Aimflex - Annual Report 2021

CONTENTS
02 Corporate Information
03 Corporate Structure
04 Financial Highlights
05 Directors’ Profiles
09 Key Senior Management’s Profiles
11 Letter To Shareholders
13 Management Discussion And Analysis
19 Sustainability Statement
30 Corporate Governance
Overview Statement
40 Statement of Directors’ Responsibility In
Relation To The Financial Statements
41 Additional Compliance Information
43 Statement On Risk Management And
Internal Control
50 Report On Audit & Risk Management
Committee
51 Financial Statements
119 List Of Properties
120 Analysis Of Shareholdings
122 Notice Of Annual General Meeting
125 Statement Accompanying The Notice Of
The Annual General Meeting
PROXY FORM
AIMFLEX BERHAD ANNUAL REPORT 2021
CORPORATE INFORMATION
BOARD OF Non-Independent Non-Executive Chairman COMPANY SECRETARIES

DIRECTORS Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera Ng Heng Hooi
(MAICSA 7048492) (PC No. 202008002923)
Managing Director Wong Mee Kiat
Tee Sook Sing (MAICSA 7058813) (PC No. 202008001958)
Wong Mee Ching
Executive Directors (LS 9014) (PC No. 202008001420)
Chuah Chong Ewe
Chuah Chong San CORPORATE WEBSITE
www.aimflex.com.my
Independent Non-Executive Directors
Professor Dr. Ruzairi Bin Hj Abdul Rahim CORPORATE OFFICE
Law Lee Yen 12-2, Jalan Persiaran Teknologi
Siti Zaleha Binti Sulaiman Taman Teknologi Johor
81400 Senai
Johor
AUDIT & RISK Chairperson Tel: 07-595 5545
MANAGEMENT Independent Non-Executive Director Fax: 07-595 5543
COMMITTEE Law Lee Yen
REGISTERED OFFICE
Members BO3-B-13-1 Level 13 Menara 3A
Independent Non-Executive Directors KL Eco City No. 3 Jalan Bangsar
Professor Dr. Ruzairi Bin Hj Abdul Rahim 59200 Kuala Lumpur
Siti Zaleha Binti Sulaiman Tel: 03-2280 6388
Fax: 03-2280 6399
REMUNERATION Chairperson AUDITORS
COMMITTEE Independent Non-Executive Director RSM Malaysia PLT 202206000002
Siti Zaleha Binti Sulaiman (LLP0030276-LCA) & AF 0768
Chartered Accountants
Members Suite 16-02 Level 16
Independent Non-Executive Directors Menara Landmark
Law Lee Yen No. 12 Jalan Ngee Heng
Professor Dr. Ruzairi Bin Hj Abdul Rahim 80000 Johor Bahru
Johor
Tel: 07-276 2828
NOMINATION Chairperson Fax: 07-276 2832
COMMITTEE Independent Non-Executive Director
Siti Zaleha Binti Sulaiman PRINCIPAL BANKERS
Members OCBC Bank (Malaysia) Berhad
47 & 49 Jalan Molek 1/29
Independent Non-Executive Directors Taman Molek
Law Lee Yen 81100 Johor Bahru
Professor Dr. Ruzairi Bin Hj Abdul Rahim Johor
Tel :03-8317 5200
EMPLOYEES’ Chairman Fax :07-353 5581
SHARE OPTION Independent Non-Executive Director SHARE REGISTRAR
SCHEME Professor Dr. Ruzairi Bin Hj Abdul Rahim Tricor Investor & Issuing House Services Sdn. Bhd.
COMMITTEE Unit 32-01, Level 32, Tower A
Members
Managing Director Vertical Business Suite Avenue 3
Bangsar South No. 8
Tee Sook Sing Jalan Kerinchi
Key Senior Managements 59200 Kuala Lumpur
Hing Fook Sern Tel: 03-2783 9299
Fax: 03-2783 9222
Ong Soo Lid
SPONSOR
INVESTMENT Chairman M&A Securities Sdn. Bhd.
COMMITTEE Non-Independent Non-Executive Chairman Level 11 No.45 & 47
The Boulevard
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera Mid Valley City
Members Lingkaran Syed Putra
Executive Director 59200 Kuala Lumpur
Chuah Chong Ewe Tel: 03-2284 2911
Fax : 03-2284 2718
Independent Non-Executive Director
Law Lee Yen STOCK EXCHANGE LISTING
Bursa Malaysia Securities Berhad – Ace Market
Stock Code: 0209
2
CORPORATE STRUCTURE
100.0%
AIMFLEX
100.0% Singapore 100.0%
Pte Ltd
AIMFLEX Bizit
100.0% Systems 100.0% Systems(M)
Sdn Bhd Sdn Bhd
AIMFLEX AIMFLEX
Technology 100.0% Metal 100.0%
AIMFLEX Berhad Sdn Bhd Sdn Bhd
Bizit
AIMFLEX Systems And
Solutions 100.0% Solutions
Sdn Bhd Pte Ltd
AIMFLEX
Engineering
Sdn Bhd
Corporation Date / Effective Principal Activities

Place of Equity
Incorporation Interest
%
AIMFLEX Berhad 22 March 2018 / Public issue Investment Holding
Malaysia
Subsidiaries / Associated Companies of AIMFLEX
AIMFLEX Technology 29 January 2007 / 100.0 Investment holding company
Sdn Bhd Malaysia
AIMFLEX Systems 2 December 2015 / 100.0 Manufacturing and modification of specialised
Sdn Bhd Malaysia automation machines, provision of maintenance
and technical support services and supply of
spare parts
AIMFLEX Solutions 21 May 2013 / 100.0 Design, development, manufacturing and
Sdn Bhd Malaysia integration of modules and components in
relation to Industry 4.0
AIMFLEX Singapore 1 March 2013 / 100.0 Sales of specialised automation machines
Pte Ltd Singapore
AIMFLEX Metal 1 July 1996 / 100.0 Design and fabrication of metal panels and
Sdn Bhd Malaysia frames
AIMFLEX Engineering 23 April 2008 / 100.0 Design and fabrication of precision parts
Sdn Bhd Malaysia
Bizit Systems (M) 23 April 2007 / 100.0 Distribution of statistical analysis software,
Sdn Bhd Malaysia wireless communication devices and robotic
arms
Bizit Systems and Solutions 30 May 2011 / 100.0 Retail sale of computer hardware (including
Pte Ltd Singapore handheld computers) and peripheral equipment,
and computer software (except games and
cybersecurity hardware and software) (software
sales, marketing and training) and development
of other software and programming activities.
3
FINANCIAL HIGHLIGHTS
FY2017¹ FY2018¹ FY2019 FY2020 FY2021

RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000
Revenue 60,381 67,591 77,731 66,966 75,746

Profit before Taxation 9,390 11,972 10,302 9,155 4,844
Profit After Taxation 8,550 11,470 8,536 7,618 4,729
Shareholders’ Equity 13,348 22,096 65,283 71,286 77,650
Earnings Before Interests, 10,323 13,111 12,187 10,674 6,601
Taxation, Depreciation and
Amortisation
Earning per Share (sen) 0.84 1.15 1.10 0.62 0.39
Net Assets per Share (sen) 0.01 0.02 0.05 0.06 0.06
Note:
(1) The Group was only formed on 2 May 2019. The financial information for FY2018 was presented based on the
historical combined financial statements of the subsidiaries as disclosed in the prospectus of the Company dated
21 June 2019.
REVENUE (RM '000) PROFIT BEFORE TAXATION (RM '000)
77,731 75,746
67,591 66,966
60,381 11,972
9,390 10,302 9,155
4,844
FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021
PROFIT AFTER TAXATION (RM '000) SHAREHOLDERS' EQUITY (RM '000)
77,650
11,470 71,286
8,550 8,536 65,283
7,618
4,729 22,096
13,348
EARNINGS PER SHARE (SEN) NET ASSETS PER SHARE (SEN)
0.06 0.06
1.15 0.05
1.10
0.84
0.62 0.02
0.39 0.01
4
DIRECTORS’ PROFILES
From left to right:

Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera, Ms. Tee Sook Sing, Mr. Chuah Chong Ewe, M r. Chuah Chong San,
Ms. Law Lee Yen, Ms. Siti Zaleha Binti Sulaiman, Professor Dr. Ruzairi Bin Hj Abdul Rahim
Non-Independent Non-Executive Chairman

Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera Malaysian ◆ 61 years of age ◆ Male
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera was appointed to the Board as the Non-Independent Non-Executive
Chairman on 19 August 2020. He was subsequently redesignated as the Executive Chairman on 16 February 2021
and on 25 January 2022 to Non-Independent Non-Executive Chairman. He is also the Chairman of our Investment
Committee.
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera obtained an intermediate certificate for Mechanical Fitter and
General Mechanic in 1980 from MARA Vocational Institute Malaysia and subsequently completed his Bachelor
of Science in Mechanical Engineering in 1994 from the University of the East, Philippines. He later completed
his Master’s in Mechanical Engineering in 2007 from Universitas Pancasila, Jakarta, Indonesia. In 2018, he was
conferred the highest professional qualification of Chartered Fellow, which carries the post of nominal FCILT from
The Chartered Institute of Logistics and Transport Malaysia (CILTM). In 2020, he received an Honorary Doctorate
in Technology from Geomatika University College.
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera has over 40 years of experience in the field of mechanical engineering.
He began his career with Syarikat Jengka Pahang Sdn Bhd as an apprentice in 1978, where he was trained in
repair and overhaul of rotating equipment such as electric motor, multi centrifugal pumps, rotary pumps boiler
and driers. Subsequently in 1983, he joined Malaysia LNG Sdn Bhd and was a part of the pioneer group which set
up the mechanical workshop for the first product of LNG in the Engineering department.
In 1994, he co-founded Serba Dinamik Sdn Bhd and appointed as the Managing Director involved in field
supervision, coordination and managing various projects, construction, fabrication tasks, planning and
tendering, attending negotiation and handling managerial portfolios.
He is a promoter of Serba Dinamik Holdings Berhad and holds the Deputy Managing Director position and
Non-Independent and Executive Director since 2016. In 2019, he was redesignated as Non-Independent and
Non-Executive Director in Serba Dinamik Holdings Berhad. Currently, he also holds the position as Executive
Chairman in Minetech Resources Berhad.
5
Managing Director
Tee Sook Sing Malaysian ◆ 42 years of age ◆ Female
Tee Sook Sing was appointed to the Board as Executive Director on 1 November 2018. She is responsible for the
implementation of our Board’s decisions, strategies and corporate direction by keeping our Board fully informed
of all important aspects of our Group’s operations. She is also in charge of overseeing the day-to-day operations
and implementation of the overall strategies in line with the corporate direction of our Group. She is currently a
member of our Employees’ Share Option Scheme Committee.
She graduated with a Bachelor of Engineering (Electrical-Electronics) and a Master of Business Administration
(Strategic Management) in 2003 and 2008 respectively from Universiti Teknologi Malaysia (UTM). Since 2014, she
has been certified by the Project Management Institute as a Project Management Professional and has more than
18 years of working experience in the E&E industry, specialising in the design and manufacturing of specialised
automation machines.
She started her career in Flextronics Technology (Malaysia) Sdn Bhd in 2003 as a Test Development Engineer,
where she was responsible for undertaking the development of functional test machines. In 2004, she was
promoted as a Senior Test Development Engineer, where she was responsible for managing a team of engineers
and monitoring the progress of development projects for functional test machines. She left Flextronics
Technology (Malaysia) Sdn Bhd in January 2006 and joined Dyson Manufacturing Sdn Bhd as a Senior Electronics
Development Engineer in its R&D department. In 2006, she left Dyson Manufacturing Sdn Bhd and re-joined
Flextronics Technology (Malaysia) Sdn Bhd as its Assistant Test Development Manager.
She is one of our pioneer members and has been instrumental to the business growth and development of the
Group. She joined AIMFLEX in 2008 as a Project Manager, where her major responsibilities included overseeing
the manufacturing automation business segment. In 2010, she was re-assigned as the Sales Manager whereby
she managed key customer accounts and implementing overall business development plans and strategies. She
assumed her current position as our Managing Director in 2018.
Executive Director
Chuah Chong Ewe Malaysian ◆ 55 years of age ◆ Male
Chuah Chong Ewe was appointed to the Board as Executive Director on 25 January 2022. His main responsibility
is to lead and assist in Corporate Governance matters to ensure adequate and efficient system for the benefit of
the Group. He is also a member of our Investment Committee.
He graduated from University of Malaya with a Bachelor in Law, LLB (Hons.). He was admitted to the Malaysian
Bar Council on 26 February 1993 and has approximately 20 years of experience in legal practice.
He started his career in 1993 as an advocate and solicitor.
Subsequently in 2005, he joined Seal Incorporated Berhad as Advisor before being promoted as its Group Chief
Executive Officer. He spearheaded the strategic move and transformational restructuring in Seal Incorporated
Berhad from a heavily indebted position into profitable net cash position with diversified earnings base before
he left in October 2014.
He joined Pentamaster Corporation Berhad in 2015 as its Chief Executive Officer and Executive Director. However,
he resigned in 2021. He remains the shareholder of Pentamaster Corporation Berhad.
In 2018, he joined Luster Industries Berhad and was appointed as Executive Director, a position he holds until
today. He is also a substantial shareholder of Luster Industries Berhad.
6
Executive Director
Chuah Chong San Malaysian ◆ 58 years of age ◆ Male
Chuah Chong San was appointed to the Board as Executive Director on 25 January 2022. He is responsible to
lead and participate in technical matters related to our Engineering Department.
He graduated from University of Malaya with a Degree in Electrical Engineering in 1989. In 1998, he obtained his
Master of Business Administration from Universiti Sains Malaysia.
Upon obtaining his Degree in Electrical Engineering, he started his career in Motorola Solutions Malaysia Sdn
Bhd (“Motorola”) as Test System Engineer. In 1998, he had transfered to Internal Control function, focusing on
Information Technology (“IT”), Information Security Protection & Compliance. He was promoted to engineering
management roles in 2000. He led a team to digitise and transform key supply chain business processes. He was
promoted as Motorola Penang IT Lead in 2005 to manage simplification and consolidation of Enterprise Resource
Planning (“ERP”) system across multiple businesses within Motorola.
During his IT career, he had the opportunity to play IT lead roles in multiple Merger, Acquisition and Divesture
projects. He had also successfully migrated Motorola’s regional IT Business System to Global Enterprise System
in 2013. In 2016, he was promoted to be the Asia Pacific IT lead, focusing on modernising the IT Infrastructure,
partnering with Third -Party Logistics (“3PL”) and Electronics Manufacturing Services (“EMS ”) to deliver IT
solutions and supporting IT services in 12 Asia Pacific countries. He left Motorola in 2020.
He later joined Luster Industries Berhad as an Alternate Director in 2020, and later as Executive Director in 2021.

Professor Dr. Ruzairi Bin Hj Abdul Rahim Malaysian ◆ 55 years of age ◆ Male
Professor Dr. Ruzairi Bin Hj Abdul Rahim was appointed to the Board as Independent Non-Executive Director on
1 November 2018. He is the Chairman of the Employees’ Share Option Scheme Committee, member for our Audit
and Risk Management Committee, Remuneration Committee and Nomination Committee respectively.
He graduated with a Degree in Electronic System & Control Engineering in 1992 from Sheffield City Polytechnic
and Ph.D in 1996 from Sheffield Hallam University, UK. He was awarded as Professional Technologist by Malaysia
Board of Technologists in 2018 and has over 25 years of experience in the field of R&D management.
He started his career in Universiti Teknologi Malaysia (UTM) in 1992 as a Tutor at the Department of Control
& Instrumentation Engineering in the Faculty of Electrical Engineering. He was subsequently appointed as the
Head of Instrumentation Engineering Laboratory in 1997 to manage and operate lectures, tutorials, practical as
well as reviewing examination papers. In June 1998, he was appointed as the Head of Department (Control &
Instrumentation Engineering), where he was responsible for overseeing the planning, development programme,
distribution of academic workload and staff coordination. He was then made Associate Professor of UTM in 1999.
In 2006, he was promoted as the Professor of UTM and appointed as the Deputy Dean (Corporate) at the Research
Management Centre (“RMC”) of UTM. He was then promoted to the position of Director of RMC in 2009, a position
which he held until November 2016. RMC is the research arm of UTM which is responsible for managing and
facilitating various R&D activities, intellectual property creation and management, technological development,
promotion and exploitation of R&D findings.
From December 2016 to November 2019, Professor Dr. Ruzairi held the position of Deputy Vice Chancellor
(Research & Innovation) at Universiti Tun Hussein Onn Malaysia, where he was mainly responsible for the
management of research, innovation and publications.
In 2020, he was appointed as the Professor for the School of Electrical Engineering, Faculty of Engineering at
UTM. Subsequently, he was appointed as Dean of Faculty Engineering Universiti Teknologi Malaysia from July
2021 to June 2024.
7

Law Lee Yen Malaysian ◆ 37 years of age ◆ Female
Law Lee Yen was appointed to the Board as Independent Non-Executive Director on 1 October 2018. She is also
the Chairperson of our Audit and Risk Management Committee and a member of our Nomination Committee and
Remuneration Committee.
She graduated from the University of Melbourne, Australia in 2006 with a Bachelor of Commerce. She has been
a member of the Malaysian Institute of Accountants since August 2010 and a member of CPA Australia since April
2010. She is also a member of Chartered Tax Institute of Malaysia since October 2012. She has more than 13 years
of working experiences in the field of audit, corporate advisory and taxation services.
She started her career in 2007 with KPMG LLP Singapore as an Audit Associate. In 2010, she left KPMG LLP
Singapore and joined Terry Law & Co, Malaysia (a non-audit firm in which her brother was Partner) as a Manager,
responsible for tax advisory services. She was promoted as Partner of the firm in 2011, where she was responsible
for providing tax advisory services. In January 2017, she set up her own firm, LY Law & Associates, as a partner
after obtaining her audit practice license from the relevant ministry in Malaysia and with that, she was responsible
for providing audit and tax advisory services under her new firm. Her tenure in Terry Law & Co. from January to
May 2017 was a transitional arrangement to facilitate the transfer of tax clientele from Terry Law & Co. to LY Law
& Associates. In May 2017, she resigned as a partner of Terry Law & Co.
Currently, she also serves as a Director for GPP Resources Berhad and BCB Berhad.

Siti Zaleha Binti Sulaiman Malaysian ◆ 58 years of age ◆ Female
Siti Zaleha Binti Sulaiman was appointed to the Board as Independent Non-Executive Director on 2 October
2020. She is also the Chairperson of our Remuneration Committee and Nomination Committee as well as a
member of our Audit and Risk Management Committee.
She completed both her Bachelor of Science in Computer Science and Master of Science in Computer Science
from State University of New York, USA and University of Miami, USA respectively. She has more than 20 years of
experience in the corporate industry.
She started her career in 1989 as the Administration Officer of Bank Negara Malaysia where she provided
Information Systems and Information Technology (IS/IT) audits to all financial institutions under the purview
of Bank Negara Malaysia. In 1995, she joined Bursa Malaysia Berhad as the Head of the IS/IT Audit Department.
In 2011, she was promoted to the Head of Corporate Risk Management and Acting Head of Group Internal Audit
of Bursa Malaysia Berhad, to spearhead both the Corporate Risk Management and Group Internal Audit divisions.
Subsequently, she became the Head of Compliance and Risk in 2016 to be responsible for the Compliance
Department, in which her scope were the identification of legal and regulatory requirements for Bursa Malaysia
Berhad, providing guidance, establishing operating procedures as well as instilling awareness on risk and
compliance related matters for Bursa Malaysia Berhad.
Notes:
1. None of the Directors has any family relationship with any Director and/or major shareholder of the Company.
2. None of the Directors has been convicted of any offence (other than traffic offences ) within the past 5 years and
has not been imposed any public sanction or penalty by the relevant regulatory bodies during the financial year.
3. None of the Directors has any conflict of interest with the Company.
4. Save as disclosed, none of the Directors holds any directorship in public companies and listed corporation.
5. Number of board meetings attended by each Director during the financial year are disclosed in the Corporate
Governance Overview Statement of this Annual Report.
8
KEY SENIOR MANAGEMENT’S PROFILES
From left to right:

Mr. Ong Soo Lid, Mr. Soo Choon Siong, Mr. Hing Fook Sern
Head of Finance
Soo Choon Siong Malaysian ◆ 48 years of age ◆ Male
Soo Choon Siong is the Head of Finance of our Group. He is responsible for our Group’s overall financial and
accounting operations.
He obtained a Bachelor of Commerce in 1996 from the University of Otago, New Zealand. He is a Chartered
Accountant of Malaysian Institute of Accountants and Chartered Accountants Australia & New Zealand. He is also
an Associate Member of Chartered Tax Institute of Malaysia.
He began his career as an audit assistant with KPMG Johor Bahru in 1997. He was involved in the audits of clients
in various industries. In 2001, he left the audit profession and began his journey in the commercial sectors. His
first employment was with a MNC involving in the production of oleochemicals as its Accountant. In 2002, he left
to join a Bursa Malaysia Main Board listed ceramic tile manufacturer as Finance Manager and was subsequently
offered to join its Board as Finance Director.
In 2014, he was the Group Financial Controller of an automotive leather manufacturer before joining a MNC
biopharmaceutical manufacturer as Senior Director, Finance in 2016. Between 2017 and February 2021, he was
attached with an aerosol paint manufacturer listed on the Catalist Board of SGX as CFO and a property developer
as Finance Director.
In February 2021, he joined AIMFLEX and assumed the current role.
9
KEY SENIOR MANAGEMENT’S PROFILES
Key Senior Management

Ong Soo Lid Malaysian ◆ 40 years of age ◆ Male
Ong Soo Lid was appointed as the Managing Director of our subsidiary, AIMFLEX Singapore Pte. Ltd. in January
2021.
He graduated with a Bachelor of Engineering (Electrical – Electronics) from Universiti Teknologi Malaysia (UTM)
in 2003. He has more than 17 years of working experience in the Engineering and Automation industry.
He began his career in 2003 with Tekmark Sdn Bhd as a Principal Consultant and was responsible for providing a
wide range of sales and technical services to customers and developed test and automation solutions in multiple
industries. In 2007, he joined Celestica Electronics (M) Sdn Bhd as the Test Development Manager. During his
tenure with Celestica, he had set up a test development team to provide in-house test solutions to their new and
existing customers. In 2008, he joined Flextronics Technology (M) Sdn Bhd and was promoted to Senior Manager
of Test Development Engineering and Industrial Automation. He was assigned to lead the company’s SMART
factory and their Industry 4.0 initiatives.
In 2019, he decided to pursue his career in Singapore, where he joined Venture Corporation Limited as a Test
Development Manager. He had the responsibility of managing the test development engineering team in Johor
Bahru and Singapore. He then left Venture Corporation Limited to join AIMFLEX Singapore Pte. Ltd.
Key Senior Management

Hing Fook Sern Malaysian ◆ 52 years of age ◆ Male
Hing Fook Sern is the Managing Director of our subsidiaries, Bizit Systems (M) Sdn Bhd and Bizit Systems and
Solutions Pte Ltd. He is also a member of the Employees’ Share Option Scheme Committee.
In 1993, he graduated with a Bachelor of Science (with distinction) in Industrial Engineering from University of
Nebraska – Lincoln, United States of America. With more than 27 years of experience throughout his career, he has
a strong track record in business, engineering functions, sales and marketing planning. His 18 year experience in
engineering and process excellence is a complement to the sales of Minitab software and Universal Robots as he
is able to align value propositions of the company to meet customers’ expectations.
He started his career with Aiwa Electronics (M) Sdn Bhd in 1994 as a Process Engineer and was eventually
promoted to Senior Process Engineer in 2000. He was assigned to develop standardised assembly methods and
more productive tools for better production. In 2002, he joined Dyson Manufacturing Sdn Bhd as a Manufacturing
Engineer before he was promoted to Senior Manufacturing Engineer in 2005. He set up a new production line
and implemented manufacturing solutions. In 2011, he went on to pursue his career in Singapore and joined
Sealing Technologies Pte Ltd, and FCI Connectors Singapore Pte Ltd. During his tenure with both companies, he
continued his passion in optimising operational efficiency and machine performance.
In 2012, he joined AIMFLEX as a Sales Manager, where he was later promoted to Sales Director in 2014. In 2018, he
was appointed as the Managing Director to lead the distribution arm of AIMFLEX.
Notes:
1. None of the Key Senior Management has any family relationship with any Director and/or major shareholder of
the Company.
2. None of the Key Senior Management has been convicted of any offence (other than traffic offences) within the
past 5 years and has not been imposed any public sanction or penalty by the relevant regulatory bodies during
the financial year.
3. None of the Key Senior Management has any conflict of interest with the Company.
4. None of the Key Senior Management holds any directorship in public companies and listed corporation.
10
LETTER TO SHAREHOLDERS
Dear Shareholders,
On behalf of the Board of Directors of
AIMFLEX Berhad, we are pleased to
present our Annual Report and Consolidated
Financial Reports of the Group for the
financial year ended 31 December 2021
(FY2021).
FINANCIAL PERFORMANCE
The world continues to be struck by the COVID-19 public relations fees), additional staff cost by RM0.92
pandemic in FY2021 with new variants emerging over million for the business development team set up in Q3
time. To curb the spread, the economies of the world 2020, higher carriage outwards by RM0.64 million and
including Malaysia embarked on various phases and higher COVID-19 employee welfare expenses by RM0.33
forms of movement controls. In the fourth quarter of million.
FY2021, with the progress in the vaccination programme,
movement controls were gradually eased. As a result, AIMFLEX recorded a lower Consolidated
Profit Before Tax of RM4.84 million (FY2020: RM9.16
On the back of this pandemic, we recorded higher million). Similarly, Consolidated Profit After Tax was
revenue of RM75.75 million (FY2020: RM66.97 million), lower at RM4.73 million (FY2020: RM7.62 million).
an improvement of 13.1%. The improvement in revenue
was attributable to both the manufacturing and BUSINESS AND OPERATIONS
distribution segments. The revenue from manufacturing
segment improved by 11.9% while the revenue from Despite the challenging business environment, we
distribution segment improved by 20.5%. remain focused on developing and expanding our
business. We have: -
Gross profit dropped by 3.8% from RM20.23 million in
FY2020 to RM19.45 million in FY2021 mainly caused 1. continued to invest in our resources by
by higher material consumed in the manufacturing developing our own proprietary deep learning
segment. We recorded a lower Other Operating Income system to be applied in our vision inspection
from RM1.27 million to RM0.95 million mainly due to machines;
lower government wage subsidies and grant (FY2021: 2. started to use our internally developed standard
RM0.31 million; FY2020: RM0.51 million) and lower modules in our products to help improve our
dividend income (FY2021: RM0.30 million; FY2020: costing and enhance productivity;
RM0.54 million) received from financial institutions. 3. continue to focus on domestic market
development to explore more business
Higher distribution, administrative and other expenses opportunities from local manufacturers.
of RM15.55 million were recorded in FY2021 (FY2020: 4. invested in property, plant and equipment
RM12.27 million) mainly due to higher depreciation amounting to RM2.77 million to improve our
by RM0.26 million, higher impairment loss on trade metal and precision part fabrication capacity.
receivables by RM0.44 million, higher professional fee by 5. In terms of personnel development, we have
RM0.38 million (mainly arising from services in relation organised a total of 105 training sessions for our
to dividend payment, EGM for change of company employees, of which 25 were in-house training
name, corporate advisory fee and investor relations/ and 80 were external training sessions.
11
LETTER TO SHAREHOLDERS
BUSINESS AND OPERATIONS Cont’d
We wish to highlight the following major corporate events: -
1. In the Extraordinary General Meeting held on 16 February 2021, we obtained shareholders’ approval to change
our company’s name to AIMFLEX Berhad and the new name was subsequently approved by the Companies
Commission of Malaysia on 19 February 2021. The new name symbolises a new corporate identity better
reflecting the Group’s core business and its future undertakings. The acronym “AIMFLEX” stands for “Autonomous,
Intelligent, Machines, Flexible”, which reflects our renewed pledge to adopt these values to drive the Group and
business forward.
2. Our new stock short name on Bursa Malaysia’s ACE Market was officially changed to “AIMFLEX” on 25 February
2021.
3. On 25 August 2021, the Group announced that its wholly-owned subsidiary, AIMFLEX Systems Sdn Bhd, had
secured a new order worth RM1.0 million for automated test machine from a new customer who is involved in the
electronic components for the automotive industry.
4. On 11 January 2022, AIMFLEX Berhad entered into separate conditional share subscription agreements
(“Subscription Agreements”) whereby the investors will subscribe for an aggregate amount of 244,824,000 new
ordinary shares in AIMFLEX Berhad (“Subscription Share(s)”) at an issue price of RM0.1267 (“Subscription Price”)
per Subscription Share to be fully satisfied in cash in accordance with the terms and conditions of the respective
Subscription Agreements (“Proposed Subscription”). The application pursuant to the Proposed Subscription has
been submitted to Bursa Malaysia Securities Berhad on 15 February 2022 and has been approved on 28 March
2022. An Extraordinary General Meeting will be held on 20 May 2022 to obtain shareholders’ approval.
MARKET OUTLOOK AND FUTURE PROSPECT
The Group takes cognisance that the effects of the COVID-19 pandemic are still prevalent in the Malaysian economy and
the manufacturing industry. There is no assurance that a resurgence of COVID-19 cases and/ or the emergence of new
COVID-19 variants will not adversely impact the manufacturing industry in Malaysia and in turn, our Group’s operations
and financial position. Notwithstanding the above, our Group is in anticipation of a gradual recovery of the Malaysian
economy and manufacturing industry. Furthermore, as Malaysia enters the endemic phase and reopens its borders from
1 April 2022, it seeks to revive the country’s economy which was hit hard by the COVID-19 pandemic.
We will continue to optimise our resources on developing products and technologies that support market demand and
are aligned with the Industrial Revolution 4.0, such as robotics, big data and machine vision. AIMFLEX will also remain
focused on prioritising the efforts for operational efficiency and cost rationalisation and will strive to provide innovative
automation solutions for our customers.
Barring any unforeseen circumstances and premised on the above as well as the relevant economy and industry outlook,
the Group holds a cautiously optimistic view on the prospect of 2022 and have been visibly tapping into domestic
opportunities while cautiously eyeing business opportunities overseas.
ACKNOWLEDGEMENTS
On behalf of the Board of Directors, we would like to convey our utmost appreciation to all our customers, shareholders,
business partners, service providers, stakeholders, advisors, bankers, regulatory authorities and government agencies
for their continuous support.
We would also like to thank all employees and the Management team for their relentless dedication and loyalty to the
Group.
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera

Non-Independent Non-Executive Chairman
Tee Sook Sing

Managing Director
12
MANAGEMENT DISCUSSION AND ANALYSIS
Overview of business
AIMFLEX Berhad (“AIMFLEX” or “the Company”) is primarily involved in the manufacturing automation business,
specialising in the design, manufacturing and modification of automation machines. AIMFLEX acts as a onestop
automation solutions provider which also designs and fabricates metal frames, panels and precision parts of machines
as well as the distribution of manufacturing automation hardware and software as value added services.
In 2019, with the successfull listing in the Bursa Malaysia ACE Market, AIMFLEX has managed to set a strong foothold in
the home appliances, electrical and electronics (“E&E”) industries by working with local and international partners to
fulfil the market needs for the latest manufacturing automation and smart solutions.
As industries go into hyperdrive to tap into the Industrial Revolution 4.0 wave and digitisation post-pandemic, AIMFLEX
aims to explore a broader range of its existing and future clientele ranging from semiconductor, oil and gas, automative,
medical and etc. by tapping into the expertise, experiences, networks and resources of the Board and Management
team.
This can be achieved through the Board and Management Team’s commitment and the culture to achieve the highest
quality, safety and environment standards within its operation, production, and engineering processes. To this end,
AIMFLEX is certified ISO 9001:2015 Quality Management System and ISO 14001:2015 Environmental Management
System.
Review of Financial Performance
2021 continued to be another tumultuous and challenging year. The economies of the world including Malaysia
experienced various phases of movement controls throughout the year. This has disrupted our daily lives, in particular,
travel restrictions and strict Standard Operating Procedures (“SOPs”). Towards the end of 2021, economies around the
world gradually “re-opened” notwithstanding the emergence of new COVID-19 variants as the world is adapting to the
“new normal”.
The Company and its subsidiaries’ (“the Group”) financial performance for financial year ended 31 December 2021
(“FY2021”) and financial year ended 31 December 2020 (“FY2020”) is illustrated as follows:
FY2021 FY2020 Variance

RM’000 RM’000 RM’000 %
Revenue 75,746 66,966 8,780 13.1
Gross profit (“GP”) 19,450 20,227 (777) (3.8)
Other income 949 1,270 (321) (25.3)
Distribution, administrative and other expenses (15,554) (12,268) (3,286) (26.8)
Finance costs (1) (74) 73 98.6
Profit before taxation (“PBT”) 4,844 9,155 (4,311) (47.1)
Profit after taxation (“PAT”) 4,729 7,618 (2,889) (37.9)
GP margin (%) 25.7 30.2 - (14.9)
PBT margin (%) 6.4 13.7 - (53.3)
PAT margin (%) 6.2 11.4 - (45.6)
13
Revenue
Philippines
Singapore 11.3% India
14.4% 0.6% Indonesia
0.2%
Others
1.4%
Malaysia
72.1%
Revenue by countries
for FY 2021
Overall Geographical Markets

RM’000 RM’000 RM’000 %
Manufacturing 64,164 57,353 6,811 11.9
Malaysia 47,808 42,351
Philippines 7,330 9,386
Singapore 8,408 5,464
Others 618 152
Distribution 11,582 9,613 1,969 20.5
Malaysia 6,790 6,347
Singapore 2,462 2,909
Philippines 1,241 -
India 465 109
Indonesia 161 178
Others 463 70
Grand Total 75,746 66,966
Our Group has recorded a higher revenue of RM75.75 million in FY2021 compared to RM66.97 million in FY2020. Revenue
from manufacturing segment improved by 11.9% from RM57.35 million to RM64.16 million in FY2021. By geographical
location, the increase in revenue from our manufacturing segment was mainly attributable to Malaysia and Singapore,
which collectively improved by 17.6% in FY2021, mitigated by the decrease in revenue from the Philippines.
Revenue from our distribution segment improved by 20.5% from RM9.61 million in FY2020 to RM11.58 million in FY2021.
The increase in revenue from our distribution segment was mainly attributable to the sale of statistical analysis software
which contributed 75% of our revenue in FY2021.
Overall, Malaysia remained our Group’s largest revenue contributor in FY2021, representing 72.1% (FY2020: 72.7%) of
our total revenue, followed by Singapore at 14.4% (FY2020: 12.5%) and Philippines at 11.3% (FY2020: 14.0%).
14
Gross Profit
Manufacturing Distribution Total

FY2021 FY2020 Variance FY2021 FY2020 Variance FY2021 FY2020 Variance
RM’000 RM’000 % RM’000 RM’000 % RM’000 RM’000 %
Revenue 64,164 57,353 11.9 11,582 9,613 20.5 75,746 66,966 13.1
Cost of sales 48,399 40,803 18.6 7,897 5,936 33.0 56,296 46,739 20.4
GP 15,765 16,550 (4.7) 3,685 3,677 0.2 19,450 20,227 (3.8)
GP margin (%) 24.6 28.9 (14.9) 31.8 38.3 (17.0) 25.7 30.2 (14.9)
Gross profit decreased by 3.8% from RM20.23 million in FY2020 to RM19.45 million in FY2021 mainly resulted from lower
gross profit recorded in the manufacturing segment which was mainly caused by higher material consumed.
Other Income
Lower other income of RM0.95 million was recorded in FY2021 (FY2020: RM1.27 million) mainly attributable to lower
government wage subsidies and grant amounting to RM0.20 million (FY2021: RM0.31 million; FY2020: RM0.51 million)
and lower dividend income by RM0.24 million (FY2021: RM0.30 million; FY2020: RM0.54 million) from financial
institutions.
Operating Expenses
Higher distribution, administrative and other expenses of RM15.55 million was recorded in FY2021 (FY2020: RM12.27
million) mainly due to higher depreciation by RM0.26 million, higher impairment loss on trade receivables by RM0.44
million, higher professional fee by RM0.38 million (mainly arising from services in relation to dividend payment, EGM for
change of company name, corporate advisory fee and investor relations/public relations fees), additional staff cost by
RM0.92 million for the business development team set up in Q3 2020, higher carriage outwards by RM0.64 million and
higher COVID-19 related employee welfare expenses by RM0.33 million.
Profit and Tax
Our PBT decreased by RM4.32 million from RM9.16 million to RM4.84 million was in line with the lower gross profit and
higher distribution, administrative and other expenses as explained above.

RM’000 RM’000 RM’000 %
Income tax:
- current year 1,689 1,330 359 27.0
- prior year 154 3 151 5033.3
Foreign withholding tax 18 156 (138) (88.5)
1,861 1,489 372 25.0
Deferred tax (1,745) 48 (1,793) (3735.4)
116 1,537 (1,421) (92.5)
The Group’s overall tax expense has decreased from RM1.54 million in FY2020 to RM0.12 million in FY2021 mainly due
to pioneer status incentive obtained by one of our subsidiaries, AIMFLEX Systems Sdn Bhd, which was granted a tax
exemption of up to 70.0% of the statutory income for a period of 5 years (i.e. from 1 January 2017 to 31 December 2021)
and the recognition of deferred tax asset arising from contract liabilities. The contract liabilities primarily relate to the
advance consideration received from customers. The revenue is recognised at point in time at which the performance
obligations are satisfied whereas the income tax is payable in the period in which the advance consideration was
received.
15
Financial Position Review
2021 2020 Variance

RM’000 RM’000 RM’000 %
Assets
Non-current assets 27,024 23,965 3,059 12.8
Current assets 72,663 59,896 12,767 21.3
Total assets 99,687 83,861
Liabilities
Non-current liabilities 1,042 721 321 44.5
Current liabilities 20,995 11,854 9,141 77.1
Total liabilities 22,037 12,575
Equity 77,650 71,286 6,364 8.9
Non-current assets
Our non-current assets mainly comprised property, plant and equipment (“PPE”) of RM23.92 million (FY2020: RM22.83
million) and deferred tax assets of RM1.97 million (FY2020: Nil). The increase in PPE was mainly due to purchase of PPE
amounting to RM2.77 million offset against depreciation of PPE of RM1.55 million. Deferred tax assets were recognised
mainly due to the contract liabilities. The contract liabilities primarily relate to the advance consideration received from
customers, which revenue is recognised at point in time at which the performance obligations are satisfied whereas the
income tax is payable in the period in which the advance consideration was received.
Current assets
Current assets have increased from RM59.90 million in FY2020 to RM72.66 million in FY2021. The increase was mainly
contributed by higher trade receivables balances from RM25.52 million in FY2020 to RM35.85 million in FY2021 arising
from billing on the sales from manufacturing segment and higher inventories from RM6.04 million to RM12.92 million
in FY2021. The increase in inventories was mainly due to increase in work-in-progress from RM4.36 million to RM10.68
million arising from manufacturing segment.
Current and Non-Current Liabilities
Non-current liabilities increased mainly due to increase in deferred tax liabilities from RM0.70 million in FY2020 to
RM0.93 million in FY2021 arising from property, plant and equipment. Current liabilities increased mainly due to increase
in the other payables from RM6.05 million in FY2020 to RM14.59 million in FY2021 as a result of higher contract liabilities
(FY2021: RM8.42 million; FY2020: RM1.99 million).
Liquidity and capital reserves
The net cash outflow of the Group for FY2021 was RM4.82 million. This was attributable by:
a) Net cash outflow of RM3.08 million from operating activities mainly caused by higher inventories (RM6.88 million)
and trade and other receivables (RM10.99 million);
b) Net cash outflow of RM2.20 million from investing activities mainly caused by the purchase of property, plant and
equipment amounting to RM2.77 million; and
c) Net cash inflow of RM0.45 million from financing activities arising mainly from issuance of shares pursuant to the
exercise of share options (RM0.57 million).
As of 31 December 2021, the Group’s cash and cash equivalents stood at RM21.31 million.
16
Share Price Performance
The share price of AIMFLEX closed at RM0.145 on 31 December 2021, with a total market capitalisation of RM177.50
million. The year’s high stood at RM0.335 while the year’s low stood at RM0.125.
Operational and financial risks with mitigating strategies
Risk of dependence on our major customers
Approximately 42% (2020: 69%) of the Company’s product sales was from a group of customers. Our Group presently
does not have any long-term contract with our major customers. Hence, any adverse changes in the consumer preference
and taste may affect the development of various products manufactured or introduced by our major customers, which in
turn may affect the demand for our range of specialised automation machines as our customers may scale back on their
overall production and investment plan.
The Group will continue to expand our automation business by penetrating into industries such as automotive, medical,
energy, agriculture and telecommunication industries.
Foreign currency risk
The Group is exposed to fluctuation in foreign exchange rate as a proportion of our sales and purchases are transacted
in foreign currencies, namely in United States Dollar (“USD”) and Singapore Dollar (“SGD”). Any adverse movement in
the foreign exchange markets may have adverse impact on our business performance, financial position and operating
results.
Our Group’s foreign currency sales and purchases provide a natural hedge against fluctuations in foreign currencies and
the Group continues to monitor our exposure to foreign currency movements on a regular basis. Should our exposure be
substantial, the Group would consider financial instruments to hedge our exposure.
Market Risk
As Malaysia entered the endemic phase starting from 1 April 2022, the economic activities are expecting to escalate
at a faster pace than FY2021. However, on a negative note, the geopolitical tensions started in February 2022 has
caused the worldwide price hike and supply disruption in the energies, metals and commodities. This would dampen
macroeconomic activities and heighten the market volatility.
The Group remains cautious of the above and will continue to optimise the resources on product and technology
development that can support the market demands and in line with Industrial Revolution 4.0. The Group will also remain
focus on prioritising the efforts on operational efficiency and cost rationalisation.
17
Forward Looking Statement
In its article titled “IMF Staff Completes 2022 Article IV Mission with Malaysia” dated 13 February 2022, IMF said that
Malaysia’s economy is set for a gradual recovery, with real GDP growth at 3.1 percent in 2021 and projected to accelerate
to about 5.75 percent in 2022, thanks to the authorities’ impressive vaccine rollout and swift implementation of economic
policy support measures. The recovery nevertheless remains uneven, with sizeable economic slack, and substantial
medium-term pandemic-related risks.
The Group apprehends that the effects of COVID-19 pandemic are still prevalent in the Malaysian economy and the
manufacturing industry. There is no assurance that a resurgence of COVID-19 cases and/ or the emergence of new
COVID-19 variants will not adversely impact the manufacturing industry in Malaysia and in turn, our Group’s operations
and financial position. Notwithstanding the above, our Group is in anticipation of a gradual recovery of the Malaysian
economy and manufacturing industry.
The Group will continue to focus its resources on developing products and technologies that are aligned with the
Industrial Revolution 4.0, such as robotics, big data and machine vision.
Barring any unforeseen circumstances and premised on the above as well as the relevant economy and industry outlook,
the Group holds an optimistic view on the prospect of 2022 and have been visibly tapping into domestic opportunities
while cautiously eyeing business opportunities overseas.
18
SUSTAINABILITY STATEMENT
SUSTAINABILITY GOVERNANCE
Our sustainability governance structure forms the foundation for developing and targeting sustainable development
strategies and goals.
The Board of Directors provides direction and guidance to ensure a sustainable development of the business strategies
and risk management within the group. This is supported by the Group Management which comprises the Managing
Director, Executive Directors, Senior Management and various Head of Departments which are tasked to formulate
sustainability strategies, objectives, goals and practises relevant to the organisation.
At the operational level, the Quality, Environment, Safety & Health and the Management System Committees led by the
Managing Director and assisted by appointed Management Representatives. These committees are responsible for the
overall implementation, awareness and stakeholder engagements.
Quality, Environment,
Board of Directors Group Management Safety & Health and
Management System
Committees
1. Responsible for overseeing 1. Formulates sustainability 1. Responsible for matters
sustainable business strategies, goals and related to product quality,
strategies and risk implementation of environment, workplace
management. procedures and practices. safety and human capital
2. Promotes sustainability 2. Provide overall guidance development.
with respect to the and direction towards 2. Engages Stakeholders
Environment, Economic achieving sustainability 3. Raise awareness among
and Social aspects objectives. employees
SUSTAINABILITY POLICIES
AIMFLEX has come a long way since the start of our sustainability journey. At present, our sustainability direction is
governed by three (3) main published policies namely the Environment Management System Policy, Quality Management
System Policy and Occupational Safety & Health Policy all of which are available on our website www.aimflex.com.my.
These policies are implemented and reviewed periodically to enable the group to uphold its sustainable commitments.
We adopt and support the Universal Declaration of Human Rights which is also enshrined in the Federal Constitution of
Malaysia by giving employees fair treatment irrespective of gender, nationality, race, religion and culture wherever they
may be employed.
GRIEVANCE MECHANISM
Grievance Procedure
A grievance procedure was adopted in 2018 which allows any personnel to lodge any grievance to the respective
Supervisor or Head of Department. All grievances should be answered within five (5) to twelve (12) working days subject
to the severity of the complaint.
Whistleblower Policy & Procedure
The Whistleblower Policy and Procedure was implemented in 2020 to allow all stakeholders to lodge any concern or
inappropriate conduct within the Group. This policy provides a communication channel through a dedicated email
address at whistleblowing@aimflex.com.my.
19
GRIEVANCE MECHANISM Cont’d
Code of Conduct
The Group’s Code of Conduct ensures that employees adhere to ethical and responsible business practices based on
the laws and regulations. In May 2020, it was revised emphasising on the importance of governance and good business
conduct.
The Group’s Code of Conduct spells out 6 main pillars and sub-pillars namely:-
i. Duties of Good Faith, Intelligence and Integrity - Compliance with Laws, Rules and Regulations
- Corporate Responsibility
- Anti-Bribery and Corruption
- Offering Business Courtesies
- Money Laundering
- Insider Information and Securities Trading
- Political Activities
- Conflict of Interest
ii. Workplace Culture and Environment - Discrimination and Harassment
- Sexual Harassment
- Forced Labour and Child Labour
- Grievance Procedure
- Health and Safety
- Drugs and Alcohol
iii. Protecting the Group Information and Assets - Record Keeping
- Protection and Proper use of Assets
- Company Funds
- Information Technology
- Confidential Information and Data Privacy
- Social Media
- Public Disclosure and Public Information
iv. Professionalism
v. Accountability
vi. Whistleblowing Channel
More details of the mentioned Policies and Procedure are available at https://www.aimflex.com.my/corporate-
governance.html.
SUSTAINABILITY COMMITMENTS AND TARGETS
The group has aligned its sustainability objectives with that of the United Nations Sustainable Development Goals
(UNSDG).
The SDGs attained by AIMFLEX are as follows:-
UNSDG OBJECTIVES TARGET STATUS

1. All employees to be paid in accordance to 1. Conformance to the Minimum Wage Order
the Minimum Wage Order. for all levels of employees.
2. Create employment. 2. AIMFLEX creates employment for both
locals and foreign nationals through our
various employment initiatives.
20
SUSTAINABILITY COMMITMENTS AND TARGETS Cont’d
The SDGs attained by AIMFLEX are as follows:- Cont’d

1. Appropriate Personal Protective 1. All personnel are provided with free PPE.
Equipment (PPE) are provided free of
charge to all employees.
2. To minimise occupational hazards in the 2. Conducting awareness programmes and
workplace. identifying risks.
3. Training in regards to Emergency Response 3. All personnel are required to attend the
and First Aid. relevant Emergency Response and First
Aid Trainings which are conducted at an
appropriate interval.
4. COVID-19 Testing free of charge. 4. Rapid Test Kits (RTK) are provided free
of charge for self testing purposes on a
bi-weekly basis.
5. Free Meals during Movement Control 5. Lunch and Dinner were provided to all
Order restrictions. personnel during the lockdown periods
when there is a need to be at the work
premises.
6. Provide medical benefits to employees. 6. AIMFLEX provides subsidised medical
check up, medical expenses and dental
fees. Further to that the Group also takes
up Group insurance for Medical Card,
Personal Accident and Life Insurance for
all its personnel.
1. Provide scholarships for higher education 1. Eligible employees are encouraged to
purposes. further their studies in related fields
such as Degree, Masters and even PHDs
programmes from accredited local
universities. In 2021, seven (7) personnel
were offered scholarships.
2. Training and Development. 2. To upskill all its personnel, AIMFLEX
provides trainings for various related job
discipline within the organisation utilising
the Human Resource Development Corp
Fund and also internally budgeted capital.
1. Recognising paid maternity and paternity 1. All eligible employees are allocated paid
leave. maternity and paternity leave.
2. Not condoning the acts of Sexual 2. Implementation of the Code of Conduct
Harassment. including Grievance procedure.
1. Sustainability and Certification. 1. Certified Quality Management System ISO

9001:2015 and Environment Management
System ISO 14001:2015.
2. Equal pay for work of equal value. 2. AIMFLEX practices equal pay without
discriminating on background. Salaries
are based on specified guidelines, this
includes education level, skills and
experience.
3. Prohibition and elimination of child labour 3. Not to employ child labour as mentioned
and forced labour. in our Child Labour and Remediation
Policy. The Group adheres to all legal
requirements of the related Labour Laws.
This would include payment of salaries,
working hours, overtime payments, non
employment of child labour and no forced
labour.
21
SUSTAINABILITY COMMITMENTS AND TARGETS Cont’d
The SDGs attained by AIMFLEX are as follows:- Cont’d

1. Increase access to information and 1. A majority of AIMFLEX’s personnel are
communications technology and strive to provided with Laptops and/or Computers
provide universal and affordable access to for daily work and communications.
the Internet. The Group also strives to provide stable
internet access for ease of work.
1. Reduce waste generation through 1. Recyclable wastes generated are disposed

prevention, reduction, recycling and off through an appointed Recycling
reuse. company. In 2021, AIMFLEX had recycled
13,000kgs of wastes consisting of
paper, cardboard boxes, steel, acrylics,
aluminium, and metals.
2. Use of Battery Powered machines in 2. AIMFLEX has been converting existing
replacement of Diesel powered engines. equipment to battery powered. The Group
had invested in two (2) units battery
powered forklifts for use in the factory
area.
3. Reduce usage of paper. 3. AIMFLEX encourages the practice to
reduce paper usage via printing on both
sides, print when needed and converting
to paperless documents such as payslips
and claim submissions.
STAKEHOLDER ENGAGEMENT
Shareholders are groups or individuals who are directly or indirectly impacted by our business operations. AIMFLEX is
constantly focused in engaging with our stakeholders and responding to their needs to ensure sustainable growth to
our business. AIMFLEX’s key stakeholders includes customers, employees, senior management, shareholders, suppliers,
and related government agencies.
STAKEHOLDERS EXPECTATIONS RESPONSES/IMPACT

Customers Our Responses:
• Establish manufacturing Quality Management System.
Expectations & Concerns • Good project management practices.
• Quality products with competitive pricing. • Continuous learning and improvements.
• On time delivery. • Compliance to customer CSR expectations.
• After Sales Services. • Compliance to customer COVID-19 precaution measures.
• Manufacturing capability and capacity,
technology and innovation. Methods of Engagement
• Comply to customer Corporate Social • Face-to-face meeting with customers.
Responsibility (“CSR”) requirements. • Customer satisfaction Survey.
• Virtual Meeting Support.
• Customer Audit.
• On-Site Visits.
Impact on the Group

• Encourages customer retention for the overall sustainability of the
business.
22
STAKEHOLDER ENGAGEMENT Cont’d

Employees Our Responses:
• Encourage employee feedbacks.
Expectations & Concerns • Individual and department Objectives and Key Results (OKR)
• Respect human rights. measurements.
• A safe and secure working environment. • Integrated training reward and appreciation.
• Career and talent development. • Pandemic precaution measures.
• Competitive remuneration and employee
benefit. Methods of Engagement
• Work-life balance. • Company organised events.
• Formal meetings and discussions.
• Direct communication channel.
• Performance appraisal.
• Training and development.
• Social events with Employees.
• Conflict of Interest Policy.
• Personal Data Protection Act Policy.
• Employee Non-Disclosure Agreement.
• Employee Satisfaction Survey.
Impact on the Group

• Creates competent and efficient employees.
• Encourages employee rentention and in turn add value to the
Group.
Senior Management Our Responses:
• Senior Management Objectives and Key Results (OKR)
Expectations & Concerns measurements.
• Short and medium term business growth • Review of the performance of the senior management in
plan. addressing the company’s material sustainability risks and
• Financial and operational performance. opportunities.
Methods of Engagement
• Monthly Management Meeting.
• Quarterly financial results.
• Ad-hoc meetings and correspondence.
Impact on the Group

• Senior Management that is engaged and aligned to the direction of
the Group.
Shareholders Our Responses:
• Enable investor relationship function.
Expectations & Concerns • Transparency of operational performance.
• Long term business growth plan. • Establish risk management function.
• Financial performance. • Management competencies.
• Return on investment.
• Corporate sustainability. Methods of Engagement
• Quarterly analyst briefings.
• Quarterly financial results.
• Annual & Extraordinary General Meetings.
• Announcements.
• Annual report.
• Ad-hoc meetings and correspondence.
• Corporate website.
Impact on the Group

• Growing revenue couple with managing costs effectively for a
sustainable return.
23
STAKEHOLDER ENGAGEMENT Cont’d

Vendors, Suppliers and Contractors Our Responses
• Assessment on supply deliverables.
Expectations & Concerns • Supplier qualification plan.
• Product quality. • Supplier Audit.
• Competitive pricing. • Health Declaration Form.
• Business continuity. • Pandemic SOP.
• Long-term business relationship.
• Suppliers’ performance evaluation.
• Regular feedback on performance.
• Visitor Non-Disclosure Agreement.
Impact on the Group

• Building trust and close relationships with our supply chain will
lead to better value creation outcome.
Government and Regulatory Authorities Our Responses
• Full compliance with regulatory requirements i.e. but not limited
Expectations & Concerns to Ministry of International Trade & Industry (MITI), Department of
• Regulatory compliances. Occupational Safety & Health (DOSH), Department of Environment
(DOE), Fire & Rescue Department of Malaysia (BOMBA).
• Continuous monitoring of compliances by practicing the highest
standards of governance and ethics.
• Participating in social programme and exhibition.
• Attend seminar related to new standards, Acts and regulations.
• Announcement and Report submission to regulators.
Impact on the Group

• Business continuity.
Local Community Our Responses
• Giving priority to locals in employment.
Expectations & Concerns • Ensuring safe operations with regular environmental monitoring
• Employment and business opportunities. and effective waste management.
• Conduct CSR programmes.
• Industrial Training.
• Employment drive in collaboration with local universities.
Impact on the Group

• Increase standing of the Group as a caring, responsible and
preferred employer.
24
MATERIAL ASSESSMENT
Material issues have the ability to affect AIMFLEX’s value creation. AIMFLEX has determined that the following matters
are key to our sustainable development journey:-
al Ec
nt
on
e
- Ethics, Integrity and
nm
om
Conducts
- Legal and Regulatory
Enviro
- Environmental Compliance
ics
Monitoring - Corporate Governance &
- Commitment towards Transparency
the Environment - Commitment towards
- Legal & Regulatory Quality
Compliance
- Employees
- Health and Safety
- Talent Training and
Development Programme
- Corporate Social
Responsibilities (CSR)
S ocial
ECONOMICS
The Group is committed to conduct its business in compliance with the applicable laws, rules and regulations in
accordance to the highest standards.
Material Matter Impact on AIMFLEX AIMFLEX’s Response to the Matter Stakeholder Groups
Affected
Ethics, Integrity Creating an AIMFLEX • Implementation of various policies such Customers,
& Conducts culture and mindset as Code of Conduct, Whistleblower & Anti- Employees,
Bribery. Shareholders,
• Adopting a zero-tolerance approach Vendors, Suppliers,
against discriminatory conducts, sexual Contractors
harassment, child labour and any practices
that seek to obtain business through
improper means.
• Privacy agreement through the respective
Non-Disclosure Agreements.
Legal & Reputation • Adherence to the relevant regulatory Customers,
Regulatory requirements. Employees,
Compliance • Engagement with the Government on Shareholders, Vendors,
renewal of licences. Suppliers, Contractors,
Government &
Regulatory Authorities
Corporate Enterprise Risk • Embedding Risk and Compliance culture Employees,
Governance and Management across departments. Shareholders
Transparency • Performance of audits periodically by
Internal and External Auditors.
• Risk awareness briefings and trainings.
Commitment Consistently conform to • Maintenance of the Quality Management Employees, Vendors,
towards Quality customer requirements Systems ISO 9001:2015 under UKAS (The Suppliers, Contractors,
through the pursuance United Kingdom Accreditation Service) and
of top of the class DSM (Department of Standards Malaysia).
products, processes and • Implementation of the 5S philosophy
management quality (Seiri, Seiton, Seiso, Seiketsu, Shitsuke).
development
25
ENVIRONMENT
The Group is aware of its responsibilities and impact its operations have on the environment. Hence, understanding
the impacts and how we response will help us mitigate any future issues and help us in managing sustainability better.
Material Matter Impact on AIMFLEX AIMFLEX’s Response to the Matter Stakeholder Groups
Affected
Environmental Compliance with • Implementation of yearly monitoring Customers, Employees,
Monitoring the Department conducted at AIMFLEX’s factory in Senai, Shareholders, Vendors,
of Environment Johor: Suppliers, Contractors
Requirements i. Sewage monitoring
ii. Boundary noise monitoring
iii. Stack Monitoring
• Environmental Impact Assessment is
carried out once in three (3) years.
Commitment Conformance to the • Maintenance of the Environmental Employees, Vendors,
towards the Sustainability of the Management Systems ISO 14001:2015 Suppliers, Contractors,
Environment business through under UKAS (The United Kingdom Government &
implementation Accreditation Service) and DSM Regulatory Authorities
of Environmental (Department of Standards Malaysia).
Management System • Integration of environmental concerns
and impacts into the Group’s decision
making and activities.
Legal & Reputation • Compliance to the relevant Customers, Employees,
Regulatory environmental regulatory requirements. Shareholders, Vendors,
Compliance • Engagement with the relevant Suppliers, Contractors,
government departments such as: Government &
i. Department of Environment (DOE) Regulatory Authorities
ii. Department of Occupational Safety &
Health (DOSH)
iii. BOMBA
iv. Local Government i.e. Majlis
Bandaraya Iskandar Puteri, Majlis
Perbandaran Kulai, Majlis Bandaraya
Johor Bahru
Energy
The Group consumes large amounts of electricity and water for its operations. Hence, we continue to take steps to
optimise our consumption. In 2021, we created a culture where water and electricity were utilised in a prudent manner
via:
- Increased awareness among employees to turn off the lights, computers, air-conditioning and other electrical
appliances during lunch hours, out of office and after working hours.
- Employee awareness on water savings, reusability and reduce use for purpose of cleaning.
- Installing on and off timers for appliances such as lightings and air-conditioning.
- Monitoring monthly usage of utilities.
Waste Management
Scheduled Waste
The Group provides sufficient Scheduled Waste storage for the competent staff to manage the Scheduled Waste.
The competent Scheduled Waste personnel will update all inventories to e-Swis (an Electronic Scheduled Waste
Information System under the DOE). Scheduled Wastes are disposed off periodically within the stipulated time frame as
mentioned in the Environment Quality (Scheduled Waste) Regulations 2005.
26
Waste Management Cont’d
Scheduled Waste Cont’d
A total of 11,494.70kg of various Scheduled Wastes were generated in 2021 as follows:-
Scheduled Wastes Generated (2021) kg

9000
7687.5
8000
7000
6000
5000
4000
3000
2000 1343.7
692 745.5
1000 71 97 5.5 319.5 28.1 78.6 271.8 154.5
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Recycling Programme
As part of AIMFLEX’s sustainability measures, AIMFLEX had in 2021 recycled 13,000kgs of recyclable wastes comprising
paper, cardboard boxes, steel, acrylics, aluminium, and metals. Disposal was done through an appointed recycling
company.
SOCIAL
Employees
The group is aware that having a loyal, dedicated and talented workforce while providing a safe and condusive workplace
is important for the Group’s growth.
The Group provides fair employment opportunities to potential candidates based on experience and performance
irrespective of race, religion, gender and/or nationality.
The remuneration scheme is designed to attract new talents and retaining high performers. Training programs and
opportunities are also provided to those who wish to advance their skills and knowledge in their respective fields and
disciplines.
27
SOCIAL Cont’d
Employees Cont’d
On 31 December 2021, AIMFLEX had recorded 267 personnel. The employee’s distribution are as follows:-
Total Workforce Gender Distribution Age Distribution
42 24
100
8.99% 7
15.73% 83 37.45% 2.62%
225 184
31.09%
84.27% 68.91%
136
50.94%
Managerial Male <30

Non Managerial Female 31-39
40-49
>50
Health & Safety
Creating a safe, healthy and productive working environment for employees forms part of the Group’s objective. The
Group adheres strictly to the Occupational Health & Safety (OHS) management principles, the Occupational Safety
and Health Act and relevant Safety and Health Regulations to safeguard employees and prevent the occurrence of
occupational accidents.
Senior Management actively contributes to this goal with the implementation of the Safety and Health Policy, Hazard
Identification, Risk Assessment and Risk Control (HIRARC) and also Risk Assessment.
The Group formed a Safety, Health and Environment Committee comprising representatives from each department. The
committee has been assigned to supervise and ensure the departmental station is safe and free from hazards or injuries.
Regular inspection is conducted by the Safety & Health Officer to ensure the safety of the workplace and the policies are
adhered to, identify and record hazards for Management review and for corrective action.
Emergency Management
Our goal is to prevent workplace incidents and injuries and embed a culture where safety plays a part in the daily
operations. This is done through various initiatives such as the setting up of the Safety and Health Committee, Emergency
Response Team and First Aid Team. Our Procedure for emergency management is reviewed as and when necessary to
meet all regulatory safety requirements.
Convenience For All Employees
The Human Resources and Administration (HRA) Department had in November 2021 fully implemented the Online
Payslip where employees would be able to download and print their payslip. Previously, payslip distribution was done
by hardcopy.
Another paperless initiative that the Group had implement was the Online Claim submission and approval process.
Submissions are done online through the e-Profile portal and approvals are done by the various approving parties
before release of payment by the Finance Department.
COVID-19 Vaccination
The health and safety of our employees is our highest priority. For this reason, AIMFLEX had strongly encouraged our
employees to be fully vaccinated for COVID-19, unless a formal medical exemption applies. AIMFLEX had by 31 December
2021, 100% two (2) shots vaccinated employees while the booster shot numbers were at 85%.
28
Talent Training & Development Programme
Employees are company assets and is keys to business growth and continuity.
Training Value
The group recognises the strong desire of employees to improve their knowledge,
RM105,031.00
technical skills and soft skills. In order to acquire knowledge and new skillset for the
job, the Group organises internal and external training for employees.
In 2021, the Group had offered 105 training sessions covering 2,639 training hours for
employees from the respective departments. Due to the pandemic and restrictions in
place, all of these hours were achieved via online training.
Another initiative that AIMFLEX is currently pursuing is to encourage employees
RM40,068.00
to undertake undergraduate, postgraduate or even doctorate degree part time
programmes in local universities by awarding of scholarships to eligible employees.
In 2021, a total of seven (7) employees were sponsored.
Collaborations with local universities on internship placement programmes had

successfully placed eleven (11) undergraduates in 2021.
2020 2021
Corporate Social
Responsibility (CSR)
1. Donation in kind to
Pertubuhan Kebajikan
Vision Kulaijaya, Johor
2. Cash Donation to
the Johor Cerebral
Palsy Association by
AIMFLEX’s Emergency
Response Team (ERT)
29
CORPORATE GOVERNANCE OVERVIEW STATEMENT
This Corporate Governance Overview Statement is presented pursuant to Rule 15.25(1) of the Ace Market Listing
Requirements (“ACE LR”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”).
The objective of this Statement is to provide an overview of the application of the corporate governance practices of
the Group during the financial year ended 31 December 2021 (“FY 2021”) and to ensure good corporate governance
is practised throughout the Group as a fundamental part of discharging its fiduciary responsibilities to safeguard and
enhance shareholders’ value and the financial performance of the Group in accordance with the Malaysian Code on
Corporate Governance 2021 (“MCCG”).
PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS
The Board’s main roles are to create value for shareholders and provide leadership to the Group. It is primarily
responsible for the Group’s overall strategic plans and directions, overseeing the conduct of the businesses, risk
management, succession planning of Senior Management, implementing investor relations programmes and ensuring
the system of internal controls and management information system are adequate and effective.
The Board provides overall strategic guidance, effective oversight on the governance and management of the business
affairs of the Group. Responsibilities of the Board includes:-
(a) at all times act honestly, fairly, ethically and diligently in all aspects in accordance with the laws, rules and
regulations applicable to the Company;
(b) ensure stakeholders are kept informed of the Company’s performance and major developments affecting its
state of affairs;
(c) identify and manage principal risks affecting the Company;
(d) maintain a robust and sound framework for internal control and risk management to identify, analyse, evaluate,
manage and monitor significant financial and non-financial risks;
(e) be responsible for the overall corporate governance of the Group, including environmental and social impact
and the Group’s strategic direction, establishing goals for Management and monitoring the achievement of these
goals;
(f) input into and approve Management development of corporate strategies, including setting performance
objectives;
(g) monitor corporate performance and implementation of strategies and policies;
(h) monitor and review Management processes aimed at ensuring the integrity of financial and other reporting with
the guidance of the Audit and Risk Management Committee (“ARMC”);
(i) ensure that succession planning of the Board and Senior Management is in place;
(j) monitor the Board composition, processes and performance with the guidance of the Nomination Committee;
(k) review and approve remuneration of Directors under the guidance of the Remuneration Committee; and
(l) ESOS is properly administered in accordance to the ESOS By-Laws.
In discharging its duties, the Board is assisted by the Board Committees namely the ARMC, Remuneration Committee,
Nomination Committee, ESOS Committee and Investment Committees. Each Committee operates within its respective
defined Terms of Reference (“TOR”) which have been approved by the Board. The TOR of the respective Board Committees
are periodically reviewed and assessed to ensure that the TOR remain relevant and adequate in governing the functions
and responsibilities of the Committee concerned and reflect the latest developments in the ACE LR of Bursa Malaysia
and the MCCG.
30
PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS Cont’d
A. Audit and Risk Management Committee (“ARMC”)
For details of its composition and activities during the FY 2021, please refer to the ARMC Report on page 50 of this
Annual Report.
B. Remuneration Committee (“RC”)
The RC is appointed by the Board and consists entirely of Independent Non-Executive Directors as follows:-
Members Designation
Siti Zaleha Binti Sulaiman Chairperson - Independent Non-Executive Director
Law Lee Yen Member - Independent Non-Executive Director
Professor Dr. Ruzairi Bin Hj Abdul Rahim Member - Independent Non-Executive Director
The RC reviews and reports to the Board on remuneration and personnel policies, compensation and benefits
programmes with the aim to attract, retain and motivate individuals of the highest quality. The remuneration
should be aligned with the business strategy and long-term objectives of the Group, and to reflect the Board’s
responsibilities, expertise and complexity of the Group’s activities. The RC shall be appointed by the Board and
shall comprise exclusively Non-Executive Directors with a majority of Independent Directors.
The remuneration package of Executive Directors is structured to reflect his or her experience, performance and
scope of responsibilities. The remuneration of Non-Executive Directors is in the form of annual fees which are
approved by the shareholders at the annual general meeting (“AGM”). Where applicable, the Board also takes into
consideration any relevant information from survey data.
In carrying out its duties and responsibilities, the RC has full, free and unrestricted access to the Group’s records,
properties and personnel. During the FY 2021, the RC convened three (3) meetings and full attendance of the
members were recorded at the meeting. The meeting was held to review the remuneration packages of the
Directors and Senior Management. The TOR of the RC is available for reference at www.aimflex.com.my.
31
B. Remuneration Committee (“RC”) Cont’d
The details of the aggregate remuneration of the Directors of the Company (comprising remuneration received
and/or receivable from the Company and its subsidiaries) during the FY 2021 are categorised as follows:-
Company Salaries,
emoluments
and statutory Benefits
Fee contribution(i) Bonuses in-kind(ii) Total
RM RM RM RM RM
Independent Non-Executive
Directors:
Siti Zaleha Binti Sulaiman 60,000 3,800 - - 63,800
Professor Dr. Ruzairi 48,000 3,500 - - 51,500
Bin Hj Abdul Rahim
Law Lee Yen 48,000 3,500 - - 51,500
Non-Independent
Non-Executive Director:
Dato’ (Dr.) Ts. Awang Daud 7,679 - - - 7,679
Bin Awang Putera
(designated as Non-Independent
Non-Executive Chairman on 25.01.2022)
Executive Directors:
Chuah Chong Ewe - - - - -
(appointed on 25.01.2022)
Chuah Chong San - - - - -
Dato’ (Dr.) Ts. Awang Daud - 327,032 - 16,331 343,363
Bin Awang Putera
(designated as Executive
Chairman from 16.02.2021
to 25.01.2022)
Tee Sook Sing - - - - -
Lo Ling - - - - -
(resigned on 25.01.2022)
Emma Yazmeen Yip - - - - -
Binti Mohd Jeffrey Yip
Total 163,679 337,832 - 16,331 517,842
32
B. Remuneration Committee (“RC”) Cont’d
The details of the aggregate remuneration of the Directors of the Company (comprising remuneration received
and/or receivable from the Group and its subsidiaries) during the FY 2021 are categorised as follows:-
Group Salaries,
emoluments
and statutory Benefits
Fee contribution(i) Bonuses in-kind(ii) Total
RM RM RM RM RM
Independent Non-Executive
Directors:
Siti Zaleha Binti Sulaiman 60,000 3,800 - - 63,800
Professor Dr. Ruzairi 48,000 3,500 - - 51,500
Bin Hj Abdul Rahim
Law Lee Yen 48,000 3,500 - - 51,500
Non-Independent
Non-Executive Director:
Dato’ (Dr.) Ts. Awang Daud 7,679 - - - 7,679
Bin Awang Putera
(designated as Non-Independent
Non-Executive Chairman on 25.01.2022)
Executive Directors:
Chuah Chong Ewe - - - - -
Chuah Chong San - - - - -
Dato’ (Dr.) Ts. Awang Daud - 327,032 - 16,331 343,363
Bin Awang Putera
(designated as Executive
Chairman from 16.02.2021
to 25.01.2022)
Tee Sook Sing - 344,732 - 40,819 385,551
Lo Ling - 374,993 - - 374,993
Emma Yazmeen Yip - 404,123 - 23,334 427,457
Binti Mohd Jeffrey Yip
Total 163,679 1,461,680 - 80,484 1,705,843
Notes:
(i.) Statutory contributions comprised EPF.
(ii.) Benefits-in-kind comprised provision of company motor vehicle, petrol allowance, insurance, phone bills
and share based payments for ESOS (for Executive Directors only).
C. Nomination Committee (“NC”)
The NC is delegated with the responsibility to ensure a formal and transparent procedure for the appointment of
new Directors to the Board. The NC will review and assess the proposed appointment of new Directors, and there
upon make the appropriate recommendations to the Board for approval. In addition, the NC is also responsible
for reviewing candidates for appointment to the Board Committees and making appropriate recommendations
to the Board for approval. It is also tasked with assessing the competencies and effectiveness of the Board, the
Board Committees and the performance of individual directors in ensuring that the required mix of skills and
experience are present on the Board.
33
C. Nomination Committee (“NC”)
The NC is appointed by the Board and consists entirely of Independent Non-Executive Directors as follows:-
Members Designation
Siti Zaleha Binti Sulaiman Chairperson - Independent Non-Executive Director
Professor Dr. Ruzairi Bin Hj Abdul Rahim Member - Independent Non-Executive Director
In carrying out its duties and responsibilities, the NC has full, free and unrestricted access to the Group’s records,
properties and personnel. During the FY 2021, the NC convened one meeting and full attendance of the members
were recorded at the meeting. The meeting was held to review the assessment on independence of Independent
Non-Executive Directors. The NC also reviewed and recommended the re-election of Members of the Board who
are retiring at the AGM for shareholders’ approval, pursuant to the Constitution of the Company. The TOR of the
NC is available for reference at www.aimflex.com.my.
D. ESOS Committee (“EC”)
On 19 August 2020, the shareholders had approved a new Employees’ Share Option Scheme (“ESOS”) and its
related ESOS By-Laws. The new ESOS is valid for a duration of 10 years and will expire in the year 2030.
The ESOS Committee was established on 24 August 2020 to oversee the allocation of ESOS Options and its
administration to always ensure full compliance with the By-Laws.
The members of the ESOS Committee are as follows:-
Members Designation
Professor Dr. Ruzairi Bin Hj Abdul Rahim Chairman - Independent Non-Executive Director
Tee Sook Sing Member - Managing Director
Lo Ling (resigned on 25.01.2022) Member - Executive Director
Hing Fook Sern Member - Key Senior Management
Ong Soo Lid (appointed on 24.08.2021) Member - Key Senior Management
Lee Yong Ho (resigned on 30.06.2021) Member - Key Senior Management
The EC meets whenever necessary. For the financial year ended 31 December 2021, the EC held one meeting.
E. Investment Committee(“IC”)
The Investment Committee was established on 27 May 2021 to recommend to the Board and review all significant
investments made and to be made by the Group. The IC is also responsible to recommend to the Board the fund-
raising activities of the Group.
The members of the IC are as follows:-
Members Designation
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera Chairman - Non-Independent Non-Executive Chairman
Chuah Chong Ewe (appointed on 25.02.2022) Member - Executive Director
Lo Ling (resigned on 25.01.2022) Member - Executive Director
The IC meets whenever necessary. The TOR of the IC is available for reference at www.aimflex.com.my.
34
Roles of the Chairman and Managing Director
There is a clear segregation of responsibilities between the Chairman and Managing Director to ensure there is an
appropriate balance of power, authority and accountability at the Board level.
The Chairman of the Board plays a critical role on the Board, leading the Board in its responsibilities for the business and
affairs of the Group and oversight of Management while the Managing Director is responsible to the Board for the overall
management and profit performance of the Group, including all day-to-day operations and administration within the
framework of Group policies, reserved powers and routine reporting requirements. The Managing Director may delegate
aspects of her authority and power but remains accountable to the Board for the Group’s performance.
Role of the Company Secretaries
The Company Secretaries are responsible for ensuring that the Board procedures are followed, that the applicable rules
and regulations for the conduct of the affairs of the Board are complied with and for all matters associated with the
maintenance of the Board or otherwise required for its efficient operation. The Company Secretaries will also advise the
Board on any new statutory requirements, guidelines and listing rulings relating to corporate governance as and when
it arises. All Board members have direct access to the advice and services of the Company Secretaries for the purpose of
the Board’s affairs and the business.
Access to Information and Advice
Prior to the Board meetings, every Director is given an agenda and a comprehensive set of Board papers consisting
of reports on the Group’s financial performance, the quarterly or annual financial results, the minutes of preceding
meetings of the Board and the Board Committees, and relevant proposal papers (if any) to allow them sufficient time to
review, consider and deliberate knowledgeably on the matters to be tabled.
Senior key management as well as advisers and professionals appointed to act for the Company on corporate proposals to
be undertaken by the Company are invited to attend the meetings to furnish the Board with their views and explanations
on relevant agenda items tabled to the Board and to provide clarification on issues that may be raised by any Director.
In between Board meetings, approvals on matters requiring the sanction of the Board are sought by way of circular
resolutions enclosing all the relevant information to enable the Board to make informed decisions. All circular resolutions
approved by the Board are tabled for notation at the subsequent Board meeting.
The Board also perused the decisions deliberated by the Board Committees through minutes of these Committees.
The Chairman of the Board Committees is responsible for informing the Board at the Directors’ Meetings of any salient
matters noted by the Committees and which may require the Board’s direction.
The Board members have access to the advice and services of the Company Secretaries and key senior management. The
Board, whether as a full board or in their individual capacity, in the furtherance of their duties, may seek independent
professional advice in discharge of their duties and obligations at the Company’s expense.
Board Charter
The Board Charter sets out the principles governing the Board and adopts the principles and practices of good corporate
governance in the management of the Group.
The Board Charter shall be reviewed by the Board as and when required to ensure its relevance in assisting the Board
to discharge its duties with the changes in the corporate laws and regulations that may arise from time to time and to
remain consistent with the Board’s objectives and responsibilities.
The Board Charter is published on the Company’s website at www.aimflex.com.my.
35
Code of Conduct
The Group’s Code of Conduct (“the Code”) reflects the objective of management to reinforce Group-wide ethical
standards and to sustain a work environment that fosters integrity, caring, respect and professionalism. It is to serve the
long-term interest of the Group by following the policy strictly to be lawful, highly principled and socially responsible in
all business activities. The Code is published on the Company’s website at www.aimflex.com.my.
Whistleblower Policy
The Group has set out various channels for employees or stakeholders to report or disclose any genuine concerns
about unethical behaviour, malpractices, illegal acts or failure to comply with regulatory requirements (“reportable
misconduct”). The Whistleblower Policy also provides protection for the party who reported allegations of such
malpractices / misconducts / wrongdoings. The policy is published on the Company’s website at www.aimflex. com.my.
Board Composition and Independence
The Board currently has seven (7) members, comprising the Non-Independent Non-Executive Chairman, three (3)
Independent Non-Executive Directors and three (3) Executive Directors. The current composition of the Board is in
compliance with Rule 15.02 of the ACE Market Listing Requirements of Bursa Malaysia. The profile of each Director is
presented under Directors’ Profile on pages 5 to 8 of the Annual Report.
Appointments and Re-elections to the Board
Candidates for appointment to the Board as Independent Directors are selected after taking into consideration the
mix of skills, experience and strength that would be relevant for the effective discharge of the Board’s responsibilities.
Potential candidates are first evaluated by the NC and, if recommended by the NC, subsequently, by the Board based on
their respective profiles as well as their character, integrity, professionalism, independence and their ability to commit
sufficient time and energy to the Group’s matters.
Article 131 of the Constitution of the Company provides that one third (1/3) of the Directors for the time being shall retire
from office and an election of Directors shall take place at the forthcoming AGM of the Company provided always that
each Director shall retire at least once in every three (3) years but shall be eligible for re-election.
The Directors who are subject to retirement at the forthcoming AGM of the Company are listed in the Notice of AGM and
have offered themselves for re-election at the said AGM.
Gender Diversity Policy
The Board recognises the importance of gender diversity and is committed to the extent practicable, to address the
recommendation of the MCCG relating to the establishment of a policy formalising its approach to boardroom and
workplace diversity.
The current Board composition consists of three (3) women Directors. The women Directors are holding the positions of
Managing Director, Chairperson of our ARMC, Chairperson of our Remuneration Committee and Nomination Committee.
Annual Assessment
The NC annually reviews the size and composition of the Board and the Board Committees in order to ensure the
Board and the Board Committees have the requisite competencies and capacity to effectively oversee the overall
business and carry out their respective responsibilities. The NC uses the Board and Board Committee Evaluation Form
comprising questionnaires for the assessment. The effectiveness of the Board is assessed in the Board’s responsibilities
and composition, administration and conduct of meetings, communication and interaction with Management and
stakeholders and Board engagement. A Board Skills Matrix Form is also used as a general assessment of the composition,
knowledge, skills and experience of the current Board.
The annual evaluation of the individual Director/Board Committee member is performed by the NC via the Directors’
Evaluation Form comprising questionnaires pertaining to the Director’s knowledge and skills, participation, contribution
and performance, calibre and personality.
To assess the independence of the Independent Directors, each of the Independent Directors annually provides the NC
with their Self-Assessment Independence Checklist.
36
Meetings and Time Commitment
The Board usually meets at least four (4) times a year at quarterly intervals with additional meetings convened when
necessary. During the FY 2021, the Board met on four occasions; where it deliberated on matters such as the Group’s
financial results, strategic decisions, business plan, and strategic direction of the Group among others. Board meetings
for each year are scheduled in advance before the end of the preceding year in order for Directors to plan their schedules.
The Board is satisfied with the level of time commitment of the Directors from their attendance at the Meetings. The
record of the Directors’ attendance at Board Meeting for the FY 2021 is contained in the table below:-
Members Attendance
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera 4/5
Tee Sook Sing 5/5
Chuah Chong Ewe (appointed on 25.01.2022) Not applicable
Chuah Chong San (appointed on 25.01.2022) Not applicable
Lo Ling (resigned on 25.01.2022) 5/5
Emma Yazmeen Yip Binti Mohd Jeffery Yip (resigned on 25.01.2022) 5/5
Siti Zaleha Binti Sulaiman 5/5
Professor Dr. Ruzairi Bin Hj Abdul Rahim 5/5
Law Lee Yen 5/5
Directors’ Training
The Directors also made time to attend appropriate external training programmes to equip themselves further with
the knowledge to discharge their duties more effectively and to keep abreast of developments on a continuous basis in
compliance with Rule 15.08 of the Listing Requirements of Bursa Malaysia, the details of which are set out below:-
Name Programmes/ Seminar Attended Dated Attended Duration

Dato’ (Dr.) Ts. Awang Corporate Directors Conference 2021 Governance 4.0 17 August 2021 1 Day
Daud Bin Awang
Putera
Tee Sook Sing Risk Management and Risk Assessment Technique 24 & 25 March 2021 2 Days
Workshop Training
FMM-BMCC Webinar on EU-EXIT: Trade & Investment 13 June 2021 1 Day
Opportunities for Malaysian Companies and
Conversion from Conformitè Europëenne (CE) Mark to
United Kingdom Conformity Assessed (UKCA)
ISO/QEMS MRM Guidelines Briefing 16 July 2021 1 Day
MIRA Webinar: Executing Business Transformation for 27 August 2021 1 Day
Sustainable Performance – Complimentary
ASEAN Executive Connect 2021: Getting Your Digital 8 September 2021 1 Day
Transformation Journey on Track
Invitation to the Philippine Investment Forum for 14 October 2021 1 Day
Malaysia
Virtual Export Acceleration Mission Vietnam 23 & 25 November 2021 2 Days
Market Updates And Business Opportunities In North 14 December 2021 1 Day
Rhine-Westphalia, Germany
Chuah Chong Ewe Reassess Your Business, Accelerate the Sustainability 18 June 2021 1 Day
Webinar
Chuah Chong San Webinar on Budget 2022: Budget highlights and 12 November 2021 4 Hours
recent tax developments 15 Min
Siti Zaleha Binti Raising Defences : Section 17A, MACC Act 9 & 10 June 2021 2 Days
Sulaiman Implementing amendments in the Malaysian Code on 14 June 2021 1 Day
Corporate Governance
37
Directors’ Training Cont’d
Name Programmes/ Seminar Attended Dated Attended Duration

Professor Dr. Ruzairi Enhancing Innovation and Creation of Impactful 3 February 2021 2 Hours
Bin Hj Abdul Rahim Research using 10-10 MySTIE Framework
Publishing Your Research in Indexed Journals 3 February 2021 2 Hours
Siri Ceramah ISES (Integrity, Synergy, Excellence, 4 February 2021 1.5 Hours
Sustainability)
Discussion on Malaysia’s AI Roadmap Initiative 4 February 2021 Half Day
Siri 2 / 2021 Memperkasakan Pendidikan Menerusi 8 February 2021 1 Hour
Libat Sama Komuniti
Go B.I.G with Digital 8 February 2021 1.5 Hours
AKEPT Global Series: Universities Leadership in 10 February 2021 Half Day
challenging times… and the way forward
UTMALUMNI Financial Talk Series 1.0 Pulangan 21 February 2021 1 Day
Pelaburan Anda Rendah? Ketahui Rahsia Teknik
Pelaburan DDNK Yang lebih Menguntungkan
Sharing session with ‘SKEShine’ on International 29 April 2021 1.5 Hours
Grant Experience
Hilangnya Nilai Murni dalam Organisasi? Peranan 3 May 2021 1 Day
Amalan Nilai Teras
Sembang Santai Resak Pengurusan Stress Dan 23 May 2021 1.5 Hours
Depresi
Zoom Peluang Pelaburan Technology Stocks 23 May 2021 Half Day
Briefing on Leadership Professional Certificate 30 May 2021 1 Day
through “Leadership Readiness Development
Program:”
SAE International: Mobility Engineering Today and 23 June 2021 1 Day
Tomorrow
Industry 4.0 i-connect Network 16 August 2021 3 Hours
Riding the waves in Hong Kong Live Webinar 28 August 2021 1 Hour
Branding For Board Directors – Enhancing Your Profile 26 October 2021 3 Hours
For The Board
Law Lee Yen Presentation of Financial Statements using MPERS 20 January 2021 1 Day
Preparation of Transfer Pricing Documentation 24 February 2021 1 Day
Latest Tax Considerations and Issues for SMEs 3 August 2021 1 Day
Withholding Tax in Malaysia- Principles and latest 12 August 2021 1 Day
developments
Avoiding Transfer Pricing Mistakes 17 August 2021 1 Day
Seminar Percukaian Kebangsaan 2021 9 November 2021 1 Day
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
Suitability and Independence of External Auditors
The External Auditors report to the ARMC in respect of their audit on each year’s statutory financial statements on
matters that require the attention of the ARMC. At least once a year, the ARMC will have a separate session with the
External Auditors without the presence of the Executive Directors and Management.
The External Auditors are required to declare their independence annually to the ARMC as specified by the by- laws
issued by the Malaysian Institute of Accountants. The External Auditors had provided the declaration in their annual
audit plan presented to the ARMC.
The ARMC undertakes annual assessment of the suitability and independence of the External Auditors. The factors
considered by the ARMC in its assessment include, adequacy of professionalism and experience of the staff, the resources,
the fees and the independence of and the level of non-audit services rendered to the Group.
38
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Cont’d
Sound Risk Management Framework
The Board recognises the importance of a sound risk management framework and internal control system in order to
safeguard the Group’s assets and therefore, shareholders’ investments in the Group.
The Board affirms its overall responsibility for the Group’s system of internal controls. This includes reviewing the
adequacy and integrity of financial, operational and compliance controls and risk management procedures within an
acceptable risk profile. Since certain risks and threats are externally driven, unforeseen and beyond the Group’s control,
the system can only provide reasonable assurance against misstatement or loss.
The Board had put in place an ongoing process for identifying, evaluating and managing significant risks faced by the
Group.
Internal Audit Function
The Group has outsourced the internal audit function to NeedsBridge Advisory Sdn Bhd, an internal audit consulting
firm. The engagement was done during the FY 2019 where the ARMC and Board approved the proposed internal audit
plan for FY 2020 and 2021 and Risk Management Framework and Key Risk Report.
The Statement of Risk Management and Internal Control set out on pages 43 to 49 of this Annual Report provides an
overview of the state of internal controls within the Group.
PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS
Compliance with Applicable Financial Reporting Standards
The Board is assisted by the ARMC to oversee the Group’s financial reporting processes and the quality of its financial
reporting and to ensure that the financial statements of the Group and the Company comply with applicable financial
reporting standards in Malaysia. Such financial statements comprise the quarterly financial report announced to Bursa
Malaysia and the annual audited financial statements.
A Statement by the Board of its responsibilities in respect of the preparation of the annual audited financial statements
is set out on page 40 of this Annual Report.
Investors Relations and Shareholders Communication
The Group identifies the importance of effective and timely communication with shareholders and investors to keep
them informed of the Group’s latest financial performance and material business/corporate matters affecting the Group.
The information about the Group’s business and corporate developments is circulated via the Company’s annual reports,
various disclosures to Bursa Malaysia including quarterly financial results and various announcements made from time
to time.
The AGM provides the main platform for dialogue and interactions with the shareholders. At the meeting, the Chairman
sets out the performance of the Group for the financial year then ended. Question and Answer session will then be
convened wherein the Directors, Company Secretaries and the External Auditors will be available to answer to the
queries raised by the shareholders.
Voting at the forthcoming AGM will be conducted by poll as poll voting reflects shareholders’ views more accurately and
fairly as every vote is properly counted in accordance with the one share, one vote principle. The Company will continue
to explore the deployment of technology to enhance the quality of engagement with shareholders and further facilitate
greater participation by shareholders at general meetings of the Company.
Shareholders and the public can also access information on the Group’s background, products and financial
performance through the Company’s website www.aimflex.com.my.
Key Focus Areas And Future Priorities In Relation To Corporate Governance Practices
In view of the enhancements in the corporate governance regulations, the Board has reviewed and updated the existing
policies and procedures to ensure that they are kept contemporaneous and be relevant to the Company’s needs. The
Board will further look into the enhancements or developments of corporate governance policies and procedures, as
the case may be.
39
STATEMENT OF DIRECTORS’ RESPONSIBILITY IN RELATION TO FINANCIAL STATEMENT
The Directors are responsible for preparing the financial statements of the Group and of the Company in accordance with
applicable laws and regulations, such as Malaysian Financial Reporting Standards, International Financial Reporting
Standards, the requirements of the Companies Act 2016 (“the Act”) and pursuant to Rule 15.26(a) of the Ace Market
Listing Requirements of Bursa Malaysia Securities Berhad to ensure that the financial statements give a true and fair
view of the state of affairs, the results and the cash flows of the Group and of the Company for the financial year.
In preparing each of the Group and Company financial statements, the Directors are required to:-
• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group
and the Company will continue in business.
The Directors are also responsible to ensure that proper accounting and other records are kept to ensure that financial
statements comply with the Act as well as taking reasonably available steps to safeguard the assets of the Group and the
Company, and to prevent and detect fraud and other irregularities.
This statement is made in accordance with a resolution of the Board dated 28 April 2022.
40
ADDITIONAL COMPLIANCE INFORMATION
1. Utilisation of Proceeds
In conjunction with its listing on the ACE Market of Bursa Malaysia Securities Berhad, the gross proceeds arising
from the Public issue amounting to RM39.09 million is intended to be utilised based on the IPO Price in the
following manners:-
Estimated timeframe
Proposed Actual Unutilised for utilisation
Details of utilisation Utilisation Utilisation Amount upon listing
RM’000 RM’000 RM’000
Process and product development 4,200 3,910 290 Within 48 months#

Repayment of borrowings 13,482 13,482 - Within 12 months
Construction of new D&D centre 6,800 - 6,800 Within 48 months
Capital expenditures 5,200 2,357 2,843 Within 48 months#
Working capital requirements 5,905 5,905 - Within 36 months
Estimated listing expenses 3,500 3,500 - Within 1 month
39,087 29,154 9,933
#
The Board of Directors has approved the extension of timeframe for the utilisation of the remaining
unutilised IPO Proceeds earmarked for “Process and product development” and “Capital expenditures”
for an additional 24 months of up to 48 months from the date of listing.
The utilisation of proceeds as disclosed above should be read in conjunction with the Prospectus of the
Company dated 21 June 2019.
2. Audit and Non-Audit Fees
The total amount of audit fees paid or payable to the external auditors by the Company and Group during the
financial year ended 31 December 2021 were RM17,000 and RM95,145 respectively.
The non-audit fees paid or payable to the external auditors, or a firm or corporation affiliated to the auditors’
firm by the Company during the financial year ended 31 December 2021 were RM2,500. The non-audit fees were
mainly for the review of Statement On Risk Management And Internal Control.
3. Material Contracts
There were no material contracts entered into by the Company and / or its subsidiaries involving the interests
of Directors and major shareholders, which subsisted at the end of the financial year or, if not then subsisting,
entered into since the end of the previous financial year.
4. Recurrent Related Party Transactions
The Company and its subsidiaries did not have any recurrent related party transactions which requires
shareholder’s mandate during FY 2021.
41
ADDITIONAL COMPLIANCE INFORMATION
5. Employees’ Share Option Scheme
The Employees’ Share Option Scheme of the Company (“ESOS” or “Scheme”) was implemented on 28 December
2020 and shall be in force for a duration of ten (10) years.
There is one ESOS in existence during the financial year. The total number of options granted, exercised and
outstanding under the ESOS are set out in the table below:-
Number of Options
(Since commencement of ESOS to 31 December 2021)
All Eligible Employees
Description including Directors Directors
(a) Total options granted 48,905,000 4,463,700
(b) Total options exercised 2,644,000 440,000
(c) Total options cancelled 7,189,400 550,000
(d) Total options outstanding 39,071,600 3,473,700
In accordance with the Company’s ESOS By-Laws, not more than fifty per centum (50%) of the Company’s
ordinary shares available under the Scheme shall be allocated to Directors and senior management of the Group.
Since the commencement of the Scheme up to the financial year ended 31 December 2021, the Company has
granted 2.77% of options to the Directors and senior management.
No option was granted to the Non-Executive Directors.
42
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
INTRODUCTION
Pursuant to Rule 15.26(b) and Guidance Note 11 of the Bursa Malaysia Securities Berhad’s ACE Market Listing
Requirements (“Listing Requirements”) in relation to the requirement to prepare statement about the state of internal
control of the listed issuer as a group, and as guided by the Statement on Risk Management and Internal Control:
Guidelines for Directors of Listed Issuers (“the Guidelines”) and the Malaysian Code on Corporate Governance 2021, the
Board of Directors (“the Board”) of AIMFLEX Berhad (“AIMFLEX” or “the Company”) (collectively with its subsidiaries,
“the Group”) is pleased to present the statement on the state of the internal controls of the Group for the financial year
ended 31 December 2021. The scope of this Statement includes the Company and its operating subsidiaries.
BOARD RESPONSIBILITIES
The Board affirms its overall responsibility for maintaining a sound governance, risk management and internal control
system and for reviewing their adequacy and effectiveness so as to provide assurance on the achievement of the Group’s
mission, vision, core values, strategies and business objectives as well as to safeguard all its stakeholders’ interests
and protecting the Group’s assets. The Board has to establish risk appetite of the Group based on the risk capacity,
strategies, internal and external business context, business nature and corporate lifecycle. The Board is committed to
the establishment and maintenance of an appropriate control environment that is embedded into the corporate culture,
strategies and processes of the Group as well as to articulate the importance of adequate and effective risk management
and internal control system. The Board delegates the duty of identification, assessment and management of key
business risks to the Risk and Sustainability Management Working Group (“RSMWG”), led by Managing Director. The
Audit and Risk Management Committee (“ARMC”), through its terms of reference approved by the Board, is delegated
with the duty to review the adequacy and effectiveness of risk management and internal control system of the Group
and to provide assurance to the Board on the adequacy and effectiveness of the same. Through the ARMC, the Board is
kept informed on all significant risks and control issues brought to the attention of the ARMC by the RSMWG, the Internal
audit function and the external auditors. The Board is provided with reasonable assurance that any impact arising from
foreseeable future events and situations are properly managed and/or mitigated.
The system of internal control covers, inter-alia, control environment, risk assessment, control activities, information
and communication and monitoring activities. However, in view of the limitations that are inherent in any system of
internal control, the system of internal control is designed to manage, rather than to eliminate, the risk of failure to
achieve the Group’s business objectives. Accordingly, the system of internal control can only provide reasonable and not
absolute assurance against material misstatement of losses and fraud.
RISK MANAGEMENT
The Board recognises risk management as an integral part of system of internal control and good management
practice in pursuit of its mission, vision, core value, strategies and business objectives. The Board maintains an on-
going commitment for identifying, evaluating and managing significant risks and opportunities faced by the Group
systematically during the financial year under review. The Board had put in place a formal Group Risk Management
Framework, as the governance structure and processes for the risk management on enterprise wide, in order to embed
the risk management practice into all levels of the Group and to manage key business risks faced by the Group as well
as to optimise key business opportunities available to the Group adequately and effectively as second-line-of-defense.
The duties for the identification, evaluation and management of the key business risks and opportunities are delegated
to the RSMWG which consist of Managing Director, Executive Directors, Key Sustainability and Risk Officer and Heads of
Departments.
The principles, practices and process of Risk Management Policy established by the Board are, in all material aspects,
guided by the ISO 31000:2018 – Risk Management Guidelines.
The Group Risk Management Framework lays down the risk management’s objectives and processes with formalised
governance structure of the risk management activities of the Group as follows:-
The Board
Audit and Risk Management Committee Risk and Sustainability

(Oversight Governance Body) Management Working Group
Internal Audit Function Risk Owners
43
RISK MANAGEMENT Cont’d
Clear roles and responsibilities of the Board, ARMC, RSMWG, Risk Owners and Internal Audit Function are defined in
the Group Risk Management Framework. In particular, the roles and responsibilities of RSMWG in relation to the risk
management are as follows:-
(a) implement the Group Risk Management Framework approved by the Board;
(b) implement the risk management process which includes the identification of key risks and devising appropriate
action plan(s) in cases where existing controls are ineffective, inadequate or non-existence and communicate
methodology to the risk owners;
(c) ensure that risk strategies adopted are aligned with the Group’s organisational strategies. (e.g. vision/ mission,
corporate strategies/goals, etc.), Group Risk Management Framework (including policies and processes),
tolerance, risk appetite;
(d) continuous review and update of the Key Risk Registers (including incorporation new or emerging risks or
integration of business risks from implementation and integration of new strategies and business objectives
into new key risk registers for monitoring) and compilation of Key Risk Profile and Key Risk Report of the Group
due to changes in internal and external business context, business processes, business strategies or external
environment and determination of management action plan, if required;
(e) update the Board, through the ARMC, on changes to the Key Risk Profile on periodical basis (at least on annual
basis) or when appropriate (due to significant change to the internal and external business context) and the
course of action to be taken by management in managing the changes; and
(f) to perform SWOT Analysis for all options of the proposed strategies and business objectives and to monitor and
report to the Board on the progress of the implementation and integration for new project, merger & acquisition
and corporate exercise during the scheduled meetings until it is implemented and integrated completely into the
Group.
In addition, the Risk Owners, within their area of expertise, are delegated with operational responsibilities with the
following roles and responsibilities:-
(a) manage the risks of the business processes under his/her control;
(b) continuously identify risks and evaluate existing controls. If controls deemed ineffective, inadequate or
non- existent, to establish and implement controls to reduce the likelihood and/or impact.
(c) to report to the RSMWG of the emergence of new business risks or change in the existing business risks through
the use of prescribed form on a timely manner and assist the RSMWG.
(d) to assist with the development of the management action plans and implement these action plans;
(e) assist the RSMWG with the yearly update of the changes in the Key Risks Register, management action plans and
the status of these plans;
(f) ensure that staffs working under him/her understand the risk exposure of the relevant process under his/her duty
and the importance of the related controls; and
(g) ensure adequacy of training for staff on risk and opportunity management.
Systematic risk management process is stipulated in the Risk Management Framework, whereby each step of the risk
and opportunity identification, evaluation, control identification, treatment and control activities are laid down for
application by RSMWG and Risk Owners. Risk and opportunity assessment, at gross and residual level, are guided by the
likelihood rating and impact rating established by the Board based on the risk appetite acceptable by the Board. Based
on the risk management process, Key Risk Registers were compiled by RSMWG and Risk Owners, with relevant key risks
and opportunities identified rated based on the agreed upon risk and opportunity rating before reported to the Managing
Director for her review and subsequently reported to the ARMC via the Key Risk Profile. The Key Risk Registers were
primarily used for the identification of high residual risks which is above the risk appetite of the Group that require the
Management and the Board’s immediate attention and risk treatment as well as for future risk monitoring. In addition,
key opportunities identified were registered in relevant Key Risk Registers for the monitoring of implementation of action
plans to ensure its achievement. As an important risks and opportunities monitoring mechanism, the Management
is scheduled to review the Key Risk Registers of key operating subsidiaries and assessment of emerging risks and
opportunities identified at strategic and operational level on annual basis or on more frequent basis if circumstances
required and to report to the ARMC on the results of the review and assessment.
44
RISK MANAGEMENT Cont’d
During the financial year under review, RSMWG conducted a risk assessment exercise whereby existing strategic,
governance, financial, fraud and key operational risks as well as opportunities of the Company and all operating
subsidiaries were assessed and incorporated into the Key Risk Registers for on-going risk and opportunities monitoring.
Key Risk Profile (included but not limited to, Key Risk Registers, existing control activities for risks mitigation and
opportunities optimisation, likelihood and impact rating used and risk management process employed for review
and assessment exercise by the Management) was compiled and tabled to the ARMC for its review and deliberation
on its adequacy and effectiveness and for its reporting the results of review to the Board, which assumes the primary
responsibility of the risk management of the Group.
At strategic level, business plans, business strategies and investment proposals with risks and opportunities
consideration are formulated by the Managing Director and/or Executive Directors and presented to the Board for review
and deliberation to ensure proposed plans and strategies are in line with the Group’s risk appetite. In addition, specific
strategic and key operational risks and opportunities are highlighted and deliberated by the ARMC and/or the Board
during the review of the financial performance of the Group in the scheduled meetings.
As first-line-of-defense, respective Risk Owners are responsible for managing the risks under their responsibilities.
Risk owners are responsible for effective and efficient operational monitoring and management by way of maintaining
effective internal controls and executing risk and control procedures on a day-to-day basis. Changes in the key risks
or emergence of new risks are identified through daily operational management and controls and review of financial
and operational reports by respective level of Management generated by internal management information system
supplemented by external data and information collected. Respective risk owners are responsible to assess the changes
to the existing risks and emergence of new risks and to formulate and implement effective controls to manage the risks.
Material risks are highlighted to the Managing Director for the final decision on the formulation and implementation
of effective internal controls and reported to the ARMC and the Board by the Managing Director and/or the Executive
Directors respectively.
The monitoring of the risk management by the Group is enhanced by the internal audits carried out by the Internal Audit
Function with specific audit objectives and business risks identified for each internal audit cycle based on the internal
plan reviewed by the ARMC.
The above process has been practiced by the Group for the financial year under review and up to the date of approval
of this statement.
Please refer to the “Risk Factors Exposure” of the Management Discussion and Analysis for the significant risks faced by
the Group and the mitigation plans implemented.
INTERNAL CONTROL SYSTEM
The key features of the Group’s internal control system are made up of five core components, i.e. Control Environment,
Risk Assessment, Control Activities, Information and Communication and Monitoring Activities with principles
representing the fundamental concepts associated with each component as follows:-
• Board of Directors/Board Committees
The role, functions, composition, operation and processes of the Board are guided by formal Board Charter
whereby roles and responsibilities of the Board, individual Directors, the Non-Independent Non-Executive
Chairman, the Managing Director and the Management are specified to preserve the independence of the Board
from the Management.
Board Committees (i.e. ARMC, Remuneration Committee and Nomination Committee) are established to carry
out duties delegated by the Board, governed by written terms of reference.
Meetings of Board of Directors and respective Board Committees are carried out on scheduled basis to review the
performance of the Group, from financial and operational perspective. Business plans and business strategies
are proposed by the Managing Director and/or the Executive Directors for the Board’s review and approval, after
taking into risk consideration and responses.
45
INTERNAL CONTROL SYSTEM Cont’d
• Integrity and Ethical Value
The tone from the top on integrity and ethical value are enshrined in formal Code of Conduct approved by the
Board. This formal code forms the foundation of integrity and ethical value of the Group.
Integrity and ethical value expected from the employees are incorporated in the Employees Handbook whereby
the ethical behaviours expected from the employees are stated. Codes of conduct expected from employees to
carry out their duties and responsibilities assigned are also established and formalised in Employees Handbook.
To further enhance the ethical value throughout the Group, formal Anti-Bribery and Corruption Policy had
been put in place by the Board to prevent and manage the bribery risks and conflicts of interest. In addition,
Whistleblower Policy is implemented for all stakeholders to raise genuine concerns about possible improprieties
in matters of unethical behaviour, malpractices, illegal acts or failure to comply with regulatory requirements at
the earliest opportunity.
Code of Conduct is monitored via control activity monitoring mechanism implemented with non-compliances
detected in a timely manner and investigated with appropriate corrective action, including but not limited to
disciplinary actions, taken to rectify non-compliance.
• Organisation Structure, Accountability and Authorisation
The Group has a well-defined organisation structure with clear lines of reporting and accountability with the
Board assuming the oversight roles. The Group is committed to employing suitably qualified staff so that the
appropriate level of authorities and responsibilities can be delegated while accountability of performance and
controls are assigned accordingly to competent staffs to ensure operational efficiency. The establishment and
communication of job responsibilities and accountability of performance and controls for key positions are
further enhanced via the job descriptions established by the Management.
• Performance Measurement
Objectives and Key Results (“OKR”) system is used to monitor the performance of key divisions/ departments
against targets established for prompt management action to be taken for unsatisfactory operational performance
and for reporting to the Managing Director at scheduled interval.
• Succession Planning and Human Resource
It is the Board’s commitment that the Group to identify and satisfy the needs of employees to continuously
develop their knowledge, skills and competency for personal development and corporate excellence. Succession
Plan is to ensure key roles within the Group are supported by competent and caliber second-in-line to reduce the
impact of abrupt departure of key personnel to the minimum possible.
Employees Handbook, Letter of Appointment and Code of Conduct set out general employment terms and
conditions, the tone for control, consciousness and conducts. They are designed to provide guidelines to
employees with the objective of ensuring all employees understand issues and matters during the tenure of their
employment. Together with employees’ job description, the guidelines clearly defined the Group’s values and
policies, Group’s expectation of employees and employees’ expectations towards the Group.
Performance evaluations are carried out for all levels of staff to identify performance gaps for training needs and
talent development. The performance evaluation forms the basis of the incentive and promotion.
• Risk Assessment and Control Activities
Risk assessment (including fraud and bribery risk) is performed by risk owners at scheduled interval or when there
is change in internal and/or business context in accordance with Group Risk Management Framework. Internal
controls, as risk responses, are formulated and put in place to mitigate risks identified to a level acceptable by the
Board, i.e. the risk appetite.
The Group has documented policies and procedures that are regularly reviewed and updated to ensure its
relevance to support the Group’s business activities in achieving the Group’s business objectives.
46
INTERNAL CONTROL SYSTEM Cont’d
• Information and Communication
At operational level, clear reporting lines established across the Group and operation reports are prepared for
dissemination to relevant personnel for effective communication of critical information throughout the Group for
timely decision making and execution in pursuit of the strategies and business objectives. Matters that require
the Board and the Executive Director’s attention are highlighted for review, deliberation and decision making on
a timely basis.
The Group puts in place effective and efficient information and communication infrastructures, communication
channels (i.e. computerised systems, secured intranet, electronic mail system and modern telecommunication)
and processing system, so that operational data and external data can be collected and processed into relevant
and adequate information and communicated timely, reliably and securely to dedicated personnel within the
Group for decision making and for communication with relevant external stakeholders. Apart from that, relevant
financial and management reports are generated for different levels of management and employee for their
review and decision making.
Communication of policies and procedures of the Group are conducted via written format, electronic mail system
and in-house trainings by respective risk or control owners.
• Monitoring and Review
At operational level, monitoring activities are embedded into the policies and procedures established by the
Management with incidents of non-compliance and exceptions noted are escalated to appropriate level of
management. Apart from OKR system put in place to monitor the performance of key divisions/ departments,
periodical management meetings are held to discuss and review financial and operational performance of key
divisions/departments of the Group. The monitoring of compliance with relevant laws and regulations are further
enhanced by review of specific areas of safety, health and environment by independent consultants engaged by
the Group and enforcement agencies.
Apart from the above, quarterly financial statements which contains key financial results is presented to the
Board for their review. Financial performance report is also presented by the Executive Director and Head of
Finance during the Board’s meeting for the Board to assess the financial performance.
In addition to the internal audits, significant control issues highlighted by the External Auditors as part of their
statutory audits and the monitoring of compliance with ISO certification carried out by internal ISO auditors
as well as surveillance audit by independent consultants engaged by the Group serve as the additional line of
defense.
Corrective actions are formulated and implemented for incidents of non-compliance and exceptions reported
with its implementation monitored.
INTERNAL AUDIT FUNCTION Cont’d
The review of the adequacy and effectiveness of the Group’s risk management and internal control system is outsourced
to an independent professional firm, NeedsBridge Advisory Sdn Bhd, who, through the ARMC, provides the Board
with much of the assurance it requires in respect of the adequacy and effectiveness of the Group’s system on the risk
management and internal control.
The outsourced internal audit function is reporting to the ARMC directly and the engagement director, Mr. Pang Nam
Ming, is a Certified Internal Auditor and Certification in Risk Management Assurance accredited by the Institute of
Internal Auditors Global and a professional member of the Institute of Internal Auditors Malaysia. As a Certified Internal
Auditor accredited by Institute of Internal Auditors, the engagement director is required to declare the compliance of the
Standards to Institute of Internal Auditors during his renewal as Certified Internal Auditor. The internal audits are carried
out, in all material aspects, in accordance with the International Professional Practices Framework (“IPPF”), i.e. Mission,
Core Principles for the Professional Practice of Internal Auditing, Code of Ethics and the International Standards for the
Professional Practice of Internal Auditing established by the Institute of Internal Auditors Global.
47
INTERNAL AUDIT FUNCTION
The audit engagement of the outsourced internal audit function is governed by the engagement letter and Internal
Audit Charter approved by the Board during the financial year under review. Key terms of the engagement include
the purpose and scope of works, accountability, independence, outsourced internal audit function’s responsibilities,
Management’s responsibilities, authority accorded to the outsourced internal audit function, limitation of scope of
works, confidentiality, proposed fees and engagement team.
On the other hand, the Internal Audit Charter governs the internal audit function by specifying the purpose and
mission of internal audit function, its roles, professionalism required (including adherence to The Institute of Internal
Auditors’ mandatory guidance including the Core Principles for the Professional Practice of Internal Auditing, Definition
of Internal Auditing, Code of Ethics, and International Standards for the Professional Practice of Internal Auditing
(hereinafter referred to as “Standards”), its authorities, reporting structure, independence and objectivity required,
its responsibilities, purpose of internal audit plan, reporting and monitoring and quality assurance and improvement
programme.
The appointment and resignation of the outsourced internal audit function as well as the proposed audit fees are subject
to review by the ARMC and for its reporting to the Board for ultimate approval. During the financial year under review,
the resources allocated to the fieldworks of the internal audit by the outsourced internal audit function were one (1)
manager and assisted by at least one (1) senior consultant and one (1) consultant per one (1) engagement with oversight
performed by the director.
To preserve the independence and objectivity, the outsourced internal audit function is not permitted to act on behalf
of the Management, decide and implement management action plan, perform on-going internal control monitoring
activities (except for follow up on progress of action plan implementation), authorise and execute transactions,
prepare source documents on transactions, have custody of assets or act in any capacity equivalent to a member of the
Management or the employee.
The outsourced internal audit function is accorded unrestricted access to all functions, records, property, personnel,
ARMC and other specialised services from within or outside the Group and necessary assistance of personnel in units of
the Group where they perform audits.
Based on the review of the terms of engagement of outsourced internal audit function during the financial year, the
ARMC and the Board are satisfied:-
• that the outsourced internal audit function is free from any relationships or conflicts of interest which could
impair their objectivity and independence;
• with the scope of the outsourced internal audit function;
• that the outsourced internal audit function possesses relevant experience, knowledge, competency and authority
to discharge its functions effectively, possesses sufficient resources and has unrestricted access to employees
and information for the internal audit activities; and
• with the internal audit plan.
Risk-based internal audit plan in respect of financial year ended 31 December 2021 was drafted by the outsourced internal
audit function, after taking into consideration the residual risks with potential high impact per the Key Risk Profile of the
Group, the previous internal audits carried out in relation to ISO certification (for Quality Control and Environmental)
and the input by the Management after taking into consideration the existing business context and economic condition.
Such internal audit plan was reviewed and approved by the ARMC prior to execution. Each internal audit cycles within
the internal audit plan are specific with regard to audit objective, key risks to be assessed and scopes of the internal
control review.
As the third-line-of-defense, the internal control review procedures performed by the outsourced internal audit
function are designed to understand, document and evaluate risks and related controls to determine the adequacy and
effectiveness of governance, risk structures, control structures and control processes. Recommendations are formulated
by the outsourced internal audit function based on the root cause(s) of the internal audit observations. The internal
audit procedures applied principally consist of process evaluations through interviews with relevant personnel involved
in the processes under review, review of the Standard Operating Procedures and/or process flows provided as well as
observations of the functioning of processes in compliance with results of interviews and/ or documented Standard
Operating Procedures and/or process flows. Thereafter, testing of controls for the respective audit areas are performed
through review of the samples selected based on sample sizes calculated in accordance with predetermined formulation,
subject to the nature of testing and verification of the samples.
48
INTERNAL AUDIT FUNCTION Cont’d
During the financial year ended 31 December 2021, the outsourced internal audit function conducted reviews for human
resource management and inventory management for the major operating subsidiaries based in Malaysia.
Upon the completion of the individual internal audit fieldwork during the financial year, the internal audit reports were
presented to the ARMC during its scheduled meeting. During the presentation, the internal audit findings, priority level,
risk/potential implication, recommendations, management responses/ action plans, person-in-charge as well as the
date of implementation were presented and deliberated with the members of the ARMC in order for the ARMC to form
an opinion on the adequacy and/or effectiveness of the governance, risk and control of the business processes under
review. Besides, progress follow up was performed by the outsourced internal audit function on the management action
plans that were not implemented in the previous internal audit fieldworks, by way of verification via physical observation
or through verification of sample provided by person-in-charge to substantiate the implementation of the management
action plans. The update on the implementation progress of the management action plans were presented via the
Action Plan Progress Follow Up Report tabled at subsequent ARMC meeting for review and deliberation.
In addition, during the ARMC meeting, the outsourced internal audit function reported its staff strength, qualification,
experience and continuous professional education for the ARMC’s review.
The cost incurred in maintaining the outsourced internal audit function for the financial year ended 31 December 2021
amounted to RM32,000.
ASSURANCE FROM THE MANAGEMENT
In line with the Guidelines, the Board has received reasonable assurance in writing from the Managing Director, Executive
Directors and all Senior Managers, including the Head of Finance, that the Group’s risk management and internal control
system have operated adequately and effectively, in all material aspects, to meet the Group’s objectives during the
financial year under review.
OPINION AND CONCLUSION
Based on the review of the risk management results and process, results of the internal audit activities, monitoring
and review mechanism stipulated above, coupled with the assurance provided by the Management, the Board is of the
opinion that the risk management and internal control system are satisfactory and have not resulted in any material
losses, contingencies or uncertainties that would require disclosure in the Group’s Annual Report. The Board continues
to take pertinent measures to sustain and, where required, to improve the Group’s risk management and internal control
system in meeting the Group’s strategies and business objectives.
The Board is committed towards maintaining an effective risk management and internal control system throughout the
Group and, where necessary, put in place appropriate plans to further enhance the Group’s system of internal control.
Notwithstanding this, the Board will continue to evaluate and manage the significant business risks faced by the Group
in order to meet its business objectives in the current and challenging business environment.
ASSURANCE PROVIDED BY EXTERNAL AUDITORS
Pursuant to Rule 15.23 of the Listing Requirements, the External Auditors have reviewed this Statement on Risk
Management and Internal Control. Their review was performed in accordance with Audit and Assurance Practice Guide
3: Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included
in the Annual Report, issued by the Malaysia Institute of Accountants. Based on their review, nothing has come to their
attention that causes them to believe this Statement is not prepared, in all material aspects, in accordance with the
disclosures required by paragraph 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for
Directors of Public Listed Companies and Practices 10.1 and 10.2 of the Malaysian Code on Corporate Governance 2021
to be set out, nor is factually incorrect.
49
REPORT ON AUDIT & RISK MANAGEMENT COMMITTEE
The Board of Directors is pleased to present the report of the Audit & Risk Management Committee (“ARMC”) for the
financial year ended 31 December 2021 (“FY 2021”).
MEMBERSHIP AND MEETINGS
Members
The present members of the ARMC consists of:-
Law Lee Yen – Chairperson, Independent Non-Executive Director

Professor Dr. Ruzairi Bin Hj Abdul Rahim – Member, Independent Non-Executive Director
Siti Zaleha Binti Sulaiman – Member, Independent Non-Executive Director
The details of the terms of reference of the ARMC are available for reference at www.aimflex.com.my.
Meetings and Attendance
A total of five ARMC meetings were held during the FY 2021. At the invitation of the ARMC, the Executive Directors, External
Auditors and Internal Auditors attended the meetings. The Group’s External Auditors attended one of the meetings where
they were invited to discuss matters related to the statutory audit for the FY 2021. The attendance of each member at
the ARMC meetings are as follows:-
Members Attendance
Law Lee Yen 5/5
Professor Dr. Ruzairi Bin Hj Abdul Rahim 5/5
Siti Zaleha Binti Sulaiman 5/5
SUMMARY OF ACTIVITIES OF THE ARMC DURING THE FINANCIAL YEAR
In line with the ARMC Terms of Reference, the following activities were carried out during the FY 2021 and in respect of
the financial statements for FY 2021:-
1. Reviewed the unaudited quarterly financial statements of the Group, focusing particularly on the financial
reporting and compliance with the disclosure requirements prior to making recommendation to the Board for
consideration and approval;
2. Reviewed the related party transactions entered into by the Group;
3. Reviewed and approved the Internal Audit Plan for FY 2021;
4. Reviewed the Risk Management Framework and Key Risk Report;
5. Reviewed the external auditors’ scope of work and audit planning memorandum;
6. Reviewed the Audited Financial Statements, focusing particularly on any changes in accounting policies and
practices, significant adjustments arising from audit or unusual events, the going concern assumption and
compliance with the accounting standards and other requirements, prior to making recommendation to the
Board for consideration and approval;
7. Considered the re-appointment of the external auditors and make recommendation to the Board for approval;
8. Reviewed the ARMC Report and Statement on Risk Management and Internal Control, prior to making
recommendation to the Board for its approval; and
9. Reported to the Board on significant issues and concerns discussed during the ARMC meetings.
INTERNAL AUDIT FUNCTION AND SUMMARY OF ACTIVITIES
The Board recognises that an internal audit function is essential to ensuring the effectiveness of the Group’s system of
internal control, risk management and overall governance process.
The Group has outsourced the internal audit function to NeedsBridge Advisory Sdn Bhd, an internal audit consulting
firm. The engagement was done during the FY 2019 where the ARMC and Board approved the proposed internal audit
plan for FY2020 and FY 2021 and Risk Management Framework and Key Risk Report.
The Internal Auditors report directly to the ARMC on a periodic basis based on the agreed internal audit plan.
PERFORMANCE OF THE ARMC
The performance of the ARMC was assessed through self-evaluation. The results of the self-assessment were
documented and assessed by the Nomination Committee prior to presentation to the Board for review. During the
FY2021, the Board is satisfied that the ARMC have carried out their duties in accordance with their Terms of Reference.
50
FINANCIAL
STATEMENTS
52 DIRECTORS’ REPORT
57 STATEMENTS OF FINANCIAL POSITION
58 STATEMENTS OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME
59 STATEMENTS OF CHANGES IN EQUITY
61 STATEMENTS OF CASH FLOWS
63 NOTES TO THE FINANCIAL STATEMENTS
115 STATEMENT BY DIRECTORS AND STATUTORY DECLARATION
116 INDEPENDENT AUDITORS’ REPORT

DIRECTORS’ REPORT
The directors have pleasure in presenting their report and the audited financial statements of the Group and of the
Company for the financial year ended 31 December 2021.
CHANGE OF NAME
The Company changed its name from i-Stone Group Berhad to AIMFLEX Berhad, effective on 19 February 2021.
PRINCIPAL ACTIVITIES
The Company is principally engaged in the business of investment holding.
The principal activities of the subsidiaries are described in Note 8 to the financial statements.
FINANCIAL RESULTS
GROUP COMPANY
RM RM
Net profit/(loss) for the financial year 4,728,685 (878,155)
In the opinion of the directors, the financial results of the Group and of the Company during the financial year have not
been substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
No dividend has been paid or declared by the Company since the end of the previous financial year and the directors do
not recommend any dividend for the current financial year.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year, other than disclosed in the
financial statements.
ISSUE OF SHARES AND DEBENTURES
During the financial year, the Company issued 2,644,000 ordinary shares for cash totalling RM565,552 arising from the
exercise of employees’ share options at an exercise price of RM0.2139 per ordinary share.
The new ordinary shares issued during the financial year rank pari-passu in all respects with the existing ordinary shares
of the Company.
There were no other changes in the issued and paid-up share capital of the Company during the financial year.
The Company did not issue any new debentures during the financial year.
OPTIONS GRANTED OVER UNISSUED SHARES
No options were granted to any person to take up unissued shares of the Company during the financial year apart from
the issue of options pursuant to the Employees’ Share Option Scheme (“ESOS”).
At an extraordinary general meeting held on 19 August 2020, the Company’s shareholders approved the establishment
of an ESOS of not more than 15% of the issued share capital of the Company to eligible directors and employees.
52
DIRECTORS’ REPORT
OPTIONS GRANTED OVER UNISSUED SHARES Cont’d
The salient features of the ESOS are, inter alia, as follows:
(i) Each ESOS option entitles the eligible employees to subscribe for such number of ordinary shares in the Company
pursuant to an offer duly accepted by the eligible employees at the exercise price to be determined by the ESOS
Committee at its discretion based on the 5-day volume weighted average market price of the Company’s shares
as quoted in Bursa Securities, immediately prior to the date of offer made by the ESOS Committee with a discount
of not more than 10%, if deemed appropriate.
(ii) The ESOS shall be valid for a duration of ten years from the effective date of implementation of the ESOS.
The options offered to take up unissued ordinary shares and the exercise prices are as follows:
Number of options over ordinary shares

Date of Expiry Exercise At 1.1.2021 Granted Exercised Forfeited At 31.12.2021
offer date price
RM
29.12.2020 28.12.2028 0.2139 33,558,000 - (2,644,000) (5,593,400) 25,320,600

01.09.2021 31.08.2028 0.1755 - 15,347,000 - (1,596,000) 13,751,000
33,558,000 15,347,000 (2,644,000) (7,189,400) 39,071,600
Other terms of the ESOS are disclosed in Note 16 to the financial statements.
DIRECTORS
The directors of the Company who held office during the financial year until the date of this report are as follows:
Tee Sook Sing

Law Lee Yen
Professor Dr. Ruzairi Bin Hj Abdul Rahim
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera
Siti Zaleha Binti Sulaiman
Chuah Chong Ewe (Appointed on 25 January 2022)
Chuah Chong San (Appointed on 25 January 2022)
Emma Yazmeen Yip Binti Mohd Jeffrey Yip (Resigned on 25 January 2022)
(alternate director to Dato’ (Dr.) Ts.
Awang Daud Bin Awang Putera)
Lo Ling (Resigned on 25 January 2022)
DIRECTORS OF THE SUBSIDIARIES
The directors of the Company’s subsidiaries who held office during the financial year until the date of this report,
excluding those who are already listed above are as follows:
Hing Fook Sern

Ong Soo Lid
Chan Kok San (Resigned on 1 March 2022)
53
DIRECTORS’ REPORT
DIRECTORS’ INTEREST
During and at the end of the financial year, the Company was not a party to any arrangement whose object is to enable
the directors to acquire benefits through the acquisition of shares in, or debentures of, the Company or any other body
corporate apart from the issue of the ESOS.
The directors holding office at the end of the financial year and their beneficial interests in the ordinary shares of the
Company and of its related corporations during the financial year ended 31 December 2021 as recorded in the Register of
Directors’ Shareholdings kept by the Company under Section 59 of the Companies Act 2016 in Malaysia were as follows:
Number of ordinary shares

At At
THE COMPANY 1.1.2021 Acquired (Disposed) 31.12.2021
Direct interest
Tee Sook Sing 65,539,100 - (500,000) 65,039,100
Professor Dr. Ruzairi Bin Hj Abdul Rahim 120,800 - - 120,800
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera 354,614,300 - - 354,614,300
SUBSIDIARY
Chan Kok San 61,000,000 - (40,900,000) 20,100,000
Hing Fook Sern - 440,000 (150,000) 290,000
Number of options over ordinary shares

At At
1.1.2021 Granted (Exercised) (Forfeited) 31.12.2021
ESOS
THE COMPANY
Tee Sook Sing 1,540,000 395,000 - - 1,935,000
Emma Yazmeen Yip
Binti Mohd Jeffrey Yip - 330,000 - (330,000) -
Lo Ling - 220,000 - (220,000) -
SUBSIDIARIES
Hing Fook Sern 944,700 517,000 (440,000) - 1,021,700
Ong Soo Lid - 517,000 - - 517,000
By virtue of their interests in the ordinary shares of the Company, Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera and Tee
Sook Sing are also deemed to be interested in the ordinary shares of all the subsidiaries to the extent the Company has
an interest.
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive any benefit (other than
a benefit included in the aggregate amount of remuneration received or due and receivable by directors shown in the
notes to the financial statements or the fixed salary of a full time employee of the Company or of related corporations)
by reason of a contract made by the Company or a related corporation with a director or with a firm of which a director
is a member or with a company in which the director has a substantial financial interest.
DIRECTORS’ REMUNERATION
The details of the directors’ remuneration paid or payable to the directors of the Group and of the Company during the
financial year are disclosed in Note 21 to the financial statements.
54
DIRECTORS’ REPORT
INDEMNIFYING DIRECTORS, OFFICERS AND AUDITORS
The Company maintains a Directors’ and Officers’ Liability Insurance for the purpose of Section 289 of the Companies
Act 2016 in Malaysia, throughout the financial year, which provide appropriate insurance cover for Directors and officers
of the Company. The amount of insurance premium effected for the Directors and officers of the Company during the
financial year was RM 9,461. The Directors and officers shall not be indemnified by such insurance for any deliberate
negligence, fraud, intentional breach of law or breach of trust proven against them. No indemnities have been given or
insurance premiums paid, during or since the end of the financial year, for the auditor of the Group and of the Company.
AUDITORS’ REMUNERATION
The auditors’ remuneration is disclosed in Note 21 to the financial statements.
SUBSIDIARIES
The details of the Company’s subsidiaries are disclosed in Note 8 to the financial statements.
OTHER STATUTORY INFORMATION
(a) Before the financial statements of the Group and of the Company were prepared, the directors took reasonable
steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making
of provision for doubtful debts, and had satisfied themselves that there were no known bad debts to be
written off and that adequate provision had been made for doubtful debts; and
(ii) to ensure that the current assets which were unlikely to realise their values as shown in the accounting
records in the ordinary course of business had been written down to an amount which they might be
expected so to realise.
(b) At the date of this report, the directors are not aware of any circumstances:
(i) which would require the write off of bad debts or render the amount of the provision for doubtful debts in
the financial statements of the Group and of the Company inadequate to any substantial extent; or
(ii) which would render the values attributed to current assets in the financial statements of the Group and of
the Company misleading; or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate; or
(iv) not otherwise dealt with in this report or financial statements of the Group and of the Company which
would render any amount stated in the Group’s and the Company’s financial statements misleading.
(c) At the date of this report, there does not exist:
(i) any charge on the assets of the Group and of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or
(ii) any contingent liability in respect of the Group and of the Company which has arisen since the end of the
financial year.
(d) In the opinion of the directors:
(i) no contingent liability or other liability has become enforceable or is likely to become enforceable within
the period of twelve months after the end of the financial year which will or may affect the ability of the
Group and of the Company to meet its obligations as and when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end
of the financial year and the date of this report which is likely to substantially affect the results of the
operations of the Group and of the Company for the current financial year.
55
DIRECTORS’ REPORT
AUDITORS
The auditors, Messrs RSM Malaysia PLT (converted from a conventional partnership, RSM Malaysia, on 3 January 2022),
have expressed their willingness to continue in office.
Signed on behalf of the Board of Directors in accordance with a resolution of the directors:
TEE SOOK SING
CHUAH CHONG EWE
Johor Bahru
28 April 2022
56
STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021
GROUP COMPANY
2021 2020 2021 2020
Note RM RM RM RM
ASSETS
Non-current assets
Property, plant and equipment 6 23,922,676 22,830,734 481,867 -
Investment property 7 271,467 277,637 - -
Investment in subsidiaries 8 - - 43,858,899 43,054,274
Goodwill 9 855,802 855,802 - -
Deferred tax assets 10 1,973,894 - - -
27,023,839 23,964,173 44,340,766 43,054,274
Current assets
Inventories 11 12,922,982 6,041,559 - -
Trade and other receivables 12 37,345,666 26,726,969 88,305 76,815
Current tax assets - - 30 -
Cash and cash equivalents 13 22,393,862 27,128,062 14,047,717 14,781,326
72,662,510 59,896,590 14,136,052 14,858,141
TOTAL ASSETS 99,686,349 83,860,763 58,476,818 57,912,415
EQUITY AND LIABILITIES

Equity
Share capital 14 55,345,930 54,516,242 55,345,930 54,516,242
Reserves 15 (13,944,313) (14,553,726) 1,982,684 1,442,195
Retained earnings 36,248,078 31,323,970 945,519 1,823,674
TOTAL EQUITY 77,649,695 71,286,486 58,274,133 57,782,111
Non-current liabilities
Lease liabilities 17 113,470 21,704 - -
Deferred tax liabilities 10 928,402 699,391 - -
1,041,872 721,095 - -
Current liabilities
Trade and other payables 18 19,972,373 11,048,816 202,685 130,212
Lease liabilities 17 111,015 84,159 - -
Current tax liabilities 911,394 720,207 - 92
20,994,782 11,853,182 202,685 130,304
TOTAL LIABILITIES 22,036,654 12,574,277 202,685 130,304
TOTAL EQUITY AND LIABILITIES 99,686,349 83,860,763 58,476,818 57,912,415
The annexed notes form an integral part of the financial statements.
57
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021
GROUP COMPANY
2021 2020 2021 2020
Note RM RM RM RM
REVENUE 19 75,746,062 66,965,838 - -
COST OF SALES (56,296,382) (46,738,975) - -
GROSS PROFIT 19,449,680 20,226,863 - -
OTHER OPERATING INCOME 949,159 1,270,480 253,280 419,758
SELLING AND DISTRIBUTION COSTS (1,540,609) (673,154) - -
ADMINISTRATIVE EXPENSES (13,906,668) (11,446,634) (1,121,162) -
OTHER OPERATING EXPENSES (106,460) (148,117) (10,263) (659,844)
RESULTS FROM OPERATING ACTIVITIES 4,845,102 9,229,438 (878,145) (240,086)
FINANCE COSTS 20 (605) (74,144) - -
PROFIT/(LOSS) BEFORE TAXATION 21 4,844,497 9,155,294 (878,145) (240,086)
TAXATION 22 (115,812) (1,537,497) (10) (95)
NET PROFIT/(LOSS) FOR

THE FINANCIAL YEAR 4,728,685 7,617,797 (878,155) (240,181)
OTHER COMPREHENSIVE INCOME/

(EXPENSE)
Item that will be reclassified
subsequently to profit or loss:
Exchange translation differences of
foreign operations 68,924 (3,053) - -
TOTAL COMPREHENSIVE INCOME/

(EXPENSE) ATTRIBUTABLE TO THE
OWNERS OF THE COMPANY 4,797,609 7,614,744 (878,155) (240,181)
EARNINGS PER SHARE

- Basic (sen) 24 0.39 0.62
- Diluted (sen) 24 0.39 0.62

58
Attributable to owners of the Company
Non-distributable
Share Merger Share options Translation Retained Total
capital reserve reserve reserve earnings equity
GROUP RM RM RM RM RM RM
Balance as at 1 January 2020 54,516,242 (16,628,339) - 635,471 26,759,866 65,283,240

AIMFLEX BERHAD
Net profit for the financial year - - - - 7,617,797 7,617,797

Other comprehensive expense
for the financial year - - - (3,053) - (3,053)
Total comprehensive (expense)/income
for the financial year - - - (3,053) 7,617,797 7,614,744
Transactions with owners:

Dividend (Note 25) - - - - (3,053,693) (3,053,693)
STATEMENTS OF CHANGES IN EQUITY
Share options granted under ESOS (Note 16) - - 1,442,195 - - 1,442,195

- - 1,442,195 - (3,053,693) (1,611,498)
59
Balance as at 31 December 2020 54,516,242 (16,628,339) 1,442,195 632,418 31,323,970 71,286,486
Balance as at 31 December 2020/1 January 2021 54,516,242 (16,628,339) 1,442,195 632,418 31,323,970 71,286,486
Net profit for the financial year - - - - 4,728,685 4,728,685

Other comprehensive income for the financial year - - - 68,924 - 68,924
Total comprehensive income for the financial year - - - 68,924 4,728,685 4,797,609

Share options granted under ESOS (Note 16) - - 1,000,048 - - 1,000,048
Share options forfeited (Note 16) - - (195,423) - 195,423 -
Exercise of ESOS (Note 16) 829,688 - (264,136) - - 565,552
829,688 - 540,489 - 195,423 1,565,600
Balance as at 31 December 2021 55,345,930 (16,628,339) 1,982,684 701,342 36,248,078 77,649,695

ANNUAL REPORT 2021
STATEMENTS OF CHANGES IN EQUITY

Share
Share options Retained Total
capital reserve earnings equity
COMPANY RM RM RM RM
Balance as at 1 January 2020 54,516,242 - 5,117,548 59,633,790
Net loss and total comprehensive expense

for the financial year - - (240,181) (240,181)

Dividend (Note 25) - - (3,053,693) (3,053,693)
Share options granted under ESOS (Note 16) - 1,442,195 - 1,442,195
- 1,442,195 (3,053,693) (1,611,498)
Balance as at 31 December 2020/1 January 2021 54,516,242 1,442,195 1,823,674 57,782,111
Net loss and total comprehensive expense

for the financial year - - (878,155) (878,155)

Share options granted under ESOS (Note 16) - 1,000,048 - 1,000,048
Share options forfeited (Note 16) - (195,423) - (195,423)
Exercise of ESOS (Note 16) 829,688 (264,136) - 565,552
829,688 540,489 - 1,370,177
Balance as at 31 December 2021 55,345,930 1,982,684 945,519 58,274,133
60
STATEMENTS OF CASH FLOWS

GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) before taxation 4,844,497 9,155,294 (878,145) (240,086)
Adjustments for:
Depreciation of
- investment properties 6,170 6,170 - -
- property, plant and equipment 1,546,904 1,313,504 74,133 -
- right-of-use assets 228,439 200,260 - -
Dividend income (296,926) (538,995) (251,479) (417,860)
Gain on disposal of property, plant and equipment (160,727) (69,372) - -
Impairment loss on trade receivables 473,961 17,351 - -
Interest expense 605 69,954 - -
Interest income (26,024) (74,941) (1,382) (1,898)
Property, plant and equipment written off 26,107 35,965 - -
Provision for warranty 10,606 41,721 - -
Rental rebate - (13,417) - -
Rental income (27,200) (28,200) - -
Reversal of impairment loss on trade receivables (17,351) - - -
Share-based payments for ESOS 1,000,048 1,442,195 - -
Unrealised gain on foreign exchange (64,650) (24,969) - -
Operating profit/(loss) before

working capital changes 7,544,459 11,532,520 (1,056,873) (659,844)
Increase in inventories (6,881,423) (553,841) - -

Increase in trade and other receivables (10,995,236) (1,697,696) (11,490) (28,644)
Increase/(Decrease) in trade and other payables 8,897,541 (99,171) 72,473 63,629
Cash (used in)/generated from operations (1,434,659) 9,181,812 (995,890) (624,859)
Interest paid (605) (69,954) - -

Interest received 26,024 74,941 1,382 1,898
Tax paid (1,670,270) (1,245,944) (132) (9,380)
Tax refunded - 192,268 - -
Net cash (used in)/generated from

operating activities (3,079,510) 8,133,123 (994,640) (632,341)
61
STATEMENTS OF CASH FLOWS CONT’D

GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
CASH FLOWS FROM INVESTING ACTIVITIES
Dividend income 296,926 538,995 251,479 417,860

Increase in fixed deposits
pledged with licensed banks (18,612) (64,560) - -
Proceeds from disposal of property,
plant and equipment 267,001 191,957 - -
Purchase of property, plant and equipment (2,768,845) (1,232,396) (556,000) -
Rental received 27,200 28,200 - -
Repayment by subsidiaries - - - 1,460,000
Net cash (used in)/generated from

investing activities (2,196,330) (537,804) (304,521) 1,877,860
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid - (3,053,693) - (3,053,693)

Issuance of shares 565,552 - 565,552 -
Repayment of lease liabilities (111,375) (1,615,230) - -
Net cash generated from/

(used in) financing activities 454,177 (4,668,923) 565,552 (3,053,693)
NET (DECREASE)/INCREASE IN CASH

AND CASH EQUIVALENTS (4,821,663) 2,926,396 (733,609) (1,808,174)
EFFECT OF FOREIGN EXCHANGE DIFFERENCES 68,851 (3,309) - -
CASH AND CASH EQUIVALENTS

BROUGHT FORWARD 26,063,502 23,140,415 14,781,326 16,589,500
CASH AND CASH EQUIVALENTS

CARRIED FORWARD (NOTE 13) 21,310,690 26,063,502 14,047,717 14,781,326
62
NOTES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2021
1. PRINCIPAL ACTIVITIES
The Company is principally engaged in the business of investment holding.
The principal activities of the subsidiaries are set out in Note 8 to the financial statements.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the Group and of the Company have been prepared in accordance with applicable
approved Malaysian Financial Reporting Standards (“MFRSs”) issued by the Malaysian Accounting Standards
Board (“MASB”), International Financial Reporting Standards and the requirements of the Companies Act 2016 in
Malaysia.
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of accounting
The financial statements of the Group and of the Company have been prepared under the historical cost
convention unless otherwise stated in the financial statements.
The preparation of financial statements requires the directors to make estimates and assumptions that
affect the reported amount of assets, liabilities, revenue and expenses and disclosure of contingent assets
and liabilities. In addition, the directors are also required to exercise their judgement in the process of
applying the accounting policies. The areas involving such judgements, estimates and assumptions are
disclosed in Note 5. Although these estimates and assumptions are based on the directors’ best knowledge
of events and actions, actual results could differ from those estimates.
(b) Basis of consolidation
(i) Subsidiaries
A subsidiary is an entity controlled by the Group, i.e. the Group is exposed, or has rights, to variable
returns from its involvement with the entity and has the ability to affect those returns through its
current ability to direct the entity’s relevant activities (power over the investee).
The existence and effect of potential voting rights that the Group has the practical ability to exercise
(i.e. substantive rights) are considered when assessing whether the Group controls another entity.
The Group’s financial statements incorporate the results, cash flows, assets and liabilities of AIMFLEX
Berhad and all of its directly and indirectly controlled subsidiaries. Subsidiaries are consolidated
from the effective date of acquisition, which is the date on which the Group effectively obtains
control of the acquired business, until that control ceases.
The non-controlling interests in the net assets and net results of consolidated subsidiaries are
shown separately in the consolidated statement of financial position and consolidated statement
of profit or loss, and consolidated statement of comprehensive income.
Total comprehensive income (i.e. profit or loss and each component of other comprehensive
income) is attributed to the owners of the parent and to the non-controlling interests even if this
results in the non-controlling interests having a deficit balance.
Changes in the Group’s ownership interest in a subsidiary that do not result in the Group losing
control are accounted for as transactions with owners in their capacity as owners (i.e. equity
transactions). The carrying amounts of the Group and non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsidiary. Any difference between the amount
by which the non-controlling interests are adjusted and the fair value of the consideration paid or
received is recognised directly in equity and attributed to the owners of the parent.
63

31 DECEMBER 2021
3. SIGNIFICANT ACCOUNTING POLICIES Cont’d
(b) Basis of consolidation Cont’d
(i) Subsidiaries Cont’d
Upon loss of control of a subsidiary, the Group’s profit or loss is calculated as the difference
between (i) the fair value of the consideration received and of any investment retained in the former
subsidiary and (ii) the previous carrying amount of the assets (including any goodwill) and liabilities
of the subsidiary and any non-controlling interests.
Investment in subsidiaries is measured in the Company’s statement of financial position at cost less
any impairment losses, unless the investment is classified as held for sale or distribution.
(ii) Translation of financial statements of foreign entities
The assets and liabilities of foreign operations are translated into RM using exchange rates at the
reporting date. The components of shareholders’ equity are stated at historical value.
Average exchange rates for the period are used to translate income and expense items of foreign
operations. However, if exchange rates fluctuate significantly, the exchange rates at the dates of the
transactions are used.
All resulting exchange differences are recognised in other comprehensive income and accumulated
in currency translation reserve, a separate component of equity.
Any goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated
as assets and liabilities of that foreign operation and, as such, translated at the closing rate.
On the disposal of a foreign operation, all of the exchange differences accumulated in equity in
respect of that operation attributable to the owners of the parent company are reclassified to profit
or loss. The cumulative amount of the exchange differences relating to that foreign operation that
had been attributed to the non-controlling interests are derecognised, but without reclassification
to profit or loss. The same applies in case of loss of control, joint control or significant influence.
On the partial disposal without loss of control of a subsidiary that includes a foreign operation,
the proportionate share of exchange differences accumulated in the separate component of equity
are re-attributed to non-controlling interests (they are not recognised in profit or loss). For any
other partial disposal of foreign entity (i.e. associates or jointly controlled entities without loss
of significant influence or joint control), the proportionate share of the accumulated exchange
differences is reclassified to profit or loss.
(iii) Business combinations
The results of subsidiaries are presented as if the merger had been effected throughout the current
and previous financial years. The assets and liabilities combined are accounted for based on the
carrying amounts from the perspective of the common control shareholder at the date of transfer.
On consolidation, the cost of the merger is cancelled with the values of the shares received. Any
resulting credit differences is classified as equity and regarded as a non-distributable reserve. Any
resulting debit difference is adjusted against any suitable reserve. Any other reserves which are
attributable to share capital of the merged entities, to the extent that they have not been capitalised
by a debit difference, are reclassified and presented as movement in other capital reserves.
Under the merger method of accounting, the financial statements of the subsidiaries are included
in the consolidated financial statements as if the business combination had occurred from the
earliest date presented and that the Group has operated as a single economic entity throughout the
financial years presented in the consolidated financial statements.
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(b) Basis of consolidation Cont’d
(iii) Business combinations Cont’d
The Group applies the acquisition method to account for acquired businesses, whereby the
identifiable assets acquired and the liabilities assumed are measured at their acquisition-date fair
values (with few exceptions as required by MFRS 3 Business Combinations).
The consideration transferred in a business combination is measured at fair value, which is

calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, the
liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued
by the Group.
Acquisition-related costs (e.g. finder’s fees, consulting fees, administrative costs, etc.) are recognised
as expenses in the periods in which the costs are incurred and the services are received.
On acquisition date, goodwill is measured as the excess of the aggregate of consideration

transferred, any non-controlling interests in the acquiree, and acquisition-date fair value of the
Group’s previously held equity interest in the acquiree (if business combination achieved in stages)
over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed.
If, after appropriate reassessment, the amount as calculated above is negative, it is recognised
immediately in profit or loss as a bargain purchase gain.
At acquisition date, non-controlling interests in the acquiree that are present ownership interests
and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation
are measured at either fair value or the present ownership instruments’ proportionate share in
the recognised amounts of the acquiree’s identifiable net assets. This choice of measurement is
made separately for each business combination. Other components of non-controlling interests are
measured at their acquisition-date fair values, unless otherwise required by MFRS.
The acquisition-date fair value of any contingent consideration is recognised as part of the
consideration transferred by the Group in exchange for the acquiree. Changes in the fair value of
contingent consideration that result from additional information obtained during the measurement
period (maximum one year from the acquisition date) about facts and circumstances that existed
at the acquisition date are adjusted retrospectively against goodwill. Other changes resulting from
events after the acquisition date are adjusted at each reporting date, only when the contingent
consideration is classified as an asset or a liability, and the adjustment is recognised in profit or loss.
In a business combination achieved in stages, the Group remeasures its previously held equity
interest in the acquiree at its acquisition-date fair value and any resulting gain or loss is recognised
in profit or loss. If any, changes in the value of the Group’s equity interest in the acquiree that have
been previously recognised in other comprehensive income are reclassified to profit or loss, if
appropriate had that interest been disposed of directly.
(iv) Transactions eliminated on consolidation
All intragroup transactions, balances, income and expenses are eliminated in full on consolidation.
Unrealised gains arising from transactions with equity-accounted associates and joint ventures are
eliminated against the investment to the extent of the Group’s interest in the investees. Unrealised
losses are eliminated in the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
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(c) Financial instruments
(i) Initial recognition and measurement
The Group and the Company recognise a financial asset or a financial liability (including derivative
instruments) in the statement of financial position when, and only when, an entity in the Group and
the Company become a party to the contractual provisions of the instruments.
If a contract is a host financial liability or a non-financial host contract that contains an embedded
derivative, the Group and the Company assess whether the embedded derivative shall be separated
from the host contract on the basis of the economic characteristics and risks of the embedded
derivative and the host contract at the date when the Group and the Company become a party to
the contract. If the embedded derivative is not closely related to the host contract, it is separated
from the host contract and accounted for as a stand-alone derivative. The Group and the Company
do not make a subsequent reassessment of the contract unless there is a change in the terms of the
contract that significantly modifies the expected cash flows or when there is a reclassification of a
financial liability out of the fair value through profit or loss category. Embedded derivatives in host
financial assets are not separated.
On initial recognition, all financial assets (including intra-group loans and advances) and financial
liabilities (including intra-group payables and government loans at below market interest rates)
are measured at fair value plus transaction costs if the financial asset or financial liability is not
measured at fair value through profit or loss. For instruments measured at fair value through profit
or loss, transaction costs are expensed to profit or loss when incurred.
(ii) Derecognition of financial instruments
For derecognition purposes, the Group and the Company first determine whether a financial asset
or a financial liability should be derecognised in its entirety as a single item or derecognised part-
by-part of a single item or of a group of similar items.
A financial asset, whether as a single item or as a part, is derecognised when, and only when, the
contractual rights to receive the cash flows from the financial asset expire, or when the Group and
the Company transfer the contractual rights to receive cash flows of the financial asset, including
circumstances when the Group and the Company act only as a collecting agent of the transferee,
and retain no significant risks and rewards of ownership of the financial asset or no continuing
involvement in the control of the financial asset transferred.
A financial liability is derecognised when, and only when, it is legally extinguished, which is either
when the obligation specified in the contract is discharged or cancelled or expires. A substantial
modification of the terms of an existing financial liability is accounted for as an extinguishment of
the original financial liability and the recognition of a new financial liability. For this purpose, the
Group and the Company consider a modification as substantial if the present value of the revised
cash flows of the modified terms discounted at the original effective interest rate is different by 10%
or more when compared with the carrying amount of the original liability.
(iii) Financial assets
For the purpose of subsequent measurement, the Group and the Company classify financial
assets into three measurement categories, namely: (i) financial assets at amortised cost (“AC”);
(ii) financial assets at fair value through other comprehensive income (“FVOCI”) and (iii) financial
assets at fair value through profit or loss (“FVPL”). The classification is based on the Group’s and the
Company’s business model objective for managing the financial assets and the contractual cash
flow characteristics of the financial instruments.
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(c) Financial instruments Cont’d
(iii) Financial assets Cont’d
After initial recognition, the Group and the Company measure financial assets, as follows:
(i) Financial assets at AC
A financial asset is measured at amortised cost if: (a) it is held within the Group’s and the
Company’s business objective to hold the asset only to collect contractual cash flows, and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest in principal outstanding.
(ii) Financial assets at FVOCI
A financial asset is measured at FVOCI if: (a) it is held within the Group’s and the Company’s
business objective to hold the asset both to collect contractual cash flows and selling the
financial asset, and (b) the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest in principal outstanding.
(iii) Financial assets at FVPL
A financial asset is measured at FVPL if it is an equity investment, held for trading (including
derivative assets) or if it does not meet any of the condition specified for the AC or FVOCI
model.
Other than financial assets measured at fair value through profit or loss, all other financial assets
are subject to review for impairment in accordance with Note 3(c)(vii) to the financial statements.
(iv) Financial liabilities
After initial recognition, the Group and the Company measure all financial liabilities at amortised
cost using the effective interest method, except for:
(i) Financial liabilities at fair value through profit or loss (including derivatives that are liabilities)
are measured at fair value.
(ii) Financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or when the continuing involvement approach applies. Paragraph 3.2.15 and
3.2.17 of MFRS 9 apply to the measurement of such financial liabilities.
(iii) Financial guarantee contracts issued, and commitments to provide loans at a below-market
interest rate given, by the Group and the Company are measured at the higher of: (a) the
amount of impairment loss determined and (b) the amount initially recognised less, when
appropriate, the cumulative of income recognised in accordance with the principles in MFRS
15 Revenue from Contracts with Customers.
(v) Fair value measurement
The fair value of a financial asset or a financial liability is determined by reference to the quoted
market price in an active market, and in the absence of an observable market price, by a valuation
technique as described in Note 3(v) to the financial statements.
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(c) Financial instruments Cont’d
(vi) Recognition of gains and losses
Fair value changes of financial assets and financial liabilities classified as at fair value through
profit or loss are recognised in profit or loss when they arise.
For financial assets mandatorily measured at FVOCI, interest income (calculated using the
effective interest rate method), impairment losses, and exchange gains or losses are recognised
in profit or loss. All other gains or losses are recognised in other comprehensive income and
retained in a fair value reserve. On derecognition of the financial assets, the cumulative gain or loss
recognised in OCI is reclassified to profit or loss as a reclassification adjustment.
For financial assets and financial liabilities carried at amortised cost, interest income and interest
expense are recognised in profit or loss using the effective interest method. A gain or loss is
recognised in profit or loss only when the financial asset or financial liability is derecognised or
impaired and through the amortisation process of the instrument.
(vii) Impairment of financial assets
The Group and the Company apply the expected credit loss (“ECL”) model of MFRS 9 to recognise
impairment losses of financial assets measured at amortised cost or at fair value through other
comprehensive income. Except for trade receivables, a 12-month ECL is recognised in profit or loss
on the date of origination or purchase of the financial assets. At the end of each reporting period,
the Group and the Company assess whether there has been a significant increase in credit risk of a
financial asset since its initial recognition or at the end of the prior period. Other than for financial
assets which are considered to be of low risk grade, a lifetime ECL is recognised if there has been a
significant increase in credit risk since initial recognition. For trade receivables, the Group and the
Company have availed the exception to the 12-month ECL requirement to recognise only lifetime
ECL.
The assessment of whether credit risk has increased significantly is based on quantitative and
qualitative information that include financial evaluation of the creditworthiness of the debtors or
issuers of the instruments, ageing of receivables, defaults and past due amounts, past experiences
with the debtors, current conditions and reasonable forecast of future economic conditions. For
operational simplifications: (a) a 12-month ECL is maintained for financial assets which investment
grades that are considered as low credit risk, irrespective of whether credit risk has increased
significantly or not; and (b) credit risk is considered to have increased significantly if payments are
more than 30 days past due if no other borrower-specific information is available without undue
cost or effort.
The ECL is measured using an unbiased and probability-weighted amount that is determined by
evaluating a range of possible outcomes, discounted for the time value of money and applying
reasonable and supportable information that is available without undue cost or effort at the
reporting date about past events, current conditions, and forecast of future economic conditions.
The ECL for a financial asset (when assessed individually) or a group of financial assets (when
assessed collectively) is measured at the present value of the probability-weighted expected
cash shortfalls over life of the financial asset or group of financial assets. When a financial asset
is determined as credit-impaired (based on objective evidence of impairment), the lifetime ECL is
determined individually.
For trade receivable, the lifetime ECL is determined at the end of each reporting period using a
provision matrix. For each significant receivable, individual lifetime ECL is assessed separately. For
significant receivables which are not impaired and for all other receivables, they are grouped into risk
classes by type of customers and businesses, and the ageing of the receivables. Collective lifetime
ECLs are determined using past loss rates, which are updated for effects of current conditions and
reasonable forecasts for future economic conditions. In the event that the economic or industry
outlook is expected to worsen, the past loss rates are increased to reflect the worsening economic
conditions.
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(d) Property, plant and equipment
On initial recognition, items of property, plant and equipment are recognised at cost, which includes the
purchase price as well as any costs directly attributable in bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management, and the cost of
dismantling and removing the items and restoring the site on which they are located. The cost of self-
constructed assets also includes the cost of materials and direct labour. Cost also may include transfers
from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property,
plant and equipment.
After initial recognition, items of property, plant and equipment are carried at cost less any accumulated
depreciation and any accumulated impairment losses.
When significant parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
The cost of replacing a component of an item of property, plant and equipment is recognised in the
carrying amount of the item if it is probable that the future economic benefits embodied within the
component will flow to the Group or the Company, and its cost can be measured reliably. The carrying
amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day servicing
of property, plant and equipment are recognised in profit or loss as incurred.
Significant components of individual assets are assessed, and if a component has a useful life that is
different from the remainder of that asset, then that component is depreciated separately.
Depreciation is calculated so as to write off the cost of the assets, less their estimated residual values, over
their useful economic lives as follows:
Buildings 2%
Furniture and equipment 10 - 20%
Motor vehicles 20%
Plant and machinery 10%
Renovation 10%
Useful lives, residual values and depreciation methods are reviewed, and adjusted if appropriate, at
the end of each reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
(e) Leases
i. Definition of a lease
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Group assesses whether:
• the contract involves the use of an identified asset – this may be specified explicitly or
implicitly, and should be physically distinct or represent substantially all of the capacity of a
physically distinct asset. If the supplier has a substantive substitution right, then the asset is
not identified;
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(e) Leases Cont’d
i. Definition of a lease Cont’d
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Group assesses whether: Cont’d
• the customer has the right to obtain substantially all of the economic benefits from use of
the asset throughout the period of use; and
• the customer has the right to direct the use of the asset. The customer has this right when it
has the decision-making rights that are most relevant to changing how and for what purpose
the asset is used. In rare cases where the decision about how and for what purpose the asset
is used is predetermined, the customer has the right to direct the use of the asset if either the
customer has the right to operate the asset; or the customer designed the asset in a way that
predetermines how and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Group allocates
the consideration in the contract to each lease and non-lease component on the basis of their
relative stand-alone prices. However, for leases of properties in which the Group is a lessee, it has
elected not to separate non-lease components and will instead account for the lease and non-lease
components as a single lease component.
ii. Recognition and initial measurement
1. As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the respective Group entities’ incremental borrowing
rate. Generally, the Group entities use their incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments less any incentive receivable;
• variable lease payments that depend on an index or a rate, initially measured using
the index or rate at the commencement date;
• amounts expected to be payable under a residual value guarantee;
• the exercise price under a purchase option that the Group is reasonably certain to
exercise; and
• penalties for early termination of a lease unless the Group is reasonably certain not to
terminate early.
The Group excludes variable lease payments that linked to future performance or usage of
the underlying asset from the lease liability. Instead, these payments are recognised in profit
of loss in the period in which the performance or use occurs.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets. The Group
recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
The Group presents the right-of-use assets in ‘property, plant and equipment’ in the
statements of financial position.
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(e) Leases Cont’d
ii. Recognition and initial measurement Cont’d
2. As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a
finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental to ownership of the underlying asset. If
this is the case, then the lease is a finance lease; if not, then it is an operating lease.
If an arrangement contains lease and non-lease components, the Group applies MFRS 15 to
allocate the consideration in the contract based on the stand-alone selling prices.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and
the sublease separately. It assesses the lease classification of a sublease with reference to
the right-of-use asset arising from the head lease, not with reference to the underlying asset.
If a head lease is a short-term lease to which the Group applies the exemption described
above, then it classifies the sublease as an operating lease.
iii. Subsequent measurement
1. As a lessee
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. The estimated useful lives of right-of-use asset are determined on the
same basis as those of property, plant and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The depreciation period for the current and comparative periods are as follows:
Buildings 24 to 36 months
Leasehold land 50 years
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in
an index or rate, if there is a revision of in-substance fixed lease payments, or if there is a
change in the Group’s estimate of the amount expected to be payable under a residual value
guarantee, or if the Group changes its assessment of whether it will exercise a purchase,
extension or termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
2. As a lessor
The Group recognises lease payments received under operating leases as income on straight-
line basis over the lease term as part of “revenue”.
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(f) Inventories
Inventories are measured at the lower of cost and net realisable value (which is the estimated selling price
less costs to complete and sell). Cost comprises purchase price and directly attributable costs of bringing
the inventories to their present location and condition. For manufactured goods, cost includes conversion
costs of labour and variable and fixed production overheads. Cost is determined on a first-in first-out
(“FIFO”) basis.
Net realisable value is determined on an item-by-item basis or on group of similar items basis.
(g) Investment properties
i. Investment properties carried at cost
Investment properties are properties are held to earn rental income or for capital appreciation or
both, but not for sale in the ordinary course of business, use in the production or supply of goods or
services or for administrative purposes.
Investment properties are measured initially at cost, including transaction costs. The cost comprises
the purchase price and any directly attributable expenditure (e.g. professional fees for legal services,
property transfer taxes).
Subsequently, investment properties are carried at cost less any accumulated depreciation and any
accumulated impairment losses.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value,
over its useful economic life as follows:
Buildings 2%
Useful lives, residual values and depreciation methods are reviewed, and adjusted if appropriate,
at the end of each reporting period, with the effect of any changes in estimate being accounted for
on a prospective basis.
An investment property is derecognised upon disposal or when the investment property is

permanently withdrawn from use and no future economic benefits are expected from the disposal.
Any gain or loss arising on derecognition of the property (calculated as the difference between the
net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period
in which the property is derecognised.
ii. Reclassification to/from investment property
When an item of property, plant and equipment is transferred to investment property following a
change in its use, any difference arising at the date of transfer between the carrying amount of the
item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation
of property, plant and equipment. However, if a fair value gain reverses a previous impairment
loss, the gain is recognised in profit or loss. Upon disposal of an investment property, any surplus
previously recorded in equity is transferred to retained earnings; the transfer is not made through
profit or loss.
When the use of a property changes such that it is reclassified as property, plant and equipment or
inventories, its fair value at the date of reclassification becomes its cost for subsequent accounting.
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(h) Intangible assets
Goodwill
Goodwill arising in a business combination is initially measured at its cost, being the excess of the sum
of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair
value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-
date amounts of the identifiable assets acquired and the liabilities assumed.
After initial recognition, goodwill acquired in a business combination is measured at cost less any
accumulated impairment losses. Goodwill is not amortised.
(i) Impairment of non-financial assets
(i) Impairment of property, plant and equipment
The carrying amounts of such assets are reviewed at each reporting date for indications of
impairment and where an asset is impaired, it is written down as an expense through profit or loss
to its estimated recoverable amount. Recoverable amount is the higher of value in use and the fair
value less costs to sell of the individual asset or the cash-generating unit. The recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. If this is the case, recoverable amount
is determined for the cash-generating unit to which the asset belongs.
Value in use is the present value of the estimated future cash flows of that unit. Present values are
computed using pre-tax discount rates that reflect the time value of money and the risks specific to
the unit which impairment is being measured.
Impairment losses for cash-generating units are allocated first against the goodwill of the unit and
then pro rata amongst the other assets of the unit.
Subsequent increases in the recoverable amount caused by changes in estimates are credited to
profit or loss to the extent that they reverse the impairment.
(ii) Impairment of goodwill
Irrespective of whether there is any indication of impairment, such assets are tested for impairment
annually, or more frequently if events or changes in circumstances indicate that it might be impaired.
For the purpose of impairment testing, goodwill is allocated to each cash-generating unit, or
groups of cash-generating units that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the acquire were assigned to those units or
groups of units. Each unit or group of units to which the goodwill is so allocated represent the
lowest level within the entity at which the goodwill is monitored for internal management purposes
and is not larger than an operating segment.
Goodwill impairment is not reversed in any circumstances.
(j) Contract assets/contract liabilities
A contract asset is recognised when the Group’s right to consideration is conditional on something other
than the passage of time. A contract asset is subject to impairment in accordance to MFRS 9 Financial
Instruments (see note 3(c)(vii)) to the financial statements.
A contract liability is stated at cost and represents the obligation of the Group to transfer goods or services
to a customer for which consideration has been received (or the amount is due) from the customers.
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(k) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the statements of cash flows presentation purposes, cash and cash equivalents also includes bank
overdrafts, which are shown within borrowings in current liabilities on the statements of financial position.
(l) Equity
(i) Share capital
Ordinary shares issued that carry no mandatory contractual obligation to deliver cash or another
financial asset or to exchange financial assets or financial liabilities with another entity under
conditions that are potentially unfavourable to the Company, is classified as equity instruments.
When ordinary shares and other equity instruments are issued in a public offering or in a rights issue
to existing shareholders, they are recorded at the issue price.
When ordinary shares and other equity instruments are issued as consideration transferred in a
business combination or as settlement of an existing financial liability, they are measured at fair
value at a date of the exchange transaction.
Transaction costs of an equity transaction are accounted for as a deduction from retained profits in
equity, net of any related income tax benefit.
(ii) Dividend distribution
The Company establishes a distribution policy whereby cash dividends can only be paid out of
retained earnings. Other distributions, such as stock dividends and distribution in specie, may
be paid out of any reserve to the extent that the utilisation is permitted by company laws and
regulations.
Distributions to holders of an equity instrument are debited directly in equity, net of any related
income tax benefit.
A dividend declared is recognised as a liability only after it has been appropriately authorised, which
is the date when the Board of Directors declares an interim dividend, or in the case of a proposed
final dividend, the date the shareholders of the Company approves the proposed final dividend in
an annual general meeting of shareholders. For a distribution of non-cash assets to owners, the
Company measures the dividend payable at the fair value of the assets to be distributed.
(m) Foreign currency transactions
Transactions denominated in foreign currencies are translated and recorded at the rates of exchange
prevailing at the respective dates of transactions. At the end of each reporting period, foreign currency
monetary assets and liabilities are retranslated into the functional currency using the exchange rates at
the reporting date (i.e. the closing rate).
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
at the exchange rate at the date of the transaction (i.e. historical rate). Non-monetary items that are
measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value is determined.
Gains and losses arising from changes in exchange rates after the date of the transaction are recognised
in profit or loss (except for loans and advances that form part of the net investment in a foreign operation
and transactions entered into in order to hedge foreign currency risks of net investments in foreign
operations).
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(m) Foreign currency transactions Cont’d
For loans and advances that form part of the net investment in a foreign operation, exchange differences
are recognised in profit or loss in the separate financial statements of the Company and/or the individual
financial statements of the foreign operation. In the consolidated financial statements that include the
foreign operation, the gain or loss recognised in profit or loss in the separate and/or individual financial
statements is reversed and recognised in the consolidated other comprehensive income and accumulated
in an exchange translation reserve.
(n) Employees’ benefits
(i) Short-term benefit
Wages, salaries, bonuses and social security (“SOCSO”) contributions and employment insurance
system (“EIS”) contributions are recognised as an expense in the period in which the associated
services are rendered by employees of the Group and of the Company. Short term accumulating
compensated absence such as paid annual leave are recognised when services are rendered by
employees and short term non-accumulating compensated absences such as sick leave are
recognised when the absences occur.
(ii) Defined contribution plan
As required by law, companies in Malaysia make contributions to the Employees Provident Fund
(“EPF”). The contributions are recognised as a liability after deducting any contribution already
paid and as an expense in profit or loss in the period in which the employee render their services.
Once the contributions have been paid, the Group and the Company have no further payment
obligations.
(o) Share-based payments for Employees’ Share Option Scheme (“ESOS”)
Share-based payments of the Group are equity-settled share options granted to employees, for which an
option pricing model is used to estimate the fair value at grant date. That fair value is charged on a straight-
line basis as an expense in the profit or loss over the period that the employee becomes unconditionally
entitled to the options (vesting period), with a corresponding increase in equity.
The number of such options is adjusted annually to reflect best estimates of those expected to vest
(ignoring purely market based conditions) with consequent changes to the expense. Equity is also
increased by the proceeds receivable, as and when employees choose to exercise their options.
If the Group modifies the terms and conditions on which the equity instruments were granted, as a
minimum, the services received measured at the grant date fair value of the equity instruments granted
(unless those equity instruments do not vest because of failure to satisfy a vesting condition other than a
market condition) are charged to the profit or loss.
Cancellations of grants of equity instruments during the vesting period (other than a grant cancelled by
forfeiture when the vesting conditions are not satisfied) are accounted for as an acceleration of vesting,
therefore the unrecognised remaining amount is recognised immediately in profit or loss.
(p) Provisions
Where, at reporting date, the Group has a present obligation (legal or constructive) as a result of a past
event and it is probable that the Group will settle the obligation, a provision is made in the statement of
financial position. Provisions are made using best estimates of the amount required to settle the obligation
and are discounted to present values using a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the obligation. Changes in estimates are reflected in profit
or loss in the period they arise.
75

31 DECEMBER 2021
(p) Provisions Cont’d
Any reimbursement attributable to a recognised provision from a counter-party (such as an insurer)

is not off-set against the provision but recognised separately as an asset when, and only when, the
reimbursement is virtually certain.
Warranties
A provision for warranties is recognised when the underlying products or services are sold. Warranty
provisions are measured using probability models based on past experience.
(q) Revenue and other income
Revenue is recognised when or as a performance obligation in the contract with customer is satisfied,
i.e. when the “control” of the goods or services underlying the particular performance obligation is
transferred to the customer.
A performance obligation is a promise to transfer a distinct goods or service (or a series of distinct goods
or services that are substantially the same and that have the same pattern of transfer) to the customer
that is explicitly stated in the contract.
The Group measures revenue from a sale of goods or a service transaction at the fair value of the
consideration received or receivables, which is usually the invoice price, net of a trade discounts
and volume rebates given to the customer. For a contract with separate performance obligations, the
transaction price is allocated to the separate performance obligations on the relative stand-alone selling
price basis.
The control of the promised goods or services may be transferred over time or at a point in time. The
control over the goods or services is transferred over time and revenue is recognised over time if:
• the customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs; or
• the Group’s performance creates or enhances an asset that the customer controls as the asset is
created or enhanced; or
• the Group’s performance does not create an asset with an alternative use and the Group has an
enforceable right to payment for performance completed to date.
Revenue for performance obligation that is not satisfied over time is recognised at a point in time at which
the customer obtains control of the promised goods or services.
(i) Goods and services rendered
Revenue from a sale of goods is recognised at a point in time when control of the goods is passed
to the customer, which is the point in time when the significant risks and rewards are transferred
to the customer and the transaction has met the probability of inflows and measurement reliability
requirements of MFRS 15.
Revenue from services rendered is recognised in profit or loss when the services are performed, and
is measured at the fair value of the consideration receivable.
(ii) Interest income
Interest income is recognised on an accrual basis using the effective interest method.
76

31 DECEMBER 2021
(q) Revenue and other income Cont’d
(iii) Rental income
Rental income from investment property is recognised in profit and loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease. Rental income from investment and subleased properties are
recognised as other income.
(iv) Dividend income
Dividend income from investment is recognised when the right to receive dividend payment is
established.
(r) Borrowing costs
Interest on borrowings to finance the purchase and development of a self-constructed qualifying asset
(i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) is
included in the cost of the asset until such time as the assets are substantially ready for use or sale. Such
borrowing costs are capitalised net of any investment income earned on the temporary investment of
funds that are surplus pending such expenditure.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when
expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are
necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing
costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset
for its intended use or sale are interrupted or completed.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(s) Income taxes
Tax currently payable is calculated using the tax rates in force or substantively enacted at the reporting
date. Taxable profit differs from accounting profit either because some income and expenses are never
taxable or deductible, or because the time pattern that they are taxable or deductible differs between tax
law and their accounting treatment.
Using the statement of financial position liability method, deferred tax is recognised in respect of all
temporary differences between the carrying value of assets and liabilities in the statement of financial
position and the corresponding tax base, with the exception of goodwill not deductible for tax purposes
and temporary differences arising on initial recognition of assets and liabilities that do not affect taxable
or accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted
by the reporting date.
Deferred tax assets are recognised only to the extent that the Group and the Company consider that it is
probable (i.e. more likely than not) that there will be sufficient taxable profits available for the asset to be
utilised within the same tax jurisdiction.
Unused tax credits do not include unabsorbed reinvestment allowances and unabsorbed investment tax
allowances because the Group and the Company treat these as part of initial recognition differences.
77

31 DECEMBER 2021
(s) Income taxes Cont’d
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset current
tax assets against current tax liabilities, they relate to the same tax authority and the Group’s and the
Company’s intention is to settle the amounts on a net basis.
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss,
except if it arises from transactions or events that are recognised in other comprehensive income or
directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity,
respectively. Where tax arises from the initial accounting for a business combination, it is included in the
accounting for the business combination.
Since the Group and the Company are able to control the timing of the reversal of the temporary difference
associated with interests in subsidiaries, associates and joint arrangements, a deferred tax liability is
recognised only when it is probable that the temporary difference will reverse in the foreseeable future
mainly because of a dividend distribution.
At present, no provision is made for the additional tax that would be payable if the subsidiaries in certain
countries remitted their profits because such remittances are not probable, as the Group and the Company
intend to retain the funds to finance organic growth locally. As far as joint arrangements and associates
are concerned, the Group and the Company are not in a position to determine their dividend policies. As
a result, all significant deferred tax liabilities for all such taxable temporary differences are recognised.
(t) Earnings per share
The Group presents basic and diluted earnings per share data for its ordinary shares (“EPS”).
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding during the financial year for the effects of all
dilutive potential ordinary shares.
(u) Operating segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. All operating segments’ operating results are reviewed regularly by
the Chief Operating Decision Maker, which in this case is the Managing Director of the Group, to make
decisions about resources to be allocated to the segment and to assess its performance, and for which
discrete financial information is available.
(v) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. When measuring the fair value of an
asset or a liability, the Group and the Company use market observable data to the extent possible. If
the fair value of an asset or a liability is not directly observable, it is estimated by the Group and by the
Company (working closely with external qualified valuers) using valuation techniques that maximise the
use of relevant observable inputs and minimise the use of unobservable inputs (e.g. by use of the market
comparable approach that reflects recent transaction prices for similar items, discounted cash flow
analysis, or option pricing models refined to reflect the issuer’s specific circumstances). Inputs used are
consistent with the characteristics of the asset/liability that market participants would take into account.
78

31 DECEMBER 2021
(v) Fair value measurement Cont’d
Fair values are categorised into different levels in a fair value hierarchy based on the degree to which the
inputs to the measurement are observable and the significance of the inputs to the fair value measurement
in its entirety:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for
the asset or liability that are not based on observable market data (unobservable inputs).
Transfers between levels of the fair value hierarchy are recognised by the Group and by the Company at
the end of the reporting period during which the change occurred.
4. ADOPTION OF MFRSs, AMENDMENTS TO MFRSs AND INTERPRETATIONS
4.1 Amendments to MFRSs adopted
For the preparation of the financial statements, the following amendments to the MFRSs frameworks
issued by the MASB are mandatory for the first time for the financial periods beginning on or after 1
January 2021:
• Amendments to MFRS 9 Financial Instruments, MFRS 139 Financial Instruments: Recognition and
Measurement, MFRS 7 Financial Instruments: Disclosure, MFRS 4 Insurance Contracts and MFRS 16
Leases – Interest Rate Benchmark Reform Phase 2
During the financial year, the Group has early adopted the Amendment to MFRS 16 Leases – COVID-19-
Related Rent Concessions beyond 30 June 2021.
The adoption of the above-mentioned amendments to MFRSs has no significant impact on the financial
statements of the Group and of the Company.
4.2 Amendments to MFRSs not adopted
The following are amendments to the MFRSs frameworks that have been issued by the MASB up to the
date of the issuance of the Group’s and of the Company’s financial statements but have not been adopted
by the Group and by the Company:
Amendments to MFRSs effective for annual periods beginning on or after 1 January 2022
• Amendments to MFRS 3 Business Combinations – Reference to the Conceptual Framework

• Amendments to MFRS 116 Property, Plant and Equipment − Proceeds before Intended Use
• Amendments to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets – Onerous
Contracts−Cost of Fulfilling a Contract
• Annual Improvements to MFRS Standards 2018−2020
Amendments to MFRSs effective for annual periods beginning on or after 1 January 2023
• Amendments to MFRS 101 Presentation of Financial Statements – Classification of Liabilities as

Current or Non-current
• Amendments to MFRS 101 Presentation of Financial Statements – Disclosure of Accounting Policies
• Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors –
Definition of Accounting Estimates
• Amendments to MFRS 112 Income Taxes – Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
79

31 DECEMBER 2021
4. ADOPTION OF MFRSs, AMENDMENTS TO MFRSs AND INTERPRETATIONS Cont’d
4.2 Amendments to MFRSs not adopted Cont’d
Amendments to MFRSs which effective date yet to be confirmed
Amendments to MFRS 10 Consolidated Financial Statements and MFRS 128 Investment in Associates and
Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
The directors anticipate that the above-mentioned amendments will be adopted by the Group and by the
Company when they become effective.
MFRS 17 Insurance Contracts, Amendments to MFRS 17 Insurance Contracts, and Amendment to MFRS
17 Insurance Contracts – Initial Application of MFRS 17 and MFRS 9 Financial Instruments – Comparative
Information are not applicable to the Group and the Company.
5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
In preparing its financial statements, the Group and the Company have made significant judgements, estimates
and assumptions that impact on the carrying value of certain assets and liabilities, income and expenses as well
as other information reported in the notes. The Group and the Company periodically monitor such estimates
and assumptions and makes sure they incorporate all relevant information available at the date when financial
statements are prepared. However, this does not prevent actual figures differing from estimates.
The judgements made in the process of applying the Group’s and the Company’s accounting policies that
have the most significant effect on the amounts recognised in the financial statements, and the estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are addressed below.
(a) Depreciation of property, plant and equipment, right-of-use assets and investment properties
The cost of an item of property, plant and equipment, right-of-use assets and investment properties
are depreciated on a straight-line method or another systematic method that reflects the consumption
of the economic benefits of the asset over its useful life. Estimates are applied in the selection of the
depreciation method, the useful lives and the residual values. The actual consumption of the economic
benefits of the property, plant and equipment, right-of-use asset and investment properties may differ
from the estimates applied.
(b) Loss allowances of financial assets
The Group and the Company recognise impairment losses for trade receivables under the expected credit
loss model. Individually significant trade receivables are tested for impairment separately by estimating
the cash flows expected to be recoverable. All others are grouped into credit risk classes and tested for
impairment collectively, using the Group’s and the Company’s past experience of loss statistics, ageing
of past due amounts and current economic trends. The actual eventual losses may be different from the
allowance made and this may affect the Group’s and the Company’s financial positions and results.
(c) Determining the value in use
The Group allocates goodwill to cash-generating units for the purpose of impairment testing. In
determining the value-in-use of a cash-generating unit, management uses reasonable and supportable
inputs about sales, cost of sales and other expenses based upon past experience, current events, the
impact of the coronavirus (COVID-19) pandemic and reasonably possible future developments. Cash
flows are projected based on those inputs and discounted at an appropriate discount rate. The actual
outcome or event may not coincide with the inputs or assumptions and the discount rate applied in the
measurement, and this may have a significant effect on the Group’s financial position and results.
80

31 DECEMBER 2021
5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS Cont’d
(d) Share-based payments for Employees’ Share Option Scheme (“ESOS”)
Share-based payments are measured at grant date fair value. For share options granted to employees,
in many cases market prices are not available and therefore the fair value of the options granted shall be
estimated by applying an option pricing model. Option pricing model need input data such as expected
volatility of the share price, expected dividends or the risk-free interest rate for the life of the option.
The overall objective is to approximate the expectations that would be reflected in a current market or
negotiated exchange price for the option. Such assumptions are subject to judgements and may turn out
to be significantly different than expected.
Fair value determined at the grant date of equity-settled share-based payments is expensed on a straight-
line basis over the vesting period, based on the Group’s and the Company’s estimate of equity instruments
that will eventually vest. The estimate of the number of equity instruments expected to vest is revised
by the Group and by the Company at the end of each reporting period through settlement. Revisions of
the original estimates, if any, is recognised in profit or loss so that the cumulative expense includes the
revised estimate, with the corresponding adjustment to the reserve for employee equity-settled benefits.
(e) Income tax and deferred tax estimation
Management judgement is required in determining the provision for income taxes, deferred tax assets and
liabilities and the extent to which deferred tax assets can be recognised. There are certain transactions
and computations for which the ultimate tax determination may be different from the initial estimate.
The Group and the Company recognise tax liabilities based on its understanding of the prevailing tax
laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final
outcome of these matters is different from the amounts that were initially recognised, such difference
will impact the income tax and deferred tax provision in the period in which such determination is made.
Recognition of deferred tax assets and liabilities involves making a series of assumptions. As far as deferred
tax assets are concerned, their realisation ultimately depends on taxable profits being available in the
future. Deferred tax assets are recognised only when it is probable that taxable profits will be available
against which the deferred tax asset can be utilised and it is probable that the entity will earn sufficient
taxable profit in future periods to benefit from a reduction in tax payments. This involves the Group and
the Company making assumptions within its overall tax-planning activities and periodically reassessing
them in order to reflect changed circumstances as well as tax regulations. Moreover, the measurement
of a deferred tax asset or liability reflects the manner in which the entity expects to recover the asset’s
carrying value or settle the liability.
81
6. PROPERTY, PLANT AND EQUIPMENT
Furniture
Leasehold and Motor Plant and
land Buildings equipment vehicles machinery Renovation Total
GROUP RM RM RM RM RM RM RM
2021
At cost
31 DECEMBER 2021
AIMFLEX BERHAD
Own use
As at 1.1.2021 - 11,293,022 2,957,540 1,922,037 4,167,402 1,947,318 22,287,319
Additions - - 774,450 556,000 1,374,060 64,335 2,768,845
Disposals - - (94,196) (632,675) - - (726,871)
Written off - - (205,715) - (19,062) (9,200) (233,977)
Effect of movements in exchange rates - - 3,605 - - 761 4,366
As at 31.12.2021 - 11,293,022 3,435,684 1,845,362 5,522,400 2,003,214 24,099,682
Right-of-use
82
As at 1.1.2021 5,833,111 224,417 - - - - 6,057,528
Additions - 307,608 - - - - 307,608
Derecognition - (228,747) - - - - (228,747)
Effect of movements in exchange rates - 4,264 - - - - 4,264
As at 31.12.2021 5,833,111 307,542 - - - - 6,140,653

ANNUAL REPORT 2021
6. PROPERTY, PLANT AND EQUIPMENT Cont’d
Furniture
2021
Accumulated depreciation
31 DECEMBER 2021
AIMFLEX BERHAD
Own use
As at 1.1.2021 - 602,177 1,099,314 1,076,649 1,982,029 394,681 5,154,850
Charge for the financial year - 225,860 431,276 306,134 384,690 198,944 1,546,904
Disposals - - (4,710) (615,887) - - (620,597)
Written off - - (194,148) - (11,345) (2,377) (207,870)
Effect of movements in exchange rates - - 3,164 - - 145 3,309
As at 31.12.2021 - 828,037 1,334,896 766,896 2,355,374 591,393 5,876,596
Right-of-use
83
As at 1.1.2021 236,884 122,379 - - - - 359,263
Charge for the financial year 118,442 109,997 - - - - 228,439
Derecognition - (149,174) - - - - (149,174)
Effect of movements in exchange rates - 2,535 - - - - 2,535
As at 31.12.2021 355,326 85,737 - - - - 441,063

ANNUAL REPORT 2021
Furniture
2020
At cost
31 DECEMBER 2021
AIMFLEX BERHAD
Own use
As at 1.1.2020 - 11,293,022 2,856,416 875,497 2,196,167 1,766,391 18,987,493
Additions - - 221,588 613,895 216,000 180,913 1,232,396
Disposals - - - (538,261) - - (538,261)
Written off - (120,697) - (30,491) - (151,188)
Transfer from right-of-use - - - 970,906 1,785,726 - 2,756,632
Effect of movements in exchange rates - - 233 - - 14 247
As at 31.12.2020 - 11,293,022 2,957,540 1,922,037 4,167,402 1,947,318 22,287,319

84
Right-of-use
As at 1.1.2020 5,833,111 224,417 - 970,906 1,785,726 - 8,814,160
Transfer to own use - - - (970,906) (1,785,726) - (2,756,632)
As at 31.12.2020 5,833,111 224,417 - - - - 6,057,528

ANNUAL REPORT 2021
Furniture
2020
31 DECEMBER 2021
AIMFLEX BERHAD
Own use
As at 1.1.2020 - 376,318 847,346 728,164 1,362,213 202,818 3,516,859
Charge for the financial year - 225,859 348,061 198,241 349,470 191,873 1,313,504
Disposals - - - (415,676) - - (415,676)
Written off - - (96,278) - (18,945) - (115,223)
Transfer from right-of-use - - - 565,920 289,291 - 855,211
Effect of movements in exchange rates - - 185 - - (10) 175
As at 31.12.2020 - 602,177 1,099,314 1,076,649 1,982,029 394,681 5,154,850

85
Right-of-use
As at 1.1.2020 118,440 40,804 - 565,920 289,291 - 1,014,455
Charge for the financial year 118,444 81,816 - - - - 200,260
Transfer to own use - - - (565,920) (289,291) - (855,211)
Effect of movements in exchange rates - (241) - - - - (241)
As at 31.12.2020 236,884 122,379 - - - - 359,263

ANNUAL REPORT 2021
Furniture
Net carrying amount
31 DECEMBER 2021
As at 31.12.2021
AIMFLEX BERHAD
Own use - 10,464,985 2,100,788 1,078,466 3,167,026 1,411,821 18,223,086
Right-of-use 5,477,785 221,805 - - - - 5,699,590
5,477,785 10,686,790 2,100,788 1,078,466 3,167,026 1,411,821 23,922,676
As at 31.12.2020
Own use - 10,690,845 1,858,226 845,388 2,185,373 1,552,637 17,132,469

86
Right-of-use 5,596,227 102,038 - - - - 5,698,265
5,596,227 10,792,883 1,858,226 845,388 2,185,373 1,552,637 22,830,734

ANNUAL REPORT 2021

31 DECEMBER 2021
COMPANY
Motor
vehicle
RM
Cost
As at 1.1.2021 -
Addition 556,000
As at 31.12.2021 556,000
As at 1.1.2021 -
Charge for the financial year 74,133
As at 31.12.2021 74,133
Net carrying amount

As at 31.12.2021 481,867
The following property, plant and equipment and right-of-use assets stated at net carrying amount are charged
to a licensed bank for banking facilities granted to the Group:
GROUP
2021 2020
RM RM
Leasehold land 5,164,975 5,276,650

Building 8,895,268 9,085,202
14,060,243 14,361,852
The Group has not utilised the facilities at the end of the reporting period.
7. INVESTMENT PROPERTY
GROUP
2021 2020
RM RM
Cost
As at 1 January/31 December 308,485 308,485
As at 1 January 30,848 24,678
Charge for the financial year 6,170 6,170
As at 31 December 37,018 30,848
271,467 277,637
87

31 DECEMBER 2021
7. INVESTMENT PROPERTY Cont’d
Investment property comprises building that is leased to a third party. The lease contains an initial non-cancellable
period of 2 years. Subsequent renewals are negotiated with the lessee annually. No contingent rents are charged.
GROUP
2021 2020
RM RM
Rental income 24,000 24,000

Direct operating expenses
- income generating investment properties 10,052 10,027
The fair value of investment property is RM350,000 (2020: RM350,000). The directors have used the desktop
valuations provided by external, independent property valuers, having appropriate recognised professional
qualifications and recent experience in the location and category of properties being valued, to estimate the fair
value of the investment property.
Fair value of investment property is categorised as Level 3 as described in Note 3 (v) to the financial statements.
8. INVESTMENT IN SUBSIDIARIES
COMPANY
2021 2020
RM RM
Unquoted shares, at cost

As at 1 January/31 December 41,612,079 41,612,079
Equity contributions in respect of share-based

payment employee expenses
As at 1 January 1,442,195 -
Additions 1,000,048 1,442,195
Forfeited (195,423) -
2,246,820 1,442,195
As at 31 December 43,858,899 43,054,274
The details of the subsidiaries are as follows:
Place of Effective
Name of subsidiaries incorporation equity interest Principal activities
2021 2020
% %
Subsidiary of the Company
AIMFLEX Technology Sdn. Bhd. Malaysia 100 100 Investment holding company
Subsidiaries of AIMFLEX
Technology Sdn. Bhd.
Bizit Systems (M) Sdn. Bhd. Malaysia 100 100 Distribution of statistical analysis software,
wireless communication devices and
robotic arms
AIMFLEX Engineering Sdn. Bhd. Malaysia 100 100 Design and fabrication of precision parts
88

31 DECEMBER 2021
8. INVESTMENT IN SUBSIDIARIES Cont’d
The details of the subsidiaries are as follows: Cont’d
Place of Effective
Name of subsidiaries incorporation equity interest Principal activities
2021 2020
% %
Subsidiaries of AIMFLEX
Technology Sdn. Bhd. Cont’d
AIMFLEX Solutions Sdn. Bhd. Malaysia 100 100 Design, development, manufacturing and
integration of modules and components in
relation to Industry 4.0
AIMFLEX Systems Sdn. Bhd. Malaysia 100 100 Manufacturing and modification of
specialised automation machines,
provision of maintenance and technical
support services and supply of spare parts
AIMFLEX Metal Sdn. Bhd. Malaysia 100 100 Design and fabrication of metal panels and
frames
Bizit Systems And Solutions Singapore 100 100 Retail sale of computer hardware (including
Pte. Ltd. * handheld computers) and peripheral
equipment, and computer software
(except games and cybersecurity hardware
and software) (software sales, marketing
and training) and development of other
software and programming activities
AIMFLEX Singapore Singapore 100 100 Sales of specialised automation machines
Pte. Ltd. *
* Not audited by RSM Malaysia PLT.
9. GOODWILL
GROUP
2021 2020
RM RM
Cost
As at 1 January/31 December 2,067,965 2,067,965
Accumulated impairment loss

As at 1 January/31 December (1,212,163) (1,212,163)
855,802 855,802
On an annual basis, the Group undertakes an impairment testing on goodwill. No impairment loss was identified
on the carrying amount of goodwill assessed at the reporting date as its amounts were above its carrying amounts.
Recoverable amount based on value in use
The recoverable amounts of cash-generating units are determined based on value in use calculations. These
calculations use pre-tax cash flow projections that have been projected to perpetuity based on a 5 years financial
budgets and projections prepared by the management and approved by the Board of Directors. The projected
cash flows of cash-generating units were determined based on past business performance, management’s
expectations on market development and the impact of the COVID-19 pandemic. The discount rate used of 10%
(2020: 9%) is a pre-tax rate that is applied to the cash flow projections and represents the industry’s estimated
weighted average cost of capital used.
89

31 DECEMBER 2021
10. DEFERRED TAX ASSETS/(LIABILITIES)
GROUP
As at Recognised in As at
1.1.2021 profit or loss 31.12.2021
2021 RM RM RM
Deferred tax liabilities:

Property, plant and equipment (699,391) (229,011) (928,402)
Deferred tax assets:

Contract liabilities and others - 1,973,894 1,973,894
(699,391) 1,744,883 1,045,492
GROUP
As at Recognised in As at
1.1.2020 profit or loss 31.12.2020
2020 RM RM RM
Deferred tax liabilities:

Property, plant and equipment (650,973) (48,418) (699,391)
11. INVENTORIES
GROUP
2021 2020
RM RM
At cost
Raw materials 1,497,797 740,866
Work-in-progress 10,682,678 4,356,214
Finished goods 38,684 9,715
Trading goods 703,823 934,764
12,922,982 6,041,559
Inventories recognised as cost of sales 56,228,160 46,677,693
90

31 DECEMBER 2021
12. TRADE AND OTHER RECEIVABLES
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Trade
Third parties 36,324,837 25,533,091 - -
Less: Loss allowance (473,961) (17,351) - -
35,850,876 25,515,740 - -
Non-trade
Other receivables 1,046,748 585,823 87,305 24,410
Deposits 144,972 180,963 1,000 1,000
Prepayments 303,070 444,443 - 51,405
1,494,790 1,211,229 88,305 76,815
37,345,666 26,726,969 88,305 76,815
Total trade and other receivables

(excluding prepayments) 37,042,596 26,282,526 88,305 25,410
Add: Cash and bank balances (Note 13) 7,337,191 7,113,502 274,218 581,326
Add: Fixed deposits placed with
a licensed bank (Note 13) 1,083,172 1,064,560 - -
Add: Short-term investments (Note 13) 13,973,499 18,950,000 13,773,499 14,200,000
Total financial assets carried at
amortised costs 59,436,458 53,410,588 14,136,022 14,806,736
(a) The trade amounts due from third parties are subject to normal trade terms between 30 days to 120 days
(2020: 30 days to 120 days).
(b) The movements in loss allowances are as follows:
GROUP
2021 2020
RM RM
As at 1 January 17,351 -
Loss allowances recognised in profit or loss
- Reversal of impairment losses over-provided
in prior financial years (17,351) -
- Individual impairment losses 473,961 17,351
As at 31 December 473,961 17,351
(c) Included in other receivables are retentions sum amounting to RM48,932 (2020: RM370,405) relating to
goods delivered. Retentions sum are unsecured, interest free and expected to be collectable within 1 year.
91

31 DECEMBER 2021
13. CASH AND CASH EQUIVALENTS
The components of cash and cash equivalents consist of
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Cash and bank balances 7,337,191 7,113,502 274,218 581,326

Fixed deposits placed with a licensed bank 1,083,172 1,064,560 - -
Short-term investments 13,973,499 18,950,000 13,773,499 14,200,000
22,393,862 27,128,062 14,047,717 14,781,326

