8. INCOME TAX EXPENSE (CONTINUED) The income tax expense varied from the amount of income tax expense determined by applying the applicable income tax rate of 17% (2024: 17%) to profit/(loss) before income tax as a result of the following differences: Group 2025 2024 $’000 $’000 Profit/(Loss) before income tax 10,154 (3,916) Add/(Less): Share of result of joint ventures (85) (44) Share of result of associates 9,897 10,642 19,966 6,682 Income tax calculated at applicable income tax rate of 17% (2024: 17%) 3,394 1,136 Effect of different tax rate in other countries (11) 62 Tax effect of income not subject to income tax (4,491) (5,081) Tax effect of expenses not deductible for income tax purposes 705 2,408 Unrecognised deferred tax assets 403 1,475 – – Unrecognised deferred tax assets Group 2025 2024 $’000 $’000 Balance at beginning of financial year 7,124 5,649 Amount not recognised during the financial year 403 1,475 Balance at end of financial year 7,527 7,124 Unrecognised deferred tax assets are attributable to: Group 2025 2024 $’000 $’000 Unutilised tax losses 7,187 6,027 Unutilised capital allowance 186 176 Others 154 921 7,527 7,124 As at 30 September 2025, the Group has unutilised tax losses amounting to approximately $42,276,000 (2024: $35,453,000) available for set-off against future taxable profits subject to agreement with the tax authorities and compliance with certain provisions of the tax legislation of the respective countries in which the companies operate. Deferred tax assets have not been recognised as there is no certainty that there will be sufficient future taxable profits in the Group to realise these future benefits. Accordingly, the deferred tax assets have not been recognised in the financial statements in accordance with the accounting policy in Note 2.9 to the financial statements. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 90 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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