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Financial Instruments (Tables)

12 Months Ended

Apr. 30, 2023

Summary of Categories of financial instruments

Categories of financial instruments


	2022		2023
	US$		US$
Financial assets
Financial assets at FVTPL		19,130		14,413
Amortized cost		376,986		328,024

Financial liabilities
Amortized cost		4,304		123,780

Summary of entity internal credit risk grading assessment

The Group’s internal credit risk grading assessment comprises the following categories:


Internal credit rating	Description	Commission receivable from digital solutions services—financial services, accounts receivable arising from digital solutions services—non financial services and accounts receivable from hotel operations, hospitality and VIP services	Other financial assets

Normal risk	The counterparty has a low risk of default and usually settled within credit period	Lifetime ECL-not credit-impaired	12-month ECL

Doubtful	There have been significant increases in credit risk since initial recognition through information developed internally or external resources	Lifetime ECL-not credit-impaired	Lifetime ECL-not credit-impaired

Loss	There is evidence indicating the asset is credit-impaired	Lifetime ECL-credit-impaired	Lifetime ECL-credit-impaired

Write-off	There is evidence indicating that the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery	Amount is written off	Amount is written off

Summary of credit risk exposures of the financial assets, which are subject to ECL assessment

The table below details the credit risk exposures of the Group’s financial assets, which are subject to ECL assessment:


	Notes	Internal credit rating	12m ECL or lifetime ECL	2022 Gross carrying amount		2023 Gross carrying amount
				US$		US$
Financial assets at amortized costs
Commission receivable from digital solutions services—financial services	21	(Note)	Lifetime ECL (provision matrix)		201		274
Accounts receivable arising from digital solutions services—non financial services	21	(Note)	Lifetime ECL - not credit-impaired		4,838		8,541
Accounts receivable from hotel operations, hospitality and VIP services	21	(Note)	Lifetime ECL (provision matrix)		—		988
Consideration receivables	21	Normal risk	12-month ECL		32,520		—
Deposits	21	Normal risk	12-month ECL		—		141
Note receivables	21	Normal risk	12-month ECL		677		150
Other receivables	21	Normal risk	12-month ECL		1,488		6,886
Amounts due from joint ventures	16	Normal risk	12-month ECL		—		30,346
Amount due from AMTD Group	30	Normal risk	12-month ECL		321,438		126,444
Amount due from a non-controlling shareholder	30	Normal risk	12-month ECL		—		539
Cash and cash equivalents		Aa3	12-month ECL		14,337		152,930
Fiduciary bank balances		Normal risk	12-month ECL		1,487		785

					376,986		328,024

Note:

For commission receivable from digital solutions services—financial services, accounts receivable arising from digital solutions services—non financial services and accounts receivable from hotel operations, hospitality and VIP services, the Group has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL. The Group determines the ECL on commission receivable from digital solutions services—financial services and accounts receivable from hotel operations, hospitality and VIP services on a collective basis, grouped by internal credit rating. For accounts receivable arising from digital solutions services—non financial services, the ECL is assessed on an individual basis.

The previously written off accounts receivable amounting to US$20 and US$2 had been recovered during the year ended April 30, 2022 and 2023, respectively.

The expected credit losses as at April 30, 2022 and 2023 were insignificant and no loss allowance was provided.

Summary of Maturity analysis for Nonderivative Financial Liabilities

The following table details the Group’s remaining contractual maturity for its financial liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group may be required to pay. The maturity dates for

non-derivative

financial liabilities are based on the agreed repayment dates.

Liquidity tables



	Weighted average interest rate		On demand or less than 1 year		Total undiscounted cash flows		Carrying amount
			US$		US$		US$
At April 30, 2022
Accounts payable		—		10		10		10
Clients’ monies held on trust		—		847		847		847
Other payables and accruals		—		3,447		3,447		3,447

				4,304		4,304		4,304



	Weighted average interest rate		On demand or less than 1 year		Total undiscounted cash flows		Carrying amount
			US$		US$		US$
At April 30, 2023
Accounts payable		—		493		493		493
Clients’ monies held on trust		—		428		428		428
Other payables and accruals		—		3,253		3,253		3,253
Interest bearing bank borrowings		7.6%		66,764		66,764		65,803
Interest bearing amount due to a non-controlling shareholder		5.3%		34,283		34,283		33,122
Non-interest bearing amount due to a non-controlling shareholder		—		20,681		20,681		20,681

				125,902		125,902		123,780

Summary of financial assets that are measured at fair value on a recurring basis

(i)

Fair value of the Group’s financial assets that are measured at fair value on a recurring basis

The Group’s investments in private equity are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets are determined (in particular, the valuation technique(s) and inputs used).

Financial assets

Fair value as at

Fair value

hierarchy

Valuation technique(s)

and key inputs

Significant

unobservable input(s)

2022

2023

US$

Financial assets at FVTPL - unlisted equity securities

488

489

Level 2

The fair values of unlisted equity investments are determined with reference to the recent transaction price of the investments.

N/A

10,603

—

Level 3

Market approach - the option pricing model (“OPM”) backsolve approach was used to calculate the implied equity value of the investee. Once an overall equity value was determined, amounts were allocated to the various classes of equity based on the security

Expected volatility ranged from 57.4% to 68.6% as at April 30, 2022, respectively, taking into account peer companies’ volatility used by market participants when pricing the investment (note (i)).

Financial assets

Fair value as at

Fair value

hierarchy

Valuation technique(s)

and key inputs

Significant

unobservable input(s)

2022

2023

US$

class preferences. The inputs to the OPM backsolve approach are the recent transaction price for capital structure, probability of IPO, redemption and liquidation, the risk-free interest rate and expected volatility.

Movie income right investments

8,039

13,924

Level 3

Income approach - in this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the investments in these movie income right investments, based on an appropriate discount rate.

Discount rate, taking

into account weighted

average cost of capital

determined

using a Capital Asset

Pricing Model ranged

from

10.40

% to

12.59

% and

10.40

% to

13.67

% as at April 30, 2022 and 2023

(note (ii)) and expected ticket sales performance and expected movie production costs.

Notes:

(i)

A change in the expected volatility used in isolation would result in a change in the fair value of the private equity investments. A 5% increase/(decrease) in the expected volatility holding all other variables constant would result in a net (decrease)/increase in the carrying amount of the private equity investments by (US$108)/US$102 as at April 30, 2022.

(ii)

A 5% increase/(decrease) in the discount rate holding all other variables constant would (decrease)/increase the carrying amount of the movie income right investments by (US$603)/US$

691

and (US$529)/US$60 as at April 30, 2022 and 2023, respectively.

Summary of Reconciliation of Level 3 fair value measurements

Reconciliation of Level 3 fair value measurements


	Unlisted investments classified as equity instruments at FVTPL			Movie income right investments			Total
	US$			US$			US$
At May 1, 2021		26,126			10,445			36,571
Total gains in profit or loss		16,564			371			16,935
Transfer from Level 2 to Level 3		796			—			796
Receipt of investment return		—			(2,681	)		(2,681	)
Disposals		(32,712	)		—			(32,712	)
Exchange realignment		(171	)		(96	)		(267	)

At April 30, 2022		10,603			8,039			18,642
Total gains in profit or los s		15,036			350			15,386
New investment		—			5,545			5,545
Disposals		(25,650	)		—			(25,650	)
Exchange realignment		11			(10	)		1

At April 30, 2023		—			13,924			13,924