SEDANIA INNOVATOR BERHAD [Registration No.

201301044527 (1074350-A)]

SEDANIA INNOVATOR BERHAD

[Registration No. 201301044527 (1074350-A)]
(“SIB” OR THE “COMPANY”)

INTERIM FINANCIAL REPORT FOR THE

SECOND (2nd) QUARTER ENDED 30 JUNE 2022

Contents Page

Unaudited Condensed Consolidated Statement of Profit or Loss and Other 2

Comprehensive Income

Unaudited Condensed Consolidated Statement of Financial Position 3

Unaudited Condensed Consolidated Statement of Changes in Equity 4

Unaudited Condensed Consolidated Statement of Cash Flows 5-6

Notes to the Condensed Consolidated Financial Report 7

 SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME FOR THE SECOND (2nd) QUARTER
ENDED 30 JUNE 2022

Quarter Ended Year-To-Date Ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 Changes 2022 2021 Changes
RM’000 RM’000 % RM’000 RM’000 %

Revenue 9,084 10,836 (16) 18,123 27,904 (35)

Other income 2,587 1,555 66 3,281 2,047 60
Cost of sales (5,581) (4,724) 18 (10,331) (12,715) (19)
Administration expenses (4,677) (4,167) 12 (8,721) (8,623) 1
Profit/(Loss) from operations 1,413 3,500 (60) 2,352 8,613 (73)
Finance costs (94) (49) 92 (204) (79) >100
Share of result of associates,
net of tax - - - - - -
Profit/(Loss) before taxation 1,319 3,451 (62) 2,148 8,534 (75)
Taxation (663) (236) >100 (982) (427) >100
Profit/(Loss) for the period,
representing total 656 3,215 (80) 1,166 8,107 (86)
comprehensive income/(loss)

NET PROFIT/(LOSS) ATTRIBUTABLE TO:

- Owners of the parent 530 2,466 (79) 813 6,675 (88)
- Non-controlling interests 126 749 (83) 353 1,432 (75)
656 3,215 (80) 1,166 8,107 (86)
TOTAL COMPREHENSIVE
INCOME/(LOSS) ATTRIBUTABLE TO:
- Owners of the parent 530 2,466 (79) 813 6,675 (88)
- Non-controlling interests 126 749 (83) 353 1,432 (75)
656 3,215 (80) 1,166 8,107 (86)

Weighted average number of

ordinary shares (‘000) 347,149 311,008 12 347,149 311,008 12

Earnings per share

attributable to the owners of
the parent (Sen):
- Basic 0.15 0.79 (81) 0.23 2.15 (89)
- Diluted 0.15 0.79 (81) 0.23 2.14 (89)

(The unaudited condensed consolidated statement of profit or loss and other comprehensive income should
be read in conjunction with the audited financial statements for the year ended 31 December 2021 and the
accompanying explanatory notes attached to this interim financial report.)

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL

POSITION AS AT 30 JUNE 2022

Unaudited Audited
as at as at
30 Jun 2022 31 Dec 2021
RM’000 RM’000
NON-CURRENT ASSET
Property, plant and equipment 3,412 3,496
Right-of-use assets 1,178 971
Lease receivables 15,525 14,905
Deferred tax asset 407 407
Investment in associates 436 -
20,958 19,779

CURRENT ASSETS
Receivables, deposit & prepayments 13,402 9,913
Lease receivables 309 1,710
Inventories 5,975 7,094
Short term funds 6,038 6,799
Cash and bank balances 4,482 6,508
Current tax asset 40 53
30,246 32,077
TOTAL ASSETS 51,204 51,856

EQUITY
Share capital 65,649 65,649
Reserves (28,523) (29,345)
Non-controlling interest 4,000 4,627
TOTAL EQUITY 41,126 40,931

NON-CURRENT LIABILITIES
Bank borrowing 3,313 3,355
Lease liabilities 514 542
Deferred tax liabilities 2 2
3,829 3,899
CURRENT LIABILITIES
Payables, accruals & other current
liabilities 3,032 4,341
Lease liabilities 777 539
Bank borrowing 2,297 1,748
Current tax liability 143 398
6,249 7,026
TOTAL LIABILITIES 10,078 10,925

TOTAL EQUITY AND LIABILITIES 51,204 51,856

Weighted average number of ordinary

shares (‘000) 347,189 329,247

NET ASSETS PER SHARE (Sen) 11.85 12.43

(The unaudited condensed consolidated statement of financial position should be read in conjunction with
the audited financial statements for the year ended 31 December 2021 and the accompanying explanatory
notes attached to this interim financial report.)

