Financial Performance - For the six months ended June 30, 2023, total revenue was RM 34,959,000, representing a 67.5% contribution from major customers[8]. - The basic loss per share for the six months ended June 30, 2023, was RM (0.18), compared to RM (0.02) for the same period in 2022[44]. - The Group's net loss attributable to equity holders for the six months ended June 30, 2023, was RM (4,318,000), compared to RM (401,000) in the previous year[44]. - Total revenue for the six months ended June 30, 2023, was approximately RM45.9 million, a decrease from RM51.8 million for the same period in 2022, representing a decline of about 3.6%[157]. - Gross profit for the six months ended June 30, 2023, was approximately RM9.4 million, a decrease of about RM1.2 million or 11.1% from RM10.6 million in the same period of 2022[161]. - The Group reported a loss of approximately RM4.0 million for the six months ended June 30, 2023, compared to a loss of about RM17,000 in the same period of 2022[167]. - The loss for the period amounted to approximately RM4.0 million for the six months ended June 30, 2023, compared to a loss of approximately RM17,000 for the same period in 2022[185]. Revenue Breakdown - Revenue from outsourced document management services accounted for approximately 83.5% of total revenue for the six months ended June 30, 2023, up from 73.8% in the same period of 2022[159]. - Revenue from outsourced insurance risk analysis and marketing services decreased to approximately RM4.5 million, representing about 9.7% of total revenue for the six months ended June 30, 2023, down from approximately RM10.9 million or 21.1% in the same period of 2022[159]. - Revenue from the distribution and sales of medical equipment represented approximately 1.0% of total revenue for the six months ended June 30, 2023, amounting to approximately RM0.5 million, up from RM0.1 million or 0.2% in the same period of 2022[161]. - Revenue from enterprise software solutions increased by approximately RM0.1 million or 3.6% from RM2.6 million for the six months ended 30 June 2022 to RM2.7 million for the six months ended 30 June 2023[181]. Expenses and Costs - Staff costs increased to RM 10,627,000 for the six months ended June 30, 2023, up from RM 6,220,000 in 2022, reflecting a significant rise in employee-related expenses[41]. - Administrative expenses increased by approximately RM2.6 million or 26.8% from RM9.9 million for the six months ended 30 June 2022 to RM12.5 million for the six months ended 30 June 2023, primarily due to increased staff costs[183]. - Cost of sales decreased by approximately RM4.8 million or 11.5% from RM41.2 million for the six months ended June 30, 2022, to RM36.4 million for the same period in 2023[161]. Assets and Liabilities - The Group's total non-current assets as of June 30, 2023, were RM 33,920,000, an increase from RM 31,757,000 as of December 31, 2022[30]. - Total assets decreased to RM98,403 thousand from RM111,760 thousand as of December 31, 2022, reflecting a decline of approximately 12%[108]. - Total liabilities decreased from RM 23,901,000 as of December 31, 2022, to RM 13,153,000 as of June 30, 2023, representing a reduction of approximately 45%[95]. - Current liabilities decreased significantly to RM7,164 thousand from RM16,898 thousand, indicating a reduction of approximately 58%[108]. - The Group's total equity as of June 30, 2023, was RM 85,250,000, down from RM 87,859,000 as of December 31, 2022, indicating a decrease of approximately 3%[95]. Cash Flow and Liquidity - Cash and cash equivalents amounted to RM 37,931,000, compared to RM 9,916,000 in the previous period[79]. - The Group's cash and bank balances were approximately RM37.9 million as of June 30, 2023, down from approximately RM53.9 million as of December 31, 2022[187]. - The Group maintained a healthy liquidity position and did not use any risk hedging tools for the six months ended June 30, 2023[172]. - The Group's current ratio as of June 30, 2023, was approximately 9.0 times, up from approximately 4.7 times as of December 31, 2022, indicating a strong liquidity position[188]. Corporate Governance and Management - The company has established an Audit Committee consisting of three independent non-executive Directors to ensure compliance with governance standards[60]. - The company has maintained a high standard of corporate governance, with ongoing reviews of the Board's structure and effectiveness[59]. - Mr. Ma has been appointed as the new chairman and CEO since May 1, 2023, following Mr. Ling's resignation, focusing on daily operations and strategic business plans[75]. Strategic Development and Future Plans - The company is engaged in the operation of outsourced insurance risk analysis services and medical equipment distribution, with