HUTCHISON PORT HOLDINGS TRUST 162 NOTES TO THE FINANCIAL STATEMENTS 14 Intangible assets (a) Customer relationships Group 2025 2024 HK$’000 HK$’000 Net book value At beginning of the year 3,830,742 4,164,948 Amortisation (334,206) (334,206) At end of the year 3,496,536 3,830,742 Cost 8,440,000 8,440,000 Accumulated amortisation (4,943,464) (4,609,258) At end of the year 3,496,536 3,830,742 (b) Goodwill The Group has one business segment and two geographical CGU to which goodwill is allocated as follows: Group 2025 2024 HK$’000 HK$’000 Hong Kong – – Chinese Mainland 11,270,044 11,270,044 11,270,044 11,270,044 2025 2024 HK$’000 HK$’000 At beginning of the year 11,270,044 11,270,044 Impairment of goodwill (accumulated: HK$30.4 billion) – – At end of the year 11,270,044 11,270,044 As in the prior year, management performed an impairment assessment based on value-in-use calculations using cash fl ow projections based on fi nancial budgets approved by management covering a 5-year period and a further outlook for 5 years, which is considered appropriate in view of the long-term nature of the terminal business. Management determined that no impairment of goodwill or other operating assets are required for the year ended 31 December 2025. The impairment methodology assumed terminal values and discount rates of 2% - 3% (2024: 2% - 3%) and 8% (2024: 8% - 9%) per annum, respectively. Terminal values are determined by considering both internal and external factors relating to the port operation and discount rates refl ect specifi c risks relating to the relevant business. The assumptions regarding the growth rates in revenue used in the current year’s assessments incorporated new business opportunities identifi ed. For illustration purposes, a hypothetical 0.5% decrease in the revenue growth rate and a 0.5% increase in the discount rate, with all other variables and assumptions held constant, would decrease the recoverable amount of the Hong Kong CGU, by HK$2.3 billion and HK$1.9 billion respectively and of the Chinese Mainland CGU, by HK$6.6 billion and HK$8.7 billion, respectively. Actual results in the future may diff er materially from the sensitivity analysis due to developments in the global markets and changes in economic conditions which may cause fl uctuations in growth and market interest rates to vary and therefore it is important to note that the hypothetical amounts so generated do not represent a projection of likely future events and profi ts or losses.
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