Wah Seong Corporation Berhad Annual Report 2021 155 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 11 INVESTMENT IN JOINT VENTURES (CONTINUED) Reasonably possible changes to the key assumptions would have increased the impairment loss of the investment in a joint venture as follows: Group 2021 2020 RM’000 RM’000 Pre-tax discount rate (1% increase) 12 4,300 Growth rate for terminal value (1% decrease) 354 - 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 2021 2020 RM’000 RM’000 At 1 January 8,850 8,959 Impairment loss recognised 3,000 - Effect of exchange rate changes 289 (109) At 31 December 12,139 8,850 Details of joint ventures are as follows: Country of incorporation Group’s effective interest Principal activities 2021 % 2020 % 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 Dormant Socotherm PPSC Ningbo (Daxie) Pipe Coating Co. Limited People’s Republic of China 50 50 Dormant 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
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