Business Overview

Company No. 1121987-DJ Company No. 1121987-DJ 5. INFORMATION OF OUR GROUP 5.1 Our history and business Our Company was incorporated in Malaysia under the Companies Act, 1965 on 9 December 2014 as a private limited company under the name of Cabnet Holdings Sdn Bhd. Subsequently, on 14 September 2015, we converted into a public limited company and assumed our present name to facilitate our Listing. We had undertaken the Restructuring Exercises prior to our Listing, details of which are set out in Section 5.5 of this Prospectus. Cabnet Systems, ITWin, Cabnet Technology and Cabnet Penang became our subsidiary companies pursuant to the Restructuring Exercise. Through our subsidiary companies, we are principally involved in the provision of building management solutions, where our core business segments comprise structured cabling works and ELV systems for buildings and other facilities such as seaports and public roads. We also provide IT services which can be offered as complementary to our building management solutions or offered separately on a standalone basis. Our Group’s customers comprise mainly building contractors who have been engaged to carry out building or construction work and to a lesser extent building owners and building operators who are responsible to perform daily building operation tasks such as ensuring the functionality of mechanical and electrical systems (including air-conditioning, escalators, lifts, lightings and etc.) and maintenance of buildings. Our history can be traced back to 1995 when Cabnet Systems was founded by Tay Hong Sing, Tan Boon Siang and Lee Kok Hui2 with equal shareholding with the intention to carry out structured cabling business in the commercial property segment and industrial property segment in Johor. At that point in time, the management of Cabnet Systems targeted the commercial property segment and industrial property segment in Johor without specific sub­segment targets. Due to Tay Hong Sing’s past involvement in ICT related business (e.g. design of server and provision of network solution, details of which is as disclosed in Section 8.1.2 of this Prospectus), our founders saw the potential of ICT business following the development and proliferation of ICT in Malaysia in the mid-1990s. Notwithstanding Cabnet Systems’ focus was on structured cabling business, Cabnet Systems tried to venture into analogue-based surveillance systems under the ELV systems business in 1995. However, Cabnet Systems was unable to secure any contracts in analogue-based surveillance systems. Our first major project was structured cabling works for Kiswire Sdn Bhd, a subsidiary of Kiswire Ltd (a Korean multinational company in the steel industry) and manufacturer of steel wire products with operations in Johor Bahru, in 1995. This experience served as a springboard for us to expand our customer base in Johor Bahru to include stockbroking companies, such as Peninsula Securities Sdn Bhd in 1995, South Johor Securities Sdn Bhd in 1996 and Eng Securities Sdn Bhd in 1999. We had been engaged by these stockbroking companies for structured cabling works for their respective branches. 2 Lee Kok Hui is a businessman who is not related to our Promoters. He was invited to invest in Cabnet Systems due to his experience in analogue-based surveillance systems. Lee Kok Hui was primarily responsible for the marketing and sales activities of analogue-based surveillance systems. 5. INFORMATION OF OUR GROUP (CONT’O) Following our track record of project completion in Johor, we expanded our business and incorporated Cabnet Technology in 1997, where 70% equity interest in this company was held by Cabnet Systems and the remaining 30% was held by l’Jg Kar Khim. Cabnet Technology operated an office in Subang Jaya, Selangor, to source structured cabling business from stockbroking companies in the central region of Peninsular Malaysia. SUbsequently in 1998, Yong Kok lVleng4 subscribed for new shares in Cabnet Technology, thereby resulting in Cabnet Systems holding 52% while Ng Kar Khim and Yong Kok Meng each holding 24% of the equity interest in Cabnet Technology. In 1999, Lee Kok Hui disposed 18.33% of his shares in Cabnet Systems to Tay Hong Sing and Tan Boon Siang as he left Cabnet Systems to pursue a construction-related business venture. This resulted in the shareholding of Tay Hong Sing, Tan Boon Siang and Lee Kok Hui to be at 42.5%, 42.5% and 15% respectively. In 2000, Tan Tian Yee became a shareholder of Cabnet Systems when Tay Hong Sing and Tan Boon Siang each disposed 2.5% of their equity interest in Cabnet Systems to him. Tan Tian Yee joined Cab net Systems as a Project Executive since its commencement of business and was responsible for overseeing structured cabling projects undertaken by Cabnet Systems. He was offered equity in Cabnet Systems as part of a staff retention programme. In line with Cabnet Systems’ expansion, Cabnet Systems diversified its business to include a broader range of services in order to meet the needs of the market. In 2000, Cabnet Systems leveraged on Tan Boon Siang’s past experience in the ICT industry (e.g. repairing, servicing, installation of computer and communication devices, details of which is as disclosed in Section 8.1.2 of this Prospectus) to further expand its service portfolio from structured cabling into digital-based surveillance systems under the ELV systems business. Cabnet Systems decided to pursue the digital-based surveillance systems business due to the increasing demand for building security as the digital-based surveillance systems provides clearer images (as compared to analogue-based surveillance systems) and remote monitoring. Cabnet Systems was awarded with its first digital-based surveillance systems contract under the ELV systems business in 2000 to install a digital video surveillance system for B.M. Nagano Industries Sdn Bhd, a company which is involved in the manufacturing, warehousing, trading of electronic products, light emitting diode lightings (LED) and turnkey projects in Johor. Cabnet Systems made its first foray to Brunei Darussalam in 2000 where Cabnet Systems was engaged for the installation of structured cabling for a satellite broadcasting system at Brunei International Convention Centre which hosted the 1ih Asia Pacific Economic Cooperation (“APEC”) Ministerial Meeting from 12 to 13 November 2000. During the period between 2002 and 2005, Cabnet Systems undertook its first few public sector projects in relation to structured cabling works for the Anti-Corruption Agency Centre (now known as Malaysian Anti-Corruption Commission, “MACC”) in Seremban, Negeri Sembilan, and Akademi Audit Negara in Nilai, l’Jegeri Sembilan. In 2003, Cabnet Systems acquired the remaining equity interest of 48% in Cabnet Technology from Ng Kar Khim and Yong Kok Meng. Ng Kar Khim and Yong Kok lVleng left Cabnet Technology to pursue other business ventures. Thereafter, Cabnet Technology became a wholly-owned subsidiary of Cabnet Systems. 3 Prior to the incorporation of Cabnet Technology, Ng Kar Khim was under employment in another company and he is not related to the Promoters of our Group. He was invited to invest in Cabnet Technology as Cabnet Technology intended to leverage on his business contacts in Kuala Lumpur to source business in the central region of Peninsular Malaysia. He was involved in marketing and sales activities in Cabnet Technology. 4 Prior to the incorporation of Cabnet Technology, Yong Kok Meng was under employment in another company and he is not related to the Promoters of our Group. He was invited to invest in Cabnet Technology as Cabnet Technology intended to leverage on his business contacts in Kuala Lumpur to source business in the central region of Peninsular Malaysia. He was involved in marketing and sales activities in Cabnet Technology. II Company No. 1121987-0 II

5. INFORMATION OF OUR GROUP (CONT’D) In the same year, Cabnet Systems secured a contract as a sub-contractor for Pernec Technologies Sdn Bhd for the design, supply, installation, testing, commissioning and maintenance of ELV systems and structured cabling for the Customs, Immigration and Quarantine (“CIQ”) Complex in Johor Bahru, Johor. In April 2004, the business under Cabnet Technology was taken over by Cabnet Systems, as Cabnet Systems intended to consolidate Cabnet Technology’s business operations within Cabnet Systems while still continuing to provide services to stockbroking companies in central region of Peninsular Malaysia subsequent to the departure of Ng Kar Khim and Yong Kok Meng. Cabnet Technology has remained dormant since then. Cabnet Systems received its MSC Malaysia status from MDEC in 2007. Further in 2007, Cabnet Systems was granted pioneer status by MITI for a period of five (5) years commencing on 8 August 2007 which was subsequently extended for additional five (5) years to 7 August 2017. The pioneer status allows us to enjoy the full tax exemption on statutory income derived from the ELV systems and structured cabling works segments. Upon expiry of this pioneer status on 7 August 2017, Cabnet Systems will cease to enjoy the tax exemption benefit granted under the pioneer status, and will be taxed at the prevailing tax rate. On 16 August 2007, Cabnet Penang was incorporated by Cabnet Systems and Lim Yong An5 with equal shareholding. SUbsequently, additional shares were allotted to Cabnet Systems and Lim Yong An on 27 September 2007, which resulted in Cabnet Systems holding an equity interest of 60% and Lim Yong An holding the remaining 40% equity interest. This allowed Cabnet Systems to expand to and target companies based in Kedah and Penang. During this period, Cabnet Penang was awarded a contract by Bakat Industri Sdn Bhd to undertake structured cabling works for First Solar Malaysia Sdn Bhd and was awarded a contract by Siemens Malaysia Sdn Bhd to undertake ELV systems project for Infineon Technologies (Kulim) Sdn Bhd’s factories in Kulim, Kedah. In 2008, Cabnet Systems acquired 51 % equity interest in ITWin, an IT solutions provider and systems integration firm, from Yuan Ting Wei, Tan Ying Meng, Ho Chee Hong and Chin Hoon Lim. With the continued advancement of ICT in the market, this was a strategic acquisition as it allowed Cabnet Systems to broaden its range of services through the offering of storage solutions, network solutions, server solutions and enterprise system integration services to complement the then existing structured cabling works and ELV systems business, thereby allowing Cabnet Systems to offer additional services such as server virtualisation, data centre solutions, network design and deployment, network management and network security, enterprise messaging solution and wireless networking solution. In the same year, Tan Ying Meng disposed 8% of his equity interest in ITWin to Koh Thain Lin. The abovementioned share disposals resulted in Cabnet Systems holding 51 % equity interest in ITWin, while the remaining 49% was held by Tan Ying Meng (i.e. 23%), Ho Chee Hong (i.e. 10%), Chin Hoon Lim (i.e. 8%) and Koh Thain Lin (i.e. 8%). Lee Kok Hui ceased to be a shareholder of Cabnet Systems in 2008 to pursue other business opportunities overseas. Lee Kok Hui disposed his entire shareholding to Tay Hong Sing and Tan Boon Siang, resulting in each of these individuals owning 47.5% of the equity interest in Cabnet Systems, while the remaining equity interest was held by Tan Tian Yee. 5 Lim Yong An is a Penang-based businessman who is not related to the Promoters of our Group. He was invited to invest in Cabnet Penang as he is based in Penang and due to his past experience in performing sales and marketing functions. As such, Lim Yong An was primarily responsible to spearhead the expansion of Cabnet Penang. 5. INFORMATION OF OUR GROUP (CONT’O) Further in 2009, Cabnet Systems secured a contract for structured cabling works and ELV systems for PT. Toyoplas Manufacturing Indonesia, a private company which is an integrated solutions provider of moulds engineering and precision plastic components with a production facility in Indonesia. In 2010, as part of Cabnet Systems’ continuous efforts to achieve total customer satisfaction, Cabnet Systems was certified compliant to ISO 9001 :2008 (“ISO 9001 :2008 and BS EN ISO 9001 :2008″) for the provision of structured cabling works and ELV systems by Intertek Certification Ltd, an independent testing, inspection and certification body credited by United Kingdom Accreditation Services (UKAS) to assess organisations that provide certification, testing, inspection and calibration services. Besides testing, inspecting and certifying products, Intertek Certification Ltd is also a total quality assurance provider to industries worldwide. Intertek Certification Ltd is located in over 100 countries, including Malaysia, where they operate through ITS Testing Services (M) Sdn Bhd and Intertek Certification International Sdn Bhd. The remaining 40% equity interest in Cabnet Penang was subsequently acquired in 2011 by Cabnet Systems from Lim Yong An as Lim Yong An decided to venture into his own business, resulting in Cabnet Penang becoming a wholly-owned subsidiary of Cabnet Systems. In 2012, Cabnet Systems acquired a three (3)-storey shop office property at Puchong Square, Bandar Puchong Jaya, Selangor, and relocated its central region operations to this premise. Further, Cabnet Systems secured a contract with Apro Technology Pte Ltd, a customised security solutions provider based in Singapore that operates in the security services industry for the installation of ELV systems in the Klang Valley. In 2012, Cabnet Systems was able to secure contracts for high-rise buildings in the residential property segment and commercial property segment which include condominiums, office towers and hotels, to diversify and increase Cabnet Systems’ revenue. In this respect, Cabnet Systems was appointed to carry out several residential property segment and commercial property segment high-rise building ELV projects in 2012 and 2013, which amongst others, include the installation of ELV systems for DoubleTree by Hilton Hotel Johor Bahru and D’Summit Apartment Phase 1 in Kempas, Johor. In 2013, Cabnet Systems further secured contracts for structured cabling works for DoubleTree by Hilton Hotel Johor Bahru as well as Platino Apartment in Johor Bahru and D’Summit Apartment Phase 2 in Kempas, Johor. Cabnet Systems was awarded these projects by the building contractors. Please refer to Sections 6.1.1.1 and 6.1.1.2 on the details of these projects under the list of major projects undertaken by our Group. Subsequently in 2014, Cabnet Systems was awarded with contracts to install ELV systems as well as structured cabling works for Holiday Villa Johor Bahru and Pinetree Marina Resort, Johor. Cabnet Systems also secured major projects to install ELV systems for The Meridin @ Medini and One Sentral Services Residences, Johor in 2014. In the IT services business, ITWin secured its first project in the oil and gas industry with Pengerang Independent Terminals Sdn Bhd, an independent oil storage terminal located in Pengerang, as well as Biocon Sdn Bhd6 and Clay Industries Sdn Bhd7 in 2014. 6 Biocon Limited is the parent company of Biocon Sdn Bhd. Biocon Limited is an India-based biotech company. Bioeon Sdn Bhd is an integrated insulin production company with a manufacturing and research facility in Johor. 7 Clay Industries Sdn Bhd is a sanitary ware manufacturer in Johor.
[I Company No. 1121987-0 II
5. INFORMATION OF OUR GROUP (CONT’D) On 20 January 2015, Tay Hong Sing, Tan Boon Siang and Tan Tian Yee disposed 7%, 6.85% and 0.15% of their respective equity interests in Cabnet Systems to Kong Tze Senn, Sim Yian Fei and Ng Jun Lip, thereby resulting in these shareholders / key management personnel holding 6%, 6% and 2% respectively of the equity interest in Cabnet Systems. The disposal was intended to provide an opportunity for our key management to own shares in Cabnet as part of our plan to retain the key management. At that time, Ng Jun Lip was the Finance Director of Cabnet Systems and relinquished his position in March 2017. The shareholdings of Tay Hong Sing, Tan Boon Siang and Tan Tian Yee in Cabnet Systems after the disposal were 40.5%, 40.65% and 4.85% respectively. Please refer to Section 5.1.1 for further details on shareholding movement of the Group. In the same year, our Group undertook the Restructuring Exercises prior to our Listing that resulted in Cabnet Systems, ITWin, Cabnet Technology and Cabnet Penang becoming our subsidiary companies. Please refer to Section 5.5 of this Prospectus for further details on the Restructuring Exercises. Our Group had on 1 February 2016, submitted an application for the striking off of Cabnet Technology to the CCM, as Cabnet Technology had remained dormant since 2004, of which the decision is still pending from CCM. CCM had issued second notice under Section 308 of the Companies Act, 1965 on 7 October 2016. The striking off process will be deemed completed upon issuance of the third notice under Section 549 of the Act and a gazette by CCM. There is no definite time frame as it is dependent on the processing time by CCM. Netposa had approached Cabnet for the collaboration in offering its video monitoring solutions and had on 14 March 2016, entered into a Share SUbscription Agreement with our Company to subscribe for 12,450,000 new Cabnet Shares, representing 11.42% of the enlarged issued share capital of Cabnet as at 14 March 2016. In addition, NetPosa had, on 14 March 2016, entered into a Share Sale Agreement with the existing shareholders of Cabnet to purchase 13,550,000 Cabnet Shares, representing 12.43% of the issued share capital of Cabnet as at 14 March 2016. The execution of the aforementioned Share Subscription Agreement and Share Sale Agreement has resulted in NetPosa being a substantial shareholder of our Company. The NetPosa Investment, consideration of which was fUlly settled by cash on 1 April 2016, was made at the request of Cabnet to demonstrate NetPosa’s commitment under the Collaboration Agreement by being a shareholder of our Company. As part of our future plan to provide building management solutions for township, district and state level where we intend to connect the various security systems in multiple buildings with monitoring and analytical capabilities (e.g. vehicle count, people count, crowd detection, illegal parking and etc.) that is targeted at township, district, and state level, we had entered into the Collaboration Agreement with NetPosa to assist and support NetPosa in customising the NetPosa China’s Products for purposes of the Malaysian market by translating the information, including technical terms, contained in the NetPosa China’s Products from Mandarin to English, to promote, sell and supply the NetPosa China’s Products in Malaysia together with the services and solutions provided by our Group, to provide to NetPosa with Malaysian market feedback and Malaysian market information relating to the NetPosa China’s Products and to install the NetPosa China’s Products for orders secured directly by NetPosa or NetPosa China and at the same time offer our Group’s services and solutions to NetPosa’s or NetPosa China’s customers, details of which are set out below and Section 6.14 (ii) of this Prospectus. NetPosa is an investment holding company, details of which are set out in Section 8.1.2(i) of this Prospectus, while its parent company, NetPosa China, is principally engaged in video processing technologies and provides video monitoring solutions and high­quality video storage products, details of which are set out in Section 8.1.2 (iii) of this Prospectus. II Company No. 1121987-0 ~ 5. INFORMATION OF OUR GROUP (CONT’D) The management of our Group is of the view that the collaboration with NetPosa presents an opportunity for our Group to further tap into the potential growth in security systems integration as our Group can leverage on the NetPosa China’s Products that has a proven track record. Further, the management of our Group is of the view that NetPosa China’s Products will further broaden our Group’s solutions and services offering as disclosed in Section 6.18.1 (iii) of the Prospectus. Over the past 20 years, our Group has progressed from a local provider of structured cabling works for small to medium-sized projects (i.e. with contract value of no more than RMO.5 million for structured cabling projects), to a building management solutions provider for major projects (as detailed in Sections 6.1.1 and 6.1.2) in structured cabling works and ELV systems, as well as IT services projects. Our Group began to secure major projects on a regular basis since 2012 due to increase in development of residential and commercial properties, although prior to 2012 we have also secured major projects on several occasions. Our Group has also established a track record of project completion with project experience in Malaysia, Brunei Darussalam and Indonesia. Please refer to Section 5.8 of this Prospectus for our key milestones, awards and recognition. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] ~ompany No. 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’D)

