EXCEL FORCE MSC BERHAD 85 Notes to the Financial Statements (Cont’d) 8. Investment in Subsidiary Companies (Cont’d) (b) Acquisition of non-controlling interests Xifu Sdn. Bhd. On 14 December 2022, the Company acquired additional 30% equity interest in Xifu Sdn. Bhd. (“Xifu”) for RM1 in cash, increasing its ownership from 70% to 100%. The carrying amount of Xifu Sdn. Bhd.’s net assets in the Group’s financial statement on the date of acquisition was RM702,678. The Group recognised a decrease in non-controlling interest of RM210,803 and an increase in retained earnings of RM210,802. The effect of changes in the equity interest in Xifu Sdn. Bhd that is attributable to owners of the Company: RM Carrying amount of non-controlling interest acquired 210,803 Consideration paid to non-controlling interest (1) Increase in parent’s equity 210,802 There was no acquisition in the previous financial year. (c) Change in equity interests 31 December 2021 On 15 June 2021, Xifu entered into a Shareholders Agreement (“SA”) with the Company and Mr Yap Shon Leong (“Shareholder B”) whereby the Company and Shareholder B agreed to undertake an additional capital by way of subscription of further shares in Xifu for cash in the proportion of 70% and 30% respectively. On 28 December 2021, Xifu increased its issued and paid-up share capital from 2 to 23,500,000 ordinary shares by way of issuance of 23,499,998 new ordinary shares at an issue price of RM0.10 per share for total consideration of RM2,349,999. The Company has subscribed for additional 16,449,998 ordinary shares in Xifu for total consideration of RM2,349,999 by way of capitalisation of amount due from Xifu. Consequently, the Company’s equity interest in Xifu decreased from 100% to 70% and Xifu became a 70% owned subsidiary company of the Company. The SA was completed on 28 December 2021. (d) Material partly-owned subsidiary company Set out below are the Group’s subsidiary company that has material non-controlling interests: Name of company Proportion of ownership interest and voting rights held by non-controlling interest Profit/(Loss) allocated to non-controlling interest Accumulated non-controlling interest 30.6.2023 31.12.2021 30.6.2023 31.12.2021 30.6.2023 31.12.2021 % % RM RM RM RM Xifu Sdn. Bhd. - 30 (334,287) - - 545,090
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