tax | 11,436 | (9,699) | (1,202) |
Total income tax (expense) credit | $ 6,530 | $ (1,277) | $ 684 |
INCOME TAX (EXPENSE) CREDIT - I
INCOME TAX (EXPENSE) CREDIT - Income Tax rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME TAX (EXPENSE) CREDIT | |||
Income tax payable as a result of tax audit | $ 400 | ||
Overprovision in prior years | $ 4,258 | ||
Overprovision for other taxes of prior years | $ 6,000 | ||
Bulgaria | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 10.00% | ||
Germany | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 15.00% | ||
Hong Kong | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 16.50% | ||
Canada | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 26.50% | ||
Japan | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 27.80% | 30.00% | 33.00% |
Greece | |||
INCOME TAX (EXPENSE) CREDIT | |||
Income tax (as a percent) | 29.00% | 29.00% | 26.00% |
INCOME TAX (EXPENSE) CREDIT - R
INCOME TAX (EXPENSE) CREDIT - Reconciliation of tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of taxation with the profit (loss) before taxation per the consolidated statement of profit or loss and other comprehensive income | |||
(Loss) profit before taxation | $ (39,580) | $ 4,559 | $ (2,238) |
Tax at the domestic income tax rate (2015: 26%, 2016: 29%, 2017: 27.8%,) | (11,003) | 1,322 | (581) |
Tax effect of income not taxable for tax purpose | (1,802) | (2,711) | |
Tax effect of expenses not deductible | 1,898 | 716 | 1,466 |
Overprovision in prior years | (715) | (4,258) | |
Tax effect of tax losses not recognized | 3,007 | 5,321 | 969 |
Recognition of deferred tax assets previously not recognized | (3,646) | ||
Utilization of tax losses previously not recognized | (601) | (2,463) | |
Effect of different tax rates of subsidiaries operating in other jurisdictions | 884 | 1,829 | 4,431 |
Income tax expense (benefit) | $ (6,530) | $ 1,277 | $ (684) |
Effective income tax rate | 16.00% | 28.00% | 31.00% |
DIVIDENDS (Details)
DIVIDENDS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
DIVIDENDS | |
Dividends paid or proposed | $ 0 |
(LOSS) EARNINGS PER SHARE (Deta
(LOSS) EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
(LOSS) EARNINGS PER SHARE | |||
(Loss) profit for the purpose of basic and diluted (loss) earnings per share | $ (33,171,000) | $ 3,784,000 | $ (1,397,000) |
Weighted average number of ordinary shares outstanding - basic and diluted | 418,314,541 | 401,602,159 | 387,517,503 |
Basic net (loss) earnings per share | $ (0.1) | $ 0.01 | $ 0 |
Diluted net (loss) earnings per share | $ (0.1) | $ 0.01 | $ 0 |
Number of anti-dilutive shares excluded from the computation of EPS | 1,160,000 | 1,280,000 | 2,230,000 |
Options | |||
(LOSS) EARNINGS PER SHARE | |||
Number of anti-dilutive shares excluded from the computation of EPS | 220,000 | 330,000 | 330,000 |
Non-vested restricted shares | |||
(LOSS) EARNINGS PER SHARE | |||
Number of anti-dilutive shares excluded from the computation of EPS | 940,000 | 950,000 | 1,900,000 |
OTHER OPERATING INCOME (Details
OTHER OPERATING INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OTHER OPERATING INCOME | |||
Gain(Loss) on disposal of IPP solar parks | $ 1,248 | ||
Gain(Loss) on disposal of subsidiaries (Note 21, Note 34) | $ 1,875 | 11,768 | |
Others | 193 | 147 | $ 197 |
Total | $ 2,068 | $ 13,163 | $ 197 |
AMOUNT DUE FROM SKY SOLAR HO102
AMOUNT DUE FROM SKY SOLAR HOLDINGS CO., LTD. (Details) $ in Thousands | 1 Months Ended | ||||
Sep. 30, 2015USD ($)item | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Related party transactions | |||||
Amount due from Sky Solar Holdings Co., Ltd - Current | $ 0 | $ 1,430 | |||
Number of other related parties in agreements | item | 2 | ||||
Number of other third parties in agreements | item | 2 | ||||
Settlement amount payable to third parties | $ 1,200 | ||||
Amounts due to other related parties | $ 28 | $ 7,512 | $ 2,800 | ||
Sky Solar Holdings | |||||
Related party transactions | |||||
Amount due from Sky Solar Holdings Co., Ltd - Current | $ 1,600 | ||||
Mr.Su | |||||
Related party transactions | |||||
Minimum percentage of voting shares held by related party grants us the right of first refusal to purchase shares | 50.00% | ||||
Amount receivable from related party to settle balances | $ 15,000 |
AMOUNTS DUE FROM OTHER RELAT103
AMOUNTS DUE FROM OTHER RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Allowance for doubtful debts, current, trade | $ (1,970) | $ (1,970) |
Amounts due from other related parties - net, current, trade | 1,364 | 2,198 |
Allowance for doubtful debts, current, non-trade | (230) | (230) |
Amounts due from other related parties - net, current, non-trade | 15,349 | 4,035 |
Amounts due from other related parties | 16,713 | 6,233 |
Amounts due from other related parties - net, non-current, trade | 1,247 | 4,304 |
Non-current receivables due from related parties | 5,632 | 8,125 |
China New Era | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, trade | 3,334 | 4,166 |
Amounts due from other related parties - gross, current, non-trade | 359 | 360 |
Sky Global Solar S.A. | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, trade | 2 | |
Sky Solar (Hong Kong) International Co., Ltd. | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 1,339 | |
SWL Flash Bright Limited | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 67 | |
Sky Solar New Energy Investment Ltd. | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 1,480 | |
Tany International (Hong Kong) Co., Ltd. | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 816 | |
Sky Solar (Canada) FIT 1 Limited Partnership | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 203 | |
Mr. Su | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - gross, current, non-trade | 15,220 | |
Oky Solar Holdings, Ltd. . and its subsidiaries | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - net, non-current, trade | 3,283 | |
RisenSky Solar and its subsidiaries | ||
AMOUNTS DUE FROM RELATED PARTY [Abstract] | ||
Amounts due from other related parties - net, non-current, trade | 1,247 | 1,021 |
Amounts due from other related parties - net, non-current, non-trade | $ 4,385 | $ 3,821 |
AMOUNTS DUE FROM OTHER RELAT104
AMOUNTS DUE FROM OTHER RELATED PARTIES - Notes (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Maximum credit period to related parties (in years) | 1 year | |
Sky Solar (Hong Kong) International Co., Ltd. | Mr.Su | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Ownership interest in subsidiary (as a percent) | 100.00% | 100.00% |
Sky Solar (Canada) FIT 1 Limited Partnership ("FIT 1") | Mr.Su | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Ownership interest in subsidiary (as a percent) | 75.00% | |
China New Era | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Proportion of equity interest held | 49.00% | |
Oky Solar Holdings, Ltd. . and its subsidiaries | Sky Solar Japan Co., Ltd. | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Proportion of equity interest held | 30.00% | 30.00% |
Sky Global Solar S.A. | Mr.Su | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Proportion of equity interest held | 40.00% | 40.00% |
RisenSky Solar and its subsidiaries | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Interest on receivables from related parties (as a percent) | 3.00% | 3.00% |
Sky Solar (Hong Kong) International Co., Ltd. | SWL Flash Bright Limited | Mr.Su | ||
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Ownership interest in subsidiary (as a percent) | 100.00% | 100.00% |
AMOUNTS DUE FROM OTHER RELAT105
AMOUNTS DUE FROM OTHER RELATED PARTIES - Movements in allowance for doubtful debts of amounts due from related parties (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
AMOUNTS DUE FROM OTHER RELATED PARTIES | ||
Balance at beginning of year | $ (2,200) | $ (2,200) |
Balance at end of the year | $ (2,200) | $ (2,200) |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012item | Sep. 30, 2012installment | |
Trade and other receivables | |||||||
Trade receivables | $ 10,206 | $ 9,016 | |||||
Value-added tax recoverable | 2,044 | 2,336 | |||||
Prepaid assets and prepayments | 6,755 | 4,913 | |||||
Deposits | 7,186 | 10,855 | |||||
Others | 9,794 | 4,306 | |||||
Less: allowance for doubtful debts | (1,403) | (1,329) | $ (1,366) | ||||
Total trade and other current receivables | 34,582 | 30,097 | |||||
Amount receivable from third party contractors | € 1 | 1,100 | € 1 | 1,100 | |||
Number of third party contractors failed to construct solar parks | item | 2 | ||||||
Number of installments due from third party | installment | 3 | ||||||
Amount due from from other related parties | 22,345 | 14,358 | |||||
Provision for doubtful receivables of contractors | $ 1,100 | ||||||
Customers credit period | 1 year | ||||||
Uruguay | |||||||
Trade and other receivables | |||||||
Deposits | 3,700 | ||||||
Others | 2,000 | ||||||
USA and Uruguay | |||||||
Trade and other receivables | |||||||
Deposits | 2,500 | $ 7,000 | |||||
Canada | |||||||
Trade and other receivables | |||||||
Deposits | 1,400 | ||||||
Japan | |||||||
Trade and other receivables | |||||||
Deposits | $ 1,800 |
TRADE AND OTHER RECEIVABLES - M
TRADE AND OTHER RECEIVABLES - Movements in the allowance for doubtful debts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
TRADE AND OTHER RECEIVABLES | ||
Balance at beginning of year | $ 1,329 | $ 1,366 |
Exchange difference | 74 | (37) |
Balance at end of the year | 1,403 | 1,329 |
Amount of trade receivables past due but not impaired | $ 1,100 | $ 938 |
INVENTORIES (Details)
INVENTORIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2016MW | Dec. 31, 2017USD ($)MW | Dec. 31, 2016USD ($) | |
INVENTORIES | |||
Solar modules | $ 166 | $ 479 | |
Permits and related costs capitalized during the course of obtaining permits | 141 | 3,623 | |
Solar parks completed or under development those are held for sale | 34,932 | ||
Inventories | $ 307 | $ 39,034 | |
Development stage permits obtained for solar project in California and Vermont (in MW) | MW | 22.5 | ||
Solar project permits under development (in MW) | MW | 11.8 |
ASSETS CLASSIFIED AS HELD FO109
ASSETS CLASSIFIED AS HELD FOR SALE (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)itemMW |
ASSETS CLASSIFIED AS HELD FOR SALE | ||
Cash and cash equivalents | $ 46,084 | $ 12,518 |
Trade and other receivables | 34,582 | 30,097 |
Total assets | 581,108 | 476,246 |
Liabilities associated with assets held for sale | $ 474,880 | 342,324 |
Assets and liabilities classified as held for sale | ||
ASSETS CLASSIFIED AS HELD FOR SALE | ||
IPP solar parks held for sale | 34,684 | |
Cash and cash equivalents | 3,917 | |
Trade and other receivables | 6,968 | |
Other assets | 1,437 | |
Total assets | 47,006 | |
Liabilities associated with assets held for sale | $ 3,380 | |
Assets and liabilities classified as held for sale | Greece | ||
ASSETS CLASSIFIED AS HELD FOR SALE | ||
Operating solar parks approved to be disposed off, Number | item | 20 | |
Operating solar parks approved to be disposed off, Capacity (in MW) | MW | 23 | |
Assets and liabilities classified as held for sale | Canada | ||
