Annual Report 2024

261 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) (f) Fair values measurement (continued) (ii) Valuation techniques and inputs used in Level 2 fair value measurement The fair values of forward foreign exchange contracts as at 31 December 2024 and 2023 in Level 2 were marked to market using quoted market prices from financial institutions. (iii) Information about Level 3 fair value measurement Valuation technique Significant unobservable inputs Percentage Unlisted equity securities Market comparable companies Discount for lack of marketability 35% (2023: 35%) The fair value of unlisted equity securities is determined using the market approach of comparable companies adjusted for lack of marketability discount. The fair value measurement is negatively correlated to the discount for lack of marketability. As at 31 December 2024, it is estimated that with all other variables held constant, a decrease/ increase in the discount for lack of marketability by 5 percentage points would have increased/decreased the Group’s other comprehensive income by $76,775,000 (2023: $79,513,000). The movement during the year in the balance of Level 3 fair value measurement is as follows: 2024 2023 $’000 $’000 Unlisted equity securities: At 1 January 1,033,669 1,017,187 Fair value (losses)/gains recognised in other comprehensive income during the year (35,594) 16,482 At 31 December 998,075 1,033,669 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. (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 2024 and 2023. 34 Contingent liabilities At 31 December 2024 and 2023, 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 $2,607,500,000 (2023: $2,890,000,000). 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.