ANNUAL REPORT 2021
OVERVIEW Our Business 02 Destini’s Presence 04 Corporate Diary 05 Subsidiary and Sub-subsidiaries 10 Corporate structure (subsidiary and sub-subsidiaries) 14 Corporate Information 16 LEADERSHIP Board of Directors 18 Key Senior Management 25 PERFORMANCE Performance Brief 28 Executive Chairman and Management Discussion and Analysis 30 SUSTAINABILITY REPORT Commitment to Sustainability 38 Sustainability Governance 40 Stakeholders Engagement 42 Material Sustainability Matters 43 GOVERNANCE Corporate Governance Overview Statement 52 Additional Compliance Information 70 Risk Management and Internal Control Statement 71 Audit Committee Report 74 FINANCIAL STATEMENTS Financial Report 76 List of Properties Owned 226 Statistics of Shareholding 227 Notice of Eighteenth (18th) Annual General Meeting 230 Statement Accompanying Notice of Annual General Meeting 237 Proxy Form 239 CONTENTS
OUR BUSINESS Destini Berhad (“Destini” or “the Company”) and its subsidiaries (“the Group”) is an integrated engineering solutions provider with diverse interest in the aviation & defence, energy, land systems and marine industries. The Group has a wide presence in the Asian, Australian, Middle East and European regions. AVIATION & DEFENCE ENERGY • Supplies and provides safety and survival-related equipment maintenance, repair and overhaul (“MRO”) for the Armed Forces and civil airline aircrafts, both fixed and rotary winged aircraft. • Supplies defence related aircrafts. • Cylinder testing and calibration services. • Aircraft search, rescue and salvage. • Commercial airline safety and survival component MRO services. • Engineering, Procurement, Construction, Installation and Commissioning of renewable energy systems. • Provides tubular running services for upstream onshore and offshore drilling programmes. • Well delivery services which includes a comprehensive tubular and drilling programme. • Subsea well intervention, platform abandonment and field decommissioning services. • Subsea pipeline inspection as well as maintenance and repair services. • Supply of handling and drilling tools. • Supply and trading of LNG. 02 DESTINI BERHAD • ANNUAL REPORT 2021
LAND SYSTEMS MARINE • Manufacture and supplymotor trollies, wagon and road rail vehicles for the rail sector. • Assembly, fabrication, refurbishment and MRO of train sets and rail systems. • Manufacture and supply of lifeboats, fast rescue boats, outboard and inboard diesel engines, davit systems and hooks for commercial shipping and oil and gas industry. • Manufactures proprietary Self-Propelled Hyperbaric Lifeboats used in deep sea diving operations. • Provides MRO services relating to lifeboats, davits, load testing equipment, fire safety and other marine assets. 03 ANNUAL REPORT 2021 • DESTINI BERHAD
DESTINI’S PRESENCE MALAYSIA SINGAPORE AUSTRALIA SAUDI ARABIA CHINA UAE UNITED KINGDOM 04 DESTINI BERHAD • ANNUAL REPORT 2021
DESTINI’S CORPORATE DIARY 2011 SEPTEMBER As part of its regularization plan, Satang Holdings changed its name to Destini Berhad to reflect a synergized and aligned business direction. The name change is also part of a turnaround plan for the Group to strengthen its financial muscles while exploring new business ventures. 2012 FEBRUARY Destini acquired a 50% stake in automotive supply and service company System Enhancement Resources & Technologies Sdn Bhd (“SERT”). AUGUST The suspension of trading in Destini’s shares was uplifted by Bursa Securities on August 13 after its regularization plan was approved. DECEMBER Destini acquireda51%stake inSingapore- basedVanguard Composite Engineering Pte Ltd (currently known as Vanguarde Pte Ltd), a company that manufactures lifeboats, fast rescue boats, davit systems and host of other safety equipment for the marine and oil and gas industries. 2013 MARCH Completed the purchase of oil and gas service provider Samudra Oil Services Sdn Bhd, now known as Destini Oil Services Sdn Bhd (“DOS”) for RM80 million. APRIL • D estini acquired the Techno Fibre Group to wholly- owned Techno Fibre Australia Pte Ltd, Techno Fibre Middle East Marine Services FZE, Technofibre International Sdn Bhd and Techno Fibre (S) Pte Ltd. The Techno Fibre Group is in the business of lifeboat and davit maintenance. • A fter completing its regularization plan and achieving profits for two consecutive quarters, Destini was uplifted from PN17 status. 1991 MARCH Satang Jaya Sdn Bhd (“Satang Jaya”) commenced operations as an aviation tools and spare parts supplier. 1998 MAY Satang Jaya was awarded the contract to provide MRO services for Royal Malaysian Airforce (“RMAF”) safety and survival equipment under Ministry of Defence Malaysia’s (“MinDef”) RMAF Contractorisation Programme. 2005 MARCH Satang Jaya entered Bursa Malaysia Securities Berhad (“Bursa Securities”), under the name Satang Jaya Holdings Berhad and subsequently changed its name to Satang Holdings Berhad (“Satang Holdings”) in June 2007. 2008 MAY Satang Holdings triggered the prescribed criteria pursuant to Practice Note 17 (“PN17”) of the Main Market Listing Requirements (“Listing Requirements”) of Bursa Securities. 2009 JULY Satang Holdings shares were suspended from trading by Bursa Securities on July 13. 05 ANNUAL REPORT 2021 • DESTINI BERHAD
DESTINI’S CORPORATE DIARY AUGUST The Group acquired its own building in Glenmarie Industrial Park, Shah Alam to house its corporate office and workshop facility. 2014 AUGUST Destini acquired a 50% stake in Detrac Sdn Bhd (“Detrac”) to become the research and development arm of the Group. Subsequently, theGroup increased its shareholding in Detrac to 70% in November 2014. 2015 APRIL Destini acquired Land Auto Technology Sdn Bhd, which is in the business of motor vehicle, motor accessories and spare part trading and distributorship. JUNE • D estini acquired an 80% stake in Safeair Technical Sdn Bhd (“SAT”), a company that provides Line Maintenance services for commercial airlines in local airports. • D estini Aviation Sdn Bhd (“DASB”) entered into a joint venture agreement with UK-based Avia Technique Limited to establish a new joint venture company called Destini Avia Technique Sdn Bhd (“DAT”). DAT was incorporated to carry on the provision of inspection, repair and overhaul services for commercial air craft components. SEPTEMBER Destini acquired the remaining 49% stake it did not own in Vanguard, making the lifeboat maker a wholly-owned subsidiary of the Group. DECEMBER The Group acquired Destini Shipbuilding & Engineering Sdn Bhd (“DSBE”) to enable it to fabricate six 44.25-meter New Generation Patrol Craft (“NGPC”) worth RM381.30 million for the Malaysian Maritime Enforcement Agency (“MMEA”). 