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109
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
3 Financial Risk Management
(Continued)
(a) FINANCIAL RISK FACTORS
(Continued)
(v) Liquidity risk
Management aims to maintain sufficient cash to meet funding requirement for operations and monitors rolling
forecasts of the Group’s cash on the basis of expected cash flow. The directors of the Company have prepared cash
flow projections for the year ending 31 December 2012. Key assumptions used in the preparation of the cash flow
projections for the year ending 31 December 2012 include: (1) proceeds from pre-sales in 2012 is expected to be
comparable to that of 2011; (2) construction payments match receipt of the relevant proceeds from pre-sales; (3)
available project loan facility is expected to be no less than that of 2011 and (4) no breach of debt covenants is
anticipated in 2012.
The Group has a number of alternative plans to mitigate the potential impacts on anticipated cash flows should
there be significant adverse changes in economic environment which might have unexpected material impact on
the Group’s anticipated cash flow position. These include accelerating sales of the Group’s properties with more
flexible pricing, adjusting and further slowing down the construction progress as appropriate, ensuring available
resources for the development of properties for sale, implementing cost control measures, introducing strategic
partners to the Group’s property development projects and seeking other funding alternatives. The Group, will base
on its assessment of the relevant future costs and benefits, pursue such options as are appropriate. The directors
consider that the Group will be able to maintain sufficient financial resources to meet its operation needs.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining
period from the balance sheet date to the contractual maturity date. As the amounts disclosed in the table are the
contractual undiscounted cash flows, these amounts will not reconcile to the amounts disclosed on the consolidated
balance sheets for borrowings.
GROUP
RMB’000
Less than
1 year
Between 1
and
2 years
Between 2
and
5 years
Over
5 years
Total
At 31 December 2011
Borrowings, including interest payable
10,615,876 2,991,458 3,271,924 546,767 17,426,025
Obligation under finance lease
920
920
2,967
44,720
49,527
Trade and other payables
4,759,018
— — — 4,759,018
Total
15,375,814 2,992,378 3,274,891 591,487 22,234,570
At 31 December 2010
Borrowings, including interest payable
7,263,912 4,281,004 4,683,968 719,963 16,948,847
Obligation under finance lease
920
920
2,829
45,778
50,447
Trade and other payables
2,458,068
— — — 2,458,068
Total
9,722,900 4,281,924 4,686,797 765,741 19,457,362