plans for strategic business development in the PRC[75]. - The Group aims to develop advanced internet cloud technology and big data analysis for the insurance industry in the PRC, focusing on sustainable growth[136]. - The Group plans to pursue strategic acquisitions and business opportunities to expand its market presence regionally[128]. - The Group is considering partnerships with AI technology firms to integrate AI and machine learning into its applications[134]. - The Group has expanded its presence in China since July 2021, providing outsourced insurance risk analysis and marketing services, and began distributing and selling medical equipment in China from April 2022[138]. Technology and Innovation - The upgraded Streamline Suite platform will integrate live streaming and video technology, enhancing customer interaction capabilities[132]. - The Group has allocated RM4.7 million (approximately HK$8.8 million) from the Share Offer proceeds to acquire livestreaming and video technology, enhancing its Streamline Suite platform for real-time customer interactions[154]. - Future plans include integrating advanced capabilities such as customer data analytics and artificial intelligence (AI) to improve the efficiency of the Streamline Suite platform[154]. - The integration of livestreaming and video technology capabilities is expected to be fully completed by the end of June 2024, enhancing customer engagement[155].

Financial Performance - Total revenue from contracts with customers for the six months ended June 30, 2023, was 45,861 thousand MYR, down from 51,770 thousand MYR in the same period of 2022, indicating a decrease of about 11.4%[9] - The company reported a net loss attributable to equity holders of 4,318 thousand MYR for the six months ended June 30, 2023, compared to a loss of 401 thousand MYR in the same period of 2022, reflecting a significant increase in losses[15] - Total revenue for the six months ended June 30, 2023, was approximately RM 45.9 million, a decrease from RM 51.8 million for the same period in 2022, primarily from outsourcing services[37] - The group reported a loss of approximately RM 4.0 million for the six months ended June 30, 2023, compared to a loss of RM 17,000 for the same period in 2022, attributed to reduced gross profit and increased administrative expenses[45] - For the six months ended June 30, 2023, the company reported a total comprehensive loss of RM 2,609,000 compared to a profit of RM 484,000 for the same period in 2022, representing a significant decline[119] - The company's basic and diluted loss per share for the six months ended June 30, 2023, was RM 0.18, compared to RM 0.02 for the same period in 2022, indicating a worsening financial performance[119] Assets and Liabilities - The total assets as of June 30, 2023, amounted to 98,403 thousand MYR, a decrease from 111,760 thousand MYR as of December 31, 2022, representing a decline of approximately 11.9%[3] - The company’s total liabilities as of June 30, 2023, were 34,147 thousand MYR, compared to 32,289 thousand MYR as of December 31, 2022, indicating an increase of about 5.8%[3] - As of June 30, 2023, total loans and borrowings amounted to approximately RM 8.1 million, a decrease of RM 5.3 million or 39.6% from RM 13.4 million as of December 31, 2022[46] - The company’s net assets as of June 30, 2023, were reported at 85,250 thousand MYR, a slight decrease from 87,859 thousand MYR at the end of 2022[111] - Total liabilities decreased to RM 13,153,000 as of June 30, 2023, from RM 23,901,000 as of December 31, 2022, showing a reduction of about 45%[124] Employee Costs - Employee costs for the six months ended June 30, 2023, totaled 10,627 thousand MYR, up from 6,220 thousand MYR in the same period of 2022, marking an increase of approximately 70.5%[13] - The total employee compensation for the six months ended June 30, 2023, was approximately RM 10.6 million, an increase from RM 6.2 million for the same period in 2022[55] Revenue Sources - The revenue from outsourcing services, particularly document management, was 38,293 thousand MYR for the six months ended June 30, 2023, slightly up from 38,194 thousand MYR in the same period of 2022[9] - The group’s revenue from outsourcing services accounted for approximately 99.0% of total revenue for the six months ended June 30, 2023, compared to 99.8% for the same period in 2022[37] - Revenue from enterprise software solutions accounted for approximately 5.8% of total revenue for the six months ended June 30, 2023, up from 4.9% for the same period in 2022, with an increase from approximately 2.6 million MYR to approximately 2.7 million MYR, representing a growth of about 3.6%[71] - Revenue from medical equipment distribution and sales accounted for approximately 