ASSETS CLASSIFIED AS HELD FOR SALE | ||
Operating solar parks approved to be disposed off, Number | item | 6 |
PROPERTY, PLANT AND EQUIPMEN110
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Carrying value - Property other than solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | $ 823 | $ 799 | |
Property, plant and equipment at end of period | 916 | 823 | $ 799 |
Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | 89 | 67 | |
Property, plant and equipment at end of period | $ 87 | 89 | 67 |
Estimated useful lives of property, plant and equipment (in years) | 20 years | ||
Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | $ 314 | 251 | |
Property, plant and equipment at end of period | $ 352 | 314 | 251 |
Estimated useful lives of property, plant and equipment (in years) | 5 years | ||
Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | $ 420 | 481 | |
Property, plant and equipment at end of period | $ 477 | 420 | 481 |
Estimated useful lives of property, plant and equipment (in years) | 5 years | ||
COST | Carrying value - Property other than solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | $ 2,180 | 1,998 | 2,230 |
Additions | 375 | 349 | 207 |
Disposals | (297) | (128) | (284) |
Exchange adjustment | 119 | (39) | (155) |
Property, plant and equipment at end of period | 2,377 | 2,180 | 1,998 |
COST | Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | 185 | 138 | 107 |
Additions | 42 | 32 | |
Disposals | (65) | ||
Exchange adjustment | 8 | 5 | (1) |
Property, plant and equipment at end of period | 128 | 185 | 138 |
COST | Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | 786 | 622 | 820 |
Additions | 198 | 205 | 11 |
Disposals | (174) | (24) | (196) |
Exchange adjustment | 32 | (17) | (13) |
Property, plant and equipment at end of period | 842 | 786 | 622 |
COST | Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | 1,209 | 1,238 | 1,303 |
Additions | 177 | 102 | 164 |
Disposals | (58) | (104) | (88) |
Exchange adjustment | 79 | (27) | (141) |
Property, plant and equipment at end of period | 1,407 | 1,209 | 1,238 |
DEPRECIATION | Carrying value - Property other than solar parks | |||
Total | |||
Property, plant and equipment at beginning of period | 1,357 | 1,199 | 1,219 |
Provided for the year | 298 | 271 | 281 |
Disposals | (284) | (113) | (163) |
Exchange adjustment | 90 | (138) | |
Property, plant and equipment at end of period | 1,461 | 1,357 | 1,199 |
DEPRECIATION | Leasehold improvement | |||
Total | |||
Property, plant and equipment at beginning of period | 96 | 71 | 44 |
Provided for the year | 17 | 15 | 32 |
Disposals | (66) | ||
Exchange adjustment | (6) | 10 | (5) |
Property, plant and equipment at end of period | 41 | 96 | 71 |
DEPRECIATION | Motor vehicles | |||
Total | |||
Property, plant and equipment at beginning of period | 472 | 371 | 403 |
Provided for the year | 148 | 127 | 106 |
Disposals | (173) | (21) | (139) |
Exchange adjustment | 43 | (5) | 1 |
Property, plant and equipment at end of period | 490 | 472 | 371 |
DEPRECIATION | Furniture and fixtures | |||
Total | |||
Property, plant and equipment at beginning of period | 789 | 757 | 772 |
Provided for the year | 133 | 129 | 143 |
Disposals | (45) | (92) | (24) |
Exchange adjustment | 53 | (5) | (134) |
Property, plant and equipment at end of period | $ 930 | $ 789 | $ 757 |
IPP SOLAR PARKS, INVESTMENT 111
IPP SOLAR PARKS, INVESTMENT PROPERTY (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017JPY (¥) | Feb. 28, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Total | |||||
Loss on disposal of subsidiaries | $ (41,056) | $ (4,118) | $ 4,831 | ||
Tokyo Solar Electricity KK | |||||
Total | |||||
Cash consideration received | ¥ 9.3 | $ 83 | |||
Loss on disposal of subsidiaries | $ (5) | ||||
IPP Solar Parks | |||||
Total | |||||
Property, plant and equipment at beginning of period | 271,253 | 259,423 | |||
Property, plant and equipment at end of period | $ 397,405 | $ 271,253 | $ 259,423 | ||
IPP Solar Parks | Minimum | |||||
Total | |||||
Estimated useful lives | 20 years | 20 years | 20 years | ||
IPP Solar Parks | Maximum | |||||
Total | |||||
Estimated useful lives | 30 years | 30 years | 30 years | ||
IPP Solar Parks | COST | |||||
Total | |||||
Property, plant and equipment at beginning of period | $ 298,437 | $ 300,027 | $ 213,358 | ||
Additions | 146,799 | 45,470 | 104,727 | ||
Acquisition of subsidiaries (Note 33) | 34,158 | ||||
Transfer to investment property | (104) | ||||
Reclassified as held for sale (Note 19) | (60,667) | ||||
Disposal of subsidiaries (Note 34) | (1,503) | (18,407) | |||
Disposals | (1,979) | (3,671) | |||
Exchange adjustment | 4,066 | 1,631 | (18,058) | ||
Property, plant and equipment at end of period | 445,820 | 298,437 | 300,027 | ||
IPP Solar Parks | DEPRECIATION AND IMPAIRMENT | |||||
Total | |||||
Property, plant and equipment at beginning of period | 27,184 | 40,604 | 32,748 | ||
Provided for the year | 14,272 | 14,208 | 9,229 | ||
Reclassified as held for sale (Note 19) | (25,983) | ||||
Impairment provided for the year | 5,221 | 2,151 | 1,835 | ||
Disposal of subsidiaries (Note 34) | (19) | (1,560) | |||
Disposals | (80) | ||||
Exchange adjustment | 1,757 | (2,156) | (3,208) | ||
Property, plant and equipment at end of period | 48,415 | 27,184 | 40,604 | ||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | |||||
Total | |||||
Property, plant and equipment at beginning of period | 32,566 | 35,383 | |||
Property, plant and equipment at end of period | 43,244 | 32,566 | 35,383 | ||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | COST | |||||
Total | |||||
Property, plant and equipment at beginning of period | 36,476 | 37,359 | 61,877 | ||
Additions | 36,589 | 42,895 | 104,727 | ||
Transfer to investment property | (104) | ||||
Disposal of subsidiaries (Note 34) | (669) | ||||
Disposals | (1,979) | ||||
Transfer | (17,150) | (42,330) | (126,494) | ||
Exchange adjustment | (636) | (1,344) | (2,751) | ||
Property, plant and equipment at end of period | 52,631 | 36,476 | 37,359 | ||
Permits (including related costs capitalized in the course of obtaining permits) and solar parks under development | DEPRECIATION AND IMPAIRMENT | |||||
Total | |||||
Property, plant and equipment at beginning of period | 3,910 | 1,976 | 270 | ||
Impairment provided for the year | 5,120 | 2,151 | 1,706 | ||
Exchange adjustment | 357 | (217) | |||
Property, plant and equipment at end of period | 9,387 | 3,910 | 1,976 | ||
Completed solar parks | |||||
Total | |||||
Property, plant and equipment at beginning of period | 238,687 | 224,040 | |||
Property, plant and equipment at end of period | 354,161 | 238,687 | 224,040 | ||
Completed solar parks | COST | |||||
Total | |||||
Property, plant and equipment at beginning of period | 261,961 | 262,668 | 151,481 | ||
Additions | 110,210 | 2,575 | |||
Acquisition of subsidiaries (Note 33) | 34,158 | ||||
Reclassified as held for sale (Note 19) | (60,667) | ||||
Disposal of subsidiaries (Note 34) | (834) | (18,407) | |||
Disposals | (3,671) | ||||
Transfer | 17,150 | 42,330 | 126,494 | ||
Exchange adjustment | 4,702 | 2,975 | (15,307) | ||
Property, plant and equipment at end of period | 393,189 | 261,961 | 262,668 | ||
Completed solar parks | DEPRECIATION AND IMPAIRMENT | |||||
Total | |||||
Property, plant and equipment at beginning of period | 23,274 | 38,628 | 32,478 | ||
Provided for the year | 14,272 | 14,208 | 9,229 | ||
Reclassified as held for sale (Note 19) | (25,983) | ||||
Impairment provided for the year | 101 | 129 | |||
Disposal of subsidiaries (Note 34) | (19) | (1,560) | |||
Disposals | (80) | ||||
Exchange adjustment | 1,400 | (1,939) | (3,208) | ||
Property, plant and equipment at end of period | $ 39,028 | $ 23,274 | $ 38,628 |
IPP SOLAR PARKS, INVESTMENT 112
IPP SOLAR PARKS, INVESTMENT PROPERTY - Secured borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Borrowings | $ 249,729 | $ 159,161 | |
Secured | |||
Borrowings | 244,030 | 150,585 | |
IPP Solar Parks | Secured | |||
Carrying amounts of solar parks pledged to secure borrowings | 277,400 | 215,600 | $ 100,200 |
Borrowings | $ 244,000 | $ 150,600 | $ 97,100 |
IPP SOLAR PARKS, INVESTMENT 113
IPP SOLAR PARKS, INVESTMENT PROPERTY - Investment Property (Details) - Land - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, plant and equipment | |||
Carrying amount | $ 11.3 | $ 11.3 | $ 9.5 |
Transfer to investment property | $ 0 | $ 104 | $ 0 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - Software - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | $ 122 | $ 147 | |
Balance at end of the year | $ 126 | 122 | $ 147 |
Intangible assets amortization period (in years) | 5 years | ||
COST | |||
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | $ 252 | 239 | 558 |
Additions | 42 | 40 | 241 |
Disposals | (1) | (32) | (498) |
Exchange adjustments | (12) | 5 | (62) |
Balance at end of the year | 281 | 252 | 239 |
DEPRECIATION | |||
Changes in finite lived Intangible assets other than goodwill | |||
Balance at beginning of the year | 130 | 92 | 338 |
Charge for the year | 44 | 71 | 102 |
Disposals | (1) | (31) | (312) |
Exchange adjustments | (18) | (2) | (36) |
Balance at end of the year | $ 155 | $ 130 | $ 92 |
INTERESTS IN ASSOCIATES - Recon
INTERESTS IN ASSOCIATES - Reconciliation of changes in interest in associates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in interest in associates | ||
Balance at the beginning of the period | $ 4,092 | $ 3,806 |
Investment in new affiliates | 612 | 2,188 |
Return of investment in associates (Note d) | (1,554) | |
Add: Share of profit of associates | 173 | |
Less: Unrealized gain from sales to associates | (242) | |
Less: Dividends received from the associates | (427) | (415) |
Less: Disposal of associates | (2,038) | |
Exchange difference | 327 | 136 |
Balance at the end of the period | $ 2,566 | $ 4,092 |
INTERESTS IN ASSOCIATES - Detai
INTERESTS IN ASSOCIATES - Detailed Information (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017JPY (¥) | Mar. 31, 2017USD ($) | Jan. 31, 2017director | Dec. 31, 2017USD ($)director | Dec. 31, 2016JPY (¥)facilitydirector | Dec. 31, 2016USD ($)facilitydirector | Dec. 31, 2015JPY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014JPY (¥) | Dec. 31, 2014USD ($) | |
Disclosure of interests in associates | ||||||||||
Share capital subscribed | $ | $ 612 | $ 2,188 | ||||||||
Investment return | $ | $ 1,554 | |||||||||
Consideration received for sale of share interest in OKY Solar 1 K.K and OKY Solar Omut K.K | ¥ 1,068 | $ 9,180 | ||||||||
Gain (loss) on disposal of interest in associates | 837 | 7,400 | $ 7,446 | |||||||
RisenSky Solar | ||||||||||
Disclosure of interests in associates | ||||||||||
Proportion of nominal value of issued capital held | 30.00% | 30.00% | 30.00% | |||||||
Proportion of voting power held | 30.00% | 30.00% | 30.00% | |||||||
1088526 B.C. Ltd. | ||||||||||
Disclosure of interests in associates | ||||||||||
Proportion of nominal value of issued capital held | 75.00% | 75.00% | 75.00% | |||||||
Proportion of voting power held | 50.00% | 50.00% | 50.00% | |||||||
Number of commercial and industrial solar facilities owned in Canada | facility | 15 | 15 | ||||||||
