34. FINANCIAL INSTRUMENTS AND FINANCIAL RISKS (CONTINUED) Credit risk (Continued) Trade receivables and contract assets (Continued) The following table provides information about the exposure to credit loss for trade receivables and contract assets as at the end of reporting period: Group Expected credit loss rates Gross carrying amount Loss allowance Carrying amount $’000 $’000 $’000 2025 Trade receivables Not past due 0% 4,283 – 4,283 Past due but not impaired – less than 1 month 0% 428 – 428 – 1 to 3 months 0% 44 – 44 – 3 to 6 months 0% 115 – 115 – over 6 months 6% 4,672 (305) 4,367 Contract assets Not past due 4% 34,641 (1,474) 33,167 44,183 (1,779) 42,404 2024 Trade receivables Not past due 0% 17,700 – 17,700 Past due but not impaired – less than 1 month 0% 66 – 66 – 1 to 3 months 0% 303 – 303 – 3 to 6 months 0% 103 – 103 – over 6 months 7% 4,230 (302) 3,928 Contract assets Not past due 7% 30,875 (2,121) 28,754 53,277 (2,423) 50,854 A loss allowance of $1,779,000 (2024: $2,423,000) related to trade receivables and contract assets was recognised for trade receivables and contract assets. Management believes that no impairment allowance is necessary for the remaining trade receivables and contract assets as these are well known customer and government agencies, with good collection track record and no recent history of default, hence the expected credit loss is not material. Retention sum The Group’s impaired retention sum as at 30 September 2025 amounted to $3,693,000 (2024: $3,669,000). The impaired retention sum related to customers who had indicated that they were not likely to repay the outstanding balances due to economic circumstances or who have defaulted in payment terms. The Group has assessed expected credit loss allowance for remaining retention sum based on 12-month expected credit loss model. Management is of the view that loss allowance on remaining retention sum is insignificant. Non-trade amounts due from third parties The Group has assessed expected credit loss for non-trade amounts due from third parties based on 12-month expected credit loss model. The expected credit loss of these receivables is recognised at $1,722,000 (2024: $1,720,000). ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 120 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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