Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 138 9 INVESTMENT IN JOINT VENTURES (CONTINUED) Impairment of investment in joint ventures The movements for allowance for impairment loss on investment in joint ventures during the financial year are as follows: Group 2017 RM’000 2016 RM’000 At 1 January 9,774 9,586 Effect of exchange rate changes (994) 188 At 31 December 8,780 9,774 Details of joint ventures are as follows: Country of incorporation Group’s effective interest Principal activities 2017 % 2016 % Boustead Wah Seong Sdn. Bhd. Malaysia 50 50 Investment holding Socotherm Shashi Pipe Coating Co. Ltd. People’s Republic of China 50 50 Provision of pipe coating services Socotherm PPSC Ningbo (Daxie) Pipe Coating Co. Limited People’s Republic of China 50 50 Marketing and provision of pipe coating services to the oil and gas industry Sichuan Chuanshi Kanssen (Yadong) Coating Services Company Limited People’s Republic of China 51 51 Provision of pipe coating services Shaanxi Yadong Anti-Corrosion Company Limited People’s Republic of China 55 55 Provision of pipe coating services Pesanan Dinamik Sdn. Bhd. Malaysia - b - b Dormant (Dissolved) Bayou Wasco Insulation, LLC United States of America 49 49 Provision of thermal insulation coating services to pipes or pipelines PMT SHINKO Turbine Sdn. Bhd. Malaysia 49 49 Assembly and supply of equipment for palm oil and other agricultural industries