1.0% of total revenue for the six months ended June 30, 2023, compared to approximately 0.2% for the same period in 2022, increasing from approximately 0.1 million MYR to approximately 0.5 million MYR[72] Strategic Plans - The company plans to expand its market share locally and explore regional expansion to capture more market share[34] - The company aims to enhance its service offerings in Malaysia, including electronic document delivery and medical ID card printing, as part of its growth strategy[32] - The group plans to develop advanced internet cloud technology and big data analytics to create comprehensive and efficient service systems for clients in the insurance sector in China[36] - The company plans to allocate 89.8% of its unutilized funds to enhance technical capabilities and develop new applications through external software developers[89] - The company aims to strengthen its marketing efforts to acquire new customers, reallocating part of its unutilized funds for this purpose, which is projected to be 10.2% of the total[89] - The company is seeking strategic acquisitions and business opportunities to expand its operations and improve its service offerings[151] Operational Changes - The company has adopted new international financial reporting standards, which did not have a significant impact on its performance or financial position during the reporting period[5] - The company’s management structure has changed, with Mr. Ma taking over as both Chairman and CEO from May 1, 2023, following Mr. Ling's resignation[60] - The company is upgrading its IT infrastructure and expanding its hosting capabilities, with a new data center expected to be completed by the end of June 2024, enhancing its document hosting capabilities for clients[65] - The company has transformed an existing building acquired in 2022 into a new data center to upgrade its IT infrastructure and expand its outsourcing document management services[151] Compliance and Regulations - The company has established internal policies to comply with relevant regulations in China, including the Data Security Law and the Personal Information Protection Law[181] Cash Flow and Financing - As of June 30, 2023, cash and bank balances amounted to approximately MYR 37.9 million, down from MYR 53.9 million as of December 31, 2022[191] - The capital debt ratio as of June 30, 2023, was approximately 10.0%, a decrease from 15.8% as of December 31, 2022, due to a reduction in interest-bearing bank loans from approximately MYR 13.4 million to MYR 8.1 million[194] - The company did not engage in any significant investments or acquisitions during the six months ended June 30, 2023[196]

Revenue Performance - Revenue from outsourced insurance risk analysis and marketing services was approximately RM21.9 million, representing 20.7% of total revenue for the year ended 31 December 2022, down from 22.9% in 2021[4] - Revenue from enterprise software solutions increased by approximately RM0.7 million or 14.9% to approximately RM5.8 million for the year ended 31 December 2022, compared to RM5.1 million in 2021[5] - Revenue for the year ended December 31, 2022, was RM59,236,000, a decrease of RM7,466,000 compared to RM51,770,000 in the previous year[19] - Revenue from outsourced document management services fell from RM81.2 million in 2021 to RM77.6 million in 2022, while revenue from insurance risk analysis services decreased from RM25.6 million to RM21.9 million during the same period[98] - The Group's revenue decreased by approximately 5.6% from RM111.9 million in 2021 to RM105.7 million in 2022, primarily due to declines in outsourced document management and insurance risk analysis services[98] Profitability and Expenses - Gross profit decreased by approximately RM3.2 million or 11.9% to approximately RM23.4 million for the year ended 31 December 2022, with a gross profit margin of 22.2%, down from 23.8% in 2021[8] - Administrative expenses increased by approximately RM3.4 million or 18.7% to approximately RM21.4 million for the year ended 31 December 2022, primarily due to increased staff costs and research costs[8] - Profit before tax decreased to approximately RM2.7 million for the year ended 31 December 2022, down from RM9.1 million in 2021[9] - Profit for the year amounted to approximately RM0.3 million for the year ended 31 December 2022, down from RM4.5 million in 2021[9] - The Group reported a net loss attributable to shareholders of RM0.8 million for the year ended December 31, 2022, compared to a net profit of RM2.7 million in the previous year, primarily due to reduced gross profit and increased administrative expenses[22] Dividends and Reserves - The company did not recommend the distribution of a final dividend for the year ended 31 December 2022, compared