Annual Report 2019

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2019 113 The United Laboratories International Holdings Limited Annual Report 2019 19. INVESTMENT PROPERTIES AND PROPERTIES HELD FOR DEVELOPMENT (Continued) c) Fair value measurement of investment properties (Continued) Investment properties held by the Group in the consolidated statement of financial position Fair value hierarchy Valuation technique(s) and key input(s) Significant unobservable inputs Relationship of unobservable inputs to fair value Leasehold land in Chengdu, the PRC Level 3 Residual Method Expected selling price of completed units: at an average of RMB9,933 per square meter (31 December 2018: RMB10,042 per square meter) – Average construction period: 3 – 7 years (31 December 2018: 3 – 7 years) – Finance costs: 4.75 – 4.90% per annum (31 December 2018: 4.75 – 4.90% per annum) – Average construction cost: RMB6,900 per square meter (31 December 2018: RMB5,900 per square meter) – Developer’s profit margin: 40% (31 December 2018: 40%) – A slight increase in the expected selling price of properties in similar locality would result in a significant increase in fair value, and vice versa. – An increase in the construction period would result in a decrease in the fair value, and vice versa. – An increase in the finance costs would result in a decrease in the fair value, and vice versa. – An increase in the average construction costs would result in a decrease in the fair value, and vice versa. – An increase in the developer’s profit margin would result in a decrease in the fair value, and vice versa.