HUTCHISON PORT HOLDINGS TRUST 132 INDEPENDENT AUDITOR’S REPORT To the Unitholders of Hutchison Port Holdings Trust Our Audit Approach (Continued) Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most signifi cance in our audit of the fi nancial statements for the year ended 31 December 2025. These matters were addressed in the context of our audit of the fi nancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed the Key Audit Matter Goodwill and other operating assets Refer to notes 3(a), 3(b), 3(c) and 14(b) to the financial statements The Group has a signifi cant amount of goodwill and other operating assets arising primarily from the acquisition of deep-water container ports in Shenzhen and Hong Kong in 2011. Goodwill is subject to impairment tests annually and whenever there is an indication of impairment, while other operating assets are subject to impairment tests when there is an indication of impairment. For the purpose of the Group’s impairment assessments, impairment was assessed using value-in-use models for deep water container ports in Shenzhen and Hong Kong, which are the cash-generating units (“CGU”) of the Group. In carrying out the impairment assessments, signifi cant judgements are required to determine the assumptions. The most significant assumptions relate to discount rates and growth rates in revenue and cost of services rendered. Based on the results of these impairment assessments conducted by the Group, the Group determined that no additional impairment is required on the goodwill and other operating assets, other than the previously provided goodwill impairment amount of HK$30.4 billion. The signifi cant assumptions are disclosed in note 14(b) to the fi nancial statements. We have performed the following procedures to evaluate the Group’s impairment assessments: Understanding the management’s assessment process of impairment of goodwill and other operating assets and assessing the inherent risk of material misstatement by considering the degree of estimation uncertainty and the judgements involved in determining the assumptions to be applied; Assessed the appropriateness of the valuation methodology used; Assessed the reasonableness of key assumptions based on our knowledge of the business and industry and with the involvement of our valuation experts; Considered the potential impact of reasonably possible changes on the key assumptions; and Tested source data to supporting evidence on a sample basis, such as approved budgets and available market data and considered the reasonableness of these budgets. We found the assumptions adopted in relation to these impairment assessments to be supportable and reasonable based on available evidence.
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