CONTENTS

01

02

03

04

Corporate Profile

2

Corporate Structure

4

Corporate Information

5

5-Year Group Financial Hightlights

6

Share Performance7

Directors’s Profile

8

Key Senior Management’s Profile

13

Executive Chairman’s Statement

16

Management Discussion & Analysis

20

Audit And Risk Management
Committee Report

35

Statement on Risk Management andInternal Control

44

Corporate Governance Overview Statement

52

Sustainability Statement

76

Additional Compliance Information

117

Statement of Responsibility by Directors

120

Report and Financial Statement

121

List of Properties

194

Analysis of Shareholdings

195

NOTICE OF SEVENTEENTH ANNUAL
GENERAL MEETING198

ADMINISTRATIVE GUIDE FOR THE 17TH
ANNUAL GENERAL MEETING (“AGM”)

202

PROXY FORM

205

2

CORPORATE PROFILEABOUT

INNITYINNITY
GROUP
GROUP
Innity Corporation Berhad and its subsidiaries (“INNITY Group”)
is the leading online advertising company in Asia that provides
data-driven, interactive online marketing solutions andtechnologies for advertisers and publishers.
Established in 1999, Innity is a digital marketing and media
solutions company with a strong foothold in the APAC market.
Innity’s solutions provide a combination of creative advertising,content and influencer marketing, as well as community andcommerce technologies for brands, agencies, advertisers andpublishers. INNITY Group has presence in Malaysia, Singapore,
Indonesia, Vietnam, Philippines, Taiwan, Hong Kong, Cambodia
and Myanmar, with over 300 staff in total.
All in all, INNITY Group provides a diverse range of interactive
online marketing solutions which includes:•

Branding & Interactive Advertising•

Influencer & Key Opinion Consumer (KOC) Marketing•

Sponsored Content & Community Marketing•

E-commerce Performance Marketing

INNITY Group is committed to constantly exploring online
marketing opportunities for all our partners through ourversatile combination of online media proficiency, industry
clout, and the development of cutting-edge technology in abrand-safe and fraud-free environment.

74%

Innity China Co.,
LimitedProvision of technology based
online advertising solutions
and other related
internet services(Hong Kong)

100%

Innity Taiwan
LimitedProvision of technology based
online advertising solutions
and other related
internet services(Taiwan)Innity Myanmar
Co., Ltd.

Provision of technology based
online advertising solutions
and other related
internet services(Myanmar)

100%

Passionation(Hong Kong) Limited

Development of content
and influencer marketing(Hong Kong)

Provision of technology based
online advertising solutions
and other related
internet services(South Korea)

Innity Korea Co., Ltd*80%

Provision of WIFI services for
F&B outlet, shopping centre
and township(Malaysia)

Dynamic Outdoor
Media Sdn. Bhd.

100%

40%

Operate promotional andsales events information
website(Malaysia)

Offerstation
Sdn. Bhd.

60%

90%

Software production house(Vietnam)Innity Vietnam
Co., Ltd.

88%

Investment holding company(Hong Kong)

Innity Limited

100%

100%

Provision of technology based
online advertising solutions andother related internet services(Thailand)

Innity Digital Media(Thailand) Co., Ltd.

49%

Provision of technology based
online advertising solutions andother related internet services(Cambodia)

Innity Cambodia
Co., Ltd.

Provision of technology based online advertising solutions
and other related internet services(Vietnam)Innity Software & Advertising Co., Ltd.

Provision of technology based
online advertising solutions andother related internet services(Singapore)

Innity Singapore
Pte. Ltd.

28%

Developing computer andmobile software application(Malaysia)

72%

Dormant(China)100%
Innity Shanghai
Ltd.

1%

Appsploration
Sdn. Bhd.

* The Company has completed its dissolution with the attainment of business closure certificate on 10 April 2023.

80%

Provision of technology based
online advertising solutions andother related internet services(Malaysia)

65%

Innity Philippines, Inc.

DoMedia Asia Sdn. Bhd.

PT Media Innity

Provision of technology based
online advertising solutions andother related internet services(Indonesia)

Provision of technology based
online advertising solutions andother related internet services(Philippines)

95%

100%

Dormant(Malaysia)

451%

PassionCo Sdn. Bhd.

Innity Sdn. Bhd.

100%

Technology-based online
advertising solutions and otherrelated internet services(Malaysia)

100%

Investment Holding

Innity Corporation Berhad

CORPORATE STRUCTURE

5

CORPORATE INFORMATIONBOARD
BOARD OFOF
DIRECTORS
Phang Chee Leong
Looa Hong Tuan
Wong Kok Woh
Seah Kum Loong
Norliza Binti Rasool Khan
Fung Kam Foo
Cheong Chee Yun
Gregory Charles Poarch
Liong Wei Li
Michihiko Suganuma
Rieko Yoshikawa

AUDIT AND RISK MANAGEMENTCOMMITTEE
Cheong Chee Yun (Chairman)
Fung Kam Foo
Norliza Binti Rasool Khan

REMUNERATION COMMITTEE
Fung Kam Foo (Chairman)
Cheong Chee Yun
Norliza Binti Rasool KhanNOMINATION COMMITTEE
Fung Kam Foo (Chairman)
Cheong Chee Yun
Norliza Binti Rasool Khan

COMPANY SECRETARIES

Executive Chairman
Managing Director
Executive Director
Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Non-Independent Non-Executive Director
Alternate Director to Gregory Charles Poarch
Non-Independent Non-Executive Director
Alternate Director to Michihiko Suganuma

PRINCIPAL BANKERS

BUSINESS OFFICEHSBC Bank Berhad
OCBC Bank (Malaysia) Berhad
Malayan Banking Berhad
Public Bank Berhad
Bank Simpanan Nasional

Headquarters

SHARE REGISTRAR
Tricor Investor & Issuing House
Services Sdn Bhd
197101000970 (11324-H)

Unit 32-01, Level 32
Tower A, Vertical Business Suite
Avenue 3, Bangsar SouthNo. 8, Jalan Kerinchi
59200 Kuala Lumpur
Tel : 603-2783 9299
Fax : 603-2783 9222
Email : is.enquiry@mytricorglobal.com

Fong Seah Lih(MAICSA 7062297)/(SSM PC NO. 202008000973)

Tham Yin Tong

(MAICSA 7049718)/(SSM PC NO.202008001314)

AUDITORSBDO PLT(LLP0018825–LCA & AF 0206)

Level 8, BDO @ Menara CenTARa
360, Jalan Tuanku Abdul Rahman
50100 Kuala Lumpur

REGISTERED OFFICE
Tricor Corporate Services Sdn Bhd(200701021758 (779773-H))
Unit 30-01, Level 30
Tower A, Vertical Business Suite
Avenue 3, Bangsar SouthNo. 8, Jalan Kerinchi
59200 Kuala Lumpur
Tel : 603-2783 9191
Fax : 603-2783 9111
Email : info@my.tricorglobal.com

C501 & C502, Block C
Kelana Square
17, Jalan SS 7/26, Kelana Jaya
47301 Petaling Jaya
Selangor Darul Ehsan
Tel : 603-7880 5611
Fax : 603-7880 5622
Email : enquiry@innity.com

STOCK INFORMATION
Bursa Malaysia - ACE Market
Bursa Malaysia Code: 0147
Reuters Code: INNY.KL
Bloomberg Code : INNC:MKWEBSITE
www.innity.com

Innity Corporation Berhad

6

5-YEAR GROUP FINANCIAL HIGHLIGHTSFINANCIAL YEAR ENDED 31 DECEMBERAUDITED
2019

2020

2021

2022

2023

117,190103,032

119,971

119,216

114,012

Profit/(Loss) for the year (RM’000)

1,393-1,324

3,061

-630

-2,169Basic Earnings/(Loss) per ordinary share (sen)

0.90

-0.24

2.24

-0.06

-0.79

Revenue (RM’000)

REVENUE
RM’000117,190103,032

119,971

PROFIT/(LOSS) FOR THE YEAR
119,216

RM’000114,012120,000

4,000

100,000

3,000

1,393

-1,324

3,061

-630

-2,169

2019

2020

2021

2022

2023

2,000

80,0001,000

60,000040,000-1,00020,0000-2,000

2019

2020

2021

2022

-3,0002023

BASIC EARNINGS/(LOSS)PER ORDINARY SHARE
(sen)
3.00

0.9

-0.24

2.24

-0.06

-0.79

2019

2020

2021

2022

2023

2.50
2.00
1.50
1.00
0.50
0
-0.50
-1.00

Annual Report 2023

7

SHARE PERFORMANCE
up to 31 March 2024

SHARE PERFORMANCE
VolumePrice

3,000,000

0.60

2,250,000

0.45

1,500,000

0.30

750,000

0.15

0Jul-23Aug-23Sept-23

Oct-23

Nov-23

VolumeMARKET VALUE RATIOAt 31 March 2024
Market capitalisation
Price / Book value		: RM64.8 million: 1.88x

Dec-23Price

Jan-24Feb-24Mar-240Innity Corporation Berhad

8

DIRECTORS’S PROFILE

Phang Chee Leong
Executive Chairman

Malaysian, aged 53 (M)Phang Chee Leong was appointed as the Executive Chairman on 28 April 2008. He graduated witha Bachelor of Science Degree in Microelectronics from Campbell University, USA in 1995. He started his
career as a software engineer with PC Automation Sdn Bhd, a company involved in industrial automation.
Moving on, he joined Asia Connect Sdn Bhd as a senior software architect and technical manager where
he was involved in video streaming, testing and deployment of new technology. Subsequently in 1997,
he joined Consortio, a US company that implemented large-scale e-business solutions. In 1999, heco-founded Innity Sdn Bhd (“ISB”) and took on the position of Chief Executive Officer /Chief Technology
Officer. Through his 24 years of experience in the digital industry, Mr. Phang has been a visionary for thecompany, helping to develop Innity over the years into a leading provider of online interactive marketing
technologies. Mr. Phang’s continuous enthusiasm and zeal to look beyond the ordinary has been a key
factor in facilitating the company’s growth. He is deeply involved in directing product development and R&D
strategies in order to ensure that all future developments are integrated with cutting edge technology so as
to deliver value-added and optimised digital advertising solutions. He does not hold any other directorshipof public companies.
Mr. Phang attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Looa Hong TuanManaging Director

Malaysian, aged 53 (M)Looa Hong Tuan was appointed as the Managing Director on 28 April 2008. He graduated with a Bachelorof Science Degree in Microelectronics from Campbell University, USA in 1995. He started his career as the
Head of Sales Department in Jebsen & Jessen, a Danish multinational video conferencing, streamingand networking company and has since been involved in a number of projects across various industries,
such as e-learning, e-government and telemedicine. In 1999, he co-founded ISB and took on the position ofSales and Marketing Director and has helped the company to grow multifold over the years. He is responsible
for leading the sales and marketing team in pitching for new online advertising campaigns, establishing
relationships with various online publishers, and planning the Group’s branding efforts while contributing
extensively to the industry from the time of its inception. He currently heads the sales and marketing team.
He is also involved in the Group’s business development together with Phang Chee Leong. He does nothold any other directorship of public companies.
Mr. Looa attended all the six (6) Board Meetings of the Company of the Company held during the financial year
ended 31 December 2023.

Annual Report 2023

Director’s Profile (Cont’d)

9Wong Kok Woh
Executive Director

Malaysian, aged 53 (M)Wong Kok Woh was appointed as the Executive Director on 28 April 2008. He graduated with a Bachelorof Science Degree in Microelectronics from Campbell University, USA in 1995. Upon his graduation fromuniversity, he joined Nokia Malaysia as a wireless network-planner under the client-servicing department,
where he was in charge of handling and implementing numerous GSM phone network projects across the
Asia Pacific region. After a few internal promotions, he was transferred to Nokia China in 1997 as Jiang Xi’s
province network planning manager. Moving on, he left Nokia in 1999, co-founded ISB in December 1999
and took on the role as Client Services Director. His job scope entails the implementation and streamliningof daily workflow processes in order to ensure timely and efficient communications with clients to deliver
quality work of the highest standards. He plays a critical role in the account management for clients, due
to his vast experience in the campaign management of large scale projects. He also works closely with the
R&D team to ensure development efforts are consistent with prospective client requirements. He does nothold any other directorship of public companies.
Mr. Wong attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Seah Kum Loong
Executive Director

Malaysian, aged 52 (M)Seah Kum Loong was appointed as the Executive Director on 28 April 2008. He obtained an Advanced
Diploma in Advertising and Design from the Lim Kok Wing Institute of Creative Technology. Following his
graduation, he joined Asia Connect Sdn Bhd as a design executive from 1996 to 1998. In 1998, he moved on
to Mcities Sdn Bhd, a leading online music entertainment portal as their Creative Director. He later joined
Labtyd Sdn Bhd, a leading local advertising agency, as an Art Director, where he was part of a team indesigning and producing advertisements catering to specific customer needs. He has vast experience inmultiple aspects of the design process, encompassing traditional branding, brand identity and packaging
to conceptual interface development. In 1999, he co-founded ISB and was appointed as Creative Director.
He currently heads the design department and is in charge of leading and managing the various designers
to ensure consistent design output of the finest quality. He is also actively involved with the Group’s R&D
efforts due to his insights of the ad creation process, current online advertising design trends and thetechnologies used to create these ads. His job requires him to communicate and fully understand specificneeds of clients and then designing an advertisement that accurately represents the client’s business.
He does not hold any other directorship of public companies.
Mr. Seah attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Innity Corporation Berhad

10

Director’s Profile (Cont’d)Norliza Binti Rasool Khan
Independent Non-Executive Director
Audit and Risk Management Committee Member
Member of the Remuneration and Nominating Committees

Malaysian, aged 50 (F)Norliza Binti Rasool Khan was appointed as the Independent Non-Executive Director of Innity Corporation Berhad on
1 September 2022. She obtained her Bachelor of Laws degree from International Islamic University in 1998, diploma
in International Arbitration in 2018 and Executive Certificate in Islamic Banking and Finance in year 2021. She is a
Fellow of Chartered Institute of Arbitrators, Fellow of Malaysian Institute of Arbitrators, Fellow of Asian International
Arbitration Centre, Fellow of Asian Institute of Alternative Dispute Resolution, Member of Association of Women
Lawyers Malaysia, Co-Chair of Arbitration Committee of the Bar and Co-Deputy Chair of Women’s Rights Committee.
She was called to the Malaysia Bar in year 2000 and has been practicing as an Advocate & Solicitor of the High Courtof Malaya for 22 years. Having acquired experience in leading Malaysian firm, she embarked on her entrepreneurial
journey in her own firm Liza Khan Chambers. She has extensive experience in Corporate Governance and CapitalMarkets, personal data, gaming laws and sustainability laws as well as restructuring exercise and currently practises
primarily in corporate and commercial advisory and dispute resolution.
Norliza Binti Rasool Khan is also a Board Member of Voice of the Children Sdn Bhd, a non-profit NGO that advocatesfor childrens’ rights where she is involved in driving campaigns and raising funds resulting in significant changes inpolicies on child marriage and amendments to the Childs Act.
She currently holds the position of independent non-executive director for Innity Corporation Berhad, IFCA MSC
Berhad and Executive Director in Mimir Sdn Bhd. She had resigned from RedOne Holding Berhad on January 2024.
Norliza Binti Rasool Khan attended all the six (6) Board Meetings of the Company held during the financial year
ended 31 December 2023.

Fung Kam Foo
Independent Non-Executive Director
Chairman of Nomination and Remuneration Committee
Member of the Audit and Risk Management Committee

Malaysian, aged 61 (M)Fung Kam Foo was appointed as Independent Non-Executive Director to our Board on 1 August 2019. Mr. Fungcurrently holds the Independent non-executive director position in Innity Corporation Berhad, IFCA MSC Bhd andhe was appointed as Independent non-executive director of Yoong Onn Corporation Berhad on 31 May 2023. He wasresigned from Damansara Technology Sdn Bhd and Damansara Holdings Berhad effective from 31 May 2023.
He obtained Bachelor of Computer Science and Business Administration (Honours) from University of Guelph,
Ontaria, Canada in 1984. He is also a certified coach with the International Coaching Federation(ICF) Organisation,
he is actively involved in life & executive coaching and business mentorship through organisations such as Malaysian
Global Innovation & CreativIty Centre (MaGIC), MDEC, Cradle, Beyond4 and the 100 Soonicorns Programs.
Mr. Fung is a well-respected figure in the ICT industry, having worked in various sub-sectors of the industry formore than 30 years. Mr. Fung was the CEO of PIKOM (The National Tech Association of Malaysia) from October 2018
to September 2019. He was also with PIKOM as an Executive Director from 1994 to 2000 before embarking on anentrepreneurial journey to start his own company, permission.com, an email marketing company in the year 2000
and later on to become the CEO of txt123, a Maybank Associate company in the year 2001. He also worked in MNCs
including Digital Equipment Corp, the second largest global computer company in the 1990s.
Prior to his return to PIKOM in the year 2018, Mr. Fung held the position of Senior Manager for Enterprise Development
Division at the Malaysia Digital Economy Corporation (MDEC) and was the founding team member of MDEC Global
Acceleration and Innovation (GAIN) programme focusing on globalising selected high-growth Malaysian techcompanies.
He was instrumental in spearheading his team to turn around a then loss-making PIKOM in the 90s, into a profitable,
vibrant and respected industry association by the time he left in 2000.In recognition of his work at PIKOM, he wasselected as one of Malaysia’ top 50 local IT Personalities by the Computerworld Magazine.
Mr. Fung attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Annual Report 2023

Director’s Profile (Cont’d)

11

Cheong Chee Yun
Independent Non-Executive Director
Chairman of the Audit and Risk Management Committee
Member of Nomination Committee and Remuneration Committee

Malaysian, aged 63 (M)Cheong Chee Yun was appointed as Independent Non-Executive Director of Innity Corporation Berhad
on 27 September 2018. He is a Chartered Accountant member of the Malaysian Institute of Accountants,
a member of the Certified Practising Accountant Australia (CPA Australia) and also a member of the
Asian Institute of Chartered Bankers.
In the year 1985, he graduated with a Bachelor of Accounting (Hons) from Universiti Malaya. In the same
year, he started his career as an executive officer with RHB Bank Berhad (formerly known as D&C Bank).
He was involved in all branch operational aspects, corporate banking, trade financing and internationalbanking matters and last held a managerial position. Thereafter, he joined a PC assembly and monitor
manufacturer, KT Technology Sdn Bhd as Financial Controller in the year 1998. He then joined a softwaredevelopment and system integration company known as Object Solutions Sdn Bhd as director in theyear 1999. In the year 2001, he joined Saferay (M) Sdn Bhd, a manufacturer and exporter of architectural
mouldings as an operation director. In the year 2003, he was also appointed as a non-executive director in
CS Opto Semiconductors Sdn Bhd but had resigned in the year 2012. In the year 2006, he was appointed as
operational director in Eastmont Sdn Bhd, a building construction services company. He has since resigned
in November 2018.
In year the 2012, he joined Enco Holdings Sdn Bhd, a biomass thermal energy solutions provider as Headof Finance & Corporate Affairs and is now an executive director of the company. He is also a non-executive
director of Kencana Bio Energy Pte Ltd, Singapore,(now known as Enco Power Pte.Ltd., Singapore) abiomass power generation holding company. Moreover, he currently holds the post of independent
non-executive director for Innity Corporation Berhad and Executive Director for Samchem Holdings Berhad.
Mr. Cheong retired from ManagePay Systems Berhad in May 2023 and resigned from ETA World Group
Berhad in September 2023.
Mr. Cheong attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Gregory Charles Poarch
Non-Independent Non-Executive Director

American, aged 59 (M)Gregory Charles Poarch was appointed as the Non-Independent Non-Executive Director on 19 August 2009.
He graduated with a Bachelor degree in Accounting from Southwestern Oklahoma State University, USA in
1988. He commenced his career in 1988 as a Senior Auditor with Finley & Cook, a Certified Public Accounting
Firm. Moving on, he joined Occidental Petroleum Corporation as an Audit Supervisor. Subsequently in 1996,
he joined MEASAT Broadcast Network Systems Sdn. Bhd. as a Project Manager. He was promoted to Senior
Manager level in 1997. He joined the JobStreet.com group in 2000 and took on the position of Vice President,
Finance & Administration. With the listing of the JobStreet group in November 2004, he became the Chief
Financial Officer of JCBNext Berhad (formerly known as JobStreet Corporation Berhad). He does not holdany other directorship of public companies.
Mr. Poarch attended all the six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Innity Corporation Berhad

12

Director’s Profile (Cont’d)Liong Wei Li
Alternate Director to Gregory Charles Poarch

Malaysian, aged 40 (M)Liong Wei Li was appointed as the Alternate Director to Gregory Charles Poarch on 26 August 2019. He received
his Bachelor of Economics from University of Malaya in 2008 and a Masters of Philosophy in Economics from
University of Cambridge, United Kingdom in 2012. Mr. Liong also holds a Bachelor of Laws degree from Universityof London (external), United Kingdom and obtained the Certificate of Legal Practice in 2010. He commenced his
career as a research associate at Institute of China Studies and Faculty of Economics, University of Malaya. He joined
JcbNext Berhad as the Special Officer to the Chief Executive Officer in the year 2012. He was then promoted as
Chief Executive Officer in the year 2021. Mr. Liong is a holder of Chartered Financial Analyst (CFA), Chartered
Alternative Investment Analyst (CAIA Charter), and Certificate in Investment Performance Measurement (CIPM)
designations. He does not hold any other directorship of public companies.

Michihiko Suganuma
Non-Independent Non-Executive Director

Japanese, aged 45 (M)Michihiko Suganuma was appointed as Non-Independent Non-Executive Director on 1 April 2017.
He graduated with a Bachelor of Business from the University of Tsukuba in 2003. He started his career inInternational Marketing at Pioneer Corporation. In 2006 he joined D.A.Consortium(“DAC”), Japan’s leading
online media agency. He is now the Senior Executive Officer and the Head of the Global Business Groupat DAC. He is in charge of promoting DAC’s global businesses. He manages DAC’s overseas subsidiaries,
strategic partnerships with global companies, and cross-border business. He does not hold any otherdirectorship of public companies.
Mr. Michihiko attended six (6) Board Meetings of the Company held during the financial year ended
31 December 2023.

Rieko Yoshikawa
Alternate Director to Michihiko Suganuma

Japanese, aged 44 (F)Rieko Yoshikawa was appointed as the Alternate Director to Michihiko Suganuma on 24 August 2020. She received
her Bachelor of Policy Studies from Kwansei Gakuin University in 2002 and a Masters of Policy and Managementfrom Doshisha University in 2004. She started her career as Media Planner at D.A.Consortium Inc. from year 2004 to
2008, she then took up the role of Accounting Supervisor at D.A.Consortium Inc. from year 2008 to 2014. She is now
Senior Manager of Global Business Group at DAC. She does not hold any other directorship of public companies.

Notes:
Save as disclosed above:
1.
2.
3.
4.

None of the Directors have family relationships with any other Director and/or major shareholder of the Company.
None of the Directors have been convicted of any offences within the past five years and particulars of any public sanction or penalty imposed by therelevant regulatory bodies during the financial year.
None of the Directors have any conflict of interest with the company.
Gender of Directors are represented by (M) Male, (F) Female.

Annual Report 2023

KEY SENIOR MANAGEMENT’S PROFILE

13

The Key Senior Management in FY 2023 comprises Mr. Phang - Executive Chairman of Innity Corporation Berhadand Chief Executive Officer of Innity Sdn Bhd (“ISB”); Mr. Looa - Managing Director of Innity Corporation Berhadand Sales and Marketing Director of ISB; Mr. Wong - Executive Director of Innity Corporation Berhad and Client
Services Director of ISB; and Mr. Seah - Executive Director of Innity Corporation Berhad and Creative Director of ISB
are included under the Directors’ profiles on (page 8 to page 12) in the Annual Report 2023 and the following persons:

Chow Tat Kee
Corporate Strategy Director

Malaysian, aged 58 (M)Chow Tat Kee is the Director of Corporate Strategies of INNITY group of companies. He obtained a
Diploma in Financial Accounting from Kolej Damansara Utama in year 1990. He worked as an auditor with
Kassim Chan & Co (now known as Deloitte Malaysia) from 1991 to 1994, where he was involved in the auditingof companies in various industries such as trading and services, manufacturing, banking and finance, stockbroking, petroleum and property development. He left Kassim Chan & Co in 1994 as an Audit Senior to join Pilecon
Engineering Berhad as the Personal Assistant to the Operations Director. Subsequently, he joined Syarikat Binaan
Budi Sawmill Berhad (now known as SBBS Consortium Berhad) in year 1996 as an accountant. In 1997, he joined
Cheetah Holdings Berhad as the Finance and Administration Manager. In September 2005, he joined ISB as
the Financial Controller and in 2008 was further promoted to the position of Finance Director of INNITY group.
In 25 February 2013, he was re-designated as the Corporate Strategic Director. His current responsibilities in INNITY
group of companies include establishing the Group’s key thrusts and performance targets, oversight and effectingof the Group’s business wide strategies in order to support growth and sustainability objectives.

Edward Lum Chi Kwan
Head of Creative & Design

Malaysian, aged 45 (M)Edward is a dynamic creative leader with over two decades of experience in graphic design, web development,
and digital advertising. Graduating from the Central Academy of Arts in 2000. Edward started his career asa self-taught web designer for a prominent digital publisher. In 2001, he joined ISB as a creative designer
rising through the ranks to be the Lead Designer and later returning as Head of Creative & Design in 2009.
In this pivotal role, Edward spearheads the branding and creative development of Innity’s cutting-edge ad
solutions. Currently, Edward focuses on expanding Innity’s content studio, overseeing the development ofa skilled team proficient in photo and video production, event management, and community building.
His strategic mindset and passion for innovation drive forward-thinking campaigns, elevating brandexperiences across multiple platforms.

Innity Corporation Berhad

14

Key Senior Management’s Profile (Cont’d)

Yap Soon Kim
Chief Financial Officer

Malaysian, aged 50 (F)Yap Soon Kim graduated from Association of Chartered Certified Accountants (ACCA) and is a memberof Malaysia Institute of Accountants (MIA). She has more than 20 years of experience in the areas ofaccounting, taxation and finance. She had previously held senior positions in several private companies andPublic Listed companies. She started her career as audit associate and involved in auditing of trading, services,
construction and manufacturing sectors. Ms Yap held Accountant position in Kumpulan H&L Berhad from2004 to 2006, in charged of group reporting. She was subsequently promoted to be the Finance Manager
in charged of a subsidiary’s financial management and taxation. Prior joining Innity, she was attachedwith PECD Berhad, in charge of group reporting. She joined ISB in February 2009 as the Finance Manager
responsible for group reporting, In 2011, she was promoted as the Group Finance Manager, undertaking
financial management, group reporting, taxation, treasury and compliance roles. On 25 February 2013,
she was re-designated to be the Chief Financial Officer of INNITY Group.

Lee Pey Ling
Regional, Head of Strategic Partnership

Malaysian, age 46 (F)Lee Pey Ling is a senior management professional with over 20 years of extensive experience in thedigital advertising & ad technology industry. She holds a Bachelor’s Degree in IT, Interactive Multimedia.
On September 2022, she was appointed as the Regional, Head of Strategic Partnership of INNITY Group.
She has a proven track record of driving business growth and achieving sales targets through strategicplanning and effective execution. Her expertise lies in developing and implementing sales and marketingstrategies, managing campaign performance and customer expectation towards the optimal result, andbuilding high-performing teams. Prior to her current role, she held various senior management positions inmedia agency & technology companies, where she honed her skills in ad operations, business development,
product development & management, and team leadership. She is an excellent communicator,
which allow her to effectively collaborate with cross-functional teams and build strong partnerships withclients and stakeholders. She is also a strong advocate for diversity and inclusion in the workplace and isactively involved in mentoring and coaching aspiring professionals. Further, she is a results-driven leader
with a passion for innovation and excellence, coupled with her strategic mindset, technical expertise andpeople skills.

Annual Report 2023

Key Senior Management’s Profile (Cont’d)

15

Gilbert Chee Guang Yao
Strategy and Implementation Director

Malaysian, age 36 (M)Gilbert has always had a strong passion for digital media, which he pursued immediately after completing
his Bachelor’s Degree in Commerce from Curtin University of Technology. With more than a decade ofexperience in the digital marketing industry, Gilbert has been going places. He started his career at Sizmek
and has grown to become a Strategic Account Manager overseeing multiple Southeast Asian countries.
He then joined IPG Mediabrands to gain agency exposure, before progressing to Innity as an Associate
Account Director to lead and grow the sales team. In between, he has also garnered brand-side experienceduring his tenure in U Mobile. As his diverse career path stretches across different digital playgrounds,
the broad and comprehensive POV has given him an integrated strategic mindset in digital marketing.
He was appointed as Strategy and Implementation Director on November 2022. He is now responsible forstrategic planning for our key clients and solving their business challenges via integrated marketing.

Notes:
Save as disclosed above:
1.
2.
3.
4.
5.

None of the Key Senior Management have family relationships with any other Director and/or major shareholder of the Company.
None of the Key Senior Management have been convicted of any offences within the past five years and particulars of any public sanction or penalty
imposed by the relevant regulatory bodies during the financial year.
None of the Key Senior Management have any conflict of interest with the company.
Gender of Key Senior Management are represented by (M) Male, (F) Female.
None of the Key Senior Management hold any directorship of public companies.

Innity Corporation Berhad

16

EXECUTIVE CHAIRMAN’S STATEMENT

Dear Shareholders,
On behalf of the Board of Directors (“the Board”) of Innity Corporation Berhad (“INNITY” or “the Company”),
it gives me great pleasure to present the Annual Report and the Audited Financial Statements of the Groupand the Company for the financial year ended 31 December 2023 (“FY2023”).

ECONOMIC OVERVIEW
With the challenges presented by the Covid-19 pandemic almost over, the gradual recovery of the global
economy in 2023 took centre stage as global businesses, by and large, were starting to recover fromthe financial instability which have inevitably affected their growth performance during the pandemic
years. The International Monetary Fund (“IMF”) has forecasted global economic expansion to slow from
3.5% in 2022 to 3.0% in 2023. (Source: IMF’s World Economic Outlook, October 2023). The rise in central bankpolicy rates to fight inflation continues to weigh on economic activity. Despite core inflation has receded,
it remains tilted to the downside.
Although there has been considerable progress in reopening the domestic economy, increasingenergy and food prices continue to squeeze living standards more quickly than expected as inflation
continues to remain due to lingering supply of consumables and demand imbalances. In line with the
IMF’s forecast of lower global growth in 2023, the Malaysian economy remains on track to achieve
its gross domestic growth (“GDP”) of 4%, albeit at the lower end of its forecast range of 4% and 5%.
(Source: The Edge, 17 November 2023).
For the past 3 years since the lockdown, we have witnessed a significant upsurge in the adoption ofdigitilisation and e-commerce amongst local businesses and internet users. This encouraging growthtrend boosted online traffic and continually fueled the internet penetration rate in Malaysia. At the start of2023, 96.8% of the Malaysian population were using the internet (Source: DataReportal, 13 February 2023).
The imminent rollout of the 5G networks will inevitably quicken the pace of internet penetration in Malaysia
to reach 100% by 2025 (Source: Ministry of Digitalisation).

FY2023 PERFORMANCE
Despite the reopening of the domestic economy, INNITY faced a volatile and uncertain business landscapein 2023. For the FY2023, the Group recorded a loss after tax (“LAT”) of RM2.2 million (2022:RM0.63 million) on
total revenue of RM114.0 million (2022:119.2 million). After years of expansion, the digital growth momentum
has slowed going into FY2023. Increased competition and rising operational costs in the wake of declining
revenues in most of our overseas business units, contributed to the LAT in FY2023.
Nevertheless, it’s worth highlighting the market share in the Malaysia and Philippines business units have
improved markedly in FY2023 as indicated by their profitable results.
Given the Group’s unfavourable performance, the Board and senior Management have already commenced
an in-depth review of rationalising, restrategising and reconfiguring most of the overseas business units inlight of rising operational costs and declining revenues.
We continue to deliver new online advertising solutions and enhanced product features and capabilities.
Our financial condition remains in good shape with a strong balance sheet, healthy liquidity and debt
service coverage.
A detailed discussion of the Group’s financial performance in FY2023 is found under the Management
Discussion & Analysis section in the ensuing pages.

Annual Report 2023

Executive Chairman’s Statement (Cont’d)

17

BUSINESS OUTLOOKTechnology has been advancing so rapidly that the future is rather unpredictable. The past year,
2023 has been a rather transformative year with generative artificial intelligence (“GenAI”) and ChatGPT
becoming repeated “buzzwords” globally and also within the local tech ecosystem.
In the coming years, GenAI is predicted to revolutionise content creation and elevate immersive experiences
within the tech ecosystem. A deeper integration of AI technologies and metaverse platforms is anticipatedfor more dynamic and enriched virtual experiences.
Going into 2024, business confidence in Southeast Asia will significantly improve after several years of
struggling in the shadow of the Covid-19 pandemic. High interest rates to curb inflation and a subdued
consumer market were major factors afflicting both the global and regional economies.
Amid a challenging global environment plagued by geopolitical conflicts, higher inflation and elevatedinterest rates, Bank Negara Malaysia reported that the Malaysian economy is projected to expand between
4% and 5% in 2024 on account of favourable domestic market conditions, progress in investment projects,
improvement in the global tech cycle and the expected rise in inbound tourism activity.
Malaysia’s integration into fast-growing segments of global value chains, accommodative monetary policy,
digitalisation that had taken off in a major way as well as continued policy support would be key drivers of a
resilient and sustained economic rebound beyond 2024.
Despite the uncertain but optimistic outlook facing us in 2023, INNITY will actively focus on:a.

Taking progressive steps in the integration of Environmental, Social and Governance (“ESG”)
sustainable practices into Innity’s core strategies;b.

Determining the long-term success of ESG sustainable practices that have been embedded into
Innity’s group operations;c.

Engaging our ESG agenda to our entire value chain ecosystem of stakeholders i.e. advertisers,
publishers, suppliers and business partners;d.

Actively launching new digital marketing online advertising solutions using our vast experience andknowledge in R&D;

e.

Improving credit control and credit recovery procedures on long outstanding trade receivables which
are considered as high business risk;f.

Continuing to secure new business and/or customers to minimise our risk of dependency on a handfulof major customers;g.

Maintaining cordial and long-term customer relationships to ensure continuity of business;h.

Discovering viable business opportunities particularly in its overseas networks; andi.

Embracing initiatives such as data-driven IoT – which will lead to our versatile combination ofsustainable high-impact, media cutting-edge modeling and analytical solutions that are reasonably
priced and rapidly executed.

Our commitment to technology leadership in Research and Development is a major asset to the INNITY
Group. We continue to deliver new online advertising solutions and enhanced product features andcapabilities.
Moving forward, the paradigm shift to digitalisation is indeed a welcome opportunity for INNITY to reinforce
its role as a leading provider of online advertising solutions and other related internet-based services.
The Group retains the long-held virtues for which it has always been recognised: Innovative, lowly geared,
renowned R & D culture and a strong overseas presence.

Innity Corporation Berhad

18

Executive Chairman’s Statement (Cont’d)

CORPORATE GOVERNANCE
Innity is committed to conducting its businesses in full compliance with the legal and regulatory jurisdictions
under which it operates. The Group conducts its businesses professionally with the utmost integrity andcorporate governance.
In achieving a high level of corporate governance best practices to protect and enhance shareholder value,
the Board is fully supportive of the recommendations of the Malaysian Code on Corporate Governance(“MCCG 2021”) and, where appropriate, has taken the necessary steps to embrace and adopt the“Comprehend, Apply and Report” (“CARE”) approach as set out in the latest MCCG 2021 (“the Code”).
As we face uncertain economic times in the coming years, we have sought to identify and strengthen
governance weaknesses, refined our analysis of the online marketing space and further stepped up ourdevelopment and compliance to boost sustainable growth.
In line with the Code, a Corporate Governance Report (“CG Report”) and Corporate Governance Overview
Statement (“CG Overview Statement”) have been prepared and approved by the Board. They provide an
account of the Group’s application of the 3 Principles espoused in the Code. Where relevant, the Group’s
focus areas and future priorities are presented in relation to its Corporate Governance practices.
The Board adopts a zero-tolerance approach towards any form of corruption, bribery or other improper
payments in any of its business operations. In compliance with Section 17A of the Malaysian Anti-Corruption
Commission Act 2009 and in light of amendments to the ACE Market Listing Requirements relating toAnti-Corruption and Whistle-Blowing, the Corporate Governance Overview Statement outlines clear
guidelines and procedures of these policies with the aim of promoting better governance culture andethical behavior within Innity as well as provide greater accountability and transparency to investors.

CORPORATE SOCIAL RESPONSIBILITY (CSR)
Innity’s CSR commitment of building long-lasting, mutually beneficial relationships with our stakeholders
and the society at large within the spirit of appreciation, in 2023, are summarised as follows:-

Passionation Upcycled by Fuze Ecoteer
Innity influencer marketing platform namely Passionation teamed up with Upcycled by Fuze Ecoteer
to help drive awareness and educate Passionatives about plastic recycling and upcycling. A group of
Passionatives participated in the workshop by Upcycled where they learned how to create their own plant
pot using recycled bottle caps. After the workshop, the Key Opinion Leaders created and shared their videos
on Instagram to further help bring awareness to Upcycled’s mission and their many ongoing eco initiatives.

Passionation Ibupreneur Social Event
Passionation partnered with Ibupreneur for their grand launch. Ibupreneur is an accredited social enterpriseestablished in Malaysia which provides talented mothers with a singular, online marketplace to connect
their talents to the society. Their mission is to improve the lives of unemployed women in Malaysia throughentrepreneurial activities. Passionation was one of the sponsors for their launch event where we also invited
10 mother content creators to attend the event and share about Ibupreneur’s mission on their socials.
A statement detailing Innity’s actions in addressing environmental, social and governance (“ESG”) risks andopportunities, in 2023, is found under the Corporate Sustainability Statement in the ensuing pages.

Annual Report 2023

Executive Chairman’s Statement (Cont’d)

19

APPRECIATIONAs Executive Chairman of the Group, I would like to extend my sincere gratitude and appreciation to
my fellow Board members for the immense contribution, professional advice and commitment as we
continue to persevere and preserve shareholder value in these challenging times.
Under their valued guidance, I would like to express my sincere appreciation and thanks to the Management
and employees of the Group for their unfailing dedication and teamwork towards achieving the Group’s
objectives.
Lastly, on behalf of the Board, I would like to extend our heartfelt thanks and gratitude to our shareholders,customers, business partners and bankers for placing their confidence and continuing support to theBoard and Management.

PHANG CHEE LEONGEXECUTIVE CHAIRMAN

Innity Corporation Berhad

20

MANAGEMENT DISCUSSION & ANALYSISMANAGEMENT DISCUSSION & ANALYSISThe following Management Discussion & Analysis (MD&A) contains data derived from audited financial
statements and factual statements of INNITY and INNITY Group. It provides an overview of the Group’sbusiness and operations and how INNITY addresses risks, foreign exchange fluctuations, impact of inflationand other economic uncertainties for the financial period ended 31 December 2023 (FY2023).
The MD&A should be read in conjunction with the financial statements and the accompanying notes to thefinancial statements. The financial statements were audited and subsequently approved and authorised
for release by the Board of Directors.

1.

GROUP BUSINESS AND OPERATIONSINNITY is principally, an investment holding company. The core operations of the Group are carriedout by subsidiary companies which are involved in the provision of interactive online marketing
platforms and data-driven technologies for advertisers and publishers.
INNITY is a public limited liability company, incorporated and domiciled in Malaysia. The Company’s
shares are listed and traded on the ACE Market of Bursa Malaysia Securities Berhad.
Our Group is principally involved in providing technology-based online advertising solutions, to ourcustomers in the Asia Pacific region, using in-house developed technology platforms. Our role in the
online advertising process is to serve as a one-stop centre for advertisers and advertising agencies
in offering the 3 major functions of the online advertising process, i.e., Creative, Media and Research.
In essence, the Group assumes the role of the advertising agency, creative agency, media agency
and researcher.
As a leading architect of origination and innovation, our strategy is to develop and consistently deliver
relevant and functional technology-based online advertising solutions and other related internet
services to a global audience.
We belong to an industry that is constantly evolving to be more complex and sophisticated.
Frequent changes in consumer demand due to our industry’s vast client demographic and intensecompetition amongst the industry players inevitably leads to greater challenges. For the Groupto thrive to ensure its returns are not diminished, requires continuous Research & Development(“R&D”) expertise in creating innovative and sustainable advertising solutions to stay ahead of ourcompetitors.

INNITY Group Launched New Mobile Offerings In FY2023
INNITY cares most deeply about digital transformation in this vibrant era of rapidly growing market
players and internet users. Over the years, we have experienced commendable success andcurrently, we are just at the beginning of an incredible new wave of AI and Chat GPT which are going
to transform not only our work culture but every life and every country.
We have consistently introduced exciting product innovations as well as increasing engagement andcustomer base to consolidate our position as one of the leading technology-based online providers
in the Asia Pacific region. In FY2023, the range of these online products included the following: -i.

INNITY Rolled Out a New Shoppable Video Format
It added another video format to its Shoppable Video range entitled the Stories 300x600(Vertical Video + Product Feed Variation). With this format, brands can repurpose existingvertical stories and video content into a shoppable video format to expand reach andlifespan.

Annual Report 2023

Management Discussion & Analysis (Cont’d)

1.

21

GROUP BUSINESS AND OPERATIONS (CONT’D)INNITY Group Launched New Mobile Offerings In FY2023
ii.

INNITY Rolled Out New Ad Formats: In-Read Video Skinner & In-Read Video + Ad
INNITY added 2 new ad formats to its Video Format range i.e. In-Read Video Skinner & In-Read
Video Skinner +_Ad. This format comes with a skinner function ensuring that the video ad
only starts playing when it is at least 50% in-view providing more informative and engaging
branding experience.
With our renowned digital advertising technology in providing innovative one-stopadvertising solutions as well as a strong network of quality online publishers and customer
base, we believe that our relentless focus on technology and R&D will propel the Group toremain as a leading player in the online advertising market.
In FY2023, INNITY added 3 video advertising formats to its Video range in first quarter FY2023
and third quarter FY2023. The Stories 300x600 (Vertical Video + Product Feed Variation) and
In-Read Video Skinner & In-Read Video Skinner+Ad. Up-to-date advertising format in FY2023
amounting to 83 in total.

iii.

INNITY Achieves ISO 27001:2013 Certification: Reinforcing our Commitment toData Security Excellence
A wholly-owned subsidiary of INNITY, Innity Sdn Bhd has successfully achieved the ISO
27001:2013 certification. This certification is an internationally recognised standard that sets
forth a systematic and rigorous approach to establishing, implementing, maintaining andcontinually improving an Information Security Management System (‘ISMS”). The certification
validates INNITY’s ability to safeguard sensitive data and demonstrates our compliance withthe highest industry standards for information security.

iv.

INNITY Awarded TAG Brand Safety and Anti-Fraud Certification
INNITY has been awarded the TAG Certification Against Fraud Seal and Brand Safety Seal
from the Trustworthy Accountability Group (‘TAG’) once again.
TAG is an advertising initiative that aims to combat fraudulent and criminal activity whilestrengthening brand safety in the online advertising ecosystem. This certification recognises
the highest standards set by INNITY in upholding the digital advertising industry regulated
framework for Brand Safety.

a)Summary Financial Results of the Group Operations
Financial Year Ended
31 December

FY2023

FY2022%Change(RM’Million)

Revenue

114.0

119.2

(4%)

(Loss Before Tax) (“LBT”)/Profit Before Tax (“PBT”)(0.71)

0.48> (100%)Loss After Tax (“LAT”)(2.2)(0.63)> (100%)Innity Corporation Berhad

22

1.

Management Discussion & Analysis (Cont’d)

GROUP BUSINESS AND OPERATIONS (CONT’D)b)Compliance with Applicable Accounting Standards
The financial statements were prepared in accordance with the new and revised Malaysian
Financial Reporting Standards (“MFRSs”), IFRS Accounting Standards and the requirementsof Companies Act 2016 in Malaysia. Preparing consolidated financial statements requires
the Board/ARMC members to make a judgement call affecting the reported amounts ofassets, liabilities, revenue and expenses.
The accounting policies adopted by the Group are consistent with previous financial year
except for the effects of adoption of new MFRSs during the financial year. The new MFRSs
and amendments to MFRSs adopted during the financial year are disclosed on page 133 topage 193.

2.

FY2023 GROUP FINANCIAL RESULTS REVIEWa)Group Review of Revenue and Profitability
Revenue
The Group revenue declined by 4% or RM5.2 million to RM114.0 million in FY2023 comparedwith RM119.2 million in FY2022. Malaysia and Philippines business units registered a higher
revenue by 10% and 11% respectively in FY2023 whereas lower revenue was recorded in
Singapore, Vietnam, Hong Kong and China, Indonesia, Taiwan, Cambodia and Myanmar
business units as compared to the preceding year. Malaysia business unit remained as the
top revenue contributor in FY2023 followed by Hong Kong and Philippines business units.
Malaysia, Phillipines and Hong Kong/China business units contributed a combined revenueof RM86.4 million revenue, representing 75.8% of total group revenue.
Group Revenue (RM’Million)
Millions

119.2

1% Cambodia
2% Taiwan

114.0

120

13%
Philippines

119
118

4%

117

47%
Malaysia

116
115

2% Indonesia

114
113

10% Vietnam

112
111

15%
Hong Kong &China

8% Singapore
FY2022

FY2023

Profitability
In FY2023, the group gross profit increased 5.1% YoY to RM52.7 million, reflecting a higher
GP margin of 46% compared to 42% last year. The marginal increase in GP margin was
mainly due to the reversal in provision of platform fees arising from the discontinued Visa
card-linked program in the Malaysia business unit and reversal in the provision of customers’
rebate that were no longer required in Malaysia and Singapore business units.

Annual Report 2023

23

Management Discussion & Analysis (Cont’d)2.

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)a)Group Review of Revenue and Profitability (Cont’d)		Profitability (Cont’d)
The group incurred an LBT of RM0.71 million in FY2023 as compared to a PBT of
RM0.48 million in FY2022. Despite a higher gross profit recorded in FY2023, rising staff costs,
higher depreciation expenses attributed from the depreciation of the right of use asset inaccordance to the new lease term and share of losses from an associate company were thefactors which resulted in a higher LBT.
The income tax amount was mainly incurred by Malaysia and Philippines business units
in FY2023 and FY2022. These business units were subjected to local statutory income tax
rates resulting in the LAT of RM2.2 million in FY2023 and LAT of RM0.63 million in FY2022.
Group Gross
Profit Margin (In%)
42%

46%

Group PBT/LBT(RM’Million)
FY2022

FY20230.5

FY2022b)

FY2023-0.7Group LAT
(RM’Million)
FY2022

FY2023-0.6-2.2

Country-Level Performance
South-East Asia’s digital advertising spending has shown a rebound in the second halfof FY2023 after falling to lower levels in the first half FY2023 (Source: CNBC published on
1 Nov 2023). The group landed a LAT of RM5.0 million, albeit group performance significantly
improved in the second half of FY2023.
Malaysia and the Philippines business units contributed to a higher revenue growthand PBT recording a combined PBT of RM4.6 million in FY2023 as compared to PBT of
RM2.0 million in FY2022. PBT improved more than three fold in the Philippines business
unit mainly due to higher revenue achieved which resulted in a higher gross profit
margin coupled with lower operating expenses and gains on impairment reversal of tradereceivables from improvement in the collection of long outstanding debts. Higher revenue
and gross profit achieved in Malaysia business unit, Malaysia PBT improved from RM1.2
million to RM2.3 million, which was in tandem to the increase in revenue and gross profit.
The Hong Kong and Singapore business units recorded lower revenue in the first half of
FY2023, albeit improved revenue growth was recorded in second half FY2023. Both business
units registered LBT of RM0.51 million and RM0.92 million respectively. Rising staff costs
in both business units and higher depreciation charges (attributed from the depreciationof the right of use asset arising from the new lease arrangement in Hong Kong businessunit) were key causes of LBT in both business units. The recruitment of additional content
writers by the Hong Kong business unit to support revenue growth in the lifestyle content
platform developed in the current year has yet to be realised.

