NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) F2 Acquisition and disposal of controlling interests in subsidiaries in 2024/2023 Acquisition of controlling interests in subsidiary in 2024 (i) Acquisition of controlling interests in D’Crypt Pte. Ltd. (D’Crypt) On 29 February 2024, the Group acquired 100% of D’Crypt for a net cash consideration of $77,869,000. D’Crypt’s main principal activity is cryptographic technology. D’Crypt contributed revenue of $62,847,000 and net profit of $7,194,000 to the Group for the period from 29 February 2024 to 31 December 2024. Had the above business been consolidated from 1 January 2024, the Group’s consolidated revenue and net profit for the year ended 31 December 2024 would have been higher by $8,433,000 and lower by $4,186,000 respectively. Identifiable assets acquired and liabilities assumed The acquisition had the following effect on the Group’s assets and liabilities on acquisition date: Fair values recognised on acquisition 2024 $’000 Property, plant and equipment 7,946 Right-of-use assets 2,852 Intangible assets 15,978 Inventories 6,846 Contract assets 19,345 Trade receivables 1,881 Advances and other receivables 10,204 Bank balances and other liquid funds 23,087 Contract liabilities (13,449) Trade payables and accruals (8,360) Amounts due to related parties (78) Provisions (689) Provision for taxation (651) Non-current contract liabilities (451) Non-current trade payables and accruals (3,643) Deferred tax liabilities (2,876) Total identifiable net assets 57,942 Goodwill arising on consolidation 19,927 Total purchase consideration 77,869 Cash outflow on acquisition: Cash consideration paid 77,869 Less: cash acquired (23,087) Net cash outflow on acquisition 54,782 The Group incurred acquisition-related transaction expenses of $419,000 on professional fees, which have been included in administrative expenses in the Group’s income statement. 236 ST ENGINEERING | ANNUAL REPORT 2024
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