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SECOND (2nd) QUARTER ENDED 30 JUNE 2022

Share ESOS Reorganisation Retained Total Non- Total

Capital Reserve Reserve earnings controlling Equity
interest
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Current year-to-
date ended 30
June 2022
Balance as at 1
65,649 50 (24,439) (4,956) 36,304 4,627 40,931
January 2022
Total comprehensive
- - - 813 813 353 1,166
income
Transactions with
owners:
Share options vested
- 9 - - 9 - 9
under ESOS
Dividends - - - - - (980) (980)

Balance as at 30
65,649 59 (24,439) (4,143) 37,216 4,000 41,126
June 2022

Preceding year
corresponding
period ended 30
June 2021
Balance as at 1
52,895 120 (24,439) (13,255) 15,321 2,606 17,927
January 2021
Total comprehensive
- - - 6,675 6,675 1,432 8,107
income
Transactions with
owners:
Issuance of shares:
12,451 - - - 12,451 - 12,451
Private Placement
Proceeds from
303 (115) - - 188 - 188
ESOS
Share options
granted under - 12 - - 12 - 12
ESOS
Balance as at 30
65,649 17 (24,439) (6,580) 34,647 4,038 38,685
June 2021

(The unaudited condensed consolidated statement of changes in equity should be read in conjunction with
the audited financial statements for the year ended 31 December 2021 and the accompanying explanatory
notes attached to this interim financial report.)

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR

THE SECOND (2nd) QUARTER ENDED 30 JUNE 2022

Current Preceding
year to date year to date
30 Jun 30 Jun
2022 2021
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 2,148 8,534
Adjustments for:
Depreciation of property, plant and equipment 148 198
Depreciation of right-of-use assets 363 138
Share options vested under ESOS 9 47
Interest expense 174 73
Interest expense on lease liabilities 30 6
Income distribution from short term funds (44) (14)
Interest income from finance lease (928) (1,091)
Impairment losses on trade & finance lease receivables - 1,468
Reversal of impairment losses on trade receivables (2,202) (1,000)
Unrealised loss on foreign exchange - 1
Operating (loss)/profit before working capital changes (302) 8,360

Changes in working capital:

Trade and other receivables (3,568) 3,443
Inventory 1,119 (964)
Lease receivables 1,920 (10,376)
Trade and other payables 2,007 (125)
1,478 (8,022)
Cash generated in operations 1,176 338
Tax paid (982) (427)
NET CASH GENERATED FROM/ (USED IN)
OPERATING ACTIVITIES 194 (89)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (64) (80)
Income distribution received from short term funds 44 14
Investment in a subsidiary - (11,240)
Investment in associate (436) (333)
Unrealised loss on foreign exchange - (1)
Payment to ultimate holding company in respect of profit
guarantee (1,938) (1,938)
NET CASH USED IN INVESTING ACTIVITIES (2,394) (13,578)

CASH FLOWS FROM FINANCING ACTIVITIES

Drawdown of bank borrowing 1,130 2,412
Repayment of term loan (173) (117)
Interest on term loan (137) (73)
Repayment of lease liabilities (361) (129)
Interest on lease liabilities (30) (6)
Interest paid on letter of credit and revolving credit (36) -
Proceeds from issuance of shares - 12,638
Dividend paid (980) -
NET CASH (USED IN)/ GENERATED FROM
FINANCING ACTIVITIES (587) 14,725
NET (DECREASE)/ INCREASE IN CASH AND CASH
EQUIVALENTS (2,787) 1,058

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

CASH AND CASH EQUIVALENTS AT BEGINNING OF 13,307 13,393

THE FINANCIAL PERIOD

CASH AND CASH EQUIVALENTS AT END OF THE 10,520 14,451

FINANCIAL PERIOD

Cash and cash equivalents comprised the following:

Cash and bank balances 4,482 4,753
Short term funds 6,038 9,698
10,520 14,451

(The unaudited condensed consolidated statement of cash flows should be read in conjunction with the
audited financial statements for the year ended 31 December 2021 and the accompanying explanatory
notes attached to this interim financial report.)

