Notes to the Financial Statements For the financial year ended 31 December 2025 Notes to the Financial Statements For the financial year ended 31 December 2025 7. ASSOCIATES AND JOINT VENTURES Group 2025 2024 $’000 $’000 Interests in associates 42,395 42,265 Interests in joint ventures 2,378,663 2,311,114 Loans to joint ventures 92,398 160,094 2,513,456 2,513,473 Loans to joint ventures are classified as financial assets at amortised cost. There is no allowance for impairment losses arising from these loans as the ECL is insignificant. Loans to joint ventures consist of the followings: (i) Loans of $65.0 million (2024: $132.7 million), which are unsecured, interest-free and have no fixed terms of repayment. During 2025, $97.1 million was converted into redeemable preference shares on 26 May 2025; and (ii) Loan of $27.4 million (2024: $27.4 million), which is unsecured, bears interest at 1.35% per annum and repayable not later than 18 February 2031. The settlement of loans that have no fixed terms of repayment are neither planned nor likely to occur in the foreseeable future and hence the loans are classified as non-current. Associates The Group has 1 (2024: 1) associate that is material and a number of associates that are individually immaterial to the Group. The material associate own commercial and retail related real estate asset which is aligned to the Group’s principal activities. All associates are equity-accounted. The following is information relating to the associate that is material to the Group: Name of associate Principal activities Country of incorporation Ownership interests held by the Group 2025 2024 % % PRE 7 Pte. Ltd. and its subsidiaries (“PRE 7”) Investment and property holding Singapore 51.6 51.6 Although the Group held more than 50% of the ownership interest in PRE 7, it has considered that it does not control the entity and merely exercises significant influence through its representation on the Board of Directors of PRE 7. 7 ASSOCIATES AND JOINT VENTURES (continued) Changes in interest in associate The following summarises the financial information of each of the Group’s material associate based on their respective (consolidated) financial statements prepared in accordance with SFRS(I), modified for fair value adjustments on acquisition and differences in the Group’s accounting policies. The table also analyses, in aggregate, the carrying amount and share of profit or loss and OCI of the remaining individually immaterial associates. PRE 7 Immaterial associates Total $’000 $’000 $’000 31 December 2025 Revenue 17,214 Profit after tax 703 OCI – Total comprehensive income 703 Attributable to associate’s shareholders 703 Non-current assets 464,557 Current assets 18,428 Non-current liabilities (341,307) Current liabilities (16,010) Net assets 125,668 Attributable to associate’s shareholders 125,668 Group’s interest in net assets of associate at beginning of the year 41,228 1,037 42,265 Group’s share of: - Profit after tax 230 4 234 - OCI – (104) (104) Total comprehensive income 230 (100) 130 Carrying amount of interest in associate at end of the year 41,458 937 42,395 OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 199 198 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
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