CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 252 253 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 41 FINANCIAL INSTRUMENTS (CONT’D) (v) Accounting classifications and fair values (cont’d) Level 3 fair values The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy: Group Company Unquoted debt investments mandatorily at FVTPL Unquoted equity investments at FVOCI Unquoted equity investments mandatorily at FVTPL Unquoted equity investments at FVOCI $’000 $’000 $’000 $’000 At 1 January 2021 45,115 356,729 90,073 324,877 Additions – – 31,652 – Redemption on maturity (10,395) – – – Distribution of income and return of capital (419) – (9,914) – Reclass to investment in an associate – – (436) – Reclassification from interest receivable (1,311) – – – Total gain recognised in profit or loss - finance costs 720 – 17,313 – Total loss for the period included in other comprehensive income - net change in fair value of equity investments at FVOCI – 1,141 – 2,700 Translation differences on consolidation (787) – 1,777 – At 31 December 2021 32,923 357,870 130,465 327,577 At 1 January 2020 582,144 392,395 59,086 350,561 Additions – – 35,844 – Redemption (575,822) – – – Distribution of income and return of capital – – (5,145) – Reclassification from interest receivable 13 – – – Total gain recognised in profit or loss - finance income 36,151 – 2,131 – Total loss for the period included in other comprehensive income - net change in fair value of equity investments at FVOCI – (35,666) – (25,684) Translation differences on consolidation 2,629 – (1,843) – At 31 December 2020 45,115 356,729 90,073 324,877 42 OPERATING SEGMENTS Information reported to the Board of Directors for the purposes of resource allocation and assessment of segment performances is specifically focused on the functionality of services provided. The following summary describes the operations in each of the Group’s reportable segments: Property development – develops and purchases properties for sale Hotel operations – owns and manages hotels Investment properties – develops and purchases investment properties for lease Others comprises mainly investment in shares, management and consultancy services, and provision of laundry services. None of these segments meet any of the quantitative thresholds for determining reportable segments in 2021 and 2020. Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Board of Directors. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Information about reportable segments Property development Hotel operations Investment properties Total Others Total $’000 $’000 $’000 $’000 $’000 $’000 2021 Total revenue (including intersegment revenue) 1,254,470 883,784 407,155 2,545,409 193,959 2,739,368 Inter-segment revenue – (10,666) (66,037) (76,703) (36,812) (113,515) External revenue 1,254,470 873,118 341,118 2,468,706 157,147 2,625,853 Profit from operating activities 203,917 16,299 89,551 309,767 12,105 321,872 Share of after-tax profit/(loss) of associates and joint ventures 114,606 (36,578) (5,297) 72,731 34,761 107,492 Finance income 22,443 3,153 4,342 29,938 6,268 36,206 Finance costs (96,201) (53,922) (64,285) (214,408) (23,415) (237,823) Net finance costs (73,758) (50,769) (59,943) (184,470) (17,147) (201,617) Reportable segment profit/(loss) before tax 244,765 (71,048)* 24,311 198,028 29,719 227,747 Depreciation and amortisation 3,895 131,337 115,925 251,157 26,388 277,545 * Hotel operations for 2021 comprise revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) attributable to hotel rooms owned by the Group amounting to $577.0 million and $75.2 million respectively.
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