Annual Report 2024

259 2024 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 33 Financial risk management and fair values of financial instruments (continued) (d) Currency risk (continued) (i) Exposure to currency risk The table below details the Group’s exposure at the end of the reporting period to currency risk arising from recognised assets or liabilities denominated in a currency other than the functional currency of the entity to which they relate. For presentation purposes, the amounts of the exposure are shown in Hong Kong dollars, translated using the spot rate at the end of the reporting period. Differences resulting from the translation of the financial statements of operations outside Hong Kong into the Group’s presentation currency are excluded. Exposure to foreign currencies (expressed in Hong Kong dollars) 2024 2023 British Pound Sterling United States dollars British Pound Sterling United States dollars $’000 $’000 $’000 $’000 Bank deposits and cash 1,702 863,262 3,162 605,844 Accounts payable and accruals (72,581) (163) (103,633) (859) Investments in financial assets measured at FVOCI (recycling) – 407,468 – 597,355 Gross exposure arising from recognised assets and liabilities (70,879) 1,270,567 (100,471) 1,202,340 (ii) Sensitivity analysis The table below indicates the instantaneous change in the Group’s profit after tax (and retained profits) and other components of consolidated equity that would arise if foreign exchange rates to which the Group has significant exposure at the end of the reporting period had changed at that date, assuming all other risk variables remained constant. In this respect, it is assumed that the pegged rate between Hong Kong dollars and United States dollars would be materially unaffected by any changes in movement in value of United States dollars against other currencies. 2024 2023 Increase/ (decrease) in foreign exchange rates (Decrease)/ increase in profit after tax and retained profits Increase/ (decrease) in foreign exchange rates (Decrease)/ increase in profit after tax and retained profits $’000 $’000 British Pound Sterling 6% (3,534) 6% (5,002) (6)% 3,534 (6)% 5,002 Results of the analysis as presented in the above table represent an aggregation of the instantaneous effects on each of the Group entities’ profit after tax and equity measured in the respective functional currencies, translated into Hong Kong dollars at the exchange rate ruling at the end of the reporting period for presentation purposes. The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure those financial instruments held by the Group which expose the Group to foreign currency risk at the end of the reporting period. The analysis excludes differences that would result from the translation of the financial statements of operations outside Hong Kong into the Group’s presentation currency. The analysis is performed on the same basis for 2023.