Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.35K(a) & 36(a)
HKFRS 7.33(a), (b), 35B(a) &
35B(c)
HKFRS 7.35B(a) & 35F(c)
Except for the financial guarantee given by the group as set out in note 23(a), the group does not
provide any other guarantees which would expose the group to credit risk. The maximum exposure to
credit risk in respect of this financial guarantee at the end of the reporting period is disclosed in note
23(a).269
Trade receivables and contract assets
The group has established a credit risk management policy under which individual credit evaluations are
performed on all customers requiring credit over a certain amount. These evaluations focus on the
customer's past history of making payments when due and current ability to pay, and take into account
information specific to the customer as well as pertaining to the economic environment in which the
customer operates. Trade receivables are due within [•] days from the date of billing. Debtors with
balances that are more than [●] months past due are requested to settle all outstanding balances
before any further credit is granted. Normally, the group does not obtain collateral from customers.
The group has no significant concentration of credit risk in industries or countries in which the
customers operate. Significant concentrations of credit risk primarily arise when the group has
significant exposure to individual customers. At the end of the reporting period, []% (2022: [●]%), |
1% (2022: []%) and [●] % (2022: []%) of the total trade receivables and contract assets was due from
the group's largest customer, the second largest customer and the five largest customers respectively
within the electronics business segment.
The group measures loss allowances for trade receivables and contract assets at an amount equal to
lifetime ECLs, which is calculated using a provision matrix. The group segments its trade receivables and
contract assets based on geographic regions, due to different loss patterns experienced in the different
regions 270
HKFRS 7.36(a)
269 Paragraph 36(a) of HKFRS 7 requires disclosure of the amount, by class of financial instrument, that best represents the entity's
maximum exposure to credit risk at the end of the reporting period without taking account of any collateral held or other credit
enhancements. This disclosure is only required for financial instruments whose carrying amount does not best represent the
maximum exposure to credit risk, for example financial guarantees and loan commitments.
HKFRS 9.B5.5.5
270
If the historical credit loss experience shows significantly different loss patterns for different customer segments, the trade
receivables and contract assets should be further segmented based on shared credit risk characteristics. These segments could
be based on geographic region, product type, customer rating, type of customers (e.g. retail or wholesale) etc. In this
illustration, HK Listco segments the trade receivables and contract assets based on geographic regions.
169
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