Annual Report 2025

254 Transport International Holdings Limited 2025 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 33 Financial risk management and fair values of financial instruments (continued) (b) Liquidity risk (continued) Non-derivative financial liabilities 2025 2024 Contractual undiscounted cash outflow Contractual undiscounted cash outflow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years Total Carrying amount at 31 December Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years Total Carrying amount at 31 December $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Bank loans 2,855,190 574,686 – 3,429,876 3,371,811 1,017,833 2,207,560 1,373,876 4,599,269 4,210,933 Lease liabilities 3,896 2,776 620 7,292 7,049 3,836 2,580 1,339 7,755 7,302 Accounts payable and accruals 1,370,760 – – 1,370,760 1,370,760 1,576,416 – – 1,576,416 1,576,416 4,229,846 577,462 620 4,807,928 4,749,620 2,598,085 2,210,140 1,375,215 6,183,440 5,794,651 (c) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. It is the Group’s policy to closely monitor the market conditions and devise suitable strategies against interest rate risk. As at 31 December 2025 and 2024, all the Group’s borrowings were denominated in Hong Kong dollars on a floating interest rate basis. The Group regularly reviews its strategy on interest rate risk management in the light of prevailing market conditions. (i) Interest rate profile The following table details the interest rate profile of the Group’s interest-bearing assets and liabilities at the end of the reporting period. 2025 2024 Effective interest rate p.a. Amount Effective interest rate p.a. Amount % $’000 % $’000 Fixed rate assets: Bank deposits 3.7 1,729,378 5.0 1,887,394 Investments in financial assets measured at FVOCI (recycling) 5.0 499,766 5.2 407,468 2,229,144 2,294,862 Fixed rate liabilities: Lease liabilities 3.1 (7,049) 5.3 (7,302) Variable rate liabilities: Bank loans 4.9 (3,371,811) 5.2 (4,210,933)