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL REPORT FOR THE

SECOND (2nd) QUARTER ENDED 30 JUNE 2022

A: EXPLANATORY NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT

FOR THE QUARTER ENDED 31 DECEMBER 2022.

A1. Basis of preparation

The interim financial statements are unaudited and have been prepared in
accordance with the Malaysian Financial Reporting Standards (“MFRS”) 134:
Interim Financial Reporting, Rule 9.22 and Appendix 9B of the Listing
Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”).

The condensed consolidated interim financial statements should be read in

conjunction with the audited financial statements for the financial year ended 31
December 2021, which have been prepared in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and
the requirements of the Companies Act 2016 in Malaysia.

A2. Significant Accounting Policies

The accounting policies and methods of computation used in the preparation of

the interim financial statements are consistent with those adopted in the audited
financial statements for the financial year ended 31 December 2021 except for the
adoption of the following standards that became effective for financial period
beginning 1 January 2022:

Title Effective Date

Amendments to MFRS1 First-time Adoption of Malaysian Financial 1 January 2022
Reporting Standards (Annual Improvements to MFRS Standards 2018-
2020)
Amendments to MFRS 3 Business Combinations - Reference to the 1 January 2022
Conceptual Framework
Amendments to MFRS 9, Financial Instruments (Annual Improvements to 1 January 2022
MFRS Standards 2018−2020)
Amendments to Illustrative Examples accompanying MFRS 16, Leases 1 January 2022
(Annual Improvements to MFRS Standards 2018−2020)
Amendments to MFRS 116, Property, Plant and Equipment − Proceeds 1 January 2022
before Intended Use
Amendments to MFRS 137, Provisions, Contingent Liabilities and 1 January 2022
Contingent Assets − Onerous Contracts − Cost of Fulfilling a Contract
Amendments to MFRS 141, Agriculture (Annual Improvements to MFRS 1 January 2022
Standards 2018−2020)

The adoption of the above standards does not have any significant impacts to the
current financial period.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

Standards issued but not yet effective

The Group has not adopted the following pronouncements that have been issued
but not yet effective:

Title Effective Date

Amendments to MFRS 101 Classification of Liabilities as Current or Non- 1 January 2023
current
MFRS 17 Insurance Contracts 1 January 2023
Amendments to MFRS 17 Insurance Contracts 1 January 2023
Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets Deferred
between an Investor and its Associate or Joint Venture

The Group and the Company are in the process of assessing the impact of
implementing these Standards and Amendments, since the effects would only be
observable for future financial years.

A3. Auditors’ report of preceding annual financial statements

There was no qualification to the audited financial statements of the Group for the
financial year ended (“FYE”) 31 December 2021.

A4. Seasonal or cyclical factors

The business operations of the Group during the financial period under review
have not been materially affected by any seasonal or cyclical factors.

A5. Unusual items

There were no unusual items affecting assets, liabilities, equity, net income or cash
flows of the Group during the quarter under review.

A6. Material changes in estimates

Not applicable as there were no estimates reported in the prior financial years.

A7. Debt and equity securities

There was no issuance, cancellation, repurchases, resale and repayments of debt

and equity securities in the current quarter and financial period ended 30 June
2022.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

A8. Segmental information

For management purposes, the Group is organised into five (5) operating
segments which reflect the internal organisational and management structure
according to the nature of the products and services provided. We measure the
results of our segments using, among other measures, each segment's net
revenue and operating income, which includes certain corporate overhead
allocations.

a) Sustainable Healthcare
Provision of consumer products specialising in healthcare, personal care,
household as well as baby and childcare products; and health technologies
specialising in preventative healthcare technology solutions.

b) Sustainable Energy
Provision of green technology and internet of things (“IoT”) solutions for
sustainable and environmentally friendly products and services.

c) Financial Technology (“FinTech”)

Provision of financial technology solutions for the banking industry.

d) Telco Technology (“TelcoTech”)

Providing the technology on Airtime sharing for telecommunication providers.

e) Others
Others mainly comprise provision of big data analytics services and operations
relating to investment holding.

Segment assets and liabilities exclude current and deferred tax assets and
liabilities.