2016 MARCH Vanguard receives contract to supply eight Self- Propelled Hyberbaric Lifeboats to UK- based JFD. APRIL Destini Prima Sdn Bhd (“DPSB”) entered into a Memorandum of Understanding with Advanced Military Maintenance, Repair and Overhaul Centre (“AMMROC”) L.L.C. to form a strategic alliance for the provision of MRO on aircraft escape systems. JUNE SERT accepted its first rail related award from the Ministry of Transport for the design, manufacture, supply, delivery, testing and commissioning of new motor trolley and road rail vehicle for Keretapi Tanah Melayu Berhad (“KTMB”) worth RM62 million. SEPTEMBER TF Corp Pte Ltd subscribed 60% shares in IMES Marine Safety Systems Limited, the company currently known as Destini Marine Safety Solutions Ltd. The company is principally in the business of inspection, testing, repair and maintenance of marine safety systems such as lifeboats and its components. OCTOBER Destini entered into a Joint Venture Agreement with TH Heavy Engineering Berhad (“THHE”) to establish an unincorporated joint venture to procure the award for the supply, delivery, testing and commissioning of three 80-meter Offshore Patrol Vessels (“OPV”) for the MMEA. 06 DESTINI BERHAD • ANNUAL REPORT 2021
NOVEMBER DSBE and THHE’s wholly-owned subsidiary THHE Fabricators Sdn Bhd formed an incorporated joint venture company, Gigih Integrasi Sdn Bhd to undertake the fabrication of the three OPV’s. Gigih Integrasi Sdn Bhd is now known as THHE Destini Sdn Bhd. DECEMBER The Group secured a three-year contract extension to provide MRO services and to supply safety and survival related equipment to the RMAF for RM98.20 million. 2017 JANUARY THHE Destini Sdn Bhd, a 51:49 joint venture company between THHE and Destini secured a contract worth RM738.9 million for the supply, delivery, testing and commissioning of three OPV’s for the MMEA. FEBRUARY Destini acquired 70% stake in safety and security equipment company, Halaman Optima Sdn Bhd, for RM5.5 million to enable the Group to supply six reconnaissance helicopters worth RM321.9 million to MinDef for the Royal Malaysian Army. JUNE DASB entered into a Joint Venture and Shareholders Agreement with Sapura Aero Sdn Bhd to incorporate a Joint Venture Company that is to be in the business of rotary wing and fixed aircraft sale, supply and provision of MRO in relation to aircraft and helicopters and the provision of programs such as wet leasing and dry leasing of aircraft. NOVEMBER • D OS and Federal International (2000) Ltd, a company listed on the Mainboard of the Singapore Exchange, formed a joint venture to collectively bid for oil and gas projects in the South Asian and South- East Asia Region. • D estini Armada Pte Ltd acquired 70% stake in AMS Marine Pte. Ltd, a Singapore-based company that is in the business of design, fabrication and servicing of heat exchangers, fabrication, installation and erection of piping and steelworks and non- destructive testing to the marine and oil and gas industry. 2018 APRIL • D estini Engineering Technologies Sdn Bhd (“DETSB”) inked an MOU with Felcra Berhad to provide MRO services for industrial facilities and equipment for the agriculture and related industries within Malaysia and the ASEAN region. • D OS was awarded a two-year umbrella contract by PETRONAS Carigali Sdn Bhd (“PCSB”) for the provision of well abandonment integrated services. • D PSB accepted an award from the MinDef for an additional RM138 million to an existing contract to provide MRO services and the supply of safety and survival equipment for the RMAF. 07 ANNUAL REPORT 2021 • DESTINI BERHAD
DESTINI’S CORPORATE DIARY MAY DOS was awarded a US$8 million (RM31.76 million) contract to be Pakistan-based Lyallpur Oil Tool Pvt Ltd’s technical partner for tubular running services in Pakistan. JULY The Group received a conditional work order for the provision of well abandonment integrated services for Pulai B platform, off the coast of Terengganu. This came under the two-year umbrella contract by PCSB for the provision of well abandonment integrated services that Destini received in April. AUGUST DOS received an award from POSCO Daewoo Corporation for the provision of tubular running services in Myanmar for US$5.2 million (RM21.17 million). DECEMBER DOS was awarded the provision of tubular handling, conductor installation and slot recovery equipment and service for the Pan Malaysia Petroleum Arrangement Contractors (PAC) Operators Drilling Program by PCSB. 2019 JANUARY • D PSB received a letter of extension from the Ministry of Home Affairs, to provide MRO services, technical assistance and supply of spares related to safety and survival equipment, ground support and mechanical equipment, electronic equipment, airborne multisensory system and flight operations system the Royal Malaysia Police Air Wing for a period of three years until November 2021 for RM10 million. • D OS received a letter of award for the provision of tubular running services for exploration and appraisal and infill drilling campaign at the lower part of Gulf of Thailand near the South China Sea for Carigali-PTTEPI OperatingCompany SdnBhd. The tenure of the contract is two years with one-year extension option. MARCH DOS was awarded the provision for tubular handling, conductor installation and slot recovery equipment and services for PAC Operators’ Drilling Program for Sarawak Shell Berhad. The total value of the contract awarded depends on the work orders to be issued. APRIL • D estini Rail Sdn Bhd incorporated a wholly-owned subsidiary, DLP Rail Sdn Bhd as part of a plan to expand its future service offerings to include total engineering solutions and services, civil works, rolling stock, project and asset management and maintenance services for rail and track transportation projects in Malaysia. • D AT entered into an aircraft safety equipment maintenance support agreement with Malindo Airways Sdn Bhd and Thai Lion Mentari Co Ltd, to supply, test, repair, and carry out overhaul activities on aircraft safety equipment. The agreement’s tenure is three years with an option to extend for another two years. 08 DESTINI BERHAD • ANNUAL REPORT 2021
