34. FINANCIAL INSTRUMENTS AND FINANCIAL RISKS (CONTINUED) Market risk (Continued) (i) Equity prices (Continued) Equity price sensitivity analysis (Continued) In respect of quoted equity investments carried at FVTOCI, if the prices for equity securities listed on the Catalist Board of the Singapore Exchange Securities Trading Limited had been 34% (2024: 33%) higher or lower with all other variables including tax rate being held constant, the effects on loss after tax and other comprehensive income would be as follows: – The Group’s net profit/(loss) for the financial years ended 30 September 2025 and 30 September 2024 would have been unaffected as the equity investments are classified as financial assets at FVTOCI and no investments were disposed of or impaired; and – The Group’s fair value reserves would increase or decrease by $759,000 (2024: $776,000). The equity price sensitivity analysis for unquoted equity investments carried at FVTOCI is disclosed in Note 36. (ii) Foreign exchange risk management Currency risk arises from transactions denominated in currency other than the functional currency of the entities within the Group. The currencies that give rise to this risk are primarily United States dollar, Malaysian Ringgit and Maldives rufiyaa. It is not the Group’s policy to take speculative positions in foreign currency. At the end of the reporting period, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other than the functional currency of the entities within the Group are as follows: Assets Liabilities 2025 2024 2025 2024 $’000 $’000 $’000 $’000 United States dollar 55,942 120,002 626 609 Malaysian Ringgit 1 1 – – Maldives rufiyaa 65 314 – – The Group has foreign operations, whose net assets are exposed to currency translation risk. The Group does not currently designate its foreign currency denominated debt as a hedging instrument for the purpose of hedging the translation of its foreign operations. Exposure to foreign currency risk is monitored on an ongoing basis in accordance with the Group’s risk management policies to ensure that the net exposure is at an acceptable level. Foreign currency sensitivity analysis The following table details the sensitivity to a 5% (2024: 5%) increase and decrease in the relevant foreign currencies against the functional currency of the entities within the Group. The 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents the management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 5% (2024: 5%) change in foreign currency rates. The sensitivity analysis includes loans to foreign operations within the Group where they gave rise to an impact to the Group’s profit or loss. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 122 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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