Innity Corporation Berhad

242.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)b)Country-Level Performance (Cont’d)Indonesia, Vietnam and Cambodia business units posted negative growths, recording 32%,
39% and 26% drop in revenue respectively. These business units faced stiff competition
from local competitors. These business units are currently in the midst of restructuring its
marketing strategy, upskilling and retraining their sales force to meet local customer needs.
LBT incurred in Indonesia and Cambodia business units were in tandem with the decline inrevenue. On the other hand, PBT of RM0.21 million was recorded in Vietnam business unit
mainly due to the lower operating costs incurred.
Taiwan business unit continued to post negative growth in revenue and LBT in FY2023
registering about 47% lower revenue than FY2022. The business unit is currently in theprocess of strategising its business direction.
In FY2023, the economic activities in Myanmar business unit remained uncertain amidst
macroeconomic headwinds. No business activities were recorded in the business unit.
A LBT of RM0.11 million was incurred in FY2023.
Business Unit Revenue Comparison FY2023 VS FY2022 (RM’Million)
+10%

-2%

-39%

-32%

-0.4%

+11%

-47%

-26%

-100%

-100%

Malaysia

Singapore

VietnamIndonesia

Hong Kong& China

Philippines

TaiwanCambodia

Korea

Myanmar

FY2022

FY2023Business Unit PBT/LBT Comparison FY2023 VS FY2022 (RM’000)
2023
Business Units in:
1.

Malaysia2.
3.

RM’0002022% Change

RM’000% Change

2,270

84

1,237

Hong Kong/China(506)>(100)

1,160

7

Indonesia(1,703)(35)(1,265)>(100)

4.

Philippines

2,323

>100

717

(47)

5.

Singapore

(922)

(64)

(561)

>(100)

6.

Taiwan(942)

19(1,158)>(100)

7.

Vietnam

209

(53)

445

>100

8.

South Korea

1

(97)

31

>100

9.

Cambodia(385)>(100)(5)>(100)

10.

Myanmar

(110)

(12)

(124)

14

Total PBT Before Inter-segment
elimination

235

477

Inter-segment elimination

(945)

-

Total (LBT)/PBT

(710)

477

(51)

Annual Report 2023

25

Management Discussion & Analysis (Cont’d)2.

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)
Further detailed breakdown of Group revenue is as follows:c)

Revenue by Business Segments
Financial Year Ended 31 December

FY2023%Change(RM’Million)

FY2023 vs FY2022

Advenue Premium

77.9

77.9

Nil

Advenue Performance

22.4

31.7

(29%)

Programmatic Advertising

5.6

4.2

33%

Content and Production

6.8

3.8

78.9%

Others1.3

1.6(18.8%)

114.0

119.2

Total

d)

FY2022Significant Financial Disclosures
Liquidity
The Group’s principal sources of liquidity have been cash from operations,short-term borrowings in the form of overdraft and receivable factoring, whereas
long-term borrowings are in the form of term loans. Group total assets increased by 3% toRM81.8 million from RM79.2 million in tandem with the increased in trade receivable.
On the other hand, group cash and cash equivalents (including deposits with licensedbank) declined to RM32.8 million from RM35.4 million a year ago due to the drop in financial
performance in certain business units, utilising existing funds to support its respective
operations.
In FY2024, the Group will look into reconfiguring its operational loss-making business
units particularly, in Indonesia, Cambodia and Taiwan. Amongst other business strategies
to be introduced, these business units will focus engaging in business partnerships which
will generate probable future economic benefits to the Group.
Total Assets (RM’Million)
79.2

81.0

Cash & Cash Equivalents (RM’Million)
35.4

2%

FY202232.8

8%FY2023

FY2022

FY2023

Innity Corporation Berhad

26

2.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)d)Significant Financial Disclosures (Cont’d)
Key Financial Ratios
FY2023

FY2022a.

Trade debtors’ collection period (days)

98

83

b.

Trade creditors’ payment period (days)

125

113

c.

Current ratio

1.80

1.96

Trade debtor aging period increased from 83 days to 98 days mainly due to higher revenue
achieved at the tail-end of 4Q2023, resulting in most debts either current or becoming
overdue within 30 days and trade creditor payment period rose to 125 days from 113 days.

Research & Development (“R&D”) Expenses
R&D is top priority as INNITY’s competitive edge relies on continuous R&D development for
new product innovation and improvements in display, mobile and programmatic advertising.
Even as INNITY invested in innovation and expanded geographically, the Group maintained
its commitment as a leading digital transformer in online advertising.
Total development expenditure incurred in FY2023 amounted to RM1.78 million(FY2022:RM1.60 million).
Expenditures incurred at the research phase, undertaken with the prospect of gaining newscientific or technical knowledge and understanding, are charged to profit or loss.
Expenditures incurred at the development phase are recognised as intangible assets
provided the following specific criteria are met:i.

It is technically feasible to complete the development of the intangible asset so that it
will be available for use or sale;ii.

Management intends to complete the intangible asset and use it or sell it;iii.

Ability to use or sell the intangible asset;iv.

It can be demonstrated how the intangible asset will generate probable future economic
benefits;v.

Adequate technical, financial and other resources to complete the development and touse or sell the intangible asset; andvi.

The expenditure attributable to the intangible asset during its development can bereliably measured.

The capitalised capital expenditures cover direct labor and cost of materials associated withproduct development and other related software used for product development activities.

Identified Risks Affecting Group Performance
We belong to an industry that is constantly evolving and highly competitive. Frequentchanges in technology and consumer demand require our expertise in creating innovativeand sustainable advertising solutions to stay ahead of our competitors, at home and abroad.

Annual Report 2023

Management Discussion & Analysis (Cont’d)

2.

27

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)e)

Significant Financial Disclosures (Cont’d)
Identified Risks Affecting Group Performance (Cont’d)
The identified risks affecting Group performance are:

Credit Risk
The Group’s credit risk primarily comprises trade and other receivables. Credit risks aremanaged through credit checks using the services of credit reporting and checking agencies
such as My Credit Info by Experian Information Services (Malaysia) Sdn. Bhd. Credit risks arealso minimised through selective interaction and association with creditworthy business
partners.
The Group continued to further strengthen credit control and recovery procedures bydeveloping more stringent procedures for new businesses as well as introducing a “watchlist” for closer monitoring of long outstanding trade receivables considered as risky exposures.

Foreign Currency Exchange Risk
The Group continues with its existing presence in nine (9) countries. As business transactions
are conducted in foreign currencies, our Group is exposed to foreign currency risk.
Foreign currency denominated assets and liabilities together with its expected cash flows
arising from sales and purchases give rise to foreign exchange exposures.
The majority of foreign currency transactions within the Group involved sales and purchasetransactions. Besides, the Group’s cash and cash equivalents were maintained in a foreign
currency account in all business units to meet current and future financial obligations.
There is a risk of significant fluctuation on MYR against multiple foreign currencies where
the business unit transacted may significantly affect the results of the Group.
These transactions provide a natural hedge against fluctuations in foreign currencies. Hence,
the Group does not adopt bank hedging or enter into forward exchange contracts in view ofthe minimum amount of hedging required.

Competition Risk
Our long-term success depends largely on how we continue to secure new businesses
and/or customers to minimise our risk of dependency on a handful of major customers.
Furthermore, maintaining cordial and long-term customer relationships are essential toensure continuity of business.
Notwithstanding our strengths, we continue to face competition from existing andprospective industry players. Despite the competition risk, we have developed long-termbusiness relationships with our publishers by entering into reseller partnerships to bring in avariety of quality inventories to strengthen our market share.

Interest Rate Risk
The Group’s primary interest rate risk relates to interest bearing debts. INNITY Group manages
its interest rate exposure by:i.

maintaining a prudent mix of fixed and floating rate borrowings;

ii.

conducting a periodic review on the debt’s portfolio; andiii.

taking into account the investment holding period and nature of the assets held.

Innity Corporation Berhad

28

2.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)e)

Factors Affecting Group’s Results
Apart from the key business risks and the mitigating measures being highlighted in theStatement on Risk Management and Internal Control on page 44 to page 51, our Group’s
financial performance will continue to be affected by several key factors set out below: -PeopleWe belong to a fast-paced industry that requires creative people with expertise in new
product design, R&D and sales personnel with the requisite digital product knowledge toservice our valued clients. People are our most important resource.
We value our employees by offering a competitive remuneration package, a compelling seriesof training and development programs and a conducive and safe working environment.

Political and Economic Stability
Political stability is important for the business environment as it affects consumer confidence
and hence, economic stability.
The ongoing political and economic instability in Myanmar, did not significantly affect theGroup’s results due to the relatively low internet usage in Myanmar.

Change in Rules and Regulations
Any change in the rules and regulations on foreign investment is likely to have an impact
on the Group’s performance. Our Management has always taken a proactive stance inaddressing these changes which may include working closely with foreign government
regulators to ensure compliance, enhancing internal risk practices in order to minimise therisk of non-compliance and improving our ability to adapt to such changes.

Technology
Technology is critical to realise growth potential. Technological developments in global
digital advertising, combined with its increasing commercial use and the rapidly growing
number of internet users worldwide have shaped the evolution of online advertising into
different advertising models and new market players.
Online technological advancements are often rapid and volatile. Thus, it is imperative thatonline advertising companies place high priority on research and development of new
products and services while maintaining awareness of new developments in the industry.

f)Industry Trends
Global advertising spend is expected to grow by 8.9% in 2024 with media inflation driving theincrease to reach US$740.3 billion. Digital continues to rise with 6.5% growth in 2024 to reach
US$442.6 billion and accounted for 68.8% of global ad spend with retail media leading theaccelerated growth. (Source: Statista.com, 6 December 2023).
eMarketer also reported that growth will spike in 2024 in worldwide digital ad spending,
traditional ad spending and total media ad spending in the immediate aftermath of2020’s pandemic-driven collapse. (Source: eMarketer Insider Intelligence 10 January 2024).
Emerging economies in Asia-Pacific and Latin America are expected to be the fastestgrowing ecommerce markets with standout growth in digital sales. Based on eMarketer’sreport, the Philippines, India, Indonesia, Malaysia and Thailand will set the global pace inecommerce sales growth.

Annual Report 2023

Management Discussion & Analysis (Cont’d)

2.

29

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)
f)

Industry Trends (Cont’d)According to Statista.com, the United States will remain the largest economy by ad spend
in 2024 with an estimated expenditure of around US$363 billion. This amount would be
more than the 10 other biggest markets combined i.e. China, Japan, the United Kingdom,
Germany, France, Indonesia, Canada, Australia, Brazil and India.
Most ad spending will be generated in the United States estimated at US$298.0 billion in
2024. As consumers widely prefer mobile devices such as smartphones and tablets (overlaptops or desktops), owing to convenience and portability, 70% of total ad spending will be
generated through mobile devices by 2028 while 81% of digital advertising revenue will be
generated through programmatic advertising by 2028.
In Malaysia, which is our principal market, online advertising has experienced tremendous
growth in line with higher rates of broadband penetration and the proliferation of corporatewebsites and online marketing campaigns firmly driving the growth of the market.
Ad spending in the local digital advertising space is projected to grow 9% to reach
MYR6.6 billion in 2023 (Source: Magna Global, 8 December 2022). Digital advertising willcontinue to grow by 13% being led by mobile devices which will increase by 213%. In terms offormat, spending is led by social media (20%), search advertising (16%) and video advertising(13%). With linear advertising facing an uncertain future post pandemic, digital ad spending
will continue to outperform linear advertising as consumers continue to shift to digital media
formats.
The projected growth of 9% in 2023 is considered to be commendable in comparison
against the APAC growth rate of 5.2% in 2022 and 6.1% projection in 2023. However, Magna
Global pointed out that these growth rates are uneven across different categories of media.
Forecasting further ahead over the next 5 years, digital is expected to take a dominantposition of 75% of advertising revenues.
Unlike highly developed digital ecosystems such as the United States, where the market’s
largest segment is Search Advertising (2023: projected market volume of US$296.7 billion
in 2023), the domestic market’s largest segment is Banner Advertising with a market
volume of US$429 million in 2022 (Source: Statista). By 2026, 47% of total ad spending will
be generated through mobile while 82% of digital advertising revenue will be generated
through programmatic advertising in Malaysia.
In Hong Kong, Singapore, Philippines and Indonesia, the presence of large multi-national
conglomerates has provided a springboard for further regional expansion and developmentof a robust regional network of clients and publishers.
In Myanmar and Cambodia, where the proportion of internet users to the general population
remain relatively low, government support for increasing internet usage among its populace
would witness significant growth for digitally-led content ads.
Our strategy of continuous R&D to outperform our peers in delivering relevant and functional
technology-based advertising solutions to our clients in spite of the competition and constantindustry shifts remains a primary goal in the years ahead.

Innity Corporation Berhad

30

2.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)g)

Future Industry Trends
Navigating customer challenges requires highly sought-after skills and a strategic
understanding of the varying levels of customer support. Hence, INNITY is introducing a
Customer Experience Platform offering a suite of dynamic and effective digital advertisingsolutions designed to transform the way brands connect with their audience. This initiativereflects the commitment to deliver continuous services to its customers. The group focus in
the coming year includes:i.

Branding and Interactive Advertising:
Entertain, inform and engage users with immersive experiences which will captivate
audiences from interactive videos on gamified ads that will leave a lasting impact on
consumers through interactivity;

ii. Influencer & Key Opinion Consumers (‘KOCs’) Marketing:
Leverages the credibility and reach of influencers to shape brand protection throughauthentic product reviews and compelling content creation.
As influence is a driving force in marketing, this solution focuses on the influential andpersuasive voices of Key Opinion Leaders (‘KOLs’) and Key Opinion Consumers (‘KOCs’).
The emphasis is on Daily Influencers concept and transforms customers into brandinfluencers. It also establishes a bridge of credibility between the brands and their target
audience through content creation. The result is an authentic, influential and relatableconnection that ensures the brand resonates effectively in today’s highly competitivemarket.
Product Sampling and Review is a marketing strategy in which a company offers
products or free samples to potential customers to create interest, share experiencesand generate sales. The Passionation on Consumer Sampling Package is designed
to connect with real consumers and get unique photos, video, authentic reviews,
testimonials to generate consistent mass social buzz. By combining influencer content
with frictionless shopping experience, social commerce drives conversions effectively
turning engagement into tangible revenue.

iii. Sponsored Content & Community Marketing:Curate branded content and create valuable product recommendations within online
communities to foster brand loyalty and advocacy.
Brands curate branded content that aligns with their target audience’s interests andpreferences. This strategic approach drives community-based always on marketingwith paid, earned and owned media. Within brand communities, users can discover andexplore products recommended by their peers.

iv. E-commerce Performance Marketing:
Provides interactive product discovery experiences and immersive shopping journeys
that drive conversions and enhance the overall e-commerce customer experience.
This solution is tailored to enhance the e-commerce customer experience. This solution
comes with Interactive shopping and Product Discovery experience with Quick-Buy
feature, enabling direct product purchases from various digital touchpoints such as ads,
articles, landing pages, blog posts or apps.

Annual Report 2023

Management Discussion & Analysis (Cont’d)2.

31

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)g)

Future Industry Trends (Cont’d)iv. E-commerce Performance Marketing: (Cont’d)
Embedding product discovery capabilities within the INNITY platform contributes to thedecentralisation of the marketplace. This approach empowers users to explore and findproducts seamlessly within the whole ecosystem, reducing dependency on centralised
marketplaces and enhancing the user-centric shopping experience.
Shoppable partnership solution provides Interactive Shoppable Content experiencesuch as Shoppable Ads & Articles, Shoppable Videos, Shoppable Deals & Promotions,
Shoppable Immersive AR/360 to be embedded on partner’s assets to reward partners’audiences such as retail media collaboration.

h)Sustainability of Operations
INNITY aspires to ensure sustainability for the long-term preservation and enhancementof the environmental, social and governance (“ESG”) factors in all of its business activities.
The integration of sustainability into all our domestic and overseas operations has given
the Board unprecedented attention and recognition that tackling sustainability issues
and putting them in practice is a continuous process with the Board having oversight
responsibility.
ESG factors, experienced in varying business practices, cultures and the environment of ourvarious overseas destinations, has enhanced and strengthened INNITY’s corporate value andreputation among the communities where it operates.
As an example, Hong Kong business unit has launched the Innity Premium AdHub, a new
self-serve advertising platform that allows brands and SME advertisers to run campaigns
more openly on their own terms. The new self-serve advertising platform enables businessesof all sizes to tap into Innity’s network of more than 250 quality publishers and reach over
12 million active devices in Hong Kong with precise targeting. With Innity Premium Ad Hub,advertisers can set campaign budgets, monitor results, and adjust content in real-time,
all from an easy-to-use online platform. The platform is backed by rich 1st, 2nd, and 3rdparty audience data, enabling the delivery of branding and performance campaigns in abrand-safe and transparent environment.

i)Forward-Looking Statements
Prospects and Outlook
While the extent of the economic impact beyond 2024 is riddled with uncertainty, the global
outlook remains challenging as the world economy faces multiple geopolitical conflicts,
including Russia’s invasion of Ukraine (since February 2022), US-China ongoing trade tension
as well as the recent tensions in Middle East. Beyond these issues, volatility in financial market,
persistent inflation in many countries added to the geopolitical tensions are clouding the
economic outlook and challenging efforts to achieve the Sustainable Development Goals.
Delving into the digital advertising sector, the global ad market seems to be staying on astable track entering its final stretch of FY2023, a turnaround from a rocky first half and apositive sign for FY2024. Still, marketers are likely to remain cautious in the months aheadamid the global headwinds. Cognizant of the global challenges, management has formulated
a list of Key Result Areas (‘KRAs’), ensuring lean and efficient operations.

Innity Corporation Berhad

32

2.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)i)

Forward-Looking Statements (Cont’d)
Prospects and Outlook (Cont’d)
In 2024, the list of overall goals or Key Result Areas (‘KRAs’) for INNITY that will ‘align’ with thebusiness direction for FY2024 are based on 4Ps (namely, Profit, People, Process, Product):+ Prospect–

Qualitative Goal (long-term): the Group’s vision or ultimate goal over a 3–5-year horizon;–

Quantitative Goal (short-term): the Group’s mission or FY2024 goal.

Profit:A financial goal focused on key issues such as staff costs, current maximum manpower
capacity, shorten receivables and payables gap to balance customer and supplier cash flow,
review tax incentive schemes;

People:Managing people effectively is vital to optimise productivity level and to add value of each
employee;

Process:
Every process must comply with Standard Operating Procedures (‘SOPs’), improve campaigndeliveries, campaign counts, win rate and marketing, improve inventory utilisation andinventory rate to maximise market demand.
Additionally, INNITY’s key KRAs in FY2024 will focus on: -i.

Branding and Interactive Advertising
Engaging users pre- and post-purchase with immersive ad experiences which will
captivate audiences from interactive videos that grab attention to gamified ads that will
leave a lasting impression;ii.

Influencer and Key Opinion Consumers (‘KOCs’) Marketing
Leverages the credibility and reach of influencers to shape brand perception throughauthentic product reviews and compelling content creation;iii.

Sponsored Content and Community Marketing
Curate branded content and create valuable product recommendations within online
communities to foster brand loyalty and advocacy;iv.

E-commerce Performance Marketing
Provides interactive product discovery experiences and immersive shopping journeys
that drive conversions and enhance the overall e-commerce customer experience.

Widespread adoption of the internet worldwide coupled with higher broadband speeds
and exceptional growth of technology-driven mobile devices and apps will catalyse a
new era where the internet becomes a mainstream entertainment and communications
medium with significantly ample room for marketers to manifest themselves in the mind of
consumers.

Annual Report 2023

Management Discussion & Analysis (Cont’d)

2.

33

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)i)

Forward-Looking Statements (Cont’d)
Prospects and Outlook (Cont’d)
The accelerated shift to digitalisation by brick-and-mortar businesses during the pandemic
has paved the speedy adoption of high impact rich media technology streaming video, voice
and graphics, resulting in a step-up of Malaysia’s economic complexity through the adoptionof smart technologies such as Industrial Revolution 4.0, 5G telecommunication networks,
Artificial Intelligence (AI), robotics, virtual reality, big data analytics, Internet of Things (IoT),
Blockchain and Cloud Computing. These smart technologies are driving new growth in a
multitude of applications across a broad spectrum of industries.
eMarketer Inc. reported that, barring any further unforeseen global economic debacles,
digital adex in the Southeast Asian economies of Malaysia, Indonesia, the Philippines,
Singapore, Thailand, Vietnam, Myanmar and Cambodia will witness double-digit gains
within the next 5 years. The rising demand for mobile, video and social media advertising will
drive this growth.
Given the surge in demand for online advertising in the years ahead, we are uniquely
positioned to adapt to the emerging paradigm shift by capitalising on our competitive R&D
advantage to deliver breakthrough ideas and product improvements in a diverse range ofinnovative engagement and advertising solutions.
Adopting this integrated approach, the Group has built up an impeccable reputation andtrack record since the business started in 1999. Over the period, the Group had achieved
several “firsts” such as: •1st in APAC to introduce Cost Per Engagement;•

1st in APAC to introduce retargeting;•

1st and only fully transparent ad serving system in Asia that is IAB certified;•

Asia Pacific winner under the “Priority Integration Sectors: ICT (Mid-Tier) category,
ASEAN Business Awards.

The Group had also engaged in several business alliances and partnerships with some of theleading global names in IT. These partnerships included the following: •Advertising Provider on Facebook Platform;•

Google certified Rich Media and Ad Network Vendor;•

Official Reseller partnership with Tik Tok in Malaysia and twenty-two (22) other countries
across Europe, US and Asia;•

Adhere to global ad and fraud standards set by Interactive Advertising Bureau (IAB),
Trustworthy Accountability Group (TAG) and Coalition for Better Ads (CBA);•

Compliant with the Viewable Impressions measurement standard; Inventory;•

Quality Guidelines Certified for Brand Safety; and•Official sales partner with Spotify in Hong Kong.

Innity Corporation Berhad

34

2.

Management Discussion & Analysis (Cont’d)

FY2023 GROUP FINANCIAL RESULTS REVIEW (CONT’D)i)

Forward-Looking Statements (Cont’d)
Prospects and Outlook (Cont’d)Given this established track record, the Group foresees the level of business to further
increase in the foreseeable future. This optimistic outlook is based on the following factors: -j)•

The exponential growth and expansion of the digital advertising market globally;•

Our renowned expertise in developing proprietary technology-based online advertisingsolutions;•

Our capability to manage an entire online advertising campaign as we are a one-stop
solutions provider;•

Strong and lasting business relationships with leading names in our strong clientele
network; and•Our established track record and impeccable reputation as Southeast Asia’s leading
online marketing technology.

Dividend Policy
In 2023, the Board did not recommend the payment of an interim or final dividend.
Our ability to declare a dividend or make other distributions in the future, is subject to us
having profits and excess funds which are not required to be retained to fund our Group’s
operations, other financial obligations or business plans.
Given that the Malaysian economy, in 2024, is widely expected to remain challenging,underpinned by a recovering economy amid the threat of widening geopolitical tensions in
Ukraine and the Middle East, continuing health precautions domestically to alleviate Covid-19
and its variants, the Board’s decision against declaring a dividend is deemed acceptable.

This statement is made at the Board of Directors’ Meeting held on 9 April 2024.

Annual Report 2023

AUDIT AND RISK MANAGEMENTCOMMITTEE REPORT35

The Board of Directors is pleased to present the Audit and Risk Management Committee Report (“ARMC”)
for the financial year ended 31 December 2023 pursuant to Paragraph 15.15 of the ACE Market Listing
Requirements (“AMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).

1.

COMPOSITION
Presently, the ARMC comprises three (3) members of the Board, all of whom are Independent
Non-Executive Directors.

2.

MEMBERSHIP
Members of the Board who are currently serving on the ARMC as at the date of the Annual Reportare: Chairman
Mr. Cheong Chee Yun (Independent Non-Executive Director)
Members
Mr. Fung Kam Foo (Independent Non-Executive Director)
Puan Norliza Binti Rasool Khan (Independent Non-Executive Director)
The ARMC had fulfilled paragraph 15.09(1), 15.09(2) and 15.10 of the ACE Market Listing Requirementsof Bursa Malaysia Securities Berhad and Malaysian Code of Corporate Governance 2021(“MCCG 2021”) Practice 9.1, 9.2, 9.3 9.4 and 9.5.

3.

•

The Chairman and all the ARMC member shall comprise solely Non-Executive and Independent
Directors.

•

One of the ARMC member must be a member of the Malaysian Institute of Accountants.

•

No alternate director is appointed as a member of the ARMC.

•

The Chairman of the ARMC is not the Chairman of the Board.

•

The ARMC has policies and procedures to assess the suitability, objectivity and independenceof the external auditor.

•

To in-placed a policy that required a former partner of the external audit firm to observe a
cooling-off period of at least three (3) years before being appointed as a member of the ARMC.

FREQUENCY OF MEETINGS
During the financial year ended 31 December 2023, the ARMC convened five (5) meetings.
The attendance of each ARMC member at these meetings during the financial year were as follows: -Director

Number of Meetings Attended

Mr. Cheong Chee Yun

5/5

Mr. Fung Kam Foo

5/5

Puan Norliza Binti Rasool Khan

5/5

Innity Corporation Berhad

36

3.

Audit and Risk Management Committee Report(Cont’d)

FREQUENCY OF MEETINGS (CONT’D)
The meetings were conducted with a quorum of two (2) members. The Company Secretary is the
Secretary of the ARMC and is responsible, together with the ARMC Chairman, to draw up an agenda,
which shall be circulated together with the relevant board papers to members of the ARMC at least
seven (7) days prior to each meeting. This will allow ARMC members having sufficient time to go
through the significant or material matters highlighted in the board papers.
The ARMC Chairman reports to the Board on any concern(s) raised by external auditors and internal
auditors. The minutes of each ARMC meeting are recorded and tabled at the next meeting andcirculated to the members of the Board for notation.
ARMC members are compelled to undertake continuous professional development to keep
themselves abreast of relevant developments in accounting and auditing standards, practices andrules to discharge its fiduciary duties and responsibilities.
In performing its duties and discharging its responsibilities, the ARMC is guided by its Terms ofReference available for reference at the Company’s website, www.innity.com.

4.

INTERNAL AUDIT FUNCTIONSThe ARMC is ably supported by an independent internal audit service provider namely Resolve IR
Sdn Bhd.(“RESOLVE”). Its main role is to conduct regular and systematic reviews of the operation,
procedures and internal control of the Company and its subsidiary so as to provide reasonableassurance that the internal control systems put in place continue to operate satisfactorily andeffectively.
During the ﬁnancial year ended 31 December 2023, the business activities, entity review andrisk assessment were carried out in accordance with the approved risk based internal audit plan
approved by the ARMC. During the year the internal audit review was conducted to assess theadequacy and effectiveness of Innity Philippines Inc, Innity Software and Advertising Co., Ltd
and Innity China Co Ltd. System of Internal control and its compliance to ICB group policies andprocedures over the following areas or process:

Credit Control and Collection•

Credit Assessment (New Customers)•

Collection•

Credit Monitoring•

Review Of Relevant Policies and Procedures•

Periodic Performance Reviews & Evaluation•

Review of Relevant Policies and Procedures

Human Resource Management•

Recruitment, Resignation & Employee Retention•

Payroll Processing•

Employee Benefits Disbursement•

Performance Appraisal System•

Training and Development•

Succession Planning•

Review of Relevant Policies and Procedures

Annual Report 2023

Audit and Risk Management Committee Report(Cont’d)4.

37

INTERNAL AUDIT FUNCTIONS (CONT’D)
Procurement•

Pre-Qualification & Selection of Vendors•

Procurement Planning•

Sourcing for Competitive Prices•

Purchase Processing to Receiving•

Payment Processing•

Vendor Performance Evaluation•

Procurement Authority Limits Review•

Operating Procedure Review

Product Development•

Product Planning•

Product Evaluation

Sales and Marketing•

Development of Sales Target•

Sales and Marketing Plan•

Pricing Development & Maintenance•Discounts Authorisation•

Invoicing & Revenue Recognition•

Customer Complaints Management•

Review of Relevant Policies and Procedures

Project Implementation and Management•

Ad Campaigns Planning•

Execution & Inspection•

Ad Campaigns Status and Cost Monitoring•

Ad Campaigns Performance Review and Evaluation•

Review Of Relevant Policies and Procedures

The Internal Audit review procedures were designed to understand, document, evaluate risks
and related controls and to identify areas for improvement in process efficiency and formulate
recommendations for improvement.
The audit review procedures applied principally consisted of process evaluations through interviews
with various personnel, observations and testing of controls on sampling basis and relevant
processes covering the period from 1 March 2022 to 28 February 2023 for Innity Philippines Inc.,
1 May 2022 to 30 April 2023 for Innity Software & Advertising Co., Ltd. and 1 September 2022 to 31
August 2023 for Innity China Co Ltd. respectively. The samples of the testing were selected basedon a judgmental basis to provide to Senior Management with due perspective of the audit scopebusiness processes. Only audit results with high priority require rectification and improvement will
be brought to the ARMC attention.

Innity Corporation Berhad

38

4.

Audit and Risk Management Committee Report(Cont’d)

INTERNAL AUDIT FUNCTIONS (CONT’D)
The results of the internal audit on entity processes carried out in Innity Philippines Inc, Innity
Software and Advertising Co., Ltd. and Innity China Co Ltd. were reviewed. The review included
the recommended corrective actions that were agreed by Senior Management, which were
subsequently presented to the ARMC Committee at ARMC meetings held on 24 May 2023,
23 August 2023 and 21 November 2023. Follow-up visits were conducted to ensure thatmanagement’s action plans in respect of the matters highlighted in the internal audit reports
have been adequately addressed and the results of the follow up reviews were also reported to the
ARMC. Based on the internal audit reviews conducted, none of the weaknesses noted have resulted
in any material losses, contingencies or uncertainties that would require separate disclosure in thisAnnual Report.
RESOLVE also assists ARMC to circular for signing, the Anti-Corruption Awareness & Conflict ofInterest declaration assessment form to key personnel responsible for the business processes
covered in the Internal audit of Innity Philippines Inc, Innity Software and Advertising Co., Ltd. andInnity China Co Ltd. for the financial year ended 31 December 2023 to facilitate the following:i.

Identifying potential conflict of interest that may exist;

ii.

Determining the existence of related party; andiii.

Ascertaining the related party transaction arising, if any.

In obtaining the above-mentioned conflict of interest declaration, the following were also
undertaken:i.

Determining the level of awareness in respect of the Group’s stance and initiatives in relation toanti-corruption and anti-bribery;ii.

Implementing conflict of interest as a corruption risk response for INNITY Group; andiii.

Obtaining the relevant personnel’s declaration on their knowledge of corruption and corruption
scheme or initiative that may exist in their areas of responsibilities.

Based on the declaration made by the relevant key personnels, none of these declarations
highlighted any potential or existing conflicts of interest in respect of their areas of responsibility.
In addition, none were aware of any related party or related party transaction arising.
The cost incurred for the internal audit function for the financial year under review was RM60,000.

5.

SUMMARY OF ACTIVITIES
During the year, the ARMC carried out the following activities in discharging its duties and functions
with respect to their responsibilities:

Financial Reporting
The ARMC reviewed the interim financial statements and annual financial statements required
under Bursa Listing Requirement for the recommendation to the Board for approval. The review
focused on changes in accounting policies and practices, major judgement and risk areas,significant adjustments resulting from the audit, the going concern assumption and compliancewith accounting standards, ACE Market Listing Requirement (“AMLR”) of Bursa Securities and otherlegal requirements.

Annual Report 2023

Audit and Risk Management Committee Report(Cont’d)5.

39

SUMMARY OF ACTIVITIES (CONT’D)
External Audit
External Auditors presented the audit strategy and audit plan to the ARMC on the audit of theyear-end financial statements. During the presentation, ARMC also sought confirmation fromthe External Auditors on their independence and resources made available to the external audit
functions. The ARMC had a meeting with the external auditor without the management presence,
where both parties were given the opportunity to raise any concern, offer opinions or provide
feedback on any problems encountered. This allows the External Auditor to be able to exert its
functions independently. There were no material matters raised that would have an impact on thefinancial disclosure or the internal control systems.
In addition, ARMC discussed and reviewed with the External Auditors the applicability of the new
accounting standards and new financial reporting regime issued by the Malaysia AccountingStandard Board.
The ARMC reviewed and discussed the External Auditors’ observation, key audit matters, the resultsof the annual audit findings and management response. There were no material matters andqualifications raised as to the audit report.
In assessing the independence of the External Auditors, the ARMC has reviewed the proposed feesand expenses, including fees for non-audit services and of the opinion that the independence of theExternal Auditors has not been compromised based on the independent confirmation provided by
the External Auditor.
The ARMC assessed and discussed the performance and effectiveness of the External Auditors,
including the independence, objectivity, professional conduct, requisite skills and expertise,including relevant industry experience as well as resources availability for the engagement.
The ARMC is satisfied with the performance of the External Auditor and recommended the audit
fee payable for the Board’s approval as well as recommending them to be reappointed at theforthcoming Annual General Meeting.

Internal Audit
ARMC had reviewed and approved the internal audit planning presented by Internal Auditor after
due review of their risk assessments and recommendations as well as feedback from Management
Risk Committee (MRC).
The ARMC also reviewed and discussed the internal audit report findings and recommendations forweaknesses found and ensured that there were action plans established for the Internal Auditor’s
corrective recommendations. The scope of the internal audit for the financial year has beensummarised at clause 4 of the internal audit report. Management was invited to attend the ARMC
meetings to provide clarification on specific issues raised in the internal audit reports. The ARMC
also monitored the implementation of action plans on the outstanding audit findings reported by
the Internal Auditor.
ARMC is tasked with identifying the principal risks, reviewing and assessing the effectivenessof the risk management framework and internal control systems based on the reports andrecommendations from the internal audit function and report to the Board on its findings.
The ARMC had also reviewed the effectiveness and efficiency of the internal control system in place
and the risk factors affecting the Company as well as the action plans taken by Management toresolve the issues to ensure adequacy of the internal control system.

Innity Corporation Berhad

Audit and Risk Management Committee Report(Cont’d)40

5.

SUMMARY OF ACTIVITIES (CONT’D)
Related Party Transactions
The ARMC reviewed the related party transactions entered into by the Group to ascertain any
conflict-of-interest situation that may arise within the Group while ensuring all transactions are atarms length’s basis. A circular in relation to proposed renewal of shareholders mandate for recurrent
related party transactions and quarterly RRPT registrar was reviewed by the ARMC and approvedby the Board.

Others
As for the Anti Bribery measure including the Whistle Blowing procedures, ARMC has noted that
there were no bribery incidents reported and neither were there any reports lodged under the
Whistle Blowing procedures.
The ARMC has also reviewed the Statement on Risk Management and Internal Control, Audit andRisk Management Committee Report, Corporate Governance Overview Statement, Corporate
Governance Report, Sustainability Statement in accordance with the AMLR of Bursa Securities,
for inclusion into the Annual Report.

6.

DUTIES & RESPONSIBILITIESThe duties and responsibilities of the ARMC shall include the following: -(A)

Matters Relating to External Audit: i.

To consider the appointment, re-appointment, decision to not-appoint, resignation
or removal of external auditors, the audit fee and any question of resignation or
dismissal;ii.

To review with the External Auditor, the audit scope and plan, including any changes
to the scope of the audit plan;iii.

To review major audit findings and Management’s response during the yearwith Management and External Auditors, including the status of previous audit
recommendations;iv.

To set policies and procedures to assess the suitability, objectivity and independenceof the external auditor;v.

To review the non-audit services provided by the external auditor and/or its network
firms to the Company for the financial year, including the nature of the non-audit
services, fee of the non-audit services, individually and in aggregate, relative to theexternal audit fees and safeguards deployed to eliminate or reduce the threat toobjectivity and independence in the conduct of the external audit resulting from the
non-audit services provided;vi.

To review and assess each year, the suitability, objectivity and independence of
external auditor; andvii. To review the assistance given by the Group’s officers to the auditors, and any
difficulties encountered in the course of the audit work, including any restrictions on
the scope of activities or access to required information.
The ARMC is satisfied that the external auditor substantially meets all the establishedcriteria and accordingly recommends to the Board to seek shareholders’ approval for its
reappointment to audit the financial statements for the next financial year.

Annual Report 2023

Audit and Risk Management Committee Report(Cont’d)6.

41

DUTIES & RESPONSIBILITIES (CONT’D)
The duties and responsibilities of the ARMC shall include the following: - (Cont’d)(A)

Matters Relating to External Audit: - (Cont’d)
The fees paid and payable to Messrs. BDO PLT, the external auditor were:
Group

(B)

(C)

Company

FY2023
RM’000

FY2022
RM’000

FY2023
RM’000

FY2022
RM’000

Audit fees

187.0

177.0

93.0

89.0

Non-audit fees

12.6

12.6

12.6

12.6

(Over)/under provision in prior year

-

-

-

-

Total

199.6

189.6

105.6

101.6

Matters Relating to Internal Audit function: i.

Responsible for the appointment and removal, scope of work, performance evaluation
and budget for internal audit function;ii.

To ensure the internal audit function is independent of the activities it audits and thehead of internal audit reports functionally to the directly and review their performanceon an annual basis. The head of internal audit shall be responsible for the regularreview and/or appraisal of the effectiveness of the risk management, internal control
and governance processes within the Company;iii.

Take cognizance of resignations of internal audit staff members (for in-house internal
audit function) or the internal audit service provider (for out-sourced internal audit)
and provide the resigning staff member or the internal audit service provider an
opportunity to submit his/her reasons for resigning;iv.

Review the adequacy of the internal audit scope and plan, including the internal audit
programme; functions, competency and resources of the internal audit function andthat it has the necessary authority, capabilities and capacities to carry out its work; andv.

Review the internal audit reports to ensure that appropriate and prompt remedialaction is taken by Management on major deficiencies in controls or procedures thatare identified.

Matters relating to Internal Control and Risk Management: i.

Review the risk profile of the Group (including risk registers) and the Risk Management
Team’s plans to mitigate business risks as identified from time to time;ii.

Review the adequacy and integrity, including effectiveness, of risk management
and internal control systems/framework, management information system, and theinternal auditors’ and/or external auditors’ evaluation of the said systems; andiii.

Direct and, where appropriate, supervise any special projects or investigationconsidered necessary, and review investigation reports on any major defalcations,frauds and thefts.

Innity Corporation Berhad

Audit and Risk Management Committee Report(Cont’d)42

6.

DUTIES & RESPONSIBILITIES (CONT’D)
The duties and responsibilities of the ARMC shall include the following: - (Cont’d)(D)Related Party Transaction: i.

(E)

Disclosure Obligations: i.

ii.

(F)

Review any related party transaction (including recurrent related party transactions)and conflict of interest situation that may arise within the Company or the Group,
including any transaction that may arise within the Company or the Group, including
any transaction, procedure or course of conduct that raises question of Management’s
integrity.

Review the quarterly results and the year end financial statements, prior to approvalby the Board, focusing particularly on:•

Changes in or implementation of major accounting policy changes;•

Significant matters highlighted including financial reporting issues, significant
judgement made by management, significant and unusual events ortransactions, and how these matters are addressed; and•Compliance with accounting standards and other legal requirements.

Prepare reports, at the end of each financial year to the Board which includes thefollowing:•

The composition of the Committee, including the name, designation (indicating
the chairman) and directorship of the members (indicating whether the
directors are independent or otherwise);•

The number of Committee meetings held during the financial year and detailsof attendance of each Committee member;•

A summary of the work of the Committee in the discharge of its functions andduties for that financial year and how it has met its responsibilities; and•A summary of the work of the internal audit function.

Others: i.

Review procedures in place to ensure that the Group in compliance with theCompany Act 2016 and AMLR of Bursa Securities and other legislative and reporting
requirements;ii.

To assist the Board to proactively consider sustainability issue when overseeing theplanning, performance and long-term strategies of the Company;iii.

To assist the Board to identify a designated person within management, to provide
dedicated focus to manage sustainability strategically, including the integration ofsustainability considerations in the operations of the company. Board together withthe management take responsibility for the governance, addressing material risks
and opportunities of sustainability in the Company; andiv.

Any activities, as authorised by the Board.

Annual Report 2023

Audit and Risk Management Committee Report(Cont’d)

7.

43

AUTHORITY AND RIGHTS OF THE ARMC: The ARMC shall in accordance with the procedures determined by the Board, at the expense of thecompany:8.

i.

has authority to investigate any activity within its Terms of Reference;ii.

has the resources which are required to perform its duties;iii.

has authority to obtain independent professional advice it considers necessary in the dischargeof its responsibilities;

iv.

shall have full and unlimited access to any information pertaining to the Group;v.

has direct communication channels with the Internal and External Auditors and with Senior
Management of the Group; andvi.

able to convene meetings with External Auditors, Internal Auditors or both excluding theattendance of executive members of the Group, whenever deemed necessary.

RETIREMENT & RESIGNATION OF ARMC MEMBER: (A)Retirement/Resignationi.

(B)

A member of the ARMC who wishes to retire or resign should provide sufficient
written notice to the Company so that a replacement may be appointed before
he/she leaves.

Vacancyi.

In the event of any vacancy in the ARMC, including the election of an independent
Chairman, the Company shall fill the vacancy within three (3) months.

Innity Corporation Berhad

44

STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROLINTRODUCTION
The Board of Directors (“the Board”) of Innity Corporation Berhad (“the Company”) is pleased topresent the Statement on Risk Management and Internal Control of the Company and its subsidiaries(“the Group”) which outlines the nature and scope of risk management and the internal control systemsof the Group for the financial year ended 31 December 2023 pursuant to Paragraph 15.26 (b) of the ACE
Market Listing Requirements (“AMLR”) of Bursa Malaysia Securities Berhad, Malaysian Code on Corporate
Governance 2021 (“MCCG 2021”) and the “Statement on Risk Management and Internal Control: Guidelines
for Directors of Listed Issuers” (“the Guidelines”).

BOARD’S RESPONSIBILITIESThe Board acknowledges its overall responsibility for the Group’s risk management and internal control
system to safeguard shareholders’ investment and the Group’s assets as well as reviewing its effectiveness,
adequacy and integrity on a regular basis. The Board has also received assurance from the Executive
Chairman (“EC”) and Chief Financial Officer (“CFO”) that the Group’s risk management and internal
control system are operating adequately and effectively, in all material aspects.
The system of internal control covers governance, risk management, financial, organisational, operationaland compliance controls. However, due to inherent limitations in any risk management and internal
control system, such system put into effect by Management is designed to manage rather than eliminate
risks that may impede the achievement of the Group’s corporate objectives.
The Board, through the Audit and Risk Management Committee (“ARMC” or the “Committee”),
implements the risk management and internal control practices within the Group. The management isrequired to apply good judgement in assessing the risks faced by the Group, assessing the Group’s ability
to reduce the incidence and impact of risks.

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM
Key elements of the Group’s risk management and internal control system that have been established tofacilitate the proper conduct of the Group’s businesses are described below:

1.

RISK MANAGEMENT SYSTEM
Risk Management is regarded by the Board as an integral part of the Group’s business and firmly
embedded in the Group’s culture, processes and structure of organisation. Senior Managementand Heads of Departments are delegated with the responsibility of managing identiﬁed risks.
The Board maintains an ongoing commitment to strengthen the Group’s risk management
framework. The Group has developed an Enterprise Risk Management Framework (“ERMF”),
which is guided by the ISO31000:2018 standards to facilitate the identiﬁcation and assessmentof the Group’s principal risks. The identified risks are incorporated into the risk register and areassessed to determine if the risk rating is Critical, High, Medium or Low. The rating process is guided
by a matrix of possibility of occurrence and the associated impacts, of which both financial andnon-financial consequences are duly considered. Thereafter, risk owners will drive theimplementation of additional risk mitigation measures towards achieving a residual risk that iswithin the acceptable tolerance.

Annual Report 2023

Statement on Risk Management and Internal
Control (Cont’d)45

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
1.

RISK MANAGEMENT SYSTEM (CONT’D)
The Group has established a monitoring and reporting process to continuously identify, assess
and manage the principal risks based on approved procedures for corporate disclosures.
These initiatives ensure that the Group has in place an ongoing process for identifying, evaluating,monitoring and managing the principal risks affecting the achievement of its business objectives
for the year under review and up to the date of approval of this statement.

Group Risk Management Committee (“GRMC”)
GRMC was established by the Board in assisting the Board to oversee the overall risk managementof the Group. The Committee serves as an oversight to the risk management process of the entire
Group. Roles of the Committee include identifying principal risks of the Group and ensuring theimplementation of appropriate system to mitigate and manage these risks. The GRMC sets, whereappropriate, objectives performance targets and policies to management the key risks faced by
the Group. GRMC consists of four executive directors and a Senior Management personnel.

Management Risk Committee (“MRC”)
The MRC which consists of Senior Management and key personnel of the companies in the Group,
was established to assist the Board Committee (i.e., GRMC). Representatives from the respective
divisions/business units within the Group have the overall responsibility to report key risks to theattention of the MRC. The MRC is supported by a Senior Manager as the Risk Management Officer
who coordinates the risk management activities of the Group.
Risk assessment is conducted minimum half-yearly by the respective working committees
comprising of Senior Management and relevant Heads of Departments. The process involves
identifying and reviewing new and existing key risks factors that affect the Group and thecorresponding mitigation action plan to address them; in accordance to the Group’s risk appetiteand tolerance defined in the ERMF. It includes update on the effectiveness of the mitigation action
implemented.
The risk assessment report is presented to the MRC; for review before presentation to the membersof GRMC and ultimately for endorsement by the Board.
These initiatives ensure that the Group has in place an ongoing process for identifying, evaluating,monitoring and managing the principal risks that affects the achievement of its business objectives
for the year under review and up to the date of approval of this statement.
Key business risks are identiﬁed and categorised to highlight the sources of risk, the severity of therisk and its effect on the Company or Group’s performance and the likelihood of its occurrence.
The risk assessment takes into account all aspects of the businesses and its internal control
framework, the control environment and control activities, information, communication andmonitoring procedures. Periodic reviews are conducted to identify new risks and a thoroughassessment of the risks previously identiﬁed remains relevant.

Innity Corporation BerhadStatement on Risk Management and Internal
Control (Cont’d)

46

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
1.

RISK MANAGEMENT SYSTEM (CONT’D)Management Risk Committee (“MRC”) (Cont’d)
As the Group is principally involved in the online advertising business, some of the identified risks
and measures to mitigate these risks are outlined as follows:i)Competition in the Online Advertising Market
The online advertising market is an open market, consisting of local and foreign online
advertising companies and local publishers whose deliverables are directly channeled tomedia buying agencies. The growing competition, especially from multinational online
advertising companies, will spur Innity’s increased focus on technological development andR&D. Our enviable track record to provide one-stop solutions, as well as our strong networkof online publishers and client base will enable the Group to remain as a major player in the
online advertising market.

ii)

Dependency on Major Clients
Traditionally the top 10 clients of the individual business units within the Group contributed
more than 50% of their respective revenue and the composition of their major clients varies
from year to year. This is largely due to the nature of the overall advertising industry as
media agencies are frequently switching varying advertisers accounts every year, andadvertiser budgets generally depend on new product launches, rebranding exercises, andother marketing activities, resulting in advertising budgets of differing sizes every year.
Nevertheless, no assurance can be given that the loss of any of our Group’s major clients
especially agencies will not materially and adversely affect our Group’s business, operating
results and financial position. The Group will continue to enlarge its client’s base by acquiring
more small and medium-sized direct clients to improve overall client segmentation of theGroup and to mitigate the risk of over-reliance on the few major clients.

iii)

Technologies Advancements and Developments
Our Group operates in an environment, which is subject to inherent risks due to changes
in technology and client requirements, introduction of new solutions and enhancement ofexisting solutions. Our Group’s competitive edge depends substantially upon our ability tokeep pace with technological changes to address our clients’ needs.
The objective of our Group’s R&D team is to maintain our Group’s competitive edge over ourcompetitors by:a.

continuously enhancing existing technology and applications as part of continuous
improvement efforts; andb.

developing new technology for new solutions to meet greater variety of clientdemand.

Nevertheless, no assurance can be given that our Group’s R&D programmes will be
successful in producing commercially viable new solutions or enhance existing solutions,which are within budget and on timely basis in accordance with market requirements andexpectations.
Our Group aims to develop more advanced technology and solutions to provide greater
benefits to clients in terms of functionality as well as usability. Our Group is committed to
produce new and innovative technologies coupled with improved interactivity that provides
a richer media experience to advertisers and clients.

Annual Report 2023

Statement on Risk Management and Internal
Control (Cont’d)

47

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
1.

RISK MANAGEMENT SYSTEM (CONT’D)Management Risk Committee (“MRC”) (Cont’d)
As the Group is principally involved in the online advertising business, some of the identified risks
and measures to mitigate these risks are outlined as follows: (Cont’d)iv)

Foreign Exchange Fluctuations
Because of our overseas presence, it is in the normal course of business that mosttransactions would be denominated in foreign currencies. These transactions include
purchase of online publishers’ sites, sales to advertisers and/or media agencies andinter-group billings. As business volume increases, the Group is exposed to larger risk offoreign exchange fluctuations.
Our Group has a natural hedge system wherein all foreign subsidiary companies, while
maintaining a local currency bank account, are required to open an USD Bank Accountto facilitate payments and collections in USD. Also, the lion’s share of transactions isdenominated in USD, hence minimising the effect of foreign exchange risk.

v)

Security and System Disruption
Operating in a high technology environment, the Group is susceptible to various security
risks such as computer viruses, system disruptions, hacking and fraud. There is then a strong
possibility of a complete system shutdown.
Our Advenue Platform technology resides on computer systems housed at various locations.
The data back-up and recovery systems are critical to our continuing and uninterrupted
performance.

vi)

Larger Funding for Growing Business Volume Especially in the
Influencer Marketing Business
There is inevitably a mismatch in collection from clients and payments to publishers. Withrising business volumes, the Group is exposed to the risk of depleting internal funds.
The Group has implemented stricter credit control procedures coupled with prompt
payment incentives to clients with the objective of expediting collections. Occasionally,banking facilities have been utilised to meet any funding requirements in working capital.
The power to influence consumer purchasing habits has been shifting from traditional
public media to individual brand ambassadors. These ambassadors are defined as key
opinion leaders (KOLs) and they are powerful influencers on social media platforms. These
individuals or groups with large followings in relevant niches have a huge influence onpurchase demands and have always been on the rise to be recruited on behalf of a brand formarketing and promotional purposes.
The Group’s businesses are dynamically adapting to the above change and KOL campaigns
have rapidly become the major contributor to the Group’s revenue. This business trend
however has developed a separate issue, i.e., higher working capital requirements to fulfill
media buys from KOL as majority of the Premium KOLs and Macro KOLs would insist
advance payment prior to commencement of campaigns, whereas the advertisers arenormally allowed a credit term of 60 to 90 days.

Innity Corporation Berhad

48

Statement on Risk Management and Internal
Control (Cont’d)

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
1.

RISK MANAGEMENT SYSTEM (CONT’D)Management Risk Committee (“MRC”) (Cont’d)
As the Group is principally involved in the online advertising business, some of the identified risks
and measures to mitigate these risks are outlined as follows: (Cont’d)vi)Larger Funding for Growing Business Volume (Cont’d)
We have initiated to build an online business platform for KOL, aimed at empowering both
Brands and Influencers to utilise the best broadcasting channels of today to reach eachother. Potential but less prominent KOLs would find this platform useful for their presence
and specialties to be radiated and these KOLs are less insistent on upfront payment prior tocommencement of campaigns and would normally allow credit terms ranging from 30 to
45 days. In the meantime, we hope to work out a better payment arrangement with more
prominent KOLs when our online business platform has become a reputable and trusted
brand name in the arena.

vii)

The Group Might Be Exposed to Possible Transfer Pricing Issues
The rising volume and variety of intercompany regional transactions and transfer pricing
regulations, accompanied by increased enforcement activities worldwide have madetransfer pricing a leading risk management issue for the Group businesses. Hence a Full
Transfer Pricing Documentation for addressing the risks that might arise within the Groupis immensely required.
We have consulted professional tax consultants and sought their services to ensure ourcompliance with the Transfer Pricing documentation requirements under the Malaysiantransfer pricing regulatory framework, as governed by Section 140A of the Malaysian Income
Tax Act 1967, the Income Tax (Transfer Pricing) Rules 2012 and Malaysian Transfer Pricing
Guidelines 2012.

viii)

Cybersecurity Risk
With the increasing cost and volume of data breaches, cyber security is quickly moving frombeing considered by business leaders as a purely technical issue to a larger business risk.
We are principally operating our businesses in a highly technology-driven environment, andthis has significantly increased Innity’s exposure to cyberattacks, which may include theft ofconfidential clients’ data intellectual property, information about corporate strategies etc.
We have obtained ISO27001 certification in 2023 to formalise and improve businessprocesses around information security, privacy and securing its information assets. ISO27001
is internationally recognised as providing a best-practice specification for an Information
Security Management System (“ISMS”)). By achieving the certification, it displays theorganisation’s commitment to robust security, ongoing risk management and protecting
sensitive information, a reputational boon to clients, vendors and partners.
Whilst the Board maintains ultimate control over risk and internal control matters, thedevelopment and implementation of the ERMF and internal control systems rests with
the Management. The responsibility of managing risks at each department lies with therespective Heads of Department. Periodic management meetings between the Heads ofDepartment and Senior Management are held to highlight key risks and ways of managing
the signiﬁcant risks identiﬁed. Signiﬁcant risks affecting the Group’s strategic and businessplans are escalated to the Board at their scheduled meetings.

Annual Report 2023

Statement on Risk Management and Internal
Control (Cont’d)49

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
1.

RISK MANAGEMENT SYSTEM (CONT’D)
Credit Committee (“CC”)
The CC which consists of Senior Management and key personnel of the companies in the Group,
was established in 2020 to assist the Board in managing the credit risks of the entire Group.
The objective of the CC is to manage and improve all credit arrangements, by means of supervisionon the company’s credit control policies and activities which comprise the identification,assessment, monitoring and management of the company’s credit risk exposure while aligning to
the company’s risk appetite.
The functions and responsibilities of the Committee shall include the following:a.

determination of credit risk appetite of the Group;b.

periodic review and update of credit control policy and procedure;c.

credit assessment of new customer as well as the credit terms and limits to be provided tothe credit customer;d.

periodic review on the procedures and criteria of the release of credit hold;e.

periodic review on credit risk exposure;f.

periodic assess expected credit loss, basis in arriving at the expected credit loss, provision of
doubtful debt and bad debt; andg.

periodic evaluation on credit customer.

Meeting of the Committee shall be held on an ad-hoc basis or when required in order to exercise
the powers or perform the functions or responsibilities of the Committee. Committee meetings
shall be convened whenever doubt arises or in any circumstances which indicate that a meetingof the Committee may well be required.

2.

INTERNAL CONTROL SYSTEM•

Organisation Structure & Authorisation Procedures
The Group maintains a formal organisational structure that includes clear delegation of
responsibilities and accountability. It sets out the roles and responsibilities, appropriate
authority limits, review and approval procedures to enhance the internal control systemof the Group’s various business units. Key Management personnel are delegated with the
responsibility to manage risks at their respective areas of responsibilities.

•

Business Strategic Plan and Annual Budget
Yearly Business Plan and Annual Budget are prepared by management and tabled to
the Board for approval. The business plan will be subjected to revision based on changing
market conditions affecting the achievement of the Group’s business objectives.
Periodic monitoring is carried out to measure actual performances against budget and to
identify signiﬁcant variances and devise remedial action plans.

Innity Corporation Berhad

50Statement on Risk Management and Internal
Control (Cont’d)

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
2.

INTERNAL CONTROL SYSTEM (CONT’D)•Group Policies and Procedures
Documented policies and procedures are in place and are regularly reviewed and updated
to ensure that it maintains its effectiveness and continues to support the Group’s businessactivities at all times as the Group continues to grow.

•

Information and Communication
Information critical to the achievement of the Group’s business objectives are communicatedthrough established reporting lines across the Group. This is to ensure that mattersthat require the Board’s and Senior Management’s attention are highlighted for review,
deliberation and decision on a timely basis.

•

Monitoring and Review
Scheduled operational and management meetings are held to discuss and review thebusiness plans, budgets, ﬁnancial and operational performances of the Group. Monthly
management accounts containing key ﬁnancial results, operational performance andcomparison of actual performance against budgets are presented to the management
team for monitoring and review. The quarterly ﬁnancial statements are presented to theBoard, via the ARMC, for their review, consideration and approval. The Board also plays anactive role in discussing and reviewing the business plans, strategies, performance and risks
faced by the Group.

•

Human Resource Policies and Procedures
The employees’ handbook containing the Company’s scheme of service and code ofbusiness conduct is accessible to all employees in the intranet. All employees are required
to acknowledge the acceptance of the policies.

•

Training and Development Programmes
Training and development programmes are established to ensure that staff are constantly
kept up-to-date with the constant technological changing environment in order to becompetent in the industry in line with achieving the Group’s business objectives.

3.

INTERNAL AUDIT FUNCTION
The Group’s internal audit function is outsourced to an independent professional ﬁrm. The internal
audit function, which provides feedback regarding the adequacy and effectiveness of the Group’ssystem of internal control, is under the purview of the ARMC.
During the financial year ended 31 December 2023, internal audits were carried out in accordancewith the approved internal audit plan and the processes reviewed were disclosed in Audit and Risk
Committee Report.

Annual Report 2023

Statement on Risk Management and Internal
Control (Cont’d)

51

KEY FEATURES OF THE GROUP’S RISK MANAGEMENT AND INTERNALCONTROL SYSTEM (CONT’D)
3.

INTERNAL AUDIT FUNCTION (CONT’D)
During the financial year, the entities and business processes reviewed were as follows:
EntityBusiness Processes

Innity Phillippines Inc.

Sales & Marketing, Credit Control and Collection, Human Resource
Management

Innity Vietnam Co. Ltd

Product Development, Procurement, Human Resource Management

Innity China Co., Limited

Sales & Marketing, Credit Control and Collection, Human Resource
Management

Based on the internal audit reviews conducted, none of the weaknesses noted have resulted inany material losses, contingencies or uncertainties that would require separate disclosure in thisAnnual Report.

4.

ASSURANCE FROM MANAGEMENT
The Board has received assurance from the Management that the Group’s risk management andinternal control system were operating adequately and effectively in all material aspects, basedon the risk management and internal control system of the Group, for the financial year ended
31 December 2023, and up to the date of this Statement.

5.

REVIEW OF THIS STATEMENT
The external auditors have reviewed the Statement on Risk Management and Internal Control.
This review was performed in accordance with Malaysian Approved Standard on Assurance
Engagement, ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews ofHistorical Financial Information and Audit and Assurance Practice Guide (“AAPG”) 3 Guidance for
Auditors on Engagements to Report on the Statement on Risk Management and Internal Control
included in the Annual Report. AAPG 3 does not require the external auditors to form an opinion on
the adequacy and effectiveness of the risk management and internal control system of the Group.
Based on the review, the external auditors have reported to the Board that nothing has cometo their attention that causes them to believe that the statement is not prepared, in all material
respects, in accordance with the disclosures required by paragraphs 41 and 42 of the Statementon Risk Management and Internal Control: Guidelines for Directors of Listed Issuers to be set out,
nor was factually inaccurate.

CONCLUSION
The Board is of the view that the Group’s system of internal control and risk management is adequate
to safeguard shareholders’ investments and the Group’s assets. However, the Board is also cognisant of
the fact that the Group’s system of internal control and risk management practices must continuously
evolve to meet the changing and challenging business environment. Therefore, the Board will, whennecessary, put in place appropriate action plans to further enhance the system of internal control andrisk management framework. The Group’s risk management process and internal control system do not
apply to associates where the Group does not have full management control. The Group’s interest in theassociates is served through representation on the Board of Directors.

This statement was approved by the Board of Directors on 9 April 2024.

Innity Corporation Berhad

CORPORATE GOVERNANCEOVERVIEW STATEMENT52

CORPORATE GOVERNANCE OVERVIEW STATEMENT (“STATEMENT”)
In ensuring continuous and sustainable growth, the Board believes in the adoption of a high standard ofcorporate governance that values transparency, timely disclosures and constructive communication to
all its stakeholders.
The Board is pleased to present the CG Overview Statement to provide shareholders and investors with an
overview of the corporate governance (“CG”) principles and best practices of the Company as laid out inthe Malaysian Code on Corporate Governance 2021 (“MCCG 2021” or “the Code”) throughout the financial
year under review. This statement should be read together with the Corporate Governance Report(“CG Report”) and with other statements in the Annual Report (e.g., Statement of Risk Management andInternal Control and Audit and Risk Management Committee Report) which are available on the INNITY’s
website at www.innity.com. The CG Report provides a detailed application of the CG practices as set out
in the MCCG 2021.

A.

APPLICATION OF MCCG 2021 PRACTICESThe Code’s Best PracticeApplication

Explanation For Departure And
Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS
I. Board Responsibilities
1.1

The Board should set the company’s
strategic aims, ensure that thenecessary resources are in place for thecompany to meet its objectives andreview management performance.
The Board should set the company’svalues and standards, and ensure thatits obligations to its shareholders andother stakeholders are understood andmet.

AppliedNot applicable

A Chairman of the Board who is
responsible for instilling good corporate
governance practices, leadership andeffectiveness of the Board is appointed.

AppliedNot applicable

1.3

The positions of Chairman and CEO are
held by different individuals.

AppliedNot applicable

1.4

The Chairman of the board should
not be a member of the Audit
Committee, Nomination Committee orRemuneration Committee.

AppliedNot applicable

The Board is supported by a suitably
qualified and competent Company
Secretary to provide sound governanceadvice, ensure adherence to rules andprocedures and advocate adoption of
corporate governance best practices.

AppliedNot applicable

1.2

1.5

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)A.

53

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best PracticeApplication

Explanation For Departure
And Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS (CONT’D)
I. Board Responsibilities (Cont’d)
1.6

2.1

3.1

Directors receive meeting materials which arecomplete and accurate within a reasonable
period prior to the meeting. Upon conclusionof the meeting, the minutes are circulated in atimely manner.

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

The Board has a Board Charter which isperiodically reviewed and published on thecompany’s website. The Board Charter clearly
identifies: •the respective roles and responsibilities of
the Board, Board committees, individual
directors and management; and•issues and decisions reserved for the Board

The Board establishes a Code of Conduct
and Ethics for the company and together
with management implements its policies
and procedures which include managing
conflicts of interest, preventing the abuse of
power, corruption, insider trading and money
laundering.
The Code of Conduct and Ethics is published on
the company’s website.

3.2

The Board establishes reviews and together
with management implements policies andprocedures on whistleblowing.

4.1

The Board together with management takes
responsibility for the governance of sustainability
in the company including setting the company’ssustainability strategies, priorities and targets.
The Board takes into account sustainability
considerations when exercising its duties
including among others the development
and implementation of company strategies,
business plans, major plans of action and risk
management.
Strategic
managementofmaterialsustainability matters should be driven by
Senior Management.

4.2

The Board ensures that the company’ssustainability strategies, priorities and targets
as well as performance against these targets
are communicated to its internal and external
stakeholders.

Innity Corporation BerhadCorporate Governance Overview Statement(Cont’d)54

A.

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best PracticeApplication

Explanation For Departure
And Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS (CONT’D)
I. Board Responsibilities (Cont’d)
4.3

4.4

4.5

The board takes appropriate action to ensurethat they stay abreast with and understand thesustainability issues relevant to the company
and its business, including climate-related risks
and opportunities.

AppliedNot applicable

Performance evaluations of the Board andSenior Management include a review ofthe performance of the Board and Senior
Management in addressing the company’s
material sustainability risks and opportunities.

AppliedNot applicable

Not Adopted

Not Adopted

AppliedNot applicable

Step Up:
The Board identifies a designated person withinmanagement, to provide dedicated focus to
manage sustainability strategically, including
the integration of sustainability considerationsin the operations of the company.

II. Board Composition
5.1

5.2

The Nomination Committee should ensurethat the composition of the board is refreshedperiodically. The tenure of each director should
be reviewed by the Nomination Committee
and annual re-election of a director should becontingent on satisfactory evaluation of thedirector’s performance and contribution to theboard.

At least half of the Board comprises independent
directors. For Large Companies, the Board
comprises a majority of Independent Directors.
Departure

Explanation: The Board intend
to increase the number ofIndependent
Non-Executive
Director from three (3) tofive (5) members to make up of
50% Independent Director.
Timeframe:
Before 31 December 2025.

5.3

The tenure of an Independent Director does
not exceed a term limit of nine (9) years. Uponcompletion of the nine years, an Independent
Director may continue to serve on the Board asa Non-Independent Director.
If the Board intends to retain an Independent
Director beyond nine years, it should provide
justification and seek annual shareholders’approval through a two-tier voting process.

AppliedNot applicableAnnual Report 2023

Corporate Governance Overview Statement(Cont’d)A.

55

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best PracticeApplication

Explanation For Departure And
Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS (CONT’D)
II. Board Composition (Cont’d)
5.4

Step Up:
The Board has a policy which limits thetenure of its Independent Directors to nine(9) years without further extension.

5.5

In identifying candidates for appointment
of directors, the Board does not solely rely on
recommendations from existing directors,
management or major shareholders.
The board utilises independent sources to
identify suitably qualified candidates.
If the selection of candidates was
based on recommendations made byexisting directors, management or major
shareholders, the Nominating Committee
should explain why these source(s) sufficeand other sources were not used.

5.7

Not applicable

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

Appointment of Board and Senior
Management are based on objective criteria,
merit and with due regard for diversity inskills, experience, age, cultural backgroundand gender.
Directors appointed should be able todevote the required time to serve the board
effectively. The Board should consider
the existing board positions held by adirector, including on boards of non-listedcompanies. Any appointment that may cast
doubt on the integrity and governance ofthe company should be avoided.

5.6

Not
AdoptedThe Board should ensure shareholders
have the information they require to makean informed decision on the appointment
and reappointment of a director. This
includes details of any interest, position
or relationship that might influence, or
reasonably be perceived to influence, in amaterial respect their capacity to bring an
independent judgement to bear on issues
before the Board and to act in the bestinterests of the listed company as a whole.
The Board should also provide a statement
as to whether it supports the appointment
or reappointment of the candidate and thereasons why.

Innity Corporation BerhadCorporate Governance Overview Statement(Cont’d)56

A.

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best PracticeApplication

Explanation For Departure And
Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS (CONT’D)
II. Board Composition (Cont’d)
5.8

5.9

The Nominating Committee is chairedby an Independent Director or the Senior
Independent Director.

AppliedThe Board comprises at least 30% women
directors.

Departure

Not applicable
The Board has appointed a female
Independent Non-Executive director
on 1 September 2022. As the Board
has not met the 30% target for female
directors, the Board will continue toidentify more female candidates whowill meet the qualifications, qualities
and standards that commensuratewith the Group’s requirements toachieve the target.
Timeframe:
Before 31 December 2025.

5.10

6.1

The Board discloses in its annual report
the company’s policy on gender diversity
for the board and senior management.
The Board should undertake a formal
and objective annual evaluation todetermine the effectiveness of the board,
its committees and each individual
director. The board should disclose how theassessment was carried out its outcome,actions taken and how it has or will
influence board composition.

AppliedNot applicable

AppliedNot applicable

AppliedNot applicable

For Large Companies, the board engages
independent experts at least every three
years, to facilitate objective and candidboard evaluations.

III. Remuneration
7.1

The Board has remuneration policies andprocedures to determine the remunerationof directors and senior management,
which takes into account the demands,
complexities and performance of thecompany as well as skills and experience
required. The remuneration policies andpractices should appropriately reflect thedifferent roles and responsibilities of NonExecutive Directors, Executive Directors
and Senior Management. The policies andprocedures are periodically reviewed andmade available on the company’s website.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)A.

57

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best Practice

Explanation For
Application Departure And
Timeframe

PRINCIPLE A – BOARD LEADERSHIP & EFFECTIVENESS (CONT’D)
III. Remuneration (Cont’d)
7.2

The Board has a Remuneration Committee to
implement its policies and procedures including
reviewing and recommending matters relating
to the remuneration of board and senior
management.

AppliedNot applicable

There is a detailed disclosure on named basis
for the remuneration of individual directors. The
remuneration breakdown of individual directors
includes fees, salary, bonus, benefits-in-kind andother emoluments.

AppliedNot applicable

The Board discloses on a named basis the top five
Senior Management’s remuneration component
including salary, bonus, benefits in-kind and other
emoluments in bands of RM50,000.

AppliedNot applicable

Not
AdoptedNot applicable

The Committee has written Terms of Reference
which deals with its authority and duties and theseTerms are disclosed on the company’s website.
8.1

8.2

8.3

Step Up:
Companies are encouraged to fully disclose thedetailed remuneration of each member of Senior
Management on a named basis.

PRINCIPLE B – EFFECTIVE AUDIT AND RISK MANAGEMENT
I. Audit Committee
9.1

9.2

9.3

9.4

The Chairman of the Audit and Risk Management
Committee (“ARMC”) is not the Chairman of theBoard.

AppliedNot applicable

The ARMC has a policy that requires a former
partner of the external audit firm of the listedcompany to observe a cooling-off period of atleast three (3) years before being appointed as amember of the ARMC.

AppliedNot applicable

The ARMC has policies and procedures to assess
the suitability, objectivity and independence ofthe external auditor to safeguard the quality andreliability of audited financial statements.

AppliedNot applicable

AppliedNot applicable

Step Up:
The Audit Committee should comprise solely of
Independent Directors.

Innity Corporation BerhadCorporate Governance Overview Statement(Cont’d)58

A.

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)
The Code’s Best Practice

Explanation For
Application Departure And
Timeframe

PRINCIPLE B – EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D)
I. Audit Committee (Cont’d)
9.5

Collectively, the Audit Committee should possessa wide range of necessary skills to discharge its
duties. All members should be financially literate
and are able to understand matters under thepurview of the Audit Committee including thefinancial reporting process.

AppliedNot applicable

All members of the Audit Committee should
undertake continuous professional development
to keep themselves abreast of relevant
developments in accounting and auditing
standards, practices and rules.

II. Risk Management and Internal Control Framework
10.1

The Board should establish an effective risk
management and internal control framework.

AppliedNot applicable

10.2

The Board should disclose the features of its risk
management and internal control framework, andthe adequacy and effectiveness of this framework.

AppliedNot applicable

AdoptedThe ARMC comprises solely
independent directors tooversee the risk management
and its policies.

AppliedNot applicable

AppliedNot applicable

10.3

Step Up:
The Board establishes a Risk Management
Committee, which comprises a majority of
independent directors, to oversee the company’srisk management framework and policies.

11.1

11.2

The ARMC should ensure that the internal
audit function is effective and able to function
independently.
The Board should disclose:a. whether internal audit personnel are freefrom any relationships and conflicts ofinterest which could impair their objectivity
and independence;b. the number of resources in the internal audit
department;c. name and qualification of the person
responsible for internal audit; andd. whether the internal audit function iscarried out in accordance with a recognised
framework.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)A.

59

APPLICATION OF MCCG 2021 PRACTICES (CONT’D)

The Code’s Best Practice

Explanation For
Application Departure And
Timeframe

PRINCIPLE C – INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH
STAKEHOLDERS
I. Engagement with Stakeholders
12.1

The Board ensures there is effective, transparent andregular communication with its stakeholders.

AppliedNot applicable

12.2

Large companies are encouraged to adopt integrated
reporting based on a globally recognised framework.

Not
applicableNot applicable

II. Conduct of General Meetings
13.1

Notice for an Annual General Meeting should be given to
the shareholders at least 28 days prior to the meeting.

AppliedNot applicable13.2

All directors attend General Meetings. The Chair of theNomination, ARMC and other committees provide
meaningful response to questions addressed to them.

AppliedNot applicable

AppliedNot applicable

The Chairman of the Board should ensure that general
meetings support meaningful engagement between
the Board, Senior Management and shareholders.
The engagement should be interactive and include robust
discussion on among others the company financial andnon-financial performance as well as the company’s
long-term strategies. Shareholders should also provide
with sufficient opportunity to pose questions during
the general meeting and all questions should receive ameaningful response.

AppliedNot applicable

The Board must ensure that the conduct of a virtual general
meeting (fully virtual or hybrid) support meaningful
engagement between the Board, Senior Management
and shareholders. This includes having in place therequire infrastructure and tools to support among
others, a smooth broadcast of the general meeting andinteractive participation by shareholders. Questions posedby shareholders should be made visible to all meeting
participants during the meeting itself.

AppliedNot applicable

Minutes of the general meeting should be circulated
to shareholders no later than 30 business days after thegeneral meeting.

AppliedNot applicable

13.3

Listed companies with a large number of shareholders or
which have meetings in remote locations should leveragetechnology to facilitate: •voting including voting in absentia; and•remote shareholders’ participation at General
Meetings

Listed companies should also take the necessary steps toensure good cyber hygiene practices are in place including
data privacy and security to prevent cyber threats.
13.4

13.5

13.6

Innity Corporation BerhadCorporate Governance Overview Statement(Cont’d)60

B.

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESSPART I - BOARD RESPONSIBILITIESStrategic Aim, Value and Standard
The Board assumes full responsibility for long-term sustainability of the Group through effective
stewardship and application of corporate governance best practices.
In discharging its fiduciary duties and overall leadership functions, the Board delegatessome authorities to the key members of Senior Management to facilitate effective day to day
management of business, providing leadership and guidance by working with the Senior
Management in mapping out the strategic direction of the Group, ensuring the effective use ofresources to meet its objectives while exercising oversight on management’s performance.
The Board Committees, comprising the Audit and Risk Management Committee, Nomination
Committee and Remuneration Committee are entrusted with specific responsibilities to oversee,with authority, the Group’s affairs, as laid out in the respective Terms of Reference. At each Board
meeting, the Chairman of the relevant Board Committees report on key matters deliberated by
the Board Committees at their respective meetings.
Key matters reserved for the Board’s approval include the annual business plan and budget, capitaland risk management, investment policies, authority limit discretionary powers, issue of new
securities, business restructuring, business continuity plan, dividend policy, capital expenditure oroperating expenditure exceeding authorised limits, material acquisitions and disposal of assets.
The Board regularly reviews the progress on the financial performance and strategic plan, ensuring
effective risk management and control in all aspects of the Group’s business.

Chairman
The Group is headed by an Executive Chairman, Mr. Phang Chee Leong, who is one of INNITY’s
principal founders. The Chairman has an important role in leading overall functioning of the Board
so that the Board and Board Committees can perform its responsibilities effectively.
The Chairman is responsible for:•Setting the agenda for Board meetings with a focus towards the Group’s performance,
strategic direction and good governance practices;•

Ensuring clear and relevant information are provided when key matters are deliberated at
Board meetings;•

Acting as a facilitator at Board meetings to ensure key matters presented by the relevant
Board Committees are addressed, resolved and sanctioned by the Board;•

Maintaining ongoing dialogue and cordial relationship of trust with and between the Directors
and Management;•

Providing leadership for the Board so that the Board can perform its responsibilities effectively;
and•Leading the Board in the adoption and implementation of good corporate governancepractices in the Company and the Group.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

61

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART I - BOARD RESPONSIBILITIES (CONT’D)
Separation of the Position between Chairman and Chief Executive Officer (“CEO”)
The positions of Chairman (designated as Executive Chairman) and CEO (designated as Managing
Director) are held by different individuals.
The roles and responsibilities of the Executive Chairman and Managing Director are clearly
differentiated between the strategy and policy-making process and daily management of the Group.
This is to ensure clarity of responsibilities and accountability between two individuals such that noone individual has unfettered powers over decision making.

Qualified and Competent Secretary
The Board is ably supported by two (2) Company Secretaries namely, Ms. Fong Seah Lih and
Ms.Tham Yin Tong who are externally appointed.
The Company Secretaries are well qualified Chartered Secretaries and possess the requisiteknowledge, experience and all-round exposure in their respective role as Company Secretary for
public listed companies in other sectors of the economy.
Apart from rendering secretarial services to public listed entities, the Company Secretaries provide
relevant advice on corporate governance, update the Board on the latest securities regulations withrespect to corporate disclosures and compliance as set out by external regulators to keep the Board
abreast with updated rules and regulations.

Access to Information and Advice
The agenda for Board meetings and a complete set of Board papers and preceding Board minutes
containing information relevant to the meeting agenda are circulated to all Directors at least seven(7) calendar days prior to the meeting. Board members are therefore, given sufficient time to go
through the Board papers thoroughly.
All Directors have access to all information within the Group. To facilitate discussions on operational
issues, such as changes on operating procedures and human resource issues, the Directors may
interact directly with the management requesting for further clarification, information or updates.
In addition, the Directors may seek independent professional advice at the Group’s expense,on specialised issues to enable them to discharge their duties with adequate knowledge of theissues being deliberated.

Board Charter
The Board has adopted a Board Charter which sets out the Board’s strategic intent and outlines aclear roles and responsibilities of the Board for the discharge of the Board’s fiduciary and leadershipfunctions. The Board Charter provides guidance for Directors and Management regarding the
responsibilities of the Board and Board Chairman in carrying out their stewardship role and indischarging their duties towards the Company as well as boardroom activities.
The Board Charter is reviewed and updated from time to time, as deemed necessary, to keep abreastof statutory revisions in corporate governance best practices to ensure its relevance and effectiveness.
The Board Charter is available on the Company’s website at www.innity.com.

Innity Corporation Berhad

62

B.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART I - BOARD RESPONSIBILITIES (CONT’D)
Business Code of Conduct (“COC”)
A Business Code of Conduct (“COC”) has been formalised to reflect the Group’s vision and corevalues of integrity, teamwork, learning and performance.
The COC constitutes the primary behaviour guide for the Company’s employees. It incorporates
the basic standards of ethical legal behaviour emphasising INNITY’s commitment, as a corporate
family to ethics and compliance with the law. The COC is also a preventive tool to help prevent anddetect violations of the Company’s policies and the law.
The COC is available on the Company’s website at www.innity.com.

Whistle-Blowing
The Board has established a Whistle-Blowing Policy for the Group as a measure against any formof fraudulent or criminal act. The Whistle-Blowing Policy outlines its governing principles, thereporting channels available to the whistle-blower, the initiation, investigation, follow-up phases
and remedial or consequent action taken.
Employees who have reasonable belief that there is serious misconduct relating to any matter
disclosed, may direct the complaint to the Chairman and a member of ARMC. Management will
ensure the employee who raises a genuine complaint in good faith shall not be penalised for suchdisclosure and such complaint shall be kept confidential.
Whistle-blowing policy sets out the principles and grievance procedures for any individual toreport any suspected or actual misconduct/wrongdoing perpetrated within the Group. This policy,
under the purview of the Group Risk Management Committee (“GRMC”) not only covers possible
improprieties in matter of financial reporting but also include:
A)
B)
C)
D)
E)
F)
G)

Fraud;
Corruption, bribery or blackmail;Criminal offences;
Failure to comply with a legal or regulatory obligation;
Miscarriage of justice;
Endangerment of an individual’s health and safety; andConcealment of any or any combination of the above

Details of the Whistle-Blowing Policy is available on the Company’s website at www.innity.com.
In brief, the Whistle-Blowing Policy outlines its governing principles, the reporting channels
available to the whistle-blower, the initiation, investigation, follow-up phases and remedial orconsequent action taken.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

63

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART I - BOARD RESPONSIBILITIES (CONT’D)
Anti-Bribery and Corruption
INNITY’s aversion to corruption, bribery or other improper payments in any of its business operations
has prompted the Board to develop, adopt the Anti-Bribery and Corruption Policy and further
to ensure that employees understand their responsibilities on INNITY Group’s zero tolerance forbribery and corruption. The policy acts as a deterrent to commit bribery and corruption violations
which are punishable by law. It is also an initiative to protect investors’ interest as well as toeffectively manage bribery and corruption risk. The policy was drafted in compliance with Section
17A (5) of the Malaysian Anti-Corruption Commission (Amendment) Act 2018, Paragraph 15.28(1)(a)(i) of the Listing Requirements pertaining to the Anti-Money Laundering Act (“AMLA”) in full
support of the National Anti-Corruption Plan (2019-2023).
A Corruption Risk Profile was developed, the risk response and action plan were identified
and ongoing control will be implemented and enhanced in managing corruption risks.
The Anti-Bribery and Corruption measures implemented will not only promote better governanceculture and ethical behaviour within INNITY, but will also provide greater accountability andtransparency to investors.
The Anti-Bribery and Corruption Policy is available on the Company’s website at www.innity.com.

Governing Sustainability
The Board holds the ultimate responsibility for integrating sustainability into the strategic directionof INNITY and its operations. To keep the Board informed about pertinent sustainability issues
impacting INNITY’s business and operations, we have implemented a sustainability framework.
This framework concentrates on the long-term preservation and enhancement of social, economic,
and environmental (“EES”) factors. Details on the approaches taken by the Group in sustainability
management and business processes are outlined in INNITY’s standalone Sustainability Statement,
available in the INNITY Annual Report. This statement provides comprehensive insights into ourcommitment to sustainable practices and their integration into our overall business strategy.

Sustainability Risk and Opportunity
With challenging externalities, environmental, social and governance (ESG) considerations havebeen thrust forward as core pilot strategies in resetting business models and propelling long term
value creation. The challenging externalities are driving investors to prioritise ESG factors in theirinvestment decisions.
To embrace sustainability in the Group’s business and create long term value, the Board together
with Senior Management have implemented a blueprint consisting of the Group’s strategy,
business plan, risk management and compliance in setting a vision of creating multiple digitaladvertising platforms through product Innovation and business models aligned with sustainability
trends. The Board is tasked with continuously addressing group ESG risk, strategic focus on ESG
as well as identifying business opportunities for the group. The Group’s sustainability strategy,
business plan and targets as well as performance against these targets are communicated to theinternal and external stakeholders.

Innity Corporation Berhad

64

B.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART I - BOARD RESPONSIBILITIES (CONT’D)
Director’s Fit and Proper Policy
The Board of Directors adopted a fit and proper policy which outlined the fit and proper criteria forthe appointment and re-election of Directors of the Company and its subsidiaries.
The said policy will enhance the governance of the Company in relation to the Board’s quality
and integrity, as well as ensure that each of its directors has the character, experience, integrity,competence, time and commitment to effectively discharge his role as Director of the Company
and its subsidiary. A copy of the Directors’ Fit and Proper Policy is made available on the Company’s
website at www.innity.com

PART II - BOARD COMPOSITION
Board Composition
The Board consists of eleven (11) Directors, comprising nine (9) principal Directors and two (2)alternate Directors. The nine (9) principal Directors comprised:
•
•
•
•
•

One (1) Executive Chairman;
One (1) Managing Director;
Two (2) Executive Directors;
Three (3) Independent Non-Executive Directors; andTwo (2) Non-Independent Non-Executive Directors.

The present composition of the Board is in compliance with Rule 15.02 of the ACE Market Listing
Requirements (“AMLR”). The Board is aware of the importance of independence in relation to thedecision-making process. An effective Board is able to exercise objective business judgment on
corporate affairs with frank and unbiased views from its independent directors whose roles are toact in the Company’s best interest.

Tenure of Independent Director
As the date of this Statement, no Independent Director have exceeded a cumulative term of nine(9) years.
The Board is required to seek shareholders’ approval through a two-tier voting process if the Board
continues to retain the Independent Director after nine (9) years. An Independent director who
had served a cumulative term limit exceeding twelve (12) years may continue to serve on the Board
subject to the Director’s re-designation as a Non-Independent Directors.

Diverse Board and Senior Management TeamThe Board acknowledges the importance of diversity in terms of skills, experiences, age, cultural
background as well as gender in leading the Board and Board Committees.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

65

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART II -BOARD COMPOSITION (CONT’D)
Diverse Board and Senior Management Team (Cont’d)
In evaluating potential candidates, the Group has in place a diversity policy. The Board acknowledges
the importance of diversity in its Boardroom, Senior Management and workforce whereby gender
diversity is an essential element in attaining effective strategic objectives of the Company andits subsidiaries, in enhancing sustainable growth and development and in promoting better
corporate governance. The Board takes cognisance of the recommendation of the MCCG 2021
appointed a female director and continue to identify more female candidates who meet thequalifications, qualities and standards that commensurate with the Group’s requirements toachieve the 30% target.
The policy articulates the diversity attributes and needs of the Board and the approach it would
take to address such needs and, in the process, strengthen its composition. The policy plays an
integral role in the selection of candidates for Board membership. The Board recognises thebenefits of diversity, the Board believes in providing equal opportunities to all based on merits,
skills, knowledge, expertise, experience, professionalism and integrity regardless of gender,
ethnicity and age.
As for the Senior Management, the Board is committed to provide fair and equal opportunities
and nurturing diversity at all levels within the Group. All persons, regardless of age, gender andethnicity with the appropriate experience and qualifications are considered equally in the processof selection of suitable candidates during the recruitment, remuenration and promotion.
Diversity of the Board’s composition is important to facilitate optimal decision-making byharnessing different insights and perspectives.

Nomination Committee
The Nomination Committee (NC) was formed by the Board of Directors on 30 April 2008. Its primaryfunction, in line with the MCCG 2021, is tasked with the following responsibilities and duties:
The Nomination Committee•
Proposing new nominees for the Board of the Company and/or its subsidiaries;•

Establishing procedures and processes towards an annual assessment of the effectivenessof each individual Director, including Independent Non-Executive Directors as well asGroup Managing Director in terms of their individual experience, knowledge, credibility andcredentials, and assess their effectiveness and contribution in carrying out their obligations
and duties as a Board member of the Company;•

Examine the ability of each Director, including the Group Managing Director, to contribute to
the effective decision-making process of the Board and ensure that the Board of the Company
is functioning actively, efficiently and effectively in all its decision making;•Assess the effectiveness, size and composition of the Board of Directors as a whole and thecommittees of the Board; and•To ensure there is sufficient succession planning and human capital development focus in
the Company.

Innity Corporation BerhadCorporate Governance Overview Statement(Cont’d)

66

B.

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART II -BOARD COMPOSITION (CONT’D)
Nomination Committee (Cont’d)
The Nomination Committee comprises exclusively of Independent Non-Executive Directors
headed by Mr. Fung Kam Foo, an Independent Non-Executive Director, as Chairman.

Chairman
Mr. Fung Kam Foo (Independent Non-Executive Director)

Members
Mr. Cheong Chee Yun (Independent Non-Executive Director)
Puan Norliza Binti Rasool Khan (Independent Non-Executive Director)
The Committee held one (1) meeting during the financial year ended 31 December 2023. During
the meeting, the Committee: i.

Reviewed and assessed the performance and effectiveness of the Board as a whole and thecontribution of each individual Director of the Company;

ii.

Reviewed the term of office and performance of the Audit and Risk Management Committee
and each of its members;iii.

Reviewed the independence of the Independent Directors;

iv.

To Reviewed and assessed the performance and effectiveness of the Key Officer of theCompany;v.

Assessed, reviewed, considered and recommended, at the next AGM, Board members due
for re-election.

The Terms of Reference of the NC is available at the Company’s website at www.innity.com.

Annual Evaluation
Vested with the responsibility of evaluating the effectiveness of the Board, Board Committees andindividual directors and Key Senior Officers, a formal and objective evaluation of each individual
director, based on Self and Peer assessment, is conducted by the Nomination Committee annually.
The evaluation of the Board, Board Committees, individual Directors and Key Senior Officers’
effectiveness was conducted internally, facilitated by the Company Secretary. The evaluation
process was carried out using questionnaires that were modelled on Self and Peer ratingassessment. The evaluation was administered by the Company Secretary.
Each Director furnishes to the Board a self-assessment of his performance during the course of thefinancial year. An objective assessment by each Director on the performance of each of his peers
is also submitted to the Board for adjudication and levelling. The assessment included whether
each Director, when addressing various issues, was able to exercise independent judgment, whenchallenged on his point of view, while still acting in the Company’s best interest. The Board issatisfied with the time commitment and level of effective participation given by the Directors
as espoused in the Code, towards fulfilling their roles and responsibilities. The Board establisheda “Fit and Proper” policy to enhance the evaluation of all Directors to ensure that all members
measure up to the standards expected in terms of integrity, independence and professionalism.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

67

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART II -BOARD COMPOSITION (CONT’D)
Nomination Committee (Cont’d)Nomination and Election of Directors
The Nomination Committee is tasked with making suitable recommendations to fill vacancies on
the Board and its various Committee. This is to ensure that the appointed Directors bring to theBoard, a mix of skills and expertise necessary to meet the requirement of corporate stewardship.
To alleviate the perception of bias in the selection of candidates, the NC is open to
recommendations or suggestions from external sources such as professional associations andexecutive search agencies. The Board and the NC shall conduct the fit and proper assessment
prior to the appointment of any candidate as Director or making recommendations for the
re-election of an existing Director. The assessment was based on the criteria set out in the “Director
Fit and Proper Policy” and applied on an ongoing basis in the Board’s nomination and election
process of directors. The potential candidate or Director has to make a declaration that he/she
possesses the required character, experience, integrity, competence and time commitment todischarge his/her duties as a director.

Board Commitment
During the financial year, six (6) meetings were held. Details of the Directors’ attendance are as
follows:

Director
Mr. Phang Chee Leong
Mr. Looa Hong Tuan
Mr. Wong Kok Woh
Mr. Seah Kum Loong
Mr. Gregory Charles Poarch
Mr. Michihiko Suganuma
Mr. Cheong Chee Yun
Mr. Fung Kam Foo
Puan Norliza Binti Rasool Khan

Number of Board Meetings Attended
6/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6
6/6

Re-election of Retiring Directors
In accordance with the Companies Act 2016 and the Constitution of the Company, one-third (1/3) ofthe Directors, including the Executive Chairman, shall retire by rotation from office at each Annual
General Meeting (“AGM”) and they shall be eligible for re-election at such AGM. The Directors
to retire shall be the Directors who have been longest in office since their appointment or last
re-election.
Directors who are appointed by the Board in the course of the year shall be subject for re-election
at the next AGM to be held following their appointments.
Pursuant to Clause 76 of the Company’s Constitution, Wong Kok Woh, Gregory Charles Poarchand Michihiko Suganuma are subject to retirement by rotation at the forthcoming 17th AGM andthey have expressed their willingness to seek for re-election at the 17th AGM.

Innity Corporation Berhad

68

B.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART II -BOARD COMPOSITION (CONT’D)
Nomination Committee (Cont’d)Directors’ Training
The Board views the importance of continuing education for its directors seriously, ensuring they
are well informed and are equipped with the requisite skills and knowledge to meet the various
challenging issues to be deliberated by the Board. A budget for Directors’ continuing education has
been set aside annually by the Company.
All Directors are required to complete the Mandatory Accreditation Program Part II (“MAP II”) in
relation to sustainability and the related roles of a directors organised by the MAP II organiser nolater than 1 August 2025. MAP II is an extension to the Mandatory Accreditation Program (“MAP”),
the main focus is on corporate governance, including director’s roles, duties and liabilities as well asother obligations under the Bursa Listing Requirement.
The following directors listed in the table have attended relevant training programmes, webinars,
workshops seminars and MAP II organised by regulatory authorities and professional bodies: -Name of Director

Name of programme

1.

Phang Chee Leong

Leveraging Artificial Intelligence (AI) in
Growing the Digital Economy

11 October 2023

2.

Looa Hong Tuan

MIA Webinar Series: Financial Analysis as
Strategic and Operational Management
Tool

13 September 2023

3.

Wong Kok Woh

Leveraging Artificial Intelligence (AI) in
Growing the Digital Economy

11 October 2023

4.

Seah Kum Loong

Webinar Series: Reading, Understanding
and Analysing of Financial Statements for
Better Decision Making

25 October 2023

5.

Norliza Binti Rasool Khan

Mandatory Accreditation Programme Part II:
Leading for Impact (LIP)

11-12 Dec 2023

University of Oxford Leading Sustainable
Corporations Programme
6.

7.

Michihiko Suganuma

Fung Kam Foo

Date

6 weeks programme
ended on 24 January2024

Ad Creative Summit 2023 Summer

12 July 2023

Google×HDYG APAC Summit 2023

14 September 2023

AdAsia 2023 Seoul

24-27 October 2023

MarTech Innovation Conference and Expo2023

31 October - 2 November
2023

A New Strategy & Risk Approach -Out WithThe Old, In With The New

12 October 2023

A Delicate Balance – Board & Management
Relationship

2 November 2023

Mandatory Accreditation Programme Part II:
Leading for Impact (LIP)

6-7 December 2023

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

69

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART II - BOARD COMPOSITION (CONT’D)
Nomination Committee (Cont’d)Directors’ Training (Cont’d)
The following Directors listed in the table have attended relevant training programmes, webinars,
dialogue sessions and briefings organised by regulatory authorities and professional bodies: (Cont’d)8.

9.

Name of Director

Name of programme

Gregory Charles Poarch

Mandatory Accreditation Programme Part II:
Leading for Impact (LIP)

6-7 December 2023

Bursa: Conflict of Interest and Governance ofConflict of Interest

27 July 2023

Cheong Chee Yun

Date

Closed Period and Insider Trading

21 November 2023

BDO Tax Webinar on Budget 2023

15 March 2023

PLC Transformation Programme-Digital4ESG

10 April 2023

Advance corporate tax issues and strategies

17 May2023

ESG and Carbon Footprint by MyESG Sdn Bhd

30 August,6 Sept,
13 Sept 2023

Sustainability in the digital edge

14 Sept 2023

Capital Gains tax & Latest development on tax
treatment on receipt of foreign dividends

28 Nov 2023

Mandatory Accreditation Programme Part II:
Leading for impact

4 -5 December 2023

PART III – REMUNERATION
Remuneration Committee
The Board has established a Remuneration Committee (“RC”) to make recommendations to theBoard on all aspects of remuneration for the Executive Directors, Non-Executive Directors andSenior Management.
The present composition of the RC consists of three (3) Independent Non-Executive Directors: -Chairman
Mr. Fung Kam Foo (Independent Non-Executive Director)

Members

Mr. Cheong Chee Yun (Independent Non-Executive Director)
Puan Norliza Binti Rasool Khan (Independent Non-Executive Director)
The Committee meets at least once a year. Additional meetings can be convened if it is necessary
by the Chairman.
The Committee held one (1) meeting during the financial year ended 31 December 2023.

Innity Corporation Berhad

70

B.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART III – REMUNERATION
Remuneration Policy
An appropriate remuneration policy is critical to attract, retain and motivate individuals of thehighest calibre to drive the long-term success of the Group.
At INNITY, the development of this policy framework, structured to link rewards to individual andcorporate performance, is guided by market norms and industry practice. This framework is thepurview of the Remuneration Committee and is shaped by the following underlying principles:
a.
b.
c.

Consistency with Group strategy and business objectives;
Competitive with remuneration policies of competing companies; andCompliance with Company values.

The Remuneration Committee makes recommendations to the Board on all elements of the
remuneration, terms of employment, reward structure, and fringe benefits for the Executive
Directors, Non- Executive Directors and Senior Management.
The remuneration package of Executive Directors and Senior Management includes salaries,
allowances, benefits-in-kind and bonuses and fees. In addition, Non-Executive Directors are
remunerated through fixed director’s fees and meeting allowances. The remuneration andincentives provided for Independent Directors are not in conflict with their obligations in bringing
objectivity and independence on matters discussed.
The level of remuneration reflects the depth of experience and level of responsibilities undertakenby the individual Non-Executive Director concerned. In any event, fees payable to Non-Executive
Directors are determined by way of benchmarking with competing organisations.
The Terms of Reference of the RC and the Remuneration Policy and Procedures can be viewed on
the Company’s website at www.innity.com.
The RC shall recommend to the Board the remuneration and entitlement of all Directors andthe Board will decide based on the recommendations of the RC. The approval for directors’
remuneration rests with the Board as a whole with the Directors abstaining from voting anddeliberating on decisions in respect of their own remuneration package.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

B.

71

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D)PART III – REMUNERATION (CONT’D)
Remuneration Policy (Cont’d)
The remuneration paid or payable to Directors for the financial year ended 31 December 2023 are
as follows:

Salary

Fees

Bonus

Other
Emoluments*

Total

Fung Kam Foo-

46,200-3,500

49,700Norliza Binti Rasool Khan-

46,200-3,500

49,700

Cheong Chee Yun-

46,200-3,500

49,700

Gregory Charles Poarch-

23,100--23,100Liong Wei Li-

23,100--23,100Michihiko Suganuma

-

-

-

-

-

Rieko Yoshikawa

-

-

-

-

-

TOTAL

-

184,800-

10,500195,300

Phang Chee Leong

584,520331,226

24,60583,935

1,024,286

Looa Hong Tuan

721,435-

21,64074,680817,755

Wong Kok Woh

319,200-

13,55049,295382,045

Seah Kum Loong

291,360-

12,39045,960349,710TOTAL

1,916,515

331,226

72,185

253,870

2,573,796

Group (in RM)
Non-Executive Directors: -Executive Directors: -* Other emoluments include allowances, Employee Provident Fund contributions, Employment Insurance
System contributions and social security contributions by the Company/the Group.

The remuneration (comprising salary, bonus, benefits in-kind and other emoluments) paid to
the top five (5) Senior Management staffs of the Group, categories into bands of RM50,000, forthe financial year under review, are as follows:

Name
Chow Tat Kee
Edward Lum Chi Kwan
Yap Soon Kim
Lee Pey Ling
Gilbert Chee Guang Yao

RM200,001 to
RM250,000

RM250,001 to
RM300,000

RM300,001 to
RM350,000

Innity Corporation Berhad

72

C.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENTPART I - AUDIT COMMITTEE
Audit and Risk Management Committee
The Board has established an Audit Committee on 21 May 2009 and subsequently renamed it as
the Audit and Risk Management Committee(“ARMC”) on 29 May 2014 to reflect the ARMC’s roleof supporting the Board in fulfilling its responsibilities towards governance of the Company’s risk
management matters in compliance with the recommendations of the MCCG 2021.
The ARMC is tasked with oversight of the financial reporting process, internal and external audit
process, issues pertaining to internal control and risk management. Its objective is to assist theBoard of Directors in fulfilling its fiduciary duties.
Presently, the ARMC comprises three (3) members of the Board, who are all Independent
Non-Executive Directors. The Chairman of the ARMC is Mr. Cheong Chee Yun who is not the
Chairman of the Board.
The Terms of Reference of the ARMC is found on the Company’s website at www.innity.com.
The activities of the ARMC during the year are described in the Audit and Risk Management
Committee Report on page 38 to page 40.

Risk Governance
The Board recognises the importance of establishing an effective risk management andinternal control framework in achieving the Group’s strategic objectives and to ensure longterm sustainability of the business. The Board has established an Enterprise Risk Management
Framework (“ERMF”) which assists all operational levels in achieving the Company’s strategic
objectives by adopting a systematic approach to evaluate and improve the effectiveness of risk
management and control.
The Audit Risk Management Committee (“ARMC”), established by the Board, has oversight over therisk management process. The ARMC oversees the successful implementation of the frameworkby setting, where appropriate, objective performance targets and policies to the Management
Risk Committee (“MRC”) to manage and mitigate the principal risks identified. MRC consists offour Executive Directors and a Senior Management personnel.
The Senior Management Personnel in the MRC is the Risk Management Officer/Coordinatorand key personnel from companies in the Group. Representatives from the respective divisions/business units within the Group are tasked with reporting key risks to the Risk Management
Officer/Coordinator for the attention of the MRC.
Risk assessment is conducted on yearly basis by the ARMC together with the MRC and relevant
Heads of Departments. The process involves identifying and reviewing new and existing key risks
factors that affect the Group and assessment the level of corresponding mitigation action plan toaddress them in accordance with the Group’s risk appetite and tolerance defined in the ERMF.
It includes updates on the effectiveness of the mitigation action implemented.
The Risk Management framework entails identifying and reviewing existing and potential key risk
factors afflicting or may likely affect the Group’s businesses. The ARMC meets periodically with
the Risk Management Officer/Coordinator to deliberate on the identified risks. These identified
risks are managed and mitigated through an action plan developed by the MRC which will besanctioned by the ARMC with the Board’s endorsement.
The Statement on Risk Management and Internal Control, as set out in page 44 to page 51, provides
an overview on the state of risk management and internal control within the Group.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)C.

73

PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D)PART II - RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORKInternal Audit
The internal audit function, which provides feedback on the adequacy and effectiveness of theGroup’s system of internal control, is under the purview of the ARMC.
The Group’s internal audit function is outsourced to an independent professional service provider
firm namely, Resolve IR Sdn Bhd (“RESOLVE”).
As a corporate member of the Institution of Internal Auditors, Malaysia (“IIAM”) RESOLVE is freefrom any relationship or conflict of interest, which could impair its objectivity and independence.
RESOLVE is adequately resourced and staffed with persons having the relevant qualification andexperience. In addition, the firm also identifies and provides relevant training and development to
its staff to ensure that their technical knowledge and skill sets remain current and relevant.
During the financial year ended 31 December 2023, RESOLVE has undertaken independent andsystematic review on the systems of internal control of the operating units within the Group andhas provided reasonable assurance that such systems would continue to operate effectively, and incompliance with the Group’s established policies and procedures. The work undertaken is guided
by the International Professional Practices Framework on Internal Auditing that is promulgatedby the IIAM.
RESOLVE reports directly to the ARMC and findings of the internal audits, including recommended
corrective actions, were presented to the ARMC on a quarterly basis. In addition, follow up reviews
were conducted to ensure that corrective actions have been implemented on a timely manner.
Based on the internal audit reviews conducted, none of the weaknesses noted have resulted inany material losses, contingencies or uncertainties that would require separate disclosure in thisAnnual Report.
The Board is of the view that the Group’s system of internal control is adequate to safeguard
shareholders’ value. However, the Board is also cognisant of the fact that the Group’s system ofinternal control and risk management practices must continuously evolve to meet the changing
and challenging business environment. Therefore, the Board will, when necessary, put in placeappropriate action plans to further enhance the system of internal control and risk management
framework. The Board will continue to further enhance and integrate sustainability factors into
the risk management framework.
The Group’s risk management process and internal control system do not apply to associatecompanies where the Group does not have full management control. The Group’s interest in therespective associate companies is served through representation on the Board of Directors.

Relationship with the External Auditors
The Board maintains, via the ARMC, an active, transparent and professional relationship with theGroup’s external auditors. The ARMC works closely with the audit partner, assigned to act as the key
representative and liaison, overseeing the relationship of INNITY Group with the external auditors.
At least 2 meetings are held to discuss the audit plan, audit findings and the Group’s financial
statements. From time to time, the external auditors highlight to the ARMC and the Board on
matters that require the ARMC and Board’s attention and action. A private session between the
ARMC and external auditors was also held to provide an opportunity to bring matters of concern
to the ARMC. There were no concerns raised that may have an impact onto the internal control
systems or the financial disclosures.

Innity Corporation Berhad

74

C.

Corporate Governance Overview Statement(Cont’d)

PRINCIPLE B - EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D)PART II - RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK(CONT’D)
Relationship with the External Auditors (Cont’d)
The ARMC has put in place a set of criteria to assess the suitability and independence of external
auditors.

Briefly, these are:
a.
b.
c.
d.
e.
f.
g.

Adequacy of resources, qualifications and service quality of the External Audit team;Global presence in the Group’s existing business units;
Possess a stringent audit framework and programme to uncover major audit issues (if any);
Strict enforcement of applicable auditing and accounting standards;
Experience in offering practicable solutions when faced with problematic issues;
Able to communicate effectively with top and middle management; andIndependent but strong and cordial relationship with auditee companies.

During the financial year under review, the ARMC was satisfied with the suitability and performanceof the external auditors in terms of the quality of services rendered, their objectivity, independence
and professionalism with respect to the Company and the Group, in accordance with the
By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants.
In addition, to the best knowledge of the ARMC, the provision of non-audit services by the external
auditors during the year did not compromise the external auditors’ independence.
As and when necessary, the external auditors are invited to attend the Company’s Annual General
Meeting/Extraordinary General Meeting and are obliged to answer any questions from shareholders
on the conduct of the statutory audit, contents of the Annual Audited Financial Statements as wellas any corporate exercise(s) undertaken by the Group where the external auditors are involved.
The services provided by the external auditor include statutory audit and non-statutory audit
services. The terms of engagement for the statutory audit and non-audit services rendered by
the external auditor are designed to ensure that such services do not impair the external auditors’
independence or objectivity. As evidence of this, the amount of non-audit fees paid were notsignificant as compared to the total fees paid to the external auditors for the financial year underreview.
The activities of the ARMC during the year are described in the Audit and Risk Management
Committee Report in this Annual Report (page 38 to page 40).

D.

PRINCIPLE C - INTEGRITY IN CORPORATE REPORTING AND MEANINGFULRELATIONSHIP WITH STAKEHOLDERSPART I – COMMUNICATION WITH STAKEHOLDERS
The Board values transparency and accountability to its shareholders, media personnel and investors.
The Company reaches out to these stakeholders through timely disclosures via various publicannouncements, organising investor briefings, analyst and media briefings and issuance of theAnnual Report.
The Annual Report, being a key source of information available to each shareholder, contains easy andcomprehensive details on the progress of the business, the financial performance of the Company
and Group and various other corporate information relevant to shareholders. The Company’s
shareholders and investors can also obtain general information of the Company through its website.

Annual Report 2023

Corporate Governance Overview Statement(Cont’d)

D.

75

PRINCIPLE C - INTEGRITY IN CORPORATE REPORTING AND MEANINGFULRELATIONSHIP WITH STAKEHOLDERS (CONT’D)PART II - CONDUCT OF GENERAL MEETING
Currently, the General Meetings are the principal forum for dialogues with the shareholders andinvestors. At each General Meeting, the Board presents the progress and performance of the Group
and/or Corporate Proposals of the Company and shareholders are encouraged to participate in thequestion-and-answer sessions. Informal discussions between the Directors, Senior Management
staff and the shareholders and investors are always active before and after the General Meetings.
Notice of the AGM, the Annual Report and relevant circulars are sent out to shareholders at least
twenty-eight (28) days before the date of the meeting.
At each AGM, the Board presents the progress and performance of the business and encourages
shareholders to participate and to raise questions about the resolutions being proposed and about
the Group’s operations in general. Executive Directors and, where appropriate, the Chairman of thevarious Board Committees are available to respond to shareholders’ questions during the meeting.

Our Priorities and Focus Areas in FY2024
INNITY’s priority is to continually drive risk and compliance culture across the Group by supporting
corporate governance best practices as set out in MCCG 2021. This will ensure the Group’s strong
capital position and earnings growth are achieved in a sustainable manner.
In FY2024, much of our priorities will be focused in the following areas: i.

Fulfilling MCCG 2021 on a minimum 50% of the Board be made up of Independent Directors.
Despite this departure currently, the Board will make every effort and expense in appointing
the right candidate, irrespective of gender, who meets the prerequisites of having a balanced
perspective, delivering unbiased opinions and exercising strong independent judgment,
diversity in skills, experience and background, to sit as Independent Directors on the Board;ii.

To achieve the 30% target for female representation on the board, INNITY plans to identify
more female candidates who meet INNITY’s qualification criteria;iii.

Enhancing the Group’s risk management capabilities to identify and control emerging risks
including cyber risks and sustainability factors; andiv.

Refining the audit and internal control processes to deal with any potential weaknesses which
may likely affect the Group’s businesses.

This statement is made at the Board of Directors’ Meeting held on 9 April 2024.

S U S TA I N A B I L I T Y
S TAT E M E N T

ABOUTINNITY

Innity Corporation Berhad

77

OUR APPROACH TOSUSTAINABILITY

Sustainability Governance80

Stakeholder Engagement

81

Material Matters

83

Risk Management

85

Sustainability Framework

86

Performance Scorecard

88

Anti-Corruption & Bribery

90

Employee Health, Safety and Wellbeing

91

Data Privacy and Security

93

Diversity, Equity and Inclusion

94

Supply Chain Management

97

Labor Practices and Management

97

Community and Society

99

Energy Management

100

Water Management

101

Waste Management

103

Emission Management

104

Performance Data Table

106

GRI Content Index

109

SASB Content Index

112

Material Matters

113

Glossary

116

MANAGEMENTAPPROACH FOR
MATERIAL
MATTERSAnnual Report 2023

SUSTAINABILITY STATEMENT

77

INNITY CORPORATION BERHAD
Innity Corporation Berhad and its subsidiaries (“INNITY Group”) is the leading online advertising company
in Asia that provides data-driven, interactive online marketing solutions and technologies for advertisersand publishers. INNITY Group has presence in Malaysia, Singapore, Indonesia, Vietnam, Philippines, Taiwan,
Hong Kong, Cambodia and Myanmar, with over 300 staff in total. INNITY Group is committed to constantly
exploring online marketing opportunities for all our partners through our versatile combination of online
media proficiency, industry clout, and the development of cutting-edge technology in a brand-safe andfraud-free environment.

Where Innity Operates
Innity is a leading online advertising operating in Malaysia, Singapore, Indonesia, Taiwan, Philippines,
Vietnam, Myanmar, Cambodia and Hong Kong.

Group Structure and Operating Entities
Investment Holding
100%

100%

Innity Sdn. Bhd.

PassionCo Sdn. Bhd.

Technology-based online
advertising solutions and otherrelated internet services(Malaysia)

Dormant(Malaysia)

51%

100%

95%

PT Media Innity

DoMedia Asia Sdn. Bhd.

Innity Philippines, Inc.

Provision of technology based
online advertising solutions andother related internet services(Indonesia)

Provision of technology based
online advertising solutions andother related internet services(Malaysia)

Provision of technology based
online advertising solutions andother related internet services(Philippines)

74%

1%

100%

100%

100%

Appsploration
Sdn. Bhd.

Innity Shanghai
Ltd.

Innity Limited

Developing computer andmobile software application(Malaysia)

Dormant(China)Innity Cambodia
Co., Ltd.

72%

Investment holding company(Hong Kong)

28%

Provision of technology based
online advertising solutions andother related internet services(Cambodia)

65%

80%

100%

88%

49%

Innity Myanmar
Co., Ltd.

Innity China Co.,
LimitedDynamic Outdoor
Media Sdn. Bhd.

Innity Singapore
Pte. Ltd.

Innity Vietnam
Co., Ltd.

Innity Digital Media(Thailand) Co., Ltd.

Provision of technology based
online advertising solutions
and other related
internet services(Myanmar)

Provision of technology based
online advertising solutions
and other related
internet services(Hong Kong)

Provision of WIFI services for
F&B outlet, shopping centre
and township(Malaysia)

Provision of technology based
online advertising solutions andother related internet services(Singapore)

Software production house(Vietnam)

Provision of technology based
online advertising solutions andother related internet services(Thailand)

100%

100%

80%

Passionation(Hong Kong) Limited

Innity Taiwan
LimitedInnity Korea Co., Ltd*

Development of content
and influencer marketing(Hong Kong)

Provision of technology based
online advertising solutions
and other related
internet services(Taiwan)90%

Provision of technology based
online advertising solutions
and other related
internet services(South Korea)

60%

40%

Offerstation
Sdn. Bhd.

Innity Software & Advertising Co., Ltd.
Provision of technology based online advertising solutions
and other related internet services(Vietnam)Operate promotional andsales events information
website(Malaysia)

Note: We have excluded the following from our reporting scope:a.

Operations in Myanmar, Taiwan, Korea, Thailand and Cambodia are excluded as we only take accountthe countries which has insignificant impact on the Group’s overall sustainability performance andprogress.

b.

Our associated company, namely: Innity Digital Media (Thailand) Co.,Ltd. As we have limited control
or influence over the associated company’s operation.

c.

Operations in Innity Cambodia Co.,Ltd., Innity Myanmar Co.,Ltd., Innity Limited, Innity Shanghai Ltd.,
Dynamic Outdoor Media Sdn.Bhd., and PassionCo Sdn.Bhd company’s activities may not be material
enough to significantly impact the overall ESG performance of the reporting entity.

Innity Corporation Berhad

Sustainability Statement (Cont’d)78

Governance Structure
Stakeholders

Board of Directors

Audit & Risk
Management Committe

Remuneration CommitteNomination CommitteCompany Secretary

Executive Chairman
Group Managing Director

Corporate Strategy

Creative & Design

Trading

Finance

Strategic Partnership

Sales

Influencer Marketing

R&D

HR

Strategy &Implementation

Programmatic
SupplyAd OpsSenior Management Team
Phang Chee Leong

Wong Kar Wei

Gabriel Joaquin Dionisio Zosa

Looa Hong Tuan

Yap Soon Kim

Chong Yee Yin

Wong Kok Woh

Lee Pey Ling

Koong Wah Yan

Seah Kum Loong

Gilbert Chee Guang Yao

Chow Tat Kee

Edward Lum Chi Kwan

Lim Kai Hian

Nadya Rosalia Hanum Simbolon

Lee King Huat

Doan Thi My Phuong

Executive Chairman

Group Managing Director
Executive Director
Executive Director

Head of Creative & Design
Singapore Country Manager

Regional HR Business Partner
Chief Financial Officer
Regional, Head of Strategic Partnership
Strategy and Implementation Director
Hong Kong Managing Partner
Vietnam General Manager

Philippines Country Manager
Trading Director

Head of Research & Development
Corporate Strategy Director
Indonesia General Manager

Annual Report 2023

Sustainability Statement (Cont’d)

79

ABOUT THIS REPORT
Innity Corporation Berhad (“Innity”) is pleased to present our Annual Sustainability Statement for theyear 2023. This report offers an insight into the Group’s sustainability endeavours from January 1, 2022, toDecember 31, 2023, unless specified otherwise.
Restatement of information for this reporting cycle can be found in the Performance Data table page 106
to page 108.

Scope and Basis of Scope
This Statement covers more than 90% Group’s sustainability performance and progress of our business
operations in Malaysia and selected geographical locations we operate in, namely Singapore, Indonesia,
Philippines, Vietnam and Hong Kong.
We excluded the following from our reporting scope:a.

Operations in the Myanmar, Taiwan, Korea, and Cambodia as these operations have minimal impact
on the Group’s overall sustainability performance and progress.

b.

Operations in Thailand as we lack managerial control.

We will maintain the reporting scope of this statement similar to last year, as the Group has not made any
major changes that would affect the operation.
We will strive to include all significant geographical areas that we operate in, for our future reports.

Reporting Frameworks and Standards
This Statement has been developed according to Bursa Malaysia’s Ace Market Listing Requirements,
with reference to Bursa Malaysia’s Sustainability Reporting Guide (3rd Edition), Global Reporting Initiative(“GRI”) Standards, Sustainability Accounting Standards Board (“SASB”) Standards and the International
Sustainability Standards Boards (“ISSB”) Standards.

Data Assurances
All performance indicators used herein will be using year 2023 as the base year. In terms of assuranceson the data for the performances indicated herein, the data are being generated and verified internally.
We intend to do the assurances on our performance data in year 2024.

Feedback
We welcome and encourage our stakeholders to provide feedback pertaining to this Statement and theissues covered to our Corporate Department at compliancealert@innity.com.

Innity Corporation Berhad

OUR APPROACH TO SUSTAINABILITY

80

1.

SUSTAINABILITY GOVERNANCE
The Group’s sustainability governance structure is seamlessly integrated into our corporate
governance framework. To ensure sustainability permeates every aspect of our organisation,
the responsibilities of our Board and its committees have been expanded to include sustainability
elements, as outlined in their respective terms of reference. The Board of Directors holds ultimate
responsibility for setting the Group’s sustainability strategy, with support from the Audit and Risk
Committee (ARMC) through delegated authority.
Our Sustainability Committee (SC), led by the Corporate Strategy Director, aids the ARMC instrategically managing the organisation’s significant sustainability concerns. Comprising C-suite
executives, Senior Management, and Country Heads from various geographical locations, theSC represents diverse perspectives.
Operating under the SC’s umbrella is the Sustainability Working Group (SWG), consisting of
middle management members from our operating countries and units. The SWG is tasked
with implementing the organisation’s sustainability strategies and plans on a day-to-day basis.
Additionally, the Sustainability Department serves as both subject matter experts and coordinatorsof the Group’s sustainability efforts and performance.
The Board of Directors actively seeks to enhance their understanding of sustainability management,
including climate-related risks and opportunities, through regular participation in capacity-building
programs. Furthermore, the Board ensures periodic assessment of competencies related tosustainability to bolster leadership and oversight in this area.
To foster group-wide accountability for sustainability performance, sustainability-linked key
performance indicators (KPIs) are incorporated into the Board’s and senior management’s
performance evaluation scorecards. This approach aims to drive collective efforts in steering oursustainability journey forward.

Board of Directors
Ultimately responsible for overseeing the sustainability aspects of the Group, encompassing, but not restricted
to, sustainability strategy and goals, materiality assessments, and climate-related risks and opportunities.
Ensures the integration of sustainability considerations within the Group and its respective businesssegments, fostering a robust sustainability culture across the entire organisation.

ARMC
Assesses the sufficiency and reliability of theinternal control systems and processes within
the Group.
Supervises the execution of assurance activities
related to the company's sustainability reporting
procedures.

Board Remuneration Committee

Board Nomination Committee

Evaluates the performance of the Board and senior
management based on mutually agreed
sustainability-linked Key Performance Indicators(KPIs).

Nominating individuals for Board positions who
have the requisite skills and commitment to drive
sustainable business practices

Examines the connections between thecompany's substantial sustainability issues andfinancial performance.

Sustainability Committee

Endorses the sustainability strategy and targets,policies, materiality assessment process andoutcomes, and the sustainability statement.

Formulates sustainability strategy and policies
and proposes revisions to the Board committees.

Directs the management of significant
sustainability matters, encompassing
climate-related risks and opportunities.

Ensures the consistent implementation of thesustainability strategy across the Group'sbusiness segments and geographical locations.

Tracks the execution of sustainability strategies
and policies and evaluates performance against
established targets.

Assesses comprehensive sustainability risks andopportunities, with a specific focus on
climate-related issues.
Scrutinises the materiality assessment process
and its outcomes.
Examines the sustainability statement before its
approval by the Board.

Semi-annual reporting

Recommends and develops sustainability-linked
Key Performance Indicators (KPIs) as integral
components of the performance evaluation
scorecard for both the Board and senior
management.

Sustainability Working Group
Ensures that on-the-ground practices align withthe organisation's comprehensive sustainability
agenda and strategy.
Assists the Sustainability Committee in
implementing and monitoring sustainability
activities, evaluating performance against
established targets.
Gathers sustainability report and data from theWorking Group for presentation to the
Sustainability Committee.
Conducts the materiality assessment process.

Annual Report 2023

Our Approach to Sustainability (Cont’d)

1.

81

SUSTAINABILITY GOVERNANCE (CONT’D)
Note: The Sustainability Committee comprises C-suites, Country Heads and Heads of departments whereas
the Sustainability Working Group consists of country representatives and middle management of different
functions. For small geographical locations, finance managers are the sustainability representatives.

2.

STAKEHOLDER ENGAGEMENTAs set out in the Board Charter, the Board is responsible for promoting effective communications
with shareholders and relevant stakeholders.
INNITY is committed to provide shareholders, regulators, employees, customers and communities
with comprehensive, accurate and timely disclosure of information relating to the Group to gauge
the importance of key sustainability matters and for them to understand our actions and strategic
direction with greater clarity. Similarly, research on external standards, media reports and peerbenchmarking to understand the market practices akin to INNITY’s business would be beneficial
to the Company in curating a comprehensive a list of sustainability issues for comparison purposes.
The basis for selecting the most critical stakeholders is based on three factors namely, stakeholders’influence on our business, frequency of interactions and market reputation. The degree or level ofour dependency on our various stakeholders is based on their extent to further their interests inour business coupled with similar mutual community interests and aspirations.
Innity strives to maintain open lines of communication with our key stakeholder groups. To achievethis, we conduct regular engagements through formal and informal channels. Our shareholder
engagement process includes discussions on pertinent areas relevant to our stakeholders. These
engagements help us identify material issues, gain insights into emerging opportunities and risks,and respond more effectively to their needs.

Stakeholders
Investors &Shareholders

Sustainability Interest& Issues•

Business performance•Market conditions andfuture trends•

Business strategies andfuture plan•

Group’s overall
performance•

Good management
and corporate
governance•

Mitigation andadaptation to climatechangeEngagement Platforms

Response

As required• Company websites• Bursa announcements• Press interviews/
releases• Extraordinary General
Meetings• Analysts’ briefings•

Providing timely
updates on the Group’s
strategy and financial
performance throughinvestor briefings andannouncements•

Ensuring adherence
to good governancepractices throughout
the Group and its
supply chain•

Monitoring sustainability
performance andtargets closely

Quarterly• Quarterly reports
Annually• Annual reports• Annual General
Meetings

Innity Corporation Berhad82

2.

Our Approach to Sustainability (Cont’d)

STAKEHOLDER ENGAGEMENT (CONT’D)
Stakeholders

Sustainability Interest& Issues

Employees•

Communication &engagement•

Health & safety at theworkplace•

Working environment•

Career development
and upskilling

Engagement Platforms

Response

On-going• Internal
communications•

Foster transparent
communication channels
for employees

As required• Meeting andbrainstorming
sessions•

Ensure equal employment
opportunities, free fromdiscrimination•

Provide competitive
benefits and remuneration
packages in line withindustry standards•

Offer relevant upskilling anddevelopment opportunities•

Ensure compliance with the
Occupational Safety and
Health Act (“OSHA”) 1994•

Implement flexible work
arrangements to support
work-life balance•

Conduct regular reviews andmonitoring of therisk register, including
assessment of climaterelated risks•

Ensure full compliance withregulatory requirements•

Support government
initiatives aimed atsustainability and social
responsibility•

Adhere to the Personal
Data Protection Act
2010 and achieved ISO
27001:2013 Information
Security Management
Systems certification•

Adhere to quality standards
including Tag Brand
Safety Certified Program,
Tag Certified Against
Fraud Program and IAB
Transparency andConsent Framework.

•

Periodic engage withcustomers to introduce
new product and services•

Training anddevelopment•

Remuneration andbenefits••

Business strategic
direction

Breakout and teambuilding sessions•

Workshops andtrainings•

Employeeengagement
programmes andeventsAnnually• Appraisal andperformance reviews•
Government &Regulators•

Legal & Regulatory
Compliance

Town halls

On-going• Compliance of relevant
legal and regulatory
framework
As required• Participation ingovernment andregulatory events

Customers•

Regular updates on
product development

On-going• Regular dialogues•

Sustaining long-term
relationships••

High-quality products
and services
Customer experience

As required• Site visits to customer•

Consumer data
privacy•

Customer supportchannels

Public engagement
eventsAnnual Report 2023

Our Approach to Sustainability (Cont’d)

2.

STAKEHOLDER ENGAGEMENT (CONT’D)
Stakeholders
Community
and Society

Sustainability Interest& Issues

Engagement Platforms

Response•

On-going•

Engage in periodic dialogues
with local communities
and non-governmentalorganisations (NGOs) toaddress their concerns.

•

Seeking to invest in welfare
initiatives to enhancecommunity well-being.

As needed• Capacity development
Initiatives•

Enhance efficiency
through the digitalisation of
procurement processes.

Annually• Supplier assessment/•

Prioritise transparent
procurement processes.

••

Provide regular updates on
new initiatives to suppliers/
contractors to enhance theirskills.

•Ensure contractors’
compliance with the Group’s
Health and Safety policies,
Code of Conduct, andrelevant procedures.

•

Regularly engage
with media throughmainstream news andinformation channels.

•

Initiate/Participate incommunity activities•

Healthy andsustainable built
environment•

Suppliers

Media

3.

83

•

Efficient procurement
processes•

Transparency
in procurement
processes•

Capacity-building for
suppliers•

Maintaintransparency incommunicating
information andupdates regarding
business
performance andinitiatives, including
those related to
ESG and community
impact programs.

Initiate/participate
in conservation of
resources basedon 3R concept(i.e., reduce, reuse &recycle)Community programs

Performanceappraisals

As needed• Placement ofadvertorials•

Conducting media
briefings andproviding press kits•

Issuing media releases
and participating ininterviews

MATERIAL MATTERS
A materiality assessment by way of survey to identify and assess material economic, social andgovernance issues that will impact on the long-term sustainability of the Group was carried out.
Innity is cognisant of the fact that material issues can directly and indirectly impact its ability tocreate long-term value for its stakeholders. A full-scale materiality assessment was conducted in
2022 involving our key internal and external stakeholders to ensure that their interests and concerns
are addressed. Our material matters influence our business strategy and decision on allocationof resources to material sustainability issues. We undertake an annual review of the relevance ofour previously prioritised economic, environment, social and governance impacts arising from ourday-to-day activities.

Innity Corporation Berhad

Our Approach to Sustainability (Cont’d)

84

MATERIAL MATTERS (CONT’D)
The identified economic, social and governance issues, based on their importance to the Group’sbusiness, were classified under three (3) pillars of Bursa Malaysia Sustainability Reporting Guide
relating to ESG.
2022•

Conducted a full materiality assessment withinternal stakeholders and all key external
stakeholder.

•

Our ESG Framework prioritises best practices
consistent with Rule 90 of Appendix 9C of
the ACE Market Listing Requirements of Bursa
Securities.

•

Resulted in identifying 5 keys stakeholders and9 relevant material matters being prioritised.
The outcome of the process was reviewed by
our Sustainability Committee and endorsed by
the Board.

2023•

Reviewed 2022 materiality matrix and list of keys
stakeholders. This was done via focus groupsessions with 2 external stakeholders’ group (i.e.,
Suppliers and Media).

•

In addition to Proposed Bursa Malaysia’s
Illustrative Sustainability Reporting was also
considered for sector specific material matters.

•

Resulted in two new material matters being
prioritised (i.e., Emission Management andWaste Management).

In the current year, following a focused materiality review, we have finalised the assessment ofour 11 existing material matters. These matters are in line with Innity’s strategic priorities andstakeholder expectations. Our evaluation involved benchmarking against both local and regional
peers, considering emerging risks, and referencing relevant frameworks.
Although the material matters have remained consistent, the materiality review process led to
the repositioning of two additional concerns: emission management and waste management.
This adjustment reflects our commitment to addressing environmental impact and aligning withour carbon management strategy. Specifically, the material matter for emission management
now enhances “Climate Change”.

Innity’s Materiality Matrix

External Stakeholder

High

2022

2023

High
materiality

Low / Medium
materiality

Low

3.

Low

High

Annual Report 2023

Our Approach to Sustainability (Cont’d)

3.

85

MATERIAL MATTERS (CONT’D)
Innity’s Materiality Matrix (Cont’d)Internal Stakeholder
Energy Management

Labour Practices and Standards

Water Management

Supply Chain Management

Community & Society

Data Privacy and Security

Diversity & Inclusion

Anti-bribery & Anti-corruption

Employee Health & Safety and Wellbeing

Waste Management
Climate Change

Note:
The Illustration showed an overall increase in the importance material matters from 2022’s materiality
assessment.
Our updated Materiality Matrix underscores our emphasis on key issues that serve as the foundation of thisreport, while the corresponding indicators enable us to monitor and evaluate our sustainability performance.

4.

RISK MANAGEMENT
Innity Enterprise Risk Management (“ERM”) framework has integrated sustainability and climateremated risks in addition to our corporate financial and operational risks. We ensure all identified
risks stay within our risk appetite through revision and monitoring by designated risk owners andfurther deliberate by the ARMC and SC.
Materiality

Risks

Opportunities

Anti-Bribery andCorruption
Page 90

Ineffective corporate governancepractices have the potential to damage
Innity’s reputation and image.

Adopting effective corporate governancepractices contributes to enhancing
Innity’s reputation as a trustworthy
company among stakeholders.

Data Privacy andSecurity
Page 93

Potential cyber threats, such as thebreach of customers’ data, can result inthe loss of customer trust and harm tothe company’s reputation.

Implementing robust cybersecurity
measures and enhancing data
management practices are essential
to protect critical customer data andmaintain trust in Innity.

Employee, Health
Safety andWellbeing
Page 91

Workplace accidents and injuries not only A strong safety culture, coupled withlead to productivity loss but also carrya conducive working environment,
legal repercussions, including penalties
enhances employee well-being,
and potential reputational damage.
productivity, and contributes toDisengaged and underdeveloped
maintaining Innity’s reputation.
employees can result in decreased
Implementing effective upskilling
productivity and performance.
programs is crucial for retaining andfostering a high-performance culture.

Labour Practices
and Standards
Page 98

Violations in labour rights practices
can result in regulatory penalties,
negatively impact employee retention
and organisational culture, and harm
reputation.

By advocating good labour rights
practices, Innity reinforces its reputation
as a responsible employer.

Innity Corporation Berhad

86

4.

Our Approach to Sustainability (Cont’d)

RISK MANAGEMENT (CONT’D)
Innity Enterprise Risk Management (“ERM”) framework has integrated sustainability and climateremated risks in addition to our corporate financial and operational risks. We ensure all identified
risks stay within our risk appetite through revision and monitoring by designated risk owners andfurther deliberate by the ARMC and SC. (Cont’d)5.

Materiality

Risks

Opportunities

Community andSociety
Page 99

Business activities that have adverse
effects on communities can impact
Innity’s social license to operate.

Engaging in regular community impact
initiatives serves to strengthen our
relationship and goodwill with local
communities.

Supply Chain
Management
Page 97

Noncompliance by suppliers andcontractors with Innity’s ethicalprinciples and safety culture poses therisk of operational disruptions.

Implementing sound procurement
governance is crucial in attracting andretaining credible and skilled suppliersand contractors. Regular supplierassessments, including environmental
and social evaluations, uphold Innity’scommitment to our ESG goals.

Diversity andInclusion
Page 94

Employment and work culture practices
that incline towards discrimination canharm Innity’s reputation.

Cultivating an inclusive, diverse, equal
opportunity and empowering our staff
in our work culture not only attracts
talent but also introduces a variety ofperspectives that enhance the quality ofof our human capital.

Water Management
Page 101

Inefficient water management
results in increased operational andenvironmental costs and disrupts thepotential scarcity of water resources.

Implementing efficient water
management practices can help reduce
operational costs and foster water
conservation behavior.

EnergyManagement
Page 100

Ineffective energy management
results in increased operational &environmental costs and disrupt
potential scarcity of energy resources.

Implementing efficient energy
management practices can help reduce
operational costs and promote energy
conservation behavior.

Waste Management
Page 103

Failure to comply with environmental
regulations leads to consequencesfrom authorities and activists.

Implementing waste reduction
and increased resource efficiency
measures can lead to cost savings for
operations and promote reduction ofcarbon footprint and conserving theenvironment.

EmissionManagement
Page 104

Insufficient climate adaptation andmitigation can lead to damage
to environment, financial loss, andbusiness disruption.

Establish a secure position in the lowcarbon solutions market to capitalise on
the increasing demand for low-carbon
products and services.

SUSTAINABILITY FRAMEWORKINNITY’s sustainability Framework not only extends to the online products of its business top-line
growth and also its long-term vision of the sustainability agenda to be an ecosystem that includes
its entire value chain of stakeholders i.e. advertisers, publishers, suppliers and business partners –as “we are only as strong as our whole value chain.”Annual Report 2023

Our Approach to Sustainability (Cont’d)

5.

87

SUSTAINABILITY FRAMEWORK (CONT’D)
Through our framework, we aspire to meet the needs of our stakeholders, reduce our environmental
impact as well as contribute positively to the local communities where we operate. It outlines our
focus areas which are: Delivering Excellence, Responsible Supply Chain, Empowering Our People
and the Community, and Caring for the Environment. We aim to deliver the objectives undereach focus area by addressing the concerns related to each of our material matters. Accordingly,
we have set targets to enable us to accelerate and monitor our sustainability performance.
By linking these targets to a performance scorecard, we are able to track our progress and ensurethat we are making continuous improvements towards these targets.

Our vision: To provide sustainable, innovative and data-driven strategies impelled by technology which
creates meaningful connections and drive growth.

Our mission: To develop sustainable digital marketing solutions with cutting-edge technology, customised
campaigns and measurable results while minimising out impact on the environment and delivering positive
impact that benefits our community.

Our Focus Areas
Ethical Governance
Adhering to business principles
while upholding transparency
and accountability

Sustainable
Economic

Socialand Community

Develop mutually beneficial
relations together with ensuring
ethical and environmental
standards are met
throughout our supply
chain

Fostering safe working
environment,
diverse culture,and supporting local
community

Supply Chain
Management

Employee, Health Safety
and Wellbeing

Water Management

Labour Practices andStandards

Energy Management

Community and Society

Waste Management

Diversity and Inclusion

Emissions Management

Data Privacy and Security

Anti-Bribery &Anti-Corruption

Environment
Seek efficient management on
reducing carbon
footprint and minimising
environmental impacts

In alignment to :GenderEquality

Affordable andClean Energy

Good Healthand Well Being

Decent Workand Economic
GrowthIndustry,
Innovation andInfrastructure

ReducedInequalities

Sustainable
Cities andCommunities

Responsible
Consumption
and Production

ClimateActionPeace, Justiceand Strong
Institutions

Clean Waterand Sanitation

Legend: progress tracking
On track to meeting set targets
Falling short on meeting target for one year, review current practices
Falling short on meeting target for more than 2 years, review and revise targets (if necessary)

Quality
Education

Innity Corporation Berhad

88

6.

Our Approach to Sustainability (Cont’d)

PERFORMANCE SCORECARD
Below are our key targets and progress to date:

Focus Areas

Material Matters

Targets

Sustainable
Economic

Supply Chain
Management

Maintain spending on
local publishers >80%

Data Privacy andSecurity

Maintain Information andData Security Certification

Anti-Bribery &Anti-Corruption

Monitor and maintain
Zero incidence on
corruption activity

Employee, Health
Safety andWellbeing

Maintain zero incidents inthe company

Ethical GovernanceLabour Practices
and Standards

Achieve a 5% increase inemployee retention by theyear 2026.

Community andSociety

Increase participation on
CSR related activity to thesociety year-by-year

Diversity andInclusion

Maintain the proportion
30% of leadership roles
are held by women at the
management level

Water Management

Maintaining water
consumption

Social & Community

Environment

Current progress against
targets

Achieved spending of 83% in
Y2023.

Sustained Certification for
Information and Data Securityin Y2023.(ISO 27001)

There were no reported casesof corruption activity in the year
2023.

There was no incident
happened in the year 2023.
In Y2023, the group recorded
a turnover rate of 32%. We
have proactively identified
the issues and taken steps toenhance both the percentageof retention.

Only one CSR activity took
place in 2023. In 2024, theGroup will implement several
measures to enhance theeffectiveness of our CSR
initiatives.

The Group has adjusted its
target to ensure that more than
30% of leadership roles are held
by women at the managementlevel.

After numerous
communications with theoffice management, wehave included the water
consumption data for our
Singapore operations in ourreporting.

Annual Report 2023

Our Approach to Sustainability (Cont’d)

6.

89

PERFORMANCE SCORECARD (CONT’D)
Below are our key targets and progress to date: (Cont’d)

Focus Areas

Material Matters

EnergyManagement

Environment(Cont’d)Waste Management

Emissionsmanagement

Targets

Maintaining energy
consumption

Current progress against
targets

In 2023, the group incurred
164,310 kWh of energy usage,
primarily due to the utilisationof a new office and extended
working hours. We remaincommitted to monitoring ourenergy consumption closelyand exploring avenues for
reducing it further.

Monitor waste
management

In 2023, the group-initiatedwaste management protocols,
with a focus on laptop andmonitor. Moving forward, weplan to expand our efforts toinclude other tangible productsthat have the most significant
impact on our group’s
operations.

Monitor and maintain CO2Emission

In 2023, the group began
calculating emissions
associated with our virtual
machine (VM) services within
our business value chain,focusing on scope 3 emissions.
Moving forward, we aim tofurther intensify our efforts in
reducing the scope 1 and scope
2 emissions occurring in ourbusiness operations.

Legend: progress tracking
On track to meeting set targets
Falling short on meeting target for one year, review current practices
Falling short on meeting target for more than 2 years, review and revise targets (if necessary)Innity Corporation Berhad

90

1.

MANAGEMENT APPROACH FOR
MATERIAL MATTERS

ANTI-CORRUPTION & BRIBERY

Related UNSDGs:

Peace, Justiceand Strong
Institutions

At Innity, we are unwavering in our commitments to maintain the highest standards of businessethics and compliance. Rooted in our core values of Integrity, Transparency and Excellence,
our stance against corruption is resolute. This commitment is vital in safeguarding the integrity of
our operations and protecting the interests of both our business and stakeholders.

Our Approach
The Board and senior management remain committed to conducting business with fairness,honesty, respect and trust, guided by our Business Code of Conduct (“BCOC”). The BCOC
communicates Innity’s fundamental principles and guidelines to all employees. New employees
are required to sign a statement indicating that they have read, understand, and will comply with
the Code of Conduct. Employees are periodically asked to reaffirm their compliance with the Codeof Conduct.
The Group’s zero-tolerance stance against corruption is outlined in our Anti-Bribery and Corruption(“ABC”) Policy, which is regularly reviewed to ensure alignment with the Malaysian Anti-Corruption
Commission (“MACC”) Act 2009.
Every new team member embarks on a comprehensive induction program designed to familiarise
them with Group’s BCOC, ABC policy and other pertinent policies and procedures. Employees
are required to undergo annual mandatory briefing and acknowledgement, affirming theircomprehensive understanding of these essential policies and procedures.
In line with our commitment to ethical business practice, our suppliers are held to the samehigh standards. All suppliers are obligated to sign a declaration, confirming their commitment toethical conduct and compliance with the guidelines and policies set forth by Innity in all businessinteractions.
To further reinforce our dedication, Innity has established a dedicated whistleblowing channel
under Whistleblowing policy. This channel provides a confidential means for both employees andexternal stakeholders to report any improprieties through email.
To ensure accessibility and transparency, our BCOC, ABC, and Whistleblowing Policy are readily
available on out corporate website. This strategic placement underscores our commitment toproviding all stakeholders with easy access to our guiding principles and policies, fostering acollective responsibility for upholding integrity and ethical behaviour.

Annual Report 2023

Management Approach for Material Matters(Cont’d)1.

91

ANTI-CORRUPTION & BRIBERY (CONT’D)
Our Performance
Corruption-Related Training
In 2023, we initiated anti-corruption training for our employees and implemented an annual
acknowledgment process to ensure their understanding and compliance. Our goal is to have all
employees complete the acknowledgment annually, setting it as a yearly target.

Percentage of employees completed and acknowledge training

2022

2023

-

52%

Corruption Incidents
As of 31st December 2023, we recorded zero incidents of corruption across Innity’s business
operations.

Number of confirmed corruption incidents

2.

2022

2023

0

0

EMPLOYEE HEALTH, SAFETY AND WELLBEING

Good Healthand Well Being

Related UNSDGs:

Decent Workand Economic
GrowthThe well-being and safety of our employees and contractors take precedence in all our business
operations and workplaces. Through the maintenance of a healthy, safe, and conducive work
environment, our goal is to proactively mitigate the risk of injuries and illnesses for all individuals
within our premises. This commitment not only promotes the welfare of our team but also contributes
to heightened efficiency and enhanced productivity.

Our Approach
Our Group Health and Safety Policy outlines how our business operations are conducted ina safe manner, through the implementation of various measures and controls by all levels of
our workforce. Throughout analysing the workplace, we implement specific risk management
processes, including the design to identify hazards, lower risks, and improve health and safety
management for all existing and potential areas. We foster a reporting culture where workers
can report incidents without fear of reprisal. An incident reporting line has been established tocommunicate information for management’s attention.

Innity Corporation Berhad

92

2.

Management Approach for Material Matters(Cont’d)

EMPLOYEE HEALTH, SAFETY AND WELLBEING (CONT’D)
Our Approach (Cont’d)Prioritising employees’ health & well-being, we continue to adopt flexible working arrangements
i.e. hybrid work mode & flexi working hour post-pandemic to reduce the risk of infections whilesaving precious time on daily commute and lowering our carbon footprint.
Our employee benefits will include both core and flexible benefits that serve to support thewell-being and unique needs of Innity employees. Core benefits include insurance coverage for
medical, life and personal accident. Flexible benefit plan to be provided to all employees can beutilised for additional lifestyle, health & wellness products and services.
At Innity, we offer medical care to our employees. Additionally, we provide health and safety
training at the point of recruitment, on-the-job, and regular refresher training to employees. Our
training programmes include both knowledge-based and skills-based training, covering topics
such as emergency response, hazard and risk management. These programmes are reviewed ona regular basis to ensure their relevance.

Our Performance
Health and Safety Trainings
We began implementing training on health and safety standards in the second half of 2023
following the publication of Bursa’s illustrative sustainability report. In 2023, we observed thepercentage of participants who underwent training and acknowledgment on health and safety
standards.
Our aim is to increase the participation of internal employees in these initiatives.

Percentage of employees trained on health and safety standards

2022

2023

-

39%

Work-Related Injuries
Innity is dedicated to the paramount objective of ensuring the safe return of all workers at the endof each day. This commitment propels our continuous efforts to achieve zero fatalities annually
through the proactive prevention and minimisation of workplace incidents.
2022

2023

Number of work-related fatalities

00

Number of Lost Time Incident Rate (LTIR)00Annual Report 2023

Management Approach for Material Matters(Cont’d)3.

93

DATA PRIVACY AND SECURITY

Related UNSDGs:

Peace, Justiceand Strong
Institutions

Over the past few years, we’ve witnessed the rapid advancement of trends in remote work,
e-commerce, and automation, driving the widespread adoption of digital technologies andinfrastructure. Nevertheless, this surge has also heightened the vulnerability of data to cybersecurity
risks. Therefore, it is incumbent upon us to proactively address the increasing menace ofcyber-attacks on Innity, ensuring the safeguarding of our customers’ sensitive information to avert
any potential leaks, threats, or loss of customer data.

Our Approach
The organisation consistently enhances its cybersecurity protocols by strictly adhering to our Data
Privacy Policy, which has been developed in accordance with the Personal Data Protection Act(“PDPA”) 2010 and aligns with the ISO 27001 Information Security framework. Our cybersecurity
framework, deeply integrated into our operations and processes, aligns with regulatory
requirements across the regions in which we operate. Furthermore, we have strengthened ourmanagement efforts by obtaining ISO 27001:2013 Information Security Management Systems
certification.
To ensure the effectiveness of our data privacy and security controls, we conduct regular reviews.
We employ lawful means in data collection, prioritise transparency in data gathering, usage,
and security, and obtain necessary consent when handling customer data, ensuring that only
authorised personnel have access. Regular reviews of user access and activities are conductedto prevent unauthorised access or misuse of authority. Our data retention and destruction policy
guides us in responsibly managing data throughout its lifecycle.
In 2023, various cybersecurity measures were implemented, including network penetration tests
conducted by our specialists to identify and address vulnerabilities. Employee education on dataprotection and privacy remains a priority, with mandatory annual online training covering their
responsibility to safeguard data. Additionally, phishing email simulation exercises are regularly
conducted to enhance employees’ ability to identify and respond to such emails.

Our Performance
Information Security Trainings
We initiated the implementation of training on Information Security Standards in the latter partof 2023, prompted by the release of Bursa’s illustrative sustainability report. We monitored thepercentage of participants who completed training and acknowledged Information Security
Standards.

Innity Corporation Berhad

94

3.

Management Approach for Material Matters(Cont’d)

DATA PRIVACY AND SECURITY (CONT’D)
Our Performance (Cont’d)Information Security Trainings (Cont’d)
Our goal is to enhance the involvement of internal employees in these endeavours.

Percentage of employees trained on Information Security Standards

2022

2023

-

40%

As of 31st December 2023, there were zero substantiated complaints concerning breaches incustomer privacy or data loss.

Number of substantiated complaints concerning breaches
in customer privacy or data loss

4.

2022

2023

0

0

DIVERSITY, EQUITY & INCLUSION

GenderEquality

Related UNSDGs:

Decent Workand Economic
GrowthEmbracing diversity and fostering inclusivity in the workplace provides us with a competitive
advantage by enabling us to accumulate and leverage a broad spectrum of knowledge, perspectives,and ideas. In alignment with this principle, we are dedicated to championing equal employment
opportunities and preventing discrimination.

Our Approach
We champion equal rights and inclusivity for all our employees and stakeholders, striving tocultivate a fair and equitable working environment across our organisation.
Our Business Code of Conduct & Diversity Policy unequivocally prohibits all forms of discrimination.
We adhere to a hiring and promotion process that disregards race, colour, religion, national origin,gender, sexual orientation, marital status, age, disability, or any other protected category under thelaw. We make accommodations for employees’ disabilities or religious beliefs whenever feasible,
fostering a workplace that prioritises safety, security, and productivity.

Annual Report 2023

Management Approach for Material Matters(Cont’d)4.

95

DIVERSITY, EQUITY & INCLUSION (CONT’D)
Our Approach (Cont’d)Our commitment to diversity and inclusion is deeply ingrained in our company culture, reflecting
one of Innity’s core values: “Teamwork.” We recognise that a diverse workforce brings a breadthof perspectives that enhances our ability to adapt to evolving market dynamics. Embracing
different viewpoints fosters creativity and innovation within our teams. By assembling inclusive
teams comprising diverse individuals, we harness our disparities & turning them as assets for thecompany.
Our employment terms and working conditions are not influenced by any collective bargaining
agreements, ensuring that fairness and equality prevail throughout our organisation.
Reporting the numbers as an average across the reporting period takes into account thefluctuations during the reporting period.

Our Performance
Board Diversity by Gender
18%

18%

82%

82%

2023

2022

Male

FemaleBoard Diversity by Gender

64%

64%

36%

36%
2023

Under 302022
Between 30-50

Above 50

Workforce Profile
Gendar Diversity

Age Diversity

59%

60%

41%

40%
2023

Gender

2%

50%

53%

48%

45%

2022
Male

2023

FemaleUnder 30

Ethnic Diversity
33%

6%
2%

7%
1%

58%

59%
2023

Malay

Between 30-50

Above 50

7%

6%

93%

94%

2023

2022
Indian2022

Employee Composition

33%

Chinese3%

OthersPermanent

2022
TemporaryInnity Corporation BerhadManagement Approach for Material Matters(Cont’d)96

4.

DIVERSITY, EQUITY & INCLUSION (CONT’D)
Gender Diversity by Employee Category
Management

Executive

59%

63%

39%

38%

41%

37%

61%

62%

2022

2023

Female

Male

2022

2023

FemaleGeneralMale

Non-Executive

100%

44%

48%

56%

52%

100%

2022

2023

Female

Male

2022

2023

FemaleMale

Age Diversity by Employee Category
Management

Executive

17%

22%

83%

78%

2023
Under 30

1%

1%

48%

53%

51%

47%
2023

2022
Between 30-50

Above 50

Under 30

GeneralBetween 30-50

Above 50

Non-Executive

100%

22%

22%

78%

78%

100%

2023
Under 30

2022

2023

2022
Between 30-50

Above 50

Under 302022
Between 30-50

Above 50

Annual Report 2023

Management Approach for Material Matters(Cont’d)5.

97

SUPPLY CHAIN MANAGEMENT

Related UNSDGs:

Decent Workand Economic
GrowthInnity is committed to advancing responsible procurement practices and fortifying the resilience of
our supply chain by integrating sustainability elements across our procurement lifecycle. Our strong
belief in supporting local businesses and fostering economic growth in the communities where weare present guides our actions.

Our Approach
We are dedicated to ensuring the fairness and transparency of our procurement practices tojudiciously award tenders to the most reputable suppliers. All suppliers, whether new or existing,must address a set of requirements that center on ethical business practices. Following assessment,
we categorise suppliers based on maturity, conduct annual performance reviews, and consider
internal risk mitigation factors. Moving forward, adherence to Innity’s ethical business practices,encompassing zero corruption, minimising environmental impact, and safeguarding employee andworker rights, is mandatory for all our suppliers.
Recognising our operational needs, we prioritise the procurement of products and services fromlocal suppliers to the best extent possible.

Local Suppliers
In 2023, 83% was spent on local suppliers.
The decrease in spending from local suppliers is attributed to a decrease in spending from one
subsidiary, while another subsidiary has seen an increase in spending on non-local suppliers.

Proportion of spending on local suppliers

6.

2022

2023

87%

83%

LABOUR PRACTICES AND STANDARDS

Related UNSDGs:

Decent Workand Economic
GrowthAs a conscientious organisation, Innity is dedicated to safeguarding and honouring labour rights
throughout all our business operations. We are convinced that robust labour rights practices,
combined with fair and ethical treatment, enhance productivity and foster a healthy working culture.

Innity Corporation Berhad

98

6.

Management Approach for Material Matters(Cont’d)

LABOUR PRACTICES AND STANDARDS (CONT’D)
Our Approach
Innity is unwavering in its commitment to upholding labour rights principles across all facets of
our operations. Our dedication to sustainability extends beyond environmental stewardship toencompass the advancement and safeguarding of labour rights.
We uphold labour rights standards through robust human resources policies and practices,
subjecting them to regular review to ensure ongoing compliance and respect for human andlabour rights. Our objective is to meet the obligations incumbent upon a responsible corporate
entity.
Within our organisation, we prioritise the protection of workplace rights, adhering to all pertinent
employment laws, labour standards, and local regulations. We promote fair treatment, nondiscrimination, and the provision of a safe working environment for our diverse workforce.
By nurturing a culture of respect and inclusion, we empower employees to voice concerns,
contribute ideas, and flourish in an environment that values their rights and dignity.
Innity meticulously adheres to all relevant labor laws, including those governing minimum
wages and benefits mandated by legislation. Our employment policies are clearly outlined in our
Employee Handbook, readily accessible to all employees through our HR Platform portal. Throughthese channels, we underscore our commitment to equity, diversity, inclusion, and transparency.
Regular reviews and benchmarking against industry standards ensure that our employeecompensation packages remain competitive and aligned with prevailing market norms.

Our Performance
The percentage outlined below corresponds to the reporting scope mentioned above, indicating
a turnover rate of 31% for the year 2022. Additionally, for the year 2023, a turnover rate of 32% wasrecorded.
In Innity’s operation, employees are regarded as our most valuable asset for sustaining andgrowing the business. We are committed to continuously monitoring and enhancing employee
wellbeing within the company.

Percentage of turnover for full-time staff

2022

2023

31%

32%

Annual Report 2023

Management Approach for Material Matters(Cont’d)

7.

99

COMMUNITY AND SOCIETY

Quality
Education

Related UNSDGs:

Innity is dedicated to fostering positive relationships between businesses and communities,emphasising social inclusion and long-term positive outcomes. Through community engagement
and impactful programs, particularly in education and social welfare, Innity strives to be a responsible
corporate citizen, investing in local talent to provide opportunities for personal growth.

Our Approach
Innity showcases its commitment to local communities by implementing campaigns that raiseawareness and address environmental sustainability and positive social impact. The following
highlights our efforts to generate mutually beneficial outcomes for both the Group and thecommunity through aligned community programs in the current year.
Passionation teamed up with Upcycled by Fuze Ecoteer to help drive awareness and educate
Passionatives about plastic recycling and upcycling. 6 Passionatives participated in the workshop
by Upcycled where they learned how to create their own plant pot using recycled bottle caps. Afterthe workshop, the Key Opinion Leaders created and shared their videos on Instagram to further
help bring awareness to Upcycled’s mission and their many ongoing eco initiatives.

Our Performance
Key highlights of Innity’s contributions for year 2023 are as follows:
Community Performance Data
2022

2023
Followers: 33,200+

Total number of positive impacts towards the community

25X Gift

Views: 6650+
Engagement rate:
1.06%

Innity Corporation Berhad

100

8.

Management Approach for Material Matters(Cont’d)

ENERGY MANAGEMENT

Related UNSDGs:

Sustainable
Cities andCommunities

Responsible
Consumption
and Production

ClimateActionInnity recognises the pivotal role that energy management plays in safeguarding our planet.
Understanding the environmental implications of energy consumption, we acknowledge theresponsibility to implement sustainable practices that contribute to the preservation of Earth. Byprioritising efficient energy management strategies, we aim to minimise our carbon footprint, reduce
environmental impact, and actively participate in the global efforts to combat climate change.

Our Approach
Innity seeks to diminish our environmental impact and build operational resilience with the goalof providing sustained value to our business, stakeholders, and communities in the long term.
Our actions are directed by our Environmental Policy, which articulates the Group’s commitment
to efficiently manage and mitigate the effects stemming from our business operations.

Managing Operation Efficiency
Innity commits to conserve resource on day-to-day operations
We have paved the way for the adoption of the following initiatives:
Key Initiative

Description

Office Buildings

We have installed energy-saving LED lighting in our
offices.

Flexible Working Schedule

We implemented flexible working days to reduceenergy consumption of office spaces.

Energy Audit

We regularly conduct energy audits to identify areasof improvement and implement energy-saving
measures.

Our Performance
Energy consumption
We have set a goal to maintain energy consumption levels, but by 2023, we observed an increasein energy consumption compared to our 2022 baseline.
The discrepancy arose from the office renovation and relocation in the Philippines and DM(DoMedia Asia Sdn Bhd) operations, which occurred from mid-2022 to early 2023. During thisperiod, data collection was not conducted as the office operated in a shared environment.

Annual Report 2023

Management Approach for Material Matters(Cont’d)

8.

101

ENERGY MANAGEMENT (CONT’D)
Our Performance (Cont’d)Energy consumption (Cont’d)
We will continue in monitoring energy consumption and advocating for reduction initiatives
within the company.

Total Energy Consumption by Year (kWh)106,535

164,310

2022

2023

180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,000
0

9.

WATER MANAGEMENT

Clean Waterand Sanitation

Related UNSDGs:

Responsible
Consumption
and Production

The issue of water scarcity is becoming increasingly alarming due to several factors, such as climatechange, poor water management, and contamination. The Group is committed to mitigating therisk of water shortages through efficient water management across our operations.

Our Approach
As a Group, we aim to improve water efficiency and promote water conservation.

Innity Corporation BerhadManagement Approach for Material Matters(Cont’d)102

9.

WATER MANAGEMENT (CONT’D)
Our Approach (Cont’d)
We are committed to implementing water conservation initiatives on proper water management
at all our premises. These initiatives include:i.

Increase Employee Awareness: Educate employees about the importance of water
conservation and encourage them to be mindful of water usage in their daily activities.

ii.

Maintenance: Regularly inspect and promptly fix any leaks in plumbing or water fixtures
within the office. Leaks can contribute to significant water wastage over time.

iii.

Efficient Appliances: Choose water-efficient appliances, such as dishwashers and coffee
makers, in office kitchens and break areas.

iv.

Metering and Monitoring: Implement water metering and monitoring systems to trackwater usage patterns and identify areas for improvement.

v.

Flexible Work Policies: If applicable, consider implementing remote work policies, reducing
the need for on-site facilities and amenities that may contribute to water consumption.

We will annually review our water management plans across all our operations to continually
increase efficiency and ensure we are able to achieve our water consumption reduction targets.

Our Performance
In Year 2022 data, Vietnam and Singapore operation’s water bill is integrated and calculated
together with the rental. After discussing with the building management, we successfully obtain
the water usage for the Singapore office from July 2023- December 2023. For Vietnam operation
however, the building management does not have the service to breakdown the water usage withthe office rental. The decrease in water consumption can also be attributed to the operations in
the Philippines during the shared office environment while undergoing office renovations.
As the business returns to normalcy, with more employees returning to the office in which increasein water consumption.
Innity primarily uses water for office purposes. Nevertheless, we remain committed to monitoringand minimising unnecessary usage wherever possible.

Total Water Consumption by Year (cu.m)

Total Water Consumption by Year
Singapore & Philippines (cu.m)

1000
829
800

60

600

5

40

410
400

20

200

0

40

31

2022

2023

0
2022

2023

Singapore

Philippines

Annual Report 2023

Management Approach for Material Matters(Cont’d)

10.

103

WASTE MANAGEMENTClimateActionRelated UNSDGs:

Responsible
Consumption
and Production

At Innity, our foremost priority is effective waste management to diminish our environmental
footprint and contribute to the well-being of nearby communities, particularly concerning ourdigital marketing endeavours. Acknowledging the gravity of potential impacts, it is crucial for us toenact proactive measures to guarantee responsible waste management practices throughout all
our operations.

Our Approach
Our strategies delineate the means to minimise waste by decreasing the materials utilised in ouroperations, embracing the 3R approach—reduce, reuse, and recycle—and enhancing employee
awareness regarding the importance of sustainable waste management. Furthermore, we ensurethat all scheduled waste undergoes proper storage and management, from its collection point to
final disposal, facilitated by licensed contractors.
Initiatives have been instituted to heighten employee awareness, aiming to diminish waste
generation.
Key Initiative

Description

Digital

We have adopted electronic leave and attendancesystem for leave applications and promote theadoption of digital documents to reduce reliance on
paper.

E-Waste Recycling

We support the recycling of electronic devices andwill seek collaboration opportunities with thirdparty waste management entities to advancerecycling initiatives.

Segregation of Non-recyclable andRecyclable Waste

Implementing a waste segregation program toseparate recyclable and non-recyclable materials,
promoting responsible disposal practices andenvironmental stewardship.

Product Selection

We enhance material selection and product designby prioritising longevity and durability, repairability,
modularity, disassembly, and recyclability.

Innity Corporation Berhad

104

10.

Management Approach for Material Matters(Cont’d)

WASTE MANAGEMENT (CONT’D)
Our Performance
In 2023, Innity identified a total of 15 waste items attributed to laptops and monitors, all of whichwere recycled with a 100% recycling rate.
We strive to actively engage and involve all relevant stakeholders to address any existing
coordination gaps and implement innovative solutions, wherever feasible, to advance sustainablewaste management practices across the Group.
Upon completion of data collection for all our operations, we will establish specific targets for
reducing our waste usage.

Waste Generated (Number)
150

Waste Diverted from
disposal

Waste Directed todisposal

16
14
12
10
8
6
4
2
0

11.

2023

EMISSION MANAGEMENT

Related UNSDGs:

Sustainable
Cities andCommunities

Responsible
Consumption
and Production

ClimateActionIn Innity, we recognise the critical importance of emission management in our commitment toenvironmental sustainability. As a responsible corporate entity, we strive to proactively address
our carbon footprint by implementing robust emission management strategies. By embracing
innovative solutions and engaging our stakeholders, we aim to not only reduce our environmental
impact but also contribute to a greener and more sustainable future.

Annual Report 2023

Management Approach for Material Matters(Cont’d)

11.

105

EMISSION MANAGEMENT (CONT’D)
Our Approach
In our pursuit of environmental responsibility at our digital marketing company, we adopt a
multi-faceted approach to manage carbon emissions effectively.
Initiatives have been instituted to heighten employee awareness, aiming to diminish waste
generation.
Key Initiative

Description

Renewable Energy Integration

Innity is prioritising the integration of renewableenergy sources which involves exploring solar andwind power to create carbon offsets. We aim to
cut carbon emissions and contribute to a cleaner,greener environment.

Meeting and Communication

Virtual meetings and video conferencing amongst
employees working at home and for our regularcommunication with overseas business units andbusiness associates.

Remote Work Practices

Embracing flexible work arrangements by reducing
the need for daily commutes and on-site operations,in which also significantly decrease our carbon
footprint associated with transportation. (Scope 2
emissions)

Carbon Emissions Performance
We have initiated the tracking and monitoring of our Scope 3 emissions, focusing specifically on
emissions associated with our virtual machine (VM) services within our business value chain. We
have successfully obtained emissions data from 2 out of 5 cloud hosting vendors, namely Alibaba
Cloud and AWS Cloud. Efforts to collect emissions data from the remaining providers, including
IBM Cloud, Digital Ocean, and Huawei, are ongoing.
The data collection period spans from January 2023 to November 2023.
Upon completion of data collection for all our operations, we will establish specific targets for
reducing our Scope 3 emissions.
TNB has released the grid emission factor for calculating Scope 1 energy emissions in Malaysia’s
operations. However, there has been a delay in obtaining this information. Rest assured, we willpromptly update the relevant data once it becomes available from TNB’s sources.
In 2024, we will be collaborating closely with a consultant to develop a framework for calculating
Scope 1 CO2 emission and Scope 2 CO2 emission.

Innity Corporation BerhadManagement Approach for Material Matters(Cont’d)106

11.

EMISSION MANAGEMENT (CONT’D)
Our Approach (Cont’d)
Carbon Emissions Performance (Cont’d)
In the current reporting period, these emissions totalled 0.02 Gg CO2-e.

Total Emissions by Scope (GgCO2-e)
Total Emission by VM (%)

0.02
Alibaba CloudAWS Cloud47%

53%

Scope 1

Scope 2

Scope 3

2022

0

0

0

2023

0

0

0.02

IBM Cloud
Digital Ocean
Huawei

2022

12.

2023

PERFORMANCE DATA TABLE
Indicator

Unit

2022

2023

TargetAnti-Corruption
Percentage of employees
completed and acknowledge
training

Percentage-

52%

Confirmed incidentsof corruption and action taken

Number00

Zero incident annually

Health & Safety and Wellbeing
Percentage of employees
trained on health and safety
standards

Percentage-

39%

Number of work-related
fatalities

Number00

Number of Lost Time Incident
Rate (LTIR)

Number00

Zero fatality annually

Data Privacy and Security
Percentage of employees
trained on Information Security
Standards

Percentage-

40%

Number of substantiatedcomplaints concerning breaches
in customer privacy or data loss

Number00

Zero complaints
annuallyAnnual Report 2023

Management Approach for Material Matters(Cont’d)

12.

107

PERFORMANCE DATA TABLE (CONT’D)
Indicator

Unit

2022

2023

TargetDiversity and Inclusion
Percentage of directors by gender and age group
Male

Percentage

82%

82%

FemalePercentage

18%

18%

Under 30

Percentage--

Between 30-50

Percentage

36%

36%

Above 50

Percentage

64%

64%

Percentage of employees that are contractors or temporary staff
Gender Diversity - Male

Percentage

41%

40%

Gender diversity - Female

Percentage

59%

60%

Age diversity - Under 30

Percentage

48%

45%

Age diversity - Between 30-50

Percentage

50%

53%

Age diversity - Above 50

Percentage

3%2%Ethnic diversity - Bumiputera

Percentage

6%7%

Ethnic diversity - Chinese

Percentage

58%

59%

Ethnic diversity - Indian

Percentage

1%2%Ethnic diversity - Others

Percentage

33%

33%

Percentage of employees by gender and age group by employee category

Gender Group by Employee Category
Management - Male

Percentage

59%

63%

Management - Female

Percentage

41%

37%

Executive - Male

Percentage

39%

38%

Executive - Female

Percentage

61%

62%

Non-executive - Male

Percentage

44%

48%

Non-executive - Female

Percentage

56%

52%

General Workers - Male

Percentage--

General Workers - Female

Percentage

100%

100%

Age Group by Employee Category
Management - Under 30

Percentage--

Management - Between 30-50

Percentage

83%

78%

Management - Above 50

Percentage

17%

22%

Executive - Under 30

Percentage

51%

47%

Executive Between 30-50

Percentage

48%

53%

Executive Above 50

Percentage

1%1%Non-executive - Under 30

Percentage

78%

78%

Non-executive - Between 30-50

Percentage

22%

22%

Non-executive - Above 50

Percentage--

Innity Corporation Berhad

108

12.

Management Approach for Material Matters(Cont’d)PERFORMANCE DATA TABLE (CONT’D)
Indicator

Unit

2022

2023

TargetAge Group by Employee Category (Cont’d)General Workers - Under 30

Percentage--

General Workers - Between
30-50

Percentage

-

100%

General Workers - Above 50

Percentage

100%

-

Supply Chain Management
Proportion of spending on local
suppliers

Percentage

86%

83%

Maintain 80% on local
spending

Labour Practices and Standards
Percentage of turnover for fulltime staff

Percentage

31%

32%

Community and Society
Total number of positive
impacts towards thecommunity

Followers:
33,200+
Number

25X Gift

Views: 6650+
Engagement
rate: 1.06%

Energy Management
Total energy consumption

kwh

106,535

164,310

Water Management
Total volume of water used

Cu.m

410

829

Waste Management
Total waste diverted from
disposal

Number-15

Emission Management
Scope 3 emissions in tonnes of
CO2e

GgCO2-e-

0.02

The above results were assessed through internal documentation verification only.

Annual Report 2023

Management Approach for Material Matters(Cont’d)

13.

109

GRI CONTENT INDEX
Innity has reported in accordance with the GRI Standards for the period 1 January 2023 to 31
December 2023.
GRI Standard

Disclosure

Page Number

General Disclosures
GRI 2: General
Disclosures 2023

2-1

Organisational details

Annual report 2023

2-2

Entities included in the organisation’ssustainability reporting

Page 79

2-3

Reporting period, frequency and contact point

Page 79

2-4

Restatements of information

Page 79

2-5

External assurance

None

2-6

Activities, value chain and other business
relationships

Page 77 to page 78

2-7

Employees

Page 95 to page 96

2-8

Workers who are not employees

Page 95

2-9

Governance structure and composition

Annual report 2023

2-10

Nomination and selection of highest governancebody

Annual report 2023

2-11

Chair of highest governance body

Annual report 2023

2-12

Role of the highest governance body in overseeing
Annual report 2023
the management of impacts

2-13

Delegation of responsibility for managing impacts

Annual report 2023

2-14

Role of the highest governance body insustainability reporting

Page 80

2-15

Conflicts of interest

Annual report 2023

2-16

Communication of critical concerns

Annual report 2023

2-17Collective knowledge of the highest governancebody

Annual report 2023

2-18

Evaluation of the performance of the highest
governance body

Annual report 2023

2-19

Remuneration policies

Annual report 2023

2-20

Process to determine remuneration

Annual report 2023

2-21

Annual total compensation ratio

Annual report 2023

2-22Statement on sustainable development strategy

Page 86

2-23

Policy commitments

Page 902-24

Embedding policy commitments

Page 902-25

Processes to remediate negative impacts

Page 90

2-26

Mechanisms for seeking advice and raisingconcerns

Page 90, page 94

2-27

Compliance with laws and regulations

Page 902-28

Membership associations

Annual report 2023

Innity Corporation Berhad

110

13.

Management Approach for Material Matters(Cont’d)

GRI CONTENT INDEX (CONT’D)
Innity has reported in accordance with the GRI Standards for the period 1 January 2023 to 31
December 2023. (Cont’d)
GRI Standard

Disclosure

Page Number

General Disclosures (Cont’d)
GRI 2: General
Disclosures 2023
(Cont’d)2-29

Approach to stakeholder engagement

Page 812-30

Collective bargaining agreements

Page 94

3-1

Process to determine material topics

Page 83 to page 85

3-2

List of material topics

Page 83 to page 85

GRI 3: Material Topics
2021

3-3

Management of material topics

Page 90

GRI 205: Anti –Corruption 2016

205-2

Communication and training about anticorruption policies and procedures

Page 90, page 106

205-3

Confirmed incidents of corruption and actions
taken

Page 90, page 106

Material Topics
GRI 3: Material Topics
2021

Anti-corruption

Employee Health, Safety and Well-being
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 91

GRI 403: Occupational
Health and Safety 2018403-1

Occupational health and safety management
systemPage 91403-4

Worker participation, consultation andcommunication on occupational health and safety

Page 91403-5

Worker training on occupational health and safety

Page 91, page 106403-9

Work-related injuries

Page 91, page 106

Data Privacy and Security
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 93

GRI 418: Customer
Privacy 2016

418-1

Substantiate complaints concerning breaches ofcustomer privacy and losses of customer data

Page 93, page 106

Diversity, Equity & Inclusion
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 94

GRI 405: Diversity andEqual Opportunity
2016

405-1

Diversity of governance bodies and employees

Page 94, page 106

Supply Chain Management
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 97

GRI 204: Procurement
Practices 2016

204-1

Proportion of spending on local suppliers

Page 97, page 106

Annual Report 2023

Management Approach for Material Matters(Cont’d)

13.

111

GRI CONTENT INDEX (CONT’D)
Innity has reported in accordance with the GRI Standards for the period 1 January 2023 to 31
December 2023. (Cont’d)
GRI Standard

Disclosure

Page Number

Community & Society
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 99

GRI 201: Economic
Performance 2016

201-1

Direct economic value generated and distributed

Annual report 2023

GRI 3: Material Topics
2021

3-3

Management of material topics

Page 100

GRI 302 Energy 2016

302-1

Energy consumption within the organisation

Page 100, page 106

GRI 3: Material Topics
2021

3-3

Management of material topics

Page 101

GRI 303 Water andEffluents 2018

301-1

Interactions with water as a shared resource

Page 101, page 106

GRI 3: Material Topics
2021

3-3

Management of material topics

Page 103

GRI 306 Waste 2020

306-4

Waste diverted from disposal

Page 103, page 106306-5

Waste diverted to disposal

Page 103, page 106

Energy Management

Water Management

Waste Management

Emission Management
GRI 3: Material Topics
2021

3-3

Management of material topics

Page 104

GRI 305 Emissions 2016

305-3

Other indirect (Scope 3) GHG emissions

Page 104, page 106

Innity Corporation Berhad

112

14.

Management Approach for Material Matters(Cont’d)SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)CONTENT INDEX
Services Sector: Advertising & Marketing

Topic

Code

Description

Data Privacy

SV-AD220a.1

Discussion of policies and practices relating tobehavioural advertising and consumer privacy.

Please refer to page 93.

SV-AD220a.2

Percentage of online advertising impressions
that are targeted to custom audiences.

To be included insubsequent Sustainability
Statement.

SV-AD220a.3

Total amount of monetary losses as a result oflegal proceedings associated with consumer
privacy.

Zero

SV-AD270a.1

Total amount of monetary losses as a result oflegal proceedings associated with false,
deceptive, or unfair advertising.

Zero

SV-AD270a.2

Percentage of campaigns reviewed foradherence with the Advertising SelfRegulatory Council (ASRC) procedures,
percentage of those in compliance.

Not applicable

SV-AD270a.3

Percentage of campaigns that promotealcohol or tobacco products.

To be included insubsequent Sustainability
Statement

SV-AD330a.1

Percentage of gender and racial/ethnic grouprepresentation for (1) management, (2)professionals, and (3) all other employees.

Please refer to page 94.

SV-AD000.A

Median reach of advertisements andmarketing campaigns.

Approximately 453,000

SV-AD000.B

Number of exposures to advertisements ormarketing campaigns.

Please refer to Annual
ReportSV-AD000.C

Median frequency of exposures

Approximately 1.80

SV-AD000.D

Number of employees

We do not publicly report
this information as the datais commercially sensitiveand confidential

Advertising
Integrity

Workforce
Diversity &Inclusion
Activity Metric2023 Performance

International Sustainability Standards Boards (ISSB) Content Index
Internet Media & Services
Environmental
Footprint ofHardware
Infrastructure

TC-IM130a.1

1. Total energy consumed,
2. Percentage grid electricity and3. Percentage renewable.

Please refer to page 100.

TC-IM130a.2

1. Total water withdrawn,
2. Total water consumed; percentage of eachin regions with High or Extremely HighBaseline Water Stress.

Please refer to page 101.

TC-IM130a.3

Discussion of the integration of environmental
considerations into strategic planning for data
centre needs.

Please refer to page 104.

Annual Report 2023

Management Approach for Material Matters(Cont’d)

14.

113

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)CONTENT INDEX (CONT’D)
Internet Media & Services (Cont’d)

Topic

Code

Activity Metric15.

2023 Performance

Description

TC-IM000.A

Entity-defined measure of user activity.

Please refer to Annual Report

TC-IM000.B

1. Data processing capacity,
2. Percentage outsourced.

1. 148
2. 100%

TC-IM000.C

1. Amount of data storage,
2. Percentage outsourced.

1. Up to 78 TB
2. 100%MATERIAL MATTERS (APPENDIX)
In our pursuit of generating value for the organisation and our stakeholders, it is crucial to comprehend
the influence of sustainability issues on our business and the repercussions of our business practices
on stakeholders and the environment. The materiality process, illustrated in flow chart, is groundedin key stages involving the identification of potential material industry and operational issues
pertinent to the Group’s business. This ongoing process can be implemented at both the company(enterprise) level and across all operating levels of associated companies.

Identification

Prioritisation

Review

Identify key issues anddefined stakeholders

Conduct materiality
surveyObtain input from theBoard representative

Stakeholders
Engagementa.

Identification
INNITY’s management identified the following list of sustainability issues faced by the Group:•

Stakeholder engagement;•

Review of market landscape including emerging industry trends;•

Peer analysis and benchmarking;•Analytics and feedback from daily business operations; and•Survey of consumer preferences and trends.

Innity Corporation BerhadManagement Approach for Material Matters(Cont’d)114

MATERIAL MATTERS (APPENDIX) (CONT’D)b.

Prioritisation
The sustainability issues that are considered material to our business operations, based on
our assessment on the impact (positive and negative) these have on the business and thelevel of concern to our stakeholders will be brainstormed at length amongst designated staff
internally. As the entire value chain of stakeholders are inextricably “linked” in the ecosystem,
internal designated staff, who are in regular contact with external stakeholders, prioritised therelative importance of each issue to INNITY and our stakeholders.
By assessing the impact of these material issues, our senior management were able to focus
on areas where sustainability management and business processes could be strengthened or
improved to meet the objectives and strategies of the Group and all of its subsidiaries. These
areas of concern also provide a basis on which we can continually improve to better meet the
expectations of our stakeholders.

Review
The identified material industry and operational issues are then presented to the ARMC andthe Board for validation followed by mitigation strategies, where applicable. A review of theGroup strategy is then carried out to address material matters to spur value creation.

F2023 Materiality Matrix
High

2023

High
materiality

Low / Medium
materiality

Low

c.

External Stakeholder

15.

Low

High

Internal Stakeholder
Energy Management

Labour Practices and Standards

Water Management

Supply Chain Management

Community & Society

Data Privacy and Security

Diversity & Inclusion

Anti-bribery & Anti-corruption

Employee Health & Safety and Wellbeing

Waste Management
Climate Change

Annual Report 2023

Management Approach for Material Matters(Cont’d)15.

115

MATERIAL MATTERS (APPENDIX) (CONT’D)
Material Matters

Description

Ranking

Data Privacy and Security

Protect personal information in accordance with nationallaws and regulations and relevant industry privacy
standards

1

Employee, Health Safety
and Wellbeing

Keeping employees and people safe from injury or diseaseat within our operations.

2

Labour Practices andStandards

Respecting and protecting human and labour rightthroughout our operations and supply chain.

3

Anti-Bribery andCorruption

Act lawfully, ethically and in the public interest. Prohibit
bribery and corruption. Not tolerate illegal or unethicalbehaviour by clients, supplier or by public officials.

4

Diversity and Inclusion

Inculcate an equitable workplace culture that recognises
the unique needs and contributions of employees.
Implementation of policies, strategies or practices topromote diversity of gender, ethnicity, disabilities, and age,
within the workplace.

5

Supply Chain Management

Support local supply suppliers and building a sustainable
long term relationship and business partnership.

6

Community and Society

Using Innity's service, platform and product to promote andenable a more equitable, safe and healthy society. Invest on
sustainability issues and societal values similar to Innity.

7

Waste Management

Efforts to reduce, reuse, and recycle waste, as well as
adopting environmentally friendly disposal methods.

8

Emission Management(Climate Change)

Assessing, measuring, and actively managing emissions
to minimise the environmental impact and contribute toclimate change mitigation efforts

9

Water Management

Minimising or Optimising the overall water consumption
and quality impacts across operations, including within
headquarters and subsidiaries.

10

Energy Management

Minimising or Optimising the overall energy consumption
and quality impacts across operations, including within
headquarters and subsidiaries.

10Innity Corporation Berhad

116

16.

Management Approach for Material Matters(Cont’d)

GLOSSARY
List of Abbreviations
ARMC

Audit and Risk Management Committee

ABC

Anti-Bribery and Corruption

Ad OpsAdvertising Operation

BCOC

Business Code of Conduct

COC

Code of Conduct

CO2

Carbon Dioxide

DM

DoMedia Asia Sdn Bhd

ERMEnterprise risk management

GRI

Global Reporting InitiativeHR

Human Resource

ISOInternational Standard Organisation

ISSB

International Sustainability Standards Boards

KPI

Key performance indicators

LED

Light-emitting diode

LTI

Lost time incident

MACC

Malaysian Anti-Corruption Commission

OSHA

Occupational Safety and Health Act

PDPA

Personal Data Protection Act

R&D

Research and Development

SASB

Sustainability Accounting Standards BoardSC

Sustainability Committee

SWG

Sustainability Working GroupTB

Terabyte

UNGC

United Nations Global Compact

VM

Virtual MachineAnnual Report 2023

ADDITIONAL COMPLIANCE INFORMATION

1.

117

Share Buyback
During the financial year, the Company did not enter into any share buyback transaction.

2.

Options, Warrants or Convertible Securities
During the financial year, no option, warrants or convertible securities were issued by the Company.

3.

Depository Receipt Programme
The Company did not sponsor any Depository Receipt Programme for the financial year ended
31 December 2023.

4.

Sanctions and/or Penalties
During the financial year, there were no sanctions and/or penalties imposed on the Company andits subsidiaries, directors or management by the relevant regulatory bodies.

5.

Non-Audit Fees
There was an amount of RM12,600 paid to the Company’s auditors Messrs. BDO PLT during thefinancial year ended 31 December 2023 on the review of Statement of Risk Management andInternal Control and Group Reporting package.

6.

Profit Guarantee
There were no profit guarantees given by the Group and the Company during the financial year
ended 31 December 2023.

7.

Variation of Results
For the financial year ended 31 December 2023, there were no variances between the audited
financial statements and the unaudited results previously announced.

8.

Material Contracts
There were no material contracts entered into by the Company and its subsidiaries which
involved the Directors and substantial shareholders’ interest during the financial year ended
31 December 2023.

9.

Innity Corporation Berhad’s Employee’s Share Scheme (“ESS”)
The ESS which was approved by the shareholders at the Extraordinary General Meeting held on
1 July 2015 governed by the ESS By-Laws, is the only ESS in existence during the financial year.
The ESS was implemented on 4 June 2018, which is in force for a period of five (5) years until
3 June 2023.
Since the implementation of the ESS until its expiry, a total of 1,000,000 shares award had been
granted to a Senior Management of the Group. The entire 1,000,000 shares award had been
exercised since the implementation of the ESS until its expiry.

Innity Corporation Berhad

118

9.

Additional Compliance Information (Cont’d)Innity Corporation Berhad’s Employee’s Share Scheme (“ESS”) (Cont’d)Share granted to the Senior Management

10.

Since the commencementof the ESS on 4 June 2018

Maximum allocation to
Senior Management

Aggregate maximum allocation inpercentage

18.0%

80%

Actual percentage granted

0.7%

5%

Recurrent Related Party Transaction
The Company had on 9 April 2024 announced to Bursa Malaysia Securities Berhad(“Bursa Securities”) that the Company will be seeking its shareholders’ approval for Proposed
Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue Or
Trading Nature entered/to be entered into from forthcoming AGM until the next AGM.
The Company will, at the forthcoming AGM, seek shareholders’ approval for the Proposal enteredinto from forthcoming AGM until the next AGM.
The related parties are as follows:
JcbNext Berhad (“JCBNEXT”) and D.A. Consortium Inc (“DAC”), are substantial shareholders withdirect holding of 20.982% and 24.917% equity interest respectively in the Company;
Autoworld.com.my Sdn. Bhd. is the wholly-owned subsidiary of JCBNEXT;JCBNEXT has a direct holding of 17.99% equity interest in 104 Corporation Ltd. (“104 Corporation”).
Hakuhodo DY Group consists of subsidiaries and associate companies of Hakuhodo DY Holdings
Inc (“Hakuhodo DY Holdings”). Hakuhodo DY Holdings is the ultimate holding company of DAC(D.A.Consortium Inc.), by virtue of its 100% indirect equity interest in DAC, through 90.75% equity
interest in DAC Holdings (D.A.Consortium Holdings Inc.) and 9.25% in Hakuhodo DY Media Partners.
Myanmar Marketing and Research Development Co., Ltd (“MMRD”) has a direct shareholding of
35% equity interest, representing 31,500 shares in Innity Myanmar Co., Ltd
Innity Sdn. Bhd.’s (“ISB”) wholly-owned subsidiary, Innity Limited (“Innity Ltd”) has a direct
shareholding of 49% equity interest, representing 9,800 shares in Innity Digital Media Thailand
Co., Ltd (“Innity Thailand”).
ISB is a wholly-owned subsidiary of INNITY.

Annual Report 2023

Additional Compliance Information (Cont’d)

10.

119

Recurrent Related Party Transaction (Cont’d)
The RRPTs entered into by the Group during the financial year ended 31 December 2023 were as
follows:

Related Party

Nature of Recurrent
Transactions

Interested Related
Parties

104 Corporation
Ltd

Purchase of online recruitment
services

Major shareholder
JCBNext

Actual Value
Transacted for
the Financial
Year (RM)
2,248

Director
Gregory Charles Poarch
Liong Wei Li
Hakuhodo DY
GroupProvision of advertising andpublicity related services

Major shareholder
DAC

877,550

Purchase of advertising andpublicity related services

Corporations Connectedwith Major Shareholder
DAC Holdings
Hakuhodo DY Holdings

5,106

Director
Michihiko Suganuma
Reiko Yoshikawa
Innity Thailand

MMRD

Provision of advertising andpublicity related services

Director
Looa Hong Tuan

36,812

Purchase of advertising andpublicity related services

154,413Management fees in relation
to backend support staff costs
chargeback which include
Corporate Strategy, Finance,
Business Development, Operation
and Creative team based on time
allocation of each individual

298,655

Royalty fees

101,093

Provision of advertising andpublicity related services

Major shareholder
MMRD-

Purchase of advertising andpublicity related services

Director
U Moe Kyaw-

Innity Corporation Berhad

120

STATEMENT OF RESPONSIBILITYBY DIRECTORSSTATEMENT OF RESPONSIBILITY BY DIRECTORSIn respect of preparation of the Audited Financial Statements
The Directors are responsible for ensuring that the audited financial statements of the Group and theCompany are drawn up in accordance with applicable Malaysian Financial Reporting Standards and theprovision of the Companies Act 2016.
The Directors are also responsible for ensuring that the audited financial statements of both the Groupand the Company are prepared with reasonable accuracy from their respective accounting records so
as to give a true and fair view of the financial position of the Group and the Company as of 31 December
2023, as well as their financial performance and cash flows for the year then ended.
In preparing the audited financial statements, the Directors have:a.

adopted appropriate accounting policies and applied them consistently;b.

made judgements and estimates that are reasonable and prudent; andc.

prepared the financial statements on a going concern basis.

The Directors also have a general responsibility to take reasonable steps to safeguard the assets of theGroup and of the Company to prevent and detect fraud and other irregularities.

REPORT AND
F I N A N C I A L S TAT E M E N T

01

02

Director’s Report122

Statement by Directors

128

Statutory Declaration

128

Independent Auditors’ Report129

Statements of Financial Position

133

Statements of Profit or Loss

134

Statements of Comprehensive Income

135

Statements of Changes in Equity

136

Statements of Cash Flows138

Notes to the Financial Statements

141

Innity Corporation Berhad

122

DIRECTOR’S REPORTDIRECTORS’ REPORTThe Directors hereby submit their report and the audited financial statements of the Group and of theCompany for the financial year ended 31 December 2023.

PRINCIPAL ACTIVITIESThe Company is principally involved in investment holding. The Group’s subsidiaries and associate are
involved in the business of online advertising solutions, computer and mobile software applications
development, operation of promotional and sales event information website, software production anddevelopment of content and influencer marketing. The other information relating to the subsidiaries andassociate are disclosed in Note 8(b) and Note 9(b) to the financial statements respectively.
There have been no significant changes in the nature of the principal activities of the Group and of theCompany during the financial year.

RESULTS(Loss) /Profit for the financial year
Attributable to:
Owners of the parent
Non-controlling interests

Group
RM

Company
RM(2,169,225)

163,155(1,101,087)

163,155(1,068,138)-(2,169,225)

163,155

DIVIDEND
No dividend has been paid, declared or proposed by the Company since the end of the previous financial
year. The Directors do not recommend the payment of any dividend in respect of the current financial
year.

RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year other thanthose presented in the statements of changes in equity.

ISSUE OF SHARES AND DEBENTURESThe Company did not issue any new shares or debentures during the financial year.

Annual Report 2023

Director’s Report (Cont’d)

123

EMPLOYEES’ SHARE SCHEME
The Company implemented an Employees’ Share Scheme (“ESS”), which is in force for a period of five (5)years until 3 June 2023 (“the scheme period”). The main features of the ESS are as follows:a.

The ESS is made available to Senior Management and full-time Executive Directors who are confirmed
employees of the Company and its subsidiaries as defined in the Companies Act 2016 in Malaysia, as
amended from time to time, and any re-enactment thereof;b.

The total number of shares offered under the ESS shall not, in aggregate, exceed 5% of the issued andpaid-up share capital of the Company at any time during the existence of the ESS;c.

The Participant will not be required to pay for the new ESS Shares that may be issued and allotted tothem and/or the existing Company Shares to be transferred to them pursuant to the Proposed ESS;d.

The actual number of shares, which may be offered to any eligible employee shall be at the discretionof the ESS Committee provided that the number of shares offered are not less than 100 shares and in
multiples of 100 shares and are subject to the following:i.

not more than 80% of the shares available under the ESS shall be allocated in aggregate to
the Senior Management of the Company and its subsidiaries; andii.

not more than 10% of the total number of ESS Shares shall be allocated to a Participant, who,
either singly or collectively through persons connected with the Participant, holds twenty
percent (20%) or more of our issued and paid-up share capital.

e.

A share award granted under the ESS may be exercised by the grantee upon achieving the vesting
conditions set by the ESS Committee; andf.

The shares shall on issue and allotment rank pari passu in all respects with the then existing issued
shares of the Company.

No shares have been issued during the financial year by virtue of the exercise of any option to take up
unissued shares of the Company. As at the end of the financial year, there were no unissued shares of theCompany under options.
Since the implementation of the ESS until end of the financial year, a total of 1,000,000 shares award had
been granted to Senior Management of the Group. The entire 1,000,000 shares award had been exercisedsince the implementation of the ESS until its expiry.
There were no share award granted to the Executive Directors of the Company and its subsidiaries during
the financial year. Since the implementation of the ESS until its expiry, none of the Executive Directors of
the Company and its subsidiaries had been granted any share award under the ESS.

Innity Corporation Berhad

124

Director’s Report (Cont’d)

DIRECTORSThe Directors who have held office during the financial year and up to the date of this report are as follows:

Innity Corporation Berhad
Phang Chee Leong*
Looa Hong Tuan*
Wong Kok Woh*Seah Kum Loong*
Michihiko Suganuma
Cheong Chee Yun
Gregory Charles Poarch
Fung Kam Foo
Norliza Binti Rasool Khan
Liong Wei Li (Alternate Director to Gregory Charles Poarch)
Rieko Yoshikawa (Alternate Director to Michihiko Suganuma)*These Directors are also Directors of the subsidiaries of the Company.

