12. INVESTMENTS IN SUBSIDIARIES (CONTINUED) Movements in the allowance for impairment loss are as follows: Company 2025 2024 $’000 $’000 At beginning of financial year 3,708 3,708 Reversal of impairment loss (369) – At end of the financial year 3,339 3,708 The amounts due from subsidiaries form part of the Company’s net investment in subsidiaries. These loans are unsecured, has no fixed repayment terms and is repayable only when the cashflows of the subsidiary permit. During the financial year, the Company reviewed the recoverable amounts of its investments in subsidiaries. Following the strike-off of certain subsidiaries, the review led to a reversal of impairment loss of $369,000 (2024: $Nil). The reversal reflects the adjustment of the carrying amount of these investments in subsidiaries to their recoverable amount of $369,000, determined based on fair value less costs of disposal, which management is of the opinion that it approximate to the subsidiaries’ net tangible assets. The details of the subsidiaries are as follows: Name of company (Country of incorporation and principal place of business) Principal activities Proportion of ownership interest held by the Group 2025 2024 % % Held by the Company Keong Hong Construction Pte Ltd(1) (“KHC”) (Singapore) General and building contractors 100 100 KH Capital Pte Ltd(1) (Singapore) Investment holdings and trading of building construction materials 100 100 K.H. Land Pte Ltd(1) (“KHL”) (Singapore) Investment holding, real estate development and building construction 100 100 Grandwood Holdings Pte Ltd(1)(4) (Singapore) Investment holding 100 100 Held by K.H. Land Pte Ltd KHA Resorts & Hotels Construction Pvt Ltd(2) (Cayman Islands) Hotel building contractors 100 100 KHA Resorts & Hotels Construction (Maldives) Pvt Ltd(2)(3) (“KHAM”) (Republic of Maldives) Hotel building contractors 100 100 Held by Grandwood Holdings Pte. Ltd. Grandwood (Japan) Pte Ltd(1)(4) (Singapore) Investment holding 100 100 (1) Audited by Forvis Mazars LLP, Singapore. (2) Audited by Ernst & Young, Maldives. (3) Proportion of ownership interest of 5% (2024: 5%) held by KHC. (4) ACRA has issued Section 344A letters dated 30 September 2025 to Grandwood (Japan) Pte. Ltd. (“GWJ”) and Grandwood Holdings Pte. Ltd. (“GWH”) informing that striking-off applications had been initiated. Subsequently, both companies were struck off on 2 January 2026. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 93 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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