Datasonic Group Berhad Annual Report 2020

• While seeking out investment and business opportunities that will maximise shareholder returns, the Group will continue to drive operational efficiencies either by forging strategic partnerships with world class players to help accelerate our product development cycle and/or to expand the portfolio of our products & solutions; and • Protect our intellectual properties (“IP”) by patenting our in-house developed solutions in both the local and international markets. 2. REVIEWOF FINANCIAL RESULTS The Group’s revenue strengthened 12.7% to RM247.540 million fromRM219.559 million, due mainly to higher revenues from more supplies of smart cards, consumables and the provision of personalisation services and maintenance services in the current year. In linewith thehigher revenues, theGroup’s cost of sales had also increasedbyRM8.321million fromRM100.569 million inFY19 toRM108.890million inFY20. However, administrativeexpenses had reducedbyRM1.001million ascribed to prevalent cost control initiatives implemented in the administration of the Group’s operations in the current year. Finance costs decreased by RM1.822 million in FY20 compared to FY19 due mainly to various settlement of borrowings. Accordingly, theGroup’s profit after tax (“PAT”) for FY20grew65.7%toRM60.369million fromRM36.435million a year ago. 2.1 Assets and Liabilities RM’million As at 31.03.2016 As at 31.03.2017 As at 31.03.2018 As at 31.03.2019 As at 31.03.2020 Total Assets 405.061 473.928 445.436 447.333 388.090 Total Liabilities 159.811 213.540 178.759 184.705 131.463 As at 31March2020, total assets have reducedbyRM59.243millionduemainly todepreciation andamortisation of applicable assets and better collections from customers; whereas total liabilities had reduced by RM53.242 million due principally to repayment of borrowings. Management Discussion & Analysis (Cont’d) Figures in RM'mil FY16 FY17 FY18 FY19 FY20 REVENUE 241.310 318.353 258.601 219.559 247.540 COST OF SALES (112.429) (180.522) (113.865) (100.569) (108.889) GROSS PROFIT 128.881 137.831 144.736 118.990 138.651 OTHER INCOME 1.387 1.020 5.331 1.094 1.532 130.268 138.851 150.067 120.084 140.183 ADMINISTRATIVE EXPENSES (59.955) (60.191) (71.795) (71.498) (70.498) 70.313 78.660 78.272 48.586 69.685 FINANCE COSTS (5.213) (6.792) (7.931) (8.112) (6.290) PROFIT BEFORE TAXATION 65.100 71.868 70.341 40.474 63.395 INCOME TAX EXPENSE (2.208) (9.368) (3.220) (4.039) (3.026) PROFIT AFTER TAXATION 62.892 62.500 67.121 36.435 60.369 DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 21