The Group’s segmental analysis by operating segments are as follows:

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Segment revenue
Sustainable Healthcare 7,104 6,402 14,427 11,739
Sustainable Energy 124 2,744 179 12,906
FinTech 1,203 1,117 2,350 2,081
TelcoTech 653 573 1,167 1,168
Others - - - 10
Total revenue 9,084 10,836 18,123 27,904

Segment operating profit/(loss) before tax

Sustainable Healthcare 854 1,722 1,568 3,266
Sustainable Energy 714 1,764 663 5,432
FinTech 371 322 785 464
TelcoTech (195) 138 (214) 293
Others (425) (495) (654) (921)
Operating profit
1,319 3,451 2,148 8,534
before tax

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

30 Jun 30 Jun
2022 2021
RM’000 RM’000
Segment Assets
Sustainable Healthcare 16,174 12,903
Sustainable Energy 22,587 19,969
FinTech 5,010 1,835
TelcoTech 3,837 4,329
Others 3,149 10,641
Total Assets 50,757 49,677

Segment Liabilities
Sustainable Healthcare 5,540 4,245
Sustainable Energy 2,483 2,916
FinTech 287 290
TelcoTech 1,385 1,533
Others 238 2,101
Total Liabilities 9,933 11,085

The Group’s revenue based on geographic location of its customers are as

follows:-

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Malaysia 7,377 8,732 14,541 24,911
Asian countries other 643 629 1,537 1,259
than Malaysia
Europe 908 1,290 1,820 1,490
Others 156 185 225 244
Total 9,084 10,836 18,123 27,904

Year to date revenue from Malaysia, Asian countries other than Malaysia, Europe
and Others contributed to approximately 80.23%, 8.48%, 10.05% and 1.24%
respectively of the Group’s total revenue.

A9. Valuation of property, plant and equipment

The Group has not carried out any valuation of its property, plant and equipment
in the current quarter.

A10. Capital commitment

There was no capital commitment recognised by the Group for the current quarter.

A11. Changes in the composition of the Group

There were no changes in the composition of the Group in the current quarter.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

A12. Contingent liabilities and contingent assets

There were no changes in contingent liabilities or contingent assets since the last
annual reporting period date up to the date of this report.

A13. Material events subsequent to the end of the quarter

Save as disclosed in Note B6, there were no other material events subsequent to
the end of the current quarter and financial year-to-date that have not been
reflected in this interim financial report.

A14. Significant related party transaction

Save as disclosed, there was no significant related party transaction entered into
during the current quarter.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

B. ADDITIONAL INFORMATION REQUIRED BY THE LISTING REQUIREMENTS

B1. Group’s Financial Performance Review and Segmental Analysis

Overall review of the Group’s financial performance

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 Changes 2022 2021 Changes
RM’000 RM’000 % RM’000 RM’000 %
Revenue 9,084 10,836 (16) 18,123 27,904 (35)
Operating Profit 1,413 3,500 (60) 2,352 8,613 (73)
Profit Before Interest and
Tax 1,413 3,500 (60) 2,352 8,613 (73)
Profit Before Tax 1,319 3,451 (62) 2,148 8,534 (75)
Profit After Tax for the
656 3,215 (80) 1,166 8,107 (86)
Period
Profit After Tax &
Attributable to Ordinary
530 2,466 (79) 813 6,675 (88)
Equity Holders of the
Parent

(i) Statement of Profit and Loss and Other Comprehensive Income

Group revenue for 2Q 2022 was RM9.08 million, a decrease of 16% from RM10.84
million in 2Q 2021. This was mainly due to lower contributions from the Sustainable
Energy segment during the quarter under review compared to the preceding year
corresponding quarter.

Consequently, the Group’s operating profit before tax decreased by RM2.13 million
or 62% as compared to 2Q 2021.

Group profit after tax in 2Q 2022 was RM0.66 million compared to a profit after tax
of RM3.22 million in 2Q 2021.

A segmental breakdown and analysis by operating segments are provided under

item A8 and “Segmental Analysis” below.

(ii) Statement of Financial Position

As at 30 June 2022, total equity attributable to the owners of the Company was
RM41.13 million as compared to RM40.93 million as at 31 December 2021.

