Dear Valued Shareholders, The financial period ended 30 September 2019 has been a challenging year for XOX Group as we strive and manoeuvre through a difficult operating environment by leveraging on our innovative products offering, to achieve a higher revenue of RM311.36 million for the 15-month period. Despite the higher turnover, the Group recorded a loss of RM21.50 million which can be attributed to impairment losses on receivables due to the effect of Malaysian Financial Reporting Standards (MFRS) 9, high initial operating costs for regional expansion program and margin erosions. During the period under review, the Company changed its accounting period from end June to end September. The financial accounts contained in this report is therefore for a 15-month period. Arising from this change, we have taken the conscious decision to utilize the additional time accorded to us to streamline the financial reporting of the Group to conform with MFRS 15 and MFRS 9, which included issues pertaining to revenue recognition and making necessary provisions and impairments. This move is to ensure that moving into the new decade, the Group is more financially resilient. It was due to these changes that the Group registered a loss of RM21.50 million but on a cashflow basis we remain financially healthy. It is also worth noting that we continue to operate with zero bank borrowings.
The Fourth Industry Revolution has closed the connectivity gap and a smart, interconnected pervasive environment will drive the advancement of the revolution. The mobile telecommunication industry is playing a significant role to provide a platform for the access, interconnectivity and applications to enable the digital revolution to take place. With the availability of disruptive digital technologies such as mobile, artificial intelligence (AI), analytics and mobile application, the way we live, work and interact has been transformed. Mobile telecommunication operators are moving beyond the traditional voice, SMS & data business model to explore new revenue streams in the fast-changing competitive digital environment, namely leveraging data assets, cloud and AI technologies and strategic partnerships to develop innovative applications and services.
To continue evolving with the current trends in the mobile telecommunication industry and remain relevant to mobile users, the Group is in the midst of transforming from conventional mobile operator to technology-driven company by implementing innovative technology offerings such as eSIM, eWallet and mobile applications. We are proud to report that based on our efforts, XOX had successfully recorded several momentous achievements in the Group’s corporate history when we became the recipient of various awards. We hope that these awards, as enumerated below, will provide the impetus and pave the way for the continued growth of the Group: • “Best Mobile Virtual Network Operator” in the Star Rating Award 2018 by Malaysian Communications and Multimedia Commission (MCMC) • “MBEA Telco of the Year, Best Data Package for Business Plan” by Mobile Business Excellence Awards (MBEA) • “MBEA Company of the Year” by MBEA.
With our proven track record in gaining new subscribers through innovative products offering over the years and the recognition and awards from MCMC and MBEA, we are assertive to continue to serve the best to our subscribers. We will continue our efforts to differentiate ourselves from competitors as the brand of choice for Malaysian mobile users, at the same time to continue to explore opportunities to strengthen our competitiveness and participate in the development of the nation’s digital transformation. While pursuing new opportunities in the digital environment, the Group remains focused on continuing our path with a group-wide effort to connect people around the world with personally engaging products and services created through an incredibly powerful virtuous cycle of innovation. At the same time, the Group will streamline the operational process and work towards efficiency and focus on improving the margin. Premised on the execution of the Group’s strategic plans, the Board is optimistic that XOX’s outlook remains positive with a clear strategic direction to evolve our business and capture the digital transformation opportunities ahead. APPRECIATION On behalf of the Board, I would like to express my sincere gratitude to the management team and staff for their commitment, continued dedication and loyalty, as well as riding through the headwinds and challenges faced by the Group as a cohesive team. My deepest appreciation also goes to the authorities and regulators, our business partners, associates, customers and valued shareholders for their contribution and trust rendered to the Group. We look forward to growing from strength to strength with their continued support. Finally, I would like to extend my heartfelt appreciation to my fellow Board members for the dedication, valuable advice, and service to the Board. I trust that their stewardship of our Board will steer XOX towards greater heights.
