Serba Dinamik Annual Report 2021

Section 3 | Our Performance and Outlook 92 CEO’S STATEMENT WHAT THE FUTURE HOLDS Allowme now to provide an insight into some pertinent financial matters over the past 18 months as well as to share some vision that will be key drivers of our business in the near future. Financially, the Group posted total revenue of RM8.61 billion with loss RM185.37 million for the cumulative 18-month period ended 30 June 2021. However, there is no comparison available given Serba Dinamik has changed its financial year end to 30 June 2021 from 31 December 2020 on 7 May 2020. In the course of our FPE 6/2021, Serba Dinamik had compelled itself – in view of movement/traveling hardship resulting from efforts to contain the spread of COVID-19 – to look beyond the its traditional oil & gas ("O&G") sector with aggressive diversification into the forefront technologies of the Fourth Industrial Revolution (IR 4.0). Not wanting to put our bet entirely on the O&G industry, Serba Dinamik has set its sight to be a leading service provider in the realm of space economy. This is given we have great faith that we possess the relevant technological know-how to spearhead the exploration of space economy which can put Malaysia at par with other developed countries. Towards this end, Serba Dinamik has made a few parliamentary constituencies – namely Jeli, Alor Gajah and Larut – as test beds for such service as part of our unique corporate social responsibility ("CSR") programme. On 17 March 2021, our wholly owned subsidiary Serba Dinamik Group Bhd inked a memorandum of collaboration with seven local institutions of higher learning as strategic partners in to establish a New Space Economy Nexus ("NSEN") to explore the areas in space technology. The seven institutions are Universiti Tun Hussein Onn Malaysia ("UTHM"), Universiti Malaysia Sarawak ("UNIMAS"), Universiti Sains Malaysia ("USM"), Universiti Teknologi MARA ("UiTM"), Universiti Kuala Lumpur (UniKL), University Malaysia of Computer Science & Engineering ("UNIMY") and International College of Advanced Technology Sarawak ("i-CATS"). Moreover, we had forged collaboration with the Malaysian Space Agency ("MYSA") to further strengthen the development of the space economy and industry in Malaysia. According to MYSA, Malaysia had yet to participate in the “new space economy” despite being equipped to do so. Related to space economy, Serba Dinamik had also signed a memorandum of understanding ("MOU") with SWISSto12, a Switzerland-based private expert with the technology to manufacture components that are used in satellites via 3D printing technology. With the MOU, it SWISSto12 would support to Serba Dinamik in its quest to enhance the Group’s high value engineering capability to support its space economy venture. On a similar note, we had through Serba Dinamik Group Bhd sponsored special purpose acquisition company ("SPAC") Data Knights Acquisition Corp in its initial public offering ("IPO") exercise of 10 million shares priced at US$10 apiece on 7 May 2021. Our total investment in the SPAC was US$5.85 million (RM24.10 million). The UK-based Data Knights was looking to raise up to US$115 million via the IPO. The SPAC had intended to leverage its management team’s experience and target the data centres and Internet technology sectors by focusing on businesses built on disruptive technologies and business platforms. Meanwhile, as we diversify outside the sphere of O&G and to further expand our geographical footprints, Serba Dinamik had on 12 June 2021 acquired an 80% equity interest in Wellahead Engineering Ltd — an Aberdeen-based precision engineering service provider for the North Sea O&G industry – as a platform to tap the international renewable energy ("RE") sector. As we foresee huge business opportunities in the RE sector, especially with windmill farms, Wellahead has been tasked to establish links and identify opportunities for the Group in this segment by acting as a facilitator to penetrate the channels in this potentially lucrative sector. TRADITIONAL O&G BUSINESS In our capacity as a global integrated O&G service provider, Serba Dinamik has not allowed the COVID-19 pandemic nor its accounting saga to cloud its future earnings visibility. Essentially, Serba Dinamik through its Malaysian and Indonesian subsidiaries has been awarded contracts in the areas of operations & maintenance (O&M) and engineering, procurement, construction and commissioning ("EPCC") which contracts’ lifespans vary