8 EXCEL FORCE MSC BERHAD Management Discussion and Analysis The year 2021 started with great optimism as mass vaccination against Covid-19 kicked off in US, Europe, China and developing countries including Malaysia. According to the Ministry of Health, 22.8mil individuals or 97.6% of adult population in the country and 87.5% of adolescent population aged between 12 and 17, totalling 2.7mil individuals have completed their Covid-19 vaccination by the end of 2021. This unprecedented rapid roll out of vaccination program enabled the government to gradually ease movement restrictions and reopen the economy. Despite the emergence of the Omicron variant of Covid-19 virus, Malaysia’s GDP performance in 2021 showed improvement, with an increase of 3.1% compared to a contraction of 5.6% in 2020 (Ministry of Finance). The pandemic has taken a toll on the economy, with uneven pace of recovery across the industries. Fortunately, the financial services industry, and specifically the stockbroking sector had weathered the pandemic turbulence well. The Malaysian stock market trading activities remained strong in 2021, after a record breaking 2020. Bursa Malaysia ended the year with Average Daily Trading Value of RM3.545bil (2020: RM4.21bil, 2019: RM1.93bil), with retail trades continue to show strong momentum in 2021. 63% or about 2/3 of new individual CDS accounts opened in 2021 were by millennial investors (age 26-45 years old), a boost to future growth potential of Bursa Malaysia. As Malaysia’s leading information technology provider of complete share trading system solutions to stockbroking companies and investment banks, Excel Force MSC Berhad (“EForce” or “the Group”) benefited from the robust performance of its customers and the local stock market. BUSINESS OVERVIEW EForce organises its business activities into three (3) segments. They are: 1 APPLICATION SOLUTIONS (“AS”) Sales of software applications and product on outright purchase basis. 2 MAINTENANCE SERVICES (“MS”) Provision of maintenance services. 3 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 and mobile-based stock trading system), CyberBrokerMiddleOffice, CyberBrokerBackOffice (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. FINANCIAL PERFORMANCE The Group achieved a record revenue of RM37.3 million in FYE 2021, an increase of RM5.9 million or 19% compared to the previous financial year. The increase was mainly in AS segment, frommore system enhancement and technology refresh works. 2021 – RM2.7 million Profit Before Tax (PBT) 2020 – 16,886 14,175 19% 2021 – RM5.9 million Revenue 2020 – 37,312 31,386 19% Profit before tax (PBT) was also a record at RM16.9 million, higher by RM2.7 million or 19% compared to last financial year. Profit after tax (PAT) for FYE 2021 stood at RM12.2 million, an increase of RM1.4 million or 13% compare to last financial year. Total assets of the Group stood at RM110.3 million, increase of RM7.9 million from last year. Total liabilities of the Group stood at RM8.6 million, lower by RM0.9 million compared to previous financial year.
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