Dagang NeXchange Berhad Annual Report 2018

8 Dagang NeXchange Berhad Annual Report 2018 Dear Shareholders, On behalf of the Board of Directors, it is my pleasure to present the Annual Report and Audited Financial Statements of Dagang NeXchangeBerhad (“DNeX”) and itsGroup of Companies for the financial year ended 31December 2018. Thank you for your continued support for DNeX in its pursuit of business excellence. In the year under review, the Group hasmade considerable progress in strengthening its core divisions namely IT and eServices as well as Energy despite challenges in domestic and global markets. Trade Facilitation and Business-to-Business (“B2B”) segments continue to serve as core revenue drivers of the Group. In addition, the Group made good progress during the year as it ventured into new business revenue streams. DNeX has achieved another significant milestone as the Group successfully expanded its IT and eServices business to include the maiden contribution from telecommunications-related services. The Group’s acquisition of Genaxis, which is aimed to expand and strengthen the Group’s IT and eServices business segment namely accounting systemand consultancy, has also shown encouraging results. In line with its vision to be a leading multinational company trusted for world class services and expertise, the Group has launched several new services including AIIVA, a web-based Halal Logistics Management System (“HLMS”). AIIVA is a web-based solution that provides tracking andmonitoring of Halal consignment through a Single Access Point of Halal logistics services, and also provides connectivity to Halal logistics services companies here and abroad. DNeX has also in January 2019 launched a new service for cargo clearance via air mode. Called Pre-Alert Manifest, the service can facilitate efficient trade documentation processing and cargo movement into the country. This is meant for small imported goods comprising parcels, documents and letters with a total cost, insurance and freight (“CIF”) value not exceeding RM500 per consignment. Its vibrant IT and eServices division was complementedwith considerable progress in the Group’s Energy division, which is operating in a still recovering oil and gas sector. DNeX’s investment in OGPC Group and Ping Petroleum Limited (“Ping”) contributed positively to the Group’s financial results though at a slower progress than initially anticipated. Its directional drilling unit managed to win modest yet strategic contracts with Baker Hughes (M) Sdn. Bhd. (“BHGE”), and HESS Exploration and Production Malaysia BV. Moving forward, the Group’s main focus is on executing planned initiatives, and preparing for a challenging year ahead amidst uncertainties presented by the global economy. Business development initiatives will be on exploring opportunities that leverage on existing competencies, and business components. Towards this end, the Group will continue to grow its services within the Trade Facilitation eco system under its Dagang Net Digital Platform initiative to provide end-to-end, innovative services to help customers be more efficient. This is a unified business platform with content aggregation and repository, eCommerce and fulfillment features enabling collaboration between Governments, businesses and consumers. Dagang Net Digital Platform is aimed to reach, engage and connect the Group’s customers and businesses through innovative products and services that create value to them and their own customers and stakeholders. The Group is also committed to undertake measures to effectivelymanage resources by prudent spending and being cost-efficient to improve profitability. Our pursuits remain guided by value-based business sustainability by providing value to customers to generate profitable growth for the Group, and improve earning resiliency, thus in turn enhance shareholders’ value. The Group’s own core values - Lean, Agile, Clean and Enterprising - will continue to be embedded as part of its business culture. On 22 January 2019, DNeX announced the retirement of Zainal ‘Abidin Abd Jalil as Group Managing Director as he has reached the retirement age of 60. Executive Deputy Chairman, Datuk Samsul Husin has overall responsibility over the Group’s business units and is supported by a team of dedicated professionals in the IT and eServices as well as Energy Divisions. Subsequently, the Group announced the appointment of Zainal ‘Abidin Abd Jalil as Executive Director with effect from 11 February 2019. He will be responsible to manage engagement of key stakeholders for the Group’s Energy division, to advise the Board on the development and strengthening of business activities of the division, and represent the Group in its Energy business units including Ping and Forward Energy Generation Ltd. We look forward to continueworking together in this journey of growth, as we strive to remain as adaptable, motivated and responsive to our markets. On behalf of the Group, I would like to express our sincerest gratitude to all our shareholders, customers, business associates, financiers, the Government and in particular the Ministry of Finance, Ministry of International Trade and Industry, Ministry of Transport, Royal Malaysian Customs Department and other respective regulatory bodies and agencies for their continued support. My appreciation also goes to my fellow members of the Board for their support and contribution, and themanagement teamand employees for their firm commitment and dedication to the Group in pursuing our goals. Thank you. TanSri AbdRahmanMamat Chairman 27 February 2019 CHAIRMAN’S STATEMENT