OUR BUSINESS AND STRATEGY EVOLVING TECHNOLOGICAL/DIGITAL LANDSCAPE Without a doubt, continued disruption in technologies, in particular digital technologies, provides both risks and opportunities to Zetrix AI‘s business model, which is dependent on its digital capabilities. The transition from a conventional Web2 environment to increasing mass recognition / adoption of AI and Web3 / blockchain technologies (as evidenced in the global uptake of Web3 projects and increasing global digital asset prices), further necessitates technological providers, such as Zetrix AI, to continue to innovate and stay abreast of present trends to remain competitive and resilient. RISK OPPORTUNITY Solutions being developed internally by the Group or with external partners may face the risk of technological obsolescence due to the rapid emergence of new technologies. Capital consumed for the development of technologies, primarily financial and human capitals, may be deemed lost if developed technologies are subsequently rendered obsolete. The global regulatory environment related to Web3 technologies / digital asset market continues to evolve rapidly and therefore lacks standardisation across jurisdictions. This may make it difficult for Zetrix AI to maintain a consistent and satisfying user experience under ever-evolving conditions. The fast-changing technology landscape also presents opportunities for Zetrix AI to enhance its existing capabilities, improve its business processes and develop new offerings. It also offers opportunities to expand Zetrix AI’s international presence via the provision of services targeted towards international users. The ability to offer novel and market-attuned value propositions will be advantageous to Zetrix AI, strategically positioning the Group to drive effective collaboration by working with Governments, businesses and communities towards realising socio-economic developmental objectives. Burgeoning interest in Web3 projects globally and growing fund inflows into digital asset markets create a favourable environment for the deployment of new decentralised applications on the Zetrix platform as well as for the sale and trading of Zetrix tokens. The trend within Governments to switch from physical documents to verifiable digital equivalents, for example, licences, permits, customs trade documents, etc., spurs demand for blockchain technology services, such as the capabilities offered by Zetrix AI through Zetrix. This in turn translates to benefits such as easing congestion and long queues at physical counters, faster processing times, minimising inconveniences arising from lost or missing paper documents, as well as significant printing and delivery cost savings for stakeholders. STAKEHOLDERS LIKELY IMPACTED LINKAGE TO MATERIALITY CAPITALS INVOLVED Employees Customers Investors Government and Regulators Community and General Public Cybersecurity & Data Privacy Technological Innovation Competitive Marketplace Product / Service Quality MATTERS IMPACTING VALUE CREATION (cont’d) 55
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