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Datasonic Group Berhad

(Company No. 809759-X)

18

CORPORATE DEVELOPMENTS

1) Rationalisation of the Manufacturing Activities Under One Company

In the current year, the manufacturing activity under Datasonic Corporation Sdn Bhd (“DCSB”) was

transferred to Datasonic Manufacturing Sdn Bhd (“DMSB”) formerly known as Asia Pacific Card &

System Sdn Bhd (“APCS”) to enjoy greater economies of scale and improve efficiency by centralising

manufacturing activities under one company with two production facilities (Petaling Jaya and Port

Klang).

2) Applications for Multimedia Super Corridor (“MSC”) Status

Based on the advice by the Multimedia Development Corporation (“MDeC”) Officer, Datasonic

intends to pursue the application for “MSC qualifying activities” in respect of our prospective

projects in 2 main business clusters, namely Shared Services and Outsourcing; and Infotech (Software

development services). On 15 October 2015, Datasonic has acquired the following for the purposes

as above-mentioned:

i)

Two ordinary shares of RM1.00 each representing the entire issued and paid-up share capital

of Amalan Fokus Sdn Bhd for a total consideration of RM2.00; and

ii)

Two ordinary shares of RM1.00 each representing the entire issued and paid-up share capital

of Astana Inovasi Sdn Bhd for a total cash consideration of RM2.00.

Note: Both companies were incorporated in Malaysia on 28 August 2015 and have authorised share

capital of RM400,000 comprising of 400,000 ordinary shares of RM1.00 each. To-date, both

companies are dormant as the application for approval from MDeC is on-going.

COMMITMENT TO QUALITY AND EXCELLENCE

Datasonic’s dedication to continuous quality and excellence has been a key contributing factor to the

long-term success of the Group and the Group continues to receive external recognition and accolades

on this.

In FY16, the notable awards, certifications and/or licenses that were received by the Group include the

following:

1) ISO 9001:2008 Certifications

Datasonic recognises the importance of delivering consistent service and product quality. As such,

the implementation of ISO 9001:2008 is one of the ways which enables continuous improvement of

Datasonic’s quality management systems (QMS) and processes. Datasonic Manufacturing Sdn Bhd

(“DMSB”) has been assessed and certified as meeting the requirements of ISO 9001:2008 by both

SGS (Malaysia) Sdn Bhd and SGS United Kingdom Ltd since 22 April 2015. These ISO certifications

were attributable to the internal procedures and processes being adopted by our Manufacturing &

Quality Control Division, which shows that our manufacturing practices are committed to consistent

service and product quality and our smart cards manufacturing practices are in accordance with

both the local and international standards. In turn, this improves the ability of our card manufacturing

operations to meet our customer’s requirements and expectations.

Chairman’s Statement

(Continued)