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Financial Reports &
Governance HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 117
Other Information

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (continued)
2.23 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares;
and
• by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements
in the ordinary shares issued during the financial year and excluding treasury shares.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares,
and the weighted average number of additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
2.24 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Company does not recognise contingent liability but discloses its existence in the financial statements. A contingent
liability is a possible obligation that arises from past event whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation
that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation.
A contingent liability also arises in the extremely rare case where there is a liability that cannot be recognised because it
cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company. The Company does
not recognise contingent assets but discloses its existence where inflows of economic benefits are probable, but not
virtually certain.
There are no events that require disclosure of contingent liabilities and contingent assets for the financial year ended
31 December 2023 and 31 December 2022.

2.25 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance
of the operating segments, has been identified as the Board of Directors.
No segmental information is considered necessary for analysis by business or by geographical segments. This is because
the Company is principally engaged in the business of refining and manufacturing of petroleum products in Malaysia,
which is a single business segment. Also, the Company’s primary segment operations are also concentrated within
Malaysia, hence operating within a single geographical segment.