20 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) FINANCIAL PERFORMANCE For FY2023, MYEG delivered another record year, with revenue reaching a new high of RM774.26 million compared with RM651.11 million in the previous financial year, while profit after tax (“PAT”) reached a record RM486.84 million, a 21.59% increase from the previous year (FY2022: RM400.40 million). The increases in Revenue and PAT were primarily attributable to contribution from newly launched services from the Zetrix blockchain platform; contribution from the sale of Zetrix tokens as well as from the Initial Exchange Offering of Zetrix tokens on three major global digital asset exchanges; contribution from the existing concession and commercial services; and an increase in foreign worker job matching service due to the uplifting of a freeze on foreign worker recruitment. The stronger PAT was recorded notwithstanding the higher base effect arising from a one-off recognition of fair value gain in investments from the listing of Agmo Holdings Berhad in FY2022. Should the one-off recognition of fair value gains be excluded from consideration, PAT would have shown an even sharper increase in FY2023 over the previous year. With the growing interest in digitalisation and the transformative potential of blockchain, MYEG has benefitted directly as it experienced a strong reception of the IEO of Zetrix and the interests generated among renowned partners around the region to jointly carry out new Web3 projects. In meeting the prevailing and emerging challenges to make cross-border trade and delivery of government and commercial services more efficient, secure and hassle-free, MYEG has been at the forefront in reaping the potential of deploying cutting-edge technologies like blockchain, given its position as a leading global Web3 player. Together with the organic growth from the existing services, Zetrix is set to drive the Group’s next phase of earnings expansion, as evidenced by the uptrend in its financial position registered for FY2023. SUKUK WAKALAH PROGRAMME MYEG raised an additional RM425 million in FY2023, bringing the total raised through the Sukuk Wakalah Programme to RM575 million. MARC Ratings has affirmed its rating of AA-IS with a stable outlook for MYEG’s Islamic MediumTerm Notes (“IMTN”) Programme of up to RM1.0 billion in nominal value. The proceeds raised from the Sukuk Wakalah Programme shall be utilised for foreign worker hostels and blockchain projects, as per the Sustainability Financing Framework. DIVIDEND DISTRIBUTION TO SHAREHOLDERS For the financial year ended 31 December 2022, the Board had declared a final dividend of 1.17 sen per ordinary share (FY2021: 1.03 sen per ordinary share), for which the shareholders had subsequently approved at the 22nd Annual General Meeting held on 22 June 2023. The said final dividend is eligible for the dividend reinvestment plan (“DRP”), which provides MYEG shareholders with the option to reinvest their dividends in new MYEG Shares, in lieu of receiving cash. The final dividend, which amounted to RM86,643,787, was paid on 20 September 2023. Under the DRP, a total of 81,110,688 new ordinary shares were issued at the price of RM0.715 per MYEG share which amounted to RM57,940,559. On 21 August 2023, the Board declared a first Interim Single Tier Dividend of 0.25 sen per ordinary share for FY2023 (FY2022: 0.25 sen), which was paid on 17 November 2023 to shareholders registered at the closed business date on 18 October 2023. The Board has proposed the declaration of a final dividend of 1.68 sen per ordinary share for FY2023 (FY2022: 1.17 sen) for the shareholders’ approval at the forthcoming AGM. The total dividend declared for FY2023 would thus amount to 1.93 sen per MYEG share (FY2022: 1.42 sen), representing a payout ratio of approximately 30%. Separately, in another effort to reward shareholders, MYEG had on 10 March 2023 completed the distribution of the first tranche of the Dividend-in-Specie, consisting of 69,750,000 Agmo Shares, following the distribution of 69,724,752 Agmo Shares to entitled shareholders with the remaining 25,248 Agmo Shares arising from fractional entitlements to be retained by MY E.G. Capital Sdn. Bhd. (“MYEG Capital”), a wholly-owned subsidiary of MYEG as other investments. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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