 

5.1.1 Summary of changes in shareholding movement of the companies within the Group The summary of the changes in substantial shareholders and the percentage of shareholdings since the date of inception of Cabnet and its subsidiary companies are as follows:  Cabnet  18 May 2015 1 September 2015  rSubdivision of shares -Allotment of 89,999,980 36,584,990 new Cabnet Shares Shares pursuant to Acquisition l36,449,990 of Cabnet Systems Shares 4,365,000  new new new  Pang Kim Pel Leow Chwee Nee Panq Kim Pei Leow Chwee Nee Cabnet Tan Boon Siang Cabnet Tay Hong Sing Cabnet I Tan Tian Yee-­
Shares  5,400,000 Shares  new  Cabnet  5,400,000 Shares  new  Cabnet  1,800,000 Shares  new  Cabnet
Kong Tze Senn Sim Yian Fei Ng Jun Lip Pang Kim Pei Leow Chwee Nee I,company No. 1121987-0 1 1 I 10 10 I 36,584,990  50.0 I 50.0 I  2 20  36,449,990 I  40.50  4,36s.-0061  4.85  5,400,000 I  6.0  5,400,000 I  6.0  1,800,000 I  2.0  10 I 10 I  -* -..  90,000,000
5. INFORMATION OF OUR GROUP (CONTD)
Shares and cash of RM127,600 1,069,400 new Cabnet I Koh Thain Lin I 1,069,400 I 1.12 Shares and cash of RM102,000 1,069,400 new Cabnet I Chin Hoon Lim Shares and cash of RM102,000 Tan Boon Siang Tay Hong Sing Tan Tian Vee Kong Tze Senn Sim Yian Fei Ng Jun Lip Pang Kim Pei Leow Chwee Nee 1,069,400 I 1.12 36,584,990 36,449,990 4,365,000 5,400,000 5,400,000 1,800,000
37.89  37.75  4.52  5.59  5.59  1.86
10 ..10 I ­96,550,000 pany No. 1121987-0 5. INFORMATION OF OUR GROUP (CONT’O)
1 April 2016 Chwee Nee Transfer of 10 Cabnet Shares from Pang Kim Pei Allotment of 12,450,000 new  Cabnet  Shares  pursuant  to  Share  Subscription  Agreement
96,550,000 109,000,000 Company No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONT’D)
7 April 2016 NetPosa 26,000,000 23.85 Cabnet Shares from Tan Boon Sian Transfer of 3,850,000 I Cash of RM2, 117,500 Cabnet Shares from Tav Hona Sin Transfer of 1,365,000 I Cash of RM750,750 Cabnet Shares from Tan Tian Vee Transfer of 1,400,000 I Cash of RM770,000 Cabnet Shares from Kana Tze Senn Transfer of 1,400,000 I Cash of RM770,000 Cabnet Shares from Sim Yian Fei Transfer of 1,074,400 I Cash of RM590,920 Cabnet Shares from Tan Yinq Men Transfer of 336,800 I Cash of RM185,240 Cabnet Shares from Ho Chee Han Transfer of 69,400 I Cash of RM38, 170 Cabnet Shares from Koh Thain Lin Transfer of 69,400 I Cash of RM38, 170 Cabnet Shares from Chin Hoon Lim Transfer of 3,985,000 I Cash of RM2,191,750 109,000,000 Company No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONTD)
32,600,000 29.91Tan Boon Siang Tay Hong Sing 32,600,000 29.91 2.75Tan Tian Vee 3,000,000 4,000,000Kong Tze Senn 3.67 r 3.67Sim Yian Fei 4,000,000 I 1.651,800,000Ng Jun Lip 2,000,000 1.83Tan Ying Meng 0.92Ho Chee Hong 1,000,000 0.921,000,000Koh Thain Lin 0.92Chin Hoon Lim 1,000,000 109,000,000 Note:­ Negligible  [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
Company No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONT’D) Cabnet Systems Cash of RM1  Lee Kok Hui  Cash of RM1  Tay Hong Sing  Cash of RM1  Tan Boon Siang  33,332 I Cash of RM33,332  Lee Kok Hui
1 1 1I .=>.=> •.=>.=> I3 14 June 1996 I Allotment of 33,333 new shares in Cabnet S stems Allotment of 33,333 Cash of RM33,333 Tay Hong Sing 33,334 I 33.34 new shares in Cabnet Systems Allotment of 33,332 Tan Boon Siang 33,333 I 33.33Cash of RM33,332 I new shares in Cabnet
Systems I I I 100,000 21 August 1998 I Allotment of 66,667 Capitalisation of debt due Lee Kok Hui 100,000 I 33.33I new shares in Cabnet Systems Allotment of 66,6661 I Tay Hong Sing 100,000 I 33.34 new shares in Cabnet S stems Allotment of 66,667 ITao Booo 8;ao9 100,000 . 33.33 new shares in Cabnet SYstems I 300,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
~mpany No. 11219 5. INFORMATION OF OUR GROUP (CONTO) of shares in Cabnet Systems from Lee Kok
Transfer of 27,500 I Cash of RM27,500 I Tay Hong Sing 127,500 I 42.50 shares in Cabnet Systems from Lee Kok Hui Lee Kok Hui

~u;I 45,0001=~1 300,000 16 June 2000 I Transfer of 7,500 I Cash of RM7,500 I Tan Tian Vee 15,000 5.0 shares in Cabnet Systems from Tan Boon Sian Transfer of 7,500 I Cash of RM7,500 shares in Cabnet Systems from Tay Hona Sing ! Tan Boon Siang 40.0120,000 120,000 40.0Tay Hong Sing 45,000 15.0Lee Kok Hui 300,000 ! [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [i0mpany No. 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’O)
23 May 2006 I Allotment of new shares in Systems Allotment of new shares in S stems Allotment of new shares in S stems Allotment of new shares in S stems 25 September 2007 I Allotment of new shares in Systems Allotment of new shares in Allotment of
!;rm ,new shares in S stems Allotment of new shares in SYstems 80,000 I Cash of RM80,000 I Tay Hong Sing 200,000 I 40.0 Cabnet
I 80,000 rCash of RM80,000 I Tan Boon Siang 1 200,000 I 40.0 Cabnet
30,000 Cash of RM30,000 Lee Kok Hui 75,000 15.0 Cabnet
10,000 Cash of RM1 0,000 Tan Tian Vee 25,000 I 5.0 Cabnet I 1-500,000 75,000 Cash of RM75,000 Lee Kok Hui ~ 150,000 I 15.0 Cabnet
200,000 I Cash of RM200,000 n-ay Hong Sing I 400,000 I 40.0 Cabnet 200,000 I Cash of RM200,000 I Tan Boon Siang 400,000 I 40.0 Cabnet 25,000 Cash of RM25,000 5.0ITan Tian Vee 50,000 ,-Cabnet I 1,000,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 5. INFORMATION OF OUR GROUP (CONT’D)

1 July 2008 I Transfer of 75,000 I Cash of RM150,000 I Tay Hong Sing 475.000 I 4750 shares in Cabnet Systems from Lee Kok Hui Transfer of 75,000 ICash of RM150,000 l–=rarl Boon Siang I 475,000 I 47.50 shares in Cabnet Systems from Lee Kok Hui Tan Tian Vee 50,000 5.0 1,000,000 20 January 2015 I Transfer of 60,000 I Cash of RM600,000 I Sim Yian Fei 60,000 6.0 shares in Cabnet Systems from Tay Han Sin Transfer of 10,000 Cash of RM100,000 Kong Tze Senn 60,000 I 6.0 shares in Cabnet Systems from Tay Hong Sing Transfer of 50,000 fcash of RM500,000 shares in Cabnet Systems from Tan Boon Sian Transfer of 18,500 fCash of RM185,000 I Ng Jun Lip 1-20,000 I 2.0 shares in Cabnet Systems from Tan Boon Sian Transfer of 1,500 I Cash of RM 15,000 shares in Cabnet Systems from Tan Tian Vee Tay Hong Sing 405,000 40.5 406,500 40.65Tan Boon Siang Tan Tian Vee 48,500 4.85 I 1,000,000 II Company No. 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’D)
shares in Cabnet Cabnet Shares Systems from Tay Han Sin Transfer of 406,500 Allotment of 36,584,990 new shares in Cabnet Cabnet Shares Systems from Tan Boon Sian Transfer of 48,500 Allotment of 4,365,000 new shares in Cabnet Cabnet Shares Systems from Tan Tian Yee Transfer of 60,000 Allotment of 5,400,000 new shares in Cabnet Cabnet Shares Systems from Kong Tze Senn Transfer of 60,000 Allotment of 5,400,000 new shares in Cabnet Cabnet Shares Systems from Sim Yian Fei Transfer of 20,000 I Allotment 1,800,000 new shares in Cabnet Cabnet Shares Systems from Ng Jun liD 1,000,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [company No 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’O) Cabnet Technology Cash of RM7  Cabnet Systems  Cash of RM3  Ng Kar Khim  Cash of RM103,993  Cabnet Systems
7Subscriber shares Subscriber shares 31 30.0 I 4 February 1998 1 Allotment of 103,993 104,000 new shares in Cabnet Technolo Allotment of 47,997 I Cash of RM47,997 rNg Kar Khim I 48,000 I 24.0 new shares in Cabnet Technolo Allotment of 48,000 leash of RM48,000 Yong Kok Meng 48,000 1 24.0 new shares in Cabnet Technolo 200,000I 20 September 1999 I Allotment of 52,000 Cash of RM52,000 Cabnet Systems 1-156,000 I-52.0 new shares in Cabnet Technolo Allotment of 24,000 leaSh of RM24,000 I Ng Kar Khim I 72,000 I 24.0 new shares in Cabnet Technolo ~mpany No. 1121987-D II Allotment  of  24,000  Cash of RM24,000  Yong Kok Meng  72,000 I  24.0  new  shares  in  Cabnet  31 December 2003  Technolo I Transfer  of  72,000  Cash of RM72,OOO  Cabnet Systems  1­ 300,000 I­ 100.0  I  300,000  shares  in  Cabnet  Technology  from  Ng  Kar Khim Transfer  of  72,000 I Cash of RM72,OOO  shares  in  Cabnet  Technology from Yong  Kok Mena  1  300,000

