7. INTANGIBLE ASSETS (continued) (d) Impairment testing for cash-generating units containing goodwill (continued) (i) Sanjung Unggul Group The recoverable amount of the business unit is higher than its carrying amount and was based on its value in use. Value in use was determined by discounting future cash flows to be generated from the continuing operation of the business as a book publisher and education and supplement material provider and was based on the following key assumptions: " Cash flows were projected based on actual operating results and financial budget approved by management covering a 5-year business plan. " The anticipated sales growth rate ranges from 1.22% - 37.85% (2023: 2.58% - 5.00%) from 2025 to 2029 due to expected changes in market demand, including new opportunities from government tenders and digital learning initiatives. " The operating expenditure growth was assumed to be 2.17% (2023: 2.58%) per annum. The estimated growth rate was based on the forecasted inflation rate. " The projected gross margins which reflects the average historical gross margin, adjusted for projected market and economic conditions and internal resource efficiency. " Terminal value was based on the fifth-year cash flow without incorporating any growth rate. " The unit will continue its operations indefinitely. " A pre-tax discount rate of 8.60% (2023: 10.33%) was applied in determining the recoverable amount of the CGU. The discount rate applied was estimated based on the Group9s weighted average cost of capital and reflect the current market assessment of the risks specific to the CGU. The values assigned to the key assumptions represent management9s assessment of future trends in the industries and are based on both external sources and internal sources. Sensitivity analysis Management believes that any reasonably possible change in the key assumptions would not cause the carrying amount of goodwill to exceed the recoverable amount of the CGU. Based on their review, there is no evidence of impairment on the goodwill allocated to the Sanjung Unggul Group. Responsible Corpor-|; bঞ;mv_br Integrity & Honesty Accountable P-u|m;uv_br Excellence & Inno-ঞom Financial Statements (continued) 107
RkJQdWJsaXNoZXIy NDgzMzc=