MAY Destini Rail Sdn Bhd entered into a Joint Venture and Shareholders Agreement with Lion Pacific Sdn Bhd, and SVPR Consulting Services Sdn Bhd in respect of DPL Rail Sdn Bhd to draw upon the skills, expertise, experience and capabilities of each other in undertaking the business of rail related projects in Malaysia and the region which among others, include engineering solutions and services, civil works, rolling stock, system and track works, asset management and maintenance services for rail projects. JULY DOS received a three-year contract from Petrofac (Malaysia-PM304) Limited for the provision of tubular handling equipment and running services. OCTOBER DOS was awarded PAN Malaysia Umbrella Contract forthe Provision of Integrated Well Services for Intervention, Workover and Abandonment for PACs from PCSB. The contract runs on a call-out basis through the issuance of work orders andwould expire in 2024 unless it is extended. DECEMBER DPSB secured RM50.18 million contract from MinDef for the extension of the existing contract to provide MRO services and the supply of the safety and survival equipment to the RMAF. The tenure of the contract was one year starting October 2019 to October 2020. 2020 APRIL DOS received a letter of award for the provision of tubular equipment andservices for JXNipponOil &GasExploration (Malaysia) Limited’s drilling campaign. The tenure of the contract is four years with a one-year extension option. JULY • D ETSB was awarded a contract from Wira Syukur (M) Sdn Bhd to provide mechanical and electrical systems for the commercial development of GrenePark Village in Semenyih for a sum of RM17.39 million. • D PSB was awarded a contract from MinDef to supply non-propietary aircrafts parts for the RMAF. It allows DPSB and 29 other local companies identified by MinDef to participate in parcels of bidding should RMAF require any non-proprietary aircraft parts. The contract has a combined ceiling of RM121 million. DECEMBER DPSB received a letter of award from MinDef for the extension of the existing contract to provideMRO services and the supply of safety and survival equipment for the RMAF for RM30.37 million. 2021 FEBRUARY Destini entered into a 70:30 joint venture and shareholders agreement with KTMB to enable to Group to expand its capabilities to provide heavy maintenance work on rail assets in Malaysia. AUGUST DOS secured an award from Repsol Oil and Gas Malaysia for the provision of Tubular Handling and Conductor Installation Equipment and Services. OCTOBER Destini inked a Memorandum of Understanding with Siemens Mobility Sdn Bhd for the latter to act as Destini’s Technical Assistance Advisor in providing MRO services for electrical trainset components in Malaysia. NOVEMBER Destini entered into a Heads of Agreement with Indonesia State-OwnedPT IndustryKeretaApi (“PT INKA”) to identify and pursue opportunities in the railway system business sector and infrastructure projects in Indonesia, Malaysia and the region. DECEMBER Destini secured its maiden solar project from Indah Water Konsortium Sdn Bhd (“IWK”) for the engineering, procurement, construction and commissioning of solar photovoltaic systems at IWK’s sewerage treatment plants across Malaysia. 09 ANNUAL REPORT 2021 • DESTINI BERHAD
Destini Prima Sdn. Bhd. [199101013420 (223732-V)] Distribution and supply of safety and survival related equipment for defence and commercial aviation and marine industries. Halaman Optima Sdn. Bhd. [201101004714 (932855-V)] Manufactures, imports and exports safety and security products and defense equipment. System Enhancement Resources & Technologies Sdn. Bhd. [200901001316 (844241-K)] Supplying, servicing and upkeeping of army vehicles, buses as well as supplying motor trolley. Destini Aviation Sdn. Bhd. [199501038645 (367847-D)] Investment holding. Destini Avia Technique Sdn. Bhd. [201501028007 (1153331-T)] Specialise in maintenance, repair and overhaul for aircraft components and equipment catered to commercial aviation sector. Invation Aero Sdn. Bhd. [201701010172 (1224337-K)] • Business of sale rotary wing and fixed wing aircraft • Supply and provision of maintenance, repair and overhaul services in relation to aircraft and helicopters • Provision of programs such as wet leasing and dry leasing of aircraft and helicopters Emirates Kejurteraan Samudra Timur Berhad Petroleum Services L.L.C. (Trade License No. CN-1415749) • Provides oil and gas production facilities operation and maintenance services. • Engaged in onshore and offshore oil, gas field and facilities services. Detrac Sdn. Bhd. [201401025741 (1101831-X)] Research and development of mechatronic system including software customization, repair and maintenance of electronic system, support and consultation on system development. Destini Rail Sdn. Bhd. [201701039771 (1253943-P)] Operation of mass transit and other urban transport. DLP Rail Sdn. Bhd. [201901014081 (1323409-M)] Rail construction, trackworks, systems and communications. SUBSIDIARY AND SUB-SUBSIDIARIES (AS AT 31 MARCH 2021) 10 DESTINI BERHAD • ANNUAL REPORT 2021
