11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) The depreciation expense is charged to profit or loss under: Group 2025 2024 $ $ Cost of sales 106,714 67,939 Operating expenses 920,695 895,545 Total 1,027,409 963,484 The Group and Company incurred costs of $13,516,329 (2024: $2,304,823) on the re-construction of the warehouse building at 132 Pioneer Road Singapore. The construction works have yet to be completed as of reporting year end. Motor vehicles with carrying value of $435,749 as at 31 December 2025 (2024: $602,319) were acquired under finance lease agreements (Note 27). For the purpose of consolidated statement of cash flows, the Group’s additions to property, plant and equipment during the reporting year, comprised of: Group 2025 2024 $ $ Additions of property, plant and equipment 14,238,065 2,982,549 Acquired under finance lease arrangements (including cost of motor vehicle of $240,472 and other item of $6,745) – (247,217) Cash payments to acquire property, plant and equipment 14,238,065 2,735,332 12. RIGHT-OF-USE ASSETS Leasehold lands Office premises Office equipment Motor vehicles Total Group $ $ $ $ $ Cost: At 1 January 2024 2,351,268 1,078,277 7,882 128,725 3,566,152 Currency translation differences – 3,408 543 1,974 5,925 Additions – 287,930 2,201 41,582 331,713 Write off of expired and terminated leases – (762,741) – (20,683) (783,424) At 31 December 2024 2,351,268 606,874 10,626 151,598 3,120,366 Currency translation differences – (17,507) 459 2,002 (15,046) Additions – 228,341 – 75,823 304,164 Write off of expired and terminated leases – (224,008) – (58,969) (282,977) At 31 December 2025 2,351,268 593,700 11,085 170,454 3,126,507 MEGACHEM LIMITED ANNUAL REPORT 2025 141 31 DECEMBER 2025 NOTES TO THE FINANCIAL STATEMENTS
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