7 Leadership Insights DAGANG NeXCHANGE BERHAD Integrated Report 2024 Group Performance Overview* DNeX recorded RM1.2 billion in revenue for the financial year ended 31 December 2024 (“FY2024”), primarily driven by the Technology Business Segment, which contributed RM629.8 million (54%) followed by the Energy Business Segment at RM319.0 million (27%) and the IT Business Segment at RM225.2 million (19%). Despite revenue growth of RM11.2 million, gross profit declined from RM263.4 million in FY2023 to RM220.9 million in FY2024, mainly due to higher operational costs and external market pressures affecting profitability across the divisions. Business Segment Performance Review The Technology Business Segment saw a turnaround, posting a gross profit of RM37.4 million (FY2023: gross loss of RM6.7 million), an improvement of RM44.1 million. This was largely driven by higher wafer shipments, particularly in emerging technology products, which improved the product mix. Increased wafer output and pricing stability also helped offset higher production costs and arbitration-related expenses. In the Energy Business Segment, gross profit fell to RM100.4 million (FY2023: RM184.7 million) due to increased operating expenses per barrel driven by extended maintenance shutdowns and oil contamination issues in the gas system. The production volume was negatively affected by the prolonged shut down which impacted both revenue and profitability. The IT Business Segment (excluding Telco division) recorded an increase of RM20.6 million in gross profit to RM85.6 million (FY2023: RM65.0 million). Growth was supported by stronger revenue from trade facilitation services, continued technology consulting work for Malaysia’s public sector and the completion of key milestones in a largescale government IT infrastructure project. Meanwhile, the Telco division recorded RM2.5 million gross loss in FY2024 (FY2023: RM20.3 million gross profit) in line with the Group’s divestment strategy. * Note : Comparison based on 12 months in FY2024 to 12 months in FY2023 (January to December). Building a More Agile, Efficient and Future-Ready DNeX In FY2025, DNeX will focus on consolidating its three major business segments to create a more streamlined and cohesive organisation. This strategic realignment will enhance internal governance, financial oversight and operational efficiency, ensuring that leadership structures and business execution evolve in tandem with the Group’s growth ambitions. By integrating key functions more effectively, this consolidation will drive stronger synergies, optimise resource allocation and unlock economies of scale - enabling greater operational efficiency, cost reductions and a stronger competitive position. As part of this consolidation, we have formalised an Executive Committee (“EXCO”) at DNeX, the holding company. This structured leadership framework will play a key role in aligning strategies, improving coordination and fostering a more cohesive operational structure. Bringing together key functional leaders in finance, human resources, strategy, IT and legal, along with the CEOs of each business segment, EXCO will strengthen governance while enabling crossFaizal Sham Abu Mansor Group Chief Executive Officer GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT
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