16 MSC BERHAD CORPORATE STRUCTURE REORGANISATION Corporate Structure as at 30 June 2024: Management Discussion and Analysis (cont’d) E2 Trade Sdn Bhd Universal Capital Co Ltd Excel Force Solutions Sdn Bhd Insage (MSC) Sdn Bhd Xifu Sdn Bhd 100% 100% 100% 28.6% 100% 100% Millapp Sdn Bhd The Group completed an internal re-organisation exercise in the period under review. The purpose of this re-organisation is to transfer all existing operating businesses into a fully owned subsidiary (E2 Trade Sdn Bhd or E2Trade), thereby turning the listed company (listco) into a holding company structure. Internal and external communications with various stakeholders, together with necessary legal and financial documentations have been successfully completed. The exercise was completed on 30 September 2023 and there is no impact to the group financial statements. E2 Trade Subsidiaries Review The business performance of Insage (MSC) Sdn Bhd (“Insage”) remains positive. Insage is a market leading provider of online investor relation websites and has amassed more than 12 years of Bursa quoted companies’ financial and corporate information. As there are many new listings on Bursa Malaysia and more public listed companies are outsourcing their investor relation webpages and corporate websites, Insage is in a strong position to capitalize on these opportunities. Xifu Sdn Bhd (“Xifu”) currently focuses on enhancing its mobile based social investing platform for its subscriber base. In the period under review, it continues to garner positive review and feedback, increasing number of user generated content and engaging with subscribers to encourage robust discussions on stock investment. During the year, Xifu successfully relaunched its web platform as “X-Chart on Xifu”, after integrating with eForce Interactive X-Chart application. The rate of subscription has been encouraging. Excel Force Solutions Sdn Bhd Review Excel Force Solutions Sdn Bhd (“EFS”) commenced business on 1 September 2023 and its principal activities consist of the development, provision and maintenance of computer software application solutions for the financial services industry. EFS has been granted Malaysia Digital Status company on 1 July 2022 by the Government of Malaysia. EFS is also awarded a 100% income tax exemption on statutory income for five years under the Income Tax (Exemption) Order (No.10) 2018 [P.U. (A) 389/2018], subject to approval on effective date of tax incentive. KEY BUSINESS RISK AND MITIGATION STRATEGIES Changes to government policies, banking and securities regulations and stockbroking rules have an impact to EForce’s business and operational performance. The Group monitors trends in regulatory development, and through regular engagements with brokers, regulators and relevant governmental agencies, the Group can better anticipate risks and formulate appropriate responses to changes. The Group’s business operation is highly dependent on the stability, availability and reliability of our application solutions, data centre, network infrastructure and equipment. EForce mitigates the operational and system risk through pre-trading system health check, close monitoring of equipment resource use for preventive actions, regular back up procedures to ensure business continuity, and fine tune our applications for performance improvement. Keeping abreast and updated on technology advancement is critical to ensure timely and effective maintenance of our application solutions and provide quick response to customers when issues arise. EForce mitigates this risk by providing training and exposure to our employees on relevant technology development, and update on changes in the broking business landscape to ensure our solutions remain current.
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