MRail Technics Sdn. Bhd. [202101013065 (1413364-D)] Maintenance, repair and overhaul of electric trains for domestic and regional markets. Destini Empire Properties Sdn. Bhd. [201801020429 (1282448-U)] To acquire by purchase lease, exchange, hire or otherwise, lands and property of any tenure, buildings or any shares, interest or interests therein. Destini Engineering Technologies Sdn. Bhd. [200101000901 (536657-H)] Engaged in maintenance, repair, and overhaul of aviation-related cylinders that include servicing, inspection and refilling of gas and general contractors, construction of telecommunication engineering and other related services. DB Infotech Sdn. Bhd. [200101025896 (561654-M)] Providing consultancy and solutions services and implementing of high technology and computerised security systems and related services. Destini HRTC Sdn. Bhd. [201101039136 (967258-X)] Provides training and education consultancy. DB Precision Sdn. Bhd. [201301028120 (1057950-U)] Engaged in supplying calibration and cylinder services. Destini Armada Sdn. Bhd. [199601006251 (378597-W)] Investment holding. Destini Shipbuilding and Engineering Sdn. Bhd. [201301037560 (1067389-K)] Manufacturer of paramilitary boats and vessels and provides ship repair and marine-related engineering services. Destini Armada Pte. Ltd. (201228769N) Manufacturing, repair, fabricate and supply of marine and safety/lifesaving equipment. Vanguarde Pte. Ltd. (198700526G) Manufacture and offers service and maintenance of lifeboats, fast rescue boats, davit systems and a host of other safety equipment for the marine and oil and gas industries. Vanguard Safety Technologies Sdn. Bhd. [201301003772 (1033613-X)] Engage in supplying marine related lifesaving equipment, parts and accessories. 11 ANNUAL REPORT 2021 • DESTINI BERHAD
Vanguarde Offshore Pte. Ltd. (200923004Z) • Trading in hyperbaric lifeboats. • General importers and exporters of marine equipment and accessories Vanguard (Nantong) F.R.P. Co. Ltd (3200775411024) Manufacturing, maintaining and trading of fiber-reinforced plastic (“FRP”) ship, FRP products and life-saving equipment. Vanguarde Marine Engine Pte. Ltd. (201718529N) • Provision of service activities for oil and gas extraction. • Provides engineering design and consultancy services TF Corp Pte. Ltd. (201310889H) Investment holding. Destini Marine Safety Solutions Ltd (SC500305) Provides inspection, testing, repair and maintenance of marine safety systems including lifeboats and rescue boats. Techno Fibre (Australia) Pty Ltd (ACN 103 625 618) Providesmaintenance, repair and testingof lifeboats anddavits cruise ships, offshoreplatforms andgeneral shipping. Armada Delmar Sdn. Bhd. [200001019664 (522271-P)] Engaged in lifeboat and davit servicing business, trading in other safety equipment catered to the marine and oil and gas industries as well as servicing life raft and firefighting equipment. Techno Fibre (S) Pte. Ltd. (199300541H) • Repairing and service of fibre composite life boats and davits. • Building and repairing of ships, tankers and other ocean-going vessels. Techno Fibre Middle East Marine Services FZE (06585) Providing installation and maintenance of marine equipment. T F Emirates Marine Services L.L.C. (TN-1794649) Engaged in the business of onshore and offshore oil and gas field and facilities services, marine machines and equipment repairing and maintenance. TF Corp Saudi Co. Ltd. (SAGIA License No - 12219360655725) Provides maintenance, installation and repair of marine equipment and trading activities of marine safety products. SUBSIDIARY AND SUB-SUBSIDIARIES 12 DESTINI BERHAD • ANNUAL REPORT 2021
PT Destini Marina Perkasa (4020022031104317) Provision of jetty/port operations related services to companies involved with mining activities. Blackstone Dagangan Pte. Ltd. (202014057M) Trading of coal. Destini Energy Sdn. Bhd. [200001020740 (523347-K)] Business of energy generation, transmission, distribution, power trading based on thermal, hydro, biomass, nuclear and gas including manufacturing, trading, import, export, installation, and operation of solar systems for energy generation including solar photovoltaic, solar thermal, solar chimney and any other solar based devices used in households, industry and commercial establishments. Destini Ventures Sdn. Bhd. [201501013978 (1139310-V)] Other service activities n.e.c. Destini Oil Services Sdn. Bhd. [201001021567 (905337-M)] Provision of tubular handling and inspection, piling hammer equipment and running services as well as repair and maintenance of assets related to the oil and gas industry, provides supply, lease and operate drilling rigs as well as other oil and gas related services. Destini Upstream Sdn. Bhd. [201701001170 (1215320-V)] Engage in the business of providing wholesales of variety of goods and trading. Hijau Baiduri Sdn. Bhd. [202101028241 (1428541-K)] Investment holding and general trading. Destini First Sdn. Bhd. [199101007464 (217774-M)] Dormant. Land Auto Technology Sdn. Bhd. [201501014248 (1139580-K)] Dormant. Destini Aero Teknologi Sdn. Bhd. [201101039135 (967257-T)] Dormant. 13 ANNUAL REPORT 2021 • DESTINI BERHAD
CORPORATE STRUCTURE 50% 100% DESTINI PRIMA SDN. BHD. 100% DESTINI AVIATION SDN. BHD. 100% DB PRECISION SDN. BHD. DORMANT - DESTINI PRIMA SDN. BHD. DESTINI OIL SERVICES SDN. BHD. 100% DESTINI ARMADA SDN. BHD. 100% DESTINI RAIL SDN. BHD. 100% DESTINI ENERGY SDN. BHD. 100% DETRAC SDN. BHD. 100% ARMADA DELMAR SDN. BHD. 100% DESTINI SHIPBUILDING AND ENGINEERING SDN. BHD. 100% M RAIL TECHNICS SDN. BHD. 70% HALAMAN OPTIMA SDN. BHD. 70% 50% INVATION AERO SDN. BHD. 50% EMIRATES KEJURTERAAN SAMUDRA TIMUR BERHAD PETROLEUM SERVICES L.L.C. 49% DESTINI AVIA TECHNIQUE SDN. BHD. 50% SATANG ICS-GLOBAL SDN. BHD. 50.99% SATANG ENVIRONMENTAL SDN. BHD. 100% DESTINI UPSTREAM SDN. BHD. 100% DLP RAIL SDN. BHD. 100% HIJAU BAIDURI SDN. BHD. 100% 14 DESTINI BERHAD • ANNUAL REPORT 2021
VANGUARD (NANTONG) F.R.D. CO. LTD DESTINI HRTC SDN. BHD. 100% DESTINI EMPIRE PROPERTIES SDN. BHD. 100% DESTINI ENGINEERING TECHNOLOGIES SDN. BHD. 100% VANGUARDE OFFSHORE PTE. LTD. 100% 100% VANGUARDE MARINE ENGINE PTE. LTD. 100% TECHNO FIBRE (S) PTE. LTD. 100% TECHNO FIBRE MIDDLE EAST MARINE SERVICES (FZE) 100% VANGUARD SAFETY TECHNOLOGIES SDN. BHD. 100% TECHNO FIBRE AUSTRALIA PTY LTD 100% TF CORP SAUDI CO. LTD. 51% T F EMIRATES MARINE SERVICES L.L.C. 49% DESTINI MARINE SAFETY SOLUTIONS LTD 60% DESTINI ARMADA PTE. LTD. 100% DESTINI VENTURES SDN. BHD. 100% LAND AUTO TECHNOLOGY SDN. BHD. 100% DESTINI AERO TEKNOLOGI SDN. BHD. 100% DB INFOTECH SDN. BHD. 100% BLACKSTONE DAGANGAN PTE. LTD. 60% SYSTEM ENHANCEMENT RESOURCES & TECHNOLOGIES SDN. BHD. 100% DESTINI FIRST SDN. BHD. 100% DESTINI AUSTRALIA PTY LTD 100% VANGUARDE PTE. LTD. 100% TF CORP PTE. LTD. 100% PT DESTINI MARINA PERKASA 99.99% DORMANT - DESTINI BERHAD 15 ANNUAL REPORT 2021 • DESTINI BERHAD