Subsidiaries of Innity Corporation Berhad (excluding those Directors listed above)
Gabriel Joaquin D. Zosa II
Simon Ong
U Moe Kyaw
Nadya Rosalia Hanum S
Celine Mariel J.Gaspar
Melody C. Neri				

DIRECTORS’ INTERESTThe Directors holding office at the end of the financial year and their beneficial interests in ordinary
shares of the Company and of its related corporations during the financial year ended 31 December 2023
as recorded in the Register of Directors’ Shareholdings kept by the Company under Section 59 of theCompanies Act 2016 in Malaysia were as follows:
Number of ordinary shares
Shares in the Company

Balance as at
1.1.2023

BoughtBalance as at
31.12.2023

Sold

Direct interest
Phang Chee Leong

13,298,372--

13,298,372

Looa Hong Tuan

12,374,685--

12,374,685

Wong Kok Woh

7,299,086--

7,299,086

Seah Kum Loong

6,817,292--

6,817,292

None of the other Directors holding office at the end of the financial year held any interest in the ordinary
shares of the Company and of its related corporations during the financial year.

Annual Report 2023

Director’s Report (Cont’d)

125

DIRECTORS’ BENEFITS
Since the end of the previous financial year, none of the Directors have received or become entitled
to receive any benefit (other than those benefits included in the aggregate amount of remuneration
received and receivable by the Directors as shown in the financial statements) by reason of a contract
made by the Company or a related corporation with the Director or with a firm of which the Director is amember, or with a company in which the Director has a substantial financial interest, except for certain
Directors who received remuneration from the subsidiaries as Directors of the subsidiaries.
There were no arrangements made during and at the end of the financial year, to which the Company isa party, which had the object of enabling the Directors to acquire benefits by means of the acquisition ofshares in or debentures of the Company or any other body corporate.

DIRECTORS’ REMUNERATIONThe Directors’ remuneration of the Group and of the Company for the financial year ended 31 December
2023 were as follows:
Group
RM

Company
RM

2,027,834

10,500Defined contribution plan

225,236-

Directors’ fees

516,026

184,800

2,769,096

195,300

Salaries, bonuses, allowances and other emoluments

INDEMNITY AND INSURANCE FOR DIRECTORS, OFFICERS AND AUDITORSThe Group and the Company effected Directors’ and officers’ liability insurance during the financial
year to protect the Directors and officers of the Group and of the Company against potential costs andliabilities arising from claims brought against the Directors and officers.
During the financial year, the total amount of insurance premium paid for the Directors and the officersof the Group and of the Company is RM9,374.
There were no indemnity given to or insurance effected for the auditors of the Group and of the Company
during the financial year.

Innity Corporation Berhad

Director’s Report (Cont’d)

126

OTHER STATUTORY INFORMATION REGARDING THE GROUP AND THE
COMPANYI.

AS AT THE END OF THE FINANCIAL YEAR
a.

b.

II.

i.

to ascertain that proper action had been taken in relation to the writing off of bad
debts and the making of provision for doubtful debts and had satisfied themselvesthat all known bad debts had been written off and that adequate provision had been
made for doubtful debts; andii.

to ensure that any current assets other than debts, which were unlikely to realise
their book values in the ordinary course of business have been written down to theirestimated realisable values.

In the opinion of the Directors, the results of the operations of the Group and of the Company
during the financial year have not been substantially affected by any item, transaction or
event of a material and unusual nature.

FROM THE END OF THE FINANCIAL YEAR TO THE DATE OF THIS REPORT
c.

d.

III.

Before the financial statements of the Group and of the Company were prepared, theDirectors took reasonable steps:

The Directors are not aware of any circumstances:i.

which would render the amount written off for bad debts or render the amount of
the provision for doubtful debts in the financial statements of the Group and of theCompany inadequate to any material extent;ii.

which would render the values attributed to current assets in the financial statementsof the Group and of the Company misleading; andiii.

which have arisen which would render adherence to the existing method of valuationof assets or liabilities of the Group and of the Company misleading or inappropriate.

In the opinion of the Directors:i.

there has not arisen any item, transaction or event of a material and unusual nature
likely to affect substantially the results of the operations of the Group and of theCompany for the financial year in which this report is made; andii.

no contingent or other liability has become enforceable, or is likely to become
enforceable, within the period of twelve (12) months after the end of the financial year
which will or may affect the ability of the Group and of the Company to meet their
obligations as and when they fall due.

AS AT THE DATE OF THIS REPORTe.

There are no charges on the assets of the Group and of the Company which have arisen since
the end of the financial year to secure the liabilities of any other person.

f.

There are no contingent liabilities of the Group and of the Company which have arisen since
the end of the financial year.

g.

The Directors are not aware of any circumstances not otherwise dealt with in this report or
the financial statements which would render any amount stated in the financial statementsof the Group and of the Company misleading.

Annual Report 2023

Director’s Report (Cont’d)127

AUDITORS
The auditors, BDO PLT (201906000013 (LLP0018825-LCA) & AF 0206), have expressed their willingness tocontinue in office.
Auditors’ remuneration of the Group and of the Company for the financial year ended 31 December 2023
were as follows:

Statutory audit
Assurance related services

Group
RM

Company
RM

455,996

93,00012,60012,600468,596

105,600

Signed on behalf of the Board in accordance with a resolution of the Directors.

Phang Chee Leong 							Looa Hong Tuan
Director 								Director

Kuala Lumpur
9 April 2024

Innity Corporation Berhad

128

STATEMENT BY DIRECTORSSTATEMENT BY DIRECTORSPURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
In the opinion of the Directors, the financial statements set out on page 133 to page 193 have been drawn
up in accordance with Malaysian Financial Reporting Standards, IFRS Accounting Standards and theprovisions of the Companies Act 2016 in Malaysia so as to give a true and fair view of the financial positionof the Group and of the Company as at 31 December 2023 and of the financial performance and cash
flows of the Group and of the Company for the financial year then ended.
Signed on behalf of the Board in accordance with a resolution of the Directors.

Phang Chee Leong 							Looa Hong Tuan
Director 								Director

Kuala Lumpur
9 April 2024

128

STATUTORY DECLARATIONSTATUTORY DECLARATIONPURSUANT TO SECTION 251(1)(b) OF THE COMPANIES ACT 2016
I, Yap Soon Kim (CA 23399), being the officer primarily responsible for the financial management of Innity
Corporation Berhad, do solemnly and sincerely declare that the financial statements set out on page
133 to page 193 are, to the best of my knowledge and belief, correct and I make this solemn declaration
conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations
Act, 1960.

Subscribed and solemnly
declared by the abovenamed
at Kuala Lumpur thison 9 April 2024									Before me,
Commissioner for Oaths
Kuala Lumpur

Yap Soon Kim

Annual Report 2023

INDEPENDENT AUDITORS’ REPORT129

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OpinionWe have audited the financial statements of Innity Corporation Berhad, which comprise the statementsof financial position as at 31 December 2023, and the statements of profit or loss, statements ofcomprehensive income, statements of changes in equity and statements of cash flows of the Groupand of the Company for the financial year then ended, and notes to the financial statements, including
material accounting policy information, as set out on page 133 to page 193.
In our opinion, the accompanying financial statements give a true and fair view of the financial positionof the Group and of the Company as at 31 December 2023, and of their financial performance and their
cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards(“MFRSs”), IFRS Accounting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the
Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By- Laws”) and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants(including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethicalresponsibilities in accordance with the By-Laws and the IESBA Code.

Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the Group and of the Company for the current year. These matterswere addressed in the context of our audit of the financial statements of the Group and of the Company
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on thesematters.

Impairment of Trade Receivables
As at 31 December 2023, the gross trade receivables of the Group were RM32,749,319 and the associatedimpairment losses of trade receivables were RM2,272,827, as disclosed in Note 13 to the financial
statements.
The Group has recognised a reversal of impairment losses on trade receivables amounted to RM406,470
during the financial year.
We determined this to be a key audit matter because it requires management to exercise significant
judgements in determining the probability of default by trade receivables and appropriate forward
looking information to assess the expected credit loss allowances.

Innity Corporation Berhad

130

Independent Auditors’ Report (Cont’d)

Key Audit Matters (Cont’d)
Impairment of Trade Receivables (Cont’d)Our audit procedures, with the involvement of components auditors, included the following:i.

Recomputed the probability of default using historical data and forward looking information
adjustment;ii.

Recomputed the correlation coefficient between forward looking information used by the Groupand historical losses to determine the appropriateness of the forward looking information used; andiii.

Inquiries of management to assess the rationale underlying the relationship between the forwardlooking information and expected credit losses.

We have determined that there are no key audit matters to communicate in our report in respect to theaudit of the financial statements of the Company.

Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises
the information included in the annual report, but does not include the financial statements of the Groupand of the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company,
our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements of the Group and of the Company or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements of the Groupand of the Company that give a true and fair view in accordance with MFRSs, IFRS Accounting Standards
and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for suchinternal control as the Directors determine is necessary to enable the preparation of financial statementsof the Group and of the Company that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible
for assessing the ability of the Group and of the Company to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic
alternative but to do so.

Annual Report 2023

Independent Auditors’ Report (Cont’d)131

Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Groupand of the Company as a whole are free from material misstatement, whether due to fraud or error, andto issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with approved standards on auditing in
Malaysia and ISAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and ISAs, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:a.

Identify and assess the risks of material misstatement of the financial statements of the Group andof the Company, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.

b.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the internal control of the Group and of the Company.

c.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.

d.

Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the ability of the Group or of the Company to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors’ report to the related disclosures in the financial statements of the Groupand of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditors’ report. However, future events orconditions may cause the Group or the Company to cease to continue as a going concern.

e.

Evaluate the overall presentation, structure and content of the financial statements of the Groupand of the Company, including the disclosures, and whether the financial statements of the Groupand of the Company represent the underlying transactions and events in a manner that achieves fairpresentation.

f.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Group to express an opinion on the financial statements of the Group.
We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.

Innity Corporation Berhad

132

Independent Auditors’ Report (Cont’d)

Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)
From the matters communicated with the Directors, we determine those matters that were of mostsignificance in the audit of the financial statements of the Group and of the Company for the current
year and are therefore the key audit matters. We describe these matters in our auditors’ report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries
of which we have not acted as auditors, are disclosed in Note 8 to the financial statements.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of
the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.

BDO PLT 							201906000013 (LLP0018825-LCA) & AF 0206 			
Chartered Accountants 											Kuala Lumpur
9 April 2024

Brendan Francis Lim Jern Zhen
03591/09/2025 J
Chartered Accountant

Annual Report 2023

STATEMENTS OF FINANCIAL POSITION

133

As at 31 December 2023

Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

1,932,524
3,995,719
4,756,306
255,433
824,130

1,032,041
3,706,280
4,450,080
658,736
702,934

15,335,819-

31,572
15,335,819-

11,764,112

10,550,071

15,335,819

15,367,391

12
13

11,93330,476,492

34,50527,240,425

-

-

14

6,133,257
587,455

5,321,548
593,149

1,724,974-

864,844-15

32,780,826

35,439,026

238,197

420,706

69,989,963

68,628,653

1,963,171

1,285,550

81,754,075

79,178,724

17,298,990

16,652,941

19,477,031
19,677,933

19,477,031
20,073,814

19,477,031(3,787,479)

19,477,031(3,950,634)

Equity attributable to owners of the Company
Non-controlling interests

39,154,964
263,026

39,550,845
1,342,322

15,689,552-

15,526,397-

TOTAL EQUITY

39,417,990

40,893,167

15,689,552

15,526,397

1,168,135
1,462,490
513,232
245,788933,552
1,529,861
442,031
277,707

1,059,454-

209,840-

3,389,645

3,183,151

1,059,454

209,840

21,003,543
14,746,795
1,632,160
1,400,514
163,428

21,431,171
12,385,900
1,192,357
32,286
60,692549,984-

884,182
32,522-

38,946,440

35,102,406

549,984

916,704

TOTAL LIABILITIES

42,336,085

38,285,557

1,609,438

1,126,544

TOTAL EQUITY AND LIABILITIES

81,754,075

79,178,724

17,298,990

16,652,941

Note
ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments in subsidiaries
Investments in an associate
Deferred tax assets

5
6
7
8
9
11

Current assets
Inventories
Trade receivables
Other receivables, deposits, contract assets andprepayments
Current tax assets
Cash and bank balances

TOTAL ASSETSEQUITY
Share capital
Reserves

16
17

LIABILITIES
Non-current liabilities
Other payables, contract liabilities and accruals
Deferred tax liabilities
Lease liabilities
Retirement benefit obligations
Borrowings

20
11
6
18
21

Current liabilities
Trade payables
Other payables, contract liabilities and accruals
Lease liabilities
Borrowings
Current tax liabilities

19
20
6
21

The accompanying notes form an integral part of these financial statements.

Innity Corporation Berhad

134

STATEMENTS OF PROFIT OR LOSS
For the Financial Year Ended 31 December 2023

Group
Note
Revenue

22

Other operating income
Direct costs

Company

2023
RM

2022
RM

2023
RM

2022
RM

114,012,489

119,216,452

4,864,417

4,548,148

1,103,565

1,704,170

159,949

66,032(61,289,958)(69,075,711)(3,769,572)(3,295,840)

Staff costs

23(43,358,442)(39,619,044)(661,362)(512,358)

Depreciation

5,6(2,238,388)(1,527,650)(31,572)(31,572)

Amortisation of development expenditure

7(1,472,748)(1,584,603)--

Net gains/(losses) on impairment of financial assets

25

406,470(183,912)(66,649)(56,708)(7,220,802)(8,258,777)(294,826)(323,796)

Other operating expenses(Loss)/Profit from operations

25(57,814)670,925

200,385

393,906

Finance costs

26(226,345)(136,914)(37,230)(78,667)(426,348)(56,656)--

Share of loss in equity accounted associate,
net of tax(Loss)/Profit before tax(710,507)

477,355

163,155

315,239(1,458,718)(1,107,671)--(2,169,225)(630,316)

163,155

315,239

Owners of the Company(1,101,087)(78,804)

163,155

315,239

Non-controlling interests(1,068,138)(551,512)--(2,169,225)(630,316)

163,155

315,239(0.79)(0.06)

Income tax expense

27(Loss)/Profit for the financial year
(Loss)/Profit attributable to:Loss per ordinary share attributable to owners of
the Company (sen)Basic and diluted

28

The accompanying notes form an integral part of these financial statements.

Annual Report 2023

STATEMENTS OF COMPREHENSIVE INCOME

135

For the Financial Year Ended 31 December 2023

Note

Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

(2,169,225)(630,316)

163,155

315,23927(d)740,635

1,151,712

-

-

27(d)

(1,874)

167,257--

738,761

1,318,969--(1,430,464)

688,653

163,155

315,239(Loss)/Profit for the financial year
Other comprehensive income/(loss) for the year,
net of tax
Items that may be reclassified
subsequently to profit or loss
Foreign currency translation
Items that will not be reclassified
subsequently to profit or loss
Remeasurement of retirement benefit
obligations
Total other comprehensive income for the year,
net of tax
Total comprehensive (loss)/income
Total comprehensive (loss)/income attributableto:Owners of the Company(395,881)

1,011,533

163,155

315,239

Non-controlling interests(1,034,583)(322,880)--(1,430,464)

688,653

163,155

315,239

The accompanying notes form an integral part of these financial statements.

-Total comprehensive income/(loss)

Dividends paid to non-controlling interests

Total transaction with Owners and changes in ownershipinterests-

Total comprehensive income/(loss)

Dividends paid to non-controlling interests

Total transaction with Owners and changes in ownershipinterests(2,512,173)

-

-

-

-

-

(2,512,173)

-

-

-

-

-

1,442,996--

706,189

706,189-

736,807--960,000

960,000-(223,193)

RM(Note 17)

The accompanying notes form an integral part of these financial statements.

19,477,031-

Other comprehensive income/(loss)

At 31 December 2023-

Loss for the financial year

19,477,031-

Other comprehensive income

At 31 December 2022/1 January 2023-

(2,512,173)

RM

RM
19,477,031(Note 17)

(Note 16)

Loss for the financial year

At 1 January 2022

Group

Share
capitalForeigncurrencytranslation
reserve

20,747,110--(1,102,070)(983)(1,101,087)

21,849,180--

51,533130,337(78,804)

21,797,647

RM(Note 17)

Retained
profits

Distributable

39,154,964--(395,881)

705,206(1,101,087)

39,550,845--

1,011,533

1,090,337(78,804)

38,539,312

RM

Total
attributableto Ownersof theCompany

263,026(44,713)(44,713)(1,034,583)

33,555(1,068,138)

1,342,322(34,742)(34,742)(322,880)

228,632(551,512)

1,699,944

RM

Noncontrollinginterests

39,417,990(44,713))(44,713)(1,430,464)

738,761(2,169,225)

40,893,167(34,742)(34,742)

688,653

1,318,969(630,316)

40,239,256

RM

Total
equity136

Reverseacquisition
reserve- - - - - - - - - - - Non-distributable - - - - - - - - - - - - -Innity Corporation Berhad

STATEMENTS OF CHANGES IN EQUITY

For the Financial Year Ended 31 December 2023

Annual Report 2023

Statements of Changes in Equity
For the Financial Year Ended 31 December 2023 (Cont’d)137---------Non-distributable---------

Company

At 1 January 2022
Profit for the financial year/Total comprehensive income
At 31 December 2022/1 January 2023
Profit for the financial year/Total comprehensive income
At 31 December 2023

SharecapitalAccumulated
losses(Note 16)

(Note 17)

RM

RM

RM

19,477,031(4,265,873)

15,211,158-

315,239

315,239

19,477,031(3,950,634)

15,526,397-

163,155

163,155

19,477,031(3,787,479)

15,689,552

The accompanying notes form an integral part of these financial statements.

Total
equityInnity Corporation Berhad

138

STATEMENTS OF CASH FLOWSFor the Financial Year Ended 31 December 2023 (Cont’d)

Group
Note

Company

2023
RM

2022
RM

2023
RM

2022
RM

(710,507)

477,355

163,155

315,239

CASH FLOWS FROM OPERATINGACTIVITIES(Loss)/Profit before tax
Adjustments for:
Amortisation of development expenditure

7

1,472,748

1,584,603--

Depreciation

5,6

2,238,388

1,527,650

31,572

31,572

Dividend income from a subsidiary--(600,000)(750,000)Gain on disposal of property, plant andequipment

-

(810)

-

-

(19,448)(80,028)--(406,470)

183,91266,64956,708Gain on lease modification

6(g)(Reversal)/ Impairment losses on
financial assets, net
Interest expense

26

226,345

136,914

37,23078,667

Interest income

25(224,768)(119,923)(26,054)(58,446)

-

1,676

-

-

Inventories written off
Property, plant and equipment written off

25

1,373

1,575

-

-

Retirement benefits

18

46,356

174,811--426,348

56,656--(255,779)(3,455)-855

2,794,586

3,940,936(327,448)(325,405)

22,572

41,864--(Increase)/Decrease in trade and otherreceivables(2,287,439)

11,486,415(6,182)(14,799)

Increase/(Decrease) in trade and otherpayables

1,462,685(6,604,441)(3,787)(16,004)

Cash generated from/(used in) operations

1,992,404

8,864,774(337,417)(356,208)--

600,000

750,000(1,329,604)(2,050,379)--

Income tax refunded

123,395---

Net cash from operating activities

786,195

6,814,395

262,583

393,792

Share of loss in equity-accounted associate
Net unrealised (gain)/loss on foreignexchange
Operating profit/(loss) before working
capital changes
Decrease in inventories

Dividend received
Income tax paid

25

The accompanying notes form an integral part of these financial statements.

Annual Report 2023

Statements of Cash Flows139

For the Financial Year Ended 31 December 2023 (Cont’d)

Group
Note

Company

2023
RM

2022
RM

2023
RM

2022
RM

(1,778,974)(1,598,791)--

44,675(78,501)--(4,874,379)(3,955,539)--

224,768

119,923

26,05458,446

-

1,769

-

-

CASH FLOWS FROM INVESTING
ACTIVITIESDevelopment expenditure paid

7

Withdrawals/(Placements) of fixed deposits:- pledged to licensed banks- with maturity period more than three (3)monthsInterest received
Proceeds from disposal of plant andequipment
Purchase of property, plant and equipment

5(1,424,426)(438,521)--

Additions of right-of-use assets

6(i)(33,176)---(260,210)

303,865(88,039)

19,027--(313,355)(394,482)(8,101,722)(5,645,795)(375,340)(317,009)

Dividends paid to non-controlling interests(44,713)(34,742)--Interest paid

(47,691)(47,985)(36,152)(75,689)

Repayments of loan

(30,870)(30,512)--(1,730,130)(1,012,586)(33,600)(33,600)

Net cash used in financing activities(1,853,404)(1,125,825)(69,752)(109,289)

Net (decrease)/increase in cash and cash
equivalents(9,168,931)

42,775(182,509)(32,506)

313,848

1,333,819--

29,427,005

28,050,411

420,706

453,212

20,571,922

29,427,005

238,197

420,706(Advances to) Repayment from anassociate
Advances to subsidiaries
Net cash used in investing activities

CASH FLOWS FROMFINANCING ACTIVITIESPayment of lease liabilities

6

Effects of exchange rate fluctuations on
cash and cash equivalents
Cash and cash equivalents at at the
beginning of financial year
Cash and cash equivalents at the end of
financial year

15

The accompanying notes form an integral part of these financial statements.

Innity Corporation Berhad

140

Statements of Cash Flows
For the Financial Year Ended 31 December 2023 (Cont’d)Reconciliation of liabilities arising from financing activities:
Group

Company

Lease Liabilities
Note 6
RM

Term loans
Note 21
RM

Lease Liabilities
Note 6RM

At 1 January 2022

1,324,985

340,505-

Cash flows(1,012,586)(43,632)(33,600)

2,744,091-

63,14442,385--- Lease modification(465,586)--- Interest expense

88,92913,1202,978

At 31 December 2022/1 January 2023

2,722,218

309,993

32,522

Cash flows(1,730,130)(47,348)(33,600)

2,019,079--

97,134--- Lease modification(192,305)--- Interest expense

178,654

16,4781,078

At 31 December 2023

3,094,650

279,123-Group

Non-cash flows:- Acquisition of right-of-use assets- Effect of foreign exchange

Non-cash flows:- Acquisition of right-of-use assets- Effect of foreign exchange

The accompanying notes form an integral part of these financial statements.

Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

1.

141

CORPORATE INFORMATION
Innity Corporation Berhad (“the Company”) is a public limited liability company, incorporated anddomiciled in Malaysia, and is listed on the ACE Market of Bursa Malaysia Securities Berhad.
The registered office of the Company is located at Unit 30-1, Level 30, Tower A, Vertical BusinessSuite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. The principal placeof business of the Company is located at C501 & C502, Block C, Kelana Square, 17, Jalan SS7/26,
Kelana Jaya, 47301 Petaling Jaya, Selangor Darul Ehsan.
The consolidated financial statements for the financial year ended 31 December 2023 comprise
the Company and its subsidiaries and the interests of the Group in an associate. These financial
statements are presented in Ringgit Malaysia (“RM”), which is also the functional currency of theCompany.
The financial statements were authorised for issue in accordance with a resolution by the Boardof Directors on 9 April 2024.

2.

PRINCIPAL ACTIVITIESThe Company is principally involved in investment holding. The principal activities and otherinformation of the subsidiaries and associate are disclosed in Note 8(b) and Note 9(b) to thefinancial statements respectively.
There have been no significant changes in the nature of these activities during the financial year.

3.

BASIS OF PREPARATION
The financial statements of the Group and of the Company have been prepared in accordancewith Malaysian Financial Reporting Standards (“MFRSs”), IFRS Accounting Standards and theprovisions of the Companies Act 2016 in Malaysia.
The accounting policies adopted are consistent with those of the previous financial year except for
the effects of adoption of new MFRSs during the financial year. The new MFRSs and Amendments
to MFRSs adopted during the financial year are disclosed in Note 32.1 to the financial statements.
The financial statements of the Group and of the Company have been prepared under thehistorical cost convention except as otherwise stated in the financial statements.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

142

4.

OPERATING SEGMENT
The Group is principally involved in providing technology based online advertising solutions andother related internet services in Malaysia and other areas of the Asia Pacific. For management
purposes, the Group is organised into business units based on their geographical location and hasreportable operating segments as follows:•

Malaysia•

Singapore•

Indonesia•

Vietnam•Philippines•

Hong Kong/China•

Taiwan•South Korea•

Cambodia•

Myanmar

The management monitors the operating results of its business units as well as relying on thesegment information as disclosed below for the purpose of making decision about resources
allocation and performance assessment.
Inter-segment transactions were entered into when advertising campaigns were carried out in aregional basis. The pricing of the inter-segment transactions is determined based on a negotiatedmargin basis.
Information regarding the results of each reportable segment is included below. Performanceis measured based on segment profit/(loss) before tax, as included in the internal management
reports that are reviewed by the Group’s Managing Director. Segment profit/(loss) is used tomeasure performance as the management believes that such information is the most relevant inevaluating the results of certain segments relative to other entities that operate in these industries.

59,180,599

Total revenue

1,478,961

1,370,585

Profit/(Loss) for the financial
year

Profit/(Loss) attributable to
Owners of the Company(899,304)

Income tax expense

108,376

2,269,889

Profit/(Loss) before tax

Non-controlling interests(426,348)(72,370)

Share of loss in equity
accounted associates, netof taxFinance costs

Profit/(Loss) fromoperations

2,768,607

5,040,582

Inter-segment revenue

Results

54,140,017

External revenue

RM

Malaysia(922,001)-(922,001)-(922,001)-(24,774)(897,227)

9,792,841

138,4129,654,429

RM

Singapore(816,165)

784,160(1,600,325)

102,572(1,702,897)-(9,207)(1,693,690)

2,646,415

140,618

2,505,797

RM

Indonesia

181,607(49,254)

230,861

21,547

209,314-(124,558)

333,872

11,756,378

18,975

11,737,403

RM

VietnamOPERATING SEGMENT (CONT’D)

Revenue2023

4.

1,581,111(83,227)

1,664,338(658,627)

2,322,965-(51,865)

2,374,830

15,326,972

489,708

14,837,264

RM

Philippines(426,923)

75,898(502,821)

3,495(506,316)-(71,923)(434,393)

17,478,999

14,537

17,464,462

RM

Hong
Kong/
China

(776,142)

194,036(970,178)(28,401)(941,777)-(97,969)(843,808)

2,726,262

105,106

2,621,156

RM

Taiwan

(525)

132

(657)

-

(657)

-

-

(657)

-

-

-

RM

South
Korea

(384,957)-(384,957)-(384,957)-(2,543)(382,414)

1,051,961-

1,051,961

RM

Cambodia(70,603)

38,017(108,620)-(108,620)-(19,699)(88,921)

1,463

1,463

-

RM

Myanmar(155,637)

1,068,138(1,223,775)(1,458,718)

234,943(426,348)(474,908)

1,136,199

119,961,890

5,949,401

114,012,489

RM

Total

Inter-(945,450)-(945,450)-(945,450)-

248,563(1,194,013)(5,949,401)(5,949,401)-

RM

elimination

segment(1,101,087)

1,068,138(2,169,225)(1,458,718)(710,507)(426,348)(226,345)(57,814)114,012,489-

114,012,489

RM

Group

Annual Report 2023

Notes to the Financial Statements (Cont’d)143

22,383,071

22,383,071

Segment liabilities

Consolidated total
liabilities- Net unrealised (gain)/loss
on foreign exchange- Retirement benefits- Property, plant andequipment written off- trade receivables- (Reversal of)/Impairment
losses on:

28,468-809

72,585---557,026

Material non-cash items
other than depreciation andamortisation(13,939)

311,519

1,472,748

Depreciation-

2,298,872

Capital expenditure

16,1783,096,363

3,096,363

6,840,937-

6,840,937

Amortisation of development
expenditure

Other information

52,221,739

255,433

51,966,306

Consolidated total
assetsInvestments in an associate

Segment assets

RM

Singapore(17,101)

8,374

-

263

14,596-

4,636

4,185,171

4,185,171

2,417,159-

2,417,159

RM

Indonesia(5,548)--88,628320,093-

8,791

8,279,074

8,279,074

8,035,250-

8,035,250

RM

Vietnam

14,07737,982-(290,813)

390,451-

273,907

12,731,084

12,731,084

18,965,386-

18,965,386

RM

Philippines(2,272)-564(189,580)

621,147-

588,471

4,973,662

4,973,662

20,584,350-

20,584,350

RM

Hong
Kong/
China

(141,968)--(1,029)12,774-

12,5459,193,141

9,193,141

1,232,646-

1,232,646

RM

Taiwan

-

-

-

-

-

-

-

-

-

-

-

-

RM

South
Korea

(1,261)

-

-

-

8,701

-

-

777,309

777,309

335,091-

335,091

RM

Cambodia

31,877

-

-

-

2,081

-

-

953,835

953,835

20,057-

20,057

RM

Myanmar(84,897)

46,356

1,373(406,470)

2,238,388

1,472,748

3,203,400

66,572,710

66,572,710

110,652,615

255,433

110,397,182

RM

Total

Inter-(170,882)

-

-

-

-

-

-

(24,236,625)(24,236,625)(28,898,540)-(28,898,540)

RM

elimination

segment(255,779)

46,356

1,373(406,470)

2,238,388

1,472,748

3,203,400

42,336,085

42,336,085

81,754,075

255,433

81,498,642

RM

Group

144

Assets and liabilities

RM

Malaysia

OPERATING SEGMENT (CONT’D)

2023 (Cont’d)4.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

5,323,830

54,431,348

Inter-segment revenue

Total revenue

1,389,671(95,417)(56,656)

1,237,598(912,384)

325,214144,288469,502

Profit/(Loss) fromoperations

Finance costs

Share of loss in equityaccounted associates, netof taxProfit/(Loss) before tax

Income tax expense

Profit/(Loss) for thefinancial year

Non-controlling interests

Profit/(Loss) attributable to
Owners of the Company

Results

49,107,518

External revenue

RM

Malaysia(557,413)-(557,413)

3,133(560,546)-(28,819)(531,727)

10,292,785

428,987

9,863,798

RM

Singapore(620,317)

640,213(1,260,530)

4,767(1,265,297)-(6,968)(1,258,329)

3,937,653

234,975

3,702,678

RM

Indonesia

329,946(81,328)

411,274(33,251)444,525-(86,796)

531,321

19,264,537

54,63819,209,899

RM

VietnamOPERATING SEGMENT (CONT’D)

Revenue2022

4.

490,068(26,428)

516,496(201,181)

717,677-(9,845)727,522

13,435,679

115,999

13,319,680

RM

Philippines

856,255(224,940)

1,081,195(78,867)

1,160,062-(6,462)

1,166,524

17,573,947

41,22917,532,718

RM

Hong
Kong/
China

(818,825)

229,157(1,047,982)

110,112(1,158,094)-(91,492)(1,066,602)

5,003,324

29,093

4,974,231

RM

Taiwan(142,089)(173,337)

31,248-31,248-(6,844)38,09281,854-81,854

RM

South
Korea

(4,427)-(4,427)-(4,427)-(7,902)

3,475

1,429,781

9,520

1,420,261

RM

Cambodia(81,504)

43,887(125,391)-(125,391)-(13,147)(112,244)

17,807

13,992

3,815

RM

Myanmar(78,804)

551,512(630,316)(1,107,671)

477,355(56,656)(353,692)

887,703

125,468,715

6,252,263

119,216,452

RM

Total

Inter-

-

-

-

-

-

-

216,778(216,778)(6,252,263)(6,252,263)-

RM

elimination

segment(78,804)

551,512(630,316)(1,107,671)

477,355(56,656)(136,914)

670,925

119,216,452-

119,216,452

RM

Group

Annual Report 2023

Notes to the Financial Statements (Cont’d)145

16,420,753

16,420,753

Segment liabilities

Consolidated total
liabilities(580,531)-- Retirement benefits- Net unrealised (gain)/loss
on foreign exchange

1,676

1

- Inventory written off- Property, plant andequipment written off- trade receivables- (Reversal of)/Impairment
losses on:

51,959

-

-

-

(10)

519,841

Material non-cash items
other than depreciation andamortisation(11,200)

280,572

1,584,603

Depreciation-

1,807,667

Capital expenditure

4,320

3,966,727

3,966,727

8,398,327-

8,398,327

Amortisation of development
expenditure

Other information

42,663,475

658,736

42,004,739

Consolidated total
assetsInvestments in an associate

Segment assets

RM

Singapore

14,532

117,485--(68,015)

19,051-

18,641

3,666,822

3,666,822

3,562,133-

3,562,133

RM

Indonesia

30,505---(14,205)

262,589-

58,69911,984,249

11,984,249

11,519,550-

11,519,550

RM

Vietnam(68,478)

57,326--70,780299,848-

48,892

6,646,893

6,646,893

11,832,068-

11,832,068

RM

Philippines

27,880---244,684

51,038-74,326

5,335,392

5,335,392

20,930,018-

20,930,018

RM

Hong
Kong/
China

556,999---(38,122)

14,601--

6,513,050

6,513,050

1,828,016-

1,828,016

RM

Taiwan(18,659)

-

-

1,574

-

1,236

-

-

-

-

667

-

667

RM

South
Korea

3,969

-

-

-

-

76,121-

24,767436,687436,687

384,513-384,513

RM

Cambodia(8,378)

-

-

-

-

2,753

-

-

884,755884,755

93,154-

93,154RM

Myanmar

9,798

174,811

1,676

1,575

183,912

1,527,650

1,584,603

2,037,312

55,855,328

55,855,328

101,211,921

658,736

100,553,185

RM

Total

Inter-(13,253)

-

-

-

-

-

-

-

(17,569,771)(17,569,771)(22,033,197)-(22,033,197)

RM

elimination

segment(3,455)

174,811

1,676

1,575

183,912

1,527,650

1,584,603

2,037,312

38,285,557

38,285,557

79,178,724

658,736

78,519,988

RM

Group

146

Assets and liabilities

RM

Malaysia

OPERATING SEGMENT (CONT’D)

2022 (Cont’d)4.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)Annual Report 2023

Notes to the Financial Statements (Cont’d)

5.

147

PROPERTY, PLANT AND EQUIPMENTGroup

Furniture,
fittings
and officeequipment

Computers
andperipherals

Renovations

Total

RM

RM

RM

RM

At cost1,250,270

2,522,462

1,577,679

5,350,411

Additions

At 1 January 2022

57,575329,91051,036

438,521

Written off(6,549)(34,194)-(40,743)

Disposals-(12,028)-(12,028)

12,569(9,146)(9,477)(6,054)

At 31 December 2022/1 January 2023

1,313,865

2,797,004

1,619,238

5,730,107

Additions

254,717257,509912,200

1,424,426

Written off(197,962)(367,908)(47,078)(612,948)

Exchange differences

34,59941,43952,148128,186

At 31 December 2023

1,405,219

2,728,044

2,536,508

6,669,771

757,082

2,034,965

1,360,770

4,152,817

Charge for the financial year

99,032

255,585

196,215550,832

Written off(6,549)(32,619)-(39,168)

Disposals-(11,069)-(11,069)

5,858(10,667)(9,313)(14,122)

At 31 December 2022/1 January 2023

855,4232,236,195

1,547,672

4,639,290

Charge for the financial year

134,734

279,336

137,012551,082

Written off(154,220)(354,505)(44,074)(552,799)

Exchange differences

25,55627,86046,25899,674

At 31 December 2023

861,493

2,188,886

1,686,868

4,737,247

At 31 December 2022/
1 January 2023

43,17812,594

3,004

58,776

Written off(43,178)(12,594)(3,004)(58,776)

-

-

-

-

At 31 December 2023

543,726

539,158

849,640

1,932,524

At 31 December 2022

415,264548,215

68,562

1,032,041

Exchange differences

Accumulated depreciation
At 1 January 2022

Exchange differences

Accumulated impairment

At 31 December 2023

Carrying amountInnity Corporation Berhad

148

5.

Notes to the Financial Statements (Cont’d)

PROPERTY, PLANT AND EQUIPMENT (CONT’D)
All items of the property, plant and equipment are initially measured at costs. Subsequent to theinitial recognition, property, plant and equipment are stated at cost less accumulated depreciation
and any accumulated impairment losses.
Depreciation on property, plant and equipment is calculated to write down the cost of the assets
to their residual values on a straight line basis over their estimated useful lives. The estimateduseful lives represent common life expectancies applied in the various business segments of theGroup.
The principal depreciation annual rates used are as follows:

10% - 20%
25%
20%

Furniture, fittings and office equipment
Computers and peripherals
Renovations

At the end of the year, the Group assesses whether there is any indication of impairment. If such
indications exist, an analysis is performed to assess whether the carrying amount of the asset isfully recoverable. A write-down is made if the carrying amount exceeds the recoverable amount.

6.

LEASES
Right-of-use assets
Leasehold shop offices
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

At 1 January

7,005,419

6,093,855

63,144-

Additions

2,052,255

2,744,091-

63,144

At costModification(172,857)(385,558)--

Written off(3,027,176)(1,487,855)--

166,575

40,886--

6,024,216

7,005,419

63,144

63,144

At 1 January

3,299,139

3,810,251

31,572-

Charge for the financial year

1,687,306

976,818

31,572

31,572

Written off(3,027,176)(1,487,855)--

69,228(75)--

2,028,497

3,299,139

63,144

31,572

3,995,719

3,706,280-

31,572

Exchange differences
At 31 December

Accumulated depreciation

Exchange differences
At 31 December

Carrying amountAt 31 December

Annual Report 2023

Notes to the Financial Statements (Cont’d)

6.

149

LEASES (CONT’D)
Right-of-use assets (Cont’d)
Lease liabilities
Group
2023
RM

Company
2022
RM

2023
RM

2022
RM

At 1 January

2,722,218

1,324,985

32,522-

Additions

2,019,079

2,744,091-

63,144

Modification(192,305)(465,586)--

Lease payments(1,730,130)(1,012,586)(33,600)(33,600)

Interest expenses

178,654

88,929

1,078

2,978

97,13442,385--

3,094,650

2,722,218-

32,522

Exchange differences
At 31 December

Represented by:Current liabilities

1,632,160

1,192,357-

32,522

Non-current liabilities

1,462,490

1,529,861--

3,094,650

2,722,218-

32,522

3,094,650

2,722,218-

32,522

Lease liabilities owing to non-financial institutionsa.

The right-of-use assets are initially measured at cost, which comprise the initial amount of thelease liabilities adjusted for any lease payments made at or before the commencement dateof the leases.
After initial recognition, right-of-use assets are stated at cost less accumulated depreciation
and any accumulated impairment losses, and adjusted for any re-measurement of the leaseliabilities.

b.

The right-of-use assets are depreciated on the straight-line basis over the earlier of theestimated useful lives of the right-of-use assets or the end of the lease term. The lease terms ofright-of-use assets are one (1) to sixty-eight (68) years.

c.

The Group leases several lease contracts that include extension and termination options.
These are used to maximise operational flexibility in terms of managing the assets used in theGroup’s operations. Management exercises significant judgement in determining whether
these extension and termination options are reasonably certain to be exercised.

d.

At the end of the reporting date, one (2022: one) unit of long term leasehold shop office of theGroup with carrying amount of RM401,072 (2022: RM407,211) is charged as collateral to secure
the banking facilities granted to a subsidiary.

e.

The incremental borrowing rates applied to the lease liabilities ranged from 3.92% to 6.05%(2022: from 3.92% to 6.05%).

f.

The Group has certain leases of properties with lease term of 12 months or less. The Groupapplies the “short-term lease” exemptions for these leases.

Innity Corporation Berhad

150

6.

Notes to the Financial Statements (Cont’d)

LEASES (CONT’D)
Right-of-use assets (Cont’d)
Lease liabilities (Cont’d)g.

The following are the amounts recognised in profit or loss:
Group
2023
RM

2022
RM

2023
RM

2022
RM

1,687,306

976,818

31,572

31,572

Interest expense on lease liabilities (included in finance costs)

178,654

88,929

1,078

2,978

Expense relating to short-term leases (included in otheroperating expenses)

373,940

841,140--

Gain on lease modification (included in other operating
income)(19,448)(80,028)--2,220,452

1,826,859

32,65034,550

Represented by:Depreciation charge of right-of-use assets (included indepreciation)h.

Company

Total cash outflows for leases are as follows:
Group

i.

Company

2023
RM

2022
RM

2023
RM

2022
RM

Payments relating to short-term leases

373,940

841,140--

Payments of lease liabilities

1,730,130

1,012,586

33,60033,6002,104,070

1,853,726

33,600-

The Group made the following cash payments to purchase right-of-use assets:
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

Additions of right-of-use assets

2,052,255

2,744,091-

63,144

Financed by lease liabilities(2,019,079)(2,744,091)-(63,144)

33,176---

Cash payments on purchase of right-of-use assets

Annual Report 2023

Notes to the Financial Statements (Cont’d)

6.

151

LEASES (CONT’D)
The Group as lessee (Cont’d)
Lease liabilities (Cont’d)j.

The following table sets out the carrying amounts, the incremental borrowing rate and theremaining maturities of the lease liabilities of the Group and of the Company that are exposed
to interest rate risk:Group

Incremental
borrowingrate%

Within1 year
RM

1-2
years
RM

Total
RM

3.92 - 6.05

1,632,160

1,462,490

3,094,650

3.92 - 6.05

1,192,357

1,529,861

2,722,218

Incremental
borrowingrate%

Within1 year
RM

1-2
years
RM

Total
RM

6.05

32,522-32,52231 December 2023

Lease liabilities
Fixed rate
31 December 2022

Lease liabilities
Fixed rate

Company

31 December 2022

Lease liabilities
Fixed ratek.

The table below summarises the maturity profile of the lease liabilities of the Group and of theCompany at the end of the reporting period based on contractual undiscounted repayment
obligations:
Within1 year
RM

1-2
years
RM

Total
RM

1,733,907

1,478,231

3,212,138

Lease liabilities

1,333,745

1,615,707

2,949,452

Company

Within1 year
RM

1-2
years
RM

Total
RM

33,600-33,600Group
31 December 2023

Lease liabilities
31 December 2022

31 December 2022

Lease liabilities

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

152

7.

INTANGIBLE ASSETS
Group
2023
RM

2022
RM

At 1 January

22,302,610

20,696,724

Additions

1,778,974

1,598,791

4,630

7,095

24,086,214

22,302,610

At 1 January

17,595,926

16,004,228

Charge for the financial year

1,472,748

1,584,603

4,630

7,095

19,073,304

17,595,926

256,604

256,604

4,756,306

4,450,080

Development expenditure
Cost

Exchange differences
At 31 December

Accumulated amortisation

Exchange differences
At 31 December

Accumulated impairment
At 1 January/31 December

Carrying amounta.

Intangible assets are initially measured at cost. After initial recognition, intangible assets arecarried at cost less accumulated amortisation and any accumulated impairment losses.
The expenditure capitalised includes direct labour and cost of materials that are directly
attributable to preparing the asset for its intended use. Development expenditure is amortisedfrom the commencement of the income recognition to which the asset relates on the straightline basis over the period of expected benefit of five (5) years (2022: five (5) years).

b.

The additions to the cost of intangible assets are analysed as follows:

Group
2023
RM

2022
RM

Staff costs (Note 23)

1,774,303

1,593,091

Other software costs

4,671

5,700

1,778,974

1,598,791

Annual Report 2023

Notes to the Financial Statements (Cont’d)

8.

153

INVESTMENTS IN SUBSIDIARIES
Company
2023
RM

2022
RM

15,335,819

15,335,819

Unquoted shares, at cost
At 1 January/31 Decembera.

Investments in subsidiaries, which are eliminated on consolidation, are stated in the separate
financial statements of the Company at cost less impairment losses, if any. On disposal of suchinvestments, the difference between net disposal proceeds and their carrying amounts is
included in profit or loss.
All components of non-controlling interests shall be initially measured at fair value on theacquisition date, unless another measurement basis is required by MFRSs. The choice ofmeasurement basis is made on a combination-by-combination basis. Subsequent to initialrecognition, the carrying amount of the non-controlling interests is the amount of thoseinterests at initial recognition plus the non-controlling interests’ share of subsequent changes
in equity.

b.

The details of the subsidiaries are as follows:
Country ofincorporation/
Principal
placeof business

Effective
interest
in equity
2023

2022

Principal activities

Subsidiaries of the Company
Innity Sdn. Bhd.

Malaysia

100%

100%

Provision of technology based
online advertising solutions andother related internet services

PassionCo Sdn. Bhd.

Malaysia

100%

100%

Dormant

Innity Limited*Hong Kong

100%

100%

Investment holding company

PT Media Innity*

Indonesia

51%

51%

Provision of technology based
online advertising solutions andother related internet services

DoMedia Asia Sdn. Bhd.

Malaysia

100%

100%

Provision of technology based
online advertising solutions andother related internet services

Innity China Co., Limited

Hong Kong

80%

80%

Provision of technology based
online advertising solutions andother related internet services

Subsidiaries of Innity Sdn. Bhd.

Innity Corporation Berhad

154

8.

Notes to the Financial Statements (Cont’d)

INVESTMENTS IN SUBSIDIARIES (CONT’D)b.

The details of the subsidiaries are as follows: (Cont’d)Country ofincorporation/
Principal
placeof business

Effective
interest
in equity
2023

2022

Principal activities

Subsidiaries of Innity Sdn. Bhd. (Cont’d)Innity Philippines Inc.*

Philippines

95%

95%

Provision of technology based
online advertising solutions andother related internet services

Appsploration Sdn. Bhd.

Malaysia

75%

75%

Developing computer and mobile
software applications

Innity Shanghai Ltd.*

China

100%

100%

Dormant

Dynamic Outdoor Media
Sdn. Bhd.

Malaysia

100%

100%

Dormant

Offerstation Sdn. Bhd.

Malaysia

90%

90%

Operate promotional and sales
events information website

Innity Korea Co., Ltd. #South Korea-

80%

Dissolved

Innity Myanmar Co., Ltd. #Myanmar65%

65%

Provision of technology based
online advertising solutions andother related internet services

Innity (Cambodia) Co., Ltd. #Cambodia

100%

100%

Provision of technology based
online advertising solutions andother related internet services

Innity Singapore Pte. Ltd.*Singapore

100%

100%

Provision of technology based
online advertising solutions andother related internet services

88%

88%

Software production house

79%

79%

Provision of technology based
online advertising solutions andother related internet services

Belize80%

80%

Provision of technology based
online advertising solutions andother related internet services

Hong Kong

80%

80%

Development of content andinfluencer marketing

Subsidiaries of Innity Limited
Innity Vietnam Co., Ltd.*

Vietnam

Subsidiary of Innity Vietnam Co., Ltd.
Innity Software andAdvertising Co., Ltd.

Vietnam

Subsidiary of Innity China Co., Limited
Innity Taiwan Limited*

Passionation (Hong Kong)
Limited** Subsidiaries not audited by BDO PLT and BDO member firms.
# No statutory audit requirement.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

8.

155

INVESTMENTS IN SUBSIDIARIES (CONT’D)c.

Changes in the Group’s composition during the reporting period.
Innity Korea Co., Ltd, an 80% owned subsidiary of the Group has completed its dissolution
with the attainment of business closure certificate on 10 April 2023 with no material financial
impact to the Group.

d.

Changes in the Group’s composition during the financial year ended 31 December 2022.
There were no changes in the composition of the Group during the financial year ended
31 December 2022.

e.

Interest in subsidiaries with material non-controlling interests (“NCI”).
The Group has the following subsidiaries with NCI that is material to the Group.

2023
RM

2022
RM

Innity China Co., Limited Group (“ICCL Group”)*

1,475,392

1,681,314

PT Media Innity (“PTM”)(849,665)(34,637)

Other subsidiaries with immaterial non-controlling interests(362,701)(304,355)

263,026

1,342,322

ICCL Group*(269,934)(4,218)PTM(784,159)(640,213)

Other subsidiaries with immaterial non-controlling interests(14,045)

92,919

(1,068,138)(551,512)

Carrying amount of non-controlling interests:(Loss)/Profit attributable to non-controlling interests:

Total comprehensive (loss)/profit attributable tonon-controlling interests:
ICCL Group*(205,922)(1,143)PTM(815,028)(608,410)(13,633)

286,673(1,034,583)(322,880)

Other subsidiaries with immaterial non-controlling interests*Includes companies that are held by ICCL as disclosed in Note 8(b) to the financial statements.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

156

8.

INVESTMENTS IN SUBSIDIARIES (CONT’D)e.

Interest in subsidiaries with material non-controlling interests (“NCI”) (Cont’d)

Summarised financial information about subsidiaries with material NCIi.

Summarised statements of financial position

ICCL Group

PTM

2023
RM

2022
RM

2023
RM

2022
RM

Assets16,114,757

18,247,577

2,191,602

3,340,781

Liabilities(11,185,334)(11,049,583)(3,826,371)(3,335,413)

Net current assets

4,929,423

7,197,994(1,634,769)

5,368

Non-current assets

5,074,138

4,209,012

259,557

255,353

Non-current liabilities(2,626,603)(3,000,438)(358,798)(331,408)

Net assets/(liabilties)

7,376,958

8,406,568(1,734,010)(70,687)

Currentii.

Summarised statements of profit or loss and other comprehensive income

ICCL Group

iii.

PTM

2023
RM

2022
RM

2023
RM

2022
RM

Revenue

20,476,639

22,839,268

2,646,415

3,937,653(Loss)/Profit before tax(1,324,762)(52,333)(1,702,897)(1,311,325)(Loss)/Profit for the financial year

(1,349,668)(21,088)(1,600,325)(1,306,558)

Total comprehensive (loss)/income(1,029,610)(5,715)(1,663,323)(1,241,654)

Other summarised information

ICCL Group

PTM

2023
RM

2022
RM

2023
RM

2022
RM

687,892

1,690,215(1,125,714)

588,943

Cash flows usedin investing activities(3,536,461)(1,343,320)(4,636)(18,641)

Cash flows from/(used in) financing activities(518,685)

272,420--8

14,416--(3,367,246)

633,731(1,130,350)

570,302

Cash flows from/(used in) operating activities

Effect of changes in foreign exchange
Net (decrease)/increase in cash and cash
equivalents

Annual Report 2023

Notes to the Financial Statements (Cont’d)

9.

157

INVESTMENT IN AN ASSOCIATE
Group
2023
RM

2022
RM

Unquoted shares, at cost

108,106

108,106

Share of post-acquisition profit of an associate

82,023508,371

Exchange difference

65,30442,259255,433

658,736a.

Investment in an associate is measured at cost less impairment losses, if any, in the separate
financial statements of the Company and accounted for using the equity method in the
consolidated financial statements.

b.

The details of the associate is as follows:

Country ofincorporation/
Principal placeof businessGroup’seffective andvoting interests
2023
2022

Principal activities

Associate of the Company
Held through Innity Limited
Innity Digital Media(Thailand) Co., Ltd.
(“Innity Thailand”)*

Thailand

49%

49%

Provision of technology based
online advertising solutions andother related internet services* Associates not audited by BDO PLT and BDO member firms.

Innity Thailand is a result of the business alliance of the Group to access new customers in
Thailand market.
The summarised financial information of the material associate is as follows:
Innity Thailand
RM
2023
Assets and liabilities
Non-current assets

233,250

Current assets

2,702,798

Total assets

2,936,048

Non-current liabilities

91,722Current liabilities

2,323,034

Total liabilities

2,414,756

Net assets

521,292

Results
Revenue

3,955,092

Loss for the financial year/Total comprehensive loss for the financial year

(870,097)

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

158

9.

INVESTMENT IN AN ASSOCIATE (CONT’D)b.

The details of the associate is as follows: (Cont’d)
The summarised financial information of the material associate is as follows: (Cont’d)Innity Thailand
RM
2022
Assets and liabilities
Non-current assets

422,040

Current assets

3,335,831

Total assets

3,757,871

Current liabilities/Total liabilities

2,413,511

Net assets

1,344,360

Results
Revenue

5,237,486

Loss for the financial year/Total comprehensive loss for the financial year

(115,625)

Reconciliation of the summarised financial information presented to the carrying amount of
the investment in an associate is as follows:

Innity Thailand
RM
2023

Group’s share of net assets

255,4332022

Group’s share of net assets

c.

658,736

When the Group’s share of losses exceeds its investment in an equity-accounted investee,
the carrying amount of the investment, together with any long-term interests that form part
thereof, is reduced to zero, and the recognised of further losses is discontinued except to theextent that Group has an obligation to fund the investee’s operations or has made payment
on behalf of these investee.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

10.

159

GOODWILL
Group
2023
RM

2022
RM

442,872

442,872

442,872

442,872

-

-

Cost

At 1 January/31 December

Accumulated impairment losses
At 1 January/ 31 December

Carrying amountAt 1 January/ 31 Decembera.

Goodwill recognised in a business combination is an asset at the acquisition date and is initiallymeasured at cost. After initial recognition, goodwill is measured at cost less accumulated
impairment losses.

b.

Goodwill arising from business combinations has been allocated to two (2) individual
cash- generating units (‘CGU’) for impairment testing as follows:

Wi-Fi
DigitalAdvertising Advertising
Platform
Platform
RM

RM

RM

Goodwill, gross

148,049

294,823

442,872

Less: Impairment loss

(148,049)(294,823)(442,872)---

Carrying amount

c.

Total

In the previous financial years, the Group had recognised an impairment loss of RM148,909
and RM294,823 in respect of CGU of Wi-Fi and Digital Advertising Platform respectively as
the carrying amounts exceeded the recoverable amounts and this impairment loss had beenrecorded in profit or loss. The recoverable amounts were below the carrying amounts due todeclining business operation in these CGU.

Innity Corporation Berhad

160

11.

Notes to the Financial Statements (Cont’d)

DEFERRED TAX
Recognised deferred tax assets and liabilities
The following amounts, determined after appropriate offsetting, are shown in the statements offinancial position:
Group
2023
RM

2022
RM

Deferred tax assets

824,130

702,934

Deferred tax liabilities(1,168,135)(933,552)(344,005)(230,618)a.

The amount of the deferred tax income or expense recognised in the statements of profit orloss and statements of comprehensive income during the financial year are as follows:

Group
2023
RM

2022
RM

(230,618)

166,375- Malaysia(97,479)(485,743)- Outside Malaysia(69,398)

153,408- Malaysia(109,919)

7,091- Outside Malaysia

134,929(957)(141,867)(326,201)(307)(52,424)

28,787(18,368)(344,005)(230,618)

Note
At 1 January
Recognised in profit or loss

27

- current year

- (under)/over provision in prior years

Recognised in other comprehensive income
Exchange differences
At 31 December27(d)Annual Report 2023

Notes to the Financial Statements (Cont’d)

11.

161

DEFERRED TAX (CONT’D)
Recognised deferred tax assets and liabilities (Cont’d)b.

The components of deferred tax assets and liabilities at the end of each reporting period
comprise the tax effects of:

Group
2023
RM

2022
RM

117,544

100,566- Unutilised tax losses and unabsorbed capital allowances

8,189

19,414- Lease liabilities

11,529-- Impairment losses on trade receivables

420,774

540,619- Other deductible temporary differences

597,637

472,590

1,155,673

1,133,189

Offsetting(331,543)(430,255)

Deferred tax assets (after offsetting)824,130

702,934(1,140,128)(1,068,019)(148,702)(68,585)-(10,834)(210,848)(216,369)(1,499,678)(1,363,807)

331,543

430,255(1,168,135)(933,552)(344,005)(230,618)

Deferred tax assets (before offsetting)- Retirement benefit obligations

Deferred tax liabilities (before offsetting)- Carrying amount of development expenditure- Excess of tax capital allowances over related depreciationof property, plant and equipment- Lease liabilities- Other deductible temporary differences

Offsetting
Deferred tax liabilities (after offsetting)Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

162

11.

DEFERRED TAX (CONT’D)
Unrecognised deferred tax assets
The amounts of temporary differences for which no deferred tax assets have been recognised in
the statements of financial position are as follows (stated at gross):
Group
2023
RM

Company
2022
RM

2023
RM

2022
RM

Other deductible temporary differences

201,355

393,176--

Unabsorbed capital allowances309,283

264,030--

1,883,809

495,708

-

-

-2023

-

73,772

-

-

-2024

51,831

51,831

-

-

-2025

523,501

523,501--

13,593,056

12,208,875

389,821363,961

16,562,835

14,010,893

389,821363,961

Unutilised tax losses allowed to be utilised up
to financial year ending 31 December-No expiry date

-2026 to 2033

Deferred tax assets of the Company and certain subsidiaries have not been recognised in respect ofthese items as it is not probable that future taxable profits of the Company and certain subsidiaries
would be available against which the deductible temporary differences could be utilised.
The amount and availability of these items to be carried forward up to the periods as disclosed
above are subject to the agreement of the respective local and foreign tax authorities. Unutilised tax
losses of the holding company and subsidiaries incorporated in Malaysia can be carried forward up
to 10 consecutive years of assessment immediately following the year of assessment under the tax
legislation of Inland Revenue Board.
Unrecognised deferred tax assets arising from unutilised tax losses amounting to RM73,772 has
expired during the current financial year.

12.

INVENTORIES
Group
2023
RM

2022
RM

11,93334,505-

1,676

At costInventories

Recognised in profit or loss:
Inventories written offa.

Inventories are stated at the lower of cost and net realisable value. Cost is determined using
the first in, first out formula. Cost comprises purchase price plus cost incurred in bringing theinventories to their present condition and location.

b.

The inventories represent trading goods for e-commerce business.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

13.

163

TRADE RECEIVABLES
Group

Third parties
Amount due from an associate

Less: Impairment losses

2023
RM

2022
RM

32,712,315

29,852,606

37,00435,03432,749,319

29,887,640(2,272,827)(2,647,215)

30,476,492

27,240,425a.

Trade receivables are classified as financial assets and measured at amortised cost.

b.

Trade receivables are non-interest bearing and the normal credit terms granted by the Group
ranged from 30 days to 150 days (2022: 30 days to 150 days). Trade receivables are recognised at
the original invoices values, which represent the fair values on initial recognition.

c.

Foreign currency exposure of trade receivables of the Group other than the functional currencyof the Group entities is as follows:

Group

United States Dollar
Singapore Dollar

d.

2023
RM

2022
RM

328,580

1,158,412-

44,741

Impairment for trade receivables that do not contain a significant financing component arerecognised based on the simplified approach using the lifetime expected credit losses.
Lifetime expected credit losses are the expected credit losses that result from all possible
default events over the expected life of the asset, while 12-month expected credit losses are theportion of expected credit losses that result from default events that are possible within the
twelve (12) months after the reporting date. The maximum period considered when estimating
expected credit losses is the maximum contractual period over which the Group is exposed tocredit risk.
The Group uses a provision matrix to measure the expected credit loss (“ECL”) of tradereceivables from individual customers. Expected loss rates are calculated using the roll rate
method separately for exposures in different segments based on the geographical regions.
During this process, the probability of non-payment by the trade receivables is adjusted byforward looking information on macroeconomic factors which the Group has identified asdigital advertising expenditure (ADEX) and gross domestic product growth rate of Information
and Communications Technology industry in Malaysia, and multiplied by the amount of the
expected loss arising from default to determine the lifetime expected credit loss for the tradereceivables. For trade receivables, which are reported net, such impairments are recorded ina separate impairment account with the loss being recognised in the statements of profit orloss. On confirmation that the trade receivable would not be collectable, the gross carrying
amount of the asset would be written off against the associated impairment.
Individual assessment of impairment of trade receivables are separately assessed when it isprobable that cash due will not be received in full.

Innity Corporation Berhad

164

13.

Notes to the Financial Statements (Cont’d)

TRADE RECEIVABLES (CONT’D)d.

It requires management to exercise significant judgement in determining the probability ofdefault by trade receivables and appropriate forward-looking information.
The following table provides information about the exposure to credit risk and ECLs for tradereceivables which are grouped together as they are expected to have similar risk nature.

2023
Gross
carrying
amountLossallowance

Net balance

RM

RM

RM

13,855,965(39,837)

13,816,128

1 - 30 days past due

7,181,850(115,271)

7,066,579

31 - 60 days past due

4,385,451(28,232)

4,357,219

61 - 90 days past due

1,442,285(6,333)

1,435,952

91 - 120 days past due

2,072,601(14,250)

2,058,351

More than 120 days past due

3,811,167(2,068,904)

1,742,263

32,749,319(2,272,827)

30,476,492

Group
Current (not past due)

2022
Gross
carrying
amountLossallowance

Net balance

RM

RM

RM

8,063,798(19.798)

8,044,000

1 - 30 days past due

7,117,416(157.901)

6,959,515

31 - 60 days past due

5,136,817(72.055)

5,064,762

61 - 90 days past due

2,893,164(120.190)

2,772,974

91 - 120 days past due

2,797,091(910.758)

1,886,333

More than 120 days past due

3,879,354(1,366,513)

2,512,841

29,887,640(2,647,215)

27,240,425

Group
Current (not past due)

Trade receivables that are individually determined to be impaired at the end of eachreporting period relate to those debtors that exhibit significant financial difficulties andhave defaulted on payments. These receivables are not secured by any collateral or credit
enhancements.
As at the end of each reporting period, no collateral has been obtained by the Group. Thus,
the maximum credit risk exposure is equivalent to the gross carrying amount of tradereceivables of the Group.
During the financial year, the Group did not renegotiate the terms of any trade receivables.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

13.

165

TRADE RECEIVABLES (CONT’D)e.

Reconciliation of movements in impairment losses on trade receivables are as follows:

Group
2023
RM

2022
RM

At 1 January

2,647,215

2,585,320

Charge for the financial year

252,642

335,848

Reversal for the financial year

(659,112)(151,936)

Written off(66,078)(73,766)

98,160(48,251)

2,272,827

2,647,215

Exchange differences
At 31 December

14.

f.

Included in trade receivables is amount due from subsidiaries of a corporate shareholder whichamounted to RM288,800 (2022: RM155,776).

g.

Trade receivables of a subsidiary amounting to RM7,000,000 (2022: RM8,666,666) has been
pledged to a licensed bank for factoring facility granted to the subsidiary.

OTHER RECEIVABLES, DEPOSITS, CONTRACT ASSETS AND
PREPAYMENTS
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

1,138,193

1,314,117

9,000

-

Amounts due from subsidiaries--

1,689,818

893,815

Amount due from an associate

367,623

105,265

150,846

62,807

1,505,816

1,419,382

1,849,664

956,622(552,647)(547,845)(146,888)(116,794)

953,169

871,537

1,702,776

839,828

Deposits

583,454576,665

1,500

1,500

Total other receivables and deposits

1,536,623

1,448,202

1,704,276

841,328

Contract assets

3,425,020

2,623,046--

Prepayments

1,171,614

1,250,300

20,69823,516

6,133,257

5,321,548

1,724,974

864,844

Other receivables

Less: Impairment lossesa.

Other receivables and deposits are classified as financial assets and measured at amortised
cost.

b.

Amounts due from subsidiaries represent payments made on behalf and advances given,
which are unsecured, interest-free and receivable within next twelve months in cash and cash
equivalents except for an amount of RM1,217,101 (2022: RM732,404) which bears interest ranging
from 2.45% to 2.60% (2022: 1.73%) per annum.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

166

14.

OTHER RECEIVABLES, DEPOSITS, CONTRACT ASSETS AND
PREPAYMENTS (CONT’D)c.

Amount due from an associate represents payments made on behalf and advances given,
which are unsecured, interest-free and receivable within next twelve months in cash and cash
equivalents except for an amount of RM150,846 (2022: RM62,807) which bears interest ranging
from 2.45% to 2.60% (2022: 1.73%) per annum.

d.

Foreign currency exposure of other receivables (including amounts due from an associate)and deposits of the Group other than the functional currency of the Group entities is as follows:

Group

United States Dollar

e.

2023
RM

2022
RM

62,762936

Impairment for other receivables, including amounts due from subsidiaries and an associate
are recognised based on the general approach of MFRS 9. The methodology used to determine
the amount of the impairment is based on whether there has been a significant increasein credit risk since initial recognition of the financial asset by comparing the risk of default
occurring over the expected life with the risk of default since initial recognition.
For balances in which the credit risk has not increased significantly since initial recognitionof the financial asset, 12-month expected credit losses along with gross interest income arerecognised. For balances in which credit risk has increased significantly, lifetime expectedcredit losses along with the gross interest income are recognised. Other receivables that are
individually determined to be impaired at the end of each reporting period relate to those
debtors that exhibit significant financial difficulties and have defaulted on payments.
Generally, the Group and the Company consider loans and advances to subsidiaries and an
associate to have low credit risk. The Group and the Company assume that there is a significant
increase in credit risk when the financial position of a subsidiary or an associate deteriorates
significantly. As the Group and the Company are able to determine the timing of paymentsof the subsidiaries’ and associate’s loans and advances when they are payable, the Group andthe Company consider the loans and advances to be in default when the subsidiaries andthe associate are not able to pay when demanded. The loan or advance of the subsidiary or
associate to be considered as credit impaired when:•

the subsidiary or associate is unlikely to repay its loan or advance to the Group or theCompany in full;•the subsidiary or associate is continuously loss making and is having a deficit shareholders’fund; and•past due 60 days.

The Group and the Company determine the probability of default for these loans and advancesindividually using internal information available.
Reconciliation of movements in impairment losses on other receivables are as follows:Group
Credit Impaired
At 1 January
Exchange differences
At 31 December

2023
RM

2022
RM

547,845

550,115

4,802(2,270)552,647

547,845

Annual Report 2023

Notes to the Financial Statements (Cont’d)

14.

167

OTHER RECEIVABLES, DEPOSITS, CONTRACT ASSETS AND
PREPAYMENTS (CONT’D)e.

The following tables provide information about the exposure to credit risk and ECLs for
subsidiaries’ and associate’s loans and advances as at 31 December 2023 and 31 December 2022:

31 December 2023

Gross
carrying
amountImpairment
lossesNetbalance

RM

RM

RM

367,623-*

367,623

Low credit risk

1,693,776-*

1,693,776

Credit impaired

146,888(146,888)-

1,840,664(146,888)

1,693,776

Grosscarrying
amountImpairment
lossesNetbalance

RM

RM

RM

105,265-*

105,265

Low credit risk

839,828-*

839,828

Credit impaired

116,794(116,794)-

956,622(116,794)

839,828

Group
Low credit risk

Company

31 December 2022Group
Low credit risk

Company* Expected credit loss is negligible.

Reconciliation of movements in impairment losses on amounts due from subsidiaries are as
follows:

Company2023

2022

At 1 January

116,794

60,086Charge for the financial year

66,64956,708

Written off(36,555)-

At 31 December

146,888

116,794

Innity Corporation Berhad

168

14.

Notes to the Financial Statements (Cont’d)

OTHER RECEIVABLES, DEPOSITS, CONTRACT ASSETS AND
PREPAYMENTS (CONT’D)f.

Contract assets represent the timing differences in revenue recognition and the billings.
The billings are issued upon the completion of contracts.
Contract assets are transferred to receivables when the rights to economic benefits become
unconditional. This usually occurs when the Group issues billing to the customer. There is no
significant changes in the contract assets during the financial year.
No expected credit losses were recognised arising from contract assets as it is negligible.

15.

CASH AND BANK BALANCES
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

Cash and bank balances

21,939,101

29,427,005

238,197

420,706

Fixed deposits with licensed banks

10,841,725

6,012,021--

32,780,826

35,439,026

238,197

420,706

Less: Short term deposits with maturity period
more than three (3) months(8,829,918)(3,955,539)--

Less: Fixed deposits pledged to licensed banks(2,011,807)(2,056,482)--

Less: Bank overdraft (Note 21)(1,367,179)

-

-

-

Cash and cash equivalents included in thestatements of cash flows

20,571,922

29,427,005

238,197

420,706a.

Cash and bank balances are financial assets that are measured at amortised cost which havean insignificant risk of changes in fair value, and are used by the Group and the Company in the
management of their short term commitments.

b.

Bank balances earn interest at floating rates based on daily bank deposit rates. Deposits
with licensed banks are made for varying periods of one (1) month to twelve (12) months(2022: one (1) month to twelve (12) months), depending on the immediate cash requirementsof the Group, and earn interest at rates ranging from 0.65% to 5.00% (2022: 0.10% to 2.70%) per
annum.
Fixed deposit of a subsidiary amounting to RM2,011,807 (2022: RM1,912,744) has been pledged
to licensed banks for credit facilities granted to the subsidiary of the Group as disclosed in
Note 21 to the financial statements. In the previous financial year, another fixed deposit of a
subsidiary amounted to RM143,738 had been pledged to third party for supply of services tothe subsidiary.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

15.

169

CASH AND BANK BALANCES (CONT’D)c.

Foreign currency exposure of cash and bank balances other than the functional currency of
the Group entities is as follows:

Group
2023
RM

2022
RM

Chinese Renminbi

35,871

20,995Hong Kong Dollar

168,639

161,922

Singapore Dollar

228

10,2959,911,173

9,521,974

United States Dollar

d.

16.

No expected credit losses were recognised arising from deposits with financial institutions
because the probability of default by these financial institutions were negligible.

SHARE CAPITALGroup and Company
2023

2022

Number ofsharesAmount
RM

Number ofsharesAmountRM

139,403,415

19,477,031

139,403,415

19,477,031

Issued and fully paid ordinary shareswith no par value
At 1 January/31 December

The owners of the Company are entitled to receive dividends as and when declared by the Company
and entitled to one (1) vote per ordinary share at meetings of the Company. All ordinary shares rankpari passu with regard to the residual assets of the Company.

Innity Corporation Berhad

170

17.

Notes to the Financial Statements (Cont’d)

RESERVES
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

Reverse acquisition reserve(legal capital adjustment)(2,512,173)(2,512,173)--

Foreign currency translation reserve

1,442,996

736,807--(1,069,177)(1,775,366)--

20,747,110

21,849,180(3,787,479)(3,950,634)

19,677,933

20,073,814(3,787,479)(3,950,634)

Retained profits/(Accumulated losses)a.

Reverse acquisition reserve
Reverse acquisition reserve arose from the reverse acquisition of the Company by Innity
Sdn. Bhd..

b.

Foreign currency translation reserve
Foreign currency translation reserve is used to record foreign currency exchange differences
arising from the translation of the financial statements of foreign operations whose functional
currencies are different from that of the presentation currency of the Group. It is also used
to record the exchange differences arising from monetary items which form part of the net
investment in foreign operations of the Group, where the monetary item is denominated ineither the functional currency of the reporting entity or the foreign operation.

18.

RETIREMENT BENEFIT OBLIGATIONS
Group

Present value of retirement benefit obligations/Net liability
arising from retirement benefit obligations

a.

2023
RM

2022
RM

513,232

442,031Retirement benefit obligations are post employment benefit plans other than defined
contribution plans and under which the pension benefits payable to employees are usually
determined by reference to employee’s earning and/or length of service.
The defined benefit liability recognised is net total of the present value of the defined benefit
obligation at the reporting date together with adjustments for unrecognised past service
cost.
The present value of the defined benefit obligation is determined by independent qualified
actuaries using the Projected Unit Credit Method, by discounting estimated future cash
outflows using interest rates of high quality corporate bonds or market rates on government
bonds that are denominated in the currency in which the benefits will be paid, and that haveterms to maturity approximating the terms of the defined benefit obligations.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

18.

171

RETIREMENT BENEFIT OBLIGATIONS (CONT’D)a.

Remeasurements comprising actuarial gains or losses arising from experience adjustmentsor changes in actuarial assumptions are charged or credited to equity through othercomprehensive income in the reporting period in which they arise and it would not bereclassified to profit or loss in subsequent periods.

b.

The movements in the present value of the retirement benefit obligations are as follows:

Group
2023
RM

2022
RM

442,031502,549- current service cost

106,127

146,605- interest cost

27,94328,206- gain on settlement(87,714)-

1,567(219,681)

Exchange differences

23,278(15,648)

At 31 December

513,232

442,031

At 1 January
Expenses/(Income) recognised in profit or loss
(included in staff costs) (Note 23)

Remeasurement of retirement benefit obligations
recognised in other comprehensive incomec.

The Group provides retirement benefit obligations for qualifying employees of its overseas
subsidiaries, PT Media Innity and Innity Philippines Inc., in accordance with the legislations
established in Indonesia and Philippines respectively.
The principal actuarial assumptions used are as follows:

Discount rate%

Annual salary
increase%- Indonesia

7.00

8.00

- Philippines

6.61

5.00

- Indonesia

7.25

8.00

- Philippines

7.81

5.00

For the reporting period
2023

2022

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

172

18.

RETIREMENT BENEFIT OBLIGATIONS (CONT’D)d.

Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the retirement
benefit obligation by the amounts shown below.
Group
2023
RM

2022
RM

- if 1% increase(88,489)(67,049)- if 1% decrease

85,67380,855- if 1% increase

84,67380,165- if 1% decrease(89,066)(67,640)

Discount rate:

Annual salary:The sensitivity analysis presented above may not be representative of the actual change in theretirement benefit obligations as it is unlikely that the change in assumptions would occur inisolation of one another as some of the assumptions may be correlated.

19.

TRADE PAYABLES
Group

Third parties
Amount due to an associate

2023
RM

2022
RM

20,990,365

21,419,905

13,178

11,26621,003,543

21,431,171a.

Trade payables are classified as financial liabilities and measured at amortised cost.

b.

Trade payables are non-interest bearing and the normal trade credits granted to the Group
range from 30 to 90 days (2022: 30 to 90 days).

c.

Included in trade payables is provision of direct costs to publishers for on-goingadvertising activities as of end of the reporting period which amounted to RM14,191,612(2022: RM15,183,527).
The provision of direct costs to the publishers are based on rate card profit margin andthe number of unit served for each of the on-going advertising campaign as of end ofreporting period. Actual payments may differ from these direct cost provided when the final
settlements are reached between the parties. However, the Group does not expect material
differences to arise from the final settlements with the publishers upon completion of thecampaigns.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

19.

173

TRADE PAYABLES (CONT’D)d.

Foreign currency exposure of trade payables of the Group other than the functional currencyof the Group entities is as follows:
Group
2023
RM

2022
RM

Chinese Renminbi

15,105-Hong Kong Dollar

4,259

6,132

Indonesian Rupiah

542

365

-

38,339

New Taiwan Dollar

5,897

15,836

Philippines Peso784

15,743Singapore Dollar

5,568

917

Thai Baht

14,96732,267

250,862355,955

268

463

Korean Won

United States Dollar
Vietnamese Dong

20.

OTHER PAYABLES, CONTRACT LIABILITIES AND ACCRUALSGroupCompany

2023
RM

2022
RM

2023
RM

2022
RM

-

-

1,059,454

209,840

2,569,091

1,684,740

40,221

2,803

Amount due to a subsidiary

-

-

-

330,411Amount due to an associate

19,118

16,970--Accruals

4,819,781

4,448,247

404,863

457,461

Other payables and accruals

7,407,990

6,149,957

445,084

790,675

Contract liabilities

4,013,531

3,154,780--

Indirect tax payable

2,219,772

2,104,059--

Statutory liabilities

1,105,502

977,104

104,900

93,507

14,746,795

12,385,900

549,984

884,182

14,746,795

12,385,900

1,609,438

1,094,022

Non-current liabilities
Amount due to a subsidiary

Current liabilities
Other payables

Total other payables, contract liabilities
and accruals

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

174

20.

OTHER PAYABLES, CONTRACT LIABILITIES AND ACCRUALS (CONT’D)a.

Other payables and accruals are classified as financial liabilities and measured at amortised
cost.

b.

The contract liabilities are stated at cost and represent the obligation primarily related tothe advance consideration received or due from customers, which revenue is recognisedover a period of time for services to be rendered. The contract liabilities are expected to be
derecognised when the performance obligations of the contract are met.
The amount of RM3,154,780 recognised in contract liabilities at the beginning of the financial
year has been recognised as revenue for the financial year ended 31 December 2023. The
amount of RM4,013,531 recognised in contract liabilities at the end of the reporting period
is expected to be recognised as revenue in the next financial year. There is no significant
changes in the contract liabilities during the financial year.

c.

Non-current amount due to a subsidiary represents advances and payments made on
behalf, which are unsecured, interest-free and payable after twelve (12) months in cash andcash equivalents. The carrying amount of the non-current amount due to a subsidiary isreasonable approximation of its fair value due to the insignificant impact of discounting.
In the previous financial year, current amount due to a subsidiary represented advances andpayments made on behalf, which were unsecured, interest-free and payable within next
twelve (12) months in cash and cash equivalents except for an amount of RM237,846 whichbore interest at 1.73% per annum.

d.

Amount due to an associate represents advances and payments made on behalf, which are
unsecured, interest-free and payable within twelve (12) months in cash and cash equivalents.

e.

Foreign currency exposure of other payables and accruals of the Group other than thefunctional currency of the Group entities is as follows:Group

New Taiwan Dollar
Singapore Dollar
Thai Baht
United States Dollar

21.

2023
RM

2022
RM

69

-

22,836

-

854

745

42,38675,373

BORROWINGS
Group
2023
RM

2022
RM

245,788

277,707

Secured:Non-current
Term loan

Current
Term loan
Bank overdraft

33,33532,286

1,367,179-

1,400,514

32,286

Annual Report 2023

Notes to the Financial Statements (Cont’d)

21.

175

BORROWINGS (CONT’D)
Group
2023
RM

2022
RM

Term loan

279,123

309,993

Bank overdraft

1,367,179-

1,646,302

309,993

1,400,514

32,286Later than 1 year and not later than 5 years

145,126

140,648More than 5 years

100,662

137,059

1,646,302

309,993

Secured: (Cont’d)
Total borrowings

Maturity of borrowings:
Not later than 1 year

Total
a.

Borrowings are classified as financial liabilities measured at amortised cost.

b.

On 3 January 2020, Innity Sdn. Bhd. obtained a term loan from a financial institution.
The salient terms of the facility are as follows:

c.

d.

i.

Facility amount: RM357,000.

ii.

Bank interest rate: 1.77% p.a. + Kuala Lumpur Interbank Offered Rate.

iii.

Purpose: To finance the purchase of 1 unit of office lot known as Unit No. C605, Block
C, Level 6, Kelana Square, Jalan SS7/26, Kelana Jaya, 47301 Petaling Jaya, Selangor Darul
Ehsan.

iv.

Tenure: Ten (10) years or one hundred and twenty (120) months.

v.

Payment: Principal shall be repayable in monthly instalments and such instalment
amounts shall be inclusive of interest commencing from May 2021.

The secured borrowings of the Group are secured by the following:i.

A fixed charge over a subsidiary’s office building as disclosed in Note 6(d) to the financial
statements;ii.

Pledge of fixed deposits of the Group with licensed banks as disclosed in Note 15(b) to thefinancial statements; andiii.

Corporate guarantee by the Company.

The weighted average effective interest rates are as follows:
Group
2023
%

2022
%

Term loan

4.91

4.03

Bank overdraft

7.99

-

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

176

21.

BORROWINGS (CONT’D)e.

The term loan and bank overdraft of the Group are categorised as Level 2 in the fair value
hierarchy. There is no transfer between levels in the hierarchy during the financial year.

f.

The borrowings are denominated in Ringgit Malaysia.

g.

The table below summarises the maturity profile of the Group’s borrowings at the end ofreporting period based on contractual undiscounted repayment obligations:Ondemandor within
1 year1 to 5years

Over
5 years

Total

RM

RM

RM

RM

42,206

168,825

105,060

316,091

Bank overdraft

1,367,179--

1,367,179

Total undiscounted financial liabilities

1,409,385

168,825

105,060

1,683,270

42,206

168,825

144,480

355,511

Group
2023
Term loan

2022
Term loan/Total undiscounted financial
liabilities

h.

22.

Carrying amount of the borrowings are reasonable approximation of fair values due to thecurrent rates offered to the Group approximate the market rates of similar borrowing of thesame remaining maturities.

REVENUEGroup

Company

2023
RM

2022
RM

2023
RM

2022
RM

113,713,834

118,960,358--- subsidiaries--

3,965,762

3,542,054- an associate

298,655

256,094

298,655

256,094

114,012,489

119,216,452

4,264,417

3,798,148--

600,000

750,000

114,012,489

119,216,452

4,864,417

4,548,148

Revenue from contracts with customers:
Technology based online advertising solutions
Management fees from:

Other revenue:
Dividend income from a subsidiaryAnnual Report 2023

Notes to the Financial Statements (Cont’d)

22.

177

REVENUE (CONT’D)a.

Revenue from sale of technology based online advertising solutions is recognised over time
when the services have been rendered to the customer and coincides with the delivery ofservices and acceptance by customers.
There is no significant financing component in the revenue arising from services rendered as
the services were made on the normal credit terms not exceeding twelve (12) months.

23.

b.

Management fees from the provision of management services to the subsidiaries and theassociate are recognised over time when the subsidiaries and the associate simultaneously
receive and consume the benefits.

c.

Dividend income is recognised when the right of the Company to receive payment isestablished.

d.

Revenue from contracts with customers is disaggregated in Note 4 by geographical market.

STAFF COSTS
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

Salaries, wages and bonuses

40,069,194

35,123,694

527,097439,766

Defined contribution plan

3,035,803

2,542,830

42,361

16,42546,356

174,811--

1,981,392

3,370,800

91,90456,16745,132,745

41,212,135

661,362

512,358(1,774,303)(1,593,091)--

43,358,442

39,619,044

661,362

512,358

Defined benefit plan (Note 18)
Other employee related expenses

Staff costs recognised as intangible assets(Note 7)

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

178

23.

STAFF COSTS (CONT’D)a.

The number of Directors of the Group where total remuneration during the reporting period
falls within the following bands is analysed as follows:
2023

2022

RM300,001 to RM350,000

1

1

RM350,001 to RM400,000

1

1

RM750,001 to RM800,000-

1

RM800,001 to RM850,000

1-

RM900,001 to RM950,000-

1

RM1,00,001 to RM1,050,000

1-

RM Nil2

4

Below RM50,000

54Executive Directors:

Non-Executive Directors:b.

The remuneration received and receivable by the Directors of the Company during thereporting period are as follows:Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

Other benefits*

2,017,334

1,964,855--

Defined contribution plan

225,236

220,965--

Fees included in profit or loss

331,226

246,711--2,573,796

2,432,531--

Remuneration other than fees
included in profit or loss

10,50010,50010,50010,500Fees included in profit or loss

184,800

126,000

184,800

126,000

195,300

136,500

195,300

136,500

2,769,096

2,569,031

195,300

136,500

Executive Directors:

Non-Executive Directors:

Total* Other benefits include salaries, bonuses, allowances, social security costs and employment insurance
scheme.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

24.

179

EMPLOYEES’ SHARE SCHEME (“ESS”)
The ESS is granted by the By-Laws which were approved by the shareholders on 1 July 2015. On
4 June 2018, the Company implemented ESS, which is in force for a period of five (5) years until
3 June 2023 (“the scheme period”).
The salient features of the ESS as contained in the By-Laws are as follows:a.

The ESS is made available to Senior Management and full-time Executive Directors who are
confirmed employees of the Company and its subsidiaries as defined in the Companies Act
2016 in Malaysia, as amended from time to time, and any re-enactment thereof;b.

The total number of shares offered under the ESS shall not, in aggregate, exceed 5% of theissued and paid-up share capital of the Company at any time during the existence of the ESS;c.

The Participant will not be required to pay for the new ESS Shares that may be issued andallotted to them and/or the existing Company Shares to be transferred to them pursuant to
the Proposed ESS;d.

The actual number of shares, which may be offered to any eligible employee shall be at thediscretion of the ESS Committee provided that the number of shares offered are not less than
100 shares and in multiples of 100 shares and are subject to the following:i.

not more than 80% of the shares available under the ESS shall be allocated in aggregate
to the Senior Management of the Company and its subsidiaries; andii.

not more than 10% of the total number of ESS Shares shall be allocated to a Participant,who, either singly or collectively through persons connected with the Participant, holds
twenty percent (20%) or more of our issued and paid-up share capital.

e.

A share award granted under the ESS may be exercised by the grantee upon achieving thevesting conditions set by the ESS Committee; andf.

The shares shall on issue and allotment rank pari passu in all respects with the then existing
issued shares of the Company.

Since the implementation of the ESS until its expiry on 3 June 2023, a total of 1,000,000 shares award
had been granted to a Senior Management of the Group. The entire 1,000,000 shares award had
been exercised since the implementation of the ESS until its expiry.
There were no share award granted to the Executive Directors of the Company and its subsidiaries
during the financial year. Since the implementation of the ESS until its expiry, none of the Executive
Directors of the Company and its subsidiaries had been granted any share award under the ESS.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

180

25.

(LOSS)/PROFIT FROM OPERATIONSGroup

Company

2023
RM

2022
RM

2023
RM

2022
RM

187,000

177,000

93,00089,00012,60012,60012,60012,600268,996236,902--373,940

841,140--- trade receivables

252,642

335,848--- other receivables--

66,64956,708- realised

99,547

369,621

21,283

11,613- unrealised

211,816

816,917

-

855

1,373

1,575

-

-

-

(810)

-

-

- realised(108,293)(61,213)--- unrealised(467,595)(820,372)--(659,112)(151,936)--(221,594)(115,735)(2,126)(43,764)- subsidiaries--(22,577)(13,278)- an associate(3,174)(4,188)(1,351)(1,404)(Loss)/Profit from operations isarrived at after charging:
Auditors’ remuneration- auditors of the Company- statutory- current year
- non-statutory- current year
- auditors of subsidiaries- current year
Expenses relating to short-term leases
Impairment losses on financial assets

Loss on foreign exchange

Property, plant and equipment written
off:
and crediting:
Gain on disposal of property, plant andequipment
Gain on foreign exchange

Reversal of impairment losses on
financial assets:- trade receivables
Interest income from:- fixed and short term bank deposits

Annual Report 2023

Notes to the Financial Statements (Cont’d)

26.

181

FINANCE COSTS
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

-

-

36,15275,689- term loan

16,47813,120--- bank overdraft

31,21334,865--- lease liabilities

178,654

88,929

1,078

2,978

226,345

136,914

37,23078,667

Interest expense on:- advance from a subsidiary

27.

INCOME TAX EXPENSES
Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

- Malaysia

735,207457,215--- Outside Malaysia

635,468

359,322--- Malaysia(43,301)(23,483)--- Outside Malaysia(10,523)(11,584)--

1,316,851

781,470--- Malaysia

125,880

485,743--- Outside Malaysia

40,997(153,408)--

Estimated income tax payable- current year

- over provision in prior years

Deferred tax (Note 11)- current year

- (over)/under provision in prior years- Malaysia- Outside Malaysia

109,919(7,091)--(134,929)

957

-

-

141,867

326,201--

1,458,718

1,107,671

-

-

a.

Malaysian income tax is calculated at the statutory rate of 24% (2022: 24%) of the estimatedtaxable profits for the fiscal year.

b.

Tax expense for other taxation authorities are calculated at the rates prevailing in those
respective jurisdictions.

Innity Corporation Berhad

182

27.

Notes to the Financial Statements (Cont’d)

INCOME TAX EXPENSES (CONT’D)c.

Numerical reconciliation between the tax expense and the product of accounting (loss)/profit
multiplied by the applicable tax rate of the Group and of the Company are as follows:Group

Company

2023
RM

2022
RM

2023
RM

2022
RM

(Loss)/Profit before tax(710,506)

477,355

163,155

315,239

Add: Share of (loss)/profit in equityaccounted associate, net of tax

426,348

56,656--

Adjusted (loss)/profit before tax(284,158)

534,011

163,155

315,239

Tax at Malaysian statutory tax rate of 24%(2022: 24%)

(68,198)

128,163

39,15775,657

1,886,001

1,460,110

98,637

113,540

Tax effects of:- expenses not deductible for tax
purposes- different tax rates in other countries

126,953(110,179)--(1,019,670)(610,986)(144,000)(180,000)Deferred tax assets not recognised during
the financial year

622,443

430,195

6,206-

Utilisation of previously unrecognised
deferred tax assets(9,977)(47,032)-(9,197)-(101,399)--- income tax payable(53,824)(35,067)--- deferred tax(25,010)(6,134)--

1,458,718

1,107,671--- income not subject to tax

Tax incentives on multiple deductibility of
expenses
Over provision in prior years

Annual Report 2023

Notes to the Financial Statements (Cont’d)

27.

183

INCOME TAX EXPENSES (CONT’D)d.

Tax on each component of other comprehensive income/(loss) is as follows:Group
Before tax
RM

Tax effect
RM

After tax
RM

(1,567)(307)(1,874)

740,635-

740,635

219,681(52,424)

167,257

1,151,712-

1,151,712

2023
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of retirement benefit obligations

Items that may be reclassified subsequently to
profit or loss:
Foreign currency translation

2022
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of retirement benefit obligations

Items that may be reclassified subsequently to
profit or loss:
Foreign currency translation

28.

LOSS PER ORDINARY SHAREa.

Basic loss per ordinary share
Basic loss per ordinary share for the financial year is calculated by dividing the loss for thefinancial year attributable to owners of the Company by the weighted average number ofordinary shares outstanding during the financial year.

Group
2023

2022

Loss for the financial year attributable to owners of theCompany (RM)

(1,101,087)(78,804)

Weighted average number of ordinary shares in issue

139,403,415

139,403,415(0.79)(0.06)

Basic loss per ordinary share (sen)b.

Diluted loss per ordinary share
The Group has no potential ordinary shares in issue as at reporting date and therefore, diluted
loss per ordinary shares equals basic loss per ordinary share.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

184

29.

SIGNIFICANT RELATED PARTY DISCLOSURESa.

Identities of related parties
Parties are considered to be related to the Group if the Group has the ability, directly or indirectly,
to control the party or exercise significant influence over the party in making financial andoperating decisions, or vice versa, or where the Group and the party are subject to common
control or common significant influence. Related parties may be individuals or other entities.
Related parties of the Group include:b.

i.

Direct and indirect subsidiaries as disclosed in Note 8(b);ii.

An associate as disclosed in Note 9(b); andiii.

Key management personnel are defined as those persons having the authority andresponsibility for planning, directing and controlling the activities of the Group either
directly or indirectly. The key management personnel comprise mainly Executive Directorsof the Company whose remuneration is disclosed in Note 23(b).

Related party transactions
The Group and the Company had the following transactions with the related parties during
the financial year:

Group
Type oftransactions

2023
RM

2022
RM

Sales

36,812

136,510Purchases

154,413179,202

Interest income

3,174

4,188

Management fee
income298,655

256,094

Royalty fee income

101,093

131,838- People ’n Rich - H Sdn. Bhd.

Sales

419,058

102,000- Beginnings Communications, Inc.

Sales

90,18426,547- PT Daniswara Amanah Cipta

Sales326,516

372,570

Purchase

5,106

9,588

Sales

36,699

-

Sales

5,093

-

Staff recruitment
expense

2,248

1,097

With an associate:- Innity Digital Media (Thailand) Co., Ltd.

With subsidiaries of corporateshareholders of the Company:- Hakuhodo Hong Kong Ltd.
- Hakuhodo (Singapore) Pte Ltd- 104 Corporation Ltd.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

29.

185

SIGNIFICANT RELATED PARTY DISCLOSURES (CONT’D)b.

Related party transactions (Cont’d)
The Group and the Company had the following transactions with the related parties during thefinancial year: (Cont’d)

Group
Type oftransactions

2023
RM

2022
RM

Sales

-

2,640

Purchase-

9Type oftransactions

2023
RM

2022
RM

Accounting fee
expense14,40012,000Rental expense

33,60033,600Interest expense

36,15275,689Management fee
income1,641,280

1,512,195

Dividend income

600,000

750,000

Interest income

6,391

3,412

Management fee
income282,804

245,474- DoMedia Asia Sdn. Bhd.

Management fee
income134,542

137,215- Innity China Co., Limited

Interest income

211-

Management fee
income362,887

326,355

Interest income

2,408

1,859

Management fee
income353,114324,968- Appsploration Sdn. Bhd.

Management fee
income76,35173,088- Offerstation Sdn. Bhd.

Interest income

2,113

679

Management fee
income46,19046,717

With major shareholder of a
subsidiary:- Myanmar Marketing Research
Development

CompanyWith subsidiaries:- Innity Sdn. Bhd.

- PT Media Innity- Innity Philippines Inc.

Innity Corporation Berhad

186

29.

Notes to the Financial Statements (Cont’d)

SIGNIFICANT RELATED PARTY DISCLOSURES (CONT’D)b.

Related party transactions (Cont’d)
The Group and the Company had the following transactions with the related parties during thefinancial year: (Cont’d)Company
Type oftransactions

2023
RM

2022
RM

Interest income-

351

Management fee
income-8,960

Interest income

726

363

Management fee
income

9,048

8,009

Interest income

1,677

310

Management fee
income155,887

128,129

Management fee
income515,146

388,062Interest income

3,378

4,376

Management fee
income208,586

184,190

Interest income

5,673

1,928

Management fee
income179,927

158,691

Interest income

1,351

1,404

Management fee
income298,655

256,094

With subsidiaries: (Cont’d)- Innity Korea Co., Ltd.

- Innity Myanmar Co., Ltd.

- Innity (Cambodia) Co., Ltd.

- Innity Singapore Pte. Ltd.
- Innity Software and Advertising Co., Ltd.

- Innity Taiwan Limited

With an associate:- Innity Digital Media (Thailand)Co., Ltd.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

30.

187

FINANCIAL GUARANTEESThe Company has financial guarantee contracts of RM3,557,000 (2022: RM3,557,000) in respectof financial guarantees given to financial institution for banking facilities granted to a subsidiary.
The Company monitors the ability of the subsidiary to service its loans regularly.
Financial guarantees issued are initially measured at fair value. Subsequently, they are measured
at higher of the amount of the loss allowance; and the amount initially recognised less, whenappropriate, the cumulative amount of income recognised in accordance with the principles of
MFRS 15.
The Company assumes that there is significant increase in credit risk when the subsidiary’s
financial position deteriorates significantly. The Company considers a financial guarantee tobe credit impaired when the subsidiary is unlikely to repay its credit obligation to the bank infull or the subsidiary is continuously loss making and is having a deficit shareholders fund.
The Company determines the probability of default of the guaranteed loans individually using
internal information available.
Financial guarantees have not been recognised since the fair value was not material on initialrecognition. As at the end of the reporting period, there was no indication that the subsidiarywould default on repayment.
Maturity profile of financial guarantee contracts of the Company at the end of each reporting
period based on contractual undiscounted repayment obligations is repayable upon any default
by the subsidiary in respect of the guaranteed bank facilities.
The maximum credit risk exposure of the financial guarantees issued is limited to the credit
amount utilised of RM1,646,302 (2022: RM309,993). The financial guarantees have low credit risk at
the end of the year as the financial guarantee is unlikely to be called by the financial institutions.

