13. INVESTMENTS IN ASSOCIATES Group Company 2025 2024 2025 2024 $’000 $’000 $’000 $’000 Unquoted equity shares, at cost 83,178 13,655 7,123 7,123 Share of reserves of associates, net of dividend received and tax (75,978) (66,081) – – Amounts due from associates – interest bearing 15,868 84,924 – – – interest free 1,233 1,199 – – – loss allowance on amount due from associates (400) (4,000) – – 16,701 82,123 – – Less: elimination of unrealised profit (6,763) (7,235) – – Currency realignment 3,761 4,018 – – Carrying amount 20,899 26,480 7,123 7,123 The amounts due from associates form part of the Group’s net investment in associates. These loans are unsecured and settlement is neither planned nor likely to occur in the foreseeable future. As of 30 September 2025, the carrying amount of the Group’s investment in Pristine Islands Investment Pte Ltd (“PIIPL Group”) was approximately $15,968,000 (2024: $20,927,000). Pursuant to a resolution of the Board dated 30 September 2025, the Group and the other shareholder agreed to capitalise their shareholder loans into equity on a pro-rata basis. Accordingly, PIIPL Group issued 109,876,408 new ordinary shares for consideration of USD109,876,408, which 56,036,968 shares were allocated to the other shareholder and 53,839,440 shares to KHC. Following the capitalisation, the Group’s equity interest in PIIPL Group remained at approximately 49%, and the investment continued to be accounted for as an associate. On conversion, the portion of amount due from PIIPL Group of $69,523,000 was reclassified from “Amount due from associate” to “Unquoted equity shares, at cost”. This is a non-cash transaction. The amounts due from associates are non-trade in nature, unsecured and non-interest bearing except for an amount of $15,868,000 (2024: $84,924,000) which bears effective interest rate of 8% (2024: 9%) per annum. The amounts due from associates are denominated in the following currency: 2025 2024 $’000 $’000 United States dollar 17,101 86,123 Movements in the allowance for impairment loss and loss allowance are as follows: 2025 2024 $’000 $’000 Balance at beginning of financial year 4,000 42,080 Reclassification to non-current assets held for sale (Note 20) – (14,795) Reversal of impairment loss – (27,285) (Reversal)/Provision of loss allowance (3,600) 4,000 Balance at end of financial year 400 4,000 The Group assessed the recoverable amount of its investment in the PIIPL Group based on fair value less costs of disposal (“FVLCD”), as the resort’s operating performance has yet to recover to pre-pandemic levels. The recoverable amount was determined to be $43,644,000 (2024: $40,400,000). Based on this assessment, no impairment was recognised in the current financial year (2024: reversal of impairment of $27,285,000). The FVLCD measurement was based on a valuation prepared by an independent external valuer engaged by management using the Revalued Net Asset Value (“RNAV”) approach. The valuation range comprised a high RNAV scenario, based on discounting the expected shareholder repayment over a 10-year period at 8%, with no additional adjustment and a low RNAV scenario based on discounting the same expected shareholder repayment over a 5-year period at 8%, with a further 5% downward adjustment applied to reflect the lower bound of the valuation range. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 94 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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