16 Annual Report 2025 This Statement contains the Group’s review and analysis of the business operation and performance for the financial year ended 30 June 2025. It should be read in conjunction with the audited financial statements of the Group as set out in this Annual Report. BUSINESS REVIEW EForce is a leading information technology solution provider involved in the development, provision and maintenance of application and system solutions for the financial services industry, specifically stockbroking companies and investment banks. EForce organises its business activities into four (4) segments. They are: 1. Application Solutions (“AS”) for sales of software applications and products on outright purchase basis. 2. Maintenance Services (“MS”) for provision of maintenance services. 3. Application Services Provider (“ASP”) for provision of application services on monthly recurring fixed and variable charges. 4. Others for investment holding and etc. The Group’s products include CyberBroker Front Office (for client-server, web and mobile-based stock trading system), CyberBroker Middle Office, CyberBroker Back Office (including Custodian and Nominee System), StockBanking System (including Share Margin Financing System) and Fundamental Analysis System. EForce customers are familiar with our reliable and stable solutions to fulfil their mission critical role as capital market intermediaries. Over the years, EForce earned and retained a solid reputation in consistently meeting, and at times, exceeding customers’ expectations. The Group adopts a collaborative approach with customers to continuously assess their evolving business needs and develop good quality and timely applications to fulfil them. REVIEW OF FINANCIAL RESULTS For the year up to 30 June 2025, the Group achieved total revenue of RM27.4 million, RM1.6 million or 6% lower compared to last year, with ASP segment contributing 71% of total revenue. The primary reason for reduced performance is lower overall trading activities at Bursa Malaysia and lower billings recorded for AS segment. Compared to previous financial year, Profit Before Tax registered a drop of RM3.9 million to RM7.4 million, while Profit After Tax recorded at RM5.1 million, lower by RM3.2 million, primarily due to lower revenue and unrealized loss on foreign exchange. Profit After Tax would have been RM6.7 million in current financial year against RM7.5 million last year if translation loss in foreign exchange is excluded. REVIEW OF OPERATIONS The Group’s business performance is supported by a cohesive and flexible operational management structure, agile to adapt to changing business needs and maintained clear focus and discipline to execute projects critical to our long-term growth. EForce works closely with our customers and monitors emerging trends locally and globally to uncover opportunities for new applications and enhancements to our product line-up. To expand our competitive edge, the Group continues to research innovative solutions and ensures a healthy product development pipeline. The latest focus is on Artificial Intelligence (“AI”) whereby we have enabled Microsoft Co-Pilot for developers to increase their work rate and actively research on AI applications to help our broking customers increase their business volume and productivity. In the year under review, The Group participated in a few Requests for Proposal exercises and successfully secured a multi-year project with an existing customer. EForce has also developed its own multi factor authentication solution in response to recent industry wide cyber-security incident, and currently is in implementation stage. Fortunately, none of our customers reported any system breach that resulted in unauthorized trading in that incident. During this period, the Group embarked on enhancement projects to implement government’s Expanded Sales and Service Tax (“SST”) scope. EForce also launched a new application called “Engage”, enabling customers to engage and reward users for using their platform to trade. Roll out of our new web trading platform (eForce One), new mobile app (Mobile Trader 3.5G), advanced charting tools (eForce Interactive X-Chart), new back-office system (eForce EmPower) and enhanced market data feed distribution engine are gathering pace, with a mix of on-going implementations and some are now live. MANAGEMENT DISCUSSION AND ANALYSIS
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