Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

16

Financial assets, at FVOCI

Group and Company 2021 2020 S$’000 S$’000

*

Unquoted equity securities – British Virgin Island

2,000

* Less than S$1,000

The financial assets at FVOCI represent 22.3% equity interest of a company that is engaged in mineral mining industry. The investment does not meet the requirements as an associated company in accordance with SFRS(I) 1-28 Investments in Associates and Joint Venture as the Group and the Company do not have significant influence over the entity because the Group and the Company do not have representation on the board and do not participate in policy-making processes. As such, the Group and the Company have elected to measure the above financial asset at FVOCI due to management’s intention to hold this financial asset for strategic investment purpose. In the previous financial years, the fair value of the unquoted equity securities is determined based on the bid price from the potential buyer as the management has intention to dispose of the unquoted securities. Following the lapse of the proposed disposal and as there is no progress in the development of the mineral mines since its acquisition to the end of the financial year, management has assessed that there is no realisable value on this investment. Accordingly, the fair value of the financial assets, at FVOCI was determined to be a nominal value of S$1 as at 30 June 2021 in view of the lack of marketability and data to determine the realisable value. The fair value loss of S$2,000,000 is charged to other comprehensive income.

17

Development properties

Group

2021

2020

S$’000

S$’000

Properties under development - Development expenditure incurred to date

13,642

11,642

Development properties are expected to be recovered after 12 months from the financial year ended 30 June 2021.

The subsidiary corporations in Huzhou have obtained management rights over a land parcel located in Digang Town, Nanxun District, Huzhou City of Zhejiang Province, PRC with a total site area of 320 hectares (the “Project Land”). During the financial year ended 30 June 2021, the Group is revising the master development plan and intends to develop the Project Land into an integrated residential-cum-active-ageing hub which will be supported by a comprehensive range of professionally managed healthcare-related (including a hospital, specialist clinics and senior activity centres), commercial, educational and family entertainment facilities that promote overall well-being and life-long learning.

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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