ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 195 INTEGRATED ANNUAL REPORT 2026 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) (e) Impairment of non-financial assets (continued) (i) Impairment of solar plants classified as held for sale (continued) Significant judgement was applied in assessing the timing of completion of the disposal and the expected consideration, including an evaluation of the risks associated with meeting conditions precedent and completion mechanics. The resulting impairment loss was allocated to the solar plant assets, being the primary non-current assets within the disposal group. Accordingly, an impairment charge of RM72 million was recognised to write down the carrying value of the disposal group to its fair value less costs to sell. The impairment was allocated to the solar plant assets, being the primary non-current assets within the disposal group. (ii) Impairment of electric mobility assets The Green Technologies segment comprises electric mobility assets, including electric vehicles, electric vessels, electric vehicle chargers and related site installation costs. These assets are grouped into CGUs based on how they are managed and generate largely independent cash inflows. The Group reviews the relevant CGUs at each reporting date for indicators of impairment in accordance with the accounting policy stated in Note 2.18. Where such indicators exist, the recoverable amount of the CGUs is determined as the higher of their fair value less costs of disposal and value‑in‑use. Determining recoverable amounts requires the use of significant estimates and judgements, particularly in estimating future cash flows and selecting appropriate discount rates. Key assumptions applied across the Green Technologies CGUs include expected utilisation levels, pricing and leasing rates, operating and maintenance costs, residual values, useful lives of assets and discount rates derived from industry benchmarks and adjusted for asset‑specific risks. Based on the impairment assessments performed, the Group recognised impairment charges in respect of certain Green Technologies CGUs during the reporting period. These impairment charges relate to electric mobility assets classified under electric vessels and other assets within property, plant and equipment (Note 17). The key assumptions and sensitivities applied in determining the recoverable amounts of the Green Technologies CGUs are disclosed in Note 17(i) & (j). (f) Classification of RCPS and detachable warrants The Group has issued Redeemable Convertible Preference Shares (“RCPS”) and detachable warrants under a multi-tranche investment arrangement with a consortium of investors, as disclosed in Note 48 to the financial statements. The classification of the RCPS and warrants requires significant management judgement in applying MFRS 132 “Financial Instruments: Presentation”, particularly in assessing whether the contractual terms give rise to a present obligation to deliver cash or another financial asset, or whether the instruments contain equity characteristics. In making this assessment, the Group concluded that, in accordance with the RCPS terms and conditions, key decisions in respect of distributions, redemption and conversion, including the determination of the timing and approval of an IPO, the existence of Distributable Excess Cash and how such cash may be applied, are subject to the control and discretion of the Board of Directors of Yinson Production Offshore Holdings Limited (“YPOHL” or the “Issuer”), an indirectly wholly-owned subsidiary of the Company. Accordingly, any potential cash outflows arising from the RCPS can only occur following actions approved by the Board of Directors of the Issuer. On this basis, the Group concluded that the RCPS does not contain an unavoidable obligation to deliver cash or another financial asset, and therefore meets the definition of an equity instrument under MFRS 132 at initial recognition. The detachable warrants were assessed in conjunction with the RCPS as part of the same financing arrangement. However, the Group concluded that the warrants give rise to a financial liability, as their settlement requires the issuance of a variable number of equity shares and does not meet the “fixed-for-fixed” criterion for equity classification under MFRS 132.
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