Annual Report 2021

CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 180 Notes to the Consolidated Financial Statements For the year ended 31 December 2021 37. FINANCIAL RISK MANAGEMENT (CONTINUED) 37.1 Financial risk factors (continued) (ii) Credit risk and impairment assessment (continued) The following table shows reconciliation of loss allowances that has been recognised for other debtors. Lifetime ECL (credit- impaired) HK$’million As at 1 January 2020 38 Impairment loss recognised 536 Exchange adjustments 44 As at 31 December 2020 618 Impairment loss recognised 288 Exchange adjustments 20 As at 31 December 2021 926 The Group makes full provision for other debtors when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, when the other debtors are over three years past due, or in dispute whichever occurs earlier. For financial guarantee contracts, the maximum amount that the Group has guaranteed under the respective contracts was HK$305 million as at 31 December 2021 (2020: HK$307 million). As at 31 December 2021 and 2020, the directors of the Company have performed impairment assessment, and concluded that the loss allowance for financial guarantee contracts, if any, should not be material to these consolidated financial statements.