5. INFORMATION OF OUR GROUP (CONT’D) Cabnet Penang
16 August 2007 I Subscriber shares Cash of RM1 Subscriber shares Cash of RM1 27 September ~tment of 39,999 new rCash of RM39,999 2007 shares in Cabnet Penan Allotment of 59,999 new Cash of RM59,999 shares in Cabnet Penang 4 August 2011 I Transfer of 40,000 Cash of RM40,000 shares in Cabnet Penang from Lim Yang An I Lim Yang An I Cabnet Systems I2 !Um Yang An Cabnet Systems  60,000 I  60.0  ~  I  100,000  Cabnet Systems  100,000  100.0
100,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0 II
5. INFORMATION OF OUR GROUP (CONT’O) ITWin
3 August 1998 22 January 2001 25 June 2001 1 April 2003 rAllotment of 24,999 new shares in ITWin Allotment of 24,999 new shares in ITWin I Transfer of 25,000 shares in ITWin from Yeow Leong Swee I Transfer of 25,000 shares in ITWin from Tan Yin Boon Transfer of 25,000 shares in ITWin from Tan Yina Men Cash of RM24,999 Cash of RM24,999 Cash of RM25,000 I Cash of RM25,000 Cash of RM25,000 Tan Ying Meng Yeow Leong Swee Tan Ying Boon I Tan Ying Meng 1­Low Peter @ Low 1­Chong Ming Tan Ying Meng Ho Chee Hong Low Peter @ Low I Chong Ming 25,000 I—~ 25,000 50.0 I 50,000 50.025,000 25,000 ~ 50.0 I 50,000 25,000 50.0 25,000 ~-50.0 I 50,000 25,000 50.0 25,000 I 50.0 50,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
~mpany No. 1121987-D j 5. INFORMATION OF OUR GROUP (CONT’D)
3 July 2003 4 January 2005 14 February 2005 L
I Transfer of 12,500 I Cash ofRM12,500 I Tan Ying Meng 25,000 I 50.0 shares in ITWin from Ho Chee Han Transfer of 12,500 leash of RM12,500 shares in ITWin from Low Peter @ Low Chong Ming I Ho Chee Hong 12,500 250 Low Peter @ Low 12,500 25.0 Chong Ming I 50,000 I Transfer of 5,000 shares Cash of RM5,000 Tan Ying Meng 30,000 60.0 in ITWin from Low Peter L@ Low Chong Ming Cash of RM7,500 Ho Chee Hong 20,000 40.0 J 50,000 I Transfer of 7,500 shares I Cash of RM7,500 , ___ ,_______ , Cash of RM5,000 I Yuan Ting Wei 5,000 10.0 25,000 50.0I~an Ying Meng f ~ I~ Ho Chee Hong 12,500 25.0 I 50,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
l[COffipany No. 1121987-0 ~ 5. INFORMATION OF OUR GROUP (CONTD) Transfer of 5,000 shares in ITWin from Wong Wai Pen Transfer of 2,500 shares Cash of RM2,500 Ho Chee Hong 17,500 I 35.0 in ITWin from Wong Wai Peng I Transfer of 2,500 shares Cash of RM2,500 in ITWin from Tan Ying Meng I 50,000 1 January 2008 I Transfer of 5,000 shares I Cash of RM80,000 in ITWin from Yuan Ting Wei Transfer of 1,000 shares I Cash ofRM16,000
in ITWin from Chin Hoon Lim Transfer of 12,500 I Cash of RM200,000 shares in ITWin from Ho Chee Han Transfer of 7,000 shares I Cash of RM161 ,000 in ITWin from Tan Ying Meng
Tan Ying Meng 31.0 Ho Chee Hong 15,500 5,000 10.0 Chin Hoon Lim 4,000 8.0 ! 50,000 Tan Ying Meng  22,500  45.0  Yuan Ting Wei  5,000  10.0 1 51.0 I Cabnet Systems  25,500
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
pany No. 1121987-0 I 5. INFORMATION OF OUR GROUP (CONT’D) 9 April 2008 I Transfer of 4,000 shares I Cash of RM42,000 I Koh Thain Lin I 4,000 I 8.0 Allotment of 20,000 new I rKoh Thain Lin I 24,000 I 8.0 shares in ITWin Allotment of 127,500 I Cabnet Systems 153,000 I 51.0 new shares in ITWin I I 300,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] in ITWin from Tan Ying MenI -I Cabnet Systems I­~ 28 October 2009 I Allotment of 25,000 new shares in ITWin Allotment of 57,500 new shares in ITWin Allotment of 20,000 new shares in ITWin Tan Ying Meng  Ho Chee Hong  Chin Hoon Lim  Other  than  cash  (in I Ho Chee Hong  satisfaction  of  a  dividend
declared  in  favour of,  but I Tan Ying Meng  I  69,000 I  23.0  not payable in cash to, the  shareholders)  I Chin Hoon Lim  I  24,000 I  8.0
25,500 I 51.0 11,500 5,000 4,000 30,000 23.0 10.0 s:oI 50,000 10.0 Company No. 1121987­5. INFORMATION OF OUR GROUP (CONT’D)
2 September 2015 I Transfer of 30,000 shares in ITWin from Ho Chee Hong Transfer of 69,000 shares in ITWin from Tan Ying Meng Transfer of 24,000 shares in ITWin from Chin Hoon Lim Transfer of 24,000 shares in ITWin from Koh Thain Lin Cash of RM127,600.00 and I Cabnet I 147,000 I 49.0 allotment of 1,336,800 new Cabnet Shares Cash of RM293,400.00 and allotment of 3,074,400 new Cabnet Shares Cash of RM102,000.00 and allotment of 1,069,400 new Cabnet Shares Cash of RM102,OOO.00 and allotment of 1,069,400 new Cabnet Shares Cabnet Systems 153,000 I 51.0 I I 300,000 [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 5. INFORMATION OF OUR GROUP (CONT’O)
5.2 Share capital As at the LPD, our issued share capital is set out below:­
Upon completion of the Public Issue, our enlarged issued share capital will be increased to RM22,660,000 comprising 130,000,000 Cabnet Shares. Details of the changes to our issued share capital since incorporation are set out below:­
Ordinary shares 9 December 2014 18 May 2015 1 September 2015 2 September 2015 1 April 2016 2 20 89,999,980 6,550,000 12,450,000 Cash paid for subscribers’ shares Subdivision of shares(1) Shares issued for the Acquisition of Cabnet Systems Shares issued for the Acquisition of ITWin Cash paid for new Cabnet Shares subscribed by NetPosa 2 2 9,000,000 9,655,000 10,900,000 (1) On 18 May 2015, our Company implemented a subdivision of shares where every one (1) ordinary share in the Company was subdivided into ten (10) ordinary shares in Cabnet. None of the Cab net Shares as tabulated above were issued on special terms or instalment payment terms. As at the LPD, neither our Company nor our subsidiaries has any outstanding warrants, options, convertible securities or uncalled capital. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [ Company No. 1121987-0 ] 5. INFORMATION OF OUR GROUP (CONT’D) 5.3 Our Group structure The Group structure as at the LPD is as follows:­After the Restructurina Exercises Tan Boon Siang
37.9% Kong Tze Senn 5.6% Tay Hong Sing 37.8% Chin Hoon Lim@
~ J””Up” I 1.9% Sim Yian Fei 5.6% ~­Tan Tian Yee@ 4.5% Koh Thain Ho Ch.ee Lin#Hong@ 1.4% 1.1%11.1% Cabnet  .,.  49.0%  I  ITWin  51.0%
Tan Ying Meng#
3.1% I 100.0%..
Cabn.et Systems 100.0%•
Cabnet Technology* I ~­~ Cabnet Penang [company No. 1121987-0 ~ 5. INFORMATION OF OUR GROUP (CONT’D) After the RestructurinCl Exercises and NetPosa Investment Tan Boon Siang  [  Tay Hong Sing  Ng Jun Lip”  Sim Yian Fei  Tan Tian Yee@  29.9%  29.9%  1.7%  3.7% ,.  2.8%  Kong TZE? Senn Chin Hoon Lim@ 3.7% 10.9% NetPosa I 23.8%  Ho Chee Koh Thain Hong@ Lin# 0.9% I 0.9% I Tan Ying Meng# 1.8% I  ~­ yo ITWin  49.0%  Cabnet 51.0%  100.0% yo Cabnet Systems  100.0% ..  –.  Cabnet Technology*  Cabnet Penang
~any No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONT’D) After the RestructurinQ Exercises, NetPosa Investment and Public Issue Tan Soon §i§DQ  T§y b1png Sing  Ng ~un Lip”  §Jrn Yi§n Fei  II····  T§D Ti§nYee@  f?·auline Loh Yen f?ing  I  25.1%  25.1%  “1.4%  “3.2%  “2.4%  @£­ Kong T~e Senn “3.2% T§n Ying Meng# 11.7%  1  C.hin Hoon Lim@ l”‘O.8oJa 20.0%  ••  Ho Ch.ee Hong@ “0.8%  Koh Thain Linll 0.8% Qther pu91i9 ~h§reholc:ler$ “1!i ()%I  I  IncJePeDcJent qire.ctors 0.4%  • ITWin  49.0% I~  Catmet 51.0% 100.01  100.0%• Cabnet Systems  100.0% 9  Ca,bnet Technology*  Cabnet f?enang
Notes:­ *  An application for the striking off of Cabnet Technology has been submitted to the CCM by the Company on 1 February 2016, as it had remained dormant since 2004, and is  currently pending the decision from CCM. CCM had issued second notice under Section 308 of/he Companies Act, 1965 on 7 October 2016. The stnking off process will be  deemed completed upon issuance of the third notice under Section 549 of the Act and a gazette by CCM. There is no definite time frame as it is dependent on the processing  time by CCM.  ”  Being the public spread pursuant to the Listing Requirement totalling 26.8% of shareholding in Cabnet based on the enlarged issued of 130,000,000 Cabnet Shares  @  Tan Tian Yee, Chin Hoon Lim, Ho Chee Hong and Pauline Loh Yen Ping are the employees of Cabnet Group and are not related to the Promoters.  #  Their shareholdings in Cabnet do not form part of the public spread by virtue of their position as the directors of ITWin.  L1  Ng Jun Lip was the Finance Director of Cabnet Systems and he relinquished his position in March 2017. He is not related to the Promoters.  £  Pauline Loh Yen Ping will hold 60,000 Cabnet Shares pursuant to the Pink Form Allocations.  72
Company No. 1121987-0 I] 5. INFORMATION OF OUR GROUP (CONTD) Our sUbsidiary companies and their principal activities are set out below:­
which comprise structured cabling works and ELV systems as well as provision of IT services 300,000 100.0 Provision of IT services 1998/ ITWin 27 February 27 February 1998 Malaysia 31 January 1997/ 31 January 1997 300,000 100.0 Dormant’ Technology Cabnet Malaysia 16 August 2007 100,000 100.0 Provision of building Penang Cabnet 16 August 2007/ Malaysia management solutions which comprise structured cabling works and ELV s stems An application for the striking off of Cabnet Technology has been submitted to the CCM by the Company on 1 February 2016 and is currently pending the decision from CCM. CCM had issued second notice under Section 308 of the Companies Act, 1965 on 7 October 2016. The striking off process will be deemed completed upon issuance of the third notice under Section 549 of the Act and a gazette by CCM. There is no definite time frame as it is dependent on the processing time by CCM. 5.4 Subsidiary companies 5.4.1 Information on Cabnet Systems 5.4.1.1 Background and history Cabnet Systems was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 12 August 1995 under its present name. 5.4.1.2 Principal activity Cabnet Systems is principally involved in the provIsion of building management solutions which comprise structured cabling works and ELV systems as well as the provision of IT services. Further details on structured cabling works and ELV systems are set out in Section 6.1.1 of this Prospectus. 5.4.1.3 Share capital The issued share capital of Cabnet Systems is as follows:­[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] pany No. 1121987-D 5. INFORMATION OF OUR GROUP (CONTD)
Issued 1,000,000 1,000,000 There are no changes to the issued share capital of Cabnet Systems for the past three (3) years preceding the LPD. Details of the changes to Cabnet Systems’ issued share capital since incorporation are set out below:­
Ordinary shares  12 August 1995  3  Cash  3  3  14 June 1996  99,997  Cash  100,000  100,000  21 August 1998  200,000  Capitalisation of  300,000  300,000  debt due  23 May 2006  200,000  Cash  500,000  500,000  25 September  500,000  Cash  1,000,000  1,000,000  2007
5.4.1.4 Shareholder As at the LPD, Cabnet Systems is our wholly-owned subsidiary. 5.4.1.5 SUbsidiary and associate company As at the LPD, Cabnet Systems has two (2) wholly-owned subsidiaries, namely Cabnet Technology and Cabnet Penang, and holds 51.0% direct equity interest in ITWin. Cabnet Systems does not have any associated company. 5.4.2 Information on ITWin 5.4.2.1 Background and history ITWin was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 27 February 1998 under its present name. 5.4.2.2 Principal activity ITWin is principally involved in provision of IT services. Further details on IT services are set out in Section 6.12 of this Prospectus. 5.4.2.3 Share capital The issued share capital of ITWin is as follows:­~ompany No. 1121987­5. INFORMATION OF OUR GROUP (CONT’D)
There are no changes to the issued share capital of ITWin for the past three (3) years preceding the LPD. Details of the changes to ITWin’s issued share capital since incorporation are set out below:­
5.4.2.4 Shareholder As at the LPD, the shareholders of ITWin are as follows:-
(1) Deemed interested by virtue of its shareholdings in Cabnet Systems pursuant to Section 8 of the Act. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 5. INFORMATION OF OUR GROUP (CONT’D) 5.4.2.5 Subsidiary and associate company As at the LPD, ITWin does not have any subsidiary or associate company. 5.4.3 Information on Cabnet Technology 5.4.3.1 Background and history Cabnet Technology was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 31 January 1997 under its present name. 5.4.3.2 Principal activity Cabnet Technology was initially set up to source structured cabling business from stockbroking companies in central region of Peninsular Malaysia. However, it had remained dormant since 2004 subsequent to the rationalisation of its existing business to Cabnet Systems. An application for the striking off of Cabnet Technology has been submitted to the CCM by the Company on 1 February 2016 and is currently pending the decision from CCM. CCM had issued second notice under Section 308 of the Companies Act, 1965 on 7 October 2016. The striking off process will be deemed completed upon issuance of the third notice under Section 549 of the Act and a gazette by CCM. There is no definite time frame as it is dependent on the processing time by CCM. 5.4.3.3 Share capital The issued share capital of Cabnet Technology is as follows:­
There are no changes to the issued share capital of Cabnet Technology for the past three (3) years preceding the LPD. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONT’D) Details of the changes to Cabnet Technology’s issued share capital since incorporation are set out below:­
Ordinary shares  31 January 1997  10  Cash  10  10  4 February 1998  199,990  Cash  200,000  200,000  20 September 1999  100,000  Cash  300,000  300,000
5.4.3.4 Shareholder As at the LPD, Cabnet Technology is a wholly-owned subsidiary of Cabnet Systems. 5.4.3.5 Subsidiary and associate company As at the LPD, Cabnet Technology does not have any subsidiary or associate company. 5.4.4 Information on Cabnet Penang 5.4.4.1 Background and history Cabnet Penang was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 16 August 2007 under its present name. 5.4.4.2 Principal activity Cabnet Penang is principally involved in the provIsion of building management solutions which comprise structured cabling works and ELV systems. Further details on structured cabling works and ELV systems are set out in Section 6.1.1 of this Prospectus. Cabnet Systems and Cabnet Penang are in the similar business activities apart from geographical aspects. The Group ;s in the midst of consolidating the business of Cabnet Penang into Cabnet Systems. Accordingly, the office rented by Cabnet Penang is occupied by the staff of Cabnet Systems who have been assigned to oversee the operations in the northern region of Peninsular Malaysia. Following thereto, Cabnet Systems in place of Cabnet Penang has been sourcing projects in the northern region of Peninsular Malaysia. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
5. INFORMATION OF OUR GROUP (CONT’D) 5.4.4.3 Share capital The issued share capital of Cabnet Penang ;s as follows:­
There are no changes to the issued share capital Cabnet Penang for the past three (3) years preceding the LPD. Details of the changes to Cabnet Penang’s issued share capital since incorporation are set out below:­
Ordinary shares 16 August 2007 27 September 2007  2 99,998  Cash Cash  2 100,000  2 100,000
5.4.4.4 Shareholder As at the LPD, Cabnet Penang is a wholly-owned subsidiary of Cabnet Systems. 5.4.4.5 Subsidiary and associate company As at the LPD, Cabnet Penang does not have any sUbsidiary or associate company. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] ~ Company No. 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’D) 5.5 Restructuring Exercises We have implemented the Restructuring Exercise, which was completed on 2 September 2015. Details of the Restructuring Exercise are as follows:­5.5.1 Subdivision of Cabnet Shares Cabnet had, on 18 May 2015, implemented a subdivision of shares where everyone (1) ordinary share in the Company was subdivided into ten (10) ordinary shares in Cabnet. 5.5.2 Acquisition of Cabnet Systems We had, on 18 August 2015, entered into a sale and purchase agreement with the Vendors of Cabnet Systems for the acquisition of 1,000,000 ordinary shares in Cabnet Systems representing 100.0% of the issued share capital of Cabnet Systems for a total purchase consideration of RM8,999,998. The total purchase consideration of RM8,999,998 for the Acquisition of Cabnet Systems was satisfied via the issuance of 89,999,980 new Cabnet Shares at an issue price of RMO.1 0 per Cabnet Share to the Vendors of Cabnet Systems in the manner as set out below:­
Tay Hong Sing Tan Boon Siang Tan Tian Yee Kong Tze Senn Sim Yian Fei Ng Jun Lip Total Note:­405,000 406,500 48,500 60,000 60,000 20,000 1,000,000 40.5 40.6 4.9 6.0 6.0 I 2.0 1,800,000 100.00 89,999,980 100.00 36,449,990 40.5 36,584,990 40.6 4,365,000 4.9 5,400,000 6.0 5,400,000 6.0 * Based on the issued share capital prior to the Acquisition of ITWin and NetPosa Investment of RM9,000, 000 comprising 90,000,000 Cabnet Shares. The total purchase consideration of RM8,999,998 for the Acquisition of Cabnet Systems was arrived at after taking into consideration the audited NTA of Cabnet Systems as at 31 December 2014 of RM8,812,207. The Acquisition of Cabnet Systems was completed on 1 September 2015. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-D ~ 5. INFORMATION OF OUR GROUP (CONT’D) 5.5.3 Acquisition of /TWin Concurrently with the Acquisition of Cabnet Systems, we had, on 18 August 2015 entered into a sale and purchase agreement with the Vendors of ITWin for the acquisition of 147,000 ordinary shares in ITWin representing 49.0% of the issued share capital of ITWin for a total purchase consideration of RM1 ,280,000. The total purchase consideration of RM 1,280,000 for the Acquisition of ITWin was satisfied via the issuance of 6,550,000 new Cabnet Shares at an issue price of RMO.10 per Cabnet Share and the payment of RM625,000 in cash in the manner as set out below:­
Tan Ying Meng Ho Chee Hong Chin Hoon Lim Koh Thain Lin  69,000 30,000 24,000 24,000  23.0 100 8.0 8.0  3,074,400 1,336,800 1,069,400 1,069,400  307,440 133,680 106,940 106,940  3.2 1.4 1.1 1.1  293,400 127,600 102,000 102,000  600,840 261,280 208,940 208,940  Total  147,000  49.0  6,550,000  655,000  6.8 I  625,000  1,280,000
Note:­Based on the Issued share capital of 96,550,000 shares In Cabnet Systems after the Acquisition of Cabnet Systems and the Acquisition of ITWIn. The total purchase consideration for the Acquisition of ITWin of RM1,280,000 was arrived at after taking into consideration the audited NTA of ITWin as at 31 December 2014 of RM2,599,099. The Acquisition of ITWin was completed by 2 September 2015. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-D II 5. INFORMATION OF OUR GROUP (CONT’O) 5.6 Listing scheme In conjunction with and as an integral part of the Listing, the details of the Listing scheme are set forth below. 5.6.1 Public Issue A pUblic issue of 21 ,000,000 new Cabnet Shares, representing approximately 16.15% of our enlarged issued share capital, at the Issue Price to be allocated in the following manner:­Y;y( “”.” iffi&~·lliff!;!~··,?·;;:····· Shares available for application by Malaysian Public Shares by way of private placement to selected investors Shares under Pink Form Allocations Total size of Public Issue No offer for sale will be undertaken as part of our IPO. 5.6.2 Listing 7,000,000 10,000,000 4,000,000 21,000,000 The admission to the Official List and the listing of and quotation for our entire enlarged issued share capital of RM22,660,000 comprising 130,000,000 Cabnet Shares on the ACE Market of Bursa Securities. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] §any No. 1121987-0 ~ 5. INFORMATION OF OUR GROUP (CONT’D) 5.7 Material capital expenditures and divestitures Save as disclosed below, there are no other material capital expenditures and divestitures made by us for the financial years under review:­
Expenditures  Property, plant and equipment Freehold land Buildings Motor vehicles  Investment property Freehold land Buildings Apartment  229(1)  550(6)  Proceeds from divestitures Disposal of leasehold land and buildings Disposal of interests in subsidiary Disposal of motor vehicles  244(3) 33(7)  1,275(2) 47(7)  140(7)
(1) ITWin entered into a sale and purchase agreement to purchase a shop office in Nusa Sentral, Nusajaya, Johor on 6 February 2013 for investment purposes with a total purchase consideration of RM1. 16 million (inclusive of the incidental costs such as legal fees and stamp duty). In FYE 31 December 2013, RMO.93 million was paid for the investment propeny. Subsequently during FYE 31 December 2014, a funher RMO.23 million was paid for the balance of the investment propeny. On 5 May 2015, our Group disposed the shop office to a non-related pany, Greenchain Marketing Sdn Bhd (details of which has been disclosed in Section
14.4 (v) of the Prospectus) to realise the investment for a consideration of approximately RM1.28 million with a net gain of disposal of approximately RMO.10 million which was arrived at based on the following com utation:­
(2) Gross proceeds arising from the disposal of an investment propeny by ITWin as per Note (1) above.
(3) ITWin disposed its 70% equity interest in ICT Automation (M) Sdn Bhd on 27 OctOber 2014 to Tay Lai Eng, a non-related pany, to focus on our Group’s existing business. ICT Automation (M) Sdn Bhd is principally involved in computer networking. At the time of ITWin’s disposal, the remaining 30% was held by Lim Yil Choy.
(4) Purchased three (3) motor vehicles for use by our marketing and project management teams.
(5) Purchased five (5) motor vehicles for use by our marketing and project management teams.
(6) Purchased one (1) apanment located in Subang as an investment propeny. The purchase of this investment propeny in FYE 31 December 2016 was acquired from one of Cabnet System’s customers who has no other relationship with Cabnet Group. There was no cash outflow involved for the acquisition of investment propeny and both panies agreed to offset the purchase price of the investment propeny against the total amount owing by the customer of RM1.29 million as at 27 December 2016, being the date of the sale and purchase agreement. The acquisition of investment propeny was a one-off transaction and based on propeny asking prices (i.e. selling price per square foot) for propeny within the same building as shown on public domain, www.propenyguru.com.my.

