Dagang NeXchange Berhad Annual Report 2018

Dagang NeXchange Berhad ("DNeX") is an investment holding company with investments working in Information Technology ("IT") and eServices and energy sectors. DNeX Group encompasses 22 companies both with subsidiary and associate level investments. The corporate structure and corporate profile of the Group is available on pages 22 and 23 of this annual report; an overview of our business investments, milestones and strategies in fiscal 2018 is available on pages 80 to 81 of this annual report. OVERVIEWOF 2018 In 2018 DNeX Group recorded its highest revenue since 2007 with a year on year ("YoY") growth of 44% at RM293.5 million from RM203.9 million the previous year. As DNeX continue to grow its legacy businesses, new revenue lines from acquisition of Genaxis Group Sdn. Bhd. and first revenue from marine telecommunication cable installation, repair and maintenance services in Indonesian waters permitted better results to the Group. On the contrary, the Profit After Tax ("PAT") took a 6% dip as a result of higher taxes (RM3.5 million), one-off impairment on goodwill (RM3.6 million), depreciation and amortisation charges (RM4.2 million). Revenue PAT Business Segment (RM’ million) (RM’ million) IT and eServices 241.6 40.9 Energy 51.9 14.3 Corporate - (3.3) Total 293.5 51.9 The Group’s earnings before interest, tax, depreciation, amortisation, impairment and share of results from associates performed higher at RM68.8 million from RM58.3 million in previous year. DNeX’s head office moved to our own 7 storey twin building named Dagang Net Tower in Cyberjaya after 9 years in Bangsar South. The location allows us to be within reach from government offices and key stakeholders in addition to mitigate administrative expenses by ultimately converting rental expenses towards asset. Group’s global presence remains in United Kingdom through its energy segment investments namely 30% associate company Ping Petroleum Limited ("Ping") with oilfield clusters in the North Sea and; Bangladesh with a 10% stake in the development of 54MW Heavy Fuel Oil (“HFO”) Fired Power Plant in Munshiganj (“Bangladesh PP”). 10 Dagang NeXchange Berhad Annual Report 2018 MANAGEMENT DISCUSSION & ANALYSIS