Audit Committee Professor Datin Dr Suzana Binti Sulaiman @Mohd Suleiman (Chairperson) Dato’ Che Sulaiman Bin Shapie Dato’ Mohd Zahir Bin Zahur Hussain Nomination and Remuneration Committee Dato’ Che Sulaiman Bin Shapie (Chairman) (Re-designated as Chairman of Nomination and Remuneration Committee on 15 November 2021) Dato’ Mohd Zahir Bin Zahur Hussain Professor Datin Dr Suzana Binti Sulaiman @Mohd Suleiman (Appointed on 15 November 2021) Risk Management Committee Professor Datin Dr Suzana Binti Sulaiman @Mohd Suleiman (Chairperson) (Re-designated as Chairperson of Risk Management Committee on 15 November 2021) Abdul Rahman Bin Mohamed Rejab Dato’ Mohd Zahir Bin Zahur Hussain (Appointed on 15 November 2021) Option Committee Dato’ Rozabil @ Rozamujib Bin Abdul Rahman (Chairman) Dato’ Che Sulaiman Bin Shapie Syaiful Hafiz Bin Moamat Mastam (Appointed on 26 March 2021) Company Secretaries Tan Tong Lang (MAICSA 7045482 / SSM PC No. 202208000250) Thien Lee Mee (LS0009760 / SSM PC No. 201908002254) CORPORATE INFORMATION Board of Directors Dato’ Rozabil @ Rozamujib Bin Abdul Rahman Executive Chairman (Re-designated from President & Group Chief Executive Officer to Executive Chairman on 15 September 2021) Syaiful Hafiz Bin Moamat Mastam Non-Independent & Non-Executive Director (Appointed on 26 March 2021) Professor Datin Dr Suzana Binti Sulaiman @Mohd Suleiman Independent & Non-Executive Director Dato’ Che Sulaiman Bin Shapie Independent & Non-Executive Director Dato’ Mohd Zahir Bin Zahur Hussain Independent & Non-Executive Director Abdul Rahman Bin Mohamed Rejab Executive Director Norzilah Binti Mohammed Executive Director 16 DESTINI BERHAD • ANNUAL REPORT 2021
Auditors Messrs. UHY Firm Number: AF 1411 Chartered Accountants Suite 11.05, Level 11 The Gardens South Tower Mid Valley City, Lingkaran Syed Putra 59200, Kuala Lumpur Wilayah Persekutuan Tel : 03-2279 3088 Fax : 03-2279 3099 Principal Banker AmBank Islamic Berhad (199401009897 (295576-U)] Affin Hwang Investment Bank Berhad (197301000792 (14389-U)] Registered Office No. 10 Jalan Jurunilai U1/20 Hicom Glenmarie Industrial Park 40150 Shah Alam Selangor Darul Ehsan Tel : 03-5567 0333 Fax : 03-5569 1233 Corporate Office No. 10 Jalan Jurunilai U1/20 Hicom Glenmarie Industrial Park 40150 Shah Alam Selangor Darul Ehsan Tel : 03-5567 0333 Fax : 03-5569 1233 Email : info@destinigroup.com Website : www.destinigroup.com Registrar lnsurban Corporate Services Sdn. Bhd. (198101010136 (76260-W)] 149, Jalan Aminuddin Baki Taman Tun Dr Ismail 60000 Kuala Lumpur Wilayah Persekutuan Tel : 03-7729 5529 Fax : 03-7728 5948 Email : insurban@gmail.com Investor Relations Teh Aik Sin No. 10, Jalan Jurunilai U1/20 Hicom Glenmarie Industrial Park 40150 Shah Alam Selangor Darul Ehsan Email : info@destinigroup.com Tel : 03-5567 0333 Fax : 03-5569 1233 Destini Share Information Company name : Destini Berhad Stock name DESTINI Stock code 7212 Ticker code - DSTN:MK (Bloomberg) - DEST.KL (Reuters) Financial year end 31 December 17 ANNUAL REPORT 2021 • DESTINI BERHAD
DATO’ ROZABIL @ ROZAMUJIB BIN ABDUL RAHMAN Executive Chairman Chairman of the Option Committee Nationality / Age : Malaysian / 50 Date of Appointment : 11 November 2020 Areas of Expertise : Construction, Investment Trading Qualifications 1. M aster in Business Administration from University of Sunderland, England 2. E xecutive Diploma in Plantation Management from University of Malaya, Kuala Lumpur Tenure as Director : 11 years Dato’ Rozabil @ Rozamujib Bin Abdul Rahman (“Dato’ Rozabil”) joined Destini as an Independent and Non-Executive Director in November 2010 and was re-designated as the Managing Director in January 2011. Dato’ Rozabil was then redesignated to Group Managing Director in January 2014. He was later then re-designated to President & Group Chief Executive Officer in April 2018, prior to becoming the Executive Chairman in September 2021. His vision and strategies have led to the Group’s successful growth track record as well as financial strength and is also instrumental in leading the executive team in implementing the Group’s strategies. His leadership and entrepreneurial vision have been and will continue to be crucial in leading the Group into the future. Dato’ Rozabil started his career as Managing Director and owner of Benar Prima Holdings Sdn Bhd, a holding company that has businesses in engineering, property development and investments. He has diversified interests ranging from construction and property development to trading and serves as director to several other private companies. He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. BOARD OF DIRECTORS 18 DESTINI BERHAD • ANNUAL REPORT 2021
Member of the Option Committee Nationality / Age : Malaysian / 40 Date of Appointment : 26 March 2021 Areas of Expertise : Accounting, Finance Qualifications 1. B .A (Hons) Accounting and Finance, University of East London 2. D iploma in Accounting, Kolej Agama Sultan Zainal Abidin (Kusza), Malaysia 3. D iploma in Public Administration, lnstitut Tadbiran Awam Negara (INTAN), Malaysia 4. E xecutive Fellows Programme (EFP), Australia & New Zealand School of Government (ANZSOG) Tenure as Director : 1 year 1 month Encik Syaiful Hafiz Bin Moamat Mastam was appointed to the Board of Destini Berhad in March 2021. He holds a Bachelor of Arts in Accounting and Finance from University of East London, United Kingdom and a post-graduate Diploma in Public Administration fromNational Institute of Public Administration Malaysia. His accounting career began in 2003 for various companies prior to joining the civil service in 2007 as an Administrative and Diplomatic Officer for the Prime Minister’s Department. He is currently the Administrative & Diplomatic Officer for Government Investment Companies Division at the Ministry of Finance. He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. SYAIFUL HAFIZ BINMOAMAT MASTAM Non-Independent & Non-Executive Director 19 ANNUAL REPORT 2021 • DESTINI BERHAD
