Wah Seong Corporation Berhad Annual Report 2019

141 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 11 INVESTMENT IN ASSOCIATES (CONTINUED) Sensitivity The recoverable amount of the investment in quoted shares would equal its carrying amount if the key assumptions were to change as follows: 2018 From To Revenue growth rate for 5 years 3.0% (2.9%) Discount rate 12.5% 15.9% Growth rate for terminal value 2.0% (3.3%) Details of associates are as follows: Country of incorporation Group’s effective interest Principal activities 2019 % 2018 % WS Integrasi Sdn. Bhd. Malaysia 49 49 Trading, distribution, sales and marketing of the Group’s product and services in the oil & gas, renewable energy, engineering, industrial and property (including land acquisitions) as well as undertaking other external business services opportunities Petra Energy Berhad Malaysia 27 27 Investment holding Evraz Wasco Pipe Protection Corporation Canada 49 49 Provision of pipe coating services Syarikat Beka Sdn. Bhd. Malaysia 48 48 Dormant Lesso Home Syn Tai Hung Sdn. Bhd. Malaysia - - a Trading and distribution of home furnishing goods, building materials, household hardware, builders hardware, sanitary wares and others Wah Seong Boustead Company Limited Myanmar 50 50 Property development, trading and provision of auxiliary services a On 3 August 2018, Syn Tai Hung Trading Sdn. Bhd., an indirect wholly-owned subsidiary of the Company had disposed of 490,000 ordinary shares in the issued and paid-up share capital of Lesso Home Syn Tai Hung Sdn. Bhd. (“LHSTH”), representing 49% equity interest in LHSTH to Lesso Home Services Holdings Limited (“LHSH”), the existing shareholder of LHSTH, for a total cash consideration of RM440,000. As a result of the disposal, LHSTH ceased to be an indirect associate of the Company.