Dagang NeXchange Berhad Annual Report 2018

Trade Facilitation & eCommerce Dagang Net Technologies Sdn. Bhd. (“Dagang Net”) exclusively operates the National Single Window ("NSW") for Trade Facilitation System for the Royal Malaysian Customs Department ("RMCD") until 31 August 2019. Dagang Net is also one of the two (2) appointed service providers of uCustoms when the NSW is replaced. Over the years, the NSW contract has been a key component of the Group with sustainable revenues and profits. Leveraging on the Group’s exposure in the trade facilitation industry, DNeX currently provides one stop solutions for the small medium enterprises via SealNet and Global Halal services. DNeX expands its eServices by coupling it with Fintech gateways such as myPayment with the use of DNeX suite of services. SealNet and Global Halal services are at introduction stage of product life cycle. SealNet services are currently available in Malaysia and Thailand, and is expected to hit growth stages in late 2019. Granting the minute contributions from the new services, Trade Facilitation & eCommerce contributes 31% of the Groups revenue and 34% Group’s net profits in 2018. 11 Annual Report 2018 Management Discussion & Analysis KEY MESSAGES Trade Facilitation & eCommerce System Integration & Consultancy Financial Technology National Single Window / Service Provider uCustoms SealNet New eServices (“ALDEC / Pre-Alert Manifest”) Accounting & financial services (“iGFMAS”) RFID, AI & I 3 solutions Blockchain based eServices Marine cable installation Cyber security The Group’s portfolio in IT & eServices mainly covers three (3) core business areas, namely Trade Facilitation & eCommerce, Systems Integration & Consultancy, and Financial Technology ("Fintech"). 2018 revenue & PAT contribution from these three (3) business pillars. Revenue PAT Business Segment (RM’ million) (RM’ million) Trade Facilitation & eCommerce 91.9 18.1 System Integration & Consultancy 148.7 22.8 Fintech 1.0 - Total 241.6 40.9 IT AND eSERVICES