Dagang NeXchange Berhad Annual Report 2018

27. ACQUISITION/INCORPORATION OF SUBSIDIARIES (CONTINUED) (e) Impact of Acquisition on the Group’s results The acquired subsidiaries have contributed the following results to the Group: Group 2018 RM’000 Revenue 90,930 Profit after taxation 24,782 If the acquisition had taken place at the beginning of the current financial year, the Group’s revenue and profit after taxation would have been RM290,612,000 and RM24,870,000 respectively. 28. DISPOSAL OF SUBSIDIARIES During the financial year, the Group disposed of its entire equity interests in Forward Energy Sdn. Bhd. and Forward Energy Ltd.. The financial effect arising from disposal was not presented as the gain on disposal was not material to the Group. 29. OPERATING SEGMENTS The Group has three reportable segments, as described below, which represent the Group’s strategic business units. The strategic business units offer different products and services and are managed separately because they require different technical expertise and marketing strategies. For each of the strategic business unit, the Executive Deputy Chairman of the Group reviews internal management report at least on a quarterly basis. The following summary describes the operations in each of the Group’s reportable segments: (a) Corporate The Company is an investment holding company. The segment is in provision of corporate services to the entities within the Group. (b) Information technology Supply, delivery, installation, testing, commissioning and maintenance of IT hardware, development, management and provision of business to government (B2G) e-commerce and computerised transaction in trade facilitation services, providing of cyber security solutions, managed services, project fulfilment, assets maintenance and contact centres, research and development, design, manufacturing and trading of radio-frequency technology, providing consultancy services in relation to strategy and business improvements and infrastructure works for telecommunication industry. (c) Energy Providing upstream oil and gas exploration, production, sale of oil and gas related equipment and services, provision of engineering, technical support and involvement in power plant and energy related business. Segment assets The total of segment assets is measured based on all assets (including goodwill) of a segment, as included in the internal management reports that are reviewed by the Executive Deputy Chairman of the Group. Segment total assets is used to measure the return of assets of each segment. 157 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS