Page 137 - URA Annual Report 2020-21

(expressed in Hong Kong Dollars)
3. Financial risk management and fair value of financial instruments (Continued)
(a) Financial risk factors (Continued)
(iii) Liquidity risk (Continued)
Less than 1 year
Trade and other payables
Amounts due to joint development projects Debt securities issued
Between 1 to 3 years
Trade and other payables Debt securities issued
Between 3 to 5 years
Trade and other payables Debt securities issued
Over 5 years
Trade and other payables Debt securities issued
(iv) Foreign exchange risk
2021 $’000
2,698,974 243,545 32,222
61,009 653,168
14,920 538,447
343,160 -
2020 $’000
3,018,396 120,474 745,285
70,556 364,462
19,434 340,125
343,160 519,250
The Group has certain cash and bank balances and investments denominated in United States Dollars (“USD”), which are exposed to foreign currency risk. When the exchange rates of USD against the Hong Kong dollar fluctuate, the value of the USD-denominated cash and bank balances and investments translated into Hong Kong dollar will vary accordingly.
Foreign exchange risk sensitivity
There would have no significant effect on the surplus of the Group resulting from the foreign exchange gains/losses on translation of USD-denominated cash and bank balances and investments as the Group currently considered the risk of movements in exchange rates between the Hong Kong dollars and USD to be insignificant.
(b) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to promote urban renewal in Hong Kong by way of redevelopment, rehabilitation, revitalisation and heritage preservation.
The Group’s working capital is mainly financed by the Government’s equity injection, accumulated surplus and debt securities issued. The Group also maintains credit facilities to ensure the availability of funding when needed.
URA ANNUAL REPORT 2020-21 133