Number of directors of the group in the associate | 2 | 2 | ||||||||
Total number of directors in the associate | 4 | 4 | 4 | |||||||
1091187 B.C. Ltd. | ||||||||||
Disclosure of interests in associates | ||||||||||
Proportion of nominal value of issued capital held | 75.00% | |||||||||
Proportion of voting power held | 50.00% | |||||||||
Number of directors of the group in the associate | 2 | |||||||||
Total number of directors in the associate | 4 | 4 | ||||||||
Oky Solar Holdings | ||||||||||
Disclosure of interests in associates | ||||||||||
Proportion of nominal value of issued capital held | 30.00% | 30.00% | ||||||||
Proportion of voting power held | 30.00% | 30.00% | ||||||||
Investment return | ¥ 169 | $ 1,550 | ||||||||
Oky Solar Holdings | Orix KK | ||||||||||
Disclosure of interests in associates | ||||||||||
Share capital subscribed (as a percent) | 70.00% | 70.00% | ||||||||
Energy Capital Investment II sarl ("ECI") | 1088526 B.C. Ltd. | ||||||||||
Disclosure of interests in associates | ||||||||||
Percentage of preferred shares of the associate, agreed to be sold, under the share purchase agreement with Jade | 25.00% | 25.00% | ||||||||
Sky Solar Japan KK ("SSJ") | Orix Holdings | ||||||||||
Disclosure of interests in associates | ||||||||||
Consideration received for sale of share interest in OKY Solar 1 K.K and OKY Solar Omut K.K | ¥ 1,068 | $ 9,180 | ||||||||
Sky Solar Japan KK ("SSJ") | 1091187 B.C. Ltd. | ||||||||||
Disclosure of interests in associates | ||||||||||
Percentage of preferred shares of the associate, agreed to be sold, under the share purchase agreement with Jade | 25.00% | |||||||||
Sky Solar Japan KK ("SSJ") | Oky Solar Holdings | ||||||||||
Disclosure of interests in associates | ||||||||||
Share capital subscribed (as a percent) | 30.00% | 30.00% | ||||||||
Share capital subscribed | ¥ 43.5 | $ 426 | ||||||||
Additional investments in associates | ¥ 685.7 | $ 5,700 |
INTERESTS IN ASSOCIATES - Summa
INTERESTS IN ASSOCIATES - Summarized financial information in respect of the Group's associates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current assets: | |||
Other non-current assets | $ 11,045 | $ 14,514 | |
Non-current Assets | 442,706 | 310,078 | |
Current assets | 138,402 | 166,168 | |
Current liabilities: | |||
Other current liabilities | 120,820 | ||
Amounts due to other related parties | 28 | 7,512 | $ 2,800 |
Total current liabilities | 171,933 | 69,112 | |
Non-current liabilities: | |||
Borrowings | 230,027 | 131,881 | |
Others | 70,136 | 141,001 | |
Total non-current liabilities | 302,947 | 273,212 | |
Net assets (liabilities) | 106,228 | 133,922 | |
Revenue | 56,733 | 65,925 | 47,155 |
Profit for the year | (33,050) | 3,282 | (1,554) |
Group's share of profit of associates of the year | 173 | $ 149 | |
Group's share of other comprehensive income of associates | 136 | ||
Aggregate | |||
Non-current assets: | |||
IPP solar parks | 39,054 | 60,491 | |
Other non-current assets | 13,514 | 11,646 | |
Non-current Assets | 52,568 | 72,137 | |
Current assets | 8,190 | 12,392 | |
Current liabilities: | |||
Other current liabilities | 4,205 | 5,929 | |
Amounts due to other related parties | 967 | 880 | |
Total current liabilities | 5,172 | 6,809 | |
Non-current liabilities: | |||
Borrowings | 40,464 | 49,508 | |
Others | 999 | 16,449 | |
Total non-current liabilities | 41,463 | 65,957 | |
Net assets (liabilities) | 14,123 | 11,763 | |
Revenue | 7,817 | 5,810 | |
Profit for the year | 970 | 1,292 | |
Group's share of profit of associates of the year | 173 | ||
Group's share of profit of associates of the year not recognized | 302 | 223 | |
RisenSky Solar | |||
Non-current assets: | |||
IPP solar parks | 22,592 | 20,829 | |
Other non-current assets | 472 | 442 | |
Non-current Assets | 23,064 | 21,271 | |
Current assets | 5,342 | 3,462 | |
Current liabilities: | |||
Other current liabilities | 2,739 | 1,325 | |
Amounts due to other related parties | 967 | 880 | |
Total current liabilities | 3,706 | 2,205 | |
Non-current liabilities: | |||
Borrowings | 24,034 | 22,940 | |
Total non-current liabilities | 24,034 | 22,940 | |
Net assets (liabilities) | 666 | (412) | |
Revenue | 3,840 | 3,701 | |
Profit for the year | 1,076 | 744 | |
Group's share of profit of associates of the year not recognized | 323 | 223 | |
Oky Solar Holdings | |||
Non-current assets: | |||
IPP solar parks | 26,669 | ||
Other non-current assets | 884 | ||
Non-current Assets | 27,553 | ||
Current assets | 5,167 | ||
Current liabilities: | |||
Other current liabilities | 3,461 | ||
Total current liabilities | 3,461 | ||
Non-current liabilities: | |||
Borrowings | 10,702 | ||
Others | 16,449 | ||
Total non-current liabilities | 27,151 | ||
Net assets (liabilities) | 2,108 | ||
Revenue | 1,662 | ||
Profit for the year | 577 | ||
Group's share of profit of associates of the year | 173 | ||
1088526 B.C. Ltd. | |||
Non-current assets: | |||
IPP solar parks | 13,157 | 12,993 | |
Other non-current assets | 11,359 | 10,320 | |
Non-current Assets | 24,516 | 23,313 | |
Current assets | 2,689 | 3,763 | |
Current liabilities: | |||
Other current liabilities | 1,312 | 1,143 | |
Total current liabilities | 1,312 | 1,143 | |
Non-current liabilities: | |||
Borrowings | 15,109 | 15,866 | |
Others | 941 | ||
Total non-current liabilities | 16,050 | 15,866 | |
Net assets (liabilities) | 9,843 | 10,067 | |
Revenue | 3,268 | 447 | |
Profit for the year | (240) | $ (29) | |
Group's share of profit of associates of the year not recognized | (43) | ||
1091187 B.C. Ltd. | |||
Non-current assets: | |||
IPP solar parks | 3,305 | ||
Other non-current assets | 1,683 | ||
Non-current Assets | 4,988 | ||
Current assets | 159 | ||
Current liabilities: | |||
Other current liabilities | 154 | ||
Total current liabilities | 154 | ||
Non-current liabilities: | |||
Borrowings | 1,321 | ||
Others | 58 | ||
Total non-current liabilities | 1,379 | ||
Net assets (liabilities) | 3,614 | ||
Revenue | 709 | ||
Profit for the year | 134 | ||
Group's share of profit of associates of the year not recognized | $ 22 |
DEFERRED TAX ASSETS (Details)
DEFERRED TAX ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | $ 9,251 | $ 1,365 | |
Credit (charge) to profit or loss | (11,436) | 9,699 | $ 1,202 |
Reclassified to held-for-sale | (1,296) | ||
Exchange differences | 29 | (517) | |
Balance at the end of the period | 20,716 | 9,251 | 1,365 |
Deferred tax assets | 23,500 | 9,581 | |
Deferred tax liabilities | 2,784 | 330 | |
Unused tax losses carried forward indefinitely | 162,600 | 152,200 | 135,800 |
Tax losses | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 864 | 364 | |
Credit (charge) to profit or loss | (286) | 1,896 | |
Reclassified to held-for-sale | (1,296) | ||
Exchange differences | 1 | (100) | |
Balance at the end of the period | 1,151 | 864 | 364 |
Deferred tax assets | 1,151 | 864 | |
Fair value change of financial instruments | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 917 | 202 | |
Credit (charge) to profit or loss | (11,325) | 755 | |
Exchange differences | 41 | (40) | |
Balance at the end of the period | 12,283 | 917 | 202 |
Deferred tax assets | 12,283 | 917 | |
Unrealized gain on inter-group sales | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | 10,456 | 6,273 | |
Credit (charge) to profit or loss | 1,843 | 4,420 | |
Exchange differences | (7) | (237) | |
Balance at the end of the period | 8,606 | 10,456 | 6,273 |
Deferred tax assets | 8,606 | 10,456 | |
Depreciation of solar parks | |||
Principal components of the deferred income tax assets and liabilities | |||
Balance at the beginning of the period | (2,986) | (5,474) | |
Credit (charge) to profit or loss | (1,668) | 2,628 | |
Exchange differences | (6) | (140) | |
Balance at the end of the period | (1,324) | (2,986) | $ (5,474) |
Deferred tax assets | 1,460 | (2,656) | |
Deferred tax liabilities | $ 2,784 | $ 330 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item | |
OTHER NON-CURRENT ASSETS | ||
Long term deposits relate to IPP solar parks | $ 1,660 | $ 4,947 |
Long-term loan to a third party | 7,974 | 9,208 |
Others | 1,411 | 359 |
Total | $ 11,045 | $ 14,514 |
Number of solar parks acquired | item | 23 | |
Annual interest rate (as a percent) | 1.00% | |
Uruguay | ||
OTHER NON-CURRENT ASSETS | ||
Long term deposits relate to IPP solar parks | $ 0 | $ 3,300 |
Japan | ||
OTHER NON-CURRENT ASSETS | ||
Long term deposits relate to IPP solar parks | $ 1,700 | $ 1,600 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade and other payables | |||
Trade payables | $ 22,613 | $ 14,303 | |
Other payables | 4,031 | 4,365 | |
Warranty provision to customers for supply of modules | 24 | 332 | $ 783 |
Other accrued expenses | 711 | 1,933 | |
Other tax payable | 1,410 | 2,404 | |
Advances from customers | 254 | 700 | |
Total trade and other current payables | $ 29,043 | $ 24,037 | |
Minimum credit period on purchases of goods | 3 months | ||
Uruguay | |||
Trade and other payables | |||
Trade payables | $ 8,300 |
TRADE AND OTHER PAYABLES - Warr
TRADE AND OTHER PAYABLES - Warranty provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Warranty Provisions | ||
Balance at beginning of year | $ 332 | $ 783 |
Reversal for the year | (308) | (451) |
Balance at end of year | 24 | $ 332 |
Warranties to customers of solar projects | $ 0 |
AMOUNTS DUE TO OTHER RELATED122
AMOUNTS DUE TO OTHER RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, non-trade | $ 28 | $ 7,336 | |
Amounts due to other related parties | 28 | 7,512 | $ 2,800 |
China New Era | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, trade | 176 | ||
Sky Solar (Hong Kong) International Co., Ltd. | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, non-trade | 2,181 | ||
Sky Solar New Energy Investment Ltd. | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, non-trade | 2,825 | ||
Mr. Su | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, non-trade | 2,221 | ||
Beijing Sky Solar Investment Management Co., Ltd. | |||
AMOUNTS DUE TO OTHER RELATED PARTIES | |||
Amounts due to other related parties - net, current, non-trade | $ 28 | $ 109 |
AMOUNTS DUE TO OTHER RELATED123
AMOUNTS DUE TO OTHER RELATED PARTIES - Notes (Details) - USD ($) $ in Thousands | Oct. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related party transactions | ||||
Credit period on purchase of goods for related parties (in days) | 365 days | |||
Minimum | ||||
Related party transactions | ||||
Credit period on purchase of goods for related parties (in days) | 90 days | |||
Sky Solar (Hong Kong) International Co., Ltd. | ||||
Related party transactions | ||||
Amount due to | $ 3,000 | |||
Interest rate (as a percent) | 12.00% | |||
Amounts due from other related parties - gross, current, non-trade | $ 1,339 | |||
Mr. Su | ||||
Related party transactions | ||||
Agreed payment to related party for assuming liabilities | $ 2,400 | |||
Assuming liabilities under purchase arrangement with related party | 2,300 | |||
Miscellaneous expenses under purchase arrangement with related party | $ 100 | |||
Amounts due from other related parties - gross, current, non-trade | $ 15,220 | |||
Mr.Su | Sky Solar (Hong Kong) International Co., Ltd. | ||||
