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Extracted from Annual Report 2019

Dear Valued Shareholders,

On behalf of the Board of Directors, it is with great pleasure that we present to you the Annual Report for Dayang Enterprise Holdings Bhd ("the Group") for the financial year ended 31 December 2019.

Before the year 2019 ended, we were all very upbeat and bullish about going into the new year 2020 as we have achieved much in 2019 amidst the frequent financial market volatilities like the US-China trade tensions and geo-political upheavals. Our financial performance for 2019 was spectacular and our share price was hitting new highs. However, the optimism was but short-lived and it quickly diminished within a matter of weeks as the volatilities extended into 2020 when the contagious COVID-19 outbreak caught the world by surprise. The wide-ranging implications of the fast-spreading COVID-19 have immensely disrupted global supply chains, business operations, economic, social, religious and sporting activities affecting the whole spectrum of everyone's daily lives. All these, together with a steep plunge in crude oil prices, led to a massive stock sell-off causing a carnage in the equities markets world-wide. In addition, this was further aggravated by the failure of Organization of Petroleum Exporting Countries ("OPEC") and OPEC+ to agree on a massive oil production cut to cushion the impact of a weakening demand. Every country is pouring billions of dollars into economic stimulus packages to prevent their economies from going into recession and as part of a bigger world-wide strategy to avert this major crisis from developing into something worse.

Notwithstanding the negative turn of events recently, we are proud to announce that we have achieved the best ever annual profits in the long history of the Group in financial year 2019. Despite the external uncertainties and multiple headwinds from all directions, the Group has grown from strength to strength to hit the significant milestone, registering a massive 44% growth for our 2019 profits after a stellar performance in 2018. The strong growth momentum has been envisaged as we maintained and carefully executed our business plans throughout the year.

What makes our success tastes better is that this comes in the midst of a synchronized slowdown in economic growth not just in Malaysia but also across the world. Notwithstanding the external macro headwinds due to the US-China trade tension in 2019, the Group continues to focus on delivering the work orders entrusted by our esteemed customers. Our unwavering pursuit for better operational excellence in delivering the hook-up commissioning and topside maintenance services remains as the cornerstone of our business. Also, our strong execution track record is another quality that adds to the sparkle.

We have achieved tremendous success over the past one year. Apart from our impressive financial results, we have finally and successfully completed our groupwide debt restructuring which will stand us in good stead going forward as the Group is now ready to embark on long-term growth plans to further maximise shareholders value given our more efficient capital structure. We are confident that our strong cash flow generation and solid balance sheet will enable us to achieve greater heights in the future for us to reward our faithful shareholders who have remained steadfast with us throughout the journey. We would like to emphasise that this would not be possible without the strong team effort of our loyal employees who have remained with the Group despite the challenges in the past.

Meanwhile, our vessel-chartering subsidiary, Perdana Petroleum Berhad ("PPB") has also seen improvement in 2019 with better vessel utilisation despite the competitive market for offshore supply vessels. We are particularly delighted that the synergistic collaboration between the Group and PPB has indeed worked out as what we have envisaged, to be a leading integrated maintenance, construction and modification player. We believe this strong tie-up will enable the Group to attain unrivalled competitive advantage to bid for more jobs.

At this juncture, we would like to take this opportunity to express our heartfelt appreciation to all our dedicated Board of Directors, management team and employees who continue to place their faith with the company. The Group continues to keep the interest of its team members at the top of its priority as they are the core to the success of the Group all these years. Riding on the strong foundation, we are confident that the Group will continue to achieve good results and we are optimistic of steering the group to greater heights going forward.

Thank you

DATUK HASMI BIN HASNAN
Executive Chairman