Less : Fixed deposits pledged with
a licensed bank (1,083,172) (1,064,560) - -
Balance for Statements of Cash Flow

purposes as at 31 December 21,310,690 26,063,502 14,047,717 14,781,326
(a) The fixed deposits placed with a licensed bank have maturity period of 365 days (2020: 365 days). The
effective interest rates of the fixed deposits is 1.75% (2020: 1.75%) per annum.
(b) The fixed deposits placed with a licenced bank have been pledged as security for banking facilities
amounting to RM3,000,000 (2020: RM3,000,000) granted to the Group. The Group has not utilised the
facilities at the end of the reporting period.
(c) Short-term investments represent the funds invested in money market instruments and thus have
minimum exposure to changes in market value. There is no maturity period for money market funds
as these monies are callable on demand. The money market funds were carried at fair value. The fair
value hierarchy for money market funds is classified as Level 1 as described in Note 3 (v) to the financial
statements.
14. SHARE CAPITAL
GROUP AND COMPANY

2021 2020
Amount Amount
RM No. of shares RM No. of shares
Issued and fully paid

As at 1 January 54,516,242 1,221,477,200 54,516,242 1,221,477,200
Issued for cash under ESOS 565,552 2,644,000 - -
Transfer from share options reserve 264,136 - - -
As at 31 December 55,345,930 1,224,121,200 54,516,242 1,221,477,200
During the financial year, the Company issued 2,644,000 ordinary shares for cash totalling RM565,552 arising from
the exercise of employees’ share options at an exercise price of RM0.2139 per ordinary share.
92

31 DECEMBER 2021
15. RESERVES
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Merger reserve (16,628,339) (16,628,339) - -

Share options reserve 1,982,684 1,442,195 1,982,684 1,442,195
Translation reserve 701,342 632,418 - -
(13,944,313) (14,553,726) 1,982,684 1,442,195
Merger reserve
The merger reserve arises from the difference between the nominal value of shares issued by the Company and
the nominal value of shares of the subsidiaries acquired under the merger method of accounting.
Share options reserve
The share options reserve comprises the cumulative value of employee services received for the issue of share
options. When the option is exercised, the amount from the share option reserve is transferred to share capital.
When the share options expire, the amount from the share option reserve is transferred to retained earnings.
Share option is disclosed in Note 16 to the financial statements.
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations.
16. SHARE-BASED PAYMENTS FOR ESOS
Share option programme (equity settled)
On 29 December 2020, the Group granted the share options to eligible directors and employees to purchase
shares in the Company under the ESOS approved by the shareholders of the Company. In accordance with these
programmes, holders of vested options are entitled to purchase shares at the market price of the shares at the
date of grant.
The terms and conditions related to the grants of the share option programmes are as follows; all options are to
be settled by physical delivery of shares:
Grant date/ employee Number of Vesting conditions Contractual

entitled options life of options
Tranche 1, option granted to eligible directors 13,605,000 No vesting conditions 8 years
and employees of the Group on 29 December
2020
Tranche 2, option granted to eligible directors 19,953,000 2 years of service 8 years
and employees of the Group on 29 December
2020
Tranche 3, option granted to eligible directors 15,347,000 2 years of service 7 years
and employees of the Group on 1 September
2021
Total share options 48,905,000
93

31 DECEMBER 2021
16. SHARE-BASED PAYMENTS FOR ESOS Cont’d
Share option programme (equity settled) Cont’d
The number and weighted average exercise price of share options are as follows:
2021 2020
Weighted Weighted
average Number of average Number of
exercise price options exercise price options
Outstanding as at 1 January RM0.2139 33,558,000 - -

Granted during the year RM0.1755 15,347,000 RM0.2139 33,558,000
Exercised during the year RM0.2139 (2,644,000) - -
Forfeited during the year RM0.2054 (7,189,400) - -
Outstanding as at 31 December RM0.2004 39,071,600 RM0.2139 33,558,000
Exercisable as at 31 December RM0.2139 9,163,000 RM0.2139 13,605,000
The options outstanding as at 31 December 2021 have an exercise price in the range of RM0.1755 to RM0.2139
(2020: RM0.2139) and a weighted average contractual life of 7.5 years (2020: 8 years).
During the financial year, 2,644,000 share options were exercised at RM0.2139 (2020: no options exercised) per
ordinary share.
The fair value of services received in return for share options granted is based on the fair value of share options
granted, measured using a binomial option pricing model, with the following inputs:
Fair value of share options and assumptions 2021 2020
Fair value per option at grant date RM0.0842 RM0.0999
Weighted average share price RM0.1755 RM0.2139

Share price at grant date RM0.1750 RM0.2150
Expected volatility (weighted average volatility) 51.78% 44.72%
Option life (expected weighted average life) 7 years 8 years
Expected dividends 1.16% 1.16%
Risk–free interest rate (based on Malaysian government bonds) 2.89% 2.46%
Value of employee services received for issue of share options:
GROUP
2021 2020
RM RM
Share options granted in the financial year and total expenses

recognised as share-based payments 1,000,048 1,442,195
94

31 DECEMBER 2021
17. LEASE LIABILITIES
GROUP
2021 2020
RM RM
Future lease payment payable:

- payable within one (1) year 116,580 87,541
- later than one (1) year and not later than five (5) years 115,825 21,885
232,405 109,426
Less: Future interest charges (7,920) (3,563)
224,485 105,863
Repayable as follows:
Current
- not later than one (1) year 111,015 84,159
Non-current
- later than one (1) year and not later than five (5) years 113,470 21,704
224,485 105,863
The lease liabilities of the Group at the end of the reporting period bore effective interest rate at 3.20% (2020: 5%)
per annum. The interest rate is fixed at the inception of the lease liabilities arrangements.
95

31 DECEMBER 2021
18. TRADE AND OTHER PAYABLES
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Trade
Third parties 5,385,972 5,003,669 - -
Non-trade
Other payables 1,737,367 275,659 135,029 22,212
Accruals 4,391,995 3,747,364 66,750 108,000
Deposit payables 7,100 7,100 - -
Contract liabilities 8,418,626 1,985,869 - -
Amount due to a subsidiary - - 906 -
14,586,401 6,045,147 202,685 130,212
19,972,373 11,048,816 202,685 130,212
Trade and other payables

(exclude provision for warranty
and contract liabilities) 11,522,434 9,033,792 202,685 130,212
Add: Lease liabilities (Note 17) 224,485 105,863 - -
Total financial liabilities carried

at amortised cost 11,746,919 9,139,655 202,685 130,212
(a) Trade payables are normally settled on 30 to 90 days (2020: 30 to 90 days) terms.
(b) The contract liabilities primarily relate to the advance consideration received from customers, which
revenue is recognised at a point in time at which the performance obligations are satisfied. The revenue
will be recognised within 12 months of the end of the reporting period.
(c) The provision for warranty relates mainly to goods sold during the financial years ended 31 December
2020 and 2021. The provision is based on estimates made from historical warranty data associated with
similar products and services. The movements of the provision for warranty are as follows:
GROUP
2021 2020
RM RM
As at 1 January 29,155 7,419

Provision made during the financial year 10,606 41,721
Provision used during the financial year (8,448) (19,985)
As at 31 December 31,313 29,155
(d) The non-trade amount due to a subsidiary is unsecured, interest free and repayable on demand.
96

31 DECEMBER 2021
19. REVENUE
GROUP
2021 2020
RM RM
Revenue from contracts with customers:

Sale of goods 64,164,167 57,352,868
Distribution 11,581,895 9,612,970
75,746,062 66,965,838
Timing of revenue:
At a point in time 75,746,062 66,965,838
20. FINANCE COSTS
GROUP
2021 2020
RM RM
Finance costs in respect of:

- bank commitment fee - 4,190
- lease liabilities 605 69,954
605 74,144
21. PROFIT/(LOSS) BEFORE TAXATION
Profit/(Loss) before taxation is stated after charging/(crediting):
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Auditors’ remuneration
- RSM Malaysia PLT 68,000 68,000 17,000 17,000
- Firm other than member firm
of RSM International Ltd. 27,145 30,403 - -
- others:
- RSM Malaysia PLT 2,500 2,000 2,500 2,000
Depreciation of:
- investment properties 6,170 6,170 - -
- property, plant and equipment 1,546,904 1,313,504 74,133 -
- right-of-use assets 228,439 200,260 - -
Directors’ remuneration (Note 28) 2,576,320 1,459,420 501,511 223,800
Dividend income (296,926) (538,995) (251,479) (417,860)
Gain on disposal of property,
plant and equipment (160,727) (69,372) - -
(Gain)/Loss on foreign exchange
- realised (49,179) 80,856 - -
- unrealised (64,650) (24,969) - -
Impairment loss on trade receivables 473,961 17,351 - -
Interest income (26,024) (74,941) (1,382) (1,898)
97

31 DECEMBER 2021
21. PROFIT/(LOSS) BEFORE TAXATION Cont’d
Profit/(Loss) before taxation is stated after charging/(crediting): Cont’d
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Property, plant and equipment written off 26,107 35,965 - -

Rental rebate - (13,417) - -
Rental income (27,200) (28,200) - -
Rental of equipment 1,584 2,834 - -
Rental of premises 17,983 60,956 - -
Reversal of impairment loss
on trade receivables (17,351) - - -
Share-based payments for ESOS (Note 16) 1,000,048 1,442,195 - -
Staff costs (excludes directors’
remuneration) (Note 23) 18,476,429 17,652,429 - -
Wage subsidy and grant income (312,944) (507,536) - -
22. TAXATION
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Current financial year

- income tax expense 1,607,105 1,294,279 - 164
- deferred taxation (1,606,383) 42,400 - -
- foreign tax 81,633 36,065 - -
- withholding tax 18,043 155,789 - -
100,398 1,528,533 - 164
Under/(Over) provision in prior financial years

- income tax expense 139,846 2,669 10 (69)
- deferred taxation (138,500) 6,018 - -
- foreign tax 14,068 277 - -
15,414 8,964 10 (69)
115,812 1,537,497 10 95
98

31 DECEMBER 2021
22. TAXATION Cont’d
A reconciliation of income tax expense on profit/(loss) before taxation with the applicable statutory income tax
rate is as follows:
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Profit/(Loss) before taxation 4,844,497 9,155,294 (878,145) (240,086)
Income tax at tax rate of 24% (2020: 24%) 1,162,679 2,197,271 (210,755) (57,621)
Tax effects in respect of:

Non-allowable expenses 639,996 763,512 271,110 158,526
Non-taxable income (120,058) (201,033) (60,355) (100,741)
Income tax exemption under Pioneer Status (1,573,353) (1,233,096) - -
Different tax rates in foreign jurisdictions (73,579) (56,629) - -
Statutory tax exemption in Singapore (96,361) (84,811) - -
Foreign withholding tax 18,043 155,789 - -
Deferred tax assets not recognised 170,447 - - -
Utilisation of deferres tax assets previously
not recognised (27,416) (12,470) - -
100,398 1,528,533 - 164
A subsidiary has been granted the Pioneer Status incentive under the Promotion of Investments Act 1986. The
subsidiary will enjoy exemption from income tax on its statutory income from pioneer activities for a period of 5
years from 1 January 2017 to 31 December 2021.
23. STAFF COSTS
GROUP
2021 2020
RM RM
Salaries, wages, allowances and bonuses 16,529,301 15,711,633

Defined contribution plan - EPF contributions 1,765,708 1,774,230
Social security costs - SOCSO contributions 163,357 150,186
Employee insurance system - EIS contributions 18,063 16,380
Total staff costs (excludes directors’ remuneration) 18,476,429 17,652,429
99

31 DECEMBER 2021
24. EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share of the Group is calculated by dividing the profit for the financial year attributable
to ordinary equity holders of the Company for the financial year by the weighted average number of
ordinary shares in issue during the financial year.
GROUP
2021 2020
RM RM
Profit attributable to owners of the Company 4,728,685 7,617,797
Weighted average number of ordinary shares at 31 December 1,223,644,833 1,221,477,200
Basic earnings per ordinary shares (in sen) 0.39 0.62
(b) Diluted earnings per share
The basic and diluted earnings per share are the same as the exercise of the Group’s exercisable ESOS will
not have material impact to the diluted earnings per share for the reporting period.
25. DIVIDEND
The following dividend was declared and paid by the Group and by the Company
GROUP
2020
RM
In respect of the financial year ended 31 December 2020:
Interim single-tier dividend of RM0.0025 per ordinary share,

paid on 31 December 2020 3,053,693
26. CAPITAL COMMITMENTS
GROUP
2021 2020
RM RM
Acquisition of property, plant and equipment: 432,688 265,450

Contracted but not provided for 7,400,000 8,000,000
Approved but not contracted for
7,832,688 8,265,450
COMPANY
2021 2020
RM RM
Acquisition of property, plant and equipment:

Approved but not contracted for - 600,000
100

31 DECEMBER 2021
27. CAPITAL MANAGEMENT
The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s
ability to continue as a going concern, so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Directors monitor and determine to maintain an optimal debt-to-equity
ratio that complies with regulatory requirements and debt covenants.
The debt-to-equity ratios as at 31 December 2021 and at 31 December 2020 are as follows:
GROUP
2021 2020
RM RM
Lease liabilities 224,485 105,863

Less: Cash and bank balances (22,393,862) (27,128,062)
Net debt (22,169,377) (27,022,199)
Total equity 77,649,695 71,286,486
Debt-to-equity ratio N/A* N/A*
*N/A = not applicable as net cash position
There was no change in the Group’s approach to capital management during the financial year.
Under the requirement of Bursa Malaysia Practice Note No. 17/2005, the Company is required to maintain a
consolidated shareholders’ equity equal to or not less than 25% of the issued and paid-up capital (excluding
treasury shares) and such shareholders’ equity is not less RM40 million. The Company has complied with this
requirement.
28. RELATED PARTY DISCLOSURES
For the purposes of these financial statements, parties are considered to be related to the Group and the
Company if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party
or exercise significant influence over the party in making financial and operating decisions, or vice versa, or
where the Group or the Company and the party are subject to common control or common significant influence.
Related parties may be individuals or other entities.
Related parties also include key management personnel defined as those persons having authority and
responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The
key management personnel include all the Directors of the Group and certain members of senior management
of the Group.
The Group has related party relationship with its directors and key management personnel.
Significant related party transactions
Related party transactions have been entered into in the normal course of business under normal trade terms.
The significant related party transactions of the Group are as follows:
GROUP
2021 2020
RM RM
Director
Legal and professional fees 259,031 -
The significant outstanding balances of the related companies together with their terms and conditions are
disclosed in the respective notes to the financial statements.
101

31 DECEMBER 2021
28. RELATED PARTY DISCLOSURES Cont’d
Compensation of Key Management Personnel
The key management personnel of the Group and of the Company include executive directors and non-executive
directors of the Group and of the Company and certain members of senior management of the Group and of the
Company.
The key management personnel compensation during the financial year are as follows:
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Directors
Directors of the Company

- fees 163,679 216,000 163,679 216,000
- salaries, bonuses and other benefits 1,371,863 834,623 325,272 7,800
- defined contribution plan 89,816 82,906 12,560 -
1,625,358 1,133,529 501,511 223,800
Directors of the subsidiaries

- salaries, bonuses and other benefits 901,366 325,981 - -
- defined contribution plan 49,596 - - -
950,962 325,891 - -
Total directors’ remuneration 2,576,320 1,459,420 501,511 223,800
Share based payments for ESOS

- directors of the Company 29,719 107,509 - -
- directors of the subsidiaries 39,720 46,051 - -
69,439 153,560 - -
Other key management personnel
- salaries, bonuses and other benefits 925,120 527,152 - -

- defined contribution plan 109,469 63,875 - -
Total compensation for other

key management personnel 1,034,589 591,027 - -
Share based payments for ESOS 79,997 80,370 - -
Other key management personnel comprise persons other than the executive directors of the Group and of the
Company, having authority and responsibility for planning, directing and controlling the activities of the Group
either directly or indirectly.
The estimated monetary value of benefits-in-kind provided to the directors and key management personnel are
RM69,290 (2020: RM28,678) and NIL (2020: RM11,920) respectively.
102

31 DECEMBER 2021
29. OPERATING SEGMENTS
Three reportable segments, as described below, are the Group’s strategic business units. For each of the strategic
business units, the Group’s Managing Director who is the Group’s Chief Operating Decision Maker (“CODM”) reviews
internal management reports on at least a quarterly basis. The following summary describes the operation in
each of the Group’s reportable segments:
Manufacturing and trading - manufacturing and sale of automation machines and precision parts
Distribution - distribution of manufacturing automation hardware and software
Others - rental income from investment properties
Performance is measured based on segment profit before tax, interest, depreciation and amortisation, as included
in the internal management reports that are reviewed by the Group’s Managing Director in his/ her capacity as
the CODM. Segment profit is used to measure performance as management believes that such information is the
most relevant in evaluating the results of certain segments relative to other entities that operate within these
industries.
Segment assets
The total of segment asset is measured based on all assets (excluding investment properties, goodwill and
deferred tax assets) of a segment. Segment total asset is used to measure the return of assets of each segment.
Segment liabilities
The total of segment liabilities is measured based on all liabilities (excluding deferred tax liabilities) of a segment.
Segment total liabilities is used to measure the liabilities of each segment.
103
29. OPERATING SEGMENTS
GROUP
Manufacturing Distribution Others Total
2021 2020 2021 2020 2021 2020 2021 2020
RM RM RM RM RM RM RM RM
31 DECEMBER 2021
External revenue
AIMFLEX BERHAD
- Within Malaysia 47,807,565 42,351,350 6,790,273 6,347,295 - - 54,597,838 48,698,645

- Outside Malaysia 16,356,602 15,001,518 4,791,622 3,265,675 - - 21,148,224 18,267,193
Total external revenue 64,164,167 57,352,868 11,581,895 9,612,970 - - 75,746,062 66,965,838

Inter-segment revenue 8,664,247 7,741,106 6,049,807 3,120,859 - - 14,714,054 10,861,965
Total segment revenue 72,828,414 65,093,974 17,631,702 12,733,829 - - 90,460,116 77,827,803
Segment profit/(loss) 4,450,239 8,114,810 1,121,913 1,123,443 (727,050) (8,815) 4,845,102 9,229,438
Finance costs (605) (74,144)
104
Profit before taxation 4,844,497 9,155,294
Taxation (115,812) (1,537,497)
Profit for the financial year 4,728,685 7,617,797
Assets
Segment assets 73,259,574 59,698,176 8,167,743 7,635,080 - - 81,427,317 67,333,256
Unallocated assets 18,259,032 16,527,507
Total assets
99,686,349 83,860,763
Liabilities
Segment liabilities 19,527,903 9,954,345 1,368,450 1,784,329 - - 20,896,353 11,738,674
Unallocated liabilities 1,140,301 835,603
Total liabilities 22,036,654 12,574,277

ANNUAL REPORT 2021

31 DECEMBER 2021
29. OPERATING SEGMENTS Cont’d
(a) Geographical information
Segment revenue is based on geographical location from which the sale transactions originated.
GROUP
2021 2020
RM RM
Malaysia 54,597,838 48,698,645

Singapore 10,870,102 8,372,911
Indonesia 243,015 178,688
Philippines 8,570,792 9,385,620
Others 1,464,315 329,974
75,746,062 66,965,838
(b) Major customers
The following are major customers with revenue equal or more than 10 percent of Group’s revenue:
2021 2020 Segment

RM RM
All common control companies of:
- Customer A 29,304,482 39,212,063 Manufacturing and trading
- Customer B 2,515,531 7,254,816 Manufacturing and trading
30. FINANCIAL INSTRUMENTS
Categories of financial instruments
Trade and other receivables (excluding prepayments) and cash and cash equivalents are categorised as financial
assets carried at amortised cost (Note 12) while trade and other payables (exclude provision for warranty and
contract liabilities) and lease liabilities are categorised as financial liabilities carried at amortised cost (Note 18).
Financial Risk Management
The Group and the Company are exposed to the following risks from its use of financial instruments:
(a) Credit risk

(b) Liquidity risk
(c) Market risk
(a) Credit risk
Credit risk is the risk of a financial loss to the Group and the Company if a customer or counterparty
to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk
arises principally from its receivables from customers and investment in debt securities. The Company’s
exposure to credit risk arises principally from financial guarantees given to banks for credit facilities
granted to subsidiaries.
105

31 DECEMBER 2021
30. FINANCIAL INSTRUMENTS Cont’d
Financial Risk Management Cont’d
(a) Credit risk Cont’d
Receivables
The management has a credit policy in place and the exposure to credit risk is monitored on an ongoing
basis. Credit evaluations are performed on customers requiring credit over a certain amount. Based on
the credit evaluation, the customers are rated into three risk categories, namely low risk, medium risk and
high risk.
As at the end of the reporting period, the maximum exposure to credit risk arising from receivables is
represented by the carrying amounts in the statements of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired
are stated at their realisable values. A significant portion of these receivables are regular customers that
have been transacting with the Group.
For significant receivables that are not individually credit-impaired and all other receivables, the Group
uses a provision matrix that categories the different risk classes (low risk, medium risk and high risk)
and the ageing profiles. The collective lifetime ECLs are measured based on the Group’s past lost rate
experiences, time value of money, current conditions and forecast of future economic conditions. The
past lost rates are adjusted upward in the measurement in worsening current conditions and forecasts of
future macroeconomic conditions.
A receivable is written off only if there is no reasonable expectation of recovery. This is when an account is
270 days past due or the customer is experiencing significant financial difficulties, undertaking financial
reorganisation or has gone bankrupt.
Concentration of credit risk
The Group assesses concentrations of credit risk by exposure to single-large customers, industry sectors
and overseas jurisdictions.
The exposure to credit risk for trade receivables by geographical region is as follows:
2021 2020
RM RM
Primary geographical markets

Malaysia 25,957,763 19,946,729
Philippines 4,792,368 3,349,805
Singapore 4,619,542 2,134,351
Others 481,203 84,855
35,850,876 25,515,740
Approximately 42% (2020: 69%) of the Group’s product sales was from a group of customers and a
customer, and approximately 49% (2020: 75%) of the Group’s accounts receivables was from these
customers. The Group determines concentration of risk by monitoring its trade receivable individually on
an ongoing basis.
More than 64% (2020: 91%) of the Group’s customers have been transacting with the Group for over four
years. In monitoring customer credit risk, customers are grouped according to their credit characteristics,
including their geographic location and trading history with the Group and existence of previous financial
difficulties.
106

31 DECEMBER 2021
Concentration of credit risk Cont’d
The Group is monitoring the economic environment in countries in which customers operate and is taking
actions to limits its exposure to customers in countries experiencing particular economic volatility.
A summary of the Group’s exposure to credit risk for trade receivables is as follows:
2021 2020
Not credit- Credit- Not credit- Credit-
impairment impairment impairment impairment
RM RM RM RM
Major customers 17,539,232 - 19,239,870 1,800

Other customers:
- Four or more years of trading
history with the Group 5,309,583 452,145 4,021,401 3,999
- Less than four years of trading
history with the Group 13,002,061 21,816 2,254,469 11,552
Total gross carrying amount 35,850,876 473,961 25,515,740 17,351

Less: Allowance for impairment losses - (473,961) - (17,351)
35,850,876 - 25,515,740 -
The Group’s sales to customers are on credit terms of 30 to 120 days. When an account is more than 30
days past due, the credit risk is considered to have increased significantly since the initial recognition.
The Group identifies as a default account if it is more than 150 days past due and the customer is having
significant financial difficulties (analysed by financial measures of reported losses, negative cash flows,
and qualitative evaluation of the customer’s characteristics). The Group classifies an impaired receivable
when a customer is in default, in liquidation or other financial reorganisation.
For each significant receivable that is credit-impaired, individual lifetime ECL is recognised using the
probability of default technique. The inputs used are: (i) the percent chance of default, and (ii) the expected
cash shortfalls. The lifetime ECL is measured at the probability-weighted expected cash shortfalls by
reference to the Group’s past experience, time value of money, current conditions and forecast of future
economic benefits.
107

31 DECEMBER 2021
Concentration of credit risk Cont’d
The aging analysis of trade receivables as at the end of the reporting period was:
Gross Individual Collective Net

GROUP amount impairment impairment amount
RM RM RM RM
31 December 2021
Not past due 19,396,777 - - 19,396,777
Past due 0-30 days 5,561,471 - - 5,561,471

Past due 31-120 days 2,764,832 (5,500) - 2,759,332
Past due more than 120 days 8,601,757 (468,461) - 8,133,296
Total past due 16,928,060 (473,961) - 16,454,099
36,324,837 (473,961) - 35,850,876
31 December 2020
Not past due 18,899,272 - - 18,899,272
Past due 0 - 30 days 4,211,295 - - 4,211,295

Past due 31 - 120 days 2,187,635 - - 2,187,635
Past due more than 120 days 234,889 (17,351) - 217,538
Total past due 6,633,819 (17,351) - 6,616,468
25,533,091 (17,351) - 25,515,740
Credit risk arising from financial guarantees
The maximum exposure to credit risk in relation to the financial guarantees given amounts to RM8,000,000
(2020: RM3,000,000) as at the end of the reporting period representing the outstanding bank facilities of
the subsidiary as at the end of financial year. The subsidiary has not utilised the facilities at the end of the
reporting period.
108
(b) Liquidity risk
Liquidity risk is the risk that the Group and the Company will not be able to meet its financial obligations as they fall due. The Group’s and the Company’s
exposure to liquidity risk arise principally from its various payables.
31 DECEMBER 2021
AIMFLEX BERHAD
The Group and the Company maintain a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they fall due.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.
The table below summarises the maturity profile of the Group’s and Company’s financial liabilities as at the end of the reporting period based on undiscounted
contractual payments:
Carrying Contractual Contractual

GROUP amount interest rate cash flows Under 1 year 1-2 years
RM % RM RM RM
109
2021
Non-derivative financial liabilities
Trade and other payables (Note 18) 11,522,434 - 11,522,434 11,522,434 -
Lease liabilities (Note 17) 224,485 3.20 232,405 116,580 115,825
11,746,919 11,754,839 11,639,014 115,825

2020
Trade and other payables (Note 18) 9,033,792 - 9,033,792 9,033,792 -
Lease liabilities (Note 17) 105,863 5.00 109,426 87,541 21,885
9,139,655 9,143,218 9,121,333 21,885

ANNUAL REPORT 2021
(b) Liquidity risk Cont’d
The table below summarises the maturity profile of the Group’s and Company’s financial liabilities as at the end of the reporting period based on undiscounted
contractual payments: Cont’d
31 DECEMBER 2021
AIMFLEX BERHAD
Carrying Contractual Contractual

COMPANY amount interest rate cash flows Under 1 year 1-2 years
RM % RM RM RM
2021
Other payables (Note 18) 202,685 - 202,685 202,685 -
2020
Other payables (Note 18) 130,212 - 130,212 130,212 -
110
ANNUAL REPORT 2021
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that will affect the Group’s and the
Company’s financial position or cash flows
31 DECEMBER 2021
AIMFLEX BERHAD
(i) Foreign currency risk
The Group is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the respective functional currencies
of the Group entities. The currencies giving rise to this risk are primarily Euro Dollar (“EUR”), Singapore Dollar (“SGD”) and U.S. Dollar (“USD”).
GROUP
2021 2020
Denominated in Denominated in
COMPANY EUR SGD USD EUR SGD USD
RM RM RM RM RM RM
111
Trade and other receivables - 4,462,521 6,104,634 - 2,091,288 3,667,558
Cash and cash equivalents - 1,206,655 1,100,075 - 1,482,386 2,276,639
Trade and other payables (726) (6,058,799) (1,400,097) (458,260) (858,468) (736,436)
Lease liabilities - (192,920) - - (105,863) -
Net exposure (726) (582,543) 5,804,612 (458,260) 2,609,343 5,207,761

ANNUAL REPORT 2021

31 DECEMBER 2021
(c) Market risk Cont’d
(i) Foreign currency risk Cont’d
A 10% (2020: 10%) strengthening of the RM against the following currencies at the end of the
reporting period would have increased (decreased) equity and post-tax profit or loss by the amounts
shown below. This analysis is based on foreign currency exchange rate variances that the Group
considered to be reasonably possible at the end of the reporting period. The analysis assumes
that all other variables, in particular interest rates, remained constant and ignores any impact of
forecasted sales and purchases.
GROUP
Profit or (Loss)
2021 2020
RM RM
EUR 55 34,828
SGD 44,273 (198,310)
USD (441,151) (395,790)
(396,823) (559,272)
A 10% (2020: 10%) weakening of RM against the above currencies at the end of the reporting period
would have had equal but opposite effect on the above currencies to the amounts shown above, on
the basis that all other variables remained constant.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments
will fluctuate because of changes in market interest rates.
The Group’s exposure to interest risk arises primarily from cash and cash equivalents and lease
liabilities. The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts
in a cost-efficient manner.
The following table sets out the carrying amount of the Group’s financial instruments that are
exposed to interest rate risk:
GROUP COMPANY
2021 2020 2021 2020
RM RM RM RM
Fixed rate instruments:

Financial assets 1,083,172 1,064,560 - -
Lease liabilities (224,485) (105,863) - -
858,687 958,697 - -
Interest on financial instruments at fixed rates is fixed until the maturity of the instruments. The
other financial instruments of the Group and the Company that are not included in the above table
are not subject to interest rate risks.
112

31 DECEMBER 2021
(c) Market risk Cont’d
(ii) Interest rate risk Cont’d
Sensitivity analysis for interest rate risk
At the reporting date, if interest rates had been 100 basis points lower/ higher, with all other
variables held constant, the Group’s profit after tax would have been NIL (2020:NIL) higher/ lower,
arising mainly as a result of lower/ higher interest expense from financial instruments. The assumed
movement in basis points for interest rate sensitivity analysis is based on the currently observable
market environment.
(iii) Fair value of financial instruments
The carrying amount of cash and cash equivalents, short term receivables and payables approximate
fair values due to the relatively short term nature of these financial instruments.
The following are the classes of financial instruments that are not carried at fair value and whose
carrying amounts are reasonable approximation of the fair value:
Note
Trade and other receivables 12

Lease liabilities 17
Trade and other payables 18
31. SIGNIFICANT EVENT
The impact of the COVID-19 pandemic is ongoing up to 31 December 2021. It is not practicable to estimate
the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is
dependent on measures imposed by the government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
On 13 January 2021, the Government of Malaysia had reimposed the Movement Control Order (“MCO 2.0”) in
several states and all federal territories in Malaysia to curb the third wave of COVID-19 pandemic in the country.
However, the Group’s main business activities were considered as essential services and were allowed to operate
during MCO 2.0 period under the guidelines set by NSC, MOH and MITI.
Based on the assessment of the Group, there were no material financial impact arising from the COVID-19
pandemic. The Group will continue to assess any impact of the COVID-19 pandemic on the financial statements of
the Group for the financial year ending 31 December 2022.
32. SUBSEQUENT EVENT
Proposed subscription
On 11 January 2022, the Company announced that it will undertake a proposed subscription exercise of up to
244,824,000 Subscription Shares at the subscription price of RM0.1267 per Subscription Share, representing up
to 20% of the enlarged number of issued and paid up shares of the Company.
On 15 February 2022, the Company announced that the application pursuant to the Proposed Subscription has
been submitted to Bursa Malaysia Securities Berhad.
113

31 DECEMBER 2021
32. SUBSEQUENT EVENT Cont
Proposed subscription Cont’d
On 28 March 2022, the Company announced that the application pursuant to the Proposed Subscription has been
approved by Bursa Malaysia Securities Berhad and the Proposed Subscription is required to be approved by the
shareholders in general meeting.
On 13 April 2022, the Company announced and issued the Notice of Extraordinary General Meeting which is
scheduled to be held on 20 May 2022.
The proceeds from the proposed subscription exercise will be utilised for future business/investment
opportunities and working capital.
33. OTHER INFORMATION
(a) The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed
on the ACE Market of Bursa Malaysia Securities Berhad.
(b) The registered office of the Company is situated at:
B03-B-13-1, Level 13
Menara 3A, KL Eco City
No.3, Jalan Bangsar
59200 Kuala Lumpur
(c) The principal place of business of the Company is situated at:
No. 12-2, Jalan Persiaran Teknologi