XOX Bhd is the first Mobile Virtual Network Operator (“MVNO”) listed on Bursa Malaysia. The Group is involved in providing mobile telecommunication products and services without having its licensed frequency allocation of radio spectrum, mobile and digital network infrastructure. XOX Group operates as an Enhanced Service Provider, where we control all aspects of our subscriber relationships, including the brand name, pricing, content, advertising and marketing, customer care and information technology platform. We also distribute our own SIM cards and have our billing system, SMS centre and network elements. The core business activities of the Group is simcard business, comprise of “ONEXOX PREPAID”, a mobile plan caters for prepaid subscribers; “ONEXOX BLACK” with “BURNPROOF” feature which enables subscribers to carry forward unused monthly data as well as sharing their data among other subscribers; and Season Pass which offers unlimited sharing of DATA, Talk Time & SMS Quota to All XOX Mobile numbers. XOX remains innovative in its offering by delivering unique products and value proposition which differentiate XOX from other operators. XOX approach is focusing on savings for the subscribers whereby we strive to provide the best value for money products and services to our subscribers. The Group has taken various efforts to differentiate itself from competitors and present itself as the brand of choice to Malaysian mobile users. These include increasing ground visibility and branding by having more stores and promotional spaces to increase public exposure and accessibility to the Group’s products and services, revamping business support system to ensure more streamlined user experience and allowing subscriber management on multiple channels. The Group is also in the midst of transforming itself from a conventional mobile operator to a technology-driven company by implementing new technology offerings to explore new opportunities in a fast-changing competitive landscape.
According to the regional expansion plan, a Joint Venture Company, PT Nusantara Mobile Telecommunication was incorporated on 12 September 2018 in Indonesia.
BUSINESS AND OPERATIONAL REVIEW In February 2019, XOX launched “XOX eSIM”, the new mobile subscription plan based on eSIM technology in Malaysia. eSIM (short for embedded SIM card) is a virtual SIM card where data is stored in a small chip embedded into a smartphone that supports the eSIM technology. As part of the digital initiative, XOX Group has introduced XOX Black Apps to enhance user experience in July 2019. During the reporting period, the Group also working on XOX CRM, a big data project using machine learning technology has produced complex analysis and created the potential for XOX to cross-sell and brand out non-XOX services offering to satisfy subscriber lifestyle need. Our product, ONEXOX Black enable prepaid segment subscribers to enjoy better value especially from mobile broadband with a lower monthly commitment coupled with carrying forward quota goes against the industry norm of forfeiting unutilized quota for the month. Besides, as the plan is built on XOX’s NGIN billing system, subscribers have the flexibility to pay the bills as usual or to use prepaid reload mechanism to pay their charges (reload coupon, e-recharge). The approach is powerful and unconventional, especially in the market where operators tried to maximise profitability through various conditions imposed on subscribers. XOX take away all those conditions to offer real value to subscribers. In the simcard business, XOX adopted two approaches to reach out to consumers and facilitate the delivery of service (simcard purchases). One is online where subscribers do it themselves and the primary approach today is through the dealer network. XOX dealer network is unique to other operators as the business model enables the dealer to enjoy continuous income rather than 1 time off or campaign basis. The business model is significant as XOX can build strong loyalty from the dealer and produces quality subscribers with continuous usage.
Today the penetration and presence of XOX and its dealership have shifted more towards the suburban and urban area. For further market penetration, XOX has lined up and implemented several strategies which include setting up of XOX centres (SPACE), XOX Preferred Partner – XPP (Centres managed by dealers) and X-Force (XOX sales booth at strategic locations). XOX continue to enlarge customer base to strengthen the market position supported by business plans for revenue growth; besides further enhancement on the existing products offerings, we will also focus on new technology offerings and digital products in response to the digital transformation and capture opportunities from mobile internet and big data.
