Annual Report 2025

180 Transport International Holdings Limited 2025 Annual Report INDEPENDENT AUDITOR’S REPORT Key audit matters (Continued) Assessing the valuation of investment properties Refer to note 14 to the consolidated financial statements and the accounting policies on page 198. The Key Audit Matter How the matter was addressed in our audit The Group holds a portfolio of investment properties located in Hong Kong at 31 December 2025. These properties mainly comprise shopping malls, office premises and industrial buildings. At 31 December 2025, the fair value of the Group’s investment properties is HK$8,177 million which represented 35% of the Group’s total assets. The fair value of the investment properties at 31 December 2025 was assessed by management based on valuations prepared by a firm of qualified external property valuers. Decrease in fair value of investment properties of HK$142 million was recorded in the consolidated statement of profit or loss. We identified assessing the valuation of investment properties as a key audit matter because of the significance of investment properties to the consolidated financial statements and because the determination of the fair values involves significant judgement and estimation, including selecting the appropriate valuation methodology, capitalisation rates and market rents. Our audit procedures to assess the valuation of the investment properties included the following: – obtaining and inspecting the valuation reports prepared by the external property valuers on which the management’s assessment of the fair values of investment properties was based; – assessing the independence, qualifications and expertise of the external property valuers’ engaged by management; – with the assistance of our internal property valuation specialists and utilising their industry knowledge and experience, discussing with the external property valuers, without the presence of management, their valuation methodologies with reference to the prevailing accounting standard; and assessing the key estimates and assumptions adopted in the valuation by comparing capitalisation rates, prevailing market rents and comparable market transactions with the available market data; and – on a sample basis, comparing tenancy information, including committed rents and occupancy rates, provided by management to the external property valuers, with underlying contracts and related documentation.