to no dividend in 2021[9] - As of December 31, 2022, the Company's reserves available for distribution to shareholders amounted to approximately RM19.3 million, a decrease from RM29.8 million in 2021[141] - The board does not recommend a final dividend for the year ended December 31, 2022, maintaining a focus on cash reserves for working capital and future growth[116] Investments and Capital Expenditures - As of December 31, 2022, the Group had capital commitments of approximately RM1.3 million for converting an existing building into a Data Centre and RM4.8 million for acquiring intangible assets related to livestreaming and video technology[11] - The Group has allocated approximately RM6.2 million (equivalent to approximately HK$12.0 million) for the design and project management of the Data Centre since 2020[38] - The Group acquired a building in Malaysia for RM12.0 million (approximately HK$22.3 million) to convert into a Data Centre, with RM10.3 million (approximately HK$19.5 million) funded from the net proceeds of the Company's share offer[38] - The conversion of the building into the Data Centre began in June 2022 and is expected to be completed by the end of 2023[38] Strategic Initiatives and Future Plans - The Group is investing in upgrading its IT infrastructure and expanding capacity to host its Streamline Suite in a new Data Centre facility in Malaysia[25] - The new Data Centre facility aims to enhance document hosting capabilities for electronic distribution and enterprise software solutions to existing and new customers[25] - The Group's future growth prospects are viewed positively, with a focus on innovation and adapting to market demands[25] - Future plans include developing advanced internet cloud technology and big data analysis for the insurance industry in the PRC[39] - The Group intends to strengthen relationships with existing customers and capture new customers in Malaysia, Singapore, and the PRC[36] Compliance and Risk Management - The Group's subsidiary in the PRC must comply with the PRC Data Security Law and the PRC Personal Information Protection Law, with specific requirements still to be clarified[130] - The Group regularly obtains legal advice to manage and control policy and regulatory risks associated with its operations in the PRC[130] - The Group's management is focused on ensuring compliance with relevant regulations and making necessary operational adjustments[130] Market Conditions and Demand - The market demand is evolving, driven by the COVID-19 pandemic, with a focus on advanced technologies such as artificial intelligence for customer engagement and automation[25] - The Group has experienced increased demand for SaaS solutions in Malaysia, leading to a rise in enterprise software solutions services from existing and new customers[74] Governance and Management - The Group's board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[128] - The Group has experienced changes in its board composition, with several appointments and resignations in 2022 and 2023[128]

Financial Performance - For the fiscal year ended December 31, 2022, total revenue was approximately MYR 105.7 million, a decrease of about 5.6% from MYR 111.9 million in the previous year[11]. - Gross profit for the same period was approximately MYR 23.4 million, down approximately 11.9% from MYR 26.6 million in 2021[11]. - The company reported a loss attributable to shareholders of approximately MYR 0.8 million, compared to a profit of MYR 2.7 million in the previous year[11]. - Basic loss per share for the year was approximately MYR 0.10, a decline from a basic earnings per share of MYR 0.34 in the prior year[11]. - The company's total comprehensive loss for the year was MYR 15,000, compared to a total comprehensive income of MYR 6.01 million in 2021[12]. - The group’s pre-tax profit was approximately RM 2.7 million for the year ended December 31, 2022, down from RM 9.1 million for the year ended December 31, 2021[129]. - The group’s net profit for the year ended December 31, 2022, was approximately RM 0.3 million, a decrease from RM 4.5 million for the year ended December 31, 2021[130]. Revenue Sources - Revenue from outsourcing services was MYR 105.68 million, with significant contributions from document management and insurance marketing services[24]. - Revenue from major customer groups accounted for 62.80% of total revenue, down from 74.73% in the previous year, indicating a diversification in revenue sources[42]. - Outsourced document management services and related software applications contributed approximately 99.6% of total revenue in 2022[96]. - Revenue from outsourced insurance risk analysis and marketing services was approximately 21.9 million Ringgit in 2022, down from 25.6 million Ringgit