Trade Receivables from Cuba - The company reported a trade receivable from the Cuban National Bank amounting to approximately HKD 179,490,000 (around USD 5,196,000 and EUR 15,465,000) as of December 31, 2021[3]. - The trade receivable from Cuba decreased by approximately USD 10,000 and EUR 26,000 in 2021 compared to 2020, indicating a settlement approved by the Cuban National Bank[4]. - The company has not engaged in any trade activities with Cuba since May 2019, leading to concerns about the recoverability of the receivables[4]. - The auditors expressed a qualified opinion due to insufficient appropriate audit evidence regarding the recoverability of the Cuban trade receivables[9]. - The company has not made any impairment provision for the Cuban trade receivables, believing that the Cuban National Bank will eventually repay the amounts owed[8]. - The management plans to continue actively contacting the Cuban National Bank to seek repayment of the trade receivables[9]. - The auditors agreed with the management's stance that impairment provisions are not appropriate unless the Cuban National Bank indicates it will not repay the receivables[9]. - The outstanding receivables from the Cuban National Bank were subject to foreign exchange shortages and strict controls by the Cuban government[9]. - The company received confirmation letters from the Cuban National Bank regarding the outstanding trade receivables on a quarterly basis[9]. - The company is considering alternative solutions to address the audit qualification regarding the receivables[5]. - The company is actively seeking repayment of trade receivables from the Cuban National Bank, but is facing challenges due to the bank's inability to provide a detailed solution amid strict foreign exchange controls[11]. - Auditors have expressed a qualified opinion on the company's trade receivables from Cuba as sufficient audit evidence cannot be obtained due to the foreign exchange shortage[11]. - The company is unable to provide a specific timeline for resolving the audit issues related to trade receivables from Cuba, as the foreign exchange shortage is a political issue beyond its control[11]. Economic Context of Cuba - Cuba's foreign exchange income is primarily derived from tourism and the export of medical professionals, with foreign tourist arrivals expected to drop from approximately 1,080,000 in 2020 to around 200,000 in 2021 due to border closures[10]. - The Cuban government allocates about 60% of its foreign exchange income to purchase essential goods such as food and medicine due to ongoing foreign exchange shortages[10].
久融控股(02358) - 2021 Q4 - 年度财报