Lease obligations

12 Months Ended

Dec. 31, 2021

Lease obligations

3 Lease obligations

The Group has operating leases primarily for office space. The Group’s leases have remaining lease terms of several months to two years.

The components of lease expense are as follows:

	Years ended December 31,
	2021		2020
	US$’000		US$’000
Operating lease cost		243		257
Short-term lease cost		62		64
Total lease cost		305		321

Supplemental consolidated cash flow information related to leases is as follows:

	Years ended December 31,
	2021		2020
	US$’000		US$’000
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		196		195
Right-of-use assets obtained in exchange for lease obligations (noncash):
Operating leases		-		-

Supplemental consolidated balance sheet information related to leases is as follows:

	December 31,
	2021			2020
	US$’000			US$’000
Operating leases
Operating lease right-of-use assets		238			233
Current portion of long-term operating lease obligations		175			118
Long-term operating lease obligations, net of current maturities		41			94
		216			212
Total operating lease liabilities
Weighted average remaining lease term
Operating leases		23 months			16 months
Weighted average discount rate
Operating leases		5	%		5	%

Maturities of lease liabilities are as follows:

	Operating leases
	US$’000
Year ending December 31,
2022		181
2023		42
Total lease payments		223
Less: imputed interest		(7	)
Total		216

ZHEJIANG TIANLAN

Lease obligations

3  Lease obligations  

The Group has finance leases primarily for equipment.

The components of lease expense are as follows:

	Years ended December 31,
	2021		2020
	RMB’000		RMB’000
Finance lease cost:
Amortization of right-of-use assets		-		5,837
Interest on lease liabilities included under cost of revenue and selling and administrative expenses		-		1,244
Total finance lease cost		-		7,081

Supplemental consolidated cash flow information related to leases is as follows:

	Years ended December 31,
	2021		2020
	RMB’000		RMB’000
Cash paid for amounts included in the measurement of lease liabilities:
Finance cash flows from finance leases		-		11,263
Right-of-use assets obtained in exchange for lease obligations (noncash):
Finance leases		-		-

Supplemental consolidated balance sheet information related to leases is as follows:

	December 31,
	2021			2020
	RMB’000			RMB’000
Finance leases
Property, plant and equipment, at cost		-			-
Accumulated depreciation and impairment losses		-			-
Property, plant and equipment, net		-			-
Current maturities of long-term debt		-			-
Total finance lease liabilities		-			-
Weighted average remaining lease term
Finance leases		-			-
Weighted average discount rate
Finance leases		5.9	%		5.9	%