Datasonic Group Berhad Annual Report 2020

MANAGEMENT DISCUSSION & ANALYSIS 1. OVERVIEWOF BUSINESS ANDOPERATIONS 1.1 Our Corporate Vision, Mission and Philosophy Asoneof the largest security-based InformationandCommunicationsTechnology (“ICT”) solutionsprovider, DatasonicGroupBerhad (“Datasonic” or “theGroup”) continues toemphasiseon the provisionof excellent solutions and services and consistently creating maximum value for its customers. Supported by our vision, mission and business strategies to provide extensive cutting-edge technologies, we continue to strengthen our core competency to provide cheaper and better solutions towards building a clean, green & safe and smart nation. 1.2 Our Business Segments Datasonic’s business is divided into three segments, namely i) Customised Smart Card Solutions (“CSCS”), which focuses on large-scale customised software and hardware system, project management for secure identification (“ID”) and other software solutions services; ii) Manufacturing (“MA”), manufacturer of smart cards andmachine-readable travel documents (ormore commonly known as passports); and iii) InvestmentHolding (“IH”),whichprovides investment holdingandmanagement services toDatasonic’s Group of companies. 1.3 Our Principal Market &Major Customers Government Sector As one of the leading security-based ICT solutions providers in the market, we provide i) Highly secured national identification (“ID”) cards, mainly theMalaysian IDCard (MyKad), Malaysian passports and personalisation solutions. ii) Other large-scale ICT software system solutions and integrated security and surveillance system solutions to various other government agencies and municipal bodies. Other Private/ Commercial Sectors Our solutions also span across other private/ commercial sectors which include smart card solutions and ICT software solutions for our commercial market as well as EMV TM chip-based credit card and MCCS (“MalaysianChipCard Specification”) standarddebit cardpersonalisation services for the financial market. As the leading financial card personalisation provider, our 25,000 square feet Regional Personalisation Services (“RPS”) centre has been appointed by various major banks in Malaysia to personalise credit and debit cards in Malaysia since 2003. 1.4 Our Objectives and Strategies • Engage with shareholders/stakeholders - In order to consistently deliver high-security products and or solutions to its customers, theGroupwill continue to engage and value the priorities and concerns of its shareholders/stakeholders to inculcate a customer centric culturewithin theGroup. Bynurturing on our in-depth experience and established relationshipwith various shareholders/stakeholders, the Board believes that the resilience and track record built up so far in the domestic market would pave the way for Datasonic to expand its horizons abroad; • Invest in research and development (“R&D”) and foster a culture that embraces technological change - In order to enhance its competitive edge, the Group focuses on investing in R&D and human capital tocreatehighly secured, integratedand innovative ICTsolutions for various governmental, commercial and financial markets. Therefore, the Board supports a culture that embraces technological change by making our workplace conducive for our people to develop innovative and creative thinking for the creation of leading-edge technologies to stay ahead of global competition; DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 20