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Datasonic Group Berhad
(Company No. 809759-X)
17
Chairman’s Statement
(Continued)
Other Solutions
Other revenue streams for Datasonic which make up RM45.173 million (19%) of total Group revenue in FY16
were derived mainly from the following:
(i) Maintenance and Technical Support Services
Maintenance and Technical Support Services includes themaintenance of printers at the headquarters
of Jabatan Pendaftaran Negara (“JPN/ National Registration Department”), Distributed Printing
Offices at JPN branches and Urban Transformation Centres (“UTC”).
On 20 March 2015, Datasonic was awarded with a 2-Years Maintenance contract valued at RM32.569
million for themaintenance of 43 National Registration Department branches (Personalisation Centres
& Distributed Printing Phases 1 & 2) and UTC.
(ii) Regional Personalisation Services (RPS)
Datasonic’s newly established RPS center in Petaling Jaya has expanded its card production capacity
and technical competency in the personalisation of payment cards.
In FY16, RPS has contributed RM15.728 million (7%) to theGroup’s revenue as compared to the RM6.385
million (2%) reported in the 15 months ended 31 March 2015. The increase of RM9.343 million (+146%)
of revenue for RPS was mainly attributable to the enlarged sale of cards and the personalisation of
debit and credit cards as a result of increase in demand for re-carding services, in line with Bank
Negara Malaysia’s requirement for transactions via e-payment to meet the Malaysian Chip Card
Specification (“MCCS”).
RPS currently has 11 customers which represents almost 33% of the total market share. Barring any
unforeseen circumstances, we anticipate that RPS would be able to perform reasonably well over
the next two (2) years in the payment cards industry as the demand for MCCS Migration becomes
inevitable.
(iii) Security and Surveillance Solutions
Datasonic has been supplying Closed Circuit Television (“CCTV”) and maintaining the CCTV control
centres on behalf of Majlis Bandaraya Pulau Pinang (“MBPP/ City Council of Penang”) since the award
of the contract (Ref: MBPP Phase 1) on 16 October 2013. Subsequently, MBPP Phases 2 and 3 were
awarded on 8 April 2014 and 5 December 2014 respectively as MBPP expands its CCTV coverage
to monitor and reduce crime rates in Penang. During the current financial year, a letter of award for
MBPP Phase 4 was awarded by MBPP on 3 December 2015. To-date, total contract values awarded
by MBPP (i.e. Phases 1, 2, 3, 4 and MBPP Premises) is RM33 million.
Besides providing CCTV solutions to MBPP, Datasonic is also the main subcontractor awarded to
implement CCTV solutions toMajlis Perbandaran Seberang Perai (“MPSP/ City Council of Butterworth”)
with contract value of RM9.345million for the period commencing from 14 April 2014 to 23 June 2019.
As at 31 March 2016, the remaining book order for Security and Surveillance Solutions stood at
RM20.107 million.
In summary, the two new five-year passport projects namely passport chips and passport booklets that
were secured are major accomplishments and will contribute positively to our earnings and help in our
expansion plans overseas. We are working hard to secure more security related ICT projects for further
growth, profitability and contribute towards nation building. Given the existing book orders derived mostly
fromGovernment-related projects as well as several prospects we are working on, the prospects for growth
for Datasonic is positive as the Group is expected to perform satisfactorily in the next financial year ending
31 March 2017, barring any unforeseen circumstances.