GROWTH DRIVERS Now in the second year of our restructuring journey that began in FY2020/2021, the Group maintains a strong focus on ensuring that financial fundamentals are being met or surpassed within all of our business entities. Our priority is for all operating companies to achieve positive cash flow from operations every quarter in order to be self-funding and independently facilitate their individual expansion strategies. We are confident that as we continue to build a strong cash base, enhance our production efficiencies and inculcate a strong mindset of achieving excellence in performance, we will have the potential to unlock exponential growth on a larger scale. Consequently, we recognise the importance of allocating greater resources into our high performing units and divesting from less profitable businesses if our price and requirements are met. We believe that our Technology division possesses the greatest potential for long term financial growth, as the demand for semiconductors is expected to continue increasing in conjunction with the emergence of new technologies. To this end, we have established a long-term strategy to elevate DNeX into becoming a key player in the global semiconductor supply chain and have signed MOUs with leading global technology players to create cutting-edge new products and ramp up our research and innovation capabilities. These include a partnership with top Taiwanese multinational electronics contract manufacturer Foxconn to build and equip a brand new 12-inch wafer fabrication facility in Malaysia that will produce 40,000 wafers per month, as well as discussions with a Europe-based research & development organisation to establish and jointly operate a Semiconductor R&D Centre, also in Malaysia. In the Energy Division, we are confident that our increasing adoption of sustainable practices will be a strong driver of future growth and have thus partnered with UK-based Cerulean Winds Limited (“Cerulean Winds”) to deploy and operate a dedicated offshore floating wind turbine that will power Excalibur, the new FPSO purchased by Ping to service the Avalon oil field. This pioneering initiative will minimise our diesel usage on Excalibur and reduce our GHG emissions, while simultaneously elevating Ping’s reputation as the operator of one of the first oil & gas facilities that meets the UK government’s emissions reduction targets. Meanwhile, the IT Division has commenced activities on two exciting joint ventures that will catapult our reputation as a technology titan both nationally as well as globally. Our MOU collaboration with Accenture Solutions Sdn Bhd signed in May 2022 is designed to drive Malaysia’s economic growth in high value areas such as digitalisation, cloud computing, and the Fourth Industrial Revolution via the development of joint-offerings that will accelerate the digital transformation of Malaysia’s public services and GLCs. In August 2022, we also signed a Collaborative Framework Agreement (“CFA”) with Saudi Arabia’s Ajlan & Bros Holding Group, which is one of the largest private sector conglomerates in the Middle East region, to explore potential synergies and collaboration in the areas of Technology, Software Products and Platforms for Facilitating Trade, Oil & Gas Production and Trade, Software Development and System Integration & Consultation Services. CHALLENGES TO PERFORMANCE AND RISK MITIGATION While our Technology Division has performed admirably, we remain cognisant of challenges that may curtail our ability to meet growth, revenue and operational objectives. To ensure that we are able to maintain an uninterrupted supply of raw materials such as substrates, chemicals and gases, we have established together with our partner an enhancement procurement policy that limits our reliance on single suppliers and safeguards us with alternative options to mitigate potential disruptions from primary suppliers. The consortium has also undertaken efforts for continuous improvements on the process and operational efficiencies to better manage production costs and wastages. Third-party consul tants wi th extensive years of semiconductor manufacturing experience were hired to oversee the initiatives. The factory successfully improved the manufacturing yield DAGANG NeXCHANGE BERHAD 68 GROUP CHIEF FINANCIAL OFFICER'S REVIEW
RkJQdWJsaXNoZXIy NDgzMzc=