REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of CapitaLand China Trust (the “Trust”) and its subsidiaries (the “Group”), which comprise the consolidated statement of financial position and consolidated portfolio statement of the Group and the statement of financial position of the Trust as at 31 December 2023, the consolidated statement of total return, consolidated distribution statement, consolidated statement of movements in Unitholders’ funds and consolidated statement of cash flows of the Group and the statement of movements in Unitholders’ funds of the Trust for the year then ended, and notes to the financial statements, including a summary of material accounting policy information, as set out on pages 153 to 223. In our opinion, the accompanying consolidated financial statements of the Group, and the statement of financial position and statement of movements in Unitholders’ funds of the Trust present fairly, in all material respects, the consolidated financial position and the portfolio holdings of the Group and the financial position of the Trust as at 31 December 2023 and the consolidated total return, consolidated distributable income, consolidated movements in Unitholders’ funds and consolidated cash flows of the Group and the movements in Unitholders’ funds of the Trust for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Investment Funds” (“RAP 7”) issued by the Institute of Singapore Chartered Accountants. Basis for opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the ‘Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Valuation of investment properties (Refer to Portfolio Statement and Note 4 to the financial statements) Risk Investment properties (excluding assets held for sale) represent the largest asset item on the consolidated statement of financial position, at $4.5 billion as at 31 December 2023 (2022: $4.9 billion). The investment properties are stated at their fair value based on independent external valuations. The valuation process involves significant judgement in determining the appropriate valuation methodology to be used, and in estimating the underlying assumptions to be applied. The valuations are highly sensitive to key assumptions applied and a small change in the assumptions can have a significant impact to the valuation. INDEPENDENT AUDITORS' REPORT Unitholders of CapitaLand China Trust (Constituted under a trust deed dated 23 October 2006 (as amended) in the Republic of Singapore) ANNUAL REPORT 2023 149 Financials Framework Portfolio Performance Leadership Overview
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