PROFESSOR DATIN DR SUZANA BINTI SULAIMAN @MOHD SULEIMAN Independent & Non-Executive Director BOARD OF DIRECTORS Chairperson of the Audit Committee Chairperson of the Risk Management Committee Member of the Nomination and Remuneration Committee Nationality / Age : Malaysian / 57 Date of Appointment : 8 January 2013 Areas of Expertise : Management Accounting Qualifications 1. P hD in Management Accounting, University of Edinburgh, Scotland, United Kingdom 2. M aster of Accounting (Distinction), Curtin University of Technology, Perth, Australia 3. F ellow Chartered Institute of Management Accountants (CIMA), United Kingdom (FCMA) 4. Chartered Global Management Accountants (CGMA) 5. C hartered Accountant (CA), Malaysian Institute of Accountants (MIA) Tenure as Director : 9 years Professor Datin Dr Suzana Binti Sulaiman@Mohd Suleiman is a Senior Professor inManagement Accounting at Faculty of Accounting, Universiti Teknologi MARA (“UiTM”). She has more than 13 years of administrative posts at UiTM. Currently, she is the Deputy Vice Chancellor (Academic and International). Prior to that she was the Assistance Vice Chancellor at the Institute of Quality and Knowledge Advancement (InQKA) and Institute of Leadership & Quality Management (“iLQAM”), Deputy Dean (Academic), Postgraduate Coordinator and Head of Asian Management Accounting Research Centre (“AMARC”), at Accounting Research Institute (“ARI”). She has 31 years of experience in the Education Field with UiTM. She is also actively involved with Chartered Institute of Management Accountants (“CIMA’’) (UK) activities and CIMA Malaysia Country Branch. She does not hold any directorships in any other public listed companies. She has no family relationship with any Director and/ or major shareholder of the Company and has no conflict of interest with the Company. She has not been convicted for any offences within the past five years other than traffic offences, if any. 20 DESTINI BERHAD • ANNUAL REPORT 2021
DATO’ CHE SULAIMAN BIN SHAPIE Independent & Non-Executive Director Chairman of the Nomination and Remuneration Committee Member of the Audit Committee Member of the Option Committee Nationality / Age : Malaysian / 65 Date of Appointment : 8 January 2013 Areas of Expertise : Finance, Agriculture Qualifications 1. B achelor in Economics (Hons.) from Universiti Kebangsaan Malaysia Tenure as Director : 9 years Dato’ Che Sulaiman Bin Shapie is currently running his own business in various fields. He has over 12 years of experience in the financial and credit management with Bank IslamMalaysia Berhad from 1984 until 1996. He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. 21 ANNUAL REPORT 2021 • DESTINI BERHAD
DATO’ MOHD ZAHIR BIN ZAHUR HUSSAIN Independent & Non-Executive Director Member of the Audit Committee Member of the Nomination and Remuneration Committee Member of the Risk Management Committee Nationality / Age : Malaysian / 47 Date of Appointment : 8 October 2020 Areas of Expertise : Finance Qualifications 1. B achelor of Commerce (Accounting) from University of New South Wales, Sydney, Australia 2. O xford Global CEO Program from Said Business School, Oxford University, United Kingdom 3. Certified Financial Planner 4. M ember of Malaysian Institute of Accountants 5. F ellow at Chartered Accountants Australia & New Zealand Tenure as Director : 1 year 6 months Dato’ Mohd Zahir Bin Zahur Hussain was appointed to the Board of Destini Berhad in October 2020. He holds a Bachelor of Commerce (Accounting) from University of New South Wales, Australia. He has an established career as an auditor with various accounting firms including PricewaterhouseCoopers and Deloitte & Touche both at their Malaysia and overseas offices. He has extensive experience in the fields of auditing, accounting and finance and is currently a member of Chartered Accountants Australia and New Zealand as well as the Malaysian Institute of Accountants. He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/ or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. BOARD OF DIRECTORS 22 DESTINI BERHAD • ANNUAL REPORT 2021
Member of the Risk Management Committee Nationality / Age : Malaysian / 56 Date of Appointment : 3 January 2011 Areas of Expertise : Finance, Construction Qualifications 1. B achelor Degree in Finance from St. Louis University, Missouri, United States of America Tenure as Director : 11 years Encik Abdul Rahman Bin Mohamed Rejab has over 15 years of experience in the financial and asset management with his last attachment in AmBank (Malaysia) Berhad. He exited the financial sector to join the Company as an Independent Non-Executive Director in January 2011. He then re-designated to an Executive Director in October 2012. He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. ABDUL RAHMAN BINMOHAMED REJAB Executive Director 23 ANNUAL REPORT 2021 • DESTINI BERHAD
NORZILAH BINTI MOHAMMED Executive Director Nationality / Age : Malaysian / 57 Date of Appointment : 26 March 2021 Areas of Expertise : B anking, Finance, Risk Management, Business Administration, and Corporate Management and Operations Qualifications 1. B achelor of Science in Business Administration, majoring in Accounting from California State University, Sacramento, United States of America 2. Qualified Risk Director from the Institute of Enterprise Risk Practitioners 3. C ompleted Womens Directors Onboarding Training Programme from the Malaysian Directors Academy (MINDA) and NAM Institute for the Empowerment of Women (NIEW) Tenure as Director : 1 year 1 month Puan Norzilah Binti Mohammed has over 30 years of experiences in the banking, finance, risk management, business administration and corporate management and operations. She was previously the Group Deputy Chief Executive Officer for 2 years and was appointed to the Board of Destini Berhad as Executive Director in March 2021. She has had an illustrious career in the banking and finance industry, where she last helmed the position of President and Chief Executive Officer to Export-Import Bank of Malaysia Berhad (“EXIM Bank”), prior to joining Destini. PuanNorzilah also holds several honorary positions which include her appointment as a Business Advisory CommitteeMember of theMalaysia China Business Council and the Head of Cluster for Banking and Finance at the Centre of Women Advancement and Leadership in University Kuala Lumpur. She does not hold any directorships in any other public listed companies. She has no family relationship with any Director and/ or major shareholder of the Company and has no conflict of interest with the Company. She has not been convicted for any offences within the past five years other than traffic offences, if any. BOARD OF DIRECTORS 24 DESTINI BERHAD • ANNUAL REPORT 2021