 

1.28 1.16 0.04 0.02  0.10
82 Company No. 1121987-0 II 5. INFORMATION OF OUR GROUP (CONT’D) As at the LPD, save as disclosed above, our Board is not aware of any other material capital commitments incurred or known to be incurred by our Group that has not been provided for, which upon becoming enforceable, may have a material impact on our financial results or position. 5.8 Key milestones, awards and recognition The key milestones in our Group’s history are as detailed below:­
1995 .. Incorporation of Cabnet Systems .. Commenced operations in Johor Bahru, Johor, to undertake structured cabling works .. Secured first structured cablin ro·ect for Kiswire Sdn Bhd 1997 • Incorporation of subsidiary Cabnet Technology
• Commenced operations in Selangor to source for businesses in the central region

of Peninsular Mala sia 2000 • Further expanded into digital-based surveillance systems
• Secured a contract to install a digital-based surveillance system for B.M. Nagano Industries Sdn Bhd in Johor
• Secured first overseas contract for structured cabling works for a satellite broadcasting system at Brunei International Convention Centre in conjunction with the 1i h APEC Ministerial Meetin from 12 November 2000 to 13 November 2000

2003 • Secured a contract for the design, build, installation, testing, commissioning and maintenance of ELV systems from Pernec Technologies Sdn Bhd for CIQ Complex in Johor Bahru, Johor Cabnet Technolo became our wholl -owned subsidiar 2007 • Cabnet Systems was awarded MSC Malaysia status by MDEC and pioneer status by MITI
• Incorporation of Cabnet Penang

• Commenced 0 erations in Penan to tar et companies based Penan and Kedah 2008 • Acquired 51 % equity interest in ITWin
• Secured a contract for structured cabling works and ELV systems for P.T.

2009 To 0 las Manufacturin Indonesia’s production facilit in Indonesia 2010 Certified compliant to ISO 9001 :2008 and BS EN ISO 9001 :2008 for the provision of structured cabling works and ELV s stems b Intertek Certification Ltd 2011 • Cabnet Penang became our wholly-owned subsidiary 2012 .. Penetrated the residential property and commercial property segments high-rise buildings which include condominiums, office towers and hotels to diversify and increase our Group’s revenue 2013 .. Completed ELV project for Industronics Berhad for Kulai District, Johor 2014 .. ITWin secured first IT services project in the oil and gas industry with Pengerang Inde endent Terminals Sdn Bhd in Pen eran , Johor 2015 .. Completed the Restructuring Exercise 2016 .. Entered into a Share Subscription Agreement with NetPosa .. Entered into a collaboration agreement with NetPosa (as supplemented, added and varied b Su lemental A reement [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-D II 6. BUSINESS OVERVIEW Principal activities Our Group operates in the ELV and structured cabling industry and ICT industry. We are principally involved in the provision of building management solutions which comprise structured cabling works and ELV systems for buildings and other facilities such as seaports and public roads. We also provide IT services which can be offered as complementary to our building management solutions or offered separately on a standalone basis. ELV in electricity supply refers to systems that operate on voltages that do not exceed 50 alternating current (AC) voltages. ELV can comprise multiple systems either operating at a standalone or integrated level, and ELV is used in security and surveillance, public address and video intercom applications. Structured cabling is a system of cabling and associated hardware that provide telecommunications infrastructure for the purposes of data transfer and voice transmission. Structured cabling integrates building automation systems, IT systems and communication systems within one (1) cabling infrastructure. Building management solutions refers to technologies that provide access to information utilising ICT. ICT is thus an extended form of IT that focuses on unified communications and the integration of telecommunications (i.e. telephones lines and wireless signals), computers, enterprise software, middleware, storage as well as audio-visual systems that allow users to access, store, transmit and share information. Structured cabling is a part of building management solutions, and is used as a conduit to connect telecommunication devices to computers and associated peripherals for the purposes of data transfer and voice transmission. When integrated with a building or facility’s IT system, ELV forms a part of building management solutions. An integrated ELV systems operates on a common platform or software (e.g. CISS, a software that integrates various brands of CCTVs and ACS onto a single platform) for the purposes of collecting, exchanging and archiving data. The integrated ELV systems may include pUblic address, ACS, intrusion detection, CCTV, audio-visual monitoring, fire detection and alarm, as well as other security systems. Our Group’s customers comprise mainly bUilding contractors who have been engaged to carry out building or construction work and to a lesser extent building owners and bUilding operators who perform daily building operation tasks such as ensuring the functionality of mechanical and electrical systems (including air-conditioning, escalators, lifts, lightings and etc.) and maintenance of buildings. 6.1.1 Provision of building management solutions compnsmg structured cabling works and ELV systems for buildings and other facilities 6.1.1.1 Structured cabling works Our structured cabling works involve design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service. Structured cabling integrates building automation systems, IT systems and communication systems within one (1) cabling infrastructure. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-0 ~ 6. BUSINESS OVERVIEW (CONT’D) “Design, supply and build” is a standard industry terminology for construction-related activities, including structured cabling works where:­(i) “design” is defined as the process of providing the design of the structured cabling layout;
(ii) “supply” is defined as the provision of equipment, components and parts that are required for structured cabling works;

(iii) “build” is defined as the physical act of installing the structured cables; and (iv) “structured cabling works” is a term used to define activities related to the installation of structured cable, comprising the design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service. Structured cabling help eliminate the costly process of installing and operating multiple cabling and wiring networks to separately accommodate the aforementioned systems. The integrated cabling infrastructure includes copper and fibre optics cabling used for LAN, WAN, and various equipment such as ACS and CCTV cameras. The structured cabling works, which can be offered in a package or separately, are as set out below:­structured cabling to support voice, data and I multimedia applications based on customer’s re uirement Cable installation Laying of copper and fibre optic cables based on the roposed la out Testing and commissioning Verification test to see if the cable is properly connected Qualification test to confirm the cable installed support technology requirements Certification test to ensure new cabling fully meets requirement of cabling standards and manufacturer’s warrant
Our wholly-owned subsidiary, Cabnet Systems, is registered with the CIDB as a Grade “7” contractor which allows us to bid for contracts of unlimited value, while our another subsidiary, Cabnet Penang is registered as a Grade “3” contractor with the CIDB thereby allOWing us to bid for contracts of up to RM1.0 million. Our structured cabling works conform to the following industry codes and standards:­(i) Generic Cabling for Customer Premises in conformance to International Organisation for Standardisationllnternational Electrotechnical Commission (ISOIIEC) 11801;
(ii) Generic Telecommunications Cabling for Customer Premises in conformance to American National Standards InstitutelTelecommunications Industry Association (ANSIITIA-568-C);

(iii) Telecommunications Pathways and Spaces in conformance to American National Standards InstitutelTelecommunications Industry Association (ANSIITIA-569-B); (iv) Telecommunications Infrastructure Standard for Data Centres in conformance to American National Standards InstitutelTelecommunications Industry Association (ANSIITIA-942); 85 ~ Company No. 1121987-D 6. BUSINESS OVERVI_E_W—-‘(‘-C_O_N._T_’D….!..) _ (v) Administration Standard for Telecommunications in conformance to American National Standards Institute/Telecommunications Industry Association (ANS IITIA-606-A);
(vi) Optical Fibre Cabling Components Standard in conformance to American National Standards Institute/Telecommunications Industry Association (ANSIITIA-568-C.3); and

(vii) Balanced Twisted Pair Telecommunications Cabling and Components Standard in conformance to American National Standards InstitutelTelecommunications Industry Association (ANSIITIA-568-C.2). We have completed, amongst others, the following major structured cabling projects with contract values exceeding RM500,000 for the past three (3) FYE 31 December 2014 to FYE 31 December 2016:-
Platino Apartments, Johor DoubleTree Hotel by Hilton Johor Bahru, Johor  Sin Sin Construction Sdn Bhd Fook Yu Electrical and Building Contractor Sdn Bhd  June 2013 to Ma 2015(1) December 2013 to September 2014  0.58 1.52  All premises including the buildings erected in Johor Port, Johor  Dimension Data (Malaysia) Sdn Bhd  September 2014 to April 2015  1.05  A factory block of Infineon Technologies (Malaysia) Sdn Bhd in Melaka  Infineon Technologies (Malaysia) Sdn Bhd  April 2015 to June 2015  0.95  Holiday Villa Hotel Johor Bahru, Johor D’Summit Apartments Phase 1, Johor  Malpakat Construction Sdn Bhd Kimlun Sdn Bhd  August 2014 to December 2015 October 2013 to May 2016(2)  0.85 4.03  Forest City Hotel and Hotel Apartment  Country Garden Pacificview Sdn Bhd  June 2016 to September 2016(3)  1.60
(1) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to March 2016. The project was completed in March 2016. There was no financial or legal impact from this extension of time.
(2) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to August 2016. The project was completed in December 2016. There was no financial or legal impact from this extension of time.
(3) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to December 2016. The project was completed in December 2016. There was no financial or legal impact from this extension of time.

Company No. 1121987-D I] 6. BUSINESS OVERVIEW (CONT’D) As at the LPD, we are involved in the following major on-going structured cabling projects with contract values exceeding RM500,OOO:­
D’Summit Apartments Phase 2, Johor Pinetree Marina Resort, a resort located in Johor Raffles American School, a private school in Johor  Yicai Construction Sdn Bhd JIT Premier Construction Sdn Bhd Bond M&E Sdn Bhd  May 2014 to January 2018 September 2015 to November 2016(1) September 2015 to July 2016(2)  2.21 1.19 1.26  1.61 0.53 0.60
(1) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, the completion date was first mutually and verbally extended to December 2016. Subsequently the completion date for this project was further mutually and verbally extended to June 2017 as the client requested for an extension of time to complete the site, thus causing delay in the overall progress of construction. There will be no financial or legal impact from this extension of time.
(2) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, the completion date was first mutually and verbally extended to December 2016. SUbsequently the completion date for this project was further mutually and verbally extended to June 2017 as there were changes in the specification and designs of the project. There will be no financial or legal impact from this extension of time. Any variation in the cost of this project as a result of changes in the specification and designs of the project will be billed to the client.

6.1.1.2 ELV systems Our Group undertakes the design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service for standalone and integrated ELV systems. These ELV systems help our customers to improve security and communications in a building. These ELV systems can be deployed in the residential property segment, commercial property segment and industrial property segment, as well as for public buildings (e.g. educational and healthcare institutions). “Design, supply and build” is a standard industry terminology for construction-related activities, including ELV systems where:­(i) “design” is defined as the process of providing the design of the ELV systems based on customers’ requirement and building layout;
(ii) “supply” is defined as the procurement and delivery of ELV systems equipment that required for setting up of ELV systems; and

(iii) “build” is defined as the physical act of installing and setting up of the ELV systems into the building! facilities. [COffiPany No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D) ELV systems operate on less than 50 AC (alternating current) voltage and are used in buildings. The following are ELV systems that we offer:­
CCTV Digital video surveillance system utilising digital compression technologies to bring high quality picture and video performance and simplify video storage on hard disks or optical storage devices CCTV systems range from fixed, pan-tilt-zoom to infrared cameras for different types of application based on customer requirements in the commercial, industrial, residential and infrastructure segment rCS System that provides entry / exit to a building / room or facility through the authorisation of valid personnel • ACS ranges from standard proximity card to biometrics r—–:–:-:::–::::-:-:-;-:;;::-;_—,-+-_~e:lL!itlger print and retina scannin HD SMATV system HD SMATV systems are typically used in buildings and facilities to provide centralised television reception HD SMATV systems consist of one (1) or more satellite receiving dish antennas, which are usually installed at rooftops of buildings. HD SMATV programmes received by these antennas are distributed by cable to either individual rooms / units or televisions within a building or facility PA system Electronic sound amplification and distribution system with a microphone, amplifier and loudspeakers used for general announcement and emergency control PA systems can be employed in standard building applications and high-rise buildings, where the latter could include an interface with the fire alarm system for safet enhancement Intercommunication  Video and voice or voice only communication system  (“intercom”) system  between two (2) or multiple points in a building  Intercom  systems  can  also  be  integrated  with  PA  s stems and fire alarm s stems  ISS (ACS and CCTV system  Integration of single-branded / various brands of ACS  only)  and CCTV system into a single platform, typically at  buildin s or facilities that require hi  her securit  levels
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0 ] 6. BUSINESS OVERVIEW (CONT’D) We have completed, amongst others, the following major ELV systems projects with contract values exceeding RM1.0 million for the past three (3) FYE 31 December 2014 to FYE 31 December 2016 :­
(1) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was first mutually and verbally extended to August 2016. Subsequently the completion date for this project was further mutually and verbally extended to December 2016 as the client requested for an extension of time to complete the site, thus causing delay in the overall progress of construction. There was no financial or legal impact from this extension of time. We have completed our part in December 2016.
(2) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to June 2016. There was no financial or legal impact from this extension of time. We have completed our part in June 2016.
(3) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to December 2016. There was no financial or legal impact from this extension of time. We have completed our part in December 2016.

