Page 136 - Urban Renewal Authority 2023-24 Annual Report

NOTES TO THE FINANCIAL STATEMENTS

(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)

2024 2023

$’000 $’000
Less than 1 year
Trade and other payables 2,214,926 2,234,790
Amounts due to joint development projects 256,653 244,404
Debt securities issued 19,197 320,928

Between 1 to 3 years
Trade and other payables 56,132 36,203
Debt securities issued 519,250 538,447

Between 3 to 5 years
Trade and other payables 14,920 14,920

Over 5 years
Trade and other payables 330,862 334,506

(iv) Foreign exchange risk
The Group has certain cash and bank balances and investments denominated in foreign
currencies, which are exposed to foreign currency risk. When the exchange rates of foreign
currencies against the Hong Kong dollar fluctuate, the value of the cash and bank balances and
investments denominated in foreign currencies translated into Hong Kong dollar will vary
accordingly.

Foreign exchange risk sensitivity
As at 31 March 2024, if Hong Kong dollar had weakened/strengthened by 1% against foreign
currencies with all other variables held constant, the deficit of the Group would increase/
decrease by approximately $11,390,000 (2022/23: $15,969,000) resulting from the foreign
exchange gains/losses on translation of cash and bank balances and investments denominated
in foreign currencies.

(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, retrofitting, 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.

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