GROUP FINANCIAL PERFORMANCE1 Overview of FY2024 Results The Group recorded a total revenue of RM1.17 billion in FY2024, a marginal increase of 0.7% year-on-year. This growth was supported by stronger contributions from the Technology and IT Business Segments, while the Energy Business Segment saw a decline due to lower production volumes and marginally lower price. After accounting for tax and operational factors, a loss after tax of RM89.6 million was reported. This marked a significant improvement compared to the RM293.5 million loss in FY2023. The better result was mainly attributed to lower deferred tax expenses and tighter cost control across core operations. The improved bottom line reflects early progress from ongoing transformation and cost optimisation efforts across the Group’s core businesses. Profitability and Margins The Group recorded a gross profit of RM220.9 million in FY2024, representing a year-on-year decline of RM42.4 million. The decrease was primarily driven by higher operating costs in the Energy Business Segment. Normalised earnings before interest, taxes, depreciation and amortisation (“EBITDA”) declined by 19% to RM168.8 million. This trend was also reflected in the Group’s bottom line, with a loss before tax of RM78.4 million recorded in FY2024, compared to a pretax profit of RM4.2 million in the previous year. While profitability was affected by operational cost pressures, the Group remains focused on strengthening margin discipline and repositioning for longer-term earnings resilience. Capital Allocation and Funding In FY2024, the Group took deliberate steps to strengthen its financial position. A key milestone was the full settlement of the Pareto bond by Ping in July. This shift lowered financing costs and provided more stability for long-term planning. Across the Group, capital expenditure remained disciplined, with resources directed toward high-impact, strategically aligned initiatives. In light of ongoing market uncertainty and cost pressures, we also maintained a strong focus on operational efficiency and cash flow preservation. Financial Position and Liquidity The Group maintained a cautious stance on liquidity and balance sheet management throughout FY2024. Cash flows were actively monitored across all business units, particularly in response to rising operating costs and evolving market conditions. The Group also made selective funding decisions to support its strategic priorities while preserving financial flexibility. During the year, the Group reclassified the Telco division’s remaining assets as held for sale, in line with plans to exit the business. This move aligns with efforts to streamline the portfolio and strengthen the Group’s capital position. Borrowings were realigned during the year, resulting in better-structured financing profile for the Group. These changes helped to reduce financing risk and support long-term planning. While deferred tax adjustments continued to affect net earnings, they had no material impact on the Group’s underlying cash flows. Overall, the Group closed the year with a resilient financial position, having taken steps to balance growth ambitions with prudent capital and liquidity management. Reference Note For further insights into the financial and operational performance of each business segment, please refer to the Business Segment Financial Performance and Review section that follows. 34 Management Discussion And Analysis / Performance Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 PERFORMANCE REVIEW 1 Where comparisons are made against the previous year’s performance, the data used refers to the 12-month financial period of FY2023.
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