Tropicana Corporation Berhad Annual Report 2019

For the financial year ended 31 December 2019 Notes to the Financial Statements 5. COST OF SALES Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Cost of development properties: - current year 417,018 795,361 – – - overprovision of property development costs in prior years (24,690) (4,124) – – Cost of land sold (Note 16(a) and Note 16(c)) 71,474 194,922 – – Cost of inventories sold 46,775 14,198 – – Cost of building materials sold 26,740 29,576 – – Cost of services rendered: - recreation and resort operations 19,925 18,742 – – - property management and maintenance fees 8,805 9,715 – – - investment properties 7,216 8,014 – – - landscape services 5,098 13,909 – – - private school operations 25,108 23,864 – – - hotel operations 35,318 10,806 – – - management fees – – 24,276 17,376 Others 621 1,304 – – 639,408 1,116,287 24,276 17,376 6. OTHER INCOME Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Gain on a bargain purchase (Note 18(c)) 321,346 15,911 – – Reversal of impairment loss on trade and other receivables 7,113 3,028 – – Management fees 15,658 7,741 – – Rental income 5,254 4,361 1,236 – Late payment interest 3,296 3,371 – – Gain on disposal of: - property, plant and equipment, net 327 10,246 – 24 - joint venture – 24,427 – – - assets classified as held for sale 860 – – – Fair value gain on investment properties – 31,422 – – Forfeiture of deposits 3,179 1,296 – – Bad debts recovered 135 – – – Foreign exchange gain: - unrealised 3 3 – – - realised – 7 – – Others 14,572 2,130 143 106 371,743 103,943 1,379 130 Tropicana Corporation Berhad Annual Report 2019 pg 158 About Tropicana Our Strategic Performance Our Leadership