Total assets decreased to RM51.20 million in 30 June 2022 compared RM51.86

million in 31 December 2021. This was mainly due to the decreased in inventories
of approximately 15.77%, but offset by increased in total receivables, deposit &
prepayments of 35.19% as compared to 31 December 2021.

Total liabilities decreased from RM10.93 million as of 31 December 2021 to

RM10.08 million as of 30 June 2022. The decrease in total liabilities was driven
mainly by the decrease in trade and other payables and current tax liability in the
current period.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

(iii) Statement of Cash Flows

The Group recorded a net cash outflow of RM2.79 million as at 30 June 2022. As
at 30 June 2022, the Group had short-term deposits and bank balances of
RM10.52 million, borrowings of RM5.61 million and lease liabilities of RM1.29
million.

For the six (6) months ended 30 June 2022, the net cash generated from operating
activities of the Group was RM0.19 million as compared to net cash used of
RM0.09 million in the previous corresponding period in 2021.

Net cash used in investing activities was RM2.39 million in the six (6) months
ended 30 June 2022, as compared to RM13.58 used in the previous corresponding
period in 2021.

Net cash used financing activities was RM0.59 million during the period against
RM14.73 million generated from the corresponding period in 2021.

Segmental analysis

a. Current quarter ended 30 June 2022 (“2Q 2022”) compared with the
previous corresponding quarter ended 30 June 2021 (“2Q 2021”):

Sustainable Healthcare
In 2Q 2022, Sustainable Healthcare segment revenue was RM7.10 million, an
increase of 10.97% or RM0.7 million compared to 2Q 2021.

The segment recorded an operating profit before tax of RM0.85 million in the
current quarter as compared to segment operating profit before tax of RM1.72
million in 2Q 2021. The decrease was mainly due to higher cost of sales, marketing
& promotion expenses as well as employee benefit expenses due to increased
staff to support business growth, office facilities and related expenses.

Sustainable Energy

The Sustainable Energy segment recorded a revenue of RM0.12 million in 2Q

2022 as compared to RM2.74 million in 2Q 2021. The lower revenue recorded was
mainly due to no new sites completed compared to 2Q 2021. Revenue from this
segment is a continuation of existing maintenance and servicing contracts with a
partner for Green Technology solutions in providing energy-saving solutions for a
financial institution and a telecommunications company. A one-time consultation
income of about RM71,000 was also reported in the current quarter.

The segment recorded an operating profit before tax of RM0.71 million in 2Q 2022
as compared to segment operating profit before tax of RM1.76 million in 2Q 2021.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

FinTech
In 2Q 2022, FinTech segment revenue was RM1.2 million, an increase of 8% as
compared to 2Q 2021. The increase was mainly contributed by the high traffic from
its Tawarruq platform as compared to 2Q 2021.

The segment recorded an operating profit before tax of RM0.37 million in the
current quarter, as compared to a RM0.32 operating profit before tax in 2Q 2021.

TelcoTech
TelcoTech platform recorded a revenue of RM0.65 million in 2Q 2022, an increase
of 13.96% from the same period last year.

However, the segment recorded an operating loss before tax of RM0.19 million in
2Q 2021 as compared to RM0.14 million operating profit before tax in 2Q 2021
due to common operating expenses/indirect cost allocated on a reasonable basis
to this segment for whose benefit the expense was incurred.

Others
This segment comprises operations relating to investment holding company.

The segment recorded a segment operating loss before tax of RM0.43 million in
2Q 2022 as compared to a segment operating loss of RM0.49 million in 2Q 2021.
This was due to common operating expenses/indirect cost allocated on a
reasonable basis to this segment for whose benefit the expense was incurred.

B2. Comparison with immediate preceding quarter’s results

Quarter ended Changes

30 Jun 2022 31 Mar 2022 %
RM’000 RM’000
Revenue 9,084 9,040 1
Operating Profit Before Interest and
1,413 939 50
Tax
Profit Before Tax 1,319 829 59
Profit After Tax for the Period 656 510 29
Profit After Tax and Non-controlling
530 283 87
Interest For the Period

Revenue for the quarter ended 30 June 2022 increased by 1% as compared to

immediate preceding quarter ended 31 March 2022. The following table shows net
revenue by segment for quarter ended 30 June 2022 compared to the preceding
quarter ended 31 March 2022.

