Past Performance Review

Full Turnkey Solutions for Telecom Client.

Investors should read the following discussion and analysis of our financial condition and results of operations in conjunction with the notes and assumptions included in the Reporting Accountants' Letter on Proforma Consolidated Financial Information as set out in Section 11.4 of our Prospectus and the Accountants' Report as set out in Section 13 of our Prospectus.

This discussion and analysis contains data derived from our audited financial statements as well as forward-looking statements that involve risks and uncertainties. The results may differ significantly from those projected in the forward-looking statements. Factors that may cause future results to differ significantly from those included in the forward-looking statements include, but are not limited to, those discussed below and elsewhere in our Prospectus, particularly the risk factors as set out in Section 4 of our Prospectus.

Overview of Operations

Our Company is principally an investment holding company, whereby our Group's revenue is derived through our subsidiary companies of which the principal activities are summarised as below:

Company Principal Activities
OCK Investment holding
Telecommunications Network Services
OCK Setia Provision of turnkey telecommunications network services.
Delicom Provision of telecommunications network services focusing on network deployment services.
Steadcom Provision of telecommunications network services primarily focusing on network planning, design and optimisation.
Green Energy and Power Solutions
EI Power Provision of green energy and power solutions.
Telecommunications and Network Security Products and Materials
Fortress Singapore Distribution and installation of network security products and solutions for enterprise customers and provision of technical support.
Fortress Malaysia Distribution and installation of network security products and solutions for enterprise customers and provision of technical support.
Firatel Trading of telecommunications network equipment and materials.
Mechanical and Electrical (M&E) Engineering Services
OCK M&E Provision of mechanical and electrical engineering services.

Revenue

Our Group's revenue is principally derived from the provision of telecommunications network services. Our Group also derive income from the trading of telecommunications network equipment and materials, enterprise network security solutions, provision of green energy and power solutions and M&E services. This revenue is derived mainly from domestic markets.

For FYE 31 December 2011, our Group's revenue improved by 32.27% or approximately RM21.55 million from RM66.78 million for FYE 31 December 2010 to RM88.33 million for FYE 31 December 2011. The increase in revenue was mainly contributed from revenue generated from the telecommunication network services resulting from an increase in orders secured from our new and existing customers. This was primarily due to the increase in revenue from new and existing turnkey contracts secured for expansions of WiMAX and 3G coverage which amounted to a total of RM9.80 million.

Our Group's new venture into provisions of green energy and power solution in the fourth quarter of 2010 had also contributed approximately RM14.96 million in revenue, which was solely generated from sale of gen-sets, in the FYE 31 December 2011.

In line with the increase in our revenue, PAT had also increased by approximately RM5.68 million from RM3.52 million for FYE 31 December 2010 to RM9.20 million for FYE 31 December 2011. Other comprehensive income of RM3.42 million was mainly attributable to surplus arising from the revaluation of freehold and leasehold land and building.

Our Group's revenue improved by 45.43% or RM20.86 million from RM45.92 million for FYE 31 December 2009 to RM66.78 million for FYE 31 December 2010. Telecommunications network services recorded an increase in revenue by 31.75% or RM14.98 million from RM47.18 million for FYE 31 December 2009 to RM62.16 million for FYE 31 December 2010. These increased in revenue was primarily due to new deployment contracts secured from Huawei and ZTE.

M&E engineering services improved by 1,425.93% from RM0.27 million for FYE 31 December 2009 to RM4.12 million for FYE 31 December 2010 mainly due to M&E contracts secured for several fast food outlets, a factory and a university during the current financial year.

Our Group's trading income segment also recorded an improved revenue of 465.08% or RM2.93 million from RM0.63 million for FYE 31 December 2009 to RM3.56 million for FYE 31 December 2010. This was mainly attributed to the increase in orders from two (2) of our existing major customers to provide them with telecommunications network equipment and materials.

Furthermore, our Group's new venture into provisions of green energy and power solutions had also contributed positively since the acquisition of EI Power in the fourth quarter of FYE 31 December 2010, which had contributed approximately RM2.36 million in revenue. The main revenue contributors are from the provision of power generation equipment including engine-generators, alternators and other related equipment used for commercial, retail and factory buildings.

In tandem with the higher Group revenue, our Group recorded an improvement in PAT by RM2.72 million from RM0.80 million for FYE 31 December 2009 to RM3.52 million for FYE 31 December 2010.

For FYE 31 December 2009, our Group's revenue improved marginally by RM0.31 million or 0.68% from RM45.61 million for FYE 31 December 2008 to RM45.92 million for FYE 31 December 2009.

Revenue from telecommunications network services remained the Group's main revenue contributor representing 98.08% of our Group's total revenue. Telecommunications network services' revenue had improved from RM42.57 million to RM47.18 million which represents an increase of 10.83% or approximately RM4.61 million. This was mainly due to an increase in network deployment works from ZTE which consists of installation, testing and commissioning of equipment.

However, our group's M&E engineering services had decreased by 94.52% from RM4.93 million for FYE 31 December 2008 to RM0.27 million for FYE 31 December 2009. This was mainly due to the completion of a major project secured in FYE 31 December 2008, as well as a slowdown in the construction sector as a result of the global economy downturn commencing from second half of FYE 31 December 2008 which directly affected construction activities.

Our Group's trading activities which supplies telecommunication parts and materials had also improved by 142.31% from RM0.26 million to RM0.63 million.

In line with the increase in our revenue, our Group's PAT improved from RM0.17 million for FYE 31 December 2008 to RM0.80 million for FYE 31 December 2009.

For FYE 31 December 2008, our Group's revenue grew by 111.26% or approximately RM24.02 million from RM21.59 million for FYE 31 December 2007 to RM45.61 million for FYE 31 December 2008. The increase was attributable to increase in telecommunications network services segment and mainly due to a WiMAX network deployment contract by Alcatel-Lucent and network deployment services and a turnkey contract for new sites by DiGi which had contributed to the increase by approximately RM 19.61 million.

In addition, the increase in M&E engineering services also contributed to the overall increase in revenue resulting from a major project for army camp in Ampang, Selangor secured during FYE 31 December 2008 which contributed approximately RM4.93 million.

In FYE 31 December 2008, our Group recorded a Profit After Tax (PAT) of RM0.17 million after deducting income tax expense of RM0.35 million. The increase in PAT was in line with the increase in our revenue.