HeiTech Padu : Annual Report 2023

ANNUAL

REPORT

1

INSIDE THIS REPORT

SECTION 1: WHAT YOU'LL FIND IN THIS REPORT

	Basis Of This Report	1
	SECTION 2: INVESTMENT CASE
	Facts At A Glance	2
	Corporate Profile	4
	Highlights and Achievements	14

SECTION 3: LEADERSHIP STATEMENTS

	From The Chairman's Desk	20
	A Message From The Founder / Executive Deputy Chairman	21
	Management Discussion & Analysis	22
	SECTION 4: HOW WE CREATE VALUE
	Business Strengths	28
	How We Assess Materiality	30
	The Risks We Consider	32
	Our Strategic Progress	34
	Our Value Creation Model	36

SECTION 5: SUSTAINABILITY STATEMENT

Sustainability At HeiTech Padu Berhad	38
Measuring Our Economic Matters
• Supply Chain Management	45
• Anti-Corruption	46
• Data Privacy And Security	47
Doing Our Part For The Environment
• Energy Management	48
• Water	49
Progressing Society
• Community And Stakeholder Engagement	50
• Diversity	54
• Health And Safety	55
• Labour Practices And Standards	56
Moving Forward	58
Independent Assurance Opinion Statement	59

SECTION 6: COMMITMENT TO STRONG GOVERNANCE

Profile Of Directors	62
Profile Of Company Secretaries	73
Profile Of Executive Council Committee	74
Corporate Governance Overview Statement	77
Audit Committee Report	87
Statement On Risk Management And Internal Control	91

SECTION 7: FINANCIAL PERFORMANCE

Directors' Report	100
Statement By Directors	106
Statutory Declaration	106
Independent Auditors' Report	107
Statements Of Comprehensive Income	113
Statements Of Financial Position	115
Statements Of Changes In Equity	117
Statements Of Cash Flows	119
Notes To The Financial Statements	122
SECTION 8: ADDITIONAL INFORMATION
	Corporate Information			198
	Group Structure			199
	List Of Properties								200
	Analysis Of Shareholdings			201
	Notice Of Annual General Meeting		204
	Administrative Guide		209
	• Form Of Proxy

You can find this Annual Report and additional information about HeiTech Padu Berhad on our corporate website.

HeiTech Padu Berhad | Annual Report 2023

SECTION 1: WHAT YOU'LL FIND IN THIS REPORT

BASIS OF THIS REPORT

INTRODUCTION TO THE HEITECH ANNUAL REPORT

Our Integrated Reporting constantly evolves to align with HeiTech Group's core values and strategic direction. It also provides a comprehensive overview of our financial, non-financial and material performance.

As we embark on our fifth year of Integrated Reporting, our main objective remains to offer a holistic perspective of the Group that reflects upon our commitment to serving our customers. Our report highlights our goals, hurdles and achievement in which all are viewed through the lens of our material issues.

SCOPE

This report provides information on the financial performance for the period of 1st January 2023 to 31st December 2023, as well as updates on business activities, governance and related matters for the period of 1st January 2023 to 31st March 2023.

REPORTING PRINCIPLES

HeiTech adheres to the governance and reporting standards as outlined in the Bursa Malaysia Main Market Listing Requirements and aligns our reporting with the International Integrated Reporting Council's Framework developed by the Value Reporting Foundation. We also sought guidance from other relevant standards and regulations such as the Malaysian Code on Corporate Governance 2021, Companies Act 2016, Bursa Malaysia's Management Discussion and Analysis, Sustainability and Corporate Governance Guidelines. Our financial statements are prepared in accordance with both International Financial Reporting Standards (IFRS) and Malaysian Financial Reporting Standards (MFRS).

ASSURANCE AND APPROVAL

HeiTech's external auditor, Messrs. AlJafree Salihin Kuzaimi PLT, has provided assurance on the consolidated Annual Financial Statements and expressed an unmodified audit opinion.

FEEDBACK

We at HeiTech always look for ways to improve our reporting disclosures to keep our stakeholders better informed on our value creation journey. We welcome all questions or suggestions.

[phone]

[phone]

[e-mail]

1

FACTS AT A GLANCE

Alor Setar

Kota Bharu

5 6

4

Butterworth

3

Ipoh

Data Centre		2
HeiTech Village 2,	1
Shah Alam	11

10

Etiqa Twins

Seremban

9

7

Kuantan

Headquarter

Menara

Melaka

8

HeiTech Village,

Subang Jaya

Johor Bahru

Paid-up Capital

RM117.8

million

Revenue of

RM277.8

million

Total Assets of

RM433.0

million

2 HeiTech Padu Berhad | Annual Report 2023

SECTION 2: INVESTMENT CASE

16

NATIONWIDE
SERVICE
CENTRES	Kota Kinabalu
INCORPORATED ON
5thAugust 1994	15

LISTED ON BURSA MALAYSIA

SECURITIES BERHAD (MAIN MARKET) ON

20thNovember 2000

16 14

Sibu

13	Tawau
Miri

12

Kuching

EBIITDA of

RM28.2

million

957

Staff Strength

192

Certified IT

Professionals

3

CORPORATE PROFILE

WHO

WE ARE

HeiTech Padu Berhad is Malaysia's homegrown market leader in the ICT industry providing innovative solutions spanning from system integration, managed infrastructure services to niche and digital solutions across all market segments.

