7 FINANCIAL STATEMENTS 321 17. INTANGIBLE ASSETS (CONTD.) (a) Goodwill (contd.) Impairment testing of goodwill (contd.) (i) Opus Group CGU The recoverable amount of the Opus Group CGU was determined based on a value-in-use calculation using cash flow projections derived from financial budgets approved by the Board of Directors covering a five-year period. Based on this assessment, the recoverable amount of the Opus Group CGU was RMnil. The projected cash flows reflect reduced expected contract values and weaker margin outlook in certain infrastructure-related activities. As a result, the goodwill allocated to the Opus CGU was fully impaired and an impairment loss of RM38.6 million to goodwill, RM1.1 million to property, plant and equipment and RM0.1 million to right-of-use assets recognised in profit or loss for the financial year ended 31 December 2025. (ii) EMS CGU The recoverable amount of the Mediserve CGU was determined based on a VIU calculation using cash flow projections derived from financial budgets approved by the Board of Directors, covering a ten-year period. Based on the assessment, the recoverable amount of the EMS CGU was RMnil. During the financial year, the CGU was impacted by the transition to an interim concession environment within the Healthcare Solutions business. In addition, confirmation that the current concession terms would remain unchanged with no upward revision in fees has resulted in the projected cash flows to incorporate the following effects: - Margin compression arising from the regulatory enforcement of the new minimum wage; - Immediate flow-through of operational cost increases which outpaced existing contract cost pass-through mechanisms; and - Persistent external cost pressures despite ongoing cost optimisation and process improvement initiatives undertaken by the Group. Based on the impairment assessment, the goodwill allocated to the Mediserve CGU was fully impaired, resulting in an impairment loss of RM27.0 million to goodwill, RM66.8 million to the property, plant and equipment, RM0.5 million to intangible assets and RM2.1 million to right-of-use assets recognised in profit or loss for the financial year ended 31 December 2025. (iii) UEMS MY CGU The recoverable amount of the UEMS MY CGU was determined based on a VIU calculation using cash flow projections derived from financial budgets approved by the Board of Directors covering a five-year period. Based on this assessment, the recoverable amount of the UEMS MY CGU was RM39.3 million. During the current financial year, the goodwill allocated to UEMS MY CGU was partially impaired due to continued margin compression and deteroriation in working capital performance experienced by the CGU. Accordingly, impairment loss of RM26.8 million were recognised to the profit or loss.
RkJQdWJsaXNoZXIy NDgzMzc=