MUHAYUDDIN BINMUSA Group Chief Executive Officer Date of Appointment : 15 September 2021 Areas of Expertise : C orporate Affairs, Finance Qualifications • B achelor of Commerce (Honours), Carleton University, Ottawa, Canada • D iploma, Grade 13, Mack International Academy of Arts & Sciences, Toronto Canada Working Experience • M anaging Director/Chief Executive Officer, Computer Forms (M) Berhad (1998-2021) • C orporate Affairs Manager, Federal Furniture Holdings (M) Bhd (1993-1996) • H ead of Banking/Assistant Vice-President, Bank of Commerce (M) Berhad (1991-1993) • F inancial Officer, Lembaga Letrik Negara (LLN) (19851987) He holds directorship as an Independent Director inMalpac Holdings Berhad. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. ABDUL RAHMAN BINMOHAMED REJAB DESTINI BERHAD, EXECUTIVE DIRECTOR (His profile is set out in the Board of Directors Profile) NORZILAH BINTI MOHAMMED DESTINI BERHAD, EXECUTIVE DIRECTOR (Her profile is set out in the Board of Directors Profile) KEY SENIOR MANAGEMENT 25 ANNUAL REPORT 2021 • DESTINI BERHAD
ARIS KEFLI BINMOHAMAD YUSOF Group Chief Financial Officer Date of Appointment : May 2017 Areas of Expertise : Accounting Qualifications • A member of Malaysian Institute of Accountants, Malaysia • C hartered Institute of Management Accountant, United Kingdom • A member of Chartered Practicing Accountants, Australia • M aster in Business Administration, Leicester, United Kingdom • Advanced Diploma in Accountancy, UiTM Working Experience • H ead of Accounts and Finance, Destini Berhad (20122017) • Chief Financial Officer, Imatex Berhad (2000-2012) • Accountant, U-Wood Holding Berhad (1996-2000) • Senior Accounts Executive, Propel Berhad (1993-1996) He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. SHIRAD BIN ANUAR Senior Vice President, Legal and Secretarial Date of Appointment : March 2017 Areas of Expertise : Law and Corporate Secretarial Qualifications • M aster in Business Administration in Islamic Banking and Finance from International Islamic University Malaysia • LLB (Hons) Degree fromWolverhampton Polytechnic • Certificate of Legal Practice • Licensed Company Secretary Working Experience • C ompany Secretary and Legal Advisor, Utusan Melayu (Malaysia) Berhad (2013-2017) • Legal Advisor, Naza TTDI Sdn Bhd (2011-2013) • C ompany Secretary andLegal Advisor, GJAEngineering Sdn Bhd (2009-2011) • Legal Advisor, Pantai Holdings Berhad (2007-2009) • Legal Advisor, Landmarks Berhad (2001-2007) • Legal Manager, DRB-Hicom Berhad (1997-2001) • A ssistant Legal Manager, Faber Group Berhad (19951997) • Magistrate (1991-1995) He does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. KEY SENIOR MANAGEMENT 26 DESTINI BERHAD • ANNUAL REPORT 2021
NOORHAYATI BINTI JALI Senior Vice President, Treasury Date of Appointment : July 2018 Areas of Expertise : 1. Accounts and Finance 2. Financial Management 3. Investment Management Qualifications • M aster’s in Business Administration, Finance from University Utara Malaysia, City Campus, Kuala Lumpur • B A (Hons) Accounting and Finance from South Bank University London, United Kingdom • D iploma in Accountancy, MARA Institute of Technology Perlis, Malaysia • A ssociated Member of the Financial Planning Association of Malaysia (“FPAM”) Working Experience • H ead of Finance – Education Department, Yayasan AMIR, a non-profit initiative by Khazanah Nasional Berhad (2013-2016) • F inance Consultant, UiTM Holdings Sdn Bhd (20122013) • H ead of Finance, Envair Holdings Berhad (2011-2012) • C hief Financial Officer, Viztel Solutions Berhad (20062010) • S enior Manager, Accounts and Finance, Benar Prima Capital Sdn Bhd (2005-2006) • C hief Financial Officer, MNR Consolidated Berhad (1999-2004) • C redit Executive – Accounts Payable, Sunway Hotel Seberang Jaya, Penang (1997-1998) • Operations Officer, Bank of Commerce Penang (1995) She does not hold any directorships in any other public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. KHAIRUL RIZAL BIN OSMAN Head of Internal Audit Date of Appointment : 1 April 2022 Areas of Expertise : 1. Accounts and Finance 2. Financial Management 3. Investment Management Qualifications • B achelor in Business Administration from Mara University of Technology • D iploma in Banking Studies from Mara University of Technologies • C ertified in Internal Auditing for Financial Institutions (CIAFIN) • Associate Qualification in Islamic Finance (AQIF) Working Experience • Head of Internal Audit, Destini Berhad (2015 - 2018) • A ssistant Manager, Malaysian Industrial Development Finance (2007 - 2015) • H ead, Fraud & Authorisation Department, Cards Business, Affin Bank Berhad (2005 - 2007) • A ssistant Vice President, Group Internal Audit, Affin Bank Berhad (2000 - 2005) • S enior Executive, Group Internal Audit, Bank Islam (M) Berhad (1997 - 2000) • Credit Officer, Bank Islam (M) Berhad (1993 - 1996) He does not hold any directorships in any public listed companies. He has no family relationship with any Director and/or major shareholder of the Company and has no conflict of interest with the Company. He has not been convicted for any offences within the past five years other than traffic offences, if any. 27 ANNUAL REPORT 2021 • DESTINI BERHAD
OUR PERFORMANCE Aviation Marine Land Systems Energy Revenue (RM'million) PATNCI / LATNCI (RM'million) 82.53 61.56 0.03 -1.43 29.75 4.12 3.35 -3.03 0 20 40 60 80 100 0 5 10 15 20 25 30 35 -1.5 -1.2 -0.9 -0.6 -0.3 0.0 0.3 -10 0 10 20 30 40 50 60 70 80 28 DESTINI BERHAD • ANNUAL REPORT 2021
Revenue (RM'million) Total Assets (RM'million) Earnings Per Share (sen) Profit/(Loss) Before Tax (RM'million) Profit/(Loss) After Tax (RM'million) Net Assets Per Share (sen) 173.87 190.13 297.74 418.04 683.35 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 5.26 -192.96 -251.24 9.73 43.94 2.46 -190.18 -249.54 2.32 27.43 0.19 -14.62 -21.45 0.15 2.6 10 9 22 44 44 446.43 525.51 585.37 793.55 848.16 29 ANNUAL REPORT 2021 • DESTINI BERHAD
