KUB Malaysia Berhad Annual Report 2021

Nevertheless, we commenced three (3) new projects within the division in FP2021. Firstly and as mentioned, we won a three (3) year contract to manage second level operation, maintenance, servicing and repair of digital TV transmission infrastructure from MYTV. Secondly, we were appointed as TM’s Certified Network Contractor for fiberization infrastructure installations in the Central region. We also commenced the work of supplying, delivering and installing tower structures for the MCMC, which will be completed by September 2021. Looking at our long-term growth prospects, the joint venture agreement entered into by KUB Ekuiti Sdn Bhd (‘KUBE’) and South Korean digital technology powerhouse HFR, Inc. (‘HFR’) in August 2020 will enable us to penetrate new segments within the telecommunications industry. As engineering services and infrastructure partner to HFR, we will in the future be able to participate in projects related to the installation of cutting-edge communications technology such as 5G, opening up potentially lucrative avenues for income generation as well as higher margin opportunities. With the rise of Industry 4.0 and the shift to next generation digital networks such as fiber, infrastructure, 5G and more, we are confident that these nascent growth opportunities will be just the tip of the iceberg. By continually building our capabilities through human capital improvement initiatives and strategic partnerships, and aligning ourselves with government initiatives such as the national digital infrastructure plan, Jalinan Digital Negara (‘JENDELA’), and building our expertise in internet of things (‘IoT’) applications driven by future 5G networks, we can secure our place as a contributor to the development of Malaysia’s exciting digital future. Aside from our main business divisions, the Group also provides civil engineering works in the power sector and operates a property management business that oversees several of our owned properties. The Group’s corporate expenses and share of profits from the associate company are also deemed as part of this sector. In FP2021, these business interests delivered revenue of RM12.0 million and registered a PAT of RM6.9 million, driven by gains on disposal of an associate company totalling RM30.5 million and the disposal of land in Langkawi for RM8.2 million. Profit was lowered, however, by a loss on the disposal of a subsidiary, KUB Malua Plantation Sdn Bhd amounting to RM18.8 million and impairment losses on receivables of RM5.9 million mainly recorded by the power business. Other Division 21 ANNUAL REPORT 2021 PERFORMANCE REVIEW