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
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