NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2025 (cont’d) 8. Investment in associates (CONT’D) Details of the associates are as follows: (cont’d) Name of associate Place of business/ Country of incorporation Effective interest (%) Principal activities 2025 2024 Associate of PayMe My Blockchain Infrastructure Sdn Bhd (“MBISB”) Malaysia 49 - Design, develop, market, operate, and where necessary, vary and upgrade the Malaysia Blockchain Infrstructure and its related application (MBI) and the applications to be built and run on MBI. * These associates were accounted for under equity method using the unaudited management accounts of which the financial statements are not material to the Group. (a) The Group has not recognised losses relating to MINT, where its share of losses exceeded the Group’s interest in this associate. The Group’s cumulative share of unrecognised losses at the end of the reporting period was RM56.1 million (2024: RM56.1 million), of which approximately RM12,800 (2024: RM14,000) relates to the share of the current financial year’s losses. The Group has no obligations in respect of these losses. (b) The summarised financial information has not been presented for as the associates are not individually material or in aggregate to the financial position, financial performance and cash flows of the Group. (c) Incorporation of associate On 17 February 2025, PayMe incorporated MBISB with 490 ordinary shares, representing 49% of equity interest in MBISB for a total consideration of RM490. (d) Derecognition of an associate On 10 February 2025, MYEGC acquired 60 ordinary shares in ZFSB for a for a total cash consideration of RM60, which increased the effective equity interest ownership of the Group from 40% to 70%. As a result, ZFSB became a subsidiary of the Group upon the Group obtaining control over ZFSB, as disclosed in Note 7(d) to the financial statements. (e) Material accounting policy information Investments in associates are accounted for under equity method in the Group’s statements of financial position. Subsequently, the financial statements include the Group’s share of profit or loss and other comprehensive income of the associate. Investments in associates are measured in the Company’s statement of financial position at cost less any impairment losses. 242
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