Information Technology Despite recording a dip in overall YoY revenue due to our streamlining and divestment activities, our Information Technology Division steadily improved its performance throughout FY2022, with our revenue increasing from RM44.1 million in Q1 to RM60.9 million in Q4. This was driven primarily by better results across our Trade Facilitation, Tech Consulting & SI, and Subsea Telecommunications businesses. A key development in our Trade Facilitation operations was Dagang Net’s successful procurement of a three-year extension to operate Malaysia’s National Single Window (“NSW”) until August 2024. To enhance future revenue growth, we have begun deploying new services, such as Non-Preferential Certificate of Origin (“eNPCO”), which is currently undergoing a pilot stage testing with eight companies, and Air Cargo System, which is under evaluation by government agencies and terminal operators. In addition, we also made significant steps forward in its international expansion plans, with pilot implementation for eCert exchange services underway in New Zealand since July 2022 and plans for implementation in Australia already ongoing. Within our Tech Consulting & SI business, we successfully secured the iGFMAS maintenance and support contract worth RM88 million from the Ministry of Finance Malaysia during FY2022, marking our growing engagement with larger Enterprise Resource Planning (“ERP”) system implementation and customisation projects. We also generated new sales pipelines in other contracts focused mainly on application development, such as Analytics, Big Data, Artificial Intelligence and Robotics Process Automation. OVERVIEW OF FINANCIAL POSITION The Group is pleased to report an extremely healthy consolidated financial position in FY2022, spearheaded by the immense improvement in performance achieved by SilTerra in our Technology division. The two acquisitions have catapulted our total assets to RM4,626 million in FY2022, a 112 per cent increase from the previous year. Our total cash stands at RM1,015.2 million, with the combined LTA deposits of USD110 million received by SilTerra helping us breach the one billion mark for the first time. Although our borrowings increased to RM319.36 million, predominantly due to higher loan drawdowns in our Energy division by Ping, we maintain a strong net cash position and a healthy gearing ratio of 0.2, which provides us with sufficient headroom for higher borrowing plans if necessary to fund future growth and expansion plans. Meanwhile, the Group’s net assets per share increased about 90 per cent to RM0.74 in FY2022 compared to RM0.39 in the previous year, while earnings per share have almost doubled in the past year, increasing by 183 per cent from 6.24 sen to 17.68 sen. REVENUE RM199.83 MILLION EBITDA RM58.56 MILLION CAPITAL MANAGEMENT As evidenced by the RM832 million increase in our shareholder’s equity for FY2022, we are committed to reinvesting our earnings back into the business to achieve our continuous growth objectives. At the same time, strong financial discipline coupled with good governance and strong due diligence together with continuous human capital development enable us to achieve sustainable long-term expansion. The major capital investments undertaken this year include capital expenditure to augment the manufacturing capacity of SilTerra as well as the purchase of a new floating production storage and offloading (“FPSO”) vessel by Ping. At the same time, the Group remains steadfast in its efforts to reward the loyalty of our shareholders and is pleased to have introduced a new Dividend Policy across all of our companies in FY2022. As per this policy, we may issue dividends of up to 50 per cent of net profits as long as the company prioritises on reinvestment for sustainable growth and expansion and maintains a strong cash position. 67 DNeX INTEGRATED REPORT 2022
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