NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 13 DEVELOPMENT PROPERTIES Group Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Properties under development, for which revenue is to be recognised over time 1,800,306 1,430,301 – – Properties under development, for which revenue is to be recognised at a point in time 4,265,203 2,115,494 – – Completed units 1,303,974 1,472,165 161,687 161,687 7,369,483 5,017,960 161,687 161,687 Allowance for foreseeable losses (225,141) (167,441) – – Total development properties 7,144,342 4,850,519 161,687 161,687 (i) Allowance for foreseeable losses Movements in allowance for foreseeable losses are as follows: Group Company Note 2025 2024 2025 2024 $’000 $’000 $’000 $’000 At 1 January 167,441 171,509 – – Allowance made 32 80,459 4,236 – – Allowance utilised (23,641) (9,623) – – Translation differences on consolidation 882 1,319 – – At 31 December 225,141 167,441 – – The allowance for foreseeable losses is determined after taking into account estimated selling prices, estimated total construction costs and selling expenses. The estimated selling prices are based on recent selling prices for the development project or comparable projects and prevailing property market conditions. The estimated total construction costs are based on contracted amounts and, in respect of amounts not contracted for, management’s estimates of the amounts to be incurred taking into consideration historical trends of the amounts incurred. The allowance made for foreseeable losses is included in “cost of sales”. (ii) Development properties of the Group recognised as cost of sales, excluding allowance for foreseeable losses, amounted to $908,246,000 (2024: $741,000,000) for the year. (iii) Development properties of the Group with carrying amounts of $323,767,000 (2024: $396,997,000) are mortgaged to financial institutions to secure credit facilities (refer to note 22). 14 CONTRACT COSTS The amount relates to commission fees paid to property agents for securing sale contracts for the Group’s development properties. During the year, $12,601,000 (2024: $41,460,000) of commission fees were capitalised as contract costs. Capitalised commission fees are amortised when the related revenue is recognised. During the year, $22,147,000 (2024: $17,117,000) was amortised. There is no impairment loss in relation to such costs capitalised. ANNUAL REPORT 2025 | 163
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