Construction Industry Council - Annual Report 2024

ANNUAL REPORT 2024 229 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Group only invests in debt securities with low credit risk. The Group’s debt instruments at amortised cost are bonds issued by corporations that are graded by the top credit rating among rating agencies. Therefore, these investments are considered to be low credit risk investments and the loss allowance is assessed on 12m ECL basis. The Group’s bank balances are deposited with banks with high credit ratings and therefore the credit risk of these bank balances is low and the loss allowance is assessed on 12m ECL basis. The Council members consider that no additional provision for the above items has to be made as it is immaterial. Other than concentration of credit risk on liquid funds which are deposited with several banks with high credit rating and the investments in the debt instruments at amortised cost, the Group has no significant concentration of credit risk, with exposure spread over a number of counterparties. Liquidity risk Ultimate responsibility for liquidity risk management rests with the Council, which has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity requirements. The Group managed liquidity risk by continuously monitoring forecast and actual cash flows. The following table details the remaining contractual maturities at the end of the reporting period of the non-derivative financial liabilities, which are based on the contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on rates current at the reporting date) and the earliest date the Group can be required to pay. Total More than Weighted contractual Within 1 year but Average Carrying undiscounted 1 year or less than Interest rate amounts cash flows on demand 5 years HK$ HK$ HK$ HK$ 2024 Accounts and other payables – 158,475,876 158,475,876 158,475,876 – Construction Innovation and Technology Fund – 1,698,015,237 1,698,015,237 1,698,015,237 – Lease liabilities 2.2% 18,331,835 18,867,588 7,347,195 11,520,393 1,874,822,948 1,875,358,701 1,863,838,308 11,520,393 2023 Accounts and other payables – 105,116,943 105,116,943 105,116,943 – Construction Innovation and Technology Fund – 1,808,033,646 1,808,033,646 1,808,033,646 – Lease liabilities 2.2% 9,023,801 9,198,179 6,400,385 2,797,794 1,922,174,390 1,922,348,768 1,919,550,974 2,797,794