MYEG’s nascent entrance into the blockchain landscape began to bear fruit in FY2022. Various blockchain-based services began operations and the Group started to see its blockchain initiatives generate some revenue, which augurs well for the coming years. MYEG’s blockchain pivot proves that its business model’s focus on innovative technology and speed-to-market is a calculated foresight that takes into account the needs of the nation and the public. This ensures MYEG remains competitive, future-proof and responsive to its stakeholders and its user markets. More information on the Group’s developed services can be found in the Our Business and Strategy section of this Annual Report. Ultimately, MYEG’s inherently strong business model, expertise as a leading digital services provider in various regions, and its commitment to trailblazing new solutions in line with market trends fundamentally drives the organisation to constantly scope out and develop various partnerships and services to meet and exceed the needs of the market. More details on MYEG’s FY2022 business and operational highlights can be found in the Highlights and Achievements section of this Management Discussion and Analysis. FINANCIAL PERFORMANCE For FY2022, MYEG recorded a revenue of RM651.11 million in FY2022 compared with RM721.88 million in the previous financial year, while profit after tax (“PAT”) reached RM400.40 million, a 26.4% increase from the previous year (FY2021: RM316.71 million). The decline in revenue largely reflected the lower demand for healthcare-related services such as quarantine services during the year as COVID-19 related standard operating procedures were progressively removed following the country’s transition into endemicity. Nevertheless, this was mitigated by increased contributions from the provision of other products and services, including existing concession and concession related services, partly as a result of the resumption of full operations of MYEG’s e-service centres located nationwide and other commercial services, such as foreign worker job matching. With the completion and launch of the Group’s Zetrix layer-1 blockchain platform, the Group also saw maiden revenue contributions from the sale of Zetrix tokens in FY2022. The increases recorded in the aforementioned product and service offerings underpinned the rise in PAT to a new record high, notwithstanding the tapering of the contribution from healthcare. A one-off recognition of fair value gains in the Group’s investment in Agmo following its initial public offering and listing on Bursa Securities also boosted earnings for the year. The recent acceleration of digitalisation spurred by the COVID-19 pandemic has seen consumers and businesses continue to prefer making digital transactions due to convenience and accessibility. Thus, the Group continued to benefit from this broad shift to the online space, as evidenced by the ongoing robust demand for the Group’s existing concession and commercial services such as online renewal of motorcar road tax and insurance, motorcycle road tax and insurance, and Competent Driving Licenses, as well as online renewal of foreign worker permits and insurance, among others. Thus, MYEG has managed to successfully capitalise on the strong uptake by consumers of online transaction channels and this, coupled with the introduction and contribution of blockchain solutions, has enabled the Group to deliver a healthy financial performance in FY2022. CORPORATE EXERCISES MYEG’s share placement exercises have been successfully carried out, drawing robust investor demand. The following corporate proposals were a key aspect of capital provision for MYEG’s business activities in FY2022: Pursuant to a private placement exercise carried out in FY2021 involving the proposed issuance of 300,000,000 MYEG shares, the first tranche was completed on 29 October 2021 following the listing and quotation of 210,000,000 new MYEG shares. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) 20
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