KUALA LUMPUR (Jan 16): Datasonic Group Bhd has received a letter of extension (LoE) to supply 6.1 million raw MyKads and MyKad consumables to the National Registration Department (NRD).
In a bourse filing today, the group said the LoE was for a one-year period, from Jan 1, 2020 to Dec 31, 2020.
Datasonic had in May 2016 announced a 3½-year contract worth RM260.4 million for the supply of 12 million raw MyKads and MyKad consumables to NRD, from July 1, 2016 to Dec 31, 2019.
"Due to much better quality of the new MyKad raw cards and chips, there were much lower replacement of faulty chips and peel-off of MyKad cards.
"As a result, during the contract period of 3½ years, NRD only ordered 5.9 million (49.17%) of the 12 million units of MyKad raw cards with huge savings to the government," it said.
Datasonic said the contract is expected to contribute positively towards its earnings for the financial year ending March 31, 2020 and the financial year thereafter for the duration of the contract.
At the midday break, Datasonic shares fell 1.26% or 2 sen to RM1.57, valuing it at RM2.12 billion.