Serba Dinamik Annual Report 2021

Integrated Report 2021 165 CAPITAL EXPENDITURE (PROPERTY, PLANTS AND EQUIPMENT AND RIGHT-OF-USE ASSETS) The capital expenditure of the Group incurred for FPE2021 was RM1.35 billion, an increment of RM556.91 million or 70.47% as compared to FYE2019. The increment in FPE2021 was derived from higher capital expenditure acquired in relation to land, tools & equipment and plant & machinery. This is in tandem with the revenue growth as the Group will incur new capital expenditure whenever new contracts are awarded. The Group has also acquired TR Yard, which is located in Kota Tinggi, Johor. This acquisition will elevate the Group’s aspiration to be an integrated one stop solutions provider to connect offshore upstream capabilities to the onshore downstream, which is already well established. Aside from this, included in the total additions of property, plant and equipment for FPE2021 relating to construction in progress for our high end service centre development of PeIP and BIEH. BIEH already completed the construction beginning of quarter four during the year 2020. As of 30 June 2021, the Group has RM190.11 million of approved and contracted capital expenditure to be utilised for the development of our PeIP. 2016* 2017 2018 2019 2021 ^ RM Millions 1,347.17 551.92 265.41 790.26 201.85 Capital Expenditure FINANCIAL PERFORMANCE * The figures and values for 2016 in this section represent that performance of Serba Dinamik Group Berhad, in order to reflect the performance of the Group prior to the incorporation of Serba Dinamik Holdings Berhad and the subsequent acquisition of Serba Dinamik Group Berhad on 26 May 2016. For further information please refer to our IPO prospectus available on our corporate website. ^ On 07 May 2021, the Group announced the change of financial year end for the Company and its subsidiaries from 31 December 2020 to 30 June 2021. The audited financial statements is for a period of eighteen (18) months, made up from 1 January 2020 to 30 June 2021.