Related party transactions | ||||
Ownership interest in subsidiary (as a percent) | 100.00% | 100.00% | ||
Mr.Su | Sky Solar Investment Limited | ||||
Related party transactions | ||||
Percentage of interest agreed to transfer | 100.00% |
BORROWINGS - Schedule of borrow
BORROWINGS - Schedule of borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
BORROWINGS | ||
Borrowings | $ 249,729 | $ 159,161 |
Bank borrowings | ||
BORROWINGS | ||
Borrowings | 151,648 | 71,022 |
Other borrowings | ||
BORROWINGS | ||
Borrowings | 98,081 | 88,139 |
Secured | ||
BORROWINGS | ||
Borrowings | 244,030 | 150,585 |
Unsecured | ||
BORROWINGS | ||
Borrowings | 5,699 | 8,576 |
Variable-rate borrowings | ||
BORROWINGS | ||
Borrowings | 95,216 | 11,162 |
Fixed-rate borrowings | ||
BORROWINGS | ||
Borrowings | $ 154,513 | $ 147,999 |
BORROWINGS - Carrying amount re
BORROWINGS - Carrying amount repayable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
BORROWINGS | ||
Carrying amount repayable | $ 249,729 | $ 159,161 |
Less: amounts repayable within one year shown under current liabilities | 19,702 | 27,280 |
Amounts shown under non-current liabilities | 230,027 | 131,881 |
Within one year | ||
BORROWINGS | ||
Carrying amount repayable | 19,702 | 27,280 |
More than one year but not exceeding two years | ||
BORROWINGS | ||
Carrying amount repayable | 17,593 | 11,942 |
More than two years but not exceeding five years | ||
BORROWINGS | ||
Carrying amount repayable | 46,881 | 29,752 |
More than five years | ||
BORROWINGS | ||
Carrying amount repayable | $ 165,553 | $ 90,187 |
BORROWINGS - Loans & Cash flow
BORROWINGS - Loans & Cash flow hedges (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014CAD ($)subsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2015CAD ($)subsidiary | Dec. 31, 2015USD ($)subsidiary | Dec. 31, 2014USD ($)subsidiary | ||
BORROWINGS | ||||||||
Effective portion of changes in the fair value of cash flow hedges | $ (446) | |||||||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary | [1] | (1,126) | ||||||
Cash flow hedge | ||||||||
BORROWINGS | ||||||||
Total principal | $ 16,300 | |||||||
Effective portion of changes in the fair value of cash flow hedges | (446) | $ (680) | ||||||
Release of cumulative fair value loss from cash flow hedges upon disposal of subsidiary | $ 1,126 | |||||||
15-year loan | ||||||||
BORROWINGS | ||||||||
Number of subsidiaries that entered into 15-year loan | subsidiary | 1 | 1 | 1 | 1 | ||||
Loan term | 15 years | 15 years | ||||||
Total principal | $ 23.2 | $ 23.2 | $ 16,800 | $ 16,800 | ||||
CDOR | 3-month | 3-month | ||||||
Fixed interest rate, option 1 | 5.75% | 5.75% | 5.75% | 5.75% | ||||
Fixed interest rate, option 2 | 5.50% | 5.50% | 5.50% | 5.50% | ||||
Fixed interest rate, option 3 | 4.50% | 4.50% | 4.50% | 4.50% | ||||
Minimum | 15-year loan | ||||||||
BORROWINGS | ||||||||
Interest rate added to CDOR | 2.74% | 2.74% | 2.74% | 2.74% | ||||
Maximum | 15-year loan | ||||||||
BORROWINGS | ||||||||
Interest rate added to CDOR | 3.43% | 3.43% | 3.43% | 3.43% | ||||
[1] | On June 23, 2015, the Company received a refund amounting to US$125 thousand from NASDAQ for the change of listing tiers from Global Select Market to Global Market. |
BORROWINGS - Effective interest
BORROWINGS - Effective interest rates (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed rate | ||
BORROWINGS | ||
Effective interest rate | 3.52% | 4.13% |
Variable rate | ||
BORROWINGS | ||
Effective interest rate | 4.82% | 3.63% |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) $ in Thousands, ¥ in Millions | Apr. 27, 2018MW | Oct. 10, 2014JPY (¥)itemMW | Oct. 10, 2014USD ($)item | Aug. 31, 2015JPY (¥)itemMW | Aug. 31, 2015USD ($)itemMW | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 10, 2014USD ($)MW |
Financial liabilities designated as fair value through profit or loss | ||||||||||
Balance at January 1, | $ 133,553 | |||||||||
Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) | (39,105) | $ (2,957) | $ (5,686) | |||||||
Balance at December 31, | 178,705 | 133,553 | ||||||||
Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Minimum cumulative annual internal rate of return required on the capital for distribution of profits | 15.00% | 15.00% | ||||||||
Silent Partners | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Balance at January 1, | 80,107 | |||||||||
Balance at December 31, | 80,107 | |||||||||
Loss from change in fair value of financial liabilities and extinguishment of agreement | 2,764 | |||||||||
Silent Partners | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Profit sharing percentage to other partners | 49.00% | 49.00% | ||||||||
Estimated distributable profits to the other partners | $ 7,400 | |||||||||
TK Partner | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Minimum cumulative annual internal rate of return required on the capital for distribution of profits | 15.00% | |||||||||
Time limit to secure the third party offer | 90 days | |||||||||
SSJ | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Number of groups of third party investors in the Silent Partnership Agreement | item | 2 | 2 | ||||||||
Number of Solar Parks agreed for development and operate | item | 21 | 21 | ||||||||
Threshold capacity limit of solar parks under agreement | MW | 10.79 | 34.6 | 34.6 | |||||||
Cash contribution for the project | ¥ | ¥ 750 | |||||||||
Carrying Value of the Solar Power projects contributed | ¥ | 2,300 | |||||||||
Fair value of the Solar Power projects contributed | ¥ | ¥ 4,600 | |||||||||
Profit sharing percentage for the subsidiary. | 51.00% | 51.00% | ||||||||
Percentage of threshold capacity limit of solar parks under agreement | 10.00% | |||||||||
SSJ | Amended Agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Remaining proceeds used for executing its project pipeline | ¥ | ¥ 2,000 | |||||||||
SSJ | Amended Agreements | Sky International Enterprise Group Ltd. | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Intercompany loan | ¥ | ¥ 2,000 | |||||||||
Interest rate on loans granted | 5.00% | 5.00% | ||||||||
Term of the loans granted | 12 months | 12 months | ||||||||
SSJ | Silent Partners | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Cash contribution from the other Silent Partners | ¥ | ¥ 5,000 | |||||||||
SSJ | Silent Partners | Amended Agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Number of Solar Parks agreed for development and operate | item | 67 | 67 | ||||||||
Threshold capacity limit of solar parks under agreement | MW | 107.9 | 107.9 | ||||||||
Total capital contribution | ¥ | ¥ 9,000 | |||||||||
Number of additional solar parks contributed | item | 46 | 46 | ||||||||
SSJ | TK Partner | Amended Agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Consideration paid to the partner in order to amend the agreement | ¥ 698 | $ 5,800 | ||||||||
Term of the amendment agreements | 3 years | 3 years | ||||||||
Additional investment contributed by the TK partner | ¥ 4,000 | $ 33,200 | ||||||||
SWL Flash Bright Limited | Silent Partners | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Maximum amount of ordinary shares of the company available for purchase for the investor | $ 30,000 | |||||||||
Option exercise period | 2 years | 2 years | ||||||||
Extension tine period for purchase of shares | 1 year | 1 year | ||||||||
Time period to approve or deny the offer | 180 days | 180 days | ||||||||
Target percent of the per share initial public offering price to exercise the call option | 200.00% | 200.00% | ||||||||
Fair Value of the Call Option | $ 6,600 | |||||||||
Weighted average cost of capital | 13.50% | 13.50% | ||||||||
Other Current liabilities | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Balance at January 1, | 80,107 | |||||||||
Change of financial liabilities with fair value through profit and loss (Note 29, Note 30) | 37,918 | |||||||||
Exchange difference | 2,795 | |||||||||
Balance at December 31, | $ 120,820 | $ 80,107 | ||||||||
Other Current liabilities | Silent partnership agreements | ||||||||||
Financial liabilities designated as fair value through profit or loss | ||||||||||
Balance at December 31, | ¥ | ¥ 13,600 |
OTHER NON-CURRENT LIABILITIES -
OTHER NON-CURRENT LIABILITIES - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Other Noncurrent Liabilities [Line Items] | ||
Financial liabilities designated as fair value through profit or loss | $ 178,705 | $ 133,553 |
Held for trading derivatives not designated in hedge accounting relationships | 1,128 | 1,364 |
Asset retirement obligation | 12,251 | 7,448 |
Others | 78 | 110 |
Total | 70,136 | 141,001 |
Transaction A | ||
Disclosure Of Other Noncurrent Liabilities [Line Items] | ||
Financial liabilities designated as fair value through profit or loss | 80,107 | |
Transaction B | ||
Disclosure Of Other Noncurrent Liabilities [Line Items] | ||
Financial liabilities designated as fair value through profit or loss | 1,253 | 829 |
Transaction C | ||
Disclosure Of Other Noncurrent Liabilities [Line Items] | ||
Financial liabilities designated as fair value through profit or loss | $ 55,426 | $ 51,143 |
OTHER NON-CURRENT LIABILITIE130
OTHER NON-CURRENT LIABILITIES - Financial liabilities designated as fair value through profit or loss (Details) $ in Thousands, ¥ in Millions | Sep. 18, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015JPY (¥)subsidiary | Dec. 31, 2015USD ($)subsidiary |
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | $ 133,553 | ||||
Fair value effect during the year | (39,105) | $ (2,957) | $ (5,686) | ||
Balance at December 31, | 178,705 | 133,553 | |||
Transaction B | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | 829 | ||||
Balance at December 31, | 1,253 | 829 | |||
Transaction B | Sky Solar Japan KK ("SSJ") | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Number of subsidiaries | subsidiary | 3 | 3 | |||
Number of IPP solar parks held by the three subsidiaries | subsidiary | 4 | 4 | |||
Contractual period | 15 years | 15 years | |||
Transaction B | Sky Solar Japan KK ("SSJ") | JAML | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Contributions made by the counterparty | ¥ 63 | $ 519 | |||
Total Contribution (as a percent) | 10.00% | 10.00% | |||
Transaction C | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | 51,143 | ||||
Balance at December 31, | $ 55,426 | 51,143 | |||
Initial amortization period | 9 months | ||||
Amortization period after the note purchase date | 24 months | ||||
Equity conversion period | 1 year | ||||
Transaction C | Energy Capital Investment II sarl ("ECI") | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Amount funded under the agreement | $ 48,200 | ||||
Transaction C | Energy Capital Investment II sarl ("ECI") | Hudson | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Contributions made by the counterparty | $ 50,000 | ||||
Non-controlling equity interest to be received (as a percent) | 49.00% | ||||
Other non-current liabilities | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | 133,553 | ||||
Balance at December 31, | 57,885 | 133,553 | |||
Other non-current liabilities | Transaction B | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | 829 | 882 | |||
