Annual Report 2023

Notes to the Consolidated Financial Statements For the year ended 31 December 2023 180 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 35. FINANCIAL RISK MANAGEMENT (CONTINUED) 35.1 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 2022 926 Impairment losses recognised 255 Impairment loss reversed (1) Exchange adjustments (58) As at 31 December 2022 1,122 Impairment losses recognised 4 Impairment loss reversed (52) Exchange adjustments (19) As at 31 December 2023 1,055 The Group makes full impairment for other debtors when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, or in dispute whichever occurs earlier. For financial guarantee contracts, the maximum amount that the Group has guaranteed under the respective contracts was HK$436 million as at 31 December 2023 (2022: HK$299 million). As at 31 December 2023 and 2022, 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.