Annual Report 2023

Notes to the Consolidated Financial Statements For the year ended 31 December 2023 160 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 25. DEBTORS, DEPOSITS AND PREPAYMENTS (CONTINUED) Notes: (a) Movements in the allowance for credit losses of trade debtors are as follows: 2023 2022 HK$’million HK$’million As at 1 January 77 59 Allowance for credit losses 20 24 Reversal of allowance (1) (2) Written-off (7) — Exchange adjustments 1 (4) As at 31 December 90 77 The allowance for credit losses have been included in other income and other gains/(losses), net in the consolidated statement of profit or loss. (b) The Group has a credit policy of allowing an average credit period of 90 days (2022: 90 days) to its trade debtors. The ageing analysis of trade debtors, based on the invoice date, net of allowance for credit losses of trade debtors, is as follows: 2023 2022 HK$’million HK$’million 0 - 90 days 766 871 91 - 180 days 31 33 181 - 365 days 30 15 Over 365 days 11 9 838 928 (c) As at 31 December 2023, trade debtors of HK$700 million (2022: HK$743 million) and other financial assets of HK$402 million (2022: HK$651 million) are neither past due nor impaired. (d) As at 31 December 2023, included in the Group’s trade debtors balance are debtors with aggregate carrying amount (before any allowance for credit losses) of HK$228 million (2022: HK$262 million) which are past due as at the reporting date. Out of the past due balances, HK$52 million (2022: HK$48 million) has been past due 90 days or more and is not considered as in default as these are related to a number of independent customers for whom there is no significant financial difficulty and based on past experience, the overdue amounts can be recovered. (e) The balances are unsecured, interest-free and repayable in accordance with the credit term.