NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 32 PROFIT FOR THE YEAR (CONT’D) Group Note 2025 2024 $’000 $’000 Other expenses Allowance made for foreseeable losses on development properties (net) 13 80,459 4,236 Impairment losses/(Reversal of impairment losses) recognised on: – property, plant and equipment 4 584 (59,797) – investment properties 5 74,324 19,513 – trade receivables and accrued receivables 41 8,287 14,515 – other receivables 41 85 3,220 Loss on dilution of interest in an associate – 2,723 Loss on liquidation of a subsidiary – 9 Property, plant and equipment and investment properties written off 540 5,611 Provisions (written back)/made 28 (2,310) 3,105 Finance income Interest income under the effective interest method: – amounts owing by associates at amortised cost 315 681 – amounts owing by joint ventures at amortised cost 31,938 40,953 – cash and cash equivalents 57,646 53,035 – others 1,392 1,868 Net change in fair value of cash flow hedges, reclassified from hedging reserve – 18,915 Fair value gains on financial assets mandatorily measured at FVTPL (net) 3,358 1,092 Net exchange gain – 70,627 94,649 187,171 Less: Finance income capitalised in development properties (103) (534) Total finance income 94,546 186,637 Finance costs Amortisation of transaction costs capitalised 9,658 10,261 Interest expense: – term loans and bank loans 389,007 475,985 – bonds and notes 95,153 84,102 – amounts owing to non-controlling interests 10,992 2,349 – amounts owing to fellow subsidiaries 263 275 – amounts owing to joint ventures – 5 – lease liabilities 24,147 24,811 – others 214 1,207 Net change in fair value of cash flow hedges, reclassified from hedging reserve 463 – Fair value losses on financial derivatives 12,448 227 Net exchange loss 18,560 – Unwinding of discount on non-current liabilities 4,845 6,346 Finance costs capitalised in: – development properties## (53,565) (30,831) – property, plant and equipment (3,471) (401) – investment properties (10,578) (15,266) Total finance costs 498,136 559,070 Net finance costs 403,590 372,433 * Non-audit fees paid to auditors of the Company and other firms affiliated with KPMG International Limited include audit-related services of $343,000 (2024: $231,000). # Included rental rebate of $38,000 (2024: $28,000) deducted against depreciation of right-of-use assets. ## Relates to development properties for which revenue is recognised at a point in time. Borrowing costs on development properties where revenue is recognised over time is charged to profit or loss, as incurred. 182 | CITY DEVELOPMENTS LIMITED
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