Taman Teknologi Johor
81400 Senai
Johor Darul Ta’zim
(d) The financial statements are presented in Ringgit Malaysia, which is also the Group’s functional currency.
34. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were authorised for issue in accordance with a resolution by the Board of Directors on
28 April 2022.
114
STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
We, the undersigned, being two of the directors of AIMFLEX BERHAD Registration No. 201801011135 (1273151-K)
do hereby state that, in the opinion of the directors, the financial statements set out on pages 57 to 114 are drawn up
in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia so as to give a true and fair view of the state of affairs of the Group
and of the Company as at 31 December 2021 and of the financial results and the cash flows of the Group and of the
Company for the financial year ended on that date.
Signed on behalf of the Board of Directors in accordance with a resolution of the directors:
TEE SOOK SING
CHUAH CHONG EWE
28 April 2022
STATUTORY DECLARATION
PURSUANT TO SECTION 251(1)(B) OF THE COMPANIES ACT 2016
I, SOO CHOON SIONG (MIA No.: 16981), being the officer primarily responsible for the financial management of AIMFLEX
BERHAD Registration No. 201801011135 (1273151-K) do solemnly and sincerely declare that the financial statements
set out on pages 57 to 114 are to the best of my knowledge and belief, correct and I make this solemn declaration
conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act 1960.
SOO CHOON SIONG

(MIA No.: 16981)
Subscribed and solemnly declared

by the abovenamed at Johor Bahru
in the state of Johor on 28 April 2022
Before me,
Commissioner for Oaths
Johor Bahru
115
INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF AIMFLEX BERHAD
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of AIMFLEX Berhad, which comprise the statements of financial position as
at 31 December 2021 of the Group and of the Company, and the statements of profit or loss and other comprehensive
income, statements of changes in equity and statement of cash flows of the Group and of the Company for the financial
year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set
out on pages 57 to 114.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and
of the Company as at 31 December 2021 and of its financial performance and its cash flows for the financial year then
ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and
the requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit
of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct
and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and
the IESBA Code.
Key Audit Matter
We have fulfilled the responsibilities described in Auditors’ responsibilities for the audit of the financial statements
section of our report, including in relation to the matter. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matter below, provide the basis of our audit
opinion on the accompanying financial statements.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the Group and of the Company for the current financial year. This matter was addressed in the
context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. We have determined that there is no key audit
matter in the audit of the separate financial statements of the Company to communicate in our auditors’ report.
Key audit matter How our audit addressed the key audit matters
Revenue recognition Our audit procedures included the following:
Refer to Note 19 to the financial statements. - Obtained an understanding of the Group’s revenue
recognition process and their application and thereafter
The revenue recognition from the sale of manufactured testing controls on the occurrence of revenue.
goods and distribution depends on the nature of the
contractual arrangements with customers and could - On sampling basis, we have performed substantive
affect the point of control is transferred and service is testing to verify that revenue recognition criteria are
rendered to the customers. being properly applied.
We have identified revenue recognition as a key audit - Assessing the correct period for the revenue recognised
matter as there is higher risk of material misstatement by testing cut-off through assessing sales transactions
from the perspective of timing of revenue recognition taking place at either side of the end of reporting period
based on different contractual arrangements with as well as checking credit notes and sales return issued
customers. after the reporting period.
116

Report on the Audit of the Financial Statements Cont’d
Information Other than the Financial Statements and Auditors’ Report Thereon
The directors of the Company are responsible for the other information. The other information comprises Directors’
Report and Statement on Risk Management and Internal Control, which we obtained prior to the date of this auditors’
report, and other sections included in the annual report, which are expected to be made available to us after that date.
Other information does not include the financial statements of the Group and of the Company and our auditors’ report
thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The directors of the Company are responsible for the preparation of financial statements of the Group and of the
Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are also
responsible for such internal control as the directors determine is necessary to enable the preparation of financial
statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the
Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the
Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the
Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s and the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
117

Report on the Audit of the Financial Statements Cont’d
Auditors’ Responsibilities for the Audit of the Financial Statements Cont’d
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Cont’d
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in
the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However,
future events or conditions may cause the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the
Company, including the disclosures, and whether the financial statements of the Group and of the Company
represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements of the Group. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial statements of the Group and of the Company for the current financial year and are therefore the
key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we
have not acted as auditors, are disclosed in Note 8 to the financial statements.
Other Matter
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies
Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of
this report.
RSM Malaysia PLT Tan Yen Fen

202206000002 (LLP0030276-LCA) & AF 0768 02145/06/2023 J
Chartered Accountants Chartered Accountant
Johor Bahru
28 April 2022
118
LIST OF PROPERTIES
AS AT 31 DECEMBER 2021
Category of Land
land use/ Description area/ Net book
Registered owner/Title Expiry of Age of of property/ Date of Built up value
No. details/Postal address lease building Existing use Acquisition area sq m (RM)
(a) AIMFLEX Systems Sdn Bhd Building/ 6 years 1 storey factory 22 Nov 2018 18,840/ 14,060,242
Leasehold, with a 2-storey 6,169
HS(D) 50239, PTD 87654, Mukim office building
of Senai,District of Kulai,Johor 60 years used as our
bearing the postal address of (expiring centralised
12-2, Jalan Persiaran Teknologi, on 1 April main office and
Taman Teknologi Johor 81400 2068) manufacturing
Senai, Johor. space of our
Group
(b) AIMFLEX Systems Sdn Bhd Industrial/ N/A Vacant land 22 Nov 2018 2,860 312,811
Leasehold,
HS(D) 50240, PTD 87663, Mukim
of Senai,District of Kulai,Johor 60 years
bearing the postal address of (expiring
12-2, Jalan Persiaran Teknologi, on 1 April
Taman Teknologi Johor 81400 2068)
Senai, Johor.
(c) AIMFLEX Technology Sdn Bhd Building/ 22 years Office unit 13 Nov 2014 N/A 128 474,115
Freehold located on the
Master Lot No. 21393, Strata 17th floor of a
Title No. GRN 102261/M1/17/ commercial
49, Johor Bahru, Johor. building
No. 17-06, Level 17, Vacant

Menara MSC Cyberport,
Jalan Bukit Meldrum,
80300 Johor Bahru, Johor.
(d) AIMFLEX Technology Sdn Bhd Building/ 22 years Office unit 5 Oct 2016 N/A 128 471,076
Title No. GRN 102261/M1/17/ commercial
50, Johor Bahru, Johor. building
No. 17-07, Level 17, Office premise

Menara MSC Cyberport, of Bizit Systems
Jalan Bukit Meldrum, Malaysia
80300 Johor Bahru, Johor.
(e) AIMFLEX Technology Sdn Bhd Building/ 7 years Office unit 30 Sept 2012 N/A 88.5 624,526
GRN 75551 Lot 20000 (formerly 8th floor of a
held under HS(D)117437, PT commercial
462) Seksyen 90, Kuala Lumpur building
No. 8-23A, Block V03, Sunway Office premise

Velocity Designer Office, of Bizit Systems
Lingkaran SV, Off Jalan Peel Malaysia
55100 Kuala Lumpur
(f) AIMFLEX Solutions Sdn Bhd Building/ 22 years Office unit 6 Oct 2016 N/A 82 271,467
Title No. GRN 102261/ commercial
M1/18/61, Johor Bahru, Johor. building
No. 18-09, Level 18, Menara Rented out as

MSC Cyberport, Jalan Bukit office premises
Meldrum, 80300 Johor Bahru,
Johor.
119
ANALYSIS OF SHAREHOLDINGS
AS AT 05 APRIL 2022
Share Capital
Number of Issued Shares 1,224,121,200 Ordinary Shares

Class of Shares Ordinary Shares
Voting Rights One vote per ordinary share held
Distribution of Shareholdings
Size of Holdings No. of Holders % No. of Shares %

Less than 100 4 0.040 95 0.000
100 - 1,000 654 6.491 390,405 0.032
1,001 - 10,000 3,156 31.325 21,363,100 1.745
10,001 - 100,000 5,053 50.154 205,871,700 16.818
100,001 - less than 5% of issued shares 1, 206 11.970 790,942,500 64.613
5% and above of issued shares 2 0.020 205,553,400 16.792
Total 10,075 100.000 1,224,121,200 100.000
List of Thirty Largest Shareholders
Name of Shareholders No. of Shares % of Shares

1 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 140,514,300 11.478
PLEDGED SECURITIES ACCOUNT FOR AWANG DAUD BIN AWANG PUTERA (M05)
2 TEE SOOK SING 65,039,100 5.313
3 LUSTER INDUSTRIES BHD. 50,000,000 4.084
4 MAYBANK SECURITIES NOMINEES (TEMPATAN) SDN BHD 50,000,000 4.084
PLEDGED SECURITIES ACCOUNT FOR LUSTER INDUSTRIES BHD
5 CHAN SAI KONG 31,885,000 2.604
6 KENANGA NOMINEES (TEMPATAN) SDN BHD 30,482,000 2.490
PLEDGED SECURITIES ACCOUNT FOR AWANG DAUD BIN AWANG PUTERA
7 RESOLUTE ACCOMPLISHMENT SDN. BHD. 25,000,000 2.042
8 NG NGOON WENG 24,500,000 2.001
9 ONG KENG SENG 15,500,000 1.266
10 MAYBANK NOMINEES (TEMPATAN) SDN BHD 13,200,000 1.078
PLEDGED SECURITIES ACCOUNT FOR PHUAH CHENG PENG
PLEDGED SECURITIES ACCOUNT FOR TAN CHIN HOOI
12 ALLIANCEGROUP NOMINEES (TEMPATAN) SDN BHD 11,380,300 0.929
PLEDGED SECURITIES ACCOUNT FOR MAK TIAN MENG (7001418)
PLEDGED SECURITIES ACCOUNT FOR RESOLUTE ACCOMPLISHMENT SDN BHD
MAYBANK PRIVATE WEALTH MANAGEMENT FOR CHAN KOK SAN
(12021700) (438639)
15 LOW LAY PING 8,000,000 0.653
16 SIOW KIM WEE 7,500,000 0.612
17 CGS-CIMB NOMINEES (TEMPATAN) SDN BHD 6,150,000 0.502
PLEDGED SECURITIES ACCOUNT FOR TAY MOY KOH (SEGAMAT-CL)
18 AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD. 6,000,000 0.490
PLEDGED SECURITIES ACCOUNT FOR NG WYMIN (M09)
19 KENANGA NOMINEES (TEMPATAN) SDN BHD 6,000,000 0.490
PLEDGED SECURITIES ACCOUNT FOR CHIN LEONG CHOY
120
ANALYSIS OF SHAREHOLDINGS
AS AT 05 APRIL 2022
List of Thirty Largest Shareholders Cont’d
Name of Shareholders No. of Shares % of Shares

20 WONG YOKE FONG @ WONG NYOK FING 5,100,000 0.416
21 MALACCA EQUITY NOMINEES (TEMPATAN) SDN BHD 5,000,000 0.408
EXEMPT AN FOR PHILLIP CAPITAL MANAGEMENT SDN BHD (EPF)
22 NYON CHEE SENG 5,000,000 0.408
23 OOI ENG BEE 4,000,000 0.326
24 TAN KAH CHUN 3,600,000 0.294
25 TEE AH SWEE 3,600,000 0.294
PLEDGED SECURITIES ACCOUNT FOR TAY MOY KOH (MY3164)
27 TOH PIK CHAI 3,436,300 0.280
28 LLH HOLDINGS SDN BHD 3,410,700 0.278
PLEDGED SECURITIES ACCOUNT FOR TAN JIN THAI (SS2 PJ-CL)
30 PUBLIC NOMINEES (TEMPATAN) SDN BHD 3,100,000 0.253
PLEDGED SECURITIES ACCOUNT FOR TEOH WEI LIANG (E-PRA)
List of Substantial Shareholders
Name of Shareholders Direct Interest Indirect Interest

No. of Shares % of Shares No. of Shares % of Shares
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera 170,996,300 13.969 - -
Luster Industries Bhd 100,000,000 8.169 - -
Tee Sook Sing 65,039,100 5.313 - -
Directors’ Shareholdings
Directors Direct Interest Indirect Interest

No. of Shares % of Shares No. of Shares % of Shares
Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera 170,996,300 13.969 - -
Tee Sook Sing 65,039,100 5.313 - -
Chuah Chong Ewe - - - -
Chuah Chong San - - - -
Law Lee Yen - - - -
Professor Dr Ruzairi Bin Hj Abdul Rahim 120,800 0.009 - -
Siti Zaleha Sulaiman - - - -
121
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the Fourth (4th) Annual General Meeting (“AGM”) of AIMFLEX Berhad (“the Company”)
will be held on a fully virtual basis through live streaming and online remote meeting platform of TIIH Online provided
by Tricor Investor & Issuing House Services Sdn Bhd via its website at https://tiih.online or https://tiih.com.my (Domain
Registration number with MYNIC: D1A212781) on Thursday, 23 June 2022 at 10.00 a.m. for the following purposes:-
AGENDA
AS ORDINARY BUSINESS:
1. To receive the Audited Financial Statements for the financial year ended 31 December Please refer to
2021 together with the Reports of the Directors and Auditors thereon. Explanatory Note (a)
2. To approve and ratify the additional payment of Directors’ Fees and benefits totalling Resolution 1
RM50,000.00 which was in excess of the earlier approved amount of RM178,500.00 for Please refer to
the period commencing from 25 January 2022 until the conclusion of 4th AGM of the Explanatory Note (b)
Company.
3. To re-elect the following Directors who retire pursuant to Article 131 of the Company’s
Constitution:-
(i) Tee Sook Sing Resolution 2
(ii) Professor Dr. Ruzairi Bin Hj Abdul Rahim Resolution 3
4. To elect the following Directors who retire pursuant to Article 116 of the Company’s
Constitution:-
(i) Chuah Chong Ewe Resolution 4
(ii) Chuah Chong San Resolution 5
5. To approve the payment of Directors’ fees of up to RM300,000.00 and benefits of up to Resolution 6

RM20,000.00 from 2022 Annual General Meeting until the next Annual General Meeting Please refer to
of the Company. Explanatory Note (c)
6.. To re-appoint Messrs. RSM Malaysia PLT as Auditors of the Company for the ensuing Resolution 7
financial year, and to authorise the Directors to fix their remuneration.
AS SPECIAL BUSINESS:
To consider and if thought fit, to pass the following ordinary resolution:-
7. Authority to Issue Shares
“THAT subject always to the Companies Act 2016 (“the Act”), the constitution of Resolution 8
the Company and the approvals from Bursa Malaysia Securities Berhad (“Bursa Please refer to
Securities”) and any other relevant governmental and/or regulatory authorities, Explanatory Note (d)
where such approval is necessary, the Directors of the Company be and are hereby
authorised and empowered pursuant to the Act, to issue and allot shares in the capital
of the Company from time to time at such price and upon such terms and conditions,
for such purposes and to such person or persons whomsoever the Directors may in
their absolute discretion deem fit, provided always that the aggregate number of
shares issued pursuant to this resolution does not exceed twenty percent (20%) of the
total number of issued shares of the Company for the time being to be utilised until
31 December 2022 as empowered by Bursa Securities pursuant to the extension of
the implementation period of the enhanced general mandate announced by Bursa
Malaysia Berhad on 23 December 2021 and thereafter, ten per centum (10%) of the
total number of issued shares of the Company for the time being as stipulated under
Rule 6.04(1) of the Bursa Securities Ace Market Listing Requirements to be utilised
before the conclusion of the next Annual General Meeting (“AGM”) of the Company;
AND THAT the Directors be and are also empowered to obtain the approval for the
listing of and quotation for the additional shares so issued on Bursa Securities; AND
FURTHER THAT such authority shall commence immediately upon the passing of this
resolution and continue to be in force until the conclusion of the next Annual General
Meeting of the Company.”
8. To transact any other business for which due notice shall have been given.
122
By Order of the Board
NG HENG HOOI (MAICSA 7048492) (PC No. 202008002923)

WONG MEE KIAT (MAICSA 7058813) (PC No. 202008001958)
WONG MEE CHING (LS 9014) (PC No. 202008001420)
Company Secretaries
Kuala Lumpur
Dated: 29 April 2022
Notes:-
1. The AGM of the Company will be conducted entirely on a virtual basis through live streaming and online remote
voting via Remote Participation and Voting (“RPV”) facilities provided by Tricor Investor & Issuing House Services
Sdn Bhd on its website at https://tiih.online. Please follow the procedures set out in the Administrative Guide for the
AGM which is available on the Company’s website at https://www.aimflex.com.my to register, participate and vote
remotely via the RPV.
According to the Revised Guidance Note and FAQs, an online meeting platform can be recognised as the meeting
venue or place under Section 327(2) of the Act provided that the online platform is located in Malaysia and all
meeting participants of a fully virtual general meeting are to participate in the meeting online.
2. In respect of deposited securities, only members whose names appear in the Record of Depositors on 16 June 2022
shall be eligible to attend the Meeting.
3. A member of the Company entitled to attend and vote at the Meeting is entitled to appoint one (1) or more proxies
to attend, participate, speak and vote in his stead. A member may appoint more than one (1) proxy in relation to the
Meeting, provided that the member specifies the proportion of the member’s shareholdings to be represented by
each proxy.
4. A proxy may but need not be a member of the Company. There shall be no restriction as to the qualification of the
proxy. A proxy appointed to attend and vote at the Meeting shall have the same rights as the member to attend,
participate, speak and vote at the Meeting.
5. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly
authorised in writing or, if the appointer is a corporation, either under Seal or under the hand of an officer or attorney
duly authorised.
6. Where a member of the Company is an exempt authorised nominee as defined under the Securities Industry (Central
Depositories) Act 1991 (“SICDA”) which holds ordinary shares in the Company for multiple beneficial owners in one
securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised
nominee may appoint in respect of each omnibus account it holds.
7. The instrument appointing a proxy and the power of attorney or other authority (if any), under which it is signed or
a duly notarised certified copy of that power or authority, shall be deposited at the office of the Company’s Share
Registrar, Tricor Investor & Issuing House Services Sdn. Bhd., Unit 32-01, Level 32, Tower A, Vertical Business Suite
Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur or its Customer Service Centre at Unit G-3,
Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8 Jalan Kerinchi, 59200 Kuala Lumpur. Alternatively,
the Form of Proxy may also be lodged electronically via the TIIH Online at https://tiih.online not less than forty-eight
(48) hours before the time appointed for holding the Meeting or any adjournment thereof, resolutions set out above
are to be voted by poll. Kindly refer to the Administrative Guide for the AGM for further information on the electronic
lodgement of proxy form.
A member who has appointed a proxy or attorney or authorised representative to attend, participate, speak and
vote at this AGM via RPV must request his/her proxy to register himself/herself for RPV at TIIH Online website at
https://tiih.online. Kindly refer to the Procedures for RPV as set out in the Administrative Guide for the AGM.
Explanatory Notes
(a) Audited Financial Statements and Reports of Directors and Auditors
The Audited Financial Statements under Agenda 1 are meant for discussion only in accordance with the
provisions of Section 340(1) of the Companies Act 2016 (“the Act”), and it does not require a formal approval of
the shareholders. Hence, this agenda will not be put forward for voting.
123
Notes:- Cont’d
Explanatory Notes Cont’d
(b) Additional payment of Directors’ Fees and benefits
At the Third AGM of the Company held on 17 June 2021, the shareholders had approved RM163,500.00 as payment
of Directors’ fees and benefits of up to RM15,000.00 payable to the Directors of the Company for the period
commencing from Third AGM up to the Fourth AGM of the Company.
The revised total Directors’ Fees and benefits incurred were amounted to RM228,500.00. The request on the
additional amount of RM50,000.00 in excess of the RM178,500.00 is required due to the redesignation of Dato’
(Dr.) Ts. Awang Daud Bin Awang Putera from Executive Chairman to Non-Independent Non-Executive Chairman
on 25 January 2022 which he shall be entitled to the Directors’ Fees from the said period until the conclusion of
the Fourth AGM of the Company.
(c) Directors’ fees and benefits
Pursuant to Section 230(1) of the Act, fees and benefits (“Remuneration”) payable to the Directors of the Company
will have to be approved by the shareholders at a general meeting. The Company is requesting shareholders’
approval for the payment of Remuneration for the period from this Annual General Meeting until the conclusion
of the next Annual General Meeting of the Company in 2023. The Remuneration comprises of fees and meeting
allowances payable to directors.
(d) Authority to Issue Shares
The proposed Ordinary Resolution 8, if passed, is a renewal general mandate to empower the Directors to issue
and allot shares up to an amount not exceeding 20% of the total number of issued share of the Company for the
time being for such purposes as the Directors consider would be in the best interest of the Company.
Bursa Securities has via their letter dated 23 December 2021 granted an extension to the temporary relief measures
to listed corporations, amongst others, an increase in general mandate limit for new issues of securities to not
more than 20% of the total number of issued shares of the Company for the time being (“20% General Mandate”).
Pursuant to the 20% General Mandate, Bursa Securities has also mandated that the 20% General Mandate may
be utilised by a listed corporation to issue new securities until 31 December 2022 and thereafter, the 10% general
mandate will be reinstated. The 20% General Mandate and 10% General Mandate are sought to provide flexibility
to the Company for allotment of shares without convening a general meeting, which may be both time and cost-
consuming, if the need arises.
Having considered the current economic climate arising from the global COVID-19 pandemic and future financial
needs of the Group, the Board would like to procure approval for the 20% General Mandate, pursuant to Section
76(4) of the Companies Act, 2016 from its shareholders at the forthcoming Fourth AGM of the Company.
The 20% General Mandate will provide flexibility to the Company for any possible fund raising activities, including
but not limited to further placing of shares, for the purpose of funding future investment project(s) workings
capital and/or acquisitions. The 20% General Mandate, unless revoked or varied by the Company in general
meeting, will expire at the end of the 31 December 2022.
The Previous Mandate granted by the shareholders had not been utilised and hence, no proceed was raised
therefrom.
Notes in Notice of Meeting & Proxy Form
The appointment of a proxy may be made in hard copy form or by electronic form. In the case of an appointment made
in hard copy form, the proxy form must be deposited with the Company’s Share Registrar at Unit 32-01, Level 32, Tower
A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia or alternatively,
the Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi,
59200 Kuala Lumpur. In the case of electronic appointment, the proxy form must be deposited via TIIH Online at https://
tiih.online. Please refer to the Administrative Guide for further information on electronic submission. All proxy form
submitted must be received by the Company not less than forty-eight (48) hours before the time appointed for holding
the General Meeting or adjourned General Meeting at which the person named in the appointment proposes to vote.
124
STATEMENT ACCOMPANYING THE NOTICE OF THE ANNUAL GENERAL MEETING
Statement Accompanying the Notice of the Annual General Meeting pursuant to Rule 8.29(2), Appendix 8A of the Listing
Requirements of Bursa Malaysia Securities Berhad.
The details of the Directors seeking election are set out in the respective profiles which appear in the Director’s Profiles
on pages 5 – 8 of this Annual Report.
The details of their interest in the securities of the Company are set out in the Analysis of Shareholdings which appear on
the page 121 of this Annual Report.
125
This page is intentionally left blank.
AIMFLEX BERHAD
(Formerly known as I-Stone Group Berhad) FORM OF PROXY
Registration No.: 201801011135 (1273151-K)
(Incorporated in Malaysia)
Number of Shares held
CDS Account No.
I/We,_____________________________________________________________NRIC/Passport No.______________________________
(FULL NAME IN BLOCK LETTERS)
of_________________________________________________________________________________________________________
(FULL ADDRESS)
contact no. ___________________________email address ___________________________________being a member/ members of
Aimflex Berhad (“Aimflex” or the “Company”) hereby appoint the person(s) below as my/our proxy(ies) to vote for
me/us and on my/our behalf at the Fourth (4th) Annual General Meeting (“AGM”) to be held on a fully virtual basis
through live streaming and online remote meeting platform of TIIH Online provided by Tricor Investor & Issuing House
Services Sdn Bhd via its website at https://tiih.online or https://tiih.com.my (Domain Registration number with MYNIC:
D1A212781) on Thursday, 23 June 2022 at 10.00 a.m.
IMPORTANT NOTE:
Please (i) tick [✓] either ONE of the option (a) or (b) for the number of proxy which you wish to appoint, (ii) complete
the details of your proxy/proxies and the proportion of your shareholding to be represented (if applicable), (iii) please
tick [✓] option (c) if you would like to appoint the Chairman of the AGM as the proxy or failing the proxy to vote on your
behalf and (iv) sign or execute this form.
Option Name of proxy(ies) NRIC/ Email Address & Proportion of

Registration No. Phone Number shareholding to
be represented
(a) Appoint ONE proxy only (Please complete details of proxy below)
100%
(b) Appoint MORE THAN ONE proxy (Please complete details of proxies below)
Proxy 1 %
Proxy 2 %
100%
(c) The Chairman of the AGM as my/our proxy and/or failing the above proxy to vote for me/
us on my/our behalf
*My/our *proxy/proxies shall vote as follows :-
Please indicate with an “X” in the space provided below how you wish your votes to be casted. If no specific direction as
to voting is given, the *proxy/proxies will vote or abstain forvoting at his(her) discretion.
NO. RESOLUTIONS FOR AGAINST

1. ADDITIONAL PAYMENT OF DIRECTORS’ FEES AND BENEFITS
2. RE-ELECTION OF MS. TEE SOOK SING AS DIRECTOR
3. RE-ELECTION OF PROFESSOR DR. RUZAIRI BIN HJ ABDUL RAHIM AS DIRECTOR
4. ELECTION OF MR. CHUAH CHONG EWE AS DIRECTOR
5. ELECTION OF MR. CHUAH CHONG SAN AS DIRECTOR
6. PAYMENT OF DIRECTORS’ FEES AND BENEFITS FROM THIS AGM UNTIL THE NEXT AGM
7. RE-APPOINTMENT OF MESSRS. RSM MALAYSIA PLT AS AUDITORS
8. AUTHORITY TO ISSUE SHARES
Dated this _____ day of ___________ 2022
___________________________________
Signature / Common Seal of Shareholder
Notes:-
1. The AGM of the Company will be conducted entirely on a virtual basis through live streaming and online remote voting via Remote Participation and
Voting (“RPV”) facilities provided by Tricor Investor & Issuing House Services Sdn Bhd on its website at https://tiih.online. Please follow the procedures set
out in the Administrative Guide for the AGM which is available on the Company’s website at https://www.aimflex.com.my to register, participate and vote
remotely via the RPV.
According to the Revised Guidance Note and FAQs, an online meeting platform can be recognised as the meeting venue or place under Section 327(2) of
the Act provided that the online platform is located in Malaysia and all meeting participants of a fully virtual general meeting are to participate in the
meeting online.
2. In respect of deposited securities, only members whose names appear in the Record of Depositors on 16 June 2022 shall be eligible to attend the Meeting.
3. A member of the Company entitled to attend and vote at the Meeting is entitled to appoint one (1) or more proxies to attend, participate, speak and
vote in his stead. A member may appoint more than one (1) proxy in relation to the Meeting, provided that the member specifies the proportion of the
member’s shareholdings to be represented by each proxy.
4. A proxy may but need not be a member of the Company. There shall be no restriction as to the qualification of the proxy. A proxy appointed to attend and
vote at the Meeting shall have the same rights as the member to attend, participate, speak and vote at the Meeting.
5. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointer is
a corporation, either under Seal or under the hand of an officer or attorney duly authorised.
6. Where a member of the Company is an exempt authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991 (“SICDA”)
which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number
of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.
7. The instrument appointing a proxy and the power of attorney or other authority (if any), under which it is signed or a duly notarised certified copy of
that power or authority, shall be deposited at the office of the Company’s Share Registrar, Tricor Investor & Issuing House Services Sdn. Bhd., Unit 32-01,
Level 32, Tower A, Vertical Business Suite Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur or its Customer Service Centre at Unit
G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8 Jalan Kerinchi, 59200 Kuala Lumpur. Alternatively, the Form of Proxy may also be
lodged electronically via the TIIH Online at https://tiih.online not less than forty-eight (48) hours before the time appointed for holding the Meeting or any
adjournment thereof, resolutions set out above are to be voted by poll. Kindly refer to the Administrative Guide for the AGM for further information on the
electronic lodgement of proxy form.
A member who has appointed a proxy or attorney or authorised representative to attend, participate, speak and vote at this AGM via RPV must request
his/her proxy to register himself/herself for RPV at TIIH Online website at https://tiih.online. Kindly refer to the Procedures for RPV as set out in the
Administrative Guide for the AGM.
Please Fold Along This Line
Stamp
THE SHARE REGISTRAR OF

AIMFLEX BERHAD
Unit 32-01, Level 32
Tower A, Vertical Business Suite
Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Please Fold Along This Line

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CONTENTS

BOARD OF Non-Independent Non-Executive Chairman COMPANY SECRETARIES

Corporation Date / Effective Principal Activities

FY2017¹ FY2018¹ FY2019 FY2020 FY2021

Revenue 60,381 67,591 77,731 66,966 75,746

REVENUE (RM '000) PROFIT BEFORE TAXATION (RM '000)

PROFIT AFTER TAXATION (RM '000) SHAREHOLDERS' EQUITY (RM '000)

EARNINGS PER SHARE (SEN) NET ASSETS PER SHARE (SEN)

From left to right:

Non-Independent Non-Executive Chairman

He started his career in 1993 as an advocate and solicitor.

Independent Non-Executive Director

Independent Non-Executive Director

Independent Non-Executive Director

KEY SENIOR MANAGEMENT’S PROFILES

From left to right:

In February 2021, he joined AIMFLEX and assumed the current role.

KEY SENIOR MANAGEMENT’S PROFILES

Key Senior Management

Key Senior Management

BUSINESS AND OPERATIONS Cont’d

We wish to highlight the following major corporate events: -

MARKET OUTLOOK AND FUTURE PROSPECT

Dato’ (Dr.) Ts. Awang Daud Bin Awang Putera

Tee Sook Sing

MANAGEMENT DISCUSSION AND ANALYSIS

Review of Financial Performance

FY2021 FY2020 Variance

MANAGEMENT DISCUSSION AND ANALYSIS

Overall Geographical Markets

FY2021 FY2020 Variance

MANAGEMENT DISCUSSION AND ANALYSIS

Manufacturing Distribution Total

Profit and Tax

FY2021 FY2020 Variance

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Position Review

2021 2020 Variance

Equity 77,650 71,286 6,364 8.9

Current and Non-Current Liabilities

Liquidity and capital reserves

MANAGEMENT DISCUSSION AND ANALYSIS

Share Price Performance

Operational and financial risks with mitigating strategies

Risk of dependence on our major customers

Foreign currency risk

MANAGEMENT DISCUSSION AND ANALYSIS

Forward Looking Statement

Whistleblower Policy & Procedure

GRIEVANCE MECHANISM Cont’d

SUSTAINABILITY COMMITMENTS AND TARGETS

The SDGs attained by AIMFLEX are as follows:-

UNSDG OBJECTIVES TARGET STATUS

SUSTAINABILITY COMMITMENTS AND TARGETS Cont’d

The SDGs attained by AIMFLEX are as follows:- Cont’d

UNSDG OBJECTIVES TARGET STATUS

1. Sustainability and Certification. 1. Certified Quality Management System ISO

SUSTAINABILITY COMMITMENTS AND TARGETS Cont’d

The SDGs attained by AIMFLEX are as follows:- Cont’d