89 6. BUSINESS OVERVIEW (CONT’D) As at the LPD, we are involved in the following major on-going ELV system projects with contract values exceeding RM1.0 million:­
The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to June 2017. There will be no financial or legal impact from this extension of time. The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, the completion date was first mutually and verbally extended to December 2016. Subsequently the completion date for this project was further mutually and verbally extended to June 2017 as the client requested for an extension of time to complete the site, thus causing delay in the overall progress of construction. There will be no financial or legal impact from this extension of time. The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, the completion date was first mutually and verbally extended to December 2016. Subsequently the completion date for this project was further mutually and verbally extended to June 2017 as there were changes in the specification and designs of the project. There will be no financial or legal impact from this extension of time. The overall progress of construction for this project was delayed due to reasons not attributable
to our Group. At the request of the client, completion date was mutually and verbally extended to December 2017. There will be no financial or legal impact from this extension of time. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-D ~ 6. BUSINESS OVERVIEW (CONT’D) 6.1.2 Provision of IT services Our IT services comprise design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service of IT solutions. Our IT services, while being complementary to our building management solutions, can be offered separately on a standalone basis. “Design, supply and build” is a standard industry terminology for construction-related activities, including IT services where:­(i) “design” is defined as the process of studying customers’ existing IT operation and requirement and propose suitable new system deployment or upgrade or enhancement;
(ii) “supply” is defined as the procurement and delivery of IT equipment that required for setting up of IT system;

(iii) “build” is defined as the physical act of installing and setting up of the IT system into the building! facilities; and (iv) “IT services” ;s a term used to define activities related to the installation of IT system, comprising the design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service. Our IT services include:­
Server virtualisation  A process where server administrator uses a software  application to divide one physical server into multiple  isolated  virtual  environments  in  order  to,  amongst  others, fully utilise server resources (e.g. processors,  memory,  storage and network) and backup, migrate  and recover from disastrous incidents  Data centre solutions  Design and deployment of data centre facilities, racking  systems (i.e. storage solutions for a large number of  servers), cable management, power management and  network equi  ment  Network  design  and  Design and deployment of enterprise network covering  deployment  WAN and LAN with traffic optimisation (i.e. techniques  used  to  maximise the efficiency of data flow  across  WAN and LAN , mana eabilit  and securit  features  Network  management  and  Design and deployment of network traffic monitoring,  network security  endpoint network security solutions (i.e.  solutions to  protect corporate network when accessed via  remote  I  devices such as laptops or other wireless and mobile  devices), content, troubleshooting and optimisat~  Enterprise messaging solution  I .  Provision  of  enterprise  email,  calendar  and  I  collaboration solutions  Wireless networking solution  Design  and  deployment  of  wireless  networking  solutions  for  indoor wireless  networking  or  outdoor  long  point-to-point  wireless  link  connecting  two  (2)  different locations  –l
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-D ~ 6. BUSINESS OVERVIEW (CONT’O) We have completed, amongst others, the following major IT services projects with contract values exceeding RM100,000 for the past three (3) FYE 31 December 2014 to FYE 31 December 2016:-
Pengerang Independent Terminals Sdn Bhd’s data centre and office building in Pengerang, Johor  Pengerang Independent Terminals Sdn Bhd  February 2014 to March 2014  0.92  Clay Industries factory block in Johor  Sdn Bhd’s Ayer Hitam,  Clay Industries Sdn Bhd  April 2014 to June 2014  0.40  Biocon Sdn Bhd’s data centre in Nusajaya, Johor PGEO Edible Oils Sdn Bhd’s I factory block in Johor Bahru, Johor Arrow Electronics Asia (S) Pte Ltd’s project for the factory block located at the port of Tanjung Pelepas Plant, Johor  Biocon Sdn Bhd PGEO Edible Oils Sdn Bhd Arrow Electronics Asia (S) Pte Ltd  July 2014 to November 2014 May 2015 to July 2015 May 2015 to July 2015  0.80 0.11 0.70  Johor Corporation’s office building in Johor Bahru, Johor Flour Daniel (M) Sdn Bhd’s data centre in Pengerang, Johor  Sovereign Multimedia Resources Sdn Bhd Flour Daniel (M) Sdn Bhd  June 2015 to September 2015 July 2015 to September 2015  0.23 0.13  Recreation centre Patah, Johor  in  Gelang  Mu Yu Bhd  (Malaysia)  Sdn  April 2016 to June 2016  0.16  Site office located at RAPID Raw Water Treatment Plant in Pengerang, Johor  Loh & Loh Constructions Sdn Bhd  April 2016 to May 2016  0.12  Johor Corporation’s office building in Ulu Tiram, Johor  Extreme Edge Sdn Bhd  April 2016 to July 2016  0.63  Factory buildings located Gelang Patah, Johor  in  J.S.T. Connectors (Malaysia) Sdn Bhd  June 2016 to October 2016  1.04  Factory bUildings Senai, Johor.  located  in  Medical-Latex Sdn Bhd  (DUA)  January 2016 to April 2016  0.42
rrHE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6. BUSINESS OVERVIEW (CONT’D) As at the LPD, we are involved in the following on-going major IT services projects with contract values exceeding RM1 00,000:­
Note:­(1) The overall progress of construction for this project was delayed due to reasons not attributable to our Group. At the request of the client, completion date was mutually and verbally extended to April 2017. There was no financial or legal impact from this extension of time. 6.2 Principal markets The breakdown of our sales revenue by business segment and geographical markets in the FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016 are as follows:­6.2.1 Sales revenue by business segments
Building management solutions comprising:­(i) Structured cabling works
(ii) ELV systems

IT services Less: Consolidation Adjustment * Total sales revenue 6,363 18,216 24,579 12,288 (2,802) 34,065 18.68 53.47 72.15 36.07 (8.22) 100.0 11,229 19,505 30,734 10,841 (1,984) 39,591 28.36 49.27 77.63 27.38 (5.01 ) 100.0 10,139  19.94  30,218  59.43  40,357  79.37  12,447  24.48  (1,960)  (3.85)  50,844  100.0
* The consolidation adjustment represents the elimination of inter-company transactions within our Group. Company No. 1121987­6. BUSINESS OVERVIEW (CONT’D) 6.2.2 Sales revenue by geographical markets

52,797Malaysia 36,753 41,442 Less: Consolidation (2,802) (1,984) (1,960) adjustment * 33,951
99.9999.66 39,458 99.66 50,837 Singapore A 0.28 126 0.3295 0.017 Total sales Indonesia 19 0.06 7 0.02 39,591 100.0 50,844 100.034,065 100.0 revenue
* The consolidation adjustment represents the elimination of inter-company transactions within our Group. 1\ This is in reference to the projects with Apro Technology Pte Ltd, a Singapore-based company, for work done in Malaysia as disclosed under Section 5.1 of the Prospectus. The billing for the work done was issued to Apro Technology Pte Ltd. 6.3 Process flow and delivery 6.3.1 Overview Our Group is principally involved in the the provision of building management solutions which comprise structured cabling works and ELV systems for buildings and other facilities such as seaports and public roads. We also provide IT services which can be offered as complementary to our building management solutions or offered separately on a standalone basis. For each segment of our business, i.e. structured cabling works, ELV systems and IT services, we are awarded contracts by building contractors, building owners and/or building operators. Typically, structure cabling works takes place prior to ELV systems and lastly followed by IT services (as illustrated below). : —————————–,Building management solutions comprising: I : I 1–“‘[Structured cabling ELV systems ~~—-~~~ce;–~ 1 IL I However, the provision of these solutions and services may also take place simultaneously and not necessarily in the order as shown above, subject to our client’s requirements. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 94 II Company No. 1121987-D II 6. BUSINESS OVERVIEW (CONT’D) 6.3.1.1 Our Group’s process flow and delivery Following a successful tender bid and/or project award, our project implementation process for the delivery of bUilding management solutions that comprise structured cabling works and ELV systems, as well as IT services is as follows:­Bench tesling (slloffactory acceptanco te.t (“FAT”)) Sys(om build Field testing and commissIoning User training
Delivory Maintenance service

Initial project planning The initial project planning phase forms the foundation of the entire project. It involves the preparation of a detailed master project development plan which covers considerations such as project resources, responsibilities, work schedules, project deliverables, control and monitoring mechanisms, quality requirements as well as various administrative procedures. A project team will be formed and both in-house and client kick-off meetings will be held to establish a common understanding of project requirements amongst all parties comprising representatives of the building owner, building contractor, project consultant and our Group. The Initial project planning phase may take approximately one (1) to three (3) months, depending on the size and complexity of the project. Conceptualisation and design Prior to the commencement of a project, our designated project team will embark on a series of discussions with the client to conceptualise and design the project. These discussions serve to ascertain the specific requirements for the system, namely the functionalities, features, quality and performance. The requirements conveyed by the client will be further reviewed and analysed, following which a finalised version of the requirements will be documented as the Engineering Submittal (“ES”) form and submitted for the client’s approval. Once approved, the ES will become the base document for the design and development process. The conceptualisation and design phase may take between two (2) weeks to three (3) months, depending on the size and complexity of the project. Project monitoring Project monitoring is an ongoing activity that is managed by the project manager. We have a control and monitoring system in place in which the project manager will regularly monitor the progress of our projects to ensure conformance with our master plan. The key elements of our project control planning, which fall under the ambit of our project manager, involve the following parameters:­(i)  progress against time;  (ii)  cost against bUdget; and  (iii)  quality against specification

6. BUSINESS OVERVIEW (CONTO) Equipment and component procurement During the planning and design stage, our project managers will have cost control budgets which provide an estimate of final costs of the entire project. These budgets are important considerations in determining the type of hardware and software to be deployed. In accordance with the system requirements and the budget allocated for the project, our engineering team will recommend a suite of cost-effective solutions and engage our procurement team to procure the required equipment, components and instrumentation. Bench testing (site I Factory Acceptance Testing (“FAT”)) Our design and application engineers will perform bench testing (site / FAT) of the various control units of the standalone sub-systems and equipment prior to installation at the request of our customers. Typically, this testing involves the setup of the entire system comprising all hardware and software components, based on simulation under different application scenarios. Our engineers will load the software and power up the equipment to check for any potential problems and malfunctions under the simulated environment. This process allows us to isolate problems in each individual equipment prior to a full-scale installation at the project site, thereby minimising the occurrence of spending resources to detect and rectify malfunctions after the installation. System build System build refers to the system-wide installation of structured cabling, ELV and IT equipment such as trunking, conduits, wirings, field devices, cameras, NVRs, door access controllers and servers, as well as various components such as sensors, patch panels, converters and other control devices. The scope of the installation process includes the supply of the abovementioned equipment, and the setting-up of equipment in the centralised control room in accordance with the system design. Prior to the installation, we will perform a comprehensive check to ensure that the installation materials and shop drawings (which detail how conduits, wirings and trunkings are to be routed) approved by the client’s project consultant meets the required specifications. During this phase, our project technicians and engineers will perform regular and frequent technical checks to ensure conformance of installation standards to the project consultant’s specifications as well as to the local codes of practice. The local codes of practice include, amongst others, colour coding, specification of trunking / trays / brackets, and fire rating for selected equipment. In particular, our project technicians will focus on the neatness of conduit and trunking installation, the accuracy of cable termination and the proper labelling of all cables. Field testing and commissioning Upon the completion of the system-wide installation, our testing and commissioning engineers will conduct a pre-commissioning exercise to ensure that all devices / equipment are properly installed. The testing and commissioning tests consist of an initial field test in which testing is carried out between the field devices and followed by on-load tests which involve the actual live testing of the standalone sub-systems. Finally, an integrated system test is performed to test the entire system that has been installed to ensure each standalone sub-system can operate independently as well as collectively with each other. Once a system has been field tested and commissioned, this signifies the fulfilment of our Group’s obligation to handover project within the contractual period. 6. BUSINESS OVERVIEW (CONT’D) User training Comprehensive classroom and field operation trainings will be provided by our project team upon completion of the project to ensure that the clients or end-users are proficient in the operation of the system. The training sessions are typically conducted by our technical team and trainees will be provided with the relevant training materials. Delivery The delivery process involves a verification process where complete checks of every specifications of the project are conducted by our customers. The verification process will be witnessed by the client and/or the project consultant appointed by the client, following which an acceptance report (certificate of completion and compliance or consultant’s certification) will be signed-off. Maintenance service Once a system is commissioned and handed over to our client, the system warranty phase commences. The duration of the system warranty may cover a period of one (1) year or more, depending on the contractual agreement. During the system warranty phase, we will provide on-site and/or remote support. As part of our quality control procedures, all the support requests are logged, tracked and compiled according to the customer service procedures of our Group. After the system warranty period is over, we may continue to provide our clients with operational, maintenance, upgrading and repair services with applicable charges, if they engage us to do so. We may also provide aftersales training to the personnel of those customers who have subscribed to our maintenance services, if required. We typically offer our clients the following types of maintenance contracts:­(i) Comprehensive maintenance contract The comprehensive maintenance contract covers all parts replacements, repairs and labour to upkeep the entire system; and (ii) Preventive maintenance contract The preventive maintenance contract covers labour costs for regular maintenance services only. Parts replacements are charged separately. 6.4 Quality control, certifications and recognition As part of our Group’s continuous efforts to achieve customer satisfaction, we place strong focus on quality assurance throughout the entire process of our project lifecycle. Our quality assurance department is responsible for the design of our quality management system, aside from being assigned to ensure that all quality objectives are met with strict adherence to the standards prescribed under our quality management system, as well as field quality testing. [fHE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6. BUSINESS OVERVIEW (CONT’D) 6.4.1 Quality certifications As at the LPD, our quality certifications are as follows:­
2018 inte ration Intertek Certification Ltd, an independent testing, inspection and certification body credited by United Kingdom Accreditation Services (UKAS) to assess organisations that provide certification, testing, inspection and calibration services. Besides testing, inspecting and certifying products, Intertek Certification Ltd is also a total quality assurance provider to industries worldwide. Intertek Certification Ltd is located in over 100 countries, including Malaysia, where they operate through ITS Testing Services (M) Sdn Bhd and Intertek Certification International Sdn Bhd. 6.4.2 Quality control procedures Our quality management systems and specific quality control plans are structured to meet the ISO 9001 :2008 and BS EN ISO 9001 :2008 standards. These standards specify the requirements for quality management system where an organisation:­(i) needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements; and
(ii) aims to enhance customer satisfaction through the effective application of the system, which includes processes for continual improvement of the system and the assurance of conformity and applicable regulatory requirements.

As part of our quality control procedures, we will establish a specific quality control plan for each project that we undertake. We keep a record of all inspection and test records, drawing lists, schematics, forms and checklists for each project that we undertake as part of our quality control procedures. Our specific quality control plan for each project involves the design and preparation of detailed quality control procedures to ensure a high standard of project planning, execution, monitoring and control. The specific quality control plan covers the entire project implementation process. The project manager, together with the quality assurance engineers, are responsible for the design and preparation of the quality control plan for the project, while the project engineers and site engineers are responsible for the implementation of the quality control plan at the project site. The control procedures which we implement as part of our quality control plan for each project are related to, amongst others:­(i) Project organisation, schedule, process flow and responsibilities;
(ii) Visual and functional inspections for incoming equipment and instrumentation;

(iii) System installation procedures and checklists (e.g. trunking, conduit, field devices, control panel and control room, IT system setup, IT connectivity, IT configuration); (iv) Site inspection and testing plans and checklists;
(v) Field testing and commissioning procedures and checklists;
(vi) Hand-over procedures (includes operator and maintenance manuals);

98 [COmPany No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D) (vii) User training procedures (e.g. training courses); and (viii) Defects liability period (e.g. servicing and maintenance process control procedures). 6.5 Types, sources and availability of equipment, components and parts Our purchases comprise expenditure on equipment, components8 and parts9 for the provision of building management solutions comprising structured cabling works and ELV systems, as well as IT services. The principal equipment, components and parts that we use are generally Widely available and sourced from local suppliers. The prices of our equipment, components and parts are sUbject to price fluctuations as a result of demand and supply conditions. We generally purchase equipment, components and parts per project basis or per purchase order basis. We have developed stringent policies and procedures that guide our selection of suppliers. All selected suppliers are evaluated in terms of financial performance, production capacities, ability to deliver products that meet our quality requirement, and ability to deliver in a timely manner. We will appoint experienced suppliers that are reliable and financially secured to ensure the quality of services that we deliver to our customers. The following table sets out the equipment, components and parts purchased by our Group for different business activities:­
ELV systems (a)  9,211  48.40  9,261  46.07  14,120  51.43  Structured cablindb )  3,107  16.33  4,428  22.03  5,624  20.48  IT services(c)  9,512  49.98  8,395  41.77  9,674  35.23  Consolidation adjustment(d)  (2,799)  (14.71)  (1,984)  (9.87)  (1,960)  (7.14)  Total purchases/cost of oods sold  19,031  100.0  20,100  100.0  27,458  100.0
(a) Purchases for EL Vsystems-related equipment, components and parts comprise:­PA systems (mixed amplifiers, power amplifiers, emergency paging microphones, power supply coupled with battery chargers, zone selectors, amplifier monitor units, automatic change over units, program timers, siren generators and speakers); HO SMA TV systems (antennas, satellite dishes, channelised amplifiers, multiswitches, muttitaps, multisplitters, fibre optic convertors, television outlets, fibre optic cables and coaxial cables); CCTV systems (cameras, NVR, digital video recorders, storage, fibre optic convertors, camera housing and brackets, video surge protectors, equipment racks, universal power supply units, computer workstations and servers); card access systems (card access controllers, backup batteries, readers, electromagnetic locks, magnetic contacts, emergency breakglasses, exit push buttons and override keyswitches); intercom systems (audio intercom sets, video intercom sets, master guard portals, visitor entrance panels and software); fibre to the home systems (main fibre termination boxes, riser fibre termination boxes, fibre wall sockets, riser fibre optic cables, two (2) core fibre optic drop cables); and visitor management systems (Mykad reader coupled with software development kit and document scanner coupled with software development kit).
(b) Purchases for structured cabling-related equipment, components and parts comprise:­