EXECUTIVE CHAIRMAN AND MANAGEMENT DISCUSSION & ANALYSIS Focusing on our fundamentals and sharpening our focus on our core businesses was what made us able to manage the ongoing challenges in 2021. The brunt of the COVID-19 pandemic continued into the year 2021 with the periodic resurgence of the virus’ variants which caused widespread economic disruption from uncertainties and market volatility for the second year that sent the global economy into a recession. Seeing that the pandemic worsened during the first half of the year, the Malaysian Government pushed for its immunization programme which saw 90% of the country’s adult population being fully inoculated in the fourth quarter of the year. The high inoculation rate allowed for the gradual relaxation of mobility restrictions in the country which encouraged economic growth. The Malaysian economy improved and grew by 3.1%, a recovery from the drop of 5.6% in 2020 from strong exports that was driven by the demand in global digitalization growth and high commodity prices as well as the Governments support through several economic stimulus packages and budgetary measures. Aside from the COVID-19 virus, the call for achieving net zero emissions by 2050 also dominated the headlines in 2021. Global communities came together discussing on acting on climate damage, paving the push for global energy transition and a sustainable future with the implementation of clean technology. Amidst a volatile economic and operational environment during a prolonged health crisis, Destini has been resilient in sharpening its focus on its fundamentals which are its four core businesses that have been a driver for the Group since before the pandemic. Despite the difficulties, this focus gave clarity to steer the Groups businesses in these uncertain times. That being said, on behalf of the Board of Directors, we present to you Destini’s Annual Report for the Financial Year Ended December 31, 2021 (“FYE2021”). ACHIEVEMENTS Although the year under review was one of the most challenging years the Group has experienced since its incorporation, we managed to make progress with several corporate exercises. In February of the year, Destini entered into a 70:30 Joint Venture and Shareholders Agreement (“JVSA”) with Keretapi Tanah Melayu Berhad (“KTMB”) that would enable the Group to provide heavy maintenance work on rail assets in Malaysia. Following that, during the second half of the year, the Group entered into a Memorandum of Understanding (“MOU”) with Siemens Mobility Sdn Bhd for the latter to act as Destini’s Technical Assistance Advisor in providing maintenance, repair and overhaul (“MRO”) services for electrical trainset components in Malaysia. Destini had also entered into a Heads of Agreement (“HOA”) with Indonesia State-Owned PT Industry Kereta Api (“PT INKA”) to identify and pursue opportunities in the railway systembusiness sector and infrastructure projects in Indonesia, Malaysia and potentially region. For its energy division, the Group managed to secure an award from Repsol Oil and Gas Malaysia for the provision of tubular handling and conductor installation, equipment and services. Marking its foray into renewable energy, the Group ended the year with its maiden solar project from Indah Water Konsortium Sdn Bhd (“IWK”) for the engineering, procurement, construction and commissioning (“EPCC”) of solar photovoltaic (“PV”) systems at IWK’s sewerage plants across Malaysia. TheGroup’sperseverancebore fruit despite thechallenges and uncertainties encountered during the year. 30 DESTINI BERHAD • ANNUAL REPORT 2021
FINANCIAL REVIEW Destini strengthened its balance sheet and managed its cashflow prudently on top of tightening capital and operating expenditure by advocating a disciplined approach to capital allocation and managing liquidity. This has enabled us to weather the adverse challenges during the year in review. Notwithstanding that, Destini was able to return profitable by reporting a profit after tax and non-controlling interest (“PATNCI”) of RM3.01 million in FYE2021 as compared to a loss after tax and non-controlling interest (“LATNCI”) of RM190.64 million the previous year. Revenue however saw an 8% decline to RM173.87 million in FYE2021 from RM190.12 million in FYE2020. During the year in review, the Group was able to generate better earnings from the continuation of several projects under its aviation and defence business segment. As restrictions began to relax, more aircraft MRO activities saw a revival as more aircrafts started to fly again. In addition, the Group saw commendable progress on the supply of its six MD530G helicopters to the Royal Malaysian Army (“RMA”) that is moving towards the completion of the remaining contract obligations that were put to halt due to the pandemic in the previous year. Echoing the aviation and defence segments revival is the Groups energy segment that contributed to thebottomline of the Group with the execution of projects that were deferred during the peak of the pandemic. The Group had also secured additional contracts during the year in review which saw a boost in activities in its energy segment. The Group’s financial performance reflected the impact from a combination of factors which include cashflow difficulties and lower business activities due to prolonged pandemic restrictions imposed by our Government. Nevertheless, strategies were in place and implemented to enable the Group to navigate through the uncertainties. Furthermore, the Group went on an assessment of its investments and re-evaluated its assets to reorganize or dispose of non-performing and non-core assets to ensure optimization of the Group balance sheet, including capital structure. With that Destini went on a corporate exercise to dispose of its 51% equity interest in THHE Destini Sdn Bhd for RM121,131 in April 2021. THHE Destini Sdn Bhd is a joint venture company with TH Heavy Engineering Berhad that was incorporated to fabricate three Offshore Patrol Vessels (“OPV”) for the Malaysian Maritime Enforcement Agency (“MMEA”). More details on the Group’s business segments financial review will be elaborated further in this Annual Reports Operational Review. 31 ANNUAL REPORT 2021 • DESTINI BERHAD
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