in 2021, representing about 20.7% of total revenue[98]. - Revenue from enterprise software solutions increased by approximately RM 0.7 million or 14.9% to about RM 5.8 million for the year ended December 31, 2022, compared to RM 5.1 million for the year ended December 31, 2021[99]. Assets and Liabilities - Total assets as of December 31, 2022, were MYR 111.76 million, down from MYR 117.16 million in 2021[6]. - Non-current liabilities decreased to MYR 7.00 million in 2022 from MYR 9.87 million in 2021[15]. - The company's total liabilities decreased from 19,422 million MYR to 16,898 million MYR, a reduction of approximately 13%[34]. - The net current assets decreased from 77,789 million MYR to 62,573 million MYR, representing a decline of about 19.5%[34]. - The total trade receivables net amount decreased from 21,257 million MYR to 19,774 million MYR, a decline of approximately 7%[67]. - As of December 31, 2022, the company's debt-to-equity ratio was approximately 15.2%, down from 18.4% on December 31, 2021, primarily due to a reduction in interest-bearing bank loans from approximately RM 16.2 million to RM 13.4 million[136]. Cash Flow and Investments - The company’s cash and bank balances were MYR 53.93 million, down from MYR 66.28 million in the previous year[14]. - The company invested RM 3.0 million in a structured financial product issued by CIMB Islamic Bank, which matured in April 2022, yielding approximately RM 35,000 in interest income during the investment period[137]. - The company generated approximately RM 21,000 in interest from its investment portfolio during the period from January 1, 2022, to April 18, 2022[137]. - The company’s investment strategy focuses on low-risk products to generate stable interest income, with regular monitoring of investment performance[137]. Dividends - The company did not recommend a final dividend for the year ended December 31, 2022, compared to no final dividend in the previous year[11]. - The group did not recommend a final dividend for the year ended December 31, 2022, consistent with the previous year where no dividend was declared[159]. Operational Developments - The company plans to expand its data processing and technology capabilities by converting an existing building into a new data center[92]. - The acquisition of a building in Malaysia for 12.0 million Ringgit (approximately 22.3 million HKD) is aimed at upgrading IT infrastructure and expanding outsourced services[94]. - The construction of the new data center is expected to be completed by the end of 2023[94]. - The company aims to maintain and strengthen relationships with existing clients while acquiring new clients in Malaysia, Singapore, and China[93]. - The company has utilized approximately 6.2 million Ringgit (around 12.0 million HKD) from internal resources for data center design and project management since 2020[94]. - The company is committed to compliance with China's data security and personal information protection laws[95]. - The company experienced a decline in demand for outsourced insurance risk analysis services due to the unprecedented COVID-19 outbreak in China[98]. - The group plans to develop advanced internet cloud technology and big data analytics to create comprehensive and efficient service systems for clients in the insurance and insurance-related industries in China[116]. - The company is upgrading its IT infrastructure and expanding its data center capabilities in Malaysia to enhance document hosting for its outsourcing and enterprise software solutions[199]. - The new data center facility will improve the company's ability to provide electronic distribution and enterprise software solutions, supporting its outsourcing document management services[199]. Employee and Administrative Expenses - The total employee compensation for the year ended December 31, 2022, was approximately RM 13.5 million, an increase from RM 11.3 million in 2021[173]. - Administrative expenses increased by approximately RM 3.4 million or 18.7% to about RM 21.4 million for the year ended December 31, 2022, primarily due to increased employee costs and research costs related to insurance risk analysis services[104]. - The group had 168 employees as of December 31, 2022, down from 172 employees in the previous year[173]. Compliance and Governance - The company’s board committees' terms of reference were revised and adopted on January 3, 2023[140]. - The company has not identified any violations of the standard code of conduct regarding securities trading by its employees for the year ending December 31, 2022[151]. - The group’s auditor, Ernst & Young PLT, reviewed the financial statements and confirmed that they were consistent with the amounts presented in the consolidated financial statements[155].

