11. INVESTMENTS IN ASSOCIATES (continued) a) On 16 September 2019, an associate of the Group, Furnitech Components (Vietnam) Co., Ltd. (“Furnitech”) had entered into a binding term sheet with an independent third party for the acquisition of entire 100% equity interest in Furnitech from the current owners of Furnitech. Accordingly, the investment in Furnitech under manufacturing segment was classified as disposal group classified as held for sale. The Group has completed the disposal of Furnitech in 7 June 2021. b) On 1 November 2021, PRG announced that Furniweb Holding Limited ("FHL") as purchaser and Ms. Pua Lay Cheng and Mr. Lee Eng Lock as vendors (the “Vendors”) entered into the Share Sale Agreement ("SSA"), pursuant to which the Vendors have conditionally agreed to sell and FHL has conditionally agreed to acquire the 37.25% of issued share capital of Energy Solution Global Limited, whose two wholly-owned operating subsidiaries are principally engaging in provision of smart energy solution business at the total consideration of HKD9,564,000 (approximately RM5,187,000). The SSA has been completed on 13 December 2021. c) Movements in the impairment allowance for investments in associates are as follows: Group 2021 2020 RM’000 RM’000 At 1 January 4,788 4,748 Charge for the financial year 1,894 40 Disposal of an associate (3,244) - At 31 December 3,438 4,788 During the financial year, the impairment losses on investments in associates of RM1,894,000 (2020: RM40,000) have been recognised due to declining business operations. 12. INVESTMENT IN A JOINT VENTURE Group 2021 2020 RM’000 RM’000 Unquoted equity shares, at cost 570 570 Share of post-acquisition reserves, net of dividends received 361 844 931 1,414 Less: Impairment loss - - 931 1,414 NOTES TO THE FINANCIAL STATEMENTS P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 136 31 December 2021 (cont’d)
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