Dear friends of i3 Forum,

To correct misconception & find the truth we think the best is to post "Extracts taken from contents of Hexcap 2024 Annual Reports

And here you go (Refer Bursa Website on Hexcap)

TRANSFORMING

OUR JOURNEY TOWARDS EXCELLENCE

CHAIRMAN’S

STATEMENT

DEAR ESTEEMED

SHAREHOLDERS,

On behalf of the Board, I am pleased to

present you with HCB’s Annual Report for

the FPE 2023. Despite numerous challenges

faced in the business environment, FPE 2023

marked a signifi cant milestone for HCB as we

embarked on a new strategic path by undertaking

several noteworthy corporate exercises during

the fi nancial year. These corporate exercises

demonstrate our commitment in achieving

long-term objectives and navigating

through a transformative phase in

our corporate journey.

Meanwhile, the Malaysian Government has also been actively promoting and supporting digitalisation in the country by

introducing several initiatives such as SME Digitalisation Grant Scheme and MyDIGITAL, recognising that technology

and digital transformation play an important role in driving the country’s economic growth and improving the lives of

our citizens.

HCB Group have been riding on the train to grip the growing opportunities in the telecommunications industry. In

FPE 2023, we have diversifi ed into providing telecommunications network infrastructure solutions via the acquisition

of T & J Engineering Sdn. Bhd. (“TJE”). Our fi nancial results for the FPE 2023 have proven the positive impact of this

strategic move. With this accomplishment, we are now gearing up to expand our core business of the manufacturing

of fibre optic cables to encompass a broader spectrum of telecommunications network services by leveraging on

TJE’s business and network.

ECONOMIC ENVIRONMENT AND OPERATIONAL HIGHLIGHTS (CONT’D)

Mirroring the economic recovery, we have successfully secured multiple contracts to supply fibre optic cabling

systems and related infrastructure works to several prominent telecommunication companies. The acquisition of

TJE will further enhance our Group’s ability to fulfi l these awarded contracts and actively pursue for new contracts/

ventures. Besides, TJE is also one of the appointed key contractors to support in the Jalinan Digital Negara

(“JENDELA”) project, one of the government initiative projects to implement Phase 1 in multiple locations across

Sarawak. The said project aims to provide wider coverage and better-quality broadband experience to the local

community. As such, we are of the view that the acquisition of TJE would provide HCB an immediate access and

opportunity to enlarge its footprint in East Malaysia, increase work productivity and contribute positively to the

government’s nation digitalisation goals.

Following the acquisition of TJE, the Group has also acquired 18.03% equity interest in Binasat Communications

Berhad (“Binacom”) on 2 October 2023. Binacom is primarily involved in the provision of support services for

satellite, mobile and fi bre optic telecommunications networks as well as engineering, procurement, construction and

commissioning (“EPCC”) of solar facilities. On 29 December 2023, upon obtaining approvals from our shareholders

at the Extraordinary General Meeting, the Company has further acquired an additional 6.75% equity interest in

Binacom. This strategic move will enable the Group to equity account for Binacom as an associate company and

leverage on its platform to pursue future contracts, accelerate our expansion and in turn solidify our position in the

telecommunications sector.

Another key milestone marked in FPE 2023 is the acquisition of 49% equity interest in Transgrid Ventures Sdn. Bhd.

(“Transgrid”) along with the diversifi cation into the power generation and transmission business. This strategy is aimed to

diversify our earnings base, thereby creating additional income stream to generate long term value to our shareholders.

In addition, Transgrid is nearing completion on the construction and commissioning of a renewable energy power plant

in Raub, Pahang that will be capable of generating four (4) mega​watts of electricity to Malaysia’s National Grid upon its

commercialisation. As such, we are optimistic about the Group’s growth prospects and outlook, stemming not only from

the immediate benefi ts derived from existing projects but also from the expansion opportunities leveraging on Transgrid’s

current market position in the industry.

With all the abovementioned corporate exercises, the Company has also offi cially changed its name from “Opcom

Holdings Berhad” to “Hextar Capital Berhad” on 1 December 2023 to have a new corporate identity to better refl ect

the Group’s core business and its future undertakings.

FUTURE OUTLOOK

Looking ahead into fi nancial year ending 30 September 2024, the Group is optimistic on its prospects in view of

the increasing demand and government supports in telecommunication industry. Furthermore, our newly acquired

subsidiary, TJE, has already yielded positive returns to the Group. The Group’s position in the telecommunications

industry will be further strengthened by the acquisition of equity interest in Binacom. With our active expansion

strategies, we are confi dent that we can navigate through challenges and capitalise on opportunities with our strong

fi nancial footage, talented team and commitment to innovation and customer satisfaction.

Apart from the telecommunication sector, the power infrastructure market has demonstrated a positive outlook and

strong growth potential, primarily due to government renewable energy initiatives and the nation’s growing demand

for electricity. In addition, Tenaga Nasional Berhad has committed to modernise the national grid with budget up to

RM21.0 billion from 2021 to 2024. Hence, we anticipate that the Group will benefi t from tapping into this rising trend

and seize the associated opportunities. In this regard, we also anticipate better earnings in the forthcoming years,

driven by the synergies arising from our Group’s expanded network.

Moving forward, we believe that our continued investment in the business, commitment to sustainability, and focus on

delivering exceptional services to our customers will drive us to long-term success and thereby generate rewarding

values to the various stakeholders.

OVERVIEW OF BUSINESS AND OPERATIONS

Since 1994, HCB and the Group have been primarily focused on the manufacturing of fi ber optic cables and cablerelated products for the telecommunications industry. HCB Group has served the telecommunications and power

utilities industries in recent decades through its engineering services and acts as a distribution agent and solution

provider for telecommunications products in Malaysia.

HCB has been consistently eyeing suitable opportunities to tap into relevant income-generating businesses that are

sustainable over the long term and enhance our footprint in Malaysia. To this end, the Group has acquired 100%

equity interest in T & J Engineering Sdn. Bhd. (“TJE”) on 7 March 2023. TJE is principally involved in providing

telecommunications network infrastructure solutions, encompassing civil as well as mechanical and electrical

engineering telecommunication infrastructure deployment. The acquisition of TJE enables the Group to tap into the

relevant opportunities in the local telecommunications network industry, driven by capital investments of fi xed and

mobile service providers to support the demand for data and the upcoming proliferation of the 5G network.

Thank you

Regards

Calvin

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