8 Components comprise fully assembled or sub-assembled parts, pieces, hardware and systems that is intended to be included as part of a finished or packaged item, and include items such as amplifiers, CCTVs and universal ~ower supply units Parts comprise small items that used to produce components, and include items such as switches, lens, camera housing, magnetic sensor Company No. 1121987-D I] 6. BUSINESS OVERVIEW (CONTD) twisted pair cables (UTP/STP cables, patch panels, modular jack and faceplates and patch cords); fibre optic cables (single mode and mu/timode fibre optic cables, fibre optic patch panels, fibre patch cords and fibre optic adapters); and Racking system for structured cabling. (c) Purchases for IT seNices-related equipment, components and parts comprise’­network equipment (core switches and managed switches, enterprise wireless access points and controllers); enterprise seNers (HP ProLiant series, Dell PowerEdge series and IBM System X series); enterprise storage (full range of HP storage from P2000, P4000 and 3PAR series, and Dell storage from MD series, EqualLogic and Compellent series); VMware virtualisation platform (VMware vSphere licensing for Standard to Enterprise licenses); and Microsoft software licenses (Windows SeNer, SQL Database SeNer, Exchange SeNer to Cloud­based Exchange Online and Lync SeNices). (d) The consolidation adjustment represents the elimination of inter-company transactions within our Group. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0 6. BUSINESS OVERVIEW (CONT’D) 6.6 Approvals, major licences and permits obtained Details of the approvals and major licences obtained by us for the business and operations of our Group are set out below:­
Company No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D)
equipment such as  installation and repair of  plant machinery and  equipment, installation,  testing, commissioning,  maintenance and repair  of mechanical based  system like waste  treatment plant,  installation of water  treatment plant, rotary  pump, reciprocating  pump, centrifugal pump  and special purpose  pump. Installation of  pumping apparatus,  conveyor system, mobile  rack, etc; and  (iv)  Category E:­ (a) E01:  Installation of public  address system, audio  visual system, conference  system, intercom system  and MATV;  (b) E02:  Installation and  maintenance of security  control, monitoring  system, security alarm,  parking security and  entrance card system,  CCTV, sensor/ detection  _—–!–‘  _I  ,  system, gas protection system, platform alarm system, lightning rotection svstem; and
information regarding new construction works or contract(s) within one (1) month of the award;
(e) Cabnet Systems shall submit I Complied any information required by CIOB from time to time;
(f) Cabnet Systems shall display I Complied the certificate of registration issued by CIOB or a certified true copy of the certificate of registration by CIOB at Cabnet Systems’ place of business;
(g) Cabnet Systems shall display I Complied its registration number on the signboard at each construction site;
(h) Cabnet Systems shall apply for I Complied renewal of registration at any time within 60 days before the I expiry date specified in this certificate. Any renewal application received by CIOB later than 30 days before the expiry of the certificate of registration shall be imposed with a fee of RM200 for late renewal; and
(i) Cabnet Systems shall comply I Complied with all requirements and stipUlations in Cabnet Systems’ contractor’s code of ethics.

[company No. 1121987-0 II
6. BUSINESS OVERVIEW (CONT’O)
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK) I Company No. 1121987-D 6. BUSINESS OVERVIEW (CONT’D)
12 November 2017 (a) CE21: (ii) Category M:­(a) M15: General civil engineering works; and Various mechanical equipment such as installation and repair of plant machinery and equipment, installation, testing, commissioning, maintenance and repair of mechanical based system like waste treatment plant, installation of water treatment plant, rotary pump, reciprocating pump, centrifugal pump and special purpose pump. Installation of pumping apparatus, conveyor system, mobile rack, etc. (a) Cabnet Penang shall comply with the provisions of the LPIP Act, the regulations made thereunder and any term, condition or restriction imposed by CIDB from time to time;
(b) Cabnet Penang shall not participate in any tender or execute any construction works upon the expiry of this certificate unless it is renewed;
(c) Cabnet Penang shall not undertake any construction project which exceeds the value of RM 1,000,000 and shall not execute any construction projects which is outside the permitted category certified under Cabnet Penang’s registered category;

Complied Complied Complied
Company No. 1121987-0 6. BUSINESS OVERVIEW (CONTO) Cabnet Penang shall information regarding new construction works or contract(s) within one (1) month of the award; (e) Cabnet Penang shall submit any I Complied information required by CIOB from time to time;
(f) Cabnet Penang shall display the I Complied certificate of registration issued by CIOB or a certified true copy of the certificate of registration by CIOB at Cabnet Penang’s place of business;
(g) Cabnet Penang shall display his I Complied registration number on the signboard at each construction site;
(h) Cabnet Penang shall apply for I Complied renewal of registration at any time within 60 days before the expiry date specified in this certificate. I Any renewal application received by CIOB later than 30 days before the expiry of the certificate of registration shall be imposed with a fee of RM200 for late renewal; and
(i) Cabnet Penang shall comply with I Complied all requirements and stipulations in Cabnet Penang’s code of ethics.

11 Company No. 1121987-0 II I II 6. BUSINESS OVERVIEW (CONT’D)
[CDmpany No. 1121987-0 6. BUSINESS OVERVIEW (CONT’D) (iii) (iv)  Qualifying Activities. The recruitment, employment and/or appointment of foreign “Knowledge Workers” (if any) shall be the sole responsibility of Cabnet Systems and MOEC shall not be held responsible for any liability arising from such recruitment, employment and/or appointment; Cabnet Systems shall ensure that before its third (3’d) year of operations:­(a) At least 50% of the products I Complied and services produced pursuant to the MSC Malaysia Qualifying Activities are exports, namely products and services that are outbound or sold to multi­national companies; and (b) Notwithstanding and without I Complied prejudice to above, ensure that at least 70% of its total number of employees (excluding support staff) are “Knowledge Workers”. Cabnet Systems shall ensure that I Complied any products produced pursuant to the MSC Malaysia Qualifying Activities are original, and that no part or portion of such product is an infringement or violation of any intellectual property or an: proprietary rights of any third (3′ ) party, or constitutes a misappropriation of know-how belonging to any third (3’d) party;
Company No. 1121987-D II J 6. BUSINESS OVERVIEW (CONT’D) (v) (vi) (vii)  Cabnet Systems shall submit MDEC a copy of Cabnet Systems’ annual report and audrted statements in parallel with submission to the Companies Commission of Malaysia; Cabnet Systems shall inform MDEC of any change in the equity structure or shareholding structure of Cabnet Systems, or such other changes that may affect the direction or operation of Cabnet Systems. MDEC must be informed of any change before steps are taken to effect such change; Cabnet Systems shall comply with all such statutory, regulatory and/or licensing requirements as may be applicable, including but not limited to the Transfer Pricing Guidelines issued by the Inland Revenue Board of Malaysia on 2 July 2003, and such other amendments as may be applicable from time to time.  com~ I Complied I Complied
Notes:­* MDEC, had on 12 January 2016, issued to Cabnet Systems a written confirmation on Cabnet System’s compliance of all MSC conditions. A CabNet ICT Infrastructure Solutions refers to the structured cabling works whilst CabNet EL V Solutions refers to the EL Vsystems. [company No. 1121987-0 II 6. BUSINESS OVERVIEW (CONTD) Cabnet Systems  MITI  A period of 5 years from 8 August 2007 and extended for a further period of 5 years to 7 Auqust 2017  (i) Pioneer status  3032  MSC Malaysia Status  Complied
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0 ‘I] 6. BUSINESS OVERVIEW (CaNTO) 6.7 Brand names, patents, trademarks, technical assistance agreements, franchises and other intellectual property rights Save as disclosed below, as at the LPD, we do not have any other brand names, patents, trademarks, technical assistance agreements, franchises and other intellectual property rights for our business operations:­The trademark surveying, Scientific, been registered with photographic, optical, the Intellectual weighing, measuring, Property Corporation signalling, checking Malaysia on 13 May (supervision), life­2015. saving and teachingCabNet apparatus and instruments; apparatus and instruments for conducting, switching, transforming, accumulating, regulating or controlling electricity; apparatus for recording, transmission or reproduction of sound or images; magnetic data carries, recording discs; automatic vending machines and mechanisms for coin operated apparatus, cash registers, calculating machines, data processing equipment and computers, fire-extinguishing a aratus
Telecommunications 38 2015005173 The trademark has been registered with the Intellectual Property Corporation of Malaysia on 13 May 2015,CabNet
Scientific and 42 2015005174 The trademark has technological services been registered with and research and the Intellectual design relating thereto; Property Corporation industrial analysis and of Malaysia on 13 May research services; 2015. design andCabNet development of computer hardware and software Company No. 1121987-D 6. BUSINESS OVERVIEW (CONT’D) 6.8 Dependency on patents, licences, industrial, commercial or financial contracts or arrangements Save for the licences as disclosed in Section 6.6 of this Prospectus, we are not dependent on any other patents, licences, industrial, commercial or financial contracts or arrangements that could materially affect our business or profitability. 6.9 Major customers Our Group’s major customers which have contributed more than 10% of our total revenue for the FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016 are as follows:-
Daiman Landmark Hotel Sdn Bhd  7 years  4,622  13.57  3  14  0.02  Kimlun Sdn Bhd  4 years  2,355  6.91  1,222  3.09  5,932  11.67  Revenue contribution from major customers  6,977  20.48  1,225  3.09  5,946  11.69
The fluctuation in the percentages of revenue contribution amongst our customers varies from year to year as a result of the nature of our business being conducted on a project basis. We may not secure similar projects in terms of size and scope with the same customer every year. We are not dependent on the abovementioned major customers as we have a wide customer base of over 300 customers as at the LPD. Nonetheless, we have also established long term business relationships with other customers. Please refer to Section 6.17 (iv) of this Prospectus for the list of selected long term customers. 6. BUSINESS OVERVIEW (CONT’D) 6.10 Major suppliers Our Group’s major suppliers which have contributed more than 10% of our purchases in the FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016 are as follows:-
Innovix Distribution Sdn Bhd (formerly known as Jardine OneSolution (2001) Sdn Bhd  13 years  3,348  17.59  3,723  18.52  5,877  21.40  ECS AStar Sdn Bhd  9 years  1,939  10.19  446  2.22  488  1.78  Total purchases from major su pliers  5,287  27.78  4,169  20.74  6,365  23.18
Note:­* Represents the percentage over our Group’s total purchases [fHE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6. BUSINESS OVERVIEW (CONTD) Innovix Distribution Sdn Bhd (formerly known as Jardine OneSolution (2001) Sdn Bhd) emerged as our major supplier for the past three (3) financial years, contributing to 17.59%, 18.52% and 21.40% of our Group’s total purchases in the respective FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016. Our Group procured IT services­related equipment, components and parts from Innovix Distribution Sdn Bhd (formerly known as Jardine OneSolution (2001) Sdn Bhd) in the past three (3) financial years. ECS AStar Sdn Bhd emerged as our major supplier in the FYE 31 December 2014, contributing to 10.19% of our Group’s total purchases. In the FYE 31 December 2015 and FYE 31 December 2016, our purchases from ECS AStar Sdn Bhd constituted less than 10% of our Group’s total purchases. Our Group procured IT services-related equipment, components and parts from ECS AStar Sdn Bhd in the FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016 respectively. Save for the above, we are not dependent on the other abovementioned major suppliers as our Group’s purchases from our suppliers vary from year to year depending on the specific requirements of our projects. Our usual practice is to accept quotes from several suppliers and engage the services of those who are able to meet the project time schedule and can consistently provide favourable terms with regards to the quality of materials and services provided, reliability of service, and purchase terms and conditions. 6.11 R&D On 1 April 2015, our Group had engaged and commissioned a third party developer, Kong Chee Wah (who became the head of our Group’s R&D division in January 2016 to set up our R&D division), for software development works, known as the CISS. Our R&D division is led by Kong Chee Wah, aged 44, who started working as a computer sales representative and technician in 1993. He later obtained his Bachelor of Science (Honors) in software engineering from University of Central England, United Kingdom, in 1999. He has approximately 15 years of experience in the areas of IT programming, software engineering, IT systems management and IT R&D. He is supported by Chooi Chong Yee, aged 33, a senior software executive who graduated from Universiti Putra Malaysia with a Bachelor’s degree in Engineering (computer/telecommunication) in 2010 and has five (5) years of working experience in the area of software engineering. The CISS integrates various brands of ELV systems, such as CCTVs and ACS, onto a single platform which allows users to manage and control these systems from a centralised control room. The CISS also has a visitor management feature which was developed by our Group R&D division that allows the user in the centralised control room to track visitors/vehicles that are entering and exiting the building. The CISS is a value added option to our customers and is not intended for sale, in view that there are other products in the market which have similar feature. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-D I] 6. BUSINESS OVERVIEW (CONT’D) We started the pilot testing which comprises alpha and beta testings of the CISS in October 2015 at Summerscape Condominium in Johor. We completed alpha testing (unit testing, component testing and system testing) of CISS at Summerscape Condominium in December 2015. Presently we are in the midst of conducting beta testing at Summerscape Condominium, which follows after the completion of alpha testing, to collect user feedback on the long term functionality and stability of the CISS in coping with large number of users during the test. The beta testing at Summerscape Condominium was set for a period of twelve (12) months and is targeted to conclude in December 2016. Our R&D team incorporates findings and recommendations from the beta testing at Summerscape Condominium to further improve and refine the functionality of the CISS by way of adding new features into the CISS. In general, the beta testing of the CISS is to be conducted for a period of up to twelve (12) months and seNes as a mean to understand the requirements of our existing clients and is an effort by our Group to continuously refine our CISS. We are committed to the further refinement of the CISS, and will continue to obtain user feedback subsequent to the completion of beta testing. Since the establishment of our R&D division in February 2016 until the LPD, the total R&D expenses amounting to RMO.19 million have been incurred mainly for the salary and allowances of the R&D staff. Currently we have two (2) staff hired under the R&D division. There are no other plans apart from focusing on improving and refining the functions of CISS. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0 6. BUSINESS OVERVIEW (CONT’D) 6.12 Location of operations and equipment 6.12.1 Principal location of premises 6.12.1.1 Real properties owned by our Group As at the LPD, the details of the land and buildings owned for our operations are as follows:­
[iompany No. 1121987-0] 6. BUSINESS OVERVIEW (CONT’D) issuance of individual/strata title) in all three (3) floors office / Currently favour of Alliance Bank Malaysia Berhad are used by our pursuant to a Deed of assignment dated Group as our 20 January 2015 and Power of Attorney branch office to dated 20 January 2015. carry out day-to­day operations
Cabnet Systems Location / Postal Address No G-02, 1-02 and 2­02 Puchong Square, Jalan Layang-Layang 5, Bandar Puchong Jaya, 47170 Puchong, Selangor. Title identification Master titles: GRN74709, Lot 2687, GM 1163, Lot 2697, GM 1061 Lot 2670, GM1060, Lot 2681, GM 731, Lot 2701. Note: Individual title to this property has not been issued as at the LPO and this property sits on part of the master titles listed above. Company No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D) August 2003. Cabnet Systems
house 1Currently used by our Group for storage
Location 1 Postal of related IT Address equipment, stock and materials. No. 182 Jalan Mempelam, Taman Kota Jaya, 81900 Kota Tinggi (DS-SH)
Title identification GRN 174500, Lot 13725, Mukim Kota Tinaai, Johor
Note:­Approximately 2,310 square feet of the built-up area of this property has been rented to ITWin as office and storage space at a monthly rental of RM3,000 for the period commencing 1 January 2015 to 31 December 2016. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [COmpany No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D) 6.12.1.2Real properties rented by our Group As at the LPD, the details of the land and buildings leased or rented for our operations are as follows:­
Name of tenant  Berjaya Times  , One (1) office unit  Square Sdn Bhd  at level 21 of a  Cabnet Systems  commercial building  / Currently used by  Location / Postal I  our Group as our  address  branch office  I  Suite 21.03A, Level  21, Menara MSC  Cyberport, No. 5,  Jalan Bukit Meldrum,  80300 Johor Bahru,  Johor.
Name of tenant+Tay Hong Sing Three (3)-storey and Tan Boon corner shop house / Cabnet Systems Siang Currently used by our Group as our Location / Postal I corporate and head address office and for storage of related IT INo. 102, 102-1 and I equipment, stock 102-2, Jalan Ros I and materials Merah 2/17, Taman Johor Jaya, 81100 Johor Bahru, Johor. 5 November 1998  I  883 (strata area”‘)  1 July 2015 to 30 June 2017  2,561  22 May 1995  1,961 (land) / 5,883 (built-up)  1 January 2017 to 31 December 2018  I  4,800
Company No. 1121987-0 6. BUSINESS OVERVIEW (CONT’O)
Cabnet Penang I Kowi Location I Postal address
70-3-12 O’Piazza Mall, Jalan Mahsuri,
I Bandar Bayan Baru, 11900 Penang. shopping / office mall / Currently used by our Group as our branch office to carry out day-to­day operations Note:­~ This property forms part of a sub-divided office building. As at the date of this Prospectus, our Group is not in breach of any law, rules and building regulations in relation to the use of the properties above. Our Directors wish to highlight that, with respect to the land and buildings owned and leased by our Group as stated above, there are no environmental issues that may materially affect our Group’s operations and utilisation of the above properties. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Company No. 1121987-0]] 6. BUSINESS OVERVIEW (CONT’D) 6.12.2 Equipment A summary of the material equipment owned and used by us are set out below:­those of an otherwise incom atible device or s stem Tool to perform inspection and cleaning, troubleshooting and verification tests, as well as certification tests Tool used to join two (2) ends of separate optical fibres using heat Tool used to verify splice loss (signal loss due to joined fibre optic cables), measure length and detect faults for fibre optic cables
6.13 Technologies used Technology is crucial to our business operations and we rely on several software to carry out the delivery of building management solutions comprising structured cabling works and ELV systems, as well as IT services. These include, but not limited to, the following third party software:­a. Microsoft Visual Studio Express Edition This software runs primarily on Microsoft Windows and comprises a large Framework Class Library that provides language interoperability across multiple programming languages. Programs that are written for .Net Framework using Microsoft Visual Studio Express Edition can be operated in a software environment known as Common Language Runtime, a virtual application machine that provides security, memory management, and exception handling. b. Microsoft Structured Query Language (“SQL”) Server Express Edition This relational database management system was developed by Microsoft, where its primary function is to store and retrieve data requested by other software applications on the same network or those on another computer in the same network. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] II Company No. 1121987-D ~ 6. BUSINESS OVERVIEW (CONT’D) c. Bosch Video Software Development Kit (“SDK”) The Bosch Video SDK is a tool that is used to integrate Bosch IP devices onto developer applications This tool consists of reusable software based on COM and ActiveX. Bosch Video SDK allows decoding and rendering of audio / video as well as compressing video streams. This tool allows users to search for Bosch video-over-IP recordings and replay, exports functionality for live and recorded videos, graphical user interface configuration for video analysis, video analysis information as an overlay to the rendered video and network scan to detect Bosch / ONVIF devices on the network. d. Entrypass SDK The Entrypass SDK is designed to interface between Entrypass Platform ACS to any remote third party software application which is built to receive online transaction in XI\/IL format via TCP / IP socket communication. In this integration, a customised event transmission engine is developed to provide XI\/IL formatted data to remote application upon receiving events from the controller. e. ARH ANPR SDK The ARH ANPR SDK allows the reading of number plates from frame sequences that are transferred to this SDK module, and compares them with results from previous images. If the conditions set by the properties of the module are fulfilled, the ARH ANPR SDK will highlight repetitive number plates across multiple frame sequences. f. ARH Document SDK The ARH Document ADK is a travel document reader and analysis system which is based on the GX system (a program that improves the ease of integration with hardware devices) and provides software developers with an easy to program interface through its Application Programming Interface. This tool allows image capture, document, character and barcode recognition as well as e-passport reading. g. Visitor Management with radio frequency identification (“RFID”) RFID allows the transfer of data wirelessly for the purposes of automatically identifying and tracking tags assigned to visitors. 6.14 Modes of marketing and sales Our Group’s overall sales and marketing activities are spearheaded by our Executive Director / Chief Executive Officer, Tay Hong Sing, assisted by Executive Director / Deputy Chief Executive Officer, Tan Boon Siang; Chief Operating Officer, Yong Thiam Yuen; and Head of Business Development, Koh Thain Lin. Our projects are usually obtained through a tender process where we submit our quotations and demonstrate our capabilities through a formal bidding proposal. We target both public and private sector projects. In our tender proposals, we set out the technical details of our proposed services and solutions, price breakdown, indicative timeline for completion, the proposed project team as well as information on our Group’s capabilities. Our sales and marketing team and engineering team work closely to prepare our tender proposals. In selected cases, we also work together with our suppliers to develop tender proposals. Upon securing the new project, our sales and marketing team will gradually hand over the project to the project team for implementation. ompany No. 1121987-0 6. BUSINESS OVERVIEW (CONT’D) We actively engage in the following marketing strategies:­(i) Customer relationship management We strive to cultivate long-term relationships with our customers through regular visits and meetings. We regularly meet with our existing customers to demonstrate our new capabilities, offer enhancement and upgrading solutions as well as showcase new products and technologies. Through effective customer relationship management, we aim to market ourselves to our existing customers and secure further business from them. (ii) Strategic partnerships and collaborations We seek to engage in strategic partnerships and collaborations with different groups of industry participants to explore new business opportunities. The main groups which we target are partners with strong portfolio of control and automation products and technologies, including amongst others, video monitoring solutions; partners with industry-specific expertise and knowledge; and partners with local and overseas contacts. (1) In this regard, we have entered into a strategic partnership and collaboration with our Pre-IPO Investor, i.e. NetPosa, background information of which are set out in Sections 5.1 and 8.1.2 (i) of this Prospectus, by way of the Collaboration Agreement for a period of five (5) years. Under the Collaboration Agreement, our Company and NetPosa agreed to cooperate and collaborate to jointly explore and promote the business of development and customisation of the hardware of the security system of NetPosa China and NetPosa China’s Products and its related research and development activities. Pursuant to the Collaboration Agreement, Cabnet shall be responsible to:­(a) market and distribute hardware of the security system of NetPosa China and NetPosa China’s Products in Malaysia as an exclusive agent provided that we shall not develop any competing products or develop new functions and applications to the hardware of the security system of NetPosa China and NetPosa China’s Products to compete with NetPosa within three (3) years from the date of the Collaboration Agreement;
(b) obtain prior consent of NetPosa before entering into any distributorship arrangement with third party to distribute products that are similar to the hardware of the security system of NetPosa China and NetPosa China’s Products. In the event Cabnet has already entered into distributorship agreements at the time the Collaboration Agreement was made with NetPosa, Cabnet will not be required to obtain such consent from NetPosa provided that the products under such distributorship agreement do not compete with the hardware of the security system of NetPosa China and NetPosa China’s Products;
(c) collect customers’ feedback on the hardware of the security system of NetPosa China and NetPosa China’s Products; and
(d) advise on the general marketing know-how and provide market intelligence and information on its related research and development activities in relation to the hardware of the security system of NetPosa China and NetPosa China’s Products.

