NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 41 FINANCIAL INSTRUMENTS (CONT’D) (iii) Market risk (cont’d) Equity price risk (cont’d) Equity investments Increase by 5% Decrease by 5% Increase by 5% Decrease by 5% Group Group Company Company $’000 $’000 $’000 $’000 2025 Quoted equity investments at FVOCI and FVTPL Equity 5,776 (5,776) 1,199 (1,199) Profit before tax 372 (372) 111 (111) Unquoted equity investments at FVOCI and FVTPL Equity 23,608 (23,608) 22,344 (22,344) Profit before tax 10,084 (10,084) – – 2024 Quoted equity investments at FVOCI and FVTPL Equity 5,774 (5,774) 1,130 (1,130) Profit before tax 346 (346) 72 (72) Unquoted equity investments at FVOCI and FVTPL Equity 20,815 (20,815) 19,707 (19,707) Profit before tax 12,311 (12,311) – – (iv) Hedge accounting Net investment hedges A foreign currency exposure arises from the Group’s net investments in subsidiaries that have a different functional currency from that of the Company. The risk arises from the fluctuation in spot exchange rates between the functional currency of the subsidiaries and the Company’s functional currency, which causes the amount of the net investments to vary in the consolidated financial statements of the Group. The hedged risk in the net investment hedges is the risk of a weakening of the United States Dollar, Euro and Reminbi (2024: United States Dollar, Euro and Reminbi) against Singapore Dollar that will result in a reduction in the carrying amount of the Group’s net investments in subsidiaries. An economic relationship exists between the hedged net investment and hedging instrument due to the shared foreign currency risk exposure. ANNUAL REPORT 2025 | 211
RkJQdWJsaXNoZXIy ODIwNTc=