OUR APPROACH Sustainability has always been a pillar of the Group’s culture as we strived to achieve continuing growth and profitability in a safe, caring and sustainable environment. We recognise that sustainability practices are one of the important criterion in investors’ investment decisions. In line with Bursa Malaysia Securities Berhad’s Sustainability Reporting Guide (2nd Edition), the Group’s sustainability practices are to ensure that economic, environmental and social risks and opportunities are tied in with our governance framework and social responsibilities. This also enables our corporate success and behaviour to be judged and measured by the public. In this respect, as a responsible corporate citizen, our mission is to ensure high standards of governance across our business to promote responsible business practices, manage environmental impacts, and meet the social needs of the community in which we operate. XOX Bhd (“XOX”)’s continued success in maintaining a sustainable business and generating longterm shareholders’ value is influenced by several internal and external factors. Each material factor presents unique risks and opportunities to our organisation, and is a key consideration in our approach to strategies formulation and execution as it substantially influences the assessments and decisions of our stakeholders. We regularly review these factors to assess their impacts on our business model over the near, medium and long term. SUSTAINABILITY STATEMENT ECONOMIC: Sustaining our economy Delivering sustainable returns to our shareholders Delivering quality products and services to achieve customers’ satisfaction ENVIRONMENT : Conserving our environment Protecting and preserving the environment SOCIAL: Serving our community Ensuring a positive workplace for our employees Contributing to the well-being of the community around us
The Group values its customers as they are a major reason for its profitability. Our marketing and sales representatives schedule regular meetings, both formal and informal, with our customers to build a strong and conducive relationship. The objective of this is to promote a culture of open communication, trust and reliability. Our Group recognises that customers’ satisfaction is one of the key factors underlying the long term sustainability of our Group’s operations. It is the fundamental policy of our Group that our products, services and mobile applications must be of high quality to ensure customers’ satisfaction. We uphold the belief that customers rights should be preserved at all times and are on continuous endeavours to create value-for-money for our customers. We also wish to be a responsive and reliable partner to our customers within their respective markets. In this context, it must be noted that XOX is recognised as “Best Mobile Virtual Network Operator” in the Star Rating Award 2018 awarded by Malaysian Communications and Multimedia Commission (MCMC), and also awarded as “MBEA Telco of the Year, Best Data Package for Business Plan” and “MBEA Company of the Year” in the Mobile Business Excellence Awards (MBEA) of year 2018.
As part of the sustainability move, the Group has on February 2019 launched XOX eSIM, its new mobile subscription plan based on eSIM technology in Malaysia. eSIM, short for embedded SIM card, is a virtual SIM card where data is stored in a small chip embedded into a smartphone that supports the eSIM technology. Currently, XOX eSIM enables its subscribers to make phone calls, answer phone calls and use mobile data service without having a physical SIM as all information is updated wirelessly. In line with the Group’s business plan to gradually focus on the eSIM market, the Group intends to progressively upgrade its platform to enhance its features and capabilities so that it will be catered for eSIM technology. Secondly, as e-money and e-wallets are gaining popularity, XOX intends to expand its e-wallet functionality by developing a new mobile application specifically to cater for this function. The new mobile application will allow smartphone users to deposit money into a virtual money account i.e. the e-wallet. Apart from being able to reload mobile prepaid credits, the amount stored in the e-wallet can also be used in other ways. The Group will continue to expand the customer base in order to strengthen our market position coupled with the expansion plans for revenue growth. Asides, we are also focusing on technology ideas which can be complement to XOX current business or leverage on the captive market to implement new technological offerings and digital products in response to the digital transformation and capture opportunities from our big data. To achieve sustainability in the long run, the Group opined that other diversification in terms of products and geographical shall also be ventured into to enhance its financial performance and in turn its’ shareholders’ value.
ramai dah berkorban semasa 30sen - 39.5sen untuk masa depan xox, kini masa untuk new investors kut? lelong price saja 10.5sen kan? habis stok tak lama lagi kut? :)
XOX is growing rapidly and it needs money for capex. PP is an alternative to right issue or bank borrowing.
Revenue was flying from FYE 2015 hanya RM90mil+ to RM311mil+ in FYE2019, itu traction macam satu mukjizat kan?