122 Company No. 1121987-D 6. BUSINESS OVERVIEW (CONTD) while NetPosa shall be responsible to:­(aa) provide training to our personnel during the tenure of the Collaboration Agreement; (bb) grant the right to use the intellectual property rights in relation to the hardware of the security system of NetPosa China and NetPosa China’s Products, to Cabnet during the subsistence of this Collaboration Agreement at the sole discretion of NetPosa; (cc) provide its product information to Cabnet on the condition of Cabnet undertakes to translate the hardware of the security system of NetPosa China and NetPosa China’s Products information for NetPosa. In this regards, Cabnet shall be allowed to use the translated products information under the parties’ respective names and logos for marketing purposes; (dd) provide technical expertise by way of remote technical support to solve any technical issues after the sales of the hardware of the security system of NetPosa China and NetPosa China’s Products should Cabnet fail to resolve the same during the warranty period. Upon the expiry of such warranty period, Cabnet shall be liable to pay for an amount as mutually agreed by Cabnet and NetPosa, for any technical support services rendered by NetPosa. (2) Our Company and NetPosa subsequently agreed to provide clarity to the Collaboration Agreement, in particular, the roles of the respective parties under the Collaboration Agreement, whether the hardware of the security system of NetPosa China is intended to be included in the agreed collaboration and whether there was actually joint development under the Collaboration Agreement. There were also subsequent discussions with NetPosa whether our Company should continue to be bound by the restrictions as described in paragraphs (1 )(a) and (b) above. We subsequently entered into the Supplemental Agreement with NetPosa, Whereby it was agreed by our Company and NetPosa that:­(a) our role and NetPosa’s role under the Collaboration Agreement were defined clearly. Please see paragraph 3 below for clear details of our role;
(b) the products covered by the Collaboration Agreement were confined to NetPosa China’s Products only since it was not the initial contemplation of the parties to include the hardware of the security system of NetPosa China in the collaboration;
(c) all expressions and references to joint development that were used in the Collaboration Agreement will be removed since the collaboration agreed by the parties is confined to only customising NetPosa China’s Products through translation of language; and
(d) the restrictions imposed by NetPosa on our Company under the Collaboration Agreement in the form of restrictions relating to developing any products in competition with NetPosa China’s Products and the requirement to obtain prior consent of NetPosa before we enter into any distributorship agreements in the Collaboration Agreement, were removed.

Company No. 1121987-D II 6. BUSINESS OVERVIEW (CONT’D) (3) On execution of the Supplemental Agreement, our Company continues to be the sole business partner of NetPosa for the agreed period of five (5) years and bears the obligation to:­(a) assist and support NetPosa in customising the NetPosa China’s Products for purposes of the Malaysian market by translating the information, including technical terms, contained in the NetPosa China’s Products from Mandarin to English;
(b) promote, sell and supply the NetPosa China’s Products in Malaysia together with the services and solutions provided by our Group;
(c) provide to NetPosa with Malaysian market feedback and Malaysian market information relating to the NetPosa China’s Products; and
(d) install the NetPosa China’s Products for orders secured directly by NetPosa or NetPosa China and at the same time offer our Group’s services and solutions to NetPosa’s or NetPosa China’s customers.

