EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 8 CHAIRMAN’S STATEMENT DATO’ DR NORRAESAH BINTI HAJI MOHAMAD Executive Chairman On behalf of the Board of Directors, it is my pleasure to present the Annual Report of Excel Force MSC Berhad (“EForce” or “the Group”) for the financial year ended 31 December 2020 (“FYE 2020”). Group revenue was RM31.4 million, an increased of 37% or RM8.4 million compared to the previous financial year. This was mainly attributed to our Application Service Provider business segment. Bursa Malaysia share trading experienced record daily trading volume and value due to a surge in retail participation. Our stockbroking customers’ business activities accordingly grew in FYE 2020. In addition, through prudent cost management, our profit growth rate registered higher than revenue. The Group’s Profit Before Tax (PBT) and Profit After Tax (PAT) increased by 71% and 66% respectively to RM14.2 million and RM10.8 million in value terms. After a trying year with Covid-19 pandemic, positive signs of economic recovery have become evident, especially as vaccine roll out accelerates in Malaysia and globally. EForce is fortunate to emerge strong despite unfavourable economic situation under the pandemic. The Group will nonetheless constantly monitor and mitigate impacts from the ongoing pandemic that may negate our business, operations and financial performance. We envisage a strong start to 2021 as our customers implement system enhancements efforts that were deferred. They continue to look to EForce for innovative solutions to meet the evolving needs of their current customers, and new Gen Z and Millennial investors. To this end, the Group is devoting more time and resources into Research and Development to continuously improve our product and service offerings. The Group believes in adopting sustainable practices in business to benefit our community and society. Our plan for community service under our Corporate Social Responsibility program was disrupted by the pandemic. We have renewed commitment to enhance efforts to roll out fresh activities in 2021. The focus will be on improving children well-being and providing learning opportunities through technology for the younger generation. The Group understands the importance of environmental, social and governance (ESG) practices and will strive to adopt them progressively. Another notable development in 2020 was the adoption of Anti-Bribery and Anti-Corruption Framework by EForce. The objective is to strengthen corporate integrity and prevent bribery and corruption. The said Framework sets out the Group’s stance against bribery and corruption, with adequate procedures to manage the risks. In appreciation of our shareholder’s continued support, the Board has declared and paid total dividends of RM5.6 million during the current financial year. The Board proposed a final single tier dividend of 0.50 sen per ordinary share subject to shareholders’ approval at the forthcoming Annual General Meeting. The Board wishes to express its appreciation to our valued customers, suppliers, business partners, financiers, government agencies and regulatory authorities for their continued support and confidence in EForce. Thank you and well done to our management and staff for their contribution to the Group’s performance. Lastly, I would like to expressmy sincere appreciation toMr. Lok Choon Hong who served as our Independent Non-Executive Director until his retirement in the last AGM. I would also like to welcome our new independent director, Dato’ Sri Ismail bin Ahmad who joined the Board on 1 July 2020. THE GROUP ACHIEVED A RECORD PERFORMANCE IN REVENUE AND PROFIT IN FYE 2020.