Fair value effect during the year | 396 | (86) | |||
Exchange difference | 28 | 33 | |||
Balance at December 31, | 1,253 | 829 | $ 882 | ||
Other non-current liabilities | Transaction C | |||||
OTHER NON-CURRENT LIABILITIES | |||||
Balance at January 1, | 51,143 | 3,061 | |||
Additional received from Hudson | 44,000 | ||||
Interest addition during the year | 5,756 | 3,803 | |||
Fair value effect during the year | 791 | 279 | |||
Interest paid back for distribution | (2,264) | ||||
Balance at December 31, | $ 55,426 | $ 51,143 | $ 3,061 |
OTHER NON-CURRENT LIABILITIE131
OTHER NON-CURRENT LIABILITIES - Held for trading derivatives not designated in hedge accounting relationships and Asset Retirement Obligations (Details) | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)agreementitem | Dec. 31, 2015USD ($)agreement | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016JPY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015JPY (¥) | Dec. 31, 2015USD ($) | |
OTHER NON-CURRENT LIABILITIES | |||||||||
Gain (loss) on change in fair value of swaps | $ 201,000 | $ (641,000) | $ (585,000) | ||||||
Fair value liabilities | $ 1,128,000 | $ 1,364,000 | |||||||
Number of solar parks acquired | item | 23 | ||||||||
Asset retirement obligations incurred | 4,800,000 | 2,100,000 | |||||||
Accretion expenses on asset retirement obligations | 108,000 | $ 355,000 | |||||||
Not designated for hedging Outstanding receive floating pay fixed contracts, Japan, From 2015 to 2032 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | 34,443,000 | 33,282,000 | |||||||
Fair value liabilities | 1,064,000 | 1,255,000 | |||||||
Not designated for hedging Outstanding receive floating pay fixed contracts, USA, From 2014 to 2019 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | $ 19,764,000 | $ 5,650,000 | |||||||
Interest rate (as a percent) | 5.09% | 5.09% | 5.98% | 5.98% | |||||
Fair value liabilities | $ 64,000 | $ 139,000 | |||||||
Variable rate | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 4.82% | 4.82% | 3.63% | 3.63% | |||||
Fixed rate | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 3.52% | 3.52% | 4.13% | 4.13% | |||||
Fixed rate | Not designated for hedging Outstanding receive floating pay fixed contracts, Japan, From 2015 to 2032 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 2.93% | 2.93% | 2.93% | 2.93% | |||||
Loan agreement maturing May 23, 2031 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | ¥ | ¥ 547,200,000 | ||||||||
Loan agreement maturing May 23, 2031 | Fixed rate | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 3.16% | 3.16% | |||||||
Loan agreement maturing May 31, 2032 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | ¥ | ¥ 1,752,800,000 | ||||||||
Loan agreement maturing May 31, 2032 | 6-months JPY TIBOR | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Adjustment to interest rate basis (as a percent) | 2.20% | 2.20% | |||||||
Loan agreement maturing May 31, 2032 | Fixed rate | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 3.08% | 3.08% | |||||||
Loan agreement maturing November 30, 2032 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | ¥ | ¥ 1,570,000,000 | ||||||||
Loan agreement maturing November 30, 2032 | 6-months JPY TIBOR | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Adjustment to interest rate basis (as a percent) | 2.00% | 2.00% | |||||||
Loan agreement maturing November 30, 2032 | Fixed rate | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 2.68% | 2.68% | |||||||
USD 5.65 Million Loan agreement | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Number of loan agreements entered | agreement | 3 | ||||||||
Total principal | $ 5,650,000 | ||||||||
Gain (loss) on change in fair value of swaps | (3,000) | $ 181,000 | |||||||
Loan agreement maturing December 8, 2027 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | $ 20,200,000 | ||||||||
Interest rate swap fixed rate | 5.75% | 5.75% | |||||||
Loan agreement maturing December 8, 2027 | Fixed rate | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | |||||||
Loan agreement maturing June 30, 2026 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | $ 2,000,000 | ||||||||
Interest rate swap fixed rate | 6.00% | 6.00% | |||||||
Loan agreement maturing June 30, 2026 | Fixed rate | Interest rate swap | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate (as a percent) | 6.00% | 6.00% | |||||||
USD 5.65 Million Loan agreement, third loan | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Interest rate swap fixed rate | 6.27% | 6.27% | |||||||
USD 20.2 Million Loan agreement, third loan | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Total principal | $ 20,200,000 | ||||||||
Interest rate swap fixed rate | 5.00% | 5.00% | |||||||
Sky Solar Japan KK ("SSJ") | JPY 2,300 Million Loan agreement | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Number of loan agreements entered | agreement | 2 | ||||||||
Total principal | ¥ 2,300,000,000 | $ 19,100,000 | |||||||
Gain (loss) on change in fair value of swaps | $ 204,000 | $ (744,000) | |||||||
Sky Solar Japan KK ("SSJ") | JPY 2,300 Million Loan agreement | 6-months JPY TIBOR | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Adjustment to interest rate basis (as a percent) | 2.20% | 2.20% | |||||||
Sky Solar Japan KK ("SSJ") | Loan agreement maturing November 30, 2032 | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Number of loan agreements entered | agreement | 1 | ||||||||
Total principal | ¥ 1,570,000,000 | $ 13,500,000 | |||||||
Sky Solar Japan KK ("SSJ") | Loan agreement maturing November 30, 2032 | 6-months JPY TIBOR | |||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||
Adjustment to interest rate basis (as a percent) | 2.00% | 2.00% |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) $ / shares in Units, $ in Thousands | Jul. 15, 2016USD ($)instrumentitemshares | May 06, 2016item | Nov. 13, 2014USD ($)shares | Dec. 31, 2013shares | Dec. 31, 2016USD ($)instrumentitem$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Share capital | ||||||||
Ordinary Share, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Ordinary shares, authorized | shares | 500,000,000 | |||||||
Ordinary shares, issued | shares | 29,519,844 | 339,196,670 | 419,546,514 | 390,026,670 | ||||
Share capital | $ | $ 3 | $ 8 | $ 8 | $ 5 | $ 5 | |||
Number of solar parks acquired | item | 23 | |||||||
Shares considered as legally issued | shares | 1,430,000 | 940,000 | ||||||
IPO | ||||||||
Share capital | ||||||||
Ordinary shares, issued | shares | 50,830,000 | |||||||
Share capital | $ | $ 5 | |||||||
Acquired Companies | ||||||||
Share capital | ||||||||
Consideration, validly issued restricted ordinary shares | instrument | 29,519,844 | 29,519,844 | ||||||
Number of solar parks acquired | item | 23 | 23 | 23 | |||||
Par value of shares issued | $ | $ 2,952 | |||||||
Fair value of shares issued | $ | $ 10,147 | $ 10,147,446 |
SHARE-BASED COMPENSATION - SHAR
SHARE-BASED COMPENSATION - SHARE OPTION SCHEME (Details) | 12 Months Ended | ||||
Dec. 31, 2010USD ($)tranche | Dec. 31, 2009shares | Dec. 31, 2017YEquityInstruments | Dec. 31, 2016EquityInstruments | Dec. 31, 2015EquityInstruments | |
Share Option Scheme | |||||
SHARE-BASED COMPENSATION | |||||
Permitted number shares to be issued | shares | 22,195,122 | ||||
Maximum awards that may granted in one year, as a percent to issued shares (as a percent ) | 1.00% | ||||
Expiry period (in years) | 10 years | ||||
Number of granted tranches of awards | tranche | 2 | ||||
Number of share options outstanding | EquityInstruments | 729,000 | 729,000 | 729,000 | ||
Vested and exercisable | EquityInstruments | 729,000 | 729,000 | 729,000 | ||
Weighted average remaining contractual life | Y | 2.05 | ||||
Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Exercise price (in dollars per share) | $ 0.6833 | ||||
Estimated fair values | 144,000 | ||||
Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Exercise price (in dollars per share) | 0.6833 | ||||
Estimated fair values | $ 1,509,000 | ||||
First year | Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 50.00% | ||||
First year | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Second year | Share Option Scheme, First Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 50.00% | ||||
Second year | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Third year | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% | ||||
Fourth year | Share Option Scheme, Second Tranche | |||||
SHARE-BASED COMPENSATION | |||||
Vesting percentage (as a percent) | 25.00% |
SHARE-BASED COMPENSATION - EQUI
SHARE-BASED COMPENSATION - EQUITY INCENTIVE PLAN (Details) | Aug. 01, 2015EquityInstruments | Jul. 01, 2015EquityInstruments | Nov. 14, 2014USD ($)EquityInstruments | Nov. 13, 2014USD ($)EquityInstruments | Oct. 30, 2014 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
SHARE-BASED COMPENSATION | ||||||||
Fair values recognized | $ (223,000) | $ 997,000 | $ 1,389,000 | |||||
Administrative expenses | (223,000) | 997,000 | $ 1,389,000 | |||||
2014 Equity Incentive Plan | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Options granted to directors | EquityInstruments | 330,000 | |||||||
Exercise price (in dollars per share) | $ 1 | |||||||
Vesting period (in years) | 10 years | |||||||
2014 Equity Incentive Plan | First year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 33.33% | |||||||
2014 Equity Incentive Plan | Second year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 33.33% | |||||||
2014 Equity Incentive Plan | Third year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 33.33% | |||||||
2014 Equity Incentive Plan | July 1, 2015 and August 1, 2015 | First year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 50.00% | 50.00% | ||||||
2014 Equity Incentive Plan | July 1, 2015 and August 1, 2015 | Second year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 50.00% | 50.00% | ||||||
Restricted shares | November 14, 2014 | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Awards granted | EquityInstruments | 1,800,000 | |||||||
Percentage that vests on IPO Date (as a percent) | 25.00% | |||||||
Percentage that vests after IPO Date (as a percent) | 75.00% | |||||||
Unrecognized amounts of the unvested shares | 0 | 174,000 | ||||||
Fair value of the share | $ 1.14 | |||||||
Restricted shares | November 14, 2014 | First year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Annual vesting post IPO Date (as a percent) | 25.00% | |||||||
Restricted shares | November 14, 2014 | Second year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 25.00% | |||||||
Restricted shares | November 14, 2014 | Third year | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Vesting percentage (as a percent) | 25.00% | |||||||
Restricted shares | July 1, 2015 and August 1, 2015 | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Awards granted | EquityInstruments | 500,000 | 500,000 | ||||||
Unrecognized amounts of the unvested shares | 0 | 156,000 | ||||||
Fair value of the share | $ 1.13 | $ 1.18 |
ACQUISITION OF SUBSIDIARIES (De
