OUR BUSINESS AND STRATEGY OUR VALUE CREATION PROCESS AND BUSINESS MODEL (cont’d) Financial Values Created Revenue RM774.26 million Profit before Tax: RM489.41 million Cash and cash equivalents: RM84.14 million OUTPUTS OUTCOMES Financial Outcomes Final dividend payout of 1.68 sen per share for FY2023 subject to shareholders’ approval. RM3.53 million paid in income tax Total assets of RM3.22 billion RM1.32 billion distributable retained profits RM88.48 million paid in wages RM10.15 million paid in statutory contributions Manufactured Outcomes Improved efficiency of our one-stop, door-to-door, service experience for customers. Expansion of services to more customers in Malaysia, the Philippines, and other locations. Promote use and proliferation of e-services in Malaysia, including e-government services Manufactured Values Created Online renewal of vehicle insurance and road tax as well as driving licence. Last mile delivery of products, e.g. licences, permits. Intellectual Values Created Introduction of motor vehicle related solutions including MYEG Drive Testing System, MyMotor, MyAssist, online vehicle auction platform, and online renewal of insurance, road tax and driving licence, as well as online insurance comparison portal, further cements MYEG as a one-stop centre that covers the needs of drivers and motorists. This includes from providing a large range of new and used vehicles to choose from, providing financial assistance via multiple vehicle financing options as roadside vehicle assistance packages. Other benefits (related and unrelated) created via the business model include: Intellectual Outcomes Provides convenience to customers saving time, travel and contributing to reduced environmental footprint across the customer value chain. Further enhancement of our unique business model and value proposition. The ability to retain our market leadership position and to continue setting the pace for the industry. The ability to operate as a market disruptor and leader through new technology and new offerings. Expansion of market presence to the regional and global level Human Outcomes 2,059 staff strength Low attrition rate Human Values Created z Competent employees z Increase in employee engagement z Long service employee z Growth in workforce z Enabling foreign worker permit and insurance renewal. z Road tax renewal in one click and delivery of road tax to the preferred destination. z Varieties of IT related services and products that are attractive to stakeholders. z Positive technology investment that is expected to perform well in the future. z Enhancing road safety and facilitating more effective regulation and enforcement. z Provision of online finance services via MY EG Finance Technologies Sdn. Bhd. z Completion of pilot phase for MYDTS and commencement of commercialisation, further widening the range of motor vehicle-related services offered by the Group in Malaysia. z Establishment of Zetrix layer-1 blockchain and Zetrix digital tokens z New blockchain-related initiatives including ZTrade, supply chain financing solutions, a multi-chain wallet and a digital credentials service ZCert. RM56.91 million paid to financiers in repayment of borrowings and lease liabilities RM846.66 million in total borrowings Low 0.36 times gearing Provision of vehicle roadside assistance for users. Beli e-Mart. Construction of foreign workers housing hostel. Development of highly skilled knowledge based workers to drive Malaysia’s digital economy. Social and Relationship Values created Greater understanding among key government and business stakeholders on our business model and prospects going forward. Greater investment analyst and interest among investors – local and foreign, retail and institutional – in the company. Enhanced trust and confidence in the company among customers and financiers Stronger interest among other organisations and enttities to form partnerships and collaborations with the company Social and Relationship Outcomes MYEG received service extension from JPJ commencing from 23 May 2023 to 22 May 2026 A recent collaboration was formed between MYEG and UM on the expansion of their research collaboration with CAICT to include the development of AI technology MYEG Philippines entered into an MOU with MVI, CDEC and the Philippines Bureau of Customs to establish a deployment of Zetrix blockchain-based customs clearance and processing services for the Bureau of Customs Partnership with China Beitou IT Innovation to offer digital verifiable credentials (e.g. IDs, driving licences) to Chinese nationals Following Summer Capital’s announced intention to host nodes on Zetrix, MYEG expanded its expertise and services in Hong Kong via a strategic collaboration formed in January 2024 between Zetrix, Web3Labs Hong Kong, and Summer Capital to further propel Hong Kong’s Web3 ambitions and establish Zetrix as the preferred blockchain infrastructure for Hong Kong government-aligned applications In November 2023, MYEG announced its partnership through Zetrix with Chinese banks, starting with the Bank of China, to initiate a pilot project offering supply chain financing products for international importers and exporters In June 2023, MYEG entered into a non-binding MOU with Oyika Green Technologies Sdn. Bhd. to collaborate on the use of electric motorcycles and placement of battery swapping stations at designated locations for a trial period On October 2023, the Ministry of Home Affairs Malaysia extended the services of MYEG as a system provider for the online renewal of work passes - the Pas Lawatan Kerja Sementara (“PLKS”) - for foreign workers for another two years MYEG signed a lease agreement with the PDC to build a RM108 million foreign workers’ housing in Batu Kawan after the Group emerged as a successful bidder in a tender exercise. In February 2023 the Group announced that through MYEG Philippines, it had secured an agreement to deliver services for the National Bureau of Investigation for another three years. MYEG Philippines and SSS PH partnered up to enhance the payment experience for SSS PH members to enjoy a hassle-free and efficient online payment of loans and contributions through MYEG PH’s website. MYEG in February 2024 entered an MOU with SDEC to collaborate in providing electronic government services in Sarawak. Strategic interest in e-government services provider Heitech Padu Berhad The emergence of a “greener” business operation that has effectively mitigated the effects of rising energy costs 324.22 tonnes Co2e Scope One emissions 1,292.60 tonnes Co2e Scope Two emissions 4,344.94 tonnes Co2e Scope Three emissions VALUE CREATION MODEL (cont’d) ANNUAL REPORT 2023 53 of MYEG as a system provider for the online renewal of work passes the Pas
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