Cash balances including cash and ca

Cash balances including cash and cash equivalents and restricted cash were XX and XX at 31 December 2019 and 2020 and reduced to XX at 31 December 2021. The Group has been experiencing certain slowing down of the local property market since second half of 2021 in general which could reduce pre-sales volume and collection of pre-sale proceeds. Above situations might impose liquidity pressure of the Group. In view of such circumstances, the directors have given careful consideration to the future resettlement plan, project development progress, pre-sales plan and collection progress of presale proceeds, grant of qualified project development loans, progress of initial public offering of the shares of the Company, and continue to take the following measures to maintain sufficient cash to meet its operation needs and commitments in respect of property projects:(i) The Group will continue to actively adjust sales and pre-sale activities to better respond to market needs, and make efforts to achieve the latest budgeted sales and pre-sales volumes and amounts;(ii) The Group will continuously enhance payment collection progress from customers in respect of the property sales and pre-sales through closely following up with customers and, communicate and coordinate with banks for timely grant of individual mortgage loans to the customers; (iii) The Group will maintain continuous communication with the major constructors and suppliers to arrange payments to these vendors and complete the construction progress; (iv) The Group will continue to actively communicate with relevant banks so that the Group can timely secure necessary project development loans for qualified project development; and (v) The Group will adjust resettlement activities and acquisitions of land based on progress of new financing mainly through success of the initial public offering of the shares of the Group, and to ensure continuous development and sales of all existing projects as budgeted without material interruptions.Management has prepared the Group’s cash flow forecast which covers a period of at least 12 months from 31 December 2021. The cash flow forecast has taken into accounts the anticipated cash flows generated from the Group’s operations, scheduled repayment of borrowings, obtaining of new borrowings and the estimated net proceeds from the initial public offering of the Group. The directors, after making due enquiries and considering the basis of management’s projections and continuous measures described above, believe that, the Group will be able to generate sufficient funds to finance its operations and to meet its financial obligations when they fall due within the next 12 months from 30 December 2021. Accordingly, the directors are satisfied that it is appropriate to prepare the consolidated financial statements on a going concern basis.