ACQUISITION OF SUBSIDIARIES (Details) $ in Thousands | Jul. 15, 2016USD ($)instrumentitem | May 06, 2016USD ($)item | Dec. 31, 2016USD ($)instrumentitem |
Disclosure of detailed information about business combination [line items] | |||
Number of solar parks acquired | item | 23 | ||
Acquired Companies | |||
Disclosure of detailed information about business combination [line items] | |||
Share capital subscribed (as a percent) | 100.00% | ||
Number of solar parks acquired | item | 23 | 23 | 23 |
Consideration transferred | $ 15,800 | ||
Cash paid as consideration | $ 5,666 | $ 5,666 | |
Consideration, validly issued restricted ordinary shares | instrument | 29,519,844 | 29,519,844 | |
Holding period before shares can be traded freely | 180 days | ||
Fair value of shares issued | $ 10,147 | $ 10,147,446 | |
Greenleaf Clear Skies I | GLT NLH2 Solar | Class B membership interests | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 100.00% | ||
GLT NLH2 Solar | Sun Harvest Solar | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 100.00% | ||
Greenleaf Clear Skies II | GLT Pioneer Solar | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 100.00% | ||
GLT Pioneer Solar | Greenfield PV Holdings | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 90.00% | ||
Greenfield PV Holdings | Pioneer Vally Solar | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 99.99% | ||
Greenleaf Clear Skies IV | Cloverdale Solar | Class B membership interests | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 100.00% | ||
Cloverdale Solar | Cloverdale Solar I | |||
Disclosure of detailed information about business combination [line items] | |||
Ownership interest in subsidiary (as a percent) | 100.00% |
ACQUISITION OF SUBSIDIARIES - A
ACQUISITION OF SUBSIDIARIES - Assets acquired and associated liabilities assumed (Details) - USD ($) $ in Thousands | May 06, 2016 | Dec. 31, 2016 | Jul. 15, 2016 |
Net cash outflow on acquisition of subsidiary: | |||
Net cash outflow arising on acquisition: | $ 1,113 | ||
Acquired Companies | |||
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract] | |||
Current assets | $ 5,673 | ||
Bank and cash | $ 4,553 | 4,553 | |
Trade and other receivables | 1,120 | ||
Non-current assets | 44,339 | ||
IPP solar parks | 34,158 | ||
Other long-term assets | 10,181 | ||
Current liabilities | (1,129) | ||
Trade and other payables | (344) | ||
Short-term bank loan | (785) | ||
Non-current liabilities | (31,665) | ||
Assets Retirement Obligation | (714) | ||
Long-term bank loan | (20,076) | ||
Other long-term liabilities | (10,875) | ||
Non-controlling interest | 1,400 | 1,405 | |
Net assets acquired | 15,813 | ||
Consideration and satisfied by: | |||
Issuance of ordinary shares | $ 10,147,446 | 10,147 | |
Cash paid | 5,666 | 5,666 | |
Net cash outflow on acquisition of subsidiary: | |||
Cash paid as consideration | 5,666 | 5,666 | |
Less: cash received in acquired companies | 4,553 | $ 4,553 | |
Net cash outflow arising on acquisition: | $ 1,113 |
ACQUISITION OF SUBSIDIARIES - P
ACQUISITION OF SUBSIDIARIES - Profit, Revenue & Pro-forma information (Details) - Acquired Companies - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Disclosure of detailed information about business combination [line items] | ||
Profit of acquiree since acquisition date | $ 1,753 | |
Revenue of acquiree since acquisition date | $ 3,836 | |
Pro forma revenue | $ 69,761 | |
Pro forma profit | $ 5,100 |
DISPOSAL OF SUBSIDIARIES - Sola
DISPOSAL OF SUBSIDIARIES - Solar Tech K.K. (Details) $ in Thousands | Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Net assets (liabilities) of subsidiary disposed | |||||
Current Assets | $ 138,402 | $ 166,168 | |||
Cash and cash equivalents | 46,084 | 12,518 | |||
Trade and other receivables | 34,582 | 30,097 | |||
Non-current Assets | 442,706 | 310,078 | |||
Current Liabilities | (171,933) | (69,112) | |||
Trade and other payables | (29,043) | (24,037) | |||
Non-current Liabilities | (302,947) | (273,212) | |||
Borrowings | (230,027) | (131,881) | |||
Net assets (liabilities) | 106,228 | 133,922 | |||
Gain (Loss) on disposal of a subsidiary | |||||
Gain on disposal of subsidiaries | (41,056) | (4,118) | $ 4,831 | ||
Solar Tech K.K. | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Cash consideration received | ¥ 900,000 | $ 8 | |||
Net assets (liabilities) of subsidiary disposed | |||||
Current Assets | 924 | ||||
Cash and cash equivalents | 628 | ||||
Trade and other receivables | 213 | ||||
Deferred tax assets | 83 | ||||
Non-current Assets | 4,578 | ||||
Long term deposit and others | 820 | ||||
Current Liabilities | (696) | ||||
Trade and other payables | (689) | ||||
Tax payable | (7) | ||||
Non-current Liabilities | (6,484) | ||||
Borrowings | (6,484) | ||||
Net assets (liabilities) | (1,678) | ||||
Gain (Loss) on disposal of a subsidiary | |||||
Cash consideration received | 900,000 | 8 | |||
Net assets (liabilities) disposed | 1,678 | ||||
Gain on disposal of subsidiaries | 1,686 | ||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||
Cash and cash equivalent balances disposed of | 628 | ||||
Cash consideration received | ¥ 900,000 | 8 | |||
Net cash outflow arising on disposal | 620 | ||||
IPP Solar Parks | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 397,405 | $ 271,253 | $ 259,423 | ||
IPP Solar Parks | Solar Tech K.K. | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 3,758 |
DISPOSAL OF SUBSIDIARIES - 1088
DISPOSAL OF SUBSIDIARIES - 1088526 B.C. (Details) $ in Thousands, $ in Millions | Sep. 29, 2016CAD ($)facilitydirector | Sep. 29, 2016USD ($)facilitydirector | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | $ 138,402 | $ 166,168 | |||
Bank balances and cash | 46,084 | 12,518 | |||
Trade and other receivables | 34,582 | 30,097 | |||
Non-current Assets | 442,706 | 310,078 | |||
Current Liabilities | (171,933) | (69,112) | |||
Trade and other payables | (29,043) | (24,037) | |||
Borrowing | (19,702) | (27,280) | |||
Non-current Liabilities | (302,947) | (273,212) | |||
Long-term borrowing | (230,027) | (131,881) | |||
Total assets less total liabilities | 106,228 | 133,922 | |||
Gain (Loss) on disposal of a subsidiary | |||||
Gain on disposal of subsidiaries | (41,056) | (4,118) | $ 4,831 | ||
1088526 B.C. Ltd. | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Percentage of Preferred shares sold | 25.00% | 25.00% | |||
Number of facilities | facility | 15 | 15 | |||
Equity interest (as a percent) | 75.00% | 75.00% | |||
Number of directors appointed by the Group | director | 2 | 2 | |||
Number of total directors | director | 4 | 4 | |||
Cash consideration received | $ 10.6 | $ 7,998 | |||
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | 3,882 | ||||
Bank balances and cash | 3,260 | ||||
Trade and other receivables | 397 | ||||
Other current assets | 225 | ||||
Non-current Assets | 13,089 | ||||
Current Liabilities | (1,036) | ||||
Trade and other payables | (134) | ||||
Borrowing | (902) | ||||
Non-current Liabilities | (16,957) | ||||
Long-term borrowing | (15,539) | ||||
Swap liability | (1,418) | ||||
Total assets less total liabilities | (1,022) | ||||
Gain (Loss) on disposal of a subsidiary | |||||
Cash consideration received | 10.6 | 7,998 | |||
Net assets (liabilities) disposed | 1,022 | ||||
Cumulative gain/loss on hedging instrument reclassified from equity on loss of control of subsidiary | (1,126) | ||||
Re-evaluate fair value of residual investment | 2,188 | ||||
Gain on disposal of subsidiaries | 10,082 | ||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||
Consideration received in cash and cash equivalent | $ 10.6 | 7,998 | |||
Less: Cash and cash equivalent balances disposed of | (3,260) | ||||
Net cash outflow arising on disposal | 4,738 | ||||
IPP Solar Parks | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 397,405 | $ 271,253 | $ 259,423 | ||
IPP Solar Parks | 1088526 B.C. Ltd. | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 13,089 |
DISPOSAL OF SUBSIDIARIES - 1091
DISPOSAL OF SUBSIDIARIES - 1091187 B.C. (Details) $ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017CAD ($)facility | Jan. 31, 2017USD ($)facility | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | $ 138,402 | $ 166,168 | |||
Bank balances and cash | 46,084 | 12,518 | |||
Trade and other receivables | 34,582 | 30,097 | |||
Non-current Assets | 442,706 | 310,078 | |||
Current Liabilities | (171,933) | (69,112) | |||
Trade and other payables | (29,043) | (24,037) | |||
Borrowing | (19,702) | (27,280) | |||
Non-current Liabilities | (302,947) | (273,212) | |||
Long-term borrowing | (230,027) | (131,881) | |||
Total assets less total liabilities | 106,228 | 133,922 | |||
Gain (Loss) on disposal of a subsidiary | |||||
Gain on disposal of subsidiaries | (41,056) | (4,118) | $ 4,831 | ||
1091187 B.C. Ltd. | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Percentage of Preferred shares sold | 25.00% | 25.00% | |||
Cash consideration received | $ 4 | $ 2,979 | |||
Number of facilities | facility | 6 | 6 | |||
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | $ 295 | ||||
Bank balances and cash | 284 | ||||
Trade and other receivables | 11 | ||||
Non-current Assets | 3,294 | ||||
Other noncurrent assets | 41 | ||||
Current Liabilities | (143) | ||||
Trade and other payables | (62) | ||||
Borrowing | (81) | ||||
Non-current Liabilities | (1,319) | ||||
Long-term borrowing | (1,319) | ||||
Total assets less total liabilities | 2,127 | ||||
Gain (Loss) on disposal of a subsidiary | |||||
Cash consideration received | $ 4 | 2,979 | |||
Net assets (liabilities) disposed | (2,127) | ||||
Re-evaluate fair value of residual investment | 612 | ||||
Gain on disposal of subsidiaries | 1,464 | ||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||
Consideration received in cash and cash equivalent | $ 4 | 2,979 | |||
Less: Cash and cash equivalent balances disposed of | (284) | ||||
Net cash outflow arising on disposal | 2,695 | ||||
IPP Solar Parks | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 397,405 | $ 271,253 | $ 259,423 | ||
IPP Solar Parks | 1091187 B.C. Ltd. | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 3,253 | ||||
Ordinary shares | 1091187 B.C. Ltd. | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Percentage of issued shares | 75.00% | 75.00% | |||
Preferred Shares | 1091187 B.C. Ltd. | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Percentage of issued shares | 25.00% | 25.00% |
DISPOSAL OF SUBSIDIARIES - Comp
DISPOSAL OF SUBSIDIARIES - Companies Based in Cypriot (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017EUR (€)facilityMW | Jan. 31, 2017USD ($)facilityMW | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | $ 138,402 | $ 166,168 | |||
Bank balances and cash | 46,084 | 12,518 | |||
Trade and other receivables | 34,582 | 30,097 | |||
Non-current Assets | 442,706 | 310,078 | |||
Current Liabilities | (171,933) | (69,112) | |||
Trade and other payables | (29,043) | (24,037) | |||
Total assets less total liabilities | 106,228 | 133,922 | |||
Gain (Loss) on disposal of a subsidiary | |||||
Gain on disposal of subsidiaries | (41,056) | (4,118) | $ 4,831 | ||
IPP Solar Parks | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 397,405 | $ 271,253 | $ 259,423 | ||
