Notes to the Financial Statements Notes to the Financial Statements For the financial year ended 31 December 2025 For the financial year ended 31 December 2025 These notes form an integral part of the financial statements. The financial statements were authorised by the Board of Directors on 20 March 2026. 1. DOMICILE AND ACTIVITIES Perennial Holdings Private Limited (the “Company”) is a company incorporated in the Republic of Singapore and has its registered address at 28 Biopolis Road, #02-01, Singapore 138568. The consolidated financial statements as at and for the year ended 31 December 2025 comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) and the Group’s interest in equityaccounted investees. The principal activities of the Group are those of investment holding, real estate investment and development, asset and property management services, healthcare services and hospitality services. The Company’s immediate and ultimate holding company is Perennial Group Private Limited, a company incorporated in the Republic of Singapore. 2. GOING CONCERN As at 31 December 2025, the Group’s total current liabilities exceeded its total current assets by $276.8 million (2024: $545.2 million) and has capital commitments amounting to $584.5 million (2024: $667.8 million) (Note 28). The financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet its funding requirements and to refinance or repay its borrowing obligations as and when they fall due. The Group’s ability to settle its liabilities as and when they are due for settlement within the next twelve months is highly dependent on its ability to obtain new credit facilities, refinance its existing borrowing obligations or divest its assets as part of its capital recycling strategy. The Group had put in place a $2 billion multicurrency debt issuance programme established on 22 January 2015. As at the date of these financial statements, the uncommitted facilities available to the Group under the programme amounted to $1,622.3 million. As of the date of these financial statements, the Group has $679.5 million in unutilised committed facilities available. Management believes that the refinancing or repayment of the Group’s borrowing obligations will occur as required. Management anticipates that any additional cash required will be met out of operating cash flows or from alternative forms of capital raised such as further asset sales or new loan or debt facilities. In addition, management does not consider that it is probable that a claim will be made against the Group under the financial guarantee contracts issued to certain financial institutions in respect of banking facilities drawn by certain of its subsidiaries or a joint venture. Management acknowledges that uncertainties remain over the ability of the Group to meet its funding requirements and to refinance or repay its borrowing obligations as and when they fall due. However, as described above, management has a reasonable expectation that the Group is able to continue in operational existence for the foreseeable future. If for any reason the Group is unable to continue as a going concern, then this could have an impact on the Group’s ability to realise assets at their recognised values and to extinguish liabilities in the normal course of business at the amounts stated in the consolidated financial statements. 3. BASIS OF PREPARATION 3.1 Statement of compliance The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (International) (“SFRS(I)”). 3.2 Basis of measurement The financial statements have been prepared on the historical cost basis except as otherwise described in the notes below. 3.3 Functional and presentation currency The financial statements are presented in Singapore dollars (“$”), which is the Company’s functional currency. All financial information presented in Singapore dollars have been rounded to the nearest thousand, unless otherwise stated. 3.4 Use of estimates and judgements The preparation of the financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions about the future that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with Group’s risk management where appropriate. Revisions to accounting estimates are recognised prospectively. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: Notes 4.6 and 6 – Classification of investment properties Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of resulting in material adjustment to the carrying amounts of assets and liabilities within the next financial year are included in the following notes: Note 6 – Determination of fair value of investment properties Note 8 – Impairment test: key assumptions underlying recoverable amounts of cash-generating unit (“CGU”) containing goodwill Note 10 – Determination of net realisable value of development properties Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as property valuations, broker quotes or pricing services, is used to measure fair values, then the management assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of SFRS(I), including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation matters are reported to the Group’s Board of Directors. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 177 176 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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