Annual Report 2025

258 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) (f) Fair values measurement (continued) (iii) Information about Level 3 fair value measurement (continued) The movement during the year in the balance of Level 3 fair value measurement is as follows: 2025 2024 $’000 $’000 Unlisted equity securities: At 1 January 998,075 1,033,669 Fair value losses recognised in other comprehensive income during the year (78,429) (35,594) At 31 December 919,646 998,075 2025 2024 $’000 $’000 Investments in financial assets measured at FVOCI (recycling): At 1 January – – Transfers into Level 3 101,074 – Fair value losses recognised in other comprehensive income during the year (3,717) – Expected credit loss recognised in profit or loss during the year (note 4) (86,500) – At 31 December 10,857 – Any gains or losses arising from the remeasurement of the Group’s unlisted equity securities held for strategic purposes are recognised in the fair value reserve (non-recycling) in other comprehensive income. Any gains or losses arising from the remeasurement of the Group’s investment in financial assets measured at FVOCI (recycling) are recognised in the fair value reserve (recycling) in other comprehensive income. (iv) Fair values of financial instruments carried at other than fair value All financial instruments carried at amortised cost are carried at amounts not materially different from their fair values as at 31 December 2025 and 2024. 34 Contingent liabilities At 31 December 2025 and 2024, guarantees were given to banks by the Company in respect of bank loans extended to certain wholly-owned subsidiaries. As at the end of the reporting period, the Directors do not consider it probable that a claim will be made against the Company under these guarantee arrangements. The maximum liability of the Company at the end of the reporting period under the guarantees is the amount of the facilities drawn down by the subsidiaries that are covered by the guarantees, being $2,575,000,000 (2024: $2,607,500,000). The Company has not recognised any deferred income in respect of the guarantee as its fair value cannot be reliably measured and there is no transaction price.