Companies based in Cypriot | |||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||
Number of facilities | facility | 20 | 20 | |||
Capacity of facilities (in MW) | MW | 23 | 23 | |||
Cash consideration received | € 39.7 | $ 41,915 | |||
Net assets (liabilities) of subsidiary disposed | |||||
Current assets | 10,590 | ||||
Bank balances and cash | 3,633 | ||||
Trade and other receivables | 6,957 | ||||
Non-current Assets | 32,827 | ||||
Other noncurrent assets | 1,396 | ||||
Current Liabilities | (1,918) | ||||
Trade and other payables | (1,918) | ||||
Total assets less total liabilities | 41,499 | ||||
Gain (Loss) on disposal of a subsidiary | |||||
Cash consideration received | 39.7 | 41,915 | |||
Net assets (liabilities) disposed | (41,499) | ||||
Gain on disposal of subsidiaries | 416 | ||||
Cash Inflow (Outflow) on disposal of a subsidiary | |||||
Consideration received in cash and cash equivalent | € 39.7 | 41,915 | |||
Less: Cash and cash equivalent balances disposed of | (3,633) | ||||
Net cash outflow arising on disposal | 38,282 | ||||
Companies based in Cypriot | IPP Solar Parks | |||||
Net assets (liabilities) of subsidiary disposed | |||||
Property, plant and equipment | $ 31,431 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Categories of financial instruments: | ||
Financial assets | $ 134,497 | $ 81,004 |
Liabilities at amortized cost | 276,373 | 185,341 |
Liabilities at FVTPL | 178,705 | 133,553 |
Trade and other payables | ||
Categories of financial instruments: | ||
Liabilities at amortized cost | 26,644 | 18,668 |
Amounts due to other related parties | ||
Categories of financial instruments: | ||
Liabilities at amortized cost | 7,512 | |
Borrowings | ||
Categories of financial instruments: | ||
Liabilities at amortized cost | 249,729 | 159,161 |
Other Current liabilities | ||
Categories of financial instruments: | ||
Liabilities at FVTPL | 120,820 | 80,107 |
Other non-current liabilities | ||
Categories of financial instruments: | ||
Liabilities at FVTPL | 57,885 | 133,553 |
Trade and other receivables | ||
Categories of financial instruments: | ||
Financial assets | 25,783 | 22,848 |
Amount due from other related parties | ||
Categories of financial instruments: | ||
Financial assets | 22,345 | 14,358 |
Amount due from Sky Solar Holdings Co., Ltd. | ||
Categories of financial instruments: | ||
Financial assets | 1,430 | |
Restricted cash | ||
Categories of financial instruments: | ||
Financial assets | 40,716 | 29,850 |
Cash and cash equivalents | ||
Categories of financial instruments: | ||
Financial assets | $ 46,084 | $ 12,518 |
FINANCIAL INSTRUMENTS - Currenc
FINANCIAL INSTRUMENTS - Currency risk (Details) - Currency Risk - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Denominated in Euro | Financial liabilities | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | $ 22,281 | $ 19,540 |
Denominated in Euro | Trade and other payables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 5,129 | 4,144 |
Denominated in Euro | Borrowings | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 17,152 | 15,396 |
Denominated in Euro | Financial Assets | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 26,792 | 26,518 |
Denominated in Euro | Cash and cash equivalents | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 7,717 | 4,544 |
Denominated in Euro | Restricted cash | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 952 | 847 |
Denominated in Euro | Trade and other receivables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 8,428 | 13,607 |
Denominated in Euro | Amount due from other related parties | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 9,695 | 7,520 |
Denominated in JPY | Financial liabilities | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 251,445 | 207,816 |
Denominated in JPY | Trade and other payables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 10,076 | 11,553 |
Denominated in JPY | Borrowings | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 118,233 | 114,099 |
Denominated in JPY | Amounts due to other related parties | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 3 | |
Denominated in JPY | Other financial liabilities | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 123,136 | 82,161 |
Denominated in JPY | Financial Assets | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 55,235 | 36,872 |
Denominated in JPY | Cash and cash equivalents | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 21,673 | 2,362 |
Denominated in JPY | Restricted cash | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 26,537 | 24,603 |
Denominated in JPY | Trade and other receivables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 7,025 | 6,086 |
Denominated in JPY | Amount due from other related parties | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 3,821 | |
Denominated in CAD | Financial liabilities | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 362 | 341 |
Denominated in CAD | Trade and other payables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 362 | 341 |
Denominated in CAD | Financial Assets | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 1,586 | 2,145 |
Denominated in CAD | Cash and cash equivalents | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 824 | 309 |
Denominated in CAD | Restricted cash | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | 470 | 736 |
Denominated in CAD | Trade and other receivables | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | $ 292 | 897 |
Denominated in CAD | Amount due from other related parties | ||
Monetary assets and liabilities denominated in currencies other than the functional currency | ||
Exposure to risk | $ 203 |
FINANCIAL INSTRUMENTS - Foreign
FINANCIAL INSTRUMENTS - Foreign currencies (Details) - Currency Risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Denominated in Euro | ||
Sensitivity to interest rate change | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Increase(decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ 523 | $ 502 |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
Denominated in CAD | ||
Sensitivity to interest rate change | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Increase(decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ 142 | $ 130 |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
Denominated in JPY | ||
Sensitivity to interest rate change | ||
Sensitivity analysis, assumed strengthening (as a percent) | 10.00% | 10.00% |
Increase(decrease) in profit where foreign currency denominated items strengthen 10% against the functional currency | $ (22,760) | $ (12,306) |
Sensitivity analysis, assumed weakening (as a percent) | 10.00% | 10.00% |
FINANCIAL INSTRUMENTS - Interes
FINANCIAL INSTRUMENTS - Interest rate risk (Details) - Variable rate - Interest Rate Risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sensitivity to interest rate change | ||
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% |
Increase in profit if variable interest rates had been higher by 5% | $ 268 | $ 22 |
Sensitivity analysis, assumed decrease in interest rate (as a percent) | 5.00% | 5.00% |
Decrease in profit if variable interest rates had been higher by 5% | $ 268 | $ 22 |
FINANCIAL INSTRUMENTS - Credit
FINANCIAL INSTRUMENTS - Credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of major customers | ||
Trade receivables | $ 10,206 | $ 9,016 |
Electricity companies in Japan, Europe and USA | ||
Disclosure of major customers | ||
Trade receivables | $ 8,300 | |
Percentage of total trade receivables | 91.90% | |
Electricity companies in Japan, Europe, USA and Uruguay | ||
Disclosure of major customers | ||
Trade receivables | $ 8,000 | |
Percentage of total trade receivables | 78.40% |
FINANCIAL INSTRUMENTS - Balance
FINANCIAL INSTRUMENTS - Balances with related parties (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related party transactions | ||
Balance due from related parties | $ 22,345 | $ 14,358 |
Solar industry entities located in PRC | ||
Related party transactions | ||
Balance due from related parties | $ 20,900 | $ 10,710 |
Percentage of total due from related parties | 93.30% | 73.20% |
FINANCIAL INSTRUMENTS - Liquidi
FINANCIAL INSTRUMENTS - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | $ 361,824 | $ 217,148 |
Carrying amount | $ 276,401 | $ 185,341 |
Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Interest rate (as a percent) | 4.82% | 3.63% |
Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Interest rate (as a percent) | 3.52% | 4.13% |
Trade and other payables | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | $ 26,644 | $ 18,668 |
Carrying amount | 26,644 | 18,668 |
Amounts due to other related parties | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 28 | 7,512 |
Carrying amount | 28 | 7,512 |
Borrowings | Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 140,189 | 13,309 |
Carrying amount | $ 95,216 | $ 11,162 |
Borrowings | Variable rate | Weighted average | ||
Detail of remaining contractual maturity for financial liabilities | ||
Interest rate (as a percent) | 4.82% | 3.63% |
Borrowings | Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | $ 194,963 | $ 177,659 |
Carrying amount | $ 154,513 | $ 147,999 |
Borrowings | Fixed rate | Weighted average | ||
Detail of remaining contractual maturity for financial liabilities | ||
Interest rate (as a percent) | 3.52% | 4.13% |
Within one year | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | $ 46,374 | $ 54,666 |
Within one year | Trade and other payables | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 26,644 | 18,668 |
Within one year | Amounts due to other related parties | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 28 | 7,512 |
Within one year | Borrowings | Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 4,854 | 843 |
Within one year | Borrowings | Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 14,848 | 27,643 |
More than one year but not exceeding two years | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 25,700 | 14,914 |
More than one year but not exceeding two years | Borrowings | Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 8,173 | 1,133 |
More than one year but not exceeding two years | Borrowings | Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 17,527 | 13,781 |
2-3 Years | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 23,775 | 12,009 |
2-3 Years | Borrowings | Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 8,164 | 1,133 |
2-3 Years | Borrowings | Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 15,611 | 10,876 |
Greater Than Three Years | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 265,975 | 135,559 |
Greater Than Three Years | Borrowings | Variable rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | 118,998 | 10,200 |
Greater Than Three Years | Borrowings | Fixed rate | ||
Detail of remaining contractual maturity for financial liabilities | ||
Undiscounted cash flows | $ 146,977 | $ 125,359 |
FINANCIAL INSTRUMENTS - Liqu149
FINANCIAL INSTRUMENTS - Liquidity analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | $ 275,224 | |
Carrying amount of derivative instrument | 178,705 | |
