Construction Industry Council - Annual Report 2024

CONSTRUCTION INDUSTRY COUNCIL 220 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 15. EQUITY INSTRUMENTS AT FVTOCI 2024 2023 HK$ HK$ Equity securities listed on the Stock Exchange of Hong Kong, at fair value 7,025,567 7,855,154 Note: The above listed equity investments represent ordinary shares of entities listed in Stock Exchange of Hong Kong. These investments are not held for trading, instead, they are held for long-term strategic purposes. The Council members have elected to designate these investments in equity instruments as at FVTOCI as they believe that recognising short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes and realising their performance potential in the long run. On disposal of these equity investments, any related balance within the investment revaluation reserve is reclassified to accumulated fund. 16. LEVY RECEIVABLES 2024 2023 HK$ HK$ Levy receivables 163,606,263 112,126,544 Less: loss allowance (52,963,173) (9,086,950) 110,643,090 103,039,594 All levy receivables are expected to be recovered within one year. The average credit period on levy receivables granted to the contractors is 28 days (2023: 28 days) after the date of the notice of assessment. No penalty is imposed on the contractor for the specified period of 28 days. Thereafter, penalty is imposed at 5% of the unpaid amount. If the amount of the levy or surcharge, including any penalty imposed remains unpaid within three months after the expiry of the specified period, a further penalty of 5% of the unpaid amount will be imposed on the outstanding balance. The Group would provide fully for all long outstanding receivables, having considered, inter alia, the likelihood of recoverability based on historical experience. As at 31 December 2024, included in the Group’s levy receivables balances are receivables with a carrying amount of HK$8,002,401 (2023: HK$17,812,176) which were past due at the end of the reporting period for which the Group had not provided for any impairment loss as there has not been a significant change in credit quality and the amounts are still considered recoverable.