Annual Report 2022

215 2022 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 19 Other financial assets 2022 2021 Note $’000 $’000 Equity investments designated at FVOCI (non-recycling) – Unlisted equity securities (i) 1,017,187 708,809 Financial assets measured at FVOCI (recycling) – Debt securities listed outside Hong Kong (ii) 843,079 1,351,530 Financial assets measured at amortised cost – Loan receivables 64,419 34,418 Other financial assets measured at FVPL 7,577 – 1,932,262 2,094,757 Less: debt securities listed outside Hong Kong classified as current assets (194,761) (731,045) loan receivables classified as current assets (13,639) (10,050) other financial assets measured at FVPL classified as current assets (7,577) – Other financial assets classified as current assets 215,977 741,095 Other financial assets classified as non-current assets 1,716,285 1,353,662 Notes: (i) The unlisted equity securities mainly represented a company incorporated in Hong Kong and engaged primarily in the business of managing a common ticketing and payment system. The Group designated its investments in unlisted equity securities at FVOCI (non-recycling), as the investments are held for strategic purposes. Dividends of $64,861,000 (2021: $38,539,000) were declared on these investments during the year. (ii) During the year 2022, expected credit loss of $92,000,000 was recognised to reflect the change in credit risk for the investments in financial assets measured at FVOCI (recycling). As at 31 December 2021, none of the financial assets measured at FVOCI (recycling) had significant credit risk. 20 Employee retirement benefits The Group makes contributions to two defined benefit retirement schemes which provide pension benefits for employees upon retirement. Both schemes are formally established under trust and are registered under the Occupational Retirement Schemes Ordinance. The schemes are administered by an independent trustee and the assets are held separately from those of the Group. The trustees are required by the Trust Deed to act in the best interest of the plan participants and are responsible for setting investment policies of the plans. The members’ benefits are determined based on the employees’ final remuneration and length of service. The plans are funded by contributions from the Group in accordance with an independent actuary’s recommendation based on annual actuarial valuations. The latest independent actuarial valuations of the plans at 31 December 2022 were prepared by Towers Watson Hong Kong Limited which has among its staff fellow members of the Society of Actuaries of the United States of America using the projected unit credit method, and were carried out by the appointed actuary, represented by Ms Wing Lui. The actuarial valuations indicate that the Group’s obligations under these defined benefit retirement schemes are 246% (2021: 246%) covered by the plan assets held by the trustee. The plans expose the Group to actuarial risks, such as interest rate risk, investment risk and longevity risk. Since the two retirement schemes have similar risks and features, information about the two plans is aggregated and disclosed below: