2018E — Page 158

156

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

24 FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL

INSTRUMENTS (Continued)

25

(d) Equity price risk (Continued)

Sensitivity analysis (Continued)

The sensitivity analysis indicates the instantaneous change in the Group's profit after tax (and retained profits) and other components of consolidated equity that would arise assuming that the changes in the stock market index or other relevant risk variables had occurred at the end of the reporting period and had been applied to re-measure those financial instruments held by the Group which expose the Group to equity price risk at the end of the reporting period. It is also assumed that none of the Group's other financial assets would be considered impaired as a result of the decrease in the relevant stock market index or other relevant risk

variables, and that all other variables remain constant.

(e) Fair value measurement

(i)

(ii)

Financial assets measured at fair value

Fair value hierarchy

The fair value of the Group's financial instruments measured at the end of the reporting period on a recurring basis, categorized into the three-level fair value hierarchy as defined in HKFRS 13, Fair value

measurement.

The fair value measurements of the Group's financial assets as at 31 December 2018 and 31 December 2017 are categorised into Level 1. During the year ended 31 December 2018, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3 (2017: Nil). The Group's policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.

Fair values of financial assets and liabilities carried at other than fair value

The carrying amounts of the Group's financial instruments carried at cost or amortised cost are not materially different from their fair values as at 31 December 2018 and 2017.

OPERATING LEASE COMMITMENTS

At 31 December 2018, the total future minimum lease payments under non-cancellable operating leases are payable as follows:

Within 1 year

After 1 year but within 5 years

2018

HK$'000

2017

HK$'000

1,420

2,141

78

1,399

1,498

3,540

The Group leases a number of retail outlets and offices under operating leases. The leases typically run for an initial period of one to three years. Lease payments are usually fixed during the period of the leases. None of the leases includes contingent rentals.

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2018