Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 95 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 15. Investment in subsidiaries (cont’d) During the financial year, (i) The Company subscribed for additional ordinary shares in Kimlun Land Sdn. Bhd. for a total consideration of RM25,000,000, satisfied by cash. The subscription did not change the percentage of shareholdings effectively held by the Company. (ii) Kimlun Land Sdn. Bhd., a wholly-owned subsidiary of the Company, incorporated 3 wholly- owned subsidiaries in Malaysia under the name of Kiiville Sdn. Bhd., Kii Ashbury Sdn. Bhd. and Kii Morris Sdn. Bhd., which respectively allotted 1 ordinary share to Kimlun Land Sdn. Bhd.. The consideration of the shares allotted amounting to RM1 each was fully satisfied by cash. (iii) Kimlun Superior Crest Sdn. Bhd. issued 749,990 ordinary share at an issue price of RM1 per share to Kimlun Sdn. Bhd. and its corporate shareholders. Kimlun Sdn. Bhd. subscribed for 449,994 ordinary share of Kimlun Superior Crest Sdn. Bhd. for a total consideration of RM449,994. The balance of 299,996 ordinary shares was subscribed by Superior Crest Development Sdn. Bhd. for a total consideration of RM299,996. As a result, the issuance of the new share did not result in any change of the Company's equity interest in Kimlun Superior Crest Sdn. Bhd. 16. Investment in joint ventures Group 2017 2016 RM RM Unquoted shares, at cost 4,830,000 4,530,000 Share of post-acquisition reserves 13,155,089 12,761,337 17,985,089 17,291,337 Represented by: Share of net assets 17,985,089 17,291,337 Details of the joint ventures are as follows: Proportion (%) Country of of ownership Name incorporation Principal activities interest 2017 2016 Held through Kimlun Land Sdn Bhd: Posh Atlantic Sdn. Bhd. Malaysia Property development and 51 51 property investment Held through Kimlun Sdn Bhd: Zecon Kimlun Consortium Malaysia Building and infrastructure 30 30 Sdn. Bhd. * contractor JBB Kimlun Sdn Bhd Malaysia Building and infrastructure 40 - contractors Held through KL Building Materials Sdn Bhd: Rock Projects Sdn. Bhd. Malaysia General trader and manufacturer 51 51 * Audited by a firm of chartered accountants other than Ernst & Young