ENRA Group Berhad Annual Report 2018

24 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) Both ENRA Kimia and ENRA SPM are examples of ENRA’s ability to set up new divisions and successfully pursue new projects and contracts. A result of the Group’s continuing efforts to replicate its earlier successes is the setting up of a new subsidiary, ENRA Power Systems Sdn. Bhd. (“EPS”) to carry out the business of marketing, selling and distribution of power generation-related equipment and machinery as well as provision of after-sales services including maintenance, repair and overhauling. EPS had signed a distributorship agreement with a prominent international industrial service company for one of its newest products. We aspire to develop this new business to expand beyond distributorship into after-sales services which includes maintenance, repair and overhauling. As such, we hope that this venture will serve to create value and provide recurring income for the Group. GENERAL AND OTHER AREAS The Board and Management are also actively evaluating businesses and projects in other industries that will create value for the shareholders. Our other partnerships, such as the ENRA Emrail Sdn. Bhd., a joint venture between ENRA and Emrail Sdn. Bhd., is still active, with discussions and tenders being undertaken. We are hoping to achieve significant progress in the upcoming year. Further, with the impending proceeds from the Divestment Exercise, we will be able to redeploy it towards higher yielding businesses and investments. DIVIDEND POLICY While the main objective is to invest in ENRA’s growth, the Board will consider rewarding shareholders with dividends arising from the earnings from our main operations whilst taking into consideration the needs of our growth and acquisition requirements. MANAGEMENT DISCUSSION AND ANALYSIS cont’d