EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 9 MANAGEMENT DISCUSSION AND ANALYSIS This Statement contains the Management’s discussion and analysis of the business operation and performance of the Group for the financial year ended 31 December 2020. It should be read in conjunction with the audited financial statements of the Group as set out in this Annual Report. BUSINESS REVIEW EForce is a leading information technology solution provider involved in the development, provision and maintenance of application and system solutions for the financial services industry, specifically the stockbroking companies and investment banks. EForce organises its business activities into three (3) segments. They are: (a) Application Solutions ("AS") - Sales of software applications and product on outright purchase basis. (b) Maintenance Services ("MS") - Provision of maintenance services. (c) Application Services Provider ("ASP") - Provision of application services on monthly recurring fixed and variable charges. The Group's products include CyberBroker Front Office (for client-server, web andmobile-based stock trading system), CyberBroker Middle Office, CyberBroker Back Office (including Custodian and Nominee System), StockBanking System (including Share Margin Financing System) and Fundamental Analysis System. EForce customers demand reliable and stable solutions to fulfil their mission critical role as capital market intermediaries. Over the years, EForce has earned a solid reputation in consistently meeting, and at times, exceeding customers' expectations. The Group collaborates closely with customers to continuously assess their evolving business needs and develop good quality applications to fulfil them. REVIEW OF FINANCIAL RESULTS The Group achieved a record revenue of RM31.4 million in FYE 2020, mainly derived fromASP segment, an increase of RM8.4 million or 37% compared to the previous financial year. Increased retail participation in share trading and volume transacted lifted our revenue performance. Profit before tax (PBT) was also a record at RM14.2 million, higher by RM5.9 million or 71% compared to last financial year, a positive outcome of our prudent cost management. Profit after tax (PAT) for FYE 2020 stood at RM10.8 million, an increase of RM4.3 million or 66%. Total assets of the Group stood at RM102.4 million, increase of RM1 million from last year. Total liabilities of the Group stood at RM9.5 million, higher by RM4.5 million compared to 2020 due to higher tax provision and accruals. REVENUE FYE2020 RM31.4 MILLION ⇧37% ⇧66% ⇧RM1 Million PAT FYE2020 RM10.8 MILLION TOTAL ASSETS FYE2020 RM102.4 MILLION