11. INVENTORIES (CONTINUED) Due to slow-moving and obsolete consumables, the Group tested the related product line for impairment and also wrote down the related inventories to their net realisable value, which resulted in a loss of RM5,117,000 (31.12.2023: RM1,146,000) in the financial year/period. 12. CONTRACT ASSETS/(LIABILITIES) Group 31.12.2024 31.12.2023 RM’000 RM’000 Contract assets At 1 January/1 July 24,066 58,760 Transfer to trade receivables (7,487) (43,835) Performance obligations performed 21,008 9,141 Allowance for impairment losses (14,945) (14,934) At 31 December 22,642 9,132 The contract assets primarily relate to the Group’s right to consideration for work completed and services provided on contracts but not yet billed as at the reporting date. The amount will be transferred to trade receivables when the Group issues billing in the manner as established in the contracts with customers. Group 31.12.2024 31.12.2023 RM’000 RM’000 Contract liabilities At 1 January/1 July (604,614) (563,725) Contract liabilities at the beginning of financial year/period recognised as revenue 129,821 29,486 Performance obligations performed 45,948 1,310 Cash received/amounts billed for unfulfilled performance obligations (22,804) (71,685) At 31 December (451,649) (604,614) Analysed: Non-current liabilities (270,964) (287,587) Current liabilities (180,685) (317,027) (451,649) (604,614) The contract liabilities primarily relate to the advance consideration received from customers. The amount will be recognised as revenue when the performance obligations are satisfied. The contract liabilities are expected to be recognised as revenue over a period of 4 years to 5 years (31.12.2023: 5 years). 157 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
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