30 Management Discussion And Analysis / Strategic Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 STRATEGIC REVIEW STRATEGIC DIRECTION FY2024 marked a defining period in the Group’s ongoing transformation journey, shaped by a rapidly evolving operating environment and the need for long-term resilience. In navigating macroeconomic uncertainty, shifting regulatory landscapes and rising stakeholder expectations, we remained focused on executing strategies that not only protect value, but create it. In FY2024, the Group saw key leadership changes, including the redesignation of Tan Sri Dato' Sri Haji Syed Zainal Abidin Mohamed Tahir as Non-Independent Non-Executive Chairman. In parallel, Faizal Sham Abu Mansor was appointed as Group Chief Executive Officer, while Vinie Chong Pui Ling joined as Group Chief Financial Officer. These appointments reflect the Group’s commitment to strengthening leadership capabilities as we advance our transformation agenda. At the heart of our direction lies a clear ambition: we aim to deliver sustainable growth through a well-diversified, future-ready portfolio. While our three core business segments each face distinct market realities, they are united by common strategic principles. These include deepening localisation to strengthen operational control, forging meaningful technology partnerships to accelerate innovation and aligning more closely with Environment, Social and Governance (“ESG”) and compliance expectations. In navigating market shifts and emerging challenges, we recognise that execution speed, continuous monitoring and timely adjustments are critical differentiators. By embedding agility into our strategy execution, we aim to stay ahead of the competition, capitalise on new opportunities and deliver sustainable growth and returns to our stakeholders. Portfolio Diversification Diversification remains a cornerstone of our growth strategy, allowing the Group to maintain balance amid cyclical pressures and industry-specific disruptions. In FY2024, we continued to broaden our revenue base by expanding into high-value and high-potential segments across all core business segments. In the Technology Business Segment, we shifted further into niche semiconductor applications with higher commercial defensibility, supporting long-term relevance in areas such as AI and smart mobility. In the Energy Business Segment, we rebalanced our upstream portfolio by prioritising local assets while cautiously reassessing our overseas exposure in light of fiscal developments. In the IT Business Segment, we broadened our solutions base to include high-trust infrastructure and public-facing digital platforms, aligning with national and sectoral digitalisation goals. This diversification across industries, geographies and technology applications enhances the Group’s ability to absorb shocks, unlock new growth avenues and build a more resilient earnings profile over time. Financial Prudence We continued to uphold a disciplined approach to capital management in FY2024, balancing operational demands with long-term sustainability. Across the Group, we took steps to strengthen our financial position through portfolio restructuring, cost optimisation and more flexible funding arrangements. This included refining our capital structure within the Energy Business Segment and exercising greater selectivity in investment allocation, particularly in asset-heavy operations. Improved cost management and margin discipline across other segments supported our ability to reinvest in strategic growth areas without compromising financial stability. Anchored in these foundations, our strategy is guided by five key pillars.
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