Annual Report 2023

245 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 20 Other financial assets 2023 2022 Note $000 $000 Equity securities designated at FVOCI (non-recycling) – Unlisted equity securities (i) 1,033,669 1,017,187 Financial assets measured at FVOCI (recycling) – Debt securities listed outside Hong Kong (ii) 627,464 843,079 Financial assets measured at amortised cost – Loan receivables 64,419 64,419 Other financial assets measured at FVPL 5,199 7,577 1,730,751 1,932,262 Less: debt securities listed outside Hong Kong classified as current assets (444,983) (194,761) loan receivables classified as current assets (13,540) (13,639) other financial assets measured at FVPL as current assets (5,199) (7,577) Other financial assets classified as current assets 463,722 215,977 Other financial assets classified as non-current assets 1,267,029 1,716,285 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 $91,454,000 (2022: $64,861,000) were declared on these investments during the year. (ii) During the year, expected credit loss of HK$260,000,000 (2022: HK$92,000,000) was recognised to reflect increases in credit risk for the investments in financial assets measured at FVOCI (recycling) in accordance with note 1(n)(i). 21 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 2023 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 262% (2022: 246%) covered by the plan assets held by the trustee.