Changes
30 Jun 2022 31 Mar 2022 +/(-)
RM’000 RM’000 %
Segment revenue
Sustainable Healthcare 7,104 7,323 (3)
Sustainable Energy 124 56 >100
FinTech 1,203 1,147 5
TelcoTech 653 514 27
Total revenue 9,084 9,040 1

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

Revenue from Sustainable Energy segment was higher in the current quarter due
to a one-off consultancy income of approximately RM71,000.

Overall, the profit after tax and non-controlling interest increased to RM0.53 million
in the current quarter compared to profit after tax and non-controlling interest of
RM0.28 million in the immediate preceding quarter.

B3. Prospects for 2022

Despite the challenges brought on by the pandemic in 2021, the Group had shown
positive results in the previous financial year. However, the global outlook of 2022
has deteriorated, largely due to Russia-Ukraine geopolitical tensions since
February 2022. The ongoing military conflict would severely set back the global
recovery from the impacts of the COVID-19 pandemic, slowing growth, increasing
inflation and affecting global trade activity.

Sustainable Healthcare’s revenue contribution from Eastern Europe represented

approximately 10% of the total Group revenue in Q2 2022. At the same time, the
Group has made aggressive expansion of international sales to Cambodia, Spain,
South Korea, Finland, Thailand, Myanmar, Bahrain and Maldives since 2021. This
expansion is expected to mitigate any potential reduction of revenue contribution
from Eastern Europe in 2022. The Management has assessed the financial impact
on the Group and are of the opinion that there was no material financial impact
arising from the crisis. The Group is actively monitoring and managing the
operations of the Group to minimise any impact arising from these developments.

On the other hand, there has been an unprecedented acceleration in focus of the
global investment community on Environmental, Social, and Governance (“ESG”)
factors. Sustainable Energy is increasingly becoming a necessity for companies
operating in Malaysia. There are multiple key drivers for the ESG adoption in
Malaysia.

The largest fund manager EPF has reinforced its commitment to investing in
sustainable companies through EPF's Sustainable Investment Policy which targets
to have a fully ESG compliant portfolio by 2030. Furthermore, Bursa Malaysia
Securities Berhad requires listed companies to include a Sustainability Statement
in their annual reports.

Sedania is in the business of enabling companies to become energy sustainable,

and help to comply with the above mentioned requirements.

We remain cautiously optimistic of posting another set of good results barring any
unforeseen circumstances. We remain steadfast in our pursuit of excellence whilst
staying vigilant of any developments that may have an adverse impact on the
Group.

We shall continue to monitor, reassess the financial position, take appropriate and
timely action to minimise any negative impacts whilst being on the lookout for
growth opportunities.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

B4. Profit forecast

The Group has not issued any profit forecast in any public documents.

B5. Taxation

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Tax expense recognised in profit or loss:
Current tax provision 663 236 982 427
663 236 982 427
Deferred Tax:
Relating to origination of
- - - -
Temporary Difference
Tax expense for the financial period 663 236 982 427

B6. Status of corporate proposals and utilisation of proceeds

(i) The Group undertook a private placement of up to 20% of the total number
of issued shares of SIB based on a shareholders’ mandate procured
pursuant to Section 75 and Section 76 of the Companies Act, 2016
approved by its shareholders at the Company’s 6th Annual General Meeting
convened on 29 June 2020 (“Proposed Private Placement”). On 23 October
2020, approximately 25% of the proposed private placement was completed
via issuance of 14,500,000 new shares at RM0.132 each – raising a gross
proceed of RM1.91 million. On 28 May 2021, approximately 75% of the
balance proposed private placement was completed via issuance of
43,533,400 new shares at RM0.286 each – raising a gross proceed of
RM12.45 million.

As at the date of this report, the proceeds from the Private Placement have
been utilised in the following manner:

Purpose Proposed Actual Intended Deviation Explanations (if

utilisation Utilisation Timeframe the deviation is
for 5% or more)
Utilisation
RM’000 RM’000 RM’000 %
Green Technology
Solutions Within 12
6,079 2,729 3,350 55 (1)
(“GreenTech”) months
segment
General working Within 12
7,786 8,036 - - (a)(b)
capital months
Private Placement Within 1
500 250 - - (b)
expenses month
Total gross proceeds 14,365 11,015 3,350 23

The utilisation of the proceeds as disclosed above should be read in

conjunction with the Announcements made by the Company dated 18
September 2020, 2 October 2020, 6 October 2020 and 31 May 2021.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

Explanation:
(1) The Group’s GreenTech energy saving devices installation works are still in progress.

