Independent Auditor’s Report To the Unitholders of CapitaLand China Trust (Constituted under a trust deed dated 23 October 2006 (as amended) in the Republic of Singapore) 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 2024, 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 material accounting policy information, as set out on pages 88 to 161. 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 are properly drawn up 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 so as to 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 2024 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 on that date. 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 Auditor’s 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 year. 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. Key audit matter How the matter was addressed in the audit Valuation of investment properties (Note 4) The Group owns a portfolio of investment properties, through subsidiaries, comprising retail malls, business parks, and logistics parks. Investment properties held represent a key category of assets on the consolidated balance sheet at $4,444 million (2023: $4,543 million) which represents 94.1% (2023: 90.9%) of the Group’s total assets as at 31 December 2024. These investment properties are stated at their fair values based on independent external valuations. The valuation process involves significant judgement in determining the appropriate valuation methodologies 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. • We assessed the Group’s process of the selection of the external valuers, the determination of the scope of work of the valuers, and the review and acceptance of the valuation reports issued by the external valuers; • We evaluated the qualification and competence of the external valuers. We also read the terms of engagement of the valuers with the Group to determine whether there are matters that might have affected their objectivity or limited the scope of their work; • We considered the valuation methodologies used against those applied by other valuers for similar property types. We also considered other alternative valuation methods. We evaluated the key assumptions and inputs used in the valuations, which included capitalisation, discount and terminal yield rates by comparing them against available industry data, taking into consideration comparability and market factors. Where the rates were outside the expected range, we undertook further procedures to understand the effect of additional factors and, when necessary, held further discussions with the valuers; and • We considered the adequacy of the disclosures in the financial statements, in describing the inherent degree of subjectivity and key assumptions in the estimates. Based on the audit procedures performed, the fair valuation of the properties and the various inputs used are within a reasonable range of our expectations. 85 Annual Report 2024
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