VISION

We aim to be

• the trusted technology partner to enable customers' vision "

MISSION

We fulfil this ambition by

" touching lives with " innovative solutions

CORE VALUES

			PASSION FOR
	INTEGRITY		EXCELLENCE		DYNAMISM		PEOPLE CENTRIC
•	Accountability	•	Service Beyond	•	Stay Ahead	•	Customer Centric
•	Trustworthy		Expectation	•	Professionalism	•	Developing Talent
•	Fairness	•	Role Model	•	Versatility	•	Respect
		•	Responsiveness

4 HeiTech Padu Berhad | Annual Report 2023

SECTION 2: INVESTMENT CASE

CORPORATE PROFILE

WHO IS HEITECH PADU BERHAD

HeiTech Padu Berhad ("HeiTech") a front runner in Malaysia's information technology sector, stands as a beacon of innovation and excellence. With a comprehensive suite of services encompassing system integration, customised application development, managed infrastructure solutions, niche and digital solutions, we cater to diverse industries, driving digital transformation and fostering technological advancement across multiple sectors.

As a prominent global player in the realm of ICT systems and technology services, our influence extends far and wide, enriching the lives of Malaysians and individuals worldwide. Through our commitment to embracing the latest technologies, we have spearheaded transformative initiatives that reshape our customers' business operations, through comprehensive digitisation and digitalisation strategies.

Our strong focus to innovation, coupled with strategic collaboration with stakeholders, has led to the successful execution of numerous large-scale IT endeavours which includes the development of the Malaysian Electronic Government (e-government) initiatives, as a testament to our expertise.

We humanise IT systems by prioritising user experience and incorporating user-centric design principles into our products and solutions. Aligned with our vision, we aspire to be more than just a technology provider; we aim to be the trusted technology partner to enable our customers' vision. Through our commitment to understanding and fulfilling the needs of those we serve, we gain loyalty built on trust, reliability, and mutual success.

Legend

System Integration &

Application Development

Products &

Solutions

Managed

Infrastructure

5

CORPORATE PROFILE

SYSTEM INTEGRATION AND APPLICATION DEVELOPMENT

System Integration is HeiTech's core business where we provide customised application development and maintenance services to serve the specific needs of customers from different industries.

As a comprehensive end-to-end solutions provider, our commitment extends beyond product delivery. We offer a holistic approach encompassing complete project implementation services, ranging from project management and systems management to seamless deployment, comprehensive user training, and ongoing post-implementation support services. Our system integration & application development capabilities, adhere to industry standards such as CMMI and TMMI to ensure efficiency, quality, and reliability in all our deliverables. These core capabilities spanning over the last 30 years, has propelled us forward, driving innovation and excellence in the ever-evolving landscape of technology solutions.

Providing end-to-end solutions covering the entire life cycle of system.

END-TO-END SOLUTIONS

	Project	Post Implementation		User		Deployment	System Integration
	Management				& Application
	Support Services		Training		Services
	Services			Development Services
•	Project Planning,	•	Post	•	End-user	•	Site/Infrastructure	•	Requirement
	Execution,		Implementation		Training		Readiness		Development
	Monitoring &		Review
	Control	•	Application	•	Technical	•	Hardware/	•	System
			Training		Software		Analysis and
•	Project		System Support				Installation,		Design
	Management		& Maintenance	•	Management		Testing and
	Office	•	Hardware/		Training		Commissioning	•	System
							Development
•	Change		Software			•	System
	Management		System Support				Deployment	•	System Testing
	Services		& Maintenance				to Production		(Functional,
		•	Helpdesk				Environment		Performance &
							Security)
			Services
								•	Business
									Process Re-
									engineering

6 HeiTech Padu Berhad | Annual Report 2023

SECTION 2: INVESTMENT CASE

CORPORATE PROFILE

PRODUCTS AND SERVICES

HeiTech has developed multiple products and services that we had successfully marketed to cater for customers' needs across various industries.

1 2 3 4 5 6 SMART SOLUTIONS

Smart Parking Solution ("Park Smart Plus - PS+")

Park Smart Plus - PS+ is a seamless application for parking payment which upgrades the conventional way of parking using coupon. The smart parking application uses an IoT-based system that sends data on the availability of parking places via mobile device. Using state of-the-art technology and fuelled by data, HeiTech's Smart Parking Solutions named Park Smart Plus aims to provide peace of mind by improving the quality of life of the rakyat.