Revenue and Financial Performance - C-Link Squared Limited's primary revenue stream comes from outsourced document management services, including electronic document delivery and document imaging services[6]. - Total revenue for the six months ended June 30, 2022, was approximately RM59.2 million, an increase from RM45.4 million for the same period in 2021, representing a growth of approximately 30.5%[27]. - Revenue from outsourced services accounted for approximately 87.3% of total revenue, while the distribution and sales of medical equipment represented approximately 12.7%[27]. - Revenue from outsourced document management services decreased by approximately RM5.1 million or 11.7%, from RM43.3 million in 2021 to RM38.2 million in 2022[27]. - Revenue from outsourced insurance risk analysis and marketing services was RM10.9 million, representing approximately 18.5% of total revenue for the six months ended June 30, 2022, compared to nil in 2021[27]. - Revenue from enterprise software solutions increased by approximately RM0.5 million or 23.2%, from RM2.1 million in 2021 to RM2.6 million in 2022, representing approximately 4.3% of total revenue[30]. - The company reported a loss of approximately RM17,000 for the six months ended June 30, 2022, compared to a profit of approximately RM1.9 million for the six months ended June 30, 2021[41]. - The total comprehensive income for the period was RM 484,000, a significant decrease from RM 2,558,000 in the same period of 2021[60]. Operational Developments - The company has seen increased demand for its software as a service (SaaS) solutions, particularly from financial institutions in Malaysia, leading to a focus on its Streamline Suite[8]. - C-Link Squared Limited is upgrading its IT infrastructure and expanding its capacity to host services in a new tier 3 compliant data center in Malaysia[9]. - The new data center facility will enhance the Group's document hosting capabilities for electronic distribution and enterprise software solutions[9]. - The company plans to convert an existing building into a new data center to further expand its outsourced document management services and enterprise software solutions[14]. - The company is engaging external software development vendors to develop new applications within the Streamline Suite[14]. - The Group aims to develop advanced internet cloud technology and big data analysis to create an efficient service system for customers in the insurance industry in the PRC[22]. Market and Customer Relations - C-Link Squared Limited aims to maintain and strengthen relationships with existing customers while capturing new customers in Malaysia, Singapore, and the PRC[15]. - The company is pursuing strategic acquisitions and business opportunities to enhance market presence and capture further market share[15]. - The company aims to optimize IT document management for its clients through proprietary software solutions developed by experienced IT engineers[7]. Financial Position and Cash Flow - As of June 30, 2022, total loans and borrowings amounted to approximately RM14.7 million, a decrease of RM1.5 million or 9.3% compared to RM16.2 million as of December 31, 2021[43]. - The Group's current ratio was around 5.4 times as of June 30, 2022, compared to approximately 5.3 times as of December 31, 2021[43]. - The Group's cash and bank balances were approximately RM50.2 million as of June 30, 2022, down from RM66.3 million as of December 31, 2021[43]. - The gearing ratio was approximately 16.6% as of June 30, 2022, down from approximately 18.4% as of December 31, 2021, due to a decrease in interest-bearing bank loans[44]. - The Group maintained a solid financial position and was in a net cash position as of June 30, 2022[43]. - The Group's working capital requirements were mainly financed by internal resources during the reporting period[43]. - The company reported cash and bank balances of RM 11,563 thousand as of June 30, 2022, an increase from RM 10,394 thousand in 2021[65]. Costs and Expenses - Cost of sales increased by approximately RM13.4 million or 38.1%, from RM35.2 million in 2021 to RM48.6 million in 2022[33]. - Administrative expenses increased by approximately RM3.3 million or 49.7% from RM6.6 million for the six months ended June 30, 2021, to RM9.9 million for the six months ended June 30, 2022, mainly due to increased staff costs and research and development costs[39]. - Profit before tax amounted to approximately RM1.3 million for the six months ended June 30, 2022, a decrease from RM3.7 million for the six