Integrated Annual Report 2024 SECTION 6 • FINANCIAL STATEMENTS 331 Notes to the Financial Statements 32. BUSINESS COMBINATIONS (CONT’D) 2024 (cont’d) 32.1 Acquisition of an indirect subsidiary (cont’d) Note Group 2024 RM’000 Identifiable assets acquired and liabilities assumed Property, plant and equipment 3 31,211 Right-of-use assets 4 3,177 Investments properties 5 1,429 Inventories 439 Trade and other receivables 81,770 Cash and cash equivalents 1,796 Current tax liabilities (1,890) Loans and borrowings (2,830) Trade and other payables (110,075) Total identifiable net assets 5,027 Net cash outflow arising from acquisition of subsidiaries Purchase consideration settled in cash and cash equivalents (5,000) Cash and cash equivalents acquired 1,796 (3,204) Negative Goodwill Negative/goodwill was recognised as a result of the acquisition as follows: Total consideration transferred 5,000 Fair value of identifiable net assets (5,027) Negative goodwill (27) Acquisition-related costs The group incurred acquisition-related costs of RM200,000 related to external legal fees and due diligence costs. The legal fees and due diligence costs have been included in administrative expenses in the Group’s consolidated statement of profit or loss and other comprehensive income. 32.2 Additional acquisition of an interest in a subsidiary In December 2024, the Group, via its wholly-owned subsidiary, Press Metal (HK) Limited effectively acquired 0.8% equity interest in a subsidiary, Press Metal International Limited (“PMI”) for a total cash consideration of RMB6,331,000 (equivalent to approximately RM3,885,000), increasing its ownership in PMI and its direct subsidiaries (“collectively known as PMI subgroup”) from 88.3% to 89.1%. The carrying amount of PMI subgroup’s net assets in the Group’s financial statements on the date of acquisition was RM786,952,000. The Group recognised a decrease in non-controlling interests of RM6,689,000 and an increase in retained earnings of RM2,804,000.
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