PS+ is now being implemented in Majlis Bandaraya Seberang Prai ("MBSP"), Majlis Bandaraya Pulau Pinang ("MBPP") and Majlis Perbandaran Kulim ("MPKK").

Our Park Smart Plus Solution offerings include:

• Smart parking spot sensor
• Real time parking tracking
• Online platform with data analytics dashboard
• Reload eWallet, parking reservation, history tracking
• Public mobile application
• Park n Pay, purchase monthly passes, pay compound & eWallet
• Enforcement application issue compound, targeted enforcement & ANPR
• eCoupon agent application
• Park n Pay
• API integration to 3rd party custom platforms and mobile applications

Mobile Application Payment Solutions ("Kolleq")

Kolleq is a revenue collection ecosystem that helps to improve collection and resilience against credit losses. Kolleq is designed to help organisations to migrate into digital first collection thus modernising the way collections process is being done and debt is being managed.

Kolleq ecosystem comes with customisations, real time payment updates, marketing support, rewards and notifications. It puts the sustainability in the revenue collection strategy and it also comes with attractive commercial offerings.

Kolleq is now being used in Majlis Perbandaran Port Dickson ("MPPD"), Majlis Bandaraya Seberang Prai ("MBSP") and Majlis Bandaraya Kuantan ("MBK").

School Management Systems ("Proschool")

Proschool is a full-fledged school management systems that comprises of students and teachers management, learning management system (LMS), payment facilities, absentees management, online examinations and results as well as parents management. It is equipped with mobile application for online learning and homework management. Proschools is currently marketed only in Indonesia.

Mobile Application for teachers and students ("GuruPro")

GuruPro is a mobile application that helps teachers and students to interact with each other and manage the day to day operations such as online learning, homework management, online examinations, private or group lessons and subject materials. GuruPro is currently marketed only in Indonesia.

• Gated and enclosed parking solution

7

CORPORATE PROFILE

Electronic Licensing ("eLis")

eLis is electronic license issuance system where it helps organisations to manage the licenses issuance more effectively.

The features of the system includes:

• Manage licenses applications
• Payment of licenses
• Inspection management
• Secure digital certificates
• Manages enforcement
• Automatic reminders

Online Dashboard System ("ezBill")

ezBill is a dashboard system to assist local council's operational activity in disseminating notice assessments, notification and distribution. EzBill helps to induce prompt payments from customers, track document trails, compile and analyse data through heat maps and deliver secured documents to thousands of people via email or short messaging service, with just a single click.

1 2 3 4 5 6 ENTERPRISE SOLUTIONS

Cooperative System ("Sistem Manajemen Informasi Koperasi

• SMIK")

SMIK is a core cooperative application system for the cooperatives. This platform provides seamless cross transaction service within multiple cooperatives and also with external parties. The SMIK apps is ready to be used and available for download in Google Play. SMIK offers a variety of features such as savings, financing, endowment, charity, merchant, and credit top-up. These features are also offered on a customised basis to cater the needs of members of cooperatives. SMIK is currently being implemented in Indonesia.

Payment Gateway Solutions ("t-Pay")

t-Pay is a secured and reliable online payment solution that ensure payment acceptance from any channels; credit/debit card, on-line banking and e-wallet. One notable strength of t-Pay is it allows no code integration, hence Zero IT knowledge is required for businesses to start using t-Pay.t-Pay comes with a built-incheck-out flow so customers can skip the hassle of creating websites to share products and services catalogue. It also provides sharable link so that customers can click, browse and make payment for purchase.

e-KYC Solutions ("t-Verify")

t-Verify is the electronic Know Your Customer (e-KYC) application and is combination of t-VerifyID and t-VerifyFace.T-VerifyID digitally verify real customer identity anytime, anywhere in 30 seconds. During online onboarding process, t-VerifyID creates trusted user identity that allow user to identify himself/herself using a government issued ID such as MyKad. t-VerifyFace enable liveness to be added to e-KYC application to protect against stolen ID. This feature enables biometric technology to be used in the application to enhance security. Face matching algorithm is then used to confirm the owner of the ID is present at the time of the digital identity verification process.

Mobile Application for Islamic transactions ("Falah")

Falah is a mobile application to help Islamic organisation to digitalise its operations, management of sadaqah and others such as khairat kematian, wasiat and hibah.

The application is equipped with learning management system for authorised religious speakers to promote knowledge and engage with students digitally and in a personalise manner. Donations are process in real time and the spreading of Islam has never been so personalise through Falah.

8 HeiTech Padu Berhad | Annual Report 2023