Datasonic Group Berhad Annual Report 2021

2021 ANNUAL REPORT 27 FINANCIAL REVIEW Revenue For the financial year under review, Datasonic recorded a revenue of RM138.4 million as compared to RM247.5 million a year ago. This was primarily attributed to lower supply of passports which were affected by the COVID-19 pandemic and international travel restrictions. Gross Profit (“GP”) Due to the lower revenue, FY2021 GP declined to RM72.0 million versus RM138.7 million in the preceding year. Despite the impact of the pandemic, the Group’s GP margin continued to be healthy at 52.0%. Net Profit In tandem with the top-line performance, Datasonic registered a net profit of RM7.3 million in FY2021 as compared to RM60.3 million a year ago. Apart from lower delivery of passports, we continued to incur fixed operating costs and financing costs while our operations were halted, which further impacted our financial performance. Capital Structure and Capital Resources Although the Group was presented with various obstacles brought upon by the pandemic, our sound balance sheet equipped us with tools to withstand the headwinds. This is attributable to our prudent capital management in terms of cash flow and liquidity management to navigate through the hurdles. Datasonic’s total assets stood at RM320.5 million as at 31 March 2021 as compared to RM388.1 million a year ago. On the other hand, the Group’s total liabilities amounted to RM94.2 million in FY2021. This represented a reduction of RM37.2 million a year ago following the repayment of our borrowings. Total borrowings were pared down to RM59.9 million as at 31 March 2021 from RM98.9 million in the previous year. Net Gearing and Cash Per Share The Group’s net gearing for Financial Year-End (“FYE”) 31 March 2021 continued to be very healthy at 0.05x in comparison to the net gearing for FYE 31 March 2020 at 0.20x. Net Operating Cash Flow (“NOCF”) Datasonic generated a positive NOCF of RM79.7 million in FY2021. The Group has consistently generated positive NOCF in the past several financial years. MANAGEMENT DISCUSSION & ANALYSIS Total Assets RM320.5 million Total Equity RM226.3 million Net Assets 8.62 sen per Share Net Gearing 0.05x As at 31 March 2021