Other Current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 120,820 | |
Carrying amount of derivative instrument | $ 120,820 | |
Weighted average effective interest rate | 15.00% | |
Other non-current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | $ 154,404 | $ 249,031 |
Carrying amount of derivative instrument | $ 57,885 | $ 133,553 |
Weighted average effective interest rate | 10.99% | 13.80% |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | $ 126,130 | |
Within one year | Other Current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 120,820 | |
Within one year | Other non-current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 5,310 | $ 14,698 |
More than one year but not exceeding two years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 8,420 | |
More than one year but not exceeding two years | Other non-current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 8,420 | 14,818 |
2-3 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 8,440 | |
2-3 Years | Other non-current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 8,440 | 15,251 |
Greater Than Three Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | 132,234 | |
Greater Than Three Years | Other non-current liabilities | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Undiscounted cash flows of derivative instrument | $ 132,234 | $ 204,264 |
FINANCIAL INSTRUMENTS - Fair va
FINANCIAL INSTRUMENTS - Fair value measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | $ 178,705 | $ 133,553 | |
No transfers from Level 1 into Level 2 | 0 | 0 | $ 0 |
No transfers from Level 2 into Level 1 | 0 | 0 | $ 0 |
Other Current liabilities | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | 120,820 | 80,107 | |
Other Current liabilities | income approach - discounted cash flow | Silent Partners | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | 120,820 | ||
Other non-current liabilities | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | 57,885 | 133,553 | |
Other non-current liabilities | income approach - discounted cash flow | Silent Partners | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | $ 80,107 | ||
Discount rate | 6.00% | 7.00% | |
Other non-current liabilities | income approach - discounted cash flow | JAML | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | $ 1,253 | $ 829 | |
Discount rate | 6.00% | 6.00% | |
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% | |
Decrease in carrying amount of other non- current liabilities | $ 32 | $ 22 | |
Sensitivity analysis, estimated increase in electricity income | 5.00% | 5.00% | |
Increase in carrying amount of other current liabilities | $ 63 | $ 40 | |
Other non-current liabilities | income approach - discounted cash flow | Hudson | Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Liabilities at FVTPL | $ 55,426 | $ 51,143 | |
Discount rate | 10.80% | 10.80% | |
Sensitivity analysis, assumed increase in interest rate (as a percent) | 5.00% | 5.00% | |
Decrease in carrying amount of other non- current liabilities | $ 510 | $ 194 | |
Other non-current liabilities | income approach - discounted cash flow | Counterparty One | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Held for trading derivatives not designated in hedge accounting | 1,064 | 1,225 | |
Other non-current liabilities | income approach - discounted cash flow | Counterparty Two | Level 2 | |||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | |||
Held for trading derivatives not designated in hedge accounting | $ 64 | $ 139 |
DETAILS OF PRINCIPAL SUBSIDI151
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP (Details) € in Thousands, лв in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||||||
Dec. 31, 2017CAD ($)subsidiary | Dec. 31, 2016CAD ($)subsidiary | Dec. 31, 2017BGN (лв)subsidiary | Dec. 31, 2017HKD ($)subsidiary | Dec. 31, 2017EUR (€)subsidiary | Dec. 31, 2017JPY (¥)subsidiary | Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2016BGN (лв)subsidiary | Dec. 31, 2016HKD ($)subsidiary | Dec. 31, 2016EUR (€)subsidiary | Dec. 31, 2016JPY (¥)subsidiary | Dec. 31, 2016USD ($)subsidiary | Jul. 15, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | $ | $ 8 | $ 8 | $ 3 | $ 5 | $ 5 | ||||||||||
Sky Solar Bulgaria Co EOOD | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | лв | лв 2,364,800 | лв 2,364,800 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Number of subsidiaries held by our subsidiary | subsidiary | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | |||
Sky Solar (Canada) Ltd. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | $ | $ 100,000 | $ 100,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Number of subsidiaries held by our subsidiary | subsidiary | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | |||
Moktap Holdings Ltd. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | € 1,800 | € 1,800 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Neurlus Ltd. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | 2,000 | 2,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Development Renewable Energy Resources S.A. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | 1,260,000 | 1,260,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky International Enterprise Group Ltd. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | $ | $ 10,000 | $ 10,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Solar Japan K.K. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | ¥ | ¥ 89,100,000 | ¥ 89,100,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Solar Energy S.a.r.l. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | 12,500 | 12,500 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Capital Europe S.a.r.l. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | 12,500 | 12,500 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Solar Iberica S.L. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | € 12,500 | € 12,500 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% | |||||||||||||
Sky Capital America Inc. | |||||||||||||||
DETAILS OF PRINCIPAL SUBSIDIARIES NOW COMPRISING THE GROUP | |||||||||||||||
Share capital | $ | $ 1,200,000 | $ 1,200,000 | |||||||||||||
Proportion of nominal value of issued share capital/registered capital held by the Company | 100.00% | 100.00% |
OPERATING LEASES - The Group as
OPERATING LEASES - The Group as lessee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
The Group as lessee | |||
Minimum lease payments paid under operating leases | $ 4,283 | $ 4,040 | $ 1,095 |
Total future minimum lease payments | 64,280 | 98,794 | 71,798 |
Within one year | |||
The Group as lessee | |||
Total future minimum lease payments | 4,420 | 4,468 | 4,040 |
In the second to fifth years inclusive | |||
The Group as lessee | |||
Total future minimum lease payments | 15,266 | 15,154 | 15,060 |
More than five years | |||
The Group as lessee | |||
Total future minimum lease payments | $ 44,594 | $ 79,172 | $ 52,698 |
Minimum | |||
The Group as lessee | |||
lease term | 5 years | ||
Maximum | |||
The Group as lessee | |||
lease term | 20 years |
OPERATING LEASES - The Group153
OPERATING LEASES - The Group as lessor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
The Group as lessor | |||
lease term | 20 years | ||
Total non-cancellable operating lease receivables | $ 4,313 | $ 3,563 | $ 3,806 |
Contingent rental income recognized during the period | 4,300 | 7,900 | |
Within one year | |||
The Group as lessor | |||
Total non-cancellable operating lease receivables | 195 | 196 | 182 |
In the second to fifth years inclusive | |||
The Group as lessor | |||
Total non-cancellable operating lease receivables | 780 | 782 | 786 |
More than five years | |||
The Group as lessor | |||
Total non-cancellable operating lease receivables | $ 3,338 | $ 2,585 | $ 2,838 |
CAPITAL COMMITMENT (Details)
CAPITAL COMMITMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
CAPITAL COMMITMENT | |||
Capital expenditure in respect of the acquisition of IPP solar parks contracted for but not provided in the consolidated financial statements | $ 34,279 | $ 90,430 | $ 20,079 |
RETIREMENT BENEFIT SCHEMES (Det
RETIREMENT BENEFIT SCHEMES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RETIREMENT BENEFIT SCHEMES | |||
Contributions payable, charged to profit or loss for retirement benefit schemes | $ 627 | $ 816 | $ 734 |
Contributions payable to the plan, as of the balance sheet date | $ 0 | $ 89 |
RELATED PARTY TRANSACTIONS - Sa
RELATED PARTY TRANSACTIONS - Sales to related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related party transactions | |||
Related parties | $ 286 | $ 788 | $ 4,450 |
RisenSky Solar and its subsidiaries | |||
Related party transactions | |||
Related parties | 277 | 254 | 323 |
Oky Solar Holdings, Ltd. . and its subsidiaries | |||
Related party transactions | |||
Related parties | 525 | 4,119 | |
Sky Global Solar S.A. | |||
Related party transactions | |||
Related parties | $ 9 | $ 9 | $ 8 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Compensation of key management personnel (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS | |||
Short-term benefits | $ 2,049 | $ 1,630 | $ 2,413 |
Retirement benefit scheme contributions | 149 | 99 | 121 |
Share-based payment expense | 112 | 646 | 104 |
Remuneration of directors and other members of key management | $ 2,310 | $ 2,375 | $ 2,638 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Interest charged by the related parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Related party transactions | |||
Interest charged by the related parties | $ 292 | $ 891 | |
Beijing Sky Solar Investment Management Co., Ltd. | |||
Related party transactions | |||
Interest rate on payables to related parties | 9.50% | 9.50% | 9.50% |
Interest charged by the related parties | $ 165 | ||
Sky Solar New Energy Investment Ltd. | |||
Related party transactions | |||
Interest rate on payables to related parties | 9.50% | 9.50% | 9.50% |
Interest charged by the related parties | $ 592 | ||
Sky Solar (Hong Kong) International Co., Ltd. | |||
Related party transactions | |||
Interest rate on payables to related parties | 12.00% | 12.00% | 12.00% |
Interest charged by the related parties | $ 292 | $ 134 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2013HKD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2017USD ($) | Sep. 19, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related party transactions | |||||
Accrued Expense on Usage of Trademark from Related Parties | $ 28 | $ 33 | |||
Founder | |||||
Related party transactions | |||||
Annual license fee on usage of trademarks | $ 10 | $ 1,300 | |||
Percentage of annual license fee on gross revenue | 0.05% | 0.05% | |||
Mr. Su | |||||
Related party transactions | |||||
Amounts due from related parties | $ 15,200 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Renova - SUBSEQUENT EVENTS ¥ in Millions, $ in Millions | Mar. 30, 2018JPY (¥)MW | Mar. 30, 2018USD ($)MW |
SUBSEQUENT EVENTS | ||
Threshold capacity limit of solar parks under agreement | 40.8 | 40.8 |
Investment contributed | ¥ 529 | $ 4.7 |
Percentage of project distribution profit or loss | 45.00% | 45.00% |