Calculate the break-even point, margin of safety and degree of operating leverage for Dolphin International Berhad company for the year 2018 through the financial report (the financial report for the year 2018 can be obtained from Bursa Malaysia)

Group Financial Highlights Financial Highlights Revenue (RM'000) Profit/(loss) attributable to equity holders (RM'000) 120,000 20,000 100,000 10,000 80,000 (10,000) (4,230) 60,000 (20,000) (30,000) 40,000 (40,000) (50,000) (60,000) 20,000 13,353 (70,000) 2014 2015 2016 2017 2018 13 2014 2015 2016 2017 2018 Five Years Group Financial Summary 2018 Year Ended 31 December 2014 RM'000 2015 RM'000 2016 RM'000 2017 RM'000 RM'000 104,585 Revenue 69,441 44,136 10,641 13,353 Profit/(loss) before taxation 16,651 5,084 (4,519) (57,941) (4,389) 12,129 Profit/(loss) attributable to equity holders 2,860 (4,626) (57,139) (4,230) STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 Group Company 2018 RM 2017 RM Note 2018 RM 2017 RM ASSETS Non-current assets Property, plant and equipment Investment property Intangible assets Investment in subsidiaries Total non-current assets 5 6 7 8 54,013,356 185,279 17,899,783 43,380,542 191,958 17,507,738 20,920,209 20,920,209 18,740,002 18,740,002 72,098,418 61,080,238 26,461 5,325,789 Current assets Inventories Trade and other receivables Contract assets/other current assets Current tax assets Fixed deposits placed with licensed banks Cash and bank balances 10 11 12 13 1,746,567 8,992,279 891,580 402,279 356,812 13,653,680 2,009,046 808,196 14 15 5,597,282 1,187,912 18,817,899 5,152,499 4,233,265 26,213,498 24,352 50,813 3,903,882 9,229,671 Non-current assets classified as held for sale 16 Total current assets 6,036,841 24,854,740 96,953,158 26,213,498 87,293,736 50,813 20,971,022 9,229,671 27,969,673 TOTAL ASSETS STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 (CONTINUED) Group Company 2017 2018 RM 2018 RM 2017 Note RM RM EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital Other reserve Revaluation reserve Foreign currency translation reserve Accumulated losses 81,559,823 17 18 19 20 81,559,823 (23,144,715) 81,559,823 81,559,823 (23, 144,715) 1,801,171 647,638 (36,915,899) 23,948,018 (48,458) 23,899,560 504,481 (32,685,557) 26,234,032 (84,276) 26,149,756 (62,607,739) 18,952,084 (54,892,167) 26,667,656 Non-controlling interests TOTAL EQUITY 18,952,084 26,667,656 Non-current liabilities Finance lease liabilities Loans and borrowings Provision for retirement benefits Deferred tax liabilities Trade and other payables Preference shares 21 22 23 24 25 26 92,692 29,244,983 32,022 582,119 4,103,432 5,611,579 39,666,827 266,296 10,366,351 21,984 230,454 4,000,000 Total non-current liabilities 14,885,085 Current liabilities Finance lease liabilities Loans and borrowings Current tax liabilities Trade and other payables Contract liabilities/other current liabilities Total current liabilities 21 22 13 25 12 2,018,938 1,302,017 94,561 8,804,937 400 23,628,718 858,155 33,386,771 73,053,598 96,953,158 379,502 21,890,994 18,764 23,680,538 289,097 46,258,895 61,143,980 87,293,736 TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 2,018,938 2,018,938 20,971,022 1,302,017 1,302,017 27,969,673 STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 (CONTINUED) Group Company 2018 2018 2017 RM Note RM RM 2017 RM EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital Other reserve Revaluation reserve Foreign currency translation reserve Accumulated losses 81,559,823 17 18 19 20 81,559,823 (23,144,715) 81,559,823 81,559,823 (23, 144,715) 1,801,171 647,638 (36,915,899) 23,948,018 (48,458) 23,899,560 504,481 (32,685,557) 26,234,032 (84,276) 26,149,756 (62,607,739) 18,952,084 (54,892,167) 26,667,656 Non-controlling interests TOTAL EQUITY 18,952,084 26,667,656 Non-current liabilities Finance lease liabilities Loans and borrowings Provision for retirement benefits Deferred tax liabilities Trade and other payables Preference shares Total non-current liabilities 21 22 23 24 25 26 92,692 29,244,983 32,022 582,119 4,103,432 5,611,579 39,666,827 266,296 10,366,351 21,984 230,454 4,000,000 14,885,085 Current liabilities Finance lease liabilities Loans and borrowings Current tax liabilities Trade and other payables Contract liabilities/other current liabilities 21 22 13 25 12 2,018,938 