NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 10 FINANCIAL ASSETS (CONT’D) 2023 During 2023, discussions between the bankruptcy administrator, creditors of Sincere Property Group and potential investors were held. As at 31 December 2023, Sincere Property Group remained under bankruptcy reorganisation and no concrete reorganisation plan has been approved by the Chongqing No 5 Intermediate People’s Court. As at 31 December 2023, the Group assessed that the investment in the bond continued to be credit-impaired. The Group assessed the lifetime ECL to be recognised, taking into consideration the latest developments on bankruptcy reorganisation of Sincere Property Group based on available information, prevailing market conditions and price trends of corporate bonds issued by other China real estate developers that face similar debt and liquidity challenges as those faced by Sincere Property Group. Based on the assessment undertaken, the investment in the bond remained fully impaired as at 31 December 2023. As the bankruptcy reorganisation for Sincere Property Group is ongoing, its outcome is uncertain and evolving. Changes to circumstances and estimates may impact the ECL recognised on the investment in the bond. The ECL on the investment in the bond is also sensitive to the assumptions used. As the investment in bond has been fully impaired, any decrease in LGD in isolation would result in a higher recoverable amount. (c) Equity investments designated at FVOCI The Group designated the equity investments shown below as equity investments at FVOCI because these equity investments represent investments that the Group intends to hold for the long-term for strategic purposes. Group Company Fair value Dividend income recognised Fair value Dividend income recognised $’000 $’000 $’000 $’000 2024 Unquoted investment in a fellow subsidiary: – Hong Leong Holdings Limited 394,133 2,869 394,133 2,869 Unquoted investment in a non-related company: – Singapore-Suzhou Township Development Pte. Ltd. 22,166 714 – – Quoted investment in a fellow subsidiary: – Hong Leong Finance Limited 26,876 1,387 22,600 1,167 Quoted investment in an associate: – First Sponsor Group Limited Series 3 Perpetual Convertible Capital Securities 88,609 – – – 2023 Unquoted investment in a fellow subsidiary: – Hong Leong Holdings Limited 404,089 3,206 404,089 3,206 Unquoted investment in a non-related company: – Singapore-Suzhou Township Development Pte. Ltd. 22,264 863 – – Quoted investment in a fellow subsidiary: – Hong Leong Finance Limited 27,203 1,822 22,874 1,533 Information about the Group’s and the Company’s exposures to credit and market risks, and fair value measurement, is included in note 41. FINANCIALS CITY DEVELOPMENTS LIMITED 138
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