KEY RISKS The Group’s financial results and operational performance are subject to a wide range of risk factors. To manage these exposures, the Group implements risk management strategies and internal control measures designed to mitigate potential impacts. The key risks faced by the Group are outlined below. Risk Description Risk Mitigation Market Sentiment and Competition Risk The property development industry remains highly competitive, with the Group competing against numerous developers for strategically located and reasonably priced landbanks, skilled talent, suitable property product types and competitive pricing. As the Group derives a significant portion of its revenue from its property development segment, its financial performance remains sensitive to shifts in market sentiment and broader economic or systemic conditions. • Rebalance the product mix to include a higher proportion of owner-occupier offerings and affordable landed residential developments that address strong local demand • Integrate technology into operational processes and deploy digital tools to minimise operational disruption • Expand the use of online sales platforms to support sales teams and agents • Intensify digital marketing initiatives through videos, targeted advertising, promotional campaigns and strategic partnerships • Introduce attractive sales packages, financing options and buyer incentives to encourage homeownership and ease purchasing barriers Financial Risk The Group manages exposure to financial risks arising from credit risk, liquidity constraints and the potential inability to maintain favourable credit standing. Liquidity pressures may occur if the Group is unable to meet present or future funding obligations, whether anticipated or unforeseen as they fall due. If not effectively managed, these exposures could adversely affect the Group’s financial management, operational continuity and overall financial position. • Review weekly cash flow forecasts and monitor the 12-month rolling cash flow position on a monthly basis • Diversify funding sources and lender relationships • Evaluate cash flow requirements of ongoing development projects • Monitor borrowing maturity profiles and ensure compliance with financial covenants, including maintaining gearing ratios within prescribed thresholds Regulatory Risk The Group ensures that its employees, operational processes and business activities comply with applicable policies, laws and regulatory requirements to avoid legal sanctions and reputational damage arising from breach of regulations. • Closely track regulatory developments, while updating applicable compliance requirements which affect operations • Engage regularly with professional advisers, including consultants, legal counsel and financial institutions, to review regulatory obligations and implement appropriate measures to maintain full compliance 221
RkJQdWJsaXNoZXIy NDgzMzc=