Lagipun, xox tak suka pakai pinjaman bank, rujuk kepada *********** kat bawah.
Jadi PP adalah bagus berbanding dengan RI kerana bukan semua existing shareholders ada duit. Jadi, PP takers diberikan sedikit diskaun sebagai insentif, lagipun PP bukan pinjaman, tak payah dibayar balik oleh XOX. Net assets per share 8.5sen ++, as long as PP price above it, NAV per share turut naik.
Apa yang penting adalah supaya XOX terus berkembang dan menjana keuntungan kelak.
Sekian!
During the period under review, the Company changed its accounting period from end June to end September. The financial accounts contained in this report is therefore for a 15-month period. Arising from this change, we have taken the conscious decision to utilize the additional time accorded to us to streamline the financial reporting of the Group to conform with MFRS 15 and MFRS 9, which included issues pertaining to revenue recognition and making necessary provisions and impairments. This move is to ensure that moving into the new decade, the Group is more financially resilient. It was due to these changes that the Group registered a loss of RM21.50 million but on a cashflow basis we remain financially healthy. It is also worth noting that we continue to operate with zero bank borrowings*************.
Bagi mereka yang dah rugi besar dalam xox, usah kecewa dan menangis. Move on saja. Dulu 39.5sen, kini 10.5sen, ~75% lebih murah, satu unique opportunity proposition kan? :)
Good123 XOX is growing rapidly and it needs money for capex. 我听你屁话 ! 年年都讲要钱扩大业务就会增长 !懒趴啦你...其实都是Good123 亏钱生意是你经营一年就停止这个业务了...他亏了10年还在那边经营到爽爽...不懂真亏假亏???????? 这些仙股都是集到多多资金就做账巨亏几千万一次过把资金都吸干!
Kalau tak faham syarikat teknologi, usahlah meroyan. memalukan diri sendiri saja.
Jualan tahunan XOX melebihi RM311 juta ++ dalam tahun 2019. Walaupun, harga syernya murah kerana 'undervalued'. Grab, airbnb, dll walaupun masih rugi dan minta wang daripada para pelabur berterusan sebab capex yang kian bertambah demi pertumbuhan, para pelabur tetap melabur. Airbnb juga bersedia untuk disenaraikan di bursa Amerika walaupun masih rugi.
Bila XOX menjadi untung nanti, harga syernya akan melambung berganda-ganda kali. NAV sesaham digi lebih rendah daripada xox tapi harga syernya RM4+. XOX akan melambung tinggi jika ia melaporkan keuntungan kelak. Rakan bisnes XOX seperti Alipay(Ant Group) membuktikan keyakinan konglomerate besar dunia terhadap kehandalan/kebolehan XOX.
Usahlah meroyan macam orang tak siuman jika tak faham bisnes teknologi. Sungguh memalukan! :)
@kenie Good123 XOX is growing rapidly and it needs money for capex. 我听你屁话 ! 年年都讲要钱扩大业务就会增长 !懒趴啦你...其实都是Good123 亏钱生意是你经营一年就停止这个业务了...他亏了10年还在那边经营到爽爽...不懂真亏假亏???????? 这些仙股都是集到多多资金就做账巨亏几千万一次过把资金都吸干! 04/12/2020 6:57 PM
Good123. Wow you're super duper XOX troopers. How much you CWC pay you. Kah kah kah. Talk about profit, how many times XOX post positive qr. Somemore chart never lies. You pun kaki goreng ma bukan investor pun. Lagi mau tipu orang.
