18. INVESTMENT IN SUBSIDIARIES (CONTD.) (a) Cost of investment in subsidiary companies (contd.) (i) Acquisition of additional share capital in subsidiaries On 29 January 2024, Opus Energy Sdn. Bhd. (formerly known as Edgenta Energy Projects Sdn. Bhd.) increased its ordinary shares to 1,000,000 by issuing 250,000 new ordinary shares of RM1.00 each. The Company subscribed to the new shares which was settled by cash. In previous financial year, Edgenta Healthcare Management Sdn. Bhd., increased its ordinary shares to 750,000 by issuing new ordinary shares of RM1.00 each. The Company subscribed to the new shares which was settled by cash. (ii) Incorporation of Edgenta Academy Sdn. Bhd. (“EASB”) In the previous financial year, EASB was incorporated as a wholly-owned subsidiary of the Company on 12 September 2023. (b) Impairment of investment in subsidiaries The movement in accumulated impairment loss as follows: Company 2024 RM’000 2023 RM’000 At 1 January 414,902 414,902 Impairment loss on investment in a subsidiary company 1,233 – Reversal of impairment loss on investment in a subsidiary company (35,000) – At 31 December 381,135 414,902 During the current financial year, an impairment loss was recognised against the carrying amount of its investment in Edgenta Environmental & Material Testing Sdn. Bhd. (“EEMT”) of RM21.4 million to its recoverable amounts. Based on management’s assessments, the recoverable amount of its investment in EEMT was RM20.2 million which was estimated based on the net tangible assets of EEMT. Management assessment also indicates that a reversal of impairment loss of RM35.0 million is required for Opus Group Berhad (“OGB”) as the recoverable amount of its investment in OGB of RM528.8 million which is determined using the VIU Method, exceeded the previous carrying amount of RM493.8 million. The current year’s reversal reflects improved performance and future prospects for OGB, which have been considered in the VIU calculations. Notes to the Financial Statements For the year ended 31 December 2024 325 FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NDgzMzc=