Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
The analysis of expense items in relation to leases recognised in profit or loss is as follows:
HKFRS 16.53(a)
Depreciation charge of right-of-use assets by class of
underlying asset:
Ownership interests in leasehold land and buildings
Other properties leased for own use
Plant, machinery and equipment
2023
2022
$'000
$'000
1,629
1,192
12,811
9,737
6,150
5,204
20,590
16,133
HKFRS 16.53(b)
Interest on lease liabilities (note 5(a))
4,587
3,967
HKFRS 16.53(c)
Expense relating to short-term leases 175
1,050
850
HKFRS 16.53(d)
Expense relating to leases of low-value assets, excluding short-
term leases of low-value assets 175
3,300
2,700
HKFRS 16.53(e)
Variable lease payments not included in the measurement of
lease liabilities
1,560
1,760
HKFRS 16.60A(b)
COVID-19-related rent concessions received
(380)
HKFRS 16.53(h)
HKFRS 16.52
HKFRS 16.60A(a)
HKFRS 16.59(a)
During the year, additions to right-of-use assets were $29,298,000 (2022: 25,082,000). This amount
included the purchase of a leasehold property of $9,868,000 (2022: 6,847,000), and the remainder
primarily related to the capitalised lease payments payable under new tenancy agreements.
Details of land leases included in the carrying amount of inventories, total cash outflow for leases, the
maturity analysis of lease liabilities and the future cash outflows arising from leases that are not yet
commenced are set out in notes 19(b), 22(d), 33(b) and 34, respectively.
The group applied the practical expedient in paragraph 46A of HKFRS 16 to all eligible rent
concessions received by the group in 2022. Further details are disclosed in (ii) below.
(i) Ownership interests in leasehold land and buildings held for own use
The group holds several industrial buildings for its electronics business, where its manufacturing
facilities are primarily located. The group is the registered owner of these property interests,
including the whole or part of undivided share in the underlying land. Lump sum payments were
made upfront to acquire these property interests from their previous registered owners, and there
are no ongoing payments to be made under the terms of the land lease, other than payments based
on rateable values set by the relevant government authorities. These payments vary from time to
time and are payable to the relevant government authorities.
HKFRS
16.53(c)&(d)
175 If the lessee has elected to apply the recognition exemption in paragraphs 5 to 6 of HKFRS 16, the expenses relating to short-
term leases (which need not include the expense relating to leases with a lease term of one month or less) and the expense
relating to leases of low-value assets (which shall not include the expense relating to the short-term leases of low-value assets)
shall be disclosed.
110
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