1,302,017 94,561 8,804,937 400 23,628,718 858,155 33,386,771 73,053,598 96,953,158 379,502 21,890,994 18,764 23,680,538 289,097 46,258,895 61,143,980 87,293,736 Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 2,018,938 2,018,938 20,971,022 1,302,017 1,302,017 27,969,673 STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 Group 2018 RM 2017 RM Note 2018 RM Company 2017 RM 27 28 240,000 Revenue Cost of sales Gross profit/(loss) 40,000 13,353,488 (8,190,817) 5,162,671 240,000 10,641,265 (12,856,747) (2,215,482) 563,943 (12,703,530) (315,501) 40,000 29 890,356 (5,893,263) (271,510) 1,267 (1,390,516) 86,367 (2,013,241) (40,303) (1,619,243) (1,771,292) (2,618,534) (1,573,490) (39,208,654) (55,452,714) (2,524,746) (6,566,323) (7,715,572) (46,730,000) (48,616,874) 30 31 33 Other income Administrative expenses Sales and marketing expenses Net impairment losses of financial assets Other expenses Operating loss Finance costs Share of results of an associate, net of tax Loss before tax Income tax expense Loss for the financial year Other comprehensive (loss)/income, net of tax Item that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Revaluation surplus on property, plant and equipment Total comprehensive loss for the financial year (7,715,572) 36,485 (57,940,975) 649,519 (57,291,456) (48,616,874) (4,389,826) 142,588 (4,247,238) (7,715,572) (48,616,874) 146,871 (78,574) 1,801,171 (2,299,196) (57,370,030) (7,715,572) (48,616,874) Loss attributable to: Owners of the Company Non-controlling interests (7,715,572) (48,616,874) (4,230,342) (16,896) (4,247,238) (57,139,388) (152,068) (57,291,456) (7,715,572) (48,616,874) Total comprehensive loss attributable to: Owners of the Company Non-controlling interests (7,715,572) (48,616,874) (2,286,014) (13,182) (2,299,196) (57,214,501) (155,529) (57,370,030) (7,715,572) (48,616,874) Loss per ordinary share attributable to the owners of the Company: Basic (sen) Diluted (sen) 34 (a) 34 (b) (1.73) (1.73) (25.08) (25.08) The accompanying notes form an integral part of these financial statements. STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 Attributable to Owners of the Company Foreign currency Other Revaluation translation reserve reserve reserve RM RM RM Share capital RM Share premium RM Retained earnings / (Accumulated losses) RM Non- controlling interests RM Total Total equity RM Note RM 44,400,002 32,775,321 (23, 144,715) 583,055 24,453,831 79,067,494 67,792 79,135,286 (78,574) (57,139,388) (57,217,962) (152,068) (57,370,030) 17 4,384,500 4,384,500 Group At 1 January 2017 Total comprehensive loss for the financial year Transaction with owners: Shares issued for Private Placement Transition to no par value regime Total transactions with owners At 31 December 2017 Total comprehensive loss for the financial year Transaction with owners: Non-controlling interests arising arising from incorporation of a new subsidiary Total transactions with owners At 31 December 2018 4,384,500 32,775,321 37,159,821 81,559,823 (32,775,321) (32,775,321) 4,384,500 26,234,032 4,384,500 (84,276) 26,149,756 (23, 144,715) 504,481 (32,685,557) 1,801,171 143,157 (4,230,342) (2,286,014) (13,182) (2,299,196) 49,000 49,000 49,000 49,000 (48,458) 23,899,560 81,559,823 (23,144,715) 1,801,171 647,638 (36,915,899) 23,948,018 STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED) Share capital RM Attributable to owners of the Company Share Accumulated premium losses RM RM Total equity RM 44,400,002 32,775,321 (6,275,293) 70,900,030 (48,616,874) (48,616,874) Company At 1 January 2017 Total comprehensive loss for the financial year Transaction with owners: Shares issued for Private Placement Transition to no par value regime Total transactions with owners At 31 December 2017 Total comprehensive loss for the financial year At 31 December 2018 17 4,384,500 4,384,500 32.775,321 37,159,821 81,559,823 (32,775,321) (32,775,321) 4,384,500 26,667,656 (54,892,167) (7,715,572) (62,607,739) (7,715,572) 18,952,084 81,559,823 STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 Group 2018 RM Company 2018 2017 RM RM 2017 RM Note (4,389,826) (57,940,975) (7,715,572) (48,616,874) 595,037 2,467 54,828 1,033,001 2,497 12,796 (317,431) 2,524,746 (222,170) 117,597 20,046 208,913 (1,267) (183,509) 2,618,534 (221,865) (86,367) 6,566,323 46,730,000 40,303 