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Investor Presentaiton

HKAS 1.51(a) HKAS 1.49 HK Listco Ltd HKFRS 7.31-35 Financial statements for the year ended 31 December 2023 40-42 & B25-28 (e) Equity price risk 266, 267 HKFRS 7.40(a) HKFRS 7.40(b)-(c) The group is exposed to equity price changes arising from equity investments held for trading and non- trading purposes (see note 17). Other than unquoted securities held for strategic purposes, all of these investments are listed. The group's listed investments are listed on the Stock Exchange of Hong Kong and are included in the Hang Seng Index. Decisions to buy or sell trading securities are based on daily monitoring of the performance of individual securities compared to that of the Index and other industry indicators, as well as the group's liquidity needs. Listed investments that are not held for trading purposes have been chosen based on their longer term growth potential and are monitored regularly for performance against expectations. The portfolio is diversified in terms of industry distribution, in accordance with the limits set by the group. All of the group's unquoted investments are held for long term strategic purposes. Their performance is assessed at least bi-annually against performance of similar listed entities, based on the limited information available to the group, together with an assessment of their relevance to the group's long term strategic plans. The group is also exposed to equity price risk arising from changes in the company's own share price to the extent that the company's own equity instruments underlie the fair values of derivatives or other financial liabilities of the group. As at the end of the reporting period the group is exposed to this risk through the conversion rights attached to Tranche B of the convertible notes issued by the company as disclosed in note 25(b)(ii). At 31 December 2023, it is estimated that an increase/(decrease) of [•] % (2022: []%) in the relevant stock market index (for listed investments), the price/earning ratios of comparable listed companies (for unquoted investments) or the company's own share price (for the conversion option of certain convertible bonds) as applicable, with all other variables held constant, would have increased/decreased the group's profit after tax (and retained profits) and other components of consolidated equity as follows:278 Change in the relevant equity price risk variable: Increase Decrease [❤]% ([❤])% 2023 2022 Effect on profit after tax and retained profits $'000 Effect Effect on other components of equity $'000 on profit after tax and retained profits $'000 1% 1)% Effect on other components of equity $'000 The sensitivity analysis indicates the instantaneous change in the group's profit after tax (and retained profits) and other components of consolidated equity that would arise assuming that the changes in the stock market index or other relevant risk variables had occurred at the end of the reporting period and had been applied to re-measure those financial instruments held by the group which expose the group to equity price risk at the end of the reporting period. It is also assumed that the fair values of the group's equity investments would change in accordance with the historical correlation with the relevant stock market index or the relevant risk variables, and that all other variables remain constant. The analysis is performed on the same basis for 2022. 184 © 2023 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.
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