Datasonic Group Berhad Annual Report 2020

Management Discussion & Analysis (Cont’d) 3.6.5 Venturing into the Solar Energy Business On 2 December 2019, Datasonic Technologies Sdn. Bhd. (“DTSB”), a wholly-owned subsidiary of the Company, incorporated a new associate company known as Datasonic Grid Sdn. Bhd. (“DGSB”). DTSB is holding 25% equity interest. The principal activities of DGSB are to carry on business of electrical contractor and contractor in other branches of engineering includingmechanical, electronic, telecommunication, civil and importer, distributor, supplier of related equipment, goods, apparatus and appliances of all descriptions and to carry on business of supply, installation andmaintenance of solar energy collector, supply of fuel gas and all appliances, tools and equipment related to the usage of gas as a source of energy. 3.7 Commitment to Quality and Excellence In our continuous pursuit of commitment for quality and excellence, the Group’s strategies include: i. Ensure that the quality and condition of our products remain top-notch and deliveries remain consistent. In fact, the quality of our products has been enhanced to the extent that product replacements arising from quality issues have declined but this had also affected our revenues too because our customers’ demands declined resulting from high quality products; ii. Perform annual reviews on various certifications and accreditations accorded to us, such as ISO 9001:2015 certifications, security, etc. to ensure that our Quality Management Systems (“QMS”), products (smartcards, MyKad and machine readable travel documents), services (e.g. Visa,MasterCard, PayNet etc. for financial cards personalisation rendered by our RPS division) and the security of our premises continuouslymeet the prevailing quality standards/requirements; iii. Explore or perform continuous R&D in high-quality & high technology solutions; and iv. Provide focused training and development to cultivate relevant competencies and skills that increases productivity and growth. 3.8 Other accolades and/or recognitions We take pride in the following accolades and achievements accorded in FY20: 3.8.1 “QuotaAchievement” awarded toDatasonicCorporationSdnBhdbyEntrustDatacard at theVISION2019: Global Partner Conference held at Minnesota in June 2019; and 3.8.2 The “ASEAN Master Class Award in Artificial Intelligence Security Excellence” - accorded to Datuk Haji Abu Hanifah bin Noordin (the Group’s ex-Managing Director, who retiredon31 January 2020) of Datasonic Technologies SdnBhdat the ASEANOutstandingBusiness Award 2019 held on 18 October 2019. DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 29