NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 41 FINANCIAL INSTRUMENTS (CONT’D) (i) Credit risk (cont’d) Debt investments The exposure to credit risk for debt investments at the reporting date by geographic region was as follows: At amortised cost Gross amount Lifetime ECL (credit impaired) Carrying amount $’000 $’000 $’000 2025 China 295,458 (295,458) – 2024 China 312,501 (312,501) – Guarantees The Group has issued guarantees to certain banks in respect of credit facilities granted to buyers of a development property in China as at 31 December 2025 and 31 December 2024. These guarantees are subject to the impairment assessment under SFRS(I) 9. Management continually monitors the credit risk and considers events such as default on instalment payments by buyers and performs credit evaluation on the associate. As at reporting date, the Group did not recognise any liabilities in respect of the financial granted in view of the remote default risk. Derivatives Derivatives are only entered into with bank and financial institution counterparties with sound credit ratings. Cash and cash equivalents The cash and cash equivalents are held with bank and financial institution counterparties with sound credit ratings. Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on cash and cash equivalents as at 31 December 2025 and 31 December 2024 was negligible. (ii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group monitors its liquidity risk and maintains a level of cash and cash equivalents and credit facilities deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. As at the reporting date, the Group has provided financial guarantees in favour of buyers of overseas development properties. As at the reporting date, the maximum of the Group’s exposure in respect of the financial guarantees issued was $1.7 million (2024: $2.2 million). ANNUAL REPORT 2025 | 199
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