months ended June 30, 2021, primarily due to increased administrative expenses[41]. Strategic Investments and Acquisitions - The Group has invested approximately RM6.2 million (equivalent to approximately HK$12.0 million) from internal resources for the design and project management of the Data Centre since 2020[18]. - The Group acquired a building in Malaysia for the Data Centre at a consideration of RM12.0 million (approximately HK$22.3 million), with RM10.3 million (approximately HK$19.5 million) funded from the proceeds of the Company's share offer[18]. - The company plans to acquire a building in Malaysia for RM 12 million (approximately HK$22.27 million) to convert it into a data center, expected to be completed by December 2023[54]. Compliance and Governance - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors during the six months ended June 30, 2022[122]. - The Audit Committee reviewed the interim financial information for the six months ended June 30, 2022, and found it compliant with relevant accounting standards[131]. - The company has five independent non-executive directors on the board to ensure a balance of powers and authorities[128].

Financial Performance - Revenue increased by 45.9% to RM 111,901,000 from RM 76,719,000[4] - Gross profit rose by 38.8% to RM 26,631,000 compared to RM 19,185,000[4] - Profit before tax surged by 1193.5% to RM 9,106,000 from RM 704,000[4] - Profit attributable to equity holders of the Company for the year was RM 2,726,000, a significant recovery from a loss of RM 5,065,000 in the previous year[4] - Basic and diluted earnings per share improved to RM 0.34 from a loss of RM 0.67[4] - Total revenue for the year ended 31 December 2021 was approximately RM111.9 million, an increase from RM76.7 million in 2020, primarily from outsourced document management services and enterprise software solutions[27] - The profit for the year ended 31 December 2021 amounted to approximately RM4.5 million, a turnaround from a loss of approximately RM5.1 million in 2020[36] - The net profit attributable to equity holders was approximately RM2.7 million in 2021, compared to a net loss of approximately RM5.1 million in 2020[15] Assets and Equity - Total assets increased by 10.2% to RM 117,162,000 from RM 106,321,000[5] - Total equity attributable to equity holders of the Company rose by 5.2% to RM 85,147,000 from RM 80,917,000[5] - Cash and bank balances increased to RM66.3 million as at 31 December 2021, up from RM40.8 million in 2020[36] - The Group's reserves available for distribution to shareholders amounted to approximately RM29.8 million as of December 31, 2021, down from RM39.2 million in 2020[100] Financial Ratios - Current ratio decreased by 15.4% to 5.3 from 6.2[5] - Gearing ratio improved to 18.4% from 22.8%[5] - Return on equity was 3.2%, a turnaround from a negative 6.3% in the previous year[5] Revenue Sources - Revenue from outsourced document management services increased from approximately RM74.4 million in 2020 to approximately RM81.2 million in 2021[13] - Revenue from enterprise software solutions rose from approximately RM2.3 million in 2020 to approximately RM5.1 million in 2021[13] - Revenue from outsourced insurance risk analysis and marketing services accounted for approximately 22.9% of total revenue in 2021, amounting to RM25.6 million, mainly due to a newly acquired subsidiary in the PRC[27] Operational Developments - The Group acquired approximately 51% of the equity interest in Qingdao Yongbao, which is engaged in outsourced insurance risk analysis and marketing services in China, to capitalize on the growing demand for online insurance services in the PRC[18] - The Group is upgrading its IT infrastructure and expanding capacity to host the Streamline Suite in a new Tier 3 Data Centre facility in Malaysia[21] - The Group's document management services include electronic document delivery, document print and mail fulfillment, and document imaging and scanning services[21] Strategic Initiatives - The Group aims to proactively prepare and adapt its solutions to respond to market changes and lay the foundation for future innovation and growth[18] - The Group plans to pursue strategic acquisitions to enhance market presence and profitability[23] - The Group's future strategies include increasing visibility and operational efficiency through obtaining Multimedia Super Corridor (MSC) status in Malaysia[23] Human Resources - The total remuneration cost for employees amounted to approximately RM11.3 million for the year ended December 31, 