31.

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKMANAGEMENTa.

Financial risk management objectives and policies
The Group’s and the Company’s overall financial risk management programme seek tominimise potential adverse effects on financial performance of the Group and the Company.
The Group and the Company do not hold or issue derivative financial instruments for
speculative purposes.
There has been no change in the Group’s and the Company’s exposure to these financial risks
or the manner in which it manages and measures risk.
i.

Foreign exchange risk management
Foreign currency risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates.
The Group operates internationally and is exposed to foreign exchange risk. Foreign
currency denominated assets and liabilities together with expected cash flows fromhighly probable sales and purchases give rise to foreign exchange exposures. Foreignexchange exposures in transactional currencies other than functional currencies of theoperating entities are kept to an acceptable level. The currencies giving rise to this risk are
Chinese Renminbi (“RMB”), Korean Won (“KRW”), Hong Kong Dollar (“HKD”), Indonesian
Rupiah (“IDR”), New Taiwan Dollar (“TWD”), Philippines Peso (“PHP”), Singapore Dollar(“SGD”), Thai Baht (“THB”), United States Dollar (“USD”) and Vietnamese Dong (“VND”).

31.

a.

i.

20,995-

Other payables, contract
liabilities and accruals

Net exposure-

Trade payables

20,995-

Cash and bank balances-(38,339)-(38,339)

-

-

-

KRW
RM

RMB
RM

Trade receivables

164,380-(4,259)168,639

-

-

HKD
RM

20,766-

Other receivables anddeposits

2022

Net exposure

Other payables, contract
liabilities and accruals

35,871(15,105)

Cash and bank balances-

Trade payables-

Trade receivables

Other receivables anddeposits

2023

RMB
RM

155,790-(6,132)

161,922

-

-

HKD
RM

(542)

-

(542)

-

-

-

IDR
RM

(365)

-

(365)

-

-

-

IDR
RM

(5,966)(69)(5,897)

-

-

-

TWD
RM

(15,836)-(15,836)

-

-

-

TWD
RM

(784)

-

(784)

-

-

-

PHP
RM

(15,743)-(15,743)

-

-

-

PHP
RM

(28,176)(22,836)(5,568)

228

-

-

SGD
RM

54,119-(917)

10,295-44,741

SGD
RM(15,821)(854)(14,967)

-

-

-

THB
RM

(33,012)(745)(32,267)

-

-

-

THB
RM

10,009,267(42,386)(250,862)

9,911,173

62,762

328,580

USD
RM

10,249,994(75,373)(355,955)

9,521,974

936

1,158,412

USD
RM

(268)

-

(268)

-

-

-

VND
RM

(463)

-

(463)

-

-

-

VND
RM

188

Group

The carrying amounts of the Group’s exposure to foreign currency risk are as follows:

Foreign exchange risk management (Cont’d)Financial risk management objectives and policies (Cont’d)

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISK MANAGEMENT (CONT’D)

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)Annual Report 2023

Notes to the Financial Statements (Cont’d)

31.

189

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKMANAGEMENT (CONT’D)a.

Financial risk management objectives and policies (Cont’d)i.

Foreign exchange risk management (Cont’d)
The following table illustrates the sensitivity of (loss)/profit before tax and equity of theGroup to a reasonably possible change in the foreign currency against the functional
currencies of the Group entities, with all other variable held constant.
A +/-10% (2022: 10%) change in the RM/USD, RM/HKD, RM/THB, RM/PHP, RM/SGD,
RM/TWD, RM/RMB, RM/IDR, RM/VND and RM/KRW exchange rates at the reporting period
is deemed possible. Both of these percentages have been determined based on average
market volatility in exchange rates in the previous 12 months. The sensitivity analysis isbased on the Group’s foreign currency financial instruments held at each reporting date.
If the RM had strengthened against the USD, HKD, THB, PHP, SGD, TWD, RMB, IDR, VND
and KRW, then the impact would be as follows:Group(loss)/profit before tax and equity
2023
RM

2022
RM

USD

(1,000,927)(1,024,999)

HKD(16,438)(15,579)

THB

1,582

3,301

PHP

78

1,574

SGD

2,818

(5,412)

TWD

597

1,584

RMB

(2,077)(2,100)

IDR

54

37

VND

27

46

KRW

-

3,834

(1,014,286)(1,037,714)

If the RM had weakened against the USD, HKD, THB, PHP, SGD, TWD, RMB, IDR, VND and
KRW, then the impact would be the opposite.
Exposure to foreign exchange rates vary during the financial year depending on thevolume of overseas transactions. Nonetheless, the analysis above is considered to be
representative of the Group’s exposure to currency risk.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

190

31.

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKMANAGEMENT (CONT’D)a.

Financial risk management objectives and policies (Cont’d)ii.

Interest rate risk management
The Group’s and the Company’s primary interest rate risk relates to interest bearing debts.
The Group and the Company manage its interest rate exposure by maintaining a prudent
mix of fixed and floating rate borrowings. The Group and the Company actively review its
debt portfolio, taking into account the investment holding period and nature of its assets.
The information on maturity dates and effective interest rates of financial liabilities aredisclosed in their respective notes.
The Group and the Company do not account for any fixed rate financial instruments at fairvalue through profit or loss, and the carrying amount of fixed rate financial instruments of
the Group and of the Company are measured at amortised cost. Therefore, no sensitivity
analysis for fixed rate instruments was prepared as the change in market interest rate at
the end of the reporting period would not affect profit or loss.
The sensitivity analysis of interest rates for floating rate instruments is not presented aschanges in interest rate would not materially affect profit or loss.

iii.

Credit risk management
The Group’s and the Company’s credit risks are primarily attributable to its trade and otherreceivables. Credit risks are managed by the application of credit approvals, limits andmonitoring procedures. Credit risks are minimised and monitored via strictly limiting theGroup’s and the Company’s associations to business partners with high creditworthiness.
Trade receivables are monitored on an ongoing basis via the Group’s and the Company’s
management reporting procedures. For other financial assets including cash andbank balances, the Group and the Company minimise credit risk by dealing exclusively
with high credit rating counterparties. The Group and the Company perform ongoing
credit evaluation of its customers and generally does not require collateral on accountreceivables.
At the reporting date, there were no significant concentrations of credit risk.

iv.

Liquidity risk management
The Group and the Company maintain sufficient cash and bank balances, and internallygenerated cash flows to finance its activities. The Group and the Company finance its
operations by a combination of equity and bank borrowings. In addition, the Group andthe Company have available banking facilities to meet its liquidity and working capitalrequirements.
The following tables detail the remaining contractual maturity for non-derivative financial
liabilities. The tables have been drawn up based on the undiscounted cash flows offinancial liabilities based on the earliest date on which the Group and the Company canbe required to pay.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

31.

191

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKMANAGEMENT (CONT’D)a.

Financial risk management objectives and policies (Cont’d)iv.

Liquidity risk management (Cont’d)Contractual cash flows (including interest payments)

Total

On demandor within
1 year1 to 5years

Over 5
years

RM

RM

RM

RM

RM

Non interest bearing debts

28,411,533

28,411,533

28,411,533--

Interest bearing debts

4,740,952

4,895,408

3,143,292

1,647,056

105,060

33,152,485

33,306,941

31,554,825

1,647,056

105,060

Group

Carrying
amount2023

2022
Non interest bearing debts

27,581,128

27,581,128

27,581,128--

Interest bearing debts

3,032,211

3,304,963

1,375,951

1,784,532

144,480

30,613,339

30,886,091

28,957,079

1,784,532

144,480

1,504,538

1,638,433

445,084

1,193,349-

Non interest bearing debts

762,669

790,273

552,829

237,444-

Interest bearing debts

270,368

312,593

312,593--

1,033,037

1,102,866

865,422

237,444-Company2023
Non interest bearing debts

2022

b.

Capital structure and equity
The Group manages its capital to ensure that entities in the Group will be able to continue as
going concerns while providing an adequate return to stakeholders through the optimisationof the debt and equity balance.
The Group sets the amount of capital in proportion to risk. The Group manages the capital
structure and makes adjustments to it in the light of changes in economic conditions andthe risk characteristics of the underlying assets. In order to maintain or adjust the capital
structure, the Group may adjust the amount of dividends paid to shareholders, return capitalto shareholders, issue new shares, or sell assets to reduce debt. Capital represents equity
attributable to the owners of the Company.
The Group monitors capital on the basis of debt-to-equity ratio, where the ratio is arrived at net
debts (total borrowings and lease liabilities less cash and bank balances) divided by total equity.
During the reporting period ended 31 December 2023, the Group’s strategy was unchanged
which is to maintain a net cash position.

Innity Corporation Berhad

Notes to the Financial Statements (Cont’d)

192

31.

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKMANAGEMENT (CONT’D)b.

Capital structure and equity (Cont’d)
The net debt-to-equity ratios as at 31 December 2023 and 31 December 2022 are as follows:

Group
2023
RM

2022
RM

Borrowings

1,646,302

309,993

Lease liabilities

3,094,650

2,722,218

Less: Cash and bank balances(32,780,826)(35,439,026)

Net Cash(28,039,874)(32,406,815)

39,154,964

39,550,845--

Total capitalNet debt-to-equity ratio

Pursuant to the requirements of Guidance Note No. 3/2006 of the Bursa Malaysia Securities
Berhad, the Group is required to maintain a shareholders’ equity more than twenty-five percent(25%) of the issued and paid-up capital. The Group has complied with this requirement for thefinancial year ended 31 December 2023.

32.

ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs
32.1 New MFRSs adopted during the financial year
The Group and Company adopted the following Standards and Amendments of the MFRS
Framework that were issued by the Malaysian Accounting Standards Board (“MASB”) during
the financial year:

Title

Effective Date

MFRS 17 Insurance Contracts

1 January 2023

Amendments to MFRS 17 Initial Application of MFRS 17 and
MFRS 9 - Comparative Information

1 January 2023

Amendments to MFRS 101 Disclosure of Accounting Policies

1 January 2023

Amendments to MFRS 108 Definition of Accounting Estimates

1 January 2023

Amendments to MFRS 112 Deferred Tax related to Assets and Liabilities
arising from a Single Transaction

1 January 2023

Amendments to MFRS 112 International Tax Reform - Pillar Two Model
Rules

Refer Paragraph
98M of MFRS 112

The adoption of the above Standards and Amendments did not have any material effect on thefinancial performance or position of the Group and of the Company.

Annual Report 2023

Notes to the Financial Statements (Cont’d)

32.

193

ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (CONT’D)
32.2 New MFRSs that have been issued, but only effective for annual periods beginning on orafter 1 January 2024
The following are Standards and Amendments of the MFRS Framework that have been issued
by the MASB but have not been early adopted by the Group and the Company:

Title

Effective Date

Amendments to MFRS 16 Lease Liability in a Sale and Leaseback

1 January 2024

Amendments to MFRS 101 Classification of Liabilities as Current or
Non-current

1 January 2024

Amendments to MFRS 101 Non-current Liabilities with Covenants

1 January 2024

Amendments to MFRS 107 and MFRS 7 Supplier Finance Arrangements

1 January 2024

Amendments to MFRS 121 Lack of Exchangeability

1 January 2025

Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture

Deferred

The Group and the Company are still in the process of assessing the impact of the above
Standards and Amendments since the effects would only be observable in the future financial
years.

Innity Corporation Berhad

194

LIST OF PROPERTIES

Location

Selangor
C501,
Block C, Kelana Square,
17, Jalan SS7/26
Kelana Jaya, 47301
Petaling Jaya, Selangor Darul Ehsan
Master Title:
PN 9936,
Lot 24545 Seksyen 40
Bandar Petaling Jaya,
District of Petaling,
State of Selangor

Date of
Acquisition

Carrying
Amountas at
31
December
2023(RM)

Office Lot/
Office27.07.2005

187,928

1,371

Office Lot/
Office27.07.2005

198,299

25

1,192

Office Lot/
Office14.04.2009

178,228

25

1,262

Office Lot/
Office18.05.2020

401,072

Tenure/date of expiryoflease/
tenancy

Approximate
Age ofBuilding(years)Built-up
Area(sq ft)Description/
Existing
Use

Leasehold/
13-Apr-2089

25

1,301

Leasehold/
13-Apr-2089

25

Leasehold/
13-Apr-2089

Leasehold/
13-Apr-2089

C502,
Block C, Kelana Square,
17, Jalan SS7/26
Kelana Jaya, 47301
Petaling Jaya, Selangor Darul Ehsan
Master Title:
PN 9936,
Lot 24545 Seksyen 40
Bandar Petaling Jaya,
District of Petaling,
State of Selangor
C517,
Block C, Kelana Square,
17, Jalan SS7/26
Kelana Jaya, 47301
Petaling Jaya, Selangor Darul Ehsan
Master Title:
PN 9936,
Lot 24545 Seksyen 40
Bandar Petaling Jaya,
District of Petaling,
State of Selangor
C605,
Block C, Kelana Square,
17, Jalan SS7/26
Kelana Jaya, 47301
Petaling Jaya, Selangor Darul Ehsan
Master Title:
PN 9936,
Lot 24545 Seksyen 40
Bandar Petaling Jaya,
District of Petaling,
State of Selangor

Annual Report 2023

ANALYSIS OF SHAREHOLDINGS

195

As at 29 March 2024

SHARE CAPITAL
Total Issued Share: 139,403,415 Ordinary shares

Voting Rights: One (1) vote per Ordinary Share on a poll

Size of Holdings

No. ofShareholders% ofShareholders

No. ofShares Held

% ofIssued Shares

1 - 99

45

4.554

1,882

0.001

100 - 1,000

536

54.251

215,6850.155

1,001 - 10,000

254

25.7081,327,520

0.952

10,001 - 100,000

117

11.842

3,904,880

2.801

100,001 - 6,970,169 (*)

32

3.238

45,900,727

32.927

6,970,170 and Above (**)

4

0.404

88,052,721

63.164988

100

139,403,415

100.00Total* Less than 5% of issued shares** 5% and above of issued shares

Note:

Information presented at the above table is based on the Record of Depositors dated on 29 March 2024.

INFORMATION ON SUBSTANTIAL SHAREHOLDERS
As at 29 March 2024
The shareholders holding more than 5% interest in the ordinary shares of Innity Corporation Berhad(“the Company”) based on the Register of Substantial Shareholders of the Company as at 29 March 2024
are as follows:
No. ofShares Held

% ofIssued Shares

D.A. Consortium Inc.

34,735,500

24.917

JcbNext Berhad

29,250,040

20.982

Phang Chee Leong

13,298,372

9.538

Looa Hong Tuan

12,374,685

8.876

Total

89,658,597

64.313Name of Substantial Shareholders

Innity Corporation Berhad

196

Analysis of Shareholdings
As at 29 March 2024 (Cont’d)

DIRECTORS’ INTERESTS IN SHARES
As at 29 March 2024
Based on the Register of Directors’ Shareholdings and the Record of Depositors, the interests of the
Directors in the shares of the Company, direct and indirect, as at 29 March 2024 are as follows:
Number of Ordinary
Shares in INNITY% of Issued Shares

DirectIndirect

DirectIndirect

Cheong Chee Yun

-

-

-

-

Fung Kam Foo

-

-

-

-

Gregory Charles Poarch

-

-

-

-

Liong Wei Li(Alternate Director To Gregory Charles Poarch)

-

-

-

-

12,374,685

-

8.876

-

Michihiko Suganuma

-

-

-

-

Phang Chee Leong

13,298,372

-

9.538

-

-

-

-

-

6,817,292

-

4.889

-

-

-

-

-

7,299,086

-

5.235

-

Name

Looa Hong Tuan

Rieko Yoshikawa(Alternate Director To Michihiko Suganuma)
Seah Kum Loong
Norliza Binti Rasool Khan
Wong Kok Woh

Annual Report 2023

Analysis of Shareholdings
As at 29 March 2024 (Cont’d)

197

30 LARGEST SHAREHOLDERS
As at 29 March 2024
No. ofShares Held%

D.A.Consortium Inc.

34,735,500

24.917

2.

JcbNext Berhad

29,250,040

20.982

3.

Looa Hong Tuan

12,374,685

8.876

No.

Name

1.

4.

Phang Chee Leong

11,692,496

8.387

5.

Wong Kok Woh

6,618,008

4.747

6.

Chang Chew Tuck

6,278,950

4.504

7.

Seah Kum Loong5,356,527

3.842

8.

Lee Chel Chan

5,309,057

3.808

9.

Wan Lin Seng

3,774,000

2.707

10.

Tan Yu Yeh

2,633,400

1.889

11.

Lee Koon Shing

2,350,000

1.685

12.

Siew Yoke Lee

2,124,366

1.523

13.

Maybank Nominees (Tempatan) Sdn Bhd
Pledged Securities Account For Lee Koon Chuan

2,000,000

1.434

14.

RHB Nominees (Tempatan) Sdn Bhd
OSK Capital Sdn Bhd For Phang Chee Leong

1,605,876

15.

RHB Nominees (Tempatan) Sdn Bhd
OSK Capital Sdn Bhd For Seah Kum Loong

1,460,765

16.

Ng Eng Tat

1,022,000

0.733

17.

RHB Nominees (Tempatan) Sdn Bhd
OSK Capital Sdn Bhd For Wong Kok Woh

681,078

0.488

18.

Leam Am Kem

622,900

0.446

19.

Alliancegroup Nominees (Tempaten) Sdn. Bhd.
Pledged Securities Account for Tee Chee Chiang

564,800

0.405

20.

Yong Wei Lun

437,000

0.313

21.

HLIB Nominees (Tempatan) Sdn Bhd
Pledged Securities Account For Leow Kuan Shu

300,000

0.215

1.151
1.047

22.

Lee Yoke Kee

280,000

0.200

23.

Tan Bee Bee

250,000

0.179

24.

Arshad Bin Abdul Rahman

247,500

0.177

25.

Huan Mee Kiew

235,900

0.169

26.

Yong Wei Lun

221,000

0.158

27.

Yau Yoke Ching

187,300

0.134

28.

Cheng Nyek Paw

168,800

0.121

29.

RHB Capital Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Ooi Lee Peng (MLK/SS)

165,500

30.

Yew Kok Foo

159,800

0.114

133,107,248

95.469

Total

0.118

Note:
Information, which without aggregating securities from different securities accounts belong to the same registeredholder, presented at the above table is based on the Record of Depositors dated on 29 March 2024.

198
INNITY CORPORATION BERHAD(200701006554) (764555-D)(Incorporated in Malaysia)

NOTICE OF SEVENTEENTH ANNUAL GENERAL MEETINGNOTICE IS HEREBY GIVEN that the Seventeenth Annual General Meeting of the Company will be held at
Greens III, Sports Wing, Jalan Club Tropicana, Tropicana Golf & Country Resort, 47410 Petaling Jaya, Selangor
Darul Ehsan on Friday, 7 June 2024 at 9.30 a.m. to transact the following businesses:-

AGENDA
Ordinary Business1.

To receive the Audited Financial Statements for the financial year ended
31 December 2023 together with the Reports of the Directors and Auditors
thereon.

2.

To re-elect the following Directors who are retiring in accordance with
Clause 76(3) of the Company’s Constitution:-[Please refer to Note (i) of
the Explanatory Notes](i) Mr. Wong Kok Woh(ii) Mr. Gregory Charles Poarch(iii) Mr. Michihiko Suganuma(Ordinary Resolution 1)(Ordinary Resolution 2)(Ordinary Resolution 3)

3.

To approve the payment of Directors’ fees of RM300,000 for the financial
year ending 31 December 2024.

(Ordinary Resolution 4)

4.

To approve the payment of Directors’ benefits up to an aggregate amountof RM30,000 for the period from 8 June 2024 until Eighteenth Annual
General Meeting of the Company to be held in 2025.

(Ordinary Resolution 5)

5.

To re-appoint BDO PLT as Auditors of the Company for the ensuing year
and to authorise the Directors to fix their remuneration.

(Ordinary Resolution 6)

Special BusinessTo consider and if thought fit, to pass the following Ordinary Resolutions, withor without modifications:6.

AUTHORITY TO ISSUE AND ALLOT SHARES PURSUANT TOSECTIONS 75 AND 76 OF THE COMPANIES ACT 2016
“THAT subject always to the Companies Act 2016 (“the Act”), theConstitution of the Company, the ACE Market Listing Requirements of
Bursa Malaysia Securities Berhad (“Bursa Securities”) and the approvalsof the relevant government/regulatory authorities, the Directors be andare hereby empowered pursuant to Sections 75 and 76 of the Act, to allot
shares in the Company from time to time at such price, upon such terms
and conditions, to such persons and for such purposes as the Directors
may in their absolute discretion, deem fit provided that the aggregate
number of shares issued pursuant to this Ordinary Resolution does notexceed 10% of the total number of the issued shares (excluding treasury
shares) of the Company for the time being AND THAT the Directors be andare also empowered to obtain approval for the listing of and quotation for
the additional shares so issued on Bursa Securities AND FURTHER THAT
such authority shall continue to be in force until the conclusion of the next
Annual General Meeting (“AGM”) of the Company, or at the expiry of theperiod within which the next AGM is required to be held after the approval
was given, whichever is earlier, unless revoked or varied by an ordinary
resolution of the Company in a general meeting.”(Ordinary Resolution 7)

199
NOTICE OF SEVENTEENTH ANNUAL GENERAL MEETING (CONT’D)
7.

PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATEFOR RECURRENT RELATED PARTY TRANSACTIONS OF A
REVENUE OR TRADING NATURE (“PROPOSED RENEWALOF SHAREHOLDERS’ MANDATE FOR RRPTs”)“THAT subject to the provisions of the ACE Market Listing Requirementsof Bursa Malaysia Securities Berhad, the Company and/or its subsidiarycompanies (“the Group”) be and are hereby authorised to enter into andgive effect to the recurrent related party transactions of a revenue or trading
nature with the related parties as set out in Section 2.5.1 of the Circular
to Shareholders dated 26 April 2024 (“the Related Parties”) provided thatsuch transactions and/or arrangements are:(a)necessary for the day-to-day operations;(b)undertaken in the ordinary course of business and at arm’s length
basis on normal commercial terms which are not more favourable
to the Related Parties than those generally available to the public;
and

(c)

not detrimental to the interest of the minority shareholders of theCompany.

THAT the authority conferred by such mandate, shall continue to be inforce until:(a)the conclusion of the next Annual General Meeting (“AGM”) of theCompany, at which time it will lapse, unless by a resolution passed
at such AGM, the authority is renewed; or(b)the expiration of the period within which the next AGM of theCompany is required to be held pursuant to Section 340(2) of theCompanies Act 2016 (“Act”) (but shall not extend to such extension
as may be allowed pursuant to Section 340(4) of the Act); or(c)

revoked or varied by resolution passed by the shareholders of theCompany in general meeting.

whichever is earlier;
AND THAT the Directors of the Company be and are hereby authorised
to complete and do all such acts and things (including executing all
such documents as may be required) as they may consider expedientor necessary to give effect to the Proposed Renewal of Shareholders’
Mandate for RRPTs.”
8.

To transact any other business of which due notice shall have been givenin accordance with the Company’s Constitution and the Companies Act
2016.

By Order of the Board

FONG SEAH LIH (MAICSA 7062297) / (SSM PC No. 202008000973)
THAM YIN TONG (MAICSA 7049718) / (SSM PC No. 202008001314)
Company Secretaries
Kuala Lumpur
26 April 2024

(Ordinary Resolution 8)

200
NOTES:(1)

(2)
(3)
(4)
(5)
(6)

(7)
(8)

For the purpose of determining who shall be entitled to attend this General Meeting, the Company shall be requesting Bursa Malaysia
Depository Sdn Bhd to make available to the Company, a Record of Depositors as at Thursday, 30 May 2024. Only a member whose nameappears on this Record of Depositors shall be entitled to attend this General Meeting or appoint a proxy to attend, speak and vote on his/
her/its behalf.
A member entitled to attend and vote at this General Meeting is entitled to appoint a proxy or attorney or in the case of a corporation, toappoint a duly authorised representative to attend, participate, speak and vote in his place. A proxy may but need not be a member of theCompany.
A member of the Company who is entitled to attend and vote at a General Meeting of the Company may appoint not more than two (2)proxies to attend, participate, speak and vote instead of the member at the General Meeting.
If two (2) proxies are appointed, the entitlement of those proxies to vote on a show of hands shall be in accordance with the listing
requirements of the stock exchange.
Where a member of the Company is an authorised nominee as defined in the Central Depositories Act, it may appoint not more than two (2)proxies in respect of each securities account it holds in ordinary shares of the Company standing to the credit of the said securities account.
Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial
owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee
may appoint in respect of each omnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under the
Securities Industry (Central Depositories) Act 1991 (“Central Depositories Act”) which is exempted from compliance with the provisionsof Section 25A(1) of the Central Depositories Act.
Where a member appoints more than one (1) proxy, the proportion of shareholdings to be represented by each proxy must be specified in
the instrument appointing the proxies.
The appointment of a proxy may be made in a hard copy form or by electronic means in the following manner and must be received by theCompany not less than forty-eight (48) hours before the time appointed for holding the General Meeting or adjourned General Meeting at
which the person named in the appointment proposes to vote:
(i)

(ii)
(9)

(10)
(11)
(12)

(13)
(14)

NOTICE OF SEVENTEENTH ANNUAL GENERAL MEETING (CONT’D)

In hard copy form
The proxy form must be deposited at the share registrar of the Company situated at Unit 32-01, Level 32, Tower A, VerticalBusiness Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia, or alternatively, the Customer
Service Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur,
Malaysia.
By electronic means via Tricor’s TIIH Online website at https://tiih.online
Please refer to the Administrative Guide for further information on electronic lodgement of proxy form.

Any authority pursuant to which such an appointment is made by a power of attorney must be deposited at the share registrar of theCompany situated at Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200
Kuala Lumpur, Malaysia, or alternatively, the Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar
South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia not less than forty-eight (48) hours before the time appointed for holding theGeneral Meeting or adjourned General Meeting at which the person named in the appointment proposes to vote. A copy of the power ofattorney may be accepted provided that it is certified notarially and/or in accordance with the applicable legal requirements in the relevant
jurisdiction in which it is executed.
Please ensure ALL the particulars as required in the proxy form are completed, signed and dated accordingly.
Last date and time for lodging the proxy form is Wednesday, 5 June 2024 at 9.30 a.m.
Please bring an ORIGINAL of the following identification papers (where applicable) and present it to the registration staff for verification:a.
Identity card (NRIC) (Malaysian), orb.
Police report (for loss of NRIC) / Temporary NRIC (Malaysian), orc.
Passport (Foreigner).
For a corporate member who has appointed a representative instead of a proxy to attend this meeting, please bring the ORIGINAL
certificate of appointment executed in the manner as stated in the proxy form if this has not been lodged at the Company’s share registrar
earlier.
Pursuant to Rule 8.31A(1) of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad, all resolutions set out in the
Notice of general meeting will be put to vote by way of poll.

Explanatory Notes to the Agenda
Ordinary Business(i)
Item 1 of the Agenda
Audited Financial Statements for the financial year ended 31 December 2023
The Audited Financial Statements are meant for discussion only as the approval from shareholders is not required pursuant to Section
340(1)(a) of the Companies Act 2016. Hence, this Agenda item will not be put forward for voting by shareholders of the Company.
(ii)

Ordinary Resolutions 1, 2 and 3
Re-election of Directors
Mr. Wong Kok Woh, Mr. Gregory Charles Poarch and Mr. Michihiko Suganuma are standing for re-election as Directors of the Company
and being eligible, have offered themselves for re-election at the Seventeenth Annual General Meeting of the Company.
Pursuant to Practice 5.7 of the Malaysian Code on Corporate Governance (“MCCG”), the profiles of the Directors are set out on page
9 to page 12 of the Annual Report 2023. For the purpose of determining the eligibility of the Directors to stand for re-election at theSeventeenth Annual General Meeting of the Company, the Board had through its Nominating Committee (“NC”), considered, assessedand deliberated on the suitability and fit and properness of the retiring Directors.
Based on the recommendation of the NC, the Board is supportive of their re-election with the following justifications:Ordinary Resolution 1 – Re-election of Mr. Wong Kok Woh as Executive Director
Mr. Wong Kok Woh is mainly responsible for the implementation and streamlining of daily workflow processes in order to ensure timely
and efficient communications with clients to deliver quality work of the account management for the clients.
The Board is satisfied with his performance and contribution, and will continue to carry out his duty diligently and effectively anddemonstrate his commitment to the roles.

201
NOTES:-NOTICE OF SEVENTEENTH ANNUAL GENERAL MEETING (CONT’D)

Ordinary Resolution 2 – Re-election of Mr. Gregory Charles Poarch as Non Independent Non-Executive Director
Mr. Gregory Charles Poarch has vast experience in accounting and finance functions and contributed to the Group financial strategies tosteer the Group forward.
The Board is satisfied with his performance and contribution, and will continue to carry out his duty diligently and effectively anddemonstrate his commitment to the roles.
Ordinary Resolution 3 – Re-election of Mr. Michihiko Suganuma as Non Independent Non-Executive Director
Mr. Michihiko Suganuma is responsible for overseeing all aspect of strategic partnerships with global companies and cross-borderbusiness to grow the Group business.
The Board is satisfied with his performance and contribution, and will continue to carry out his duty diligently and effectively anddemonstrate his commitment to the roles.
(iii)

Ordinary Resolution 4
Directors’ fees for the financial year ending 31 December 2024
The Directors’ fees proposed for the financial year ending 31 December 2024 are calculated based on the enlarge board size to increase
the number of Independent Non-Executive Director from three (3) to five (5) to make up of 50% Independent Director and the assessmenton the performance of the Board by the NC and assuming that all Non-Executive Directors will hold office until the next AGM. This
resolution is to facilitate payment of Directors’ fees on current financial year basis.
In the event the Directors’ fees proposed are insufficient (e.g., due to more meetings), approval will be sought at the next AGM for
additional fees to meet the shortfall.

(iv)

Ordinary Resolution 5
Directors’ benefits for the period from 8 June 2024 until Eighteenth Annual General Meeting
Pursuant to Section 230(1) of the Companies Act 2016, the fees of the Directors and any benefits payable to the Directors of a listedcompany and its subsidiaries, shall be approved at a general meeting.
Directors’ benefits include allowances payable to Directors and in determining the estimated amount, the Board has considered various
factors including the current board size, number of scheduled meetings for the Board and Board Committee for the period from 8 June
2024 until Eighteenth Annual General Meeting. In the event the proposed amount is insufficient, approval will be sought at the next
AGM for the shortfall.

(v)

Ordinary Resolution 6
Re-appointment of Auditors
The Board has through the Audit and Risk Management Committee, considered the re-appointment of BDO PLT as the Auditors of theCompany. The factors considered by the Audit and Risk Management Committee in making the recommendation to the Board to table
their re-appointment at the Eighteenth Annual General Meeting are disclosed in the Audit and Risk Management Committee Report ofthe 2023 Annual Report.

(vi)

Ordinary Resolution 7
Authority to issue shares pursuant to Sections 75 and 76 of the Act
This Ordinary Resolution 7 is a new mandate. If passed, will provide flexibility to the Directors to undertake fundraising activities,
including but not limited to placement of shares for the purpose of funding the Company’s future investment project(s), working capital
and/or acquisition(s), by the issuance of shares in the Company to such persons at any time as the Directors may deem fit provided thatthe aggregate number of shares issued pursuant to the mandate does not exceed ten per centum (10%) of the total number of the issued
shares (excluding treasury shares) of the Company for the time being, without having to convene a general meeting. This authority, unless
revoked or varied by the Company in a general meeting, will expire at the conclusion of the next AGM of the Company or at the expiryof the period within which the next AGM is required to be held after the approval was given, whichever is earlier.

(vii)

Ordinary Resolution 8
Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature
Ordinary Resolution 8, if passed, will allow the Company and its subsidiaries to renew its shareholders’ mandate to enter into recurrent
related party transactions pursuant to Rule 10.09 of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad. Further
details relating to this proposal is set out in the Circular to Shareholders dated 26 April 2024.

202
INNITY CORPORATION BERHAD[Registration No. 200701006554 (764555-D)](Incorporated in Malaysia)

ADMINISTRATIVE GUIDE FOR THE 17TH ANNUAL GENERAL MEETING (“AGM”)
Date:

Friday, 7 June 2024

Time

:

9.30 a.m.

Online Meeting Platform :1.

Greens III Sports Wing, Jalan Club Tropicana, Tropicana Golf & Country
Resort, 47410 Petaling Jaya, Selangor Darul Ehsan

REGISTRATIONThe registration will commence at 8.30 a.m.
Please bring an ORIGINAL of the following identification papers (where applicable) and present
it to the registration staff for verification:(a) Identity card (NRIC) (Malaysian), or(b) Police report (for loss of NRIC) / Temporary NRIC (Malaysian), or(c) Passport (Foreigner).
No person will be allowed to register on behalf of another person even with the original identity
card or passport of that other person.

2.

ELIGIBILITY TO ATTEND BASED ON THE RECORD OF DEPOSITORS
Only a shareholder whose name appears on the Record of Depositor as at 30 May 2024 shall beentitled to attend or appoint proxy(ies) to attend and/or vote on his/her behalf.

3.

REFRESHMENT
Light refreshment will be provided.

4.

PRE-REGISTRATION TO ATTEND THE ANNUAL GENERAL MEETING
Shareholders are required to register ahead of the 17TH AGM to allow the Company to makethe necessary arrangements in relation to the meeting i.e. infrastructure, logistics and meetingvenue(s) to accommodate the meeting participants.
Please do read and follow the following procedures to pre-register your physical attendance atthe 17TH AGM via the TIIH Online website at https://tiih.online:•

Registration is open from 10.00 a.m. Friday, 26 April 2024 up to 9.30 a.m. Wednesday, 5 June
2024•

Login in to TIIH Online website with your username (i.e. e-mail address) and password underthe “e-Services”. If you have not registered as a user of TIIH Online, please refer to the tutorial
guide posted on the homepage for assistance to sign up.

•

Select the corporate event: “(REGISTRATION) INNITY 17TH AGM 2024”•

Read and agree to the Terms & Conditions and confirm the Declaration.

•

Select “Register for Physical Attendance at Meeting Venue”.

•

Review your registration and proceed to register.

•

System will send an e-mail to notify that your registration for Physical Attendance at Meeting
Venue is received and will be verified.

•

After verification of your registration against the General Meeting Record of Depositors, thesystem will send you an e-mail after 5 June 2024 to approve or reject your registration toattend physically at the Meeting Venue.

Please note that only a depositor whose name appears on the Record of Depositor as at
30 May 2024 shall be entitled to attend or appoint proxies to attend and/or vote on his/her behalf
at the 17TH AGM.

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ADMINISTRATIVE GUIDE FOR THE 17TH ANNUAL GENERAL MEETING (“AGM”) (CONT’D)
5.

POLL VOTINGThe voting at the AGM will be conducted by poll in accordance with Paragraph Rule 8.31A of ACE
Market Listing Requirements of Bursa Malaysia Securities Berhad. The Company has appointed
Tricor Investor & Issuing House Services Sdn Bhd as Poll Administrator to conduct the poll andAsia Securities Sdn Berhad as Scrutineers to verify the poll results.

6.

APPOINTMENT OF PROXY
A shareholder who is unable to attend the 17TH AGM on 7 June 2024 may appoint proxy andindicate the voting instructions in the proxy form.
Only members whose names appear on the Record of Depositors as at Thursday, 30 May 2024
shall be eligible to attend, speak and vote at the AGM or appoint a proxy(ies) and/or the Chairmanof the Meeting to attend and vote on his/her behalf, A member can appoint the Chairman of the
Meeting as his/her proxy and indicate the voting instruction in the Proxy form.
•

If you wish to participate in the AGM yourself, please do not submit any proxy form for the
AGM. You will not be allowed to participate in the AGM together with a proxy appointed byyou.

•

Accordingly, proxy forms and/or documents relating to the appointment of proxy/corporate
representative/attorney for the AGM whether in hard copy or by electronic means shall bedeposited or submitted in the following manner not later than Wednesday, 5 June 2024 at
9.30 a.m.
(i)

In Hard copy:
In the case of an appointment made in hard copy form, the proxy form must be depositedat the Share Registrar’s office situated at Unit 32-01, Level 32, Tower A, Vertical BusinessSuite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia or
alternatively at the Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium,
Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia;(ii) By electronic means
In the case of an appointment made via electronic means, you may submit the proxyform electronically via TIIH Online website at https://tiih.online. Please read and follow
the procedures on electronic lodgement of proxy form below.

7.

ELECTRONIC LODGEMENT OF PROXY FORM
The procedures to lodge your proxy form electronically via Tricor’s TIIH Online website aresummarised below:

Procedure

Actioni. Steps for Individual Shareholders
Register as aUser with
TIIH Online

Proceed withsubmission ofproxy form•

Using your computer, please access the website at https://tiih.online.
Register as a user under the “e-Services” select “Create Account by
Individual Holder”. Please refer to the tutorial guide posted on the
homepage for assistance.

•

If you are already a user with TIIH Online, you are not required to register
again.

•

After the release of the Notice of Meeting by the Company, login withyour username (i.e. email address) and password.

•

Select the corporate event: “INNITY 17TH AGM 2024-Submission of
Proxy Form”.

•

Read and agree to the Terms and Conditions and confirm the Declaration.

•

Insert your CDS account number and indicate the number of shares foryour proxy(ies) to vote on your behalf.

•

Appoint your proxy/proxies and insert the required details of your proxy/proxies or appoint the Chairman as your proxy.

•

Indicate your voting instructions – FOR or AGAINST, otherwise your proxywill decide on your votes.

•

Review and confirm your proxy(ies) appointment.

•

Print the proxy form for your record.

204
ADMINISTRATIVE GUIDE FOR THE 17TH ANNUAL GENERAL MEETING (“AGM”) (CONT’D)
7.

ELECTRONIC LODGEMENT OF PROXY FORM (CONT’D)
The procedures to lodge your proxy form electronically via Tricor’s TIIH Online website aresummarised below: (Cont’d)

Procedure

Actionii. Steps for Corporation or Institutional Shareholders
Register as aUser with
TIIH Online•

Access TIIH Online at https://tiih.online.

•

Under e-Services, the authorised or nominated representative of thecorporation or institutional shareholder selects “Create Account byRepresentative of Corporate Holder”.

•

Complete the registration form and upload the required documents.

•

Registration will be verified, and you will be notified by email within one(1) to two (2) working days.

•

Proceed to activate your account with the temporary password given in
the email and re-set your own password.

Note: The representative of a corporation or institutional shareholder mustregister as a user in accordance with the above steps before he/she cansubscribe to this corporate holder electronic proxy submission. Pleasecontact our Share Registrar if you need clarifications on the user registration.
Proceed withsubmission ofproxy form•

Login to TIIH Online at https://tiih.online.

•

Select the corporate exercise name: INNITY 17TH AGM 2024-Submissionof Proxy Form”.

•

Agree to the Terms & Conditions and Declaration.

•

Proceed to download the file format for “Submission of Proxy Form” inaccordance with the Guidance Note set therein.

•

Prepare the file for the appointment of proxies by inserting the required
data.

•

Login to TIIH Online, select corporate exercise name: “INNITY 17TH AGM
2024-Submission of Proxy Form”.

•

Proceed to upload the duly completed proxy appointment file.

•

Select “Submit” to complete your submission.

•

Print the confirmation report of your submission for your record.

The last date and time for lodging the proxy form is Wednesday, 5 June 2024 at 9.30 a.m.

8.

NO RECORDING OR PHOTOGRAPHY
No recording or photography of the 17TH AGM proceedings is allowed without prior written
permission of the Company.

9.

Shareholders are also reminded to monitor the Company’s website and announcements for any
changes to 17TH AGM arrangements.

10.

If you have any enquiries on the above, please contact the following person-in charge during
office hours on Mondays to Fridays from 9.00 a.m. to 5.30 p.m. (except on public holidays):
Tricor Investor & Issuing House Services Sdn. Bhd.
General LineFax Number
EmailContact
persons: +603-2783 9299
: +603-2783 9222
: is.enquiry@my.tricorglobal.com: Mr. Allen Sii: Ms. Zakiah Binti Wardi: Ms. Dina Qistina Zulkanain+603 2783 9263
+603 2283 9287
+603 2783 9165

Allen.Sii@my.tricorglobal.com
Zakiah@my.tricorglobal.com
Dina.Qistina@my.tricorglobal.com

INNITY CORPORATION BERHAD(200701006554) (764555-D)(Incorporated in Malaysia)

PROXY FORM

CDS Account No.
No. of shares held

Telephone no. (During office hours)_______________________
I/We______________________________________________NRIC (New)/ Company No._______________________________(PLEASE USE BLOCK CAPITAL)

of_____________________________________________________________________________________________________(FULL ADDRESS)

being member(s) of INNITY CORPORATION BERHAD, hereby appoint:
Full Name (in Block)

NRIC/Passport No.

Proportion of Shareholdings
No. of Shares%

NRIC/Passport No.

Proportion of Shareholdings
No. of Shares%

Addressand / or* (*delete as appropriate)
Full Name (in Block)

Addressor failing him, the Chairperson of the Meeting, as my/our proxy to vote for me/us and on my/our behalf at the Seventeenth Annual General
Meeting of the Company to be held at Greens III, Sports Wing, Jalan Club Tropicana, Tropicana Golf & Country Resort, 47410
Petaling Jaya, Selangor Darul Ehsan on Friday, 7 June 2024 at 9.30 a.m. or any adjournment thereof, and to vote as indicated below:

Ordinary Business
Re-election of Mr. Wong Kok Woh as Director pursuant to Clause 76(3) ofthe Company’s Constitution
Re-election of Mr. Gregory Charles Poarch as Director pursuant to Clause76(3) of the Company’s Constitution
Re-election of Mr. Michihiko Suganuma as Director pursuant to Clause76(3) of the Company’s Constitution
Approval of Directors’ fees of RM300,000 for the financial year ending 31
December 2024
Approval of Directors’ benefits up to an aggregate amount of RM30,000 for
the period from 8 June 2024 until Eighteenth Annual General Meeting of theCompany to be held in 2025
Re-appointment of BDO PLT as Auditors of the Company and to authorise
the Directors to fix their remuneration
Special Business
Authority to Issue and Allot Shares pursuant to Sections 75 and 76 of theCompanies Act 2016
Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party
Transactions of a Revenue or Trading Nature

Resolution

For

AgainstOrdinary Resolution 1
Ordinary Resolution 2
Ordinary Resolution 3
Ordinary Resolution 4
Ordinary Resolution 5
Ordinary Resolution 6

Ordinary Resolution 7
Ordinary Resolution 8(Please indicate with an “X” in the space provided whether you wish your votes to be cast for or against the resolutions. In the absenceof specific direction, your proxy will vote or abstain as he thinks fit.)

Signed this _________ day of ____________________ 2024

* Manner of execution:
(a)
(b)
(c)

______________________________________
Signature of Member(s) or/ Common Seal

If you are an individual member, please sign where indicated.
If you are a corporate member which has a common seal, this proxy form should be executed under seal in accordance with the constitution of yourcorporation.
If you are a corporate member which does not have a common seal, this proxy form should be affixed with the rubber stamp of your company (if any)and executed by:(i)at least two (2) authorised officers, of whom one shall be a director; or(ii)
any director and/or authorised officers in accordance with the laws of the country under which your corporation is incorporated.

Fold this flap for sealing
Notes:
(1)
(2)
(3)
(4)
(5)
(6)

(7)
(8)

(9)

(10)
(11)
(12)

(13)
(14)

For the purpose of determining who shall be entitled to attend this General Meeting, the Company shall be requesting Bursa Malaysia Depository Sdn
Bhd to make available to the Company, a Record of Depositors as at Thursday, 30 May 2024. Only a member whose name appears on this Record of
Depositors shall be entitled to attend this General Meeting or appoint a proxy to attend, speak and vote on his/her/its behalf.
A member entitled to attend and vote at this General Meeting is entitled to appoint a proxy or attorney or in the case of a corporation, to appoint a duly
authorised representative to attend, participate, speak and vote in his place. A proxy may but need not be a member of the Company.
A member of the Company who is entitled to attend and vote at a General Meeting of the Company may appoint not more than two (2) proxies to attend,
participate, speak and vote instead of the member at the General Meeting.
If two (2) proxies are appointed, the entitlement of those proxies to vote on a show of hands shall be in accordance with the listing requirements of thestock exchange.
Where a member of the Company is an authorised nominee as defined in the Central Depositories Act, it may appoint not more than two (2) proxies inrespect of each securities account it holds in ordinary shares of the Company standing to the credit of the said securities account.
Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one
securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of eachomnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under the Securities Industry (Central Depositories)
Act 1991 (“Central Depositories Act”) which is exempted from compliance with the provisions of Section 25A(1) of the Central Depositories Act.
Where a member appoints more than one (1) proxy, the proportion of shareholdings to be represented by each proxy must be specified in the instrument
appointing the proxies.
The appointment of a proxy may be made in a hard copy form or by electronic means in the following manner and must be received by the Company
not less than forty-eight (48) hours before the time appointed for holding the General Meeting or adjourned General Meeting at which the person namedin the appointment proposes to vote:(i)
In hard copy form
The proxy form must be deposited at the share registrar of the Company situated at Unit 32-01, Level 32, Tower A, Vertical Business Suite,
Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia, or alternatively, the Customer Service Centre at Unit G-3,
Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia.
(ii)
By electronic means via Tricor’s TIIH Online website at https://tiih.online
Please refer to the Administrative Guide for further information on electronic lodgement of proxy form.
Any authority pursuant to which such an appointment is made by a power of attorney must be deposited at the share registrar of the Company
situated at Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia, or
alternatively, the Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala
Lumpur, Malaysia not less than forty-eight (48) hours before the time appointed for holding the General Meeting or adjourned General Meeting at which
the person named in the appointment proposes to vote. A copy of the power of attorney may be accepted provided that it is certified notarially and/or inaccordance with the applicable legal requirements in the relevant jurisdiction in which it is executed.
Please ensure ALL the particulars as required in the proxy form are completed, signed and dated accordingly.
Last date and time for lodging the proxy form is Wednesday, 5 June 2024 at 9.30 a.m.
Please bring an ORIGINAL of the following identification papers (where applicable) and present it to the registration staff for verification:a.
Identity card (NRIC) (Malaysian), orb.
Police report (for loss of NRIC) / Temporary NRIC (Malaysian), orc.
Passport (Foreigner).
For a corporate member who has appointed a representative instead of a proxy to attend this meeting, please bring the ORIGINAL certificate of
appointment executed in the manner as stated in the proxy form if this has not been lodged at the Company’s share registrar earlier.
Pursuant to Rule 8.31A(1) of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad, all resolutions set out in the Notice of general
meeting will be put to vote by way of poll.

Then fold here

AFFIX
STAMP

Share Registrar of Innity Corporation Berhad
Tricor Investor & Issuing House Services Sdn Bhd
Company No: 197101000970 (11324-H)

Unit 32-01, Level 32, Tower A
Vertical Business Suite, Avenue 3, Bangsar SouthNo. 8, Jalan Kerinchi
59200 Kuala Lumpur

1st fold here