AwanBiru Technology Berhad - Annual Report 2021

Shareholders’ Equity, Group Total Assets and Dividends Our shareholders’ Equity has increased by 69.8% to RM179.0 million during the financial year, against RM105.4 million the period before. The same goes for our Total Assets which has increased to RM402.5 million from RM302.5 million in the previous financial year. We have a shareholder base of 7,126 institutional and retail/private shareholders as at 30 June 2021. Maybank Trustees Berhad for Areca Dynamic Growth Fund and Eco Cloud Assets Sdn Bhd are our two major shareholders with direct equity holdings of 13.07% and 10.11% of our total share capital respectively. Foreign shareholding accounted for 2.64% of the total. Our share price has been on an upward trend in FY2021. We believe this can be attributed to the strategic positioning of our products and services, amid the pandemic and is well-poised for the nation-wide digitalisation push. The share price opened at RM0.40 on 1 July 2020, and closed at RM0.80 on 30 June 2021, representing more than 135% increase for the financial year, for a total of 787,425,100 shares (including treasury shares). For the financial year ended on 30 June 2021, the Board of Directors did not declare any dividend. This decision was a result of the current challenging business environment due to the COVID-19 pandemic and the continuation of our rationalisationandtransitionplantowards cloud-based products and services. As we rebuild our top line and invest in our people, we believe it is prudent to retain sufficient financial resources in the form of our working capital. Our overall results for FY2021 shows that our revenue has dropped by about 31% and this is mainly impacted by the dual effect of the expiry of theMaster Licensing Agreement (“ MLA ”) with the Government of Malaysia and the discontinuation by Microsoft of our wholly owned subsidiary, Prestariang Systems Sdn. Bhd. (“ PSSB ”)’s membership in the Microsoft Partner Network effective 31 January 2021. Nevertheless, we achieved a Profit After Tax of RM9.3 million (an increase of 152%) mainly due to the net impact of a one-off gain obtained from the disposal of Prestariang Education Sdn. Bhd. (“ PESB ”) (now known as Serba Dinamik Education Sdn. Bhd.) of RM17.7 million, less one-off provision of impairment loss for property and equipment amounting to RM3.0 million. Comparison of Revenue (FP2020 vs FY2021) (RM Million) 2020 (restated) 2021 Change in % Revenue 152.9 104.9 - 31.4 Profit/(Loss) Before Tax (16.8) 9.8 158.3 Profit/(Loss) After Tax (18.0) 9.3 151.7 Shareholders’ Equity 105.4 179.0 69.8 Total Asset 302.5 402.5 33.1 Earnings/(Loss) per share (sen) (3.78) 1.46 138.6 Income Tax Expenses (1.2) (0.5) 58.3 2020 (Restated) 2021 RM’000 RM’000 Revenue from Contracts with Customers Continuing Operations ICT training and certification 3,240 5,085 Software licence distribution and management 145,225 99,594 Employment services 4,440 230 152,905 104,909 Our revenue had decreased by 31% on average, as the core components had experienced some reduction where the Software license distribution and management reduced by 31.4% from RM145.2 million in FY2020 to RM99.6 million in FY2021. ICT training and certification revenue increase by 59.4 % from RM3.2 million for FY2020 to RM5.1 million in FY2021. Employment services revenue reduced to RM0.23 million from RM4.4 million in the previous year end due to the discontinuation of its manpower management services for a project in Pengerang as the project has been completed. Summary of Group’s Key Financial Indicators (RM Million) Key Messages | Awantec 19 Annual Report 2021