37 CORPORATE GOVERNANCE ENRA GROUP BERHAD ANNUAL REPORT 2023 b. Shareholder value creation Companies aim to create value to their shareholders by increasing the value of their shares and providing attractive return on investment. We had consistently declared and paid dividends since FY 2015/16 when profits and cashflows permitted. However, there were years that the dividend was not prioritised in order to give way for a better investment, which was ultimately intended to improve the shareholders’ benefits. c. Market Leadership We strive to achieve market leadership for our products and services. This aspiration encompasses various facets, including capturing the largest market share, being recognised as an industry innovator, and establishing a compelling brand presence that deeply resonates with our customers. In the past, we successfully attained market leadership in the specialty chemical segment through our ownership of ENRA Kimia Sdn Bhd. This subsidiary's exceptional performance allowed us to divest it at an impressive return on equity (ROE) of 345% in September 2021. This achievement highlighted our ability to create and nurture market leaders, delivering substantial value to our stakeholders. Currently, our focus lies in replicating this success with our MRO division. Over the next five years, we are dedicated to building this division into another market leader within the industry. d. Operational efficiency This involve optimising operations, reducing costs and improving productivity. We continuously focus on streamlining processes, implementing effective supply chain management, adopting technology solutions and continuously improving operational performance. For example, our subsidiary EES is currently aggressively securing exclusive distributorships in Malaysia for parts manufactured and sourced from abroad. e. Strong corporate governance As a public listed company, it is a natural aim for us to maintain strong corporate governance framework, which includes transparent and ethical practices, effective risk management and responsible decision making. Compliance with regulatory requirements and industry standards is crucial for building trust with investor and stakeholders. These four values are cemented into our name as follows; Ethical Noble Reliable Accountable f. Innovation and adaptability ENRA recognises the importance of innovation and adaptability. It is a crucial goal to achieve in order to be successful in today's dynamic environment. To put into perspective, ENRA was among one of the companies early on who took the initiative to introduce WFH as a safety measure, when COVID-19 cases were beginning to increase in Malaysia. This was part of our Business Continuity Plan that begun nearly a month before the MCO was enforced by the government. During the MCO we saw the opportunity to optimise our office space and took action by reducing the number of offices from three to just one office in Publika at Hartamas to effectively control the cost at the optimum level. ENRA had also offered MSS to its staff to bring the company to a right size to operate. Sustainability Report (Cont’d)
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