Serba Dinamik Annual Report 2016

022 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P 1. OVERVIEW OF THE GROUP’S BUSINESS AND OPERATIONS Serba Dinamik Holdings Berhad was incorporated on 2 December 2015 as a private limited company and was subsequently converted to a public limited company on 13 May 2016 for undertaking our public listing exercise on Bursa Malaysia’s Main market. Serba Dinamik Holdings Berhad later acquired Serba Dinamik Group Berhad and its subsidiaries on 25 May 2016 forming the complete group ( “The Group” ). We are an energy services group providing engineering solutions to engineering companies and contractors, O&G operators, gas processing plants, oil refineries, petrochemical manufacturers, and independent power producers, among others with operational facilities in Malaysia, Indonesia, UAE, Bahrain and UK. Within engineering solutions, we provide operation & maintenance ( “O&M” ) services, undertake engineering, procurement, construction and commissioning ( “EPCC” ) works, and provide other supporting products and services, which include technical training, provision of Information & Communication Technology ( “ICT” ) solutions and services, supply of products and parts, and provision of logistics services. As an energy services group, we have customers in geographical locations within Malaysia, Indonesia, Turkmenistan, India, Middle East region and UK. Our Group is organised into business units according to their nature of activities and has three reportable operating segments as follows: 1.1 O&M SERVICES Within O&M services, we undertake the following: 1.1.1 Maintenance, Repair and Overhaul (“MRO”) of rotating equipment: We are a MRO specialist for various types of rotating equipment, which includes gas and steam turbines, engines, motors, generators, pumps, compressors and industrial fans. Our MRO services are currently focused on rotating equipment used in the energy industry, including O&G production and refineries and power plants. The Group usually secures a maintenance service package that includes the servicing of an entire rotating equipment system including the driver, driven components, transmission devices, process control and instrumentation system, and ancillary equipment and systems. 1.1.2 Inspection, Repair and Maintenance (“IRM”) of static equipment and structures: We provide IRM services for various types of static equipment, namely boilers, unfired pressure vessels, heat exchangers, columns, reactors and separators. Our IRM of boilers are specifically for steam boilers. Our O&M services are supported by five service centres in Malaysia, one service centre in Bahrain and one service centre in the UAE. In countries where we do not have an established service centre, we undertake our MRO services on-site or utilise the facilities provided by our strategic business partners, who are also our customers. By leveraging on our core strengths in MRO and IRM, we have expanded into the operations of small power plants. To date, we have an ongoing contract to operate and maintain three small hydropower plants for 21 years in Kota Marudu, Sabah, Malaysia. This contract is expected to commence upon the completion of construction by the end of 2017. MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT