ANNUAL REPORT 2021 23 PERFORMANCE Newly-introduced services played a particularly pivotal role in FY2021’s strong revenue and earnings performance. These included higher contribution from the COVID-19 health screening programme as well as quarantine collection and related ancillary services under MySafeTravel, a COVID-19 screening and accommodation arrangement for travellers, and MySafeQ, an accommodation programme for low-risk COVID-19 patients. Meanwhile, greater health and safety consciousness amidst the COVID-19 pandemic spurred further acceleration in the adoption of digital channels among consumers and businesses as their preferred mode of transacting and making payment. Against this backdrop, the Group reported an overall increase in online transaction volumes in FY2021 underpinned by continued strong demand for its existing concession and commercial services, such as online renewal of motorcar road tax and insurance, motorcycle road tax and insurance, and CDL, as well as online renewal of foreign worker permits and insurance, among others. In sum, contribution from new services that were introduced, particularly within the health care space, and the broader uptrend in online transaction volumes for existing concession and commercial services combined to propel the Group’s robust financial performance in FY2021. CORPORATE EXERCISES Notably, the Group’s share placement exercises were successfully carried out and drew healthy investor demand. The first tranche of the FY2020 private placement of 120,000,000 ordinary shares of MYEG (“MYEG Share(s)” or “Share(s)”) was completed on 17 December 2020. Another placement exercise was conducted in FY2021, involving the issuance of a first tranche of 210,000,000 MYEG Shares, on 29 October 2021. A remaining 100,000,000 MYEG Shares from the earlier FY2020 private placement were issued as part of this FY2021 exercise. The total gross proceeds raised from first tranche of FY2021 private placement was RM214.2 million. Up to 300,000,000 MYEG shares had been proposed to be issued under the FY2021 private placement. The Group intends to seek the relevant approvals for an extension to complete the issuance of the remaining unissued 90,000,000 MYEG Shares. In addition, the Group completed on 15 September 2021 a bonus issue exercise, issuing 3,690,309,821 new MYEG Shares on the basis of one bonus share for every one existing MYEG Share held. The bonus issue serves to reward existing shareholders of MYEG for their continued support by allowing them to participate more in the equity of MYEG in terms of the number of shares held, whilst maintaining their percentage equity interests in MYEG. MYEG’s enlarged share capital stood at RM669,106,130.22 comprising 7,380,619,642 MYEG shares upon completion of the bonus issue exercise. DIVIDEND RETURNS TO SHAREHOLDERS On 22 June 2021, the Board determined that the Group’s dividend reinvestment plan (“DRP”) will be applicable for its proposed FY2020 final dividend of 1.7 sen per MYEG Share subject to the approval of MYEG’s shareholders on the renewal of authority for the Board to allot and issue new MYEG Shares in relation to the DRP and final dividend. MYEG’s shareholders had approved the same at the 20th Annual General Meeting (“AGM”) on 1 July 2021. Under the DRP, MYEG’s shareholders, if they wish, can reinvest all of their dividend proceeds in return for new MYEG Shares. The dividend was paid out on 9 September 2021 amounting to RM61.0 million (based on the share capital of 3,588,539,337 MYEG shares (excluding 83,390,400 treasury shares)). Under the dividend reinvestment scheme completed on 10 September 2021, a total of 18,380,084 new MYEG Shares were issued at the price of RM1.65 per MYEG Share which amounted to RM30.33 million. On 23 August 2021, the Board declared a first interim single tier dividend of 0.25 sen per MYEG Share (FY2020 – 0.5 sen) for the FY2021 amounting to RM18.00 million, which was paid on 11 November 2021 to MYEG’s shareholders registered at the closed business on 15 October 2021. The Board subsequently on 25 February 2022 declared a final dividend of 1.03 sen in respect of the FY2021. The total dividend declared for FY2021 would thus amount to 1.28 sen per MYEG Share, representing a payout ratio of approximately 30%. MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF THE MACRO-OPERATING ENVIRONMENT (CONT’D)
RkJQdWJsaXNoZXIy NDgzMzc=