Wah Seong Corporation Berhad Annual Report 2019

165 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 30 GROSS REVENUE Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Revenue from contracts with customers Contract revenue 1,726,343 2,174,661 - - Sale of goods 767,824 721,925 - - Management fees - - 700 701 2,494,167 2,896,586 700 701 Revenue from other sources Rental income 20,462 64,545 - - Dividend income - - 7,965 9,094 Interest income 287 - 12,274 8,839 20,749 64,545 20,239 17,933 2,514,916 2,961,131 20,939 18,634 Revenue from contracts with customers is represented by: Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Timing of revenue recognition - Over time 1,573,114 2,026,469 700 701 - At a point in time 921,053 870,117 - - 2,494,167 2,896,586 700 701 31 COST OF SALES Group 2019 2018 RM’000 RM’000 Contract costs 1,516,461 1,930,280 Cost of goods sold 673,089 646,980 Direct operating costs relating to rental income 17,308 48,020 2,206,858 2,625,280 32 OTHER (LOSSES)/GAINS - NET Group 2019 2018 RM’000 RM’000 Fair value (losses)/gains arising from fair value changes of: - Derivative financial instruments - Forward currency contracts (896) 48 - Investment in equity instruments - (4) (896) 44