8 TRADE AND OTHER RECEIVABLES (cont’d) Accordingly, the Group recorded US$Nil allowance for ECL during the year and in 2024. In addition, the Group recorded a reversal of allowance for ECL of US$163,602 (2024 : US$226,332) following receipts from a debtor during the year. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. A receivable is written-off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the NOTES TO FINANCIAL STATEMENTS 31 December 2025 Trade receivables - days past due Current 1 – 30 days 31 - 90 days > 90 days Total US$ US$ US$ US$ US$ Group 2025 Estimated total gross carrying amount at default 19,494,225 321,833 - 58,753 19,874,811 Lifetime ECL - - - - - 19,874,811 2024 Estimated total gross carrying amount at default 18,008,040 5,007,650 - 1,076,480 24,092,170 Lifetime ECL - - - (894,995) (894,995) 23,197,175 debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due, whichever occurs earlier. The following table details the risk profile of trade receivables with customers, excluding trade receivables under Cooperation Agreement, based on the Group’s provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the allowance for ECL based on past due status is not further distinguished between the Group’s different customer base: (a) Credit-impaired receivables arising from advance payments for coal purchase and deposit paid for acquisition of mining concessions In 2019, the Group entered into a conditional sale and purchase agreement (“CSPA”) with a third party coal mine owner to acquire interest in two mining concessions for which it had paid a refundable deposit. In addition, the Group also entered into two separate coal purchase contracts with the coal mine owner for which it had advance payments for coal purchase. Due to the coal mine owner’s inability to fulfil certain conditions precedent to the CSPA, as well as its failure to deliver the coal, the refundable deposit and the remaining balance of advance payments were reclassified as other receivables and became immediately repayable. On 1 July 2024, the Group had completed the sale of the rights to these receivables to a third party for a total cash consideration of US$18,000,000. Accordingly, the receivable and associated ECL as well as interest in suspense of US$41,554,259 on the date of sale was written off, resulting in US$Nil balance outstanding as at 31 December 2024. As these receivables had been subjected to full ECL in 2022, the entire proceed of US$18,000,000 from the sale was credited to profit or loss as other income in 2024 (Note 32). 87 GEO ENERGY | ANNUAL REPORT 2025
RkJQdWJsaXNoZXIy NTkwNzg=