Annual Report 2020

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2020 105 The United Laboratories International Holdings Limited Annual Report 2020 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 at the date of disposal 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 at date of disposal – Average construction period: 3 – 7 years – Finance costs: 4.75 – 4.90% per annum – Average construction cost: RMB6,900 per square meter – Developer’s profit margin: 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.