Notes:
(a) The general working capital allocated from this round of Private Placement has been fully
utilised as at the date of this report.

(b) The actual expenses incurred for the Private Placement were lower than the estimated
expense. Hence the balance of unutilised Private Placement proceeds of RM0.25 million
has been re-allocated to working capital of the Group.

On 27 May 2022, the Company announced that the utilisation of proceeds raised
from private placement was extended for an additional twelve (12) months and is
expected to be fully utilised by 31 May 2023.

There were no other corporate proposals, which have been announced but not
completed as at 30 August 2022, being the date of this report.

B7. Borrowings

The Group’s borrowings as at the end of this financial period are as follows:

30 Jun 30 Jun
2022 2021
RM’000 RM’000
Current liabilities
Term loan (secured) 667 645
Revolving credit 500 632
Trade facilities 1,130 500
2,297 1,777

Non-current liabilities
Term loan (secured) 3,313 3,313
3,313 3,313

Total borrowings 5,610 5,090

Note:
The term loan is secured by a first legal charge against the Group’s office
premises.

B8. Material litigation

There were no pending material litigations against the Group which might
materially and adversely affect the Group's financial position.

B9. Dividends

No dividend has been paid, declared or proposed during the quarter under review.

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

B10. Earnings per share

(a) Basic earnings per share

The earnings per share are calculated by dividing the net profit/(loss)
attributable to ordinary owners of the Company by the weighted average
number of ordinary shares in issue during the period.

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 2022 2021
Profit/(Loss) attributable to
the owners of the Company
(RM’000) 530 2,466 813 6,675

Weighted average number of

ordinary shares in issue
(‘000) 347,189 311,008 347,189 311,008

Basic earnings per share

0.15 0.79 0.23 2.15
(sen)

(b) Diluted earnings per share

The diluted earnings per share are calculated by dividing the net profit/(loss)
attributable to ordinary owners of the Company by the weighted average
number of ordinary shares in issue during the period, adjusted for the
dilutive effects of potential ordinary shares from share options granted
pursuant to the Employees’ Share Option Scheme (“ESOS”).

3 months ended 6 months ended

30 Jun 30 Jun 30 Jun 30 Jun
2022 2021 2022 2021
Profit/(Loss) attributable to
the owners of the Company
(RM’000) 530 2,466 813 6,675
Weighted average number of
ordinary shares in issue
(‘000) 347,189 311,008 347,189 311,008
Effect of dilution from share
options (‘000) 364 404 364 404
Adjusted weighted average
number of ordinary shares
applicable to diluted
earnings per share (‘000) 347,553 311,412 347,553 311,412
Diluted earnings per share
0.15 0.79 0.23 2.14
(sen)

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SEDANIA INNOVATOR BERHAD [Registration No. 201301044527 (1074350-A)]

B11. Disclosure on selected expense/(income) items as required by the

Listing Requirements
Included in profit before taxation are the following expense/(income) items:

3 months 3 months 6 months 6 months

ended ended ended ended
30 Jun 2022 30 Jun 2021 30 Jun 2022 30 Jun 2021
RM’000 RM’000 RM’000 RM’000
Depreciation of property,
plant and equipment 74 46 148 198
Depreciation of right-of-use
assets 182 99 363 138
(Gain)/Loss on foreign
exchange
- realised (36) 17 (81) 65
- unrealised - 1 - 1
Income distribution
received from short term
funds (21) (11) (44) (14)
Interest income from
finance lease (454) (561) (928) (1,091)
Impairment losses on trade
& finance lease
receivables - 470 - 1,469
Interest expense 94 49 204 79
Reversal of impairment
losses on trade
receivables (2,052) (1,000) (2,202) (1,000)

By Order of the Board

CHUA SIEW CHUAN (MAICSA 0777689)

CHENG CHIA PING (MAICSA 1032514)
Company Secretaries

Kuala Lumpur
30 August 2022

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