NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 10 FINANCIAL ASSETS (CONT’D) Group Company Note 2024 2023 2024 2023 $’000 $’000 $’000 $’000 Current investments Quoted equity investments mandatorily at FVTPL – an associate 93 120 93 120 – non-related companies 4,702 5,646 – – 4,795 5,766 93 120 Unquoted debt investment at amortised cost – a non-related company (b) 312,501 304,405 – – Impairment loss (312,501) (304,405) – – – – – – Total current financial assets 4,795 5,766 93 120 Total financial assets 784,890 660,835 418,163 428,857 (a) Fellow subsidiaries are subsidiaries of the immediate holding company. (b) Unquoted debt investment at amortised cost with gross carrying amount of $312,501,000 (US$230 million) (2023: $304,405,000 (US$230 million)) relates to the Group’s investment in a US$ bond issued by Chongqing Sincere Yuanchuang Industrial Co., Ltd and its subsidiaries (Sincere Property Group). As at 31 December 2024 and 31 December 2023, the issuer remained under bankruptcy reorganisation, and the bond remained unpaid and was fully impaired. The Group has no collateral in respect of this investment. The movement in the allowance for impairment for debt investments at amortised cost during the year was as follows: Lifetime ECL credit -impaired 2024 2023 $’000 $’000 Balance as at 1 January 304,405 309,488 Translation differences on consolidation 8,096 (5,083) Balance as at 31 December 312,501 304,405 The Group undertook an impairment assessment of the investment in the bond. 2024 There was no major development on the process of bankruptcy reorganisation of Sincere Property Group in 2024, with no reorganisation plan being firmed up. As at 31 December 2024, Sincere Property Group remained under bankruptcy reorganisation. As at 31 December 2024, the Group assessed that the investment in the bond remained to be credit-impaired. The Group assessed the lifetime ECL to be recognised, taking into consideration the latest status of 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 2024. ANNUAL REPORT 2024 FINANCIALS 137
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