Dagang NeXchange Berhad Annual Report 2018

Supply chain management Our Procurement Unit are guided by the DNeX Purchasing and Tendering Policies and Procedures. As an investment focused company, our Procurement unit mainly source for goods and services for information technology, general office management, travel, events, and other miscellaneous items to support our day to day operations. In 2018, DNeX procured goods and services worth RM95.8 million, an increase of RM19.2 million from 2017's RM76.6 million. This increase is attributable to the purchase of assets related to project requirements for iGFMAS following our acquisition of Genaxis Group, without which we would have only spent RM53.5 million due to the cost cutting measures put in place in 2018. Furthermore, in line with DNeX Vendor and Contract Management Policies and Procedures, our Procurement Unit conducts an annual DNeX Group Vendor Evaluation online survey to evaluate the vendor services and performance for purchases made within that year. Accordingly, the results from the evaluation determines which vendor will be channelled into, maintained or removed from DNeX's Approved Vendor List. OUR PLANET & SOCIETY Our planet and society strategy 1. We enable our customers to increase energy efficiency, save resources and reduce carbon emissions through digitised technology; and 2. We minimise the environmental impact of our operations through waste reduction initiatives. Corporate Citizenship As a company that places high regards for technology and innovation, it follows that our strategy for sustaining communities revolve around supporting the younger generation, promoting affinity to technology-related education, unleashing creativity and entrepreneurship. We find ways to contribute. Our zakat disbursement covers financial aid for select shelters, development of tahfiz , educational support, and helping employees undergoing difficult circumstances. In Ramadhan 2018, we initiated DNeX Cares - a charitable activity that enabled us to pledge food and drinks for the needy. A total of 97 cartons of Imizu Chia Seed drinks and 84 cartons of Sambal Abadi were distributed to 21 schools and shelter. Our social and environmental commitment also includes support towards humanitarian emergency aid and financial assistance in the wake of natural disasters. We also extend our corporate patronage to arts, culture, and environmental stewardship. In 2017, we hosted Muzik4Humanity, a humanitarian concert aimed at raising funds for programmes organised by Medical Relief Society Malaysia (“MERCY”). In 2018, we continued on this path and collaborated with PeJAM, a social organisation, to bring humanitarian relief to the Palu earthquake and tsunami victims. CampBijak TM CampBijak TM is DNeX’s flagship Corporate Social Responsibility programme designed to support the nation’s youth through scientific education and entrepreneurship. Now in its 4th year, it continues to be a supplementary syllabus programme aimed to help educate and instil deep interest in Mathematics and Science subjects through a structured but fun learning environment. In 2018, the CampBijak TM ecosystem has truly seen a growth in the development of its participants in all areas. In Mathematics, English, Science and Entrepreneurship and Innovation, all 60 students gained extensive growth through the experiential modules. With a 32% growth in the students’ capacity of Mathematics and Science, as well as a heightened sense of direction for their post- secondary school opportunities, the CampBijak TM ecosystem has proven to be effective in achieving its objectives. To further encourage and nurture the students' love for science and technology, DNeX also entered and sponsored the students into the Young Inventor's Challenge organised by the Association of Science, Technology and Innovation. The competition gathered the brightest secondary students from around the region to showcase their inventions. CampBijak TM sent two teams to showcase their invention for the assigned case studies. 84 Dagang NeXchange Berhad Annual Report 2018 Sustainability Report RM291,100 Total charitable contribution 1 Development of critical, logical, reflective, metacognitive and creative thinking CAMPBIJAK TM OBJECTIVE 2 Improvement of students’ curiosity in learning 3 Encouragement of self-initiative in learning