Wah Seong Corporation Berhad Annual Report 2020

145 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 11 INVESTMENT IN JOINT VENTURES (CONTINUED) Sensitivity (continued) Reasonably possible changes to the key assumptions would have decreased the carrying amount of the investment in a joint venture as follows: Group 2020 2019 RM’000 RM’000 Pre-tax discount rate (1% increase) 4,300 7,400 Terminal growth rate (1% decrease) - 5,300 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 2020 2019 RM’000 RM’000 At 1 January 8,959 8,930 Effect of exchange rate changes (109) 29 At 31 December 8,850 8,959 Details of joint ventures are as follows: Country of incorporation Group’s effective interest Principal activities 2020 % 2019 % Boustead Wah Seong Sdn. Bhd. Malaysia 50 50 Investment holding activities and businesses in property development and management; provision of general fabrication, engineering and oil and gas services; trading and marketing activities and any other businesses or projects as shall be mutually agreed from time to time in Myanmar 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 Bayou Wasco Insulation, LLC United States of America 49 49 Provision of thermal insulation coating services to pipes or pipelines