Annual Report 2019

169 Miramar Hotel and Investment Company, Limited Annual Report 2019 Notes to the Financial Statements 24 Financial risk management and fair values (Continued) (b) Liquidity risk (continued) Contractual undiscounted cash flow 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 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 At 31 December 2018 Trade and other payables 400,002 – – 400,002 400,002 Amounts due to associates 4,307 – – 4,307 4,307 Amounts due to holders of non-controlling interests of subsidiaries 73,709 13,093 – 86,802 84,816 Bank loan 2,853 – – 2,853 2,848 Rental deposits received 97,459 – – 97,459 97,459 Contract liabilities 164,469 – – 164,469 164,469 Deferred liabilities – 92,452 84,455 176,907 176,907 742,799 105,545 84,455 932,799 930,808 (c) Equity price risk The Group is exposed to equity price changes arising from equity investments held for trading and non-trading purposes (see note 13). The Group’s listed investments are listed in Hong Kong and overseas. 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 indications, as well as the Group’s liquidity needs. Listed investments that are not held for trading purposes have been chosen taking reference to their long term growth potential and returns and are monitored regularly for performance against expectations. Given that the volatility of the stock markets may not have a direct correlation with the Group’s investment portfolio, it is impractical to determine the impact that the changes in stock market indices would have on the Group’s portfolio of equity investments. At 31 December 2019, it is estimated that an increase/decrease of 5% (2018: 5%) in the market value of the Group’s listed securities, with all other variables held constant, the Group’s profit after tax would have increased/decreased by HK$265,000 (2018: HK$806,000). The Group’s total equity would have increased/decreased by HK$4,747,000 (2018: HK$5,416,000). The sensitivity analysis above 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 change in market value 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 listed investments would change in accordance with the market values, and that all other variables remain constant. The analysis is performed on the same basis for 2018.