ANNUAL REPORT 2025 175 NOTES TO THE FINANCIAL STATEMENTS 200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 15. Investment in subsidiaries (cont'd) Control over an investee (a) During the financial year: (i) Additional investments Bonus Focus Development Sdn. Bhd. ("BFDSB") RM Purchase consideration 45,000 Less: non-controlling interest at acquisition date (32,581) Adjustment arising from acquisition of remaining NCI 12,419 Sun Sakura Sdn. Bhd. ("SSSB") Kimlun Land Sdn. Bhd. ("KLLSB"), a wholly-owned subsidiary of the Company acquired the remaining 30% equity interest in BFDSB not held by the Group for a cash consideration of RM45,000. The difference between the consideration paid and the carrying amount of the non-controlling interest has been recognised in equity attributable to owners of the Company. The acquisition does not constitute a business combination and has been accounted for as an asset acquisition. KLLSB acquired 50% equity interest in SSSB for a cash consideration of RM1,000,000. Post the share acquisition, SSSB became a subsidiary of the Group pursuant to a shareholders' agreement allowing the Group to appoint the majority of the board of directors of SSSB, hence conferring the Group the power and ability to direct the relevant activities of SSSB. Although the Group holds only 49% and 50% of the equity interests in Bayu Damai Sdn. Bhd. ("BDSB") and Sun Sakura Sdn. Bhd. ("SSSB"), it has determined that both entities are subsidiaries because the Group retains control over their relevant activities. This conclusion is based on the respective shareholders' agreements, which grant the Group the right to appoint the majority of board of directors of BDSB and SSSB, thereby conferring the power to govern the financial and operating policies of both entities. - 55 -
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