21 PERFORMANCE MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) On 20 August 2024, the Board of Directors declared a first interim single tier dividend of 0.25 sen per ordinary share (2023 – 0.25 sen) for FY2024, payable on 18 November 2024 to shareholders registered at the close of business on 22 October 2024. On 18 February 2025, the Board has proposed the declaration of a final dividend of 2.49 sen per ordinary share for FY2024 (FY2023: 1.68 sen) for the shareholders’ approval at the forthcoming AGM. The total dividend declared for FY2024 would thus amount to 2.74 sen per MYEG share (FY2023: 1.93 sen), representing a payout ratio of approximately 30%. CAPITAL AND OPERATIONAL EXPENDITURE As a digital service provider, the Group’s capital expenditure (“CAPEX”) naturally comprises mainly technology-related items, including the development of the blockchain platform and related applications, e-government services related modules and IT equipment. The Group places significant consideration towards finding optimal balance in managing its CAPEX. Toward this end, MYEG’s strategy remained focused on unlocking business growth and expansion, while also staying cognisant of the importance of rewarding shareholders and conserving adequate capital to meet current needs. Efforts to manage and ensure efficiency of operational expenditure (“OPEX”) were also prioritised. In FY2024, MYEG recorded a CAPEX of RM760.36 million, 60.37% higher year-on-year (FY2023: RM474.12 million), while its OPEX stood at RM270.71 million, 8.01% higher year-on-year (FY2023: RM250.64 million). The CAPEX and OPEX recorded in FY2024 were for the following areas: CAPEX OPEX r Development of technology including blockchain platform and related applications; r E-Government services related modules; r Office and IT equipment; and r Foreign workers hostels. r Personnel-related expenses and OPEX; r Advertising and promotion expenses; r Maintenance and OPEX for MYEG’s building (“Zetrix Tower”); and r Depreciation and amortisation charges. The Group will continue to closely monitor these important levers to ensure prudence in management of expenses in upcoming financial years. ASSETS AND LIABILITIES, CASH AND BANK BORROWINGS The Group’s balance sheet remained strong, with total cash and cash equivalents as at 31 December 2024 improving by 4.45 times to RM374.19 million compared with the previous year’s position (FY2023: RM84.14 million). This has continued to allow the Group’s access to potential investment opportunities and better navigate market challenges. Total borrowings from term loans, Islamic Medium-Term Notes (“Islamic MTN”) and revolving credits were at RM1.26 billion for FY2024 (FY2023: RM846.66 million). MYEG maintains a manageable net gearing ratio of 0.32 times in FY2024 (FY2023: 0.36 times). On total assets, both current and non-current assets contributed to an increase in MYEG’s total asset position at RM4.25 billion, 31.99% higher year-on-year (FY2023: RM3.22 billion). Property, plant and equipment was recorded at RM356.69 million (FY2023: RM304.44 million), while trade receivables increased by 2.76% to RM350.45 million (FY2023: RM341.03 million). Development costs registered an increase to RM1.85 billion (FY2023: RM1.21 billion). MYEG remains on track in pursuing its growth and expansion objectives, particularly in the Web3 space, supported by a strong balance sheet, which enables the Group to access additional capital, should the need arise.
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