In return, as sole business partner of NetPosa, our Company will be entitled to:­(aa) offer our Group’s services and solutions to NetPosa’s or NetPosa China’s customers in Malaysia when installing the NetPosa China’s Products at NetPosa’s request. This presents additional business opportunities and revenue generation potential for our Group’s services and solutions in Malaysia; (bb) be given the priority to install the NetPosa China’s Products and to offer our Group’s services and solutions to customers of NetPosa China in the region of South East Asia. This presents additional business opportunities and revenue generation potential for our Group’s services and solutions from overseas projects where our Group can offer our services and solutions to customers of NetPosa or NetPosa China in the region of South East Asia by way of introduction by NetPosa; [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
No. 1121987-0 6. BUSINESS OVERVIEW (CONT’D) (cc) be provided full technical support, comprising training, technical expertise and technical support. Our Group is able to rely on the full technical support throughout the period of the Collaboration Agreement, as and when requested by our Group, including whenever our Company is unable to resolve technical issues or problems of NetPosa China’s Products. The full technical support will provide our employees with opportunities for training that can contribute to enhancing their knowledge; (dd) be provided remote technical support services (i.e. by way of communication by phone or secured internet connection) during the warranty period of installed NetPosa China’s Products, typically one (1) year from the date of delivery to the customers; (ee) be granted a licence to use the Intellectual Property Rights of the NetPosa China’s Products in Malaysia only whereby our Company will be entitled and allowed to use its trademark and copyright for purposes of promoting and selling l\letPosa China’s Products in Malaysia. Usage of such Intellectual Property Rights is necessary and crucial in order to facilitate all promotion of the NetPosa China’s Products in Malaysia. The licence to use the Intellectual Property Rights of NetPosa China’s Products is not granted beyond Malaysia because our Group has no role or obligation to sell and supply NetPosa China’s Products outside Malaysia. Save as amended, supplemented and added by the Supplemental Agreement, the remaining parts of the Collabration Agreement, in particular the agreed term of five (5) years remained unchanged and valid. In this regard, the Collaboration Agreement can be terminated by either party thereto on the occurrence of any of the following events:­(aaa) one (1) party commits a material breach; or (bbb) one (1) party becomes insolvent; or (ccc) an order is made or a resolution is passed to wind up one party (other than voluntarily for the purpose of solvent amalgamation or reconstruction); or (ddd) an administrator or a receiver is appointed in respect of the whole or any part of one party’s assets or business; or (eee) one party enters into any arrangement with its creditors when it becomes insolvent; or (fff) mutual agreement of our Company and NetPosa. In the event the Collaboration Agreement is terminated, our Company and NetPosa will be discharged from all obligations contained in the Collaboration Agreement free from any liabilities. Accordingly, all intellectual property rights granted to our Company shall cease to be effective and deemed revoked on termination of the Collaboration Agreement. Our Company and NetPosa further agree that notwithstanding the termination of the Collaboration Agreement, each party shall continue to be the first choice business partner to the other. Our Directors formed the view that our Group can derive the following benefits from the Collaboration Agreement:­125 Company No. 1121987-D II 6. BUSINESS OVERVIEW (CONT’D) (i) Leverage on the NetPosa China’s Products for additional revenue generation potential; As set out in Section 6.18.1 (iii) of the Prospectus, Cabnet Group intends to offer video monitoring solutions for township, district and state level in Malaysia through its collaboration with NetPosa. NetPosa China’s Products features, amongst others, vehicle count, people count, crowd detection, illegal parking and etc. that is targeted at township, district and state level. Thus, with the collaboration with NetPosa, Cabnet Group will be able to expand its services and solutions to cover different market segments. In addition, NetPosa China’s Products offer the flexibility to customise its products for purposes to meet the local market needs of Cabnet Group’s target customers who are building contractors, building owners and building operators of smaller scale projects (i.e. educational institutions, commercial malls and factories). The flexibility of NetPosa China’s Products provides time and cost savings to Cabnet Group without having to develop extra features on its own. These extra features include, amongst others, crowd detection, illegal parking detection, vehicle count and etc. Please refer to Section 6.18.1 (iii) of the Prospectus for the comparison between NetPosa China’s Products and CISS. In addition, NetPosa China is prepared to provide complimentary use of its software to Cabnet Group’s customers for a period of up to one (1) year with an option to purchase the software after the one (1) year period as part of its strategy in promoting and creating awareness for NetPosa China’s Products in Malaysia. Premised on the above, it presents Cabnet Group with additional revenue generating potential by leveraging on NetPosa China’s Products. (ii) Leverage on the business relationship between Cabnet and NetPosa, and Netposa being a shareholder of Cabnet; Our Group had on 20 June 2016, secured a RM4.9 million contract (inclusive of GST of RMO.3 million) with Country Garden Pacificview Sdn Bhd for the provision of ELV systems, structured cabling works and IT services in Forest City Hotel, Johor, by virtue of Cabnet being the sole business partner of NetPosa in Malaysia. Country Garden Pacificview Sdn Bhd is a joint venture company between Country Garden Waterfront Sdn Bhd (a subsidiary of Country Garden Holdings Co. Ltd. (a PRC-based company listed on Hong Kong Stock Exchange)) and Esplanade Danga 88 Sdn Bhd (an associate company of Kumpulan Prasarana Rakyat Johor (KPRJ)) on a 60:40 basis. Country Garden Pacificview Sdn Bhd is the developer of Forest City at Johor. Forest City is a smart city spanning over 1,386 hectares on four man-made islands with an estimated investment of S$58.3 billion over the next 20 years. (Source: Businesswire) (iii) Trade exhibitions, conferences and workshops To further enhance our profile and visibility in the industry, we participate in trade exhibitions, public forums, conferences and workshops organised by various industry­related organisations and/or companies. 126 Company No. 1121987-D II 6. BUSINESS OVERVIEW (CONT’D) These sessions attract a wide range of audience from different groups of industry players and building and facility owners to discuss and exchange ideas and knowledge with audiences of trade exhibitions, pUblic forums, conferences and workshops, to understand latest product and technology developments relating to IT services. Through such platforms, we can engage in targeted marketing programmes to highlight and reinforce the awareness of our Group and our capabilities. Further we have also co-organised the following events in the past three (3) financial years:-
6.15 Seasonality I Cyclicality We do not experience any seasonality in our business as the demand for building management solutions comprising structured cabling works and ELV systems, as well as IT services, are not SUbject to seasonal fluctuations. 6.16 Interruption to business and operations Our Group has not experienced any interruption in business which had a significant effect on operations during the twelve (12) months period prior to the date of this Prospectus. 6.17 Competitive strengths and advantages We believe that our historical successes and future prospects are underpinned by the following competitive strengths:­[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [[?OffiPany No. 1121987-0 II 6. BUSINESS OVERVIEW (CONTD) (i) We provide building management solutions in relation to structured cabling works and ELV systems, as well as IT services that is backed by a project delivery team As at the LPD, we have a total of 41 project delivery employees, comprising 8 engineers and 33 technicians that manage project delivery activities for building management solutions and IT services provided by our Group. As we are able to leverage on the capabilities of our project delivery team, this reduces our dependency on outsourced or external services and allows our Group to undertake multiple projects simultaneously, thereby enabling us to manage our projects effectively. We have successfully secured and completed various projects by leveraging on the strength of our project delivery team. Please refer to Sections 6.1.1 and 6.1.2 of this Prospectus for a list of some of our completed projects. Based on the above, our Group is well-positioned to bid for future projects. (ii) We have capabilities in delivering building management solutions in relation to structured cabling works and ELV systems, as well as IT services across various property segments Our Group is able to deliver building management solutions in relation to structured cabling works and ELV systems, as well as IT services for the residential property segment, commercial property segment and industrial property segment, where we are able to customise our solutions and services for our clients based on their type of property, development scale and allocated budget. Our Group’s percentage of revenue derived from residential property segment, commercial property segment, industrial property segment and other segment for the FYE 31 December 2014, FYE 31 December 2015 and FYE 31 December 2016 are as follows:
Property  -Residential  7.38  20.02  10.87  26.14  24.81  46.99  – Commercial  15.34  41.62  15.04  36.17  11.96  22.65  – Industrial  12.96  35.16  15.12  36.37  15.51  29.38  Others*  1.18  3.20  0.55  1.32  0.52  0.98  Total  36.86  100.0  41.58  100.0  52.80  100.0
Note:­Infrastructure and public facilities such as seaport and public road facilities As our Group serves customers in the residential property segment, commercial property segment and industrial property segment, our risk of relying on the performance of anyone particular property segment is mitigated. Please refer to Sections 6.1.1 and 6.1.2 of this Prospectus for a list of some of our completed major projects. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] mpany No. 1121987-0 6. BUSINESS OVERVIEW (CONT’O) Our wholly-owned subsidiary, Cabnet Systems, is registered with the CIDB as a Grade ‘7’ contractor company, the highest classification accorded by CIDB, which allows us to tender for contracts of unlimited value. Accordin~ to the IMR, there were a total of 6,868 Grade 7 registered contractors in Malaysia1 comprising contractors registered under the categories of building construction, civil engineering as well as mechanical and electrical respectively. The expertise and experience gained by our project employees from the past and present projects undertaken since our incorporation grant our Group the credentials to continuously bid for contracts. Coupled with our range of services and solutions, this positions us as a total solutions provider in relation to structured cabling works, ELV systems and IT services, while giving us the flexibility to customise our solutions and services to various property segments (i.e. residential properties, commercial properties and industrial properties) according to the needs of our client based on the type of properties, development scale and allocated budget. (iii) We have an experienced and committed key management team Our key management team is led by our Group’s Promoters, Tay Hong Sing and Tan Boon Siang, each of whom possess more than 26 years of experience across the fields of engineering, structured cabling, ELV systems and ICT. Our Promoters are further supported by our key management team with experience in their respective functional areas. Please refer to Sections 8.1.2, 8.2.2 and 8.4.2 of this Prospectus for more details on the experience of our Promoters, Directors and key management personnel. The collective experience and knowledge of our Promoters, Directors and key management team have been and will continue to be a foundation for our Group’s success. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 10 As at 31 December 2016, being the date this information was obtained from the CIOB. 6. BUSINESS OVERVIEW (CONT’D) (iv) We have long-standing relationships with our customers and suppliers Our long term business relationships with our customers have contributed to our success in securing projects in Malaysia. Among others, our long term customers and their revenue contribution for the past three (3) FYE 31 December 2014 to FYE 31 December 2016 are as follows:-
Kiswire Sdn Bhd group of companies Infineon Technologies (Malaysia) Sdn Bhd Tiong Nam Logistics Solutions Sdn Bhd Flextronics Technology (M) Sdn Bhd group of companies Takenaka (M) Sdn Bhd 252 0.6422 years 658 1.93 7 years 4.43 7.171,510 2,838 15 years 469 531 1.341.38 205 0.5215 years 308 0.90 3.48 2,769 6.9910 years 1,185 Total revenue from long 12.12 6,5954,130 16.66term customers Note:­(1) Being the revenue contribution to our Group’s total revenue. 179  0.35  2,173  4.27  397  0.78  46  0.09  77  0.15  2,872  5.64
Our emphasis on customer service, as well as our commitment to ensuring quality solutions and services, have helped us maintain these customer relationships. This translates into assurance for our Group’s business continuity and serves as reference to any potential new customers. We also maintain long-term business relationships with our suppliers. With Robert Bosch (M) Sdn Bhd, we have secured dealership agreement which allow us to meet customer needs. Among others, our long term suppliers and our Group’s purchases from these suppliers for the past three (3) FYE 31 December 2014 to FYE 31 December 2016 are as follows:­6. BUSINESS OVERVIEW (CONT’D)
Telemaju Technology 17 years 734Sdn Bhd VA Dynamics Sdn Bhd 20 years 959 Robert Bosch (M) Sdn 7 years 521Bhd Innovix Distribution Sdn Bhd (formerly known 13 years 3,348as Jardine OneSolution (2001) Sdn Bhd) ECS AStar Sdn Bhd 9 years 1,939 Total purchases from long term 7,501suppliers Note:­(1) Being the purchases of our Group. 3.86 5.04 2.74 17.59 10.19 39.42 546 799 994 3,723 446 6,508 2,064 7.522.72 856 3.123.98 4.95 2,133 7.77 18.52 5,877 21.40 2.22 488 1.78 32.39 J 11,418 41.59 These long term relationships serve to provide stable supply source and ensure our continued growth and sustainability. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6. BUSINESS OVERVIEW (CONT’D) 6.18 Future plans, business strategies and prospects 6.18.1 Future plans and strategies We intend to focus on the following business strategies for the future growth and expansion of our business:­(i) We plan to increase and strengthen our market presence in Johor, while pursuing more opportunities for more projects outside Johor We principally operate in Johor, where we have completed many of our major projects. Please refer to Sections 6.1.1 and 6.1.2 for a list of our major projects. Further, we derived a substantial portion of our revenue from projects in Johor. The percentage of revenue recognition from projects in Johor, outside Johor and overseas in the most recent three (3) FYE 31 December are as follows:­
Malaysia, comprising -Johor * -Outside Johor  78.83 20.84  79.91 19.75  89.71 10.28  Overseas, comprising -Singapore -Indonesia  0.28 0.06  0.32 0.02  0.01  Total  100.0  100.0  100.0
Notes:­After elimination of inter-company transactions within our Group. (a) In Johor The percentage of our revenue recognition from projects in Johor has witnessed an increase from FYE 31 December 2014 to FYE 31 December 2016 from 78.83% to 89.71%. We intend to further tap the growing market in Johor to grow our business. According to the IIVIR Report, and as shown in Section 7 of this Prospectus, the prospects in the electrical services, ICT and construction industries are expected to remain positive, and as such we will continue to pursue opportunities in Malaysia, especially in Iskandar Malaysia, to further grow our market share. The prospects of Iskandar Malaysia are presented in Section 7 -Overview of the Construction Industry in Johor. Whilst our Group will continue to pursue opportunities in the residential property and infrastructure segments, we intend to leverage on our track record and market reputation in Johor to further tap into the growth in the commercial property, industrial property segments and other segment (such as public facilities) by bidding for more projects for data centres and seaports, as well as projects in the oil and gas sector which falls under industrial property segment. In 2016, the Johor state government announced its intention to develop a 20,000 hectare area in the town of Sedenak into a data centre. 132 Company No. 1121987-DJ 6. BUSINESS OVERVIEW (CONT’D) The projects undertaken by our Group include, amongst others, structured cabling projects for data centres for CSC Malaysia Sdn Bhd, ELV system projects for a seaport for Dimension Data (Malaysia) Sdn Bhd and IT services projects for oil and gas sector for Pengerang Independent Terminals Sdn Bhd. Please refer to Sections 6.1.1 and 6.1.2 of this Prospectus for further details on our past and on-going major projects. Projects for data centres and seaports, as well as projects in the oil and gas sector have stringent safety requirements and highly specialised processes that will require complex integrated building systems to manage and monitor their facilities and environments. Our Group has demonstrated capabilities in these projects based on our track record in delivering building management solutions in relation to structured cabling works and ELV systems, as well as IT services. Hence, our Group is able to further expand into these market segments which will in turn allow us to further grow our business and strengthen our market presence in Johor. (b) Outside Johor The percentage of our revenue recognition from projects outside Johor has witnessed a decline from FYE 31 December 2014 to FYE 31 December 2016 from 20.84% to 10.28%. Following this, we recognise the importance of improving our market presence outside Johor. We will focus our efforts in tendering for more projects in structured cabling works and ELV systems, as well as IT services outside Johor, mainly in Klang Valley and Penang, for residential property, commercial property, industrial property segments and other segment (such as public facilities). In this regards, we recruited Yong Thiam Yuen as the Chief Operating Officer of Cabnet Systems, and subsequently he assumed his present role as our Group’s Chief Operating Officer. Yong Thiam Yuen is entasked to drive sales growth for our Group, especially outside Johor. Additionally, in 2016, our Group recruited a business development manager to pursue business development and sales efforts in Penang. Since their appointments, they have taken efforts to widen our Group’s industry network and contacts among professionals in the construction sector, including contractors, consultants, developers and engineering firms. Furthermore, we intend to expand our sales and marketing team to be based in central region office in Puchong by recruiting two (2) additional sales and marketing executives in first half of 2017 to source for more projects in Klang Valley. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] [[COffipany No. 1121987-0 .~ 6. BUSINESS OVERVIEW (CONT’O) Further to the above, we intend to increase our market presence, through the implementation of business development strategies on a progressive basis, which include: (a) We are a member of BCI Asia, an industry platform by BCI Media Group11. As members of BCI Asia, we have access to current business-to-business sales leads for projects within the construction sector in Malaysia based on research carried out by BCI Media Group and a network of contacts within the construction sector comprising contractors, consultants, developers and engineering firms. This allows our Group to remain updated on upcoming projects which could present business opportunities for structured cabling works, ELV systems and IT services of our Group;
(b) Our Group will approach contractors, consultants, developers and engineering firms who are involved in or are key decision makers in projects within the construction sector in Malaysia to offer our services and solutions. In addition, we are able to gain understanding of their needs and expectations for our Group to formulate the required services and solutions; and
(c) We will continue to proactively participate in prequalification assessments to register our Group on the contractors’, consultants’, developers’ and engineering firms’ tender invitation lists. Such prequalification assessments typically require us to submit our detailed Group’s profile. Proactive participation in prequalification assessments will create awareness for our Group’s services and solutions, and prepare us to readily participate in tender opportunities for structured cabling works, ELV systems and IT services, when such opportunities arise.

[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 11 BCI Media Group is the provider of information relating to construction projects in each country within the Asia Pacific region to its members. II Company No. 1121987-0 II 6. BUSINESS OVERVIEW (CONT’D) (ii) We  intend  to  strengthen  our  ELV  systems  segment  with  the  introduction  of  our  integrated se curity  solutions  software,  known  as  CISS
We have increasingly grown the ELV systems segment, arising from the increasing market demand for security. According to the IMR, video surveillance is increasingly becoming a method to meet the demand for greater levels of security within the community. Video surveillance cameras are widely used to monitor, observe and analyse a person, a group, activities or even objects, and assist in deterring and detecting potential offenders and crimes, and aid police in rendering assistance effectively. The end-user customer segments for video surveillance is wide and varied, ranging from the Government sectors to retail, financial, educational and even industrial sectors. Each customer requires surveillance for different use, in turn involving different systems requirements and equipment according to the environment it operates in. With the increasing awareness for security among building owners and/or operators, our Group has developed our own integrated security solutions software known as CISS, which will be included in the ELV systems that we offer to our customers as a value-added option and is not intended for sale on a standalone basis. We began pilot testing which comprises alpha and beta testings of the CISS in October 2015 at Summerscape Condominium in Johor, details of which are set out in Section 6.11 of this Prospectus. The CISS is intended to strengthen our portfolio of security solutions to capture increasing commercial opportunities in the market and further increase our presence in the market. Please refer to Section 6.11 of this Prospectus for further details on the main features of the CISS. (iii) We intend to offer video monitoring solutions in collaboration with NetPosa as our strategic partner Since the inception of Cabnet Systems, we have broadened our capabilities from the provision of structured cabling works during our initial years of operations to now, which include integrated security solutions. We intend to further grow and diversify our business, and leverage on our knowledge of the local market and customer requirements to develop new solutions to meet the needs of our customers. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 6. BUSINESS OVERVIEW (CONTD) To this end, we intend to offer video monitoring solutions for township, district and state level in Malaysia through our collaboration with NetPosa to assist and support NetPosa in customising the NetPosa China’s Products for purposes of the Malaysian market by translating the information, inclUding technical terms, contained in the l\JetPosa China’s Products from Mandarin to English, to promote, sell and supply the NetPosa China’s Products in Malaysia together with the services and solutions provided by our Group, to provide to NetPosa with Malaysian market feedback and Malaysian market information relating to the NetPosa China’s Products and to install the NetPosa China’s Products for orders secured directly by NetPosa or NetPosa China and at the same time offer our Group’s services and solutions to NetPosa’s or l\JetPosa China’s customers. Details of the collaboration are as disclosed in Section 6.14 (ii) of this Prospectus. NetPosa China, the parent company of NetPosa, is principally engaged in video processing technologies and provides video monitoring solutions and high-quality video storage products. Please refer to Section 8.1.2 (i) of this Prospectus for further details on the background information of NetPosa. NetPosa China’s Products connect security systems installed in multiple locations with monitoring and analytical capabilities (e.g. vehicle count, people count, crowd detection, illegal parking and etc.) that is targeted at township, district and state level. The key difference between CISS and NetPosa China’s Products is as follows:­Integration of CCTV and Integration of multiple  ACS at a single location security systems (i.e. CCTV  (only wired) and ACS) at mUltiple  locations wireless or wired  Features At\IPR and visitor 36 distinctive features (e.g.  management vehicle count(1), people  count(2) crowd detection(3)  ille al ‘arkin (4) and etc. ‘  Buildings and facilities I Application Township, district and state  level I
(1)  Counting of vehicles passing through an area.  (2)  Counting the number of people passing through an area.  (3)  Detects crowd in an area and alerts user when there is an over-crowding scenario.  (4)  Detects illegal parking ofvehicle at no parking zone or restricted zone
Thus, NetPosa China’s Products can be marketed to local town councils, national enforcement bodies etc. The collaboration with NetPosa presents an opportunity for our Group to tap into the potential growth in security system integration at township, district and state level as we can leverage on the NetPosa China’s Products that has a proven track record of implementation in the PRC. Company No. 1121987-0 [] 6. BUSINESS OVERVIEW (CONT’D) Notwithstanding NetPosa China may potentially carry out in Malaysia similar business activities as our Group’s ELV systems segment, our Board is of the view that NetPosa China’s Products are expected to complement our existing building management solutions and IT services offered by our Group so long as our Group remains as a business partner of l\JetPosa in Malaysia. This is because our Group is involved in the design, supply, build, testing and commissioning, as well as provision of project management, training, maintenance and aftersales service for structured cabling works, ELV systems and IT services whilst NetPosa China is involved in the development of application software that connects the security systems installed in multiple locations with monitoring and analytical capabilities (e.g. vehicle count, people count, crowd detection, illegal parking and etc.). Our Group’s expansion into video monitoring solutions will allow us to grow our revenue as we target to market our solutions and services to new customer segments namely local town councils, national enforcement bodies at township, district and state level. 6.18.2 Prospects Our Board is of the view that our Group will enjoy positive growth and favourable prospects in the long-term premised on the following:­(i) Our competitive strengths as set out in Section 6.17 of this Prospectus;
(ii) Our Group’s future plans and strategies as set out in Section 6.18.1 of this Prospectus;

(iii) The prospects and outlook of ELV and structured cabling industry, ICT industry and construction industry as follows:­(a) the long-term growth of the construction sector that is projected to grow from RM125.0 billion in 2016 to RM153.9 billion in 2019 at a CAGR of 7.2%;
(b) the positive outlook in the demand for electrical services and consequently ELV and structured cabling which is projectd to recover and grow from RM926.8 million in 2015 to RM1.1 billion in 2018, based on awarded project value, at a CAGR of 5.9%; and
(c) the prospects of the ICT industry under the Eleventh Malaysia Plan, 2016-2020, in which the ICT industry in Malaysia is expected to achieve a contribution of 18.2% or approximately RM324.9 billion to the nation’s GOP by 2020.

Further details of the prospects and outlook of ELV and structured cabling industry, ICT industry and construction industry are set out in the IMR and Section 7 of this Prospectus. [THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

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