FROM OUR CHAIRMAN The strong A1 credit ratings assigned to the programme by RAM underscore external confidence in DNeX’s financial resilience, diversified portfolio and disciplined capital management approach. Throughout FY2025, the Board maintained a strong emphasis on financial discipline and responsible capital allocation. These principles remain central to safeguarding shareholders’ interests and ensuring the Group maintains the financial capacity required to support operations and future strategic priorities as it gains traction beyond consolidation. In addition, the Group’s Sustainable Finance Framework was accorded a Gold Sustainable Finance Rating by RAM Sustainability, marking the first in Malaysia to incorporate Green Enabling Projects. This recognition underscores the Group’s commitment to responsible financing and enhances access to a broader pool of sustainable capital and ESG-focused investors. A strengthened balance sheet also provides the foundation for further expansion in capital expenditure, merger and acquisition opportunities and considered shareholder returns. The Board’s position on dividends remains to balance reinvestment needs with returning surplus capital to shareholders once earnings quality stabilises. Any future distributions will reflect the Group’s cash generation, capital commitments, opportunity for reinvestments and prevailing market conditions. EMBEDDING STRONG GOVERNANCE AND RISK PRACTICES Given the breadth of DNeX’s business portfolio, the Board maintained close attention to governance standards, financial discipline and risk exposure during the year. Particular attention was given to capital allocation decisions and their financial implications following the Group’s strategic portfolio review, including the recognition of impairments primarily relating to fair value adjustments. Deliberations centred on ensuring that business decisions remained consistent with the Group’s financial capacity and operating priorities. The Board also reviewed key risks arising from industry conditions affecting the Semiconductor and Energy businesses, as well as contractual and delivery obligations within the Information Technology segment. Specific risk areas monitored during the year included the evolving United States–China export control regime, the impact of the US global tariff and the ensuing Malaysia-US Agreement on Reciprocal Tariffs and its implications for semiconductor demand, volatility in global crude oil prices affecting the Group’s Energy operations and foreign exchange exposure arising from the Group’s USD denominated revenues. This emphasis ensured that operational decisions remained commercially grounded, financially prudent and responsive to evolving market conditions. In parallel, the Board continued to focus on business conduct, regulatory compliance and workforce matters as part of its governance responsibilities. During the year, the Board approved several portfolio actions arising from its strategic review to simplify the Group’s structure, clarify balance sheet strength and redirect resources towards areas where DNeX holds clearer strategic and competitive positioning. Through these measures, the Board reinforced accountability, sound judgement and disciplined governance as the Group moved beyond a year of consolidation. The Group’s inclusion in the FTSE4Good Bursa Malaysia (“F4GBM”) Index and the FTSE4Good Bursa Malaysia Shariah (“F4GBMS”) Index further reflects the strength of its governance and sustainability practices, enhancing visibility with sustainability focused investors. In this domain in FY2025, the Group laid the foundations for integrating Climate Risk Assessments into its Enterprise Risk Management (“ERM”) coverage, laid out plans for rolling out tracking Scope 3 emissions over the coming years, as well as expanding coverage of social-labour rights policies across the Group and its supply chain. MAINTAINING STRATEGIC DIRECTION As DNeX entered FY2026, the Board’s priority was to convert the consolidation carried out in FY2025 into more stable financial and operating performance. Expectations across the Group are now more clearly defined. Operating conditions are expected to remain uneven in the Group’s markets. Adjustments made during FY2025 to streamline the portfolio and improve the financial base place DNeX in a better position to pursue improved results. Against this backdrop, improvements will depend on consistent execution and the ability to deliver commercial results from the strategic decisions already taken. The Board also reviewed how the Group should maintain its competitiveness as its core industries evolve. Areas of focus include moving the Semiconductor business towards higher value activities, maintaining disciplined upstream investment in the Energy segment in Malaysia and expanding digital offerings through selective technology partnerships. DNeX INTEGRATED REPORT 2025 38 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
RkJQdWJsaXNoZXIy NDgzMzc=