TRADE RECEIVABLE

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Trade Receivable

TRADE RECEIVABLE

10. TRADE RECEIVABLE

	December 31,			June 30,
	2022			2023			2023
	CNY			CNY			US$
	(Audited)			(Unaudited)			(Unaudited)
Non-current
Trade receivables from third parties		13,128			8,460			1,166
Less: Impairment allowance		(2,608	)		(3,746	)		(516	)
		10,520			4,714			650
Current
Trade receivables from service concession agreement		22,927			29,276			4,036
Trade receivables from construction contracts		34,850			37,265			5,137
Less: Impairment allowance		(11,017	)		(10,267	)		(1,415	)
		46,760			56,274			7,758
Total		57,280			60,988			8,408

An aging analysis of the trade receivables as of the end of the reporting period, based on the invoice date and net of loss allowance, is as follows:

	December 31,		June 30,
	2022		2023		2023
	CNY		CNY		US$
	(Audited)		(Unaudited)		(Unaudited)
Within 1 year		18,401		14,577		2,010
Between 1-2 years		13,896		13,058		1,800
Between 2-3 years		4,518		11,860		1,635
Over 3 years		20,465		21,493		2,963
Total		57,280		60,988		8,408

Movements of loss allowance during the year/period are analyzed as follows:

	Year Ended December 31,			Six Months Ended June 30,
	2022			2023		2023
	CNY			CNY		US$
	(Audited)			(Unaudited)		(Unaudited)
Beginning of the year/period		17,614			13,625		1,878
Provision for expected credit losses (“ECLs”)		(3,989	)		388		53
End of the year/period		13,625			14,013		1,931

The Group elected to apply the simplified approach for providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure ECLs, trade receivables were classified according to the characteristics of shared credit risk and days past due. The ECLs below also incorporate forward looking information. The impairment as of December 31, 2022 and June 30, 2023 was determined as follows:

			Past Due
	Current		within 1 years			1-2 years			2-3 years			over 3 years			Total
As of December 31, 2022:
Expected credit loss rate				0	%		9	%		29	%		34	%		19	%
Gross carrying amount (CNY)		—		18,406			15,195			6,399			30,905			70,905
Impairment allowances (CNY)		—		5			1,299			1,881			10,440	(i)		13,625
As of June 30, 2023:
Expected credit loss rate				0	%		0	%		12	%		36	%		19	%
Gross carrying amount (CNY)		335		14,291			13,062			13,474			33,839			75,001
Impairment allowances (CNY)		—		49			4			1,614			12,346	(i)		14,013
Impairment allowances (US$)		—		7			1			222			1,701			1,931

(i) The impairment allowances included an amount of CNY4,600 and CNY4,619 (US$637) as of December 31, 2022 and June 30, 2023, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

14. TRADE RECEIVABLES

	December 31,
	2021			2022			2022
	CNY			CNY			US$
Non-current
Trade receivables from construction contracts		17,033			13,128			1,904
Less: Impairment allowance		(7,532	)		(2,608	)		(379	)
Total of Non-current trade receivables		9,501			10,520			1,525
Current
Trade receivables from service concession agreement		11,252			22,927			3,324
Trade receivables from construction contracts		40,356			34,850			5,052
Less: Impairment allowance		(10,082	)		(11,017	)		(1,597	)
Total of current trade receivables		41,526			46,760			6,779
Total		51,027			57,280			8,304

The Group’s trade receivables arise from the provision of construction services for wastewater treatment projects, sale of wastewater treatment equipment, and operation service of the service concession arrangement. The majority of the Group’s customers are town/village government entities or main contractors of the governmental infrastructure projects whose time of payment for the service or goods received from the Group depend on the appropriation and approval of the fiscal funds. Accordingly, the Group granted various credit terms to different customers, depending on the nature and background of the customers and projects. The Group generally granted customers a credit period of one month to three months, except for some of the customers for construction services, sales of wastewater treatment equipment and maintenance services who will generally settle the amounts owed to the Group in a number of specified installments covering periods ranging from one year to five years. Apart from the trade receivables related to the service concession arrangement which bear no interest, the trade receivables of construction services, operation and maintenance services and sale of wastewater treatment equipment bear an imputed interest rate of 4.75% per annum.

An aging analysis of the trade receivables as of the end of the reporting period, based on the invoice date and net of loss allowance, is as follows:

	December 31,
	2021		2022		2022
	CNY		CNY		US$
Within 1 year		19,026		18,401		2,667
Between 1-2 years		5,106		13,896		2,015
Between 2-3 years		12,796		4,518		655
Over 3 years		14,099		20,465		2,967
Total		51,027		57,280		8,304

The movement in the loss allowance for trade receivables during the years indicated are as follows:

	December 31,
	2021		2022			2022
	CNY		CNY			US$
Beginning of the year		13,774		17,614			2,554
(Reversal)/provision for expected credit losses, net		3,840		(3,989	)		(578	)
End of the year		17,614		13,625			1,976

A decrease in the loss allowance of CNY3,992 (US$579) (2021: increase CNY3,839) was the result of a net decrease (2021: a net increase) in the gross carrying amount after the settlement of trade receivables of construction contracts and origination of new trade receivables of construction contracts.

The Group elected to apply the simplified approach for providing impairment for ECLs prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the ECLs, trade receivables were grouped based on the shared credit risk characteristics and the days past due. The ECLs below also incorporate forward-looking information. The impairment as of December 31, 2021 and 2022 was determined as follows:

	Past due
	Current	Within 1 year		1-2 years		2-3 years		Over 3 years		Total
As of December 31, 2021:
Expected credit loss rate:		6	%	26	%	13	%	48	%	26	%
Gross carrying amount (CNY)	3,670	16,311		6,865		14,712		27,083		68,641
Impairment allowances (CNY)		955		1,759		1,916	(i)	12,984	(ii)	17,614
As of December 31, 2022:
Expected credit loss rate:		0	%	9	%	29	%	34	%	19	%
Gross carrying amount (CNY)	—	18,406		15,195		6,399		30,905		70,905
Impairment allowances (CNY)		5		1,299		1,881		10,440	(ii)	13,625
Impairment allowances (US$)		1		188		273		1,514		1,976

(i) The impairment allowances included CNY221 as of December 31, 2021, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.

(ii) The impairment allowances included an amount of CNY4,646 and CNY4,600 (US$667) as of December 31, 2021 and 2022, respectively, for specific trade receivables which were considered to be in default due to conditions which indicated that the Group was unlikely to receive the outstanding contractual amounts in full.