4,428 13,411 1,573,490 13,469 35,642,447 3,337,248 4,316 11,066 Cash flows from operating activities Loss before tax Adjustments for Bad debts written off Depreciation of property, plant and equipment Depreciation of investment property Deposit written off Finance income Finance costs Gain on disposal of property, plant and equipment Inventories written down Impairment loss on goodwill Impairment loss on intangible assets Impairment loss on investment in subsidiaries Impairment loss on trade receivables Property, plant and equipment written off Provision for foreseeable losses Provision for liquidated and ascertained damages Provision for retirement benefits Reversal of impairment loss on investment in an associate Reversal of impairment loss on trade receivables Share of result of an associate, net of tax Unrealised loss on foreign exchange Operating loss before changes in working capital Changes in working capital: Inventories Contract assets Contract liabilities Trade and other receivables Trade and other payables Net cash flows generated from/(used in) operations Interests received Interests paid Income tax refunded Income tax paid Net cash (used in)/from operating activities (54,483) (1,132,214) (36,485) 128,956 373,414 (2,513,212) (13,652,736) (1,150,516) (1,973,241) (1,397,563) 299,317 1,104,055 17,219,091 569,058 (148,602) 5,712,010 3,033,907 (2,917,850) 8,641,661 556,498 15,392,638 (292,100) 317,431 (1,174,422) (1,829,299) 322,275 (9,260) (1,763,921) (597,009) 12,116,849 (9,979) (8,657) 716,921 564,506 (443,574) (1,417,392) 1,267 86,367 (442,307) (1,331,025) STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED) Group 2018 RM Company 2018 2017 RM RM 2017 RM Note (392,045) 49,000 (291,532) (478,605) Cash flows from investing activities Acquisition of a subsidiariy, net of cash acquired Development costs Incorporation of a subsidiary Net change in amounts due from subsidiaries Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Deposits received Return on investment in an associate Net cash used in investing activities (3,437,223) (6,367,157) (15,093,331) (20,656,295) 408,262 500,132 4,828,000 7,250,000 204,783 (10,200,114) (13,471,517) (3,437,223) (6,367,157) (a) Cash flows from financing activities Decrease/(Increase) in deposits pledged Drawdown of loans and borrowings Interests paid Net changes in amount due to directors Proceeds from issuance of ordinary shares Proceeds from issuance of preference shares Repayment of finance lease liabilities Repayment of loans and borrowings Net cash from/(used in) financing activities Net increasel (decrease) in cash and cash equivalents 4,384,500 (444,783) 4,052,380 32,666,971 (2,758,014) (784,333) (695,447) (1,540,669) 1,248,741 4,384,500 5,197,272 (456,256) (555, 841) (14,746,394) (14,064,064) 19,891,808 (8,387,745) 9,094,685 (9,742,413) (3,879,530) 4,384,500 (3,313,682) (11,736,458) (1,963,796) 3,903,882 7,217,564 Cash and cash equivalents as at beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents as at end of the financial year (12,036) (30,249) (2,653,809) (11,736,458) 24,352 3,903,882 Analysis of cash and cash equivalents: Fixed deposits placed with licensed banks Cash and bank balances Bank overdrafts 14 15 22 24,352 3,903,882 5,597,282 5,152,499 1,187,912 4,233,265 (3,841,721) (15,969,723) 2,943,473 (6,583,959) (5,597,282) (5,152,499) (2,653,809) (11,736,458) 24,352 3,903,882 Less: Fixed deposits held as security values 14 24,352 3,903,882 STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED) (a) Reconciliation of liabilities arising from financing activities Non-cash foreign exchange movement RM Cash flows RM 1.1.2018 RM 31.12.2018 RM (2,289) Finance lease liabilities Term loans Other loans and borrowings Amount owing to directors Preference shares 645,798 11,214,845 5,072,777 5,773,572 (456,256) 20,004,418 (2,083,841) (936,606) 5,611,579 22,139,294 (9,191) 187,253 31,219,263 2,988,936 4,827,775 5,611,579 44,834,806 22,706,992 (11,480) Non-cash foreign exchange movement RM Cash flows RM 1.1.2017 RM 31.12.2017 RM (5,776) Finance lease liabilities Term loans Other loans and borrowings Amount owing to directors 1,207,415 13,972,859 19,136,841 4,538,400 38,855,515 (555,841) (2,758,014) (14,064,064) 1,235,172 (16,142,747) 645,798 11,214,845 5,072,777 5,773,572 22,706,992 (5,776)