Many traders dah declare bankrupt, go crazy or cuba membunuh kut ? just move on, no point being bitter anyway. New millionaires will emerge, just transfer of wealth among the people :)
@canbuyla sadlife....so many got caught and loss big...
kamu memang penipu terbesar, kalau tak faham,dll usahlah komen, naif betul. haha
@halooo Good123. Wow you're super duper XOX troopers. How much you CWC pay you. Kah kah kah. Talk about profit, how many times XOX post positive qr. Somemore chart never lies. You pun kaki goreng ma bukan investor pun. Lagi mau tipu orang. 04/12/2020 9:09 PM
Just wait for AGM this Thursday.. we will ask them regarding the progress of 5G venture with China company... We will know XOX Macau Scam Manipulator company
Digital bank License to be issued next year will be good news for many tech players including xox as xox’s existing biz partner ant Group is involved in it in Singapore :)
SINGAPORE - The Monetary Authority of Singapore (MAS) said on Friday (Dec 4) it will award digital full bank licences to the Grab-Singtel consortium and tech giant Sea, in a first for the city-state and a highly anticipated move that aims to liberalise the financial industry.
Like traditional banks, these players will provide retail customers with services such as opening accounts, deposits as well as issuing debit and credit cards.
However, digital banks will not have a physical presence and all banking services will be done online.
This is different from traditional banks - such as DBS, OCBC and United Overseas Bank - which offer some banking services via the Internet or mobile apps.
Digital full banks can also serve corporate customers.
Singapore's central bank will also grant digital wholesale bank licences to Ant Group as well as a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management.
Greenland Financial is the investment arm of Chinese real estate developer and state-owned enterprise Greenland Group, while Linklogis Hong Kong is a supply chain financing firm.
Digital wholesale banks can serve corporates and small and medium-sized enterprises.
MAS said in a statement on Friday that the successful applicants must meet all relevant prudential requirements and licensing preconditions before MAS grants them their banking licences.
The four successful applicants beat 10 other contenders, such as Razer Youth Bank; and a consortium led by Osim founder Ron Sim's V3 Group and EZ-Link.
They are expected to start business from early 2022.
MAS chief Ravi Menon said the central bank applied a "rigorous, merit-based process to select a strong slate of digital banks".
"We expect them to thrive alongside the incumbent banks and raise the industry's bar in delivering quality financial services, particularly for currently underserved businesses and individuals. They will further strengthen Singapore's financial sector for the digital economy of the future," he said.
Singapore’s first digital banks: What services can you expect Digital banks will transform Singapore landscape for the better, say experts MAS said that it set stringent expectations across the assessment criteria in the selection process.
It said: “The two selected digital full bank (DFB) applicants were clearly stronger than the other eligible DFB applicants.
“As for the digital wholesale banks (DWBs), the two selected applicants met MAS’ expectations and were assessed to be demonstrably stronger across the criteria notwithstanding the general high quality of the eligible applicants.”
MAS added that it will review whether to grant more DWB licences in the future as the licences are being introduced as a pilot.
Ant Group, which will be issued a DWB licence, said it is grateful for the opportunity to further contribute to accelerating digital financial innovation and inclusion in Singapore and the region.
“We look forward to building stronger and deeper collaborations with all participants in the financial services industry in Singapore, as we work together to make financial services more accessible for SMEs while supporting local talent development in the process,” it said.
Grab-Singtel consortium to hire 200 staff in banking, fintech, tech roles for its digital bank Grab-Singtel digital bank venture hires Charles Wong from Citigroup Mr Anthony Tan, group chief executive and co-founder of Grab, said: “We are honoured to have this opportunity to build Singapore’s next-generation digital bank, and open up access to easy-to-understand and relevant financial services.”
Likewise, Mr Yuen Kuan Moon, group chief executive officer-designate of Singtel, said that with Singtel and Grab’s combined digital expertise and customer knowledge, the consortium is well-placed to improve banking services for consumers and enterprises.
Mr Forrest Li, chairman and group chief executive officer of Sea, said: “As a proudly home-grown company, we look forward to further contributing to the long-term development of our nation’s digital economy, creating more employment opportunities in Singapore, and empowering our whole community to thrive in the digital era.”
DBS Singapore country head Shee Tse Koon said: "We congratulate the successful applicants and welcome them to our world, where digital banking is already a reality... We believe that the new entrants will spur us all
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TRADE at your own RISK.
Already stated that, they keep some UNETHICAL people to spread false hope ONLINE