Annual Report 2022 25 ABOUT US LEADERSHIP PERSPECTIVE SUSTAINABILITY GOVERNANCE FINANCIAL STATEMENTS Other Information Management Discussion & Analysis Just as importantly, we would like to recap that Datasonic Chip Operating System (“DCOS”) is one of the best chip OS in the world using International Civil Aviation Organisation (“ICAO”) Basic Access Control (“BAC”) compliant dataset. Our DCOS has obtained the internationally recognised Common Criteria (“CC”) Evaluation Assurance Level (“EAL”) 4+ certification, the yardstick of security in the realm of identity document. As part of our continuous innovation, we have also made DCOS to be forward compatible with product from tier one formidable chip maker; thus, enabling us in completing the ecosystem from the upstream of life cycle processes, i.e. management of key certificate, to the downstream of personalisation and verification processes. In addition to all these achievements, our R&D team has continuously contributed to the nation with our endless products and service offerings: National Registration Department: - Personalisation Support and Maintenance - New printing system for MyKad Personalisation Immigration Department of Malaysia: - Bidirectional e-gate - Facial Live Capture (FLC) - MACS Gate - Personalisation Support and Maintenance - Autogate Support and Maintenance - ePassport Public Key Infrastructure (PKI)/ Public Key Directory (PKD) Support and Maintenance. OPERATIONAL REVIEW It was yet another demanding year for us operationally due to the COVID-19 pandemic and the resultant MCOs imposed. Nevertheless, we are pleased that our business continuity plan (“BCP”) continued to work effectively and ensured that all our business activities function accordingly. The flexible working arrangement remained in place but towards the end of the financial year, Datasonic’s team has gradually returned to the office with alternate working arrangement as the situation improved. All this while, we continued to take extra precautionary measures to protect our employees while ensuring our business went on smoothly and uninterrupted, as we placed high priority on the safety and welfare of our employees. Similarly for our manufacturing facilities, we remain in full compliance with the stringent Standard Operating Procedures (“SOPs”) imposed by Majlis Keselamatan Negara (“MKN”). During the MCO 3.0 and FMCO period, we operated with 60% of workforce in accordance with the guidelines enforced. Our emergency response team continued to play a pivotal role in monitoring and managing the situation at Datasonic. As a result, there were no major disruptions to our business and operations in FY2022. Both our manufacturing plants in Petaling Jaya and Meru, Klang, have been building up inventory in anticipation of the increase in demand for passports and smart cards. Apart from our continued improvement plan in production efficiency and delivery yields, we are also in the midst of pursuing new industry standard certification, namely the Intergraf certification to further uplift our standard and manufacturing capabilities. Intergraf is the trade association promoting and protecting the interests of the printing industry. Furthermore, we have continued to upgrade our manufacturing equipment to enable us to further increase our local capabilities and know-how following our investments in our manufacturing facility, machineries and system. This has significant benefits in stemming cost savings, improvement in production efficiency with shorter lead time, reduction in dependency over external vendors and lowered our exposure to foreign exchange risk. FINANCIAL REVIEW Revenue Datasonic’s FY2022 revenue remained relatively stable on a YoY basis at RM136.4 million versus RM138.4 million a year ago. The performance was weighed down by the weaker 1QFY2022 results as the COVID-19 pandemic adversely affected the demand for MyKad. Gross Profit (“GP”) FY2022 GP increased to RM73.5 million from RM72.0 million in the previous year. The slight increase was largely attributed
RkJQdWJsaXNoZXIy NDgzMzc=