28. FINANCIAL ASSETS/(LIABILITIES) AT FAIR VALUE THROUGH PROFIT OR LOSS Group Company 2025 2024 2025 2024 $ $ $ $ Forward foreign exchange contracts Balance at beginning of year 36,239 (50,864) (567) – Realisation of forward contracts (36,560) 50,864 567 – Currency translation differences 237 (28) – – Unrealised fair value loss (Note 5) (21,469) (8,690) – (567) Unrealised fair value gains (Note 4) 497 44,957 – – Balance at end of year (21,056) 36,239 – (567) Presented in statements of financial position as: Financial assets at FVTPL (Note 19) 499 44,923 – – Financial liabilities at FVTPL (21,555) (8,684) – (567) Net (21,056) 36,239 – (567) Forward foreign exchange contracts are entered into to manage exposure to fluctuations in foreign currency exchange rates on expected sales and purchases denominated in United States Dollar (“USD”) and Euro (“Euro”). The table below sets out the notional principal amounts of the outstanding forward foreign exchange contracts of the Group and the Company, and their corresponding favourable and unfavourable fair values (Level 2) at the reporting date. The amount of notional amount outstanding is not necessarily a measure or indication of market risk. Notional principal Favourable fair value Unfavourable fair value 2025 2024 2025 2024 2025 2024 $ $ $ $ $ $ Group Purchase Euro 831,301 902,398 123 – (3,666) (7,979) Purchase USD 1,738,451 2,018,933 376 44,923 (17,889) (705) 2,569,752 2,921,331 499 44,923 (21,555) (8,684) 2025 2024 2025 2024 2025 2024 $ $ $ $ $ $ Company Purchase USD – 272,140 – – – (567) – 272,140 – – – (567) The fair value (Level 2) of forward foreign exchange contracts is based on the current value of the difference between the contractual exchange rate and the market rate at the end of the reporting year. The valuation technique uses market observable inputs. At 31 December 2025, the settlement date on forward foreign exchange contracts for the Group and the Company ranges from 1 to 4 months (2024: 1 to 3 months) and Nil months (2024: 3 months) respectively. MEGACHEM LIMITED ANNUAL REPORT 2025 162 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025
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