2021, compared to approximately RM10.6 million in 2020[48] - The Group offers financial subsidies for external training to selected high-potential employees to encourage staff development[176] Governance and Compliance - The Company has confirmed compliance with disclosure requirements regarding related party transactions, which are fully exempted under Chapter 14A of the Listing Rules[111] - The Company has maintained compliance with all relevant regulations regarding connected transactions throughout the reporting period[111] - The Directors confirmed that there was no material breach of or non-compliance with applicable laws and regulations during the year ended December 31, 2021[161] Environmental and Social Responsibility - The Group's commitment to environmental sustainability includes promoting digital solutions to reduce paper usage and adopting sustainable printing options[171] - The Group has implemented internal policies to reduce energy consumption, including installing energy-efficient lighting and using automatic power shutdown systems[172] Market Risks - The Group's procurement and sales heavily rely on a small number of customers and suppliers, indicating potential risks in supply chain and revenue stability[163] - The Group's credit risk exposure includes two customers accounting for 53% of total net trade receivables, necessitating ongoing monitoring and action for long outstanding debts[94] Future Outlook - The Group will closely monitor market situations and update its business plans as needed to ensure business continuity and reduce the impact caused by COVID-19[95] - The expected timeline for utilizing the net proceeds has been extended to December 2023 for several purposes, including acquiring and converting an existing building into a data center[58]

Company Overview - C-Link Squared Limited is a Malaysia-based provider of outsourced document management services and related software applications[7]. - The company offers services including electronic document delivery, document print and mail fulfillment, and document imaging and scanning services[11]. - The company has developed proprietary software applications since around 2005, focusing on digital transformation and outsourced services for various industries[8]. - The outsourced document management services industry has rapidly evolved with internet technology, prompting the company to adapt its business model accordingly[9]. - The company is incorporated in the Cayman Islands and has its principal place of business in Malaysia[70]. Service Offerings - There is an increasing demand for the company's Streamline Electronic Document Warehouse (EDW) due to the global adoption of Software as a Service (SaaS) solutions[10]. - The Streamline EDW allows customers to host documents in the company's data center and access them over the internet[12]. - Most of the company's customers are financial institutions, necessitating that the Streamline EDW services be hosted in a Tier 3 data center[10]. - The company aims to enhance its service offerings under the Streamline Suite applications for more efficient document processing and electronic delivery[9]. - The company is positioned to benefit from the digitalization trend in the document management services industry[12]. Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately RM45.4 million, an increase from RM37.7 million for the same period in 2020, primarily from outsourced document management services and enterprise software solutions[22]. - Revenue from outsourced document management services represented approximately 95.4% of total revenue for the six months ended June 30, 2021, compared to 96.5% for the same period in 2020[23]. - Revenue from outsourced document management services increased by approximately RM6.9 million or 19.0% from RM36.4 million for the six months ended June 30, 2020, to RM43.3 million for the same period in 2021[23]. - Revenue from enterprise software solutions represented approximately 4.6% of total revenue for the six months ended June 30, 2021, up from 3.5% in 2020[25]. - Revenue from enterprise software solutions increased by approximately RM0.8 million or 55.7% from RM1.3 million for the six months ended June 30, 2020, to RM2.1 million for the same period in 2021[25]. Cost and Profitability - Cost of sales increased by approximately RM7.0 million or 25.0% from approximately RM28.2 million for the six months ended June 30, 2020, to approximately RM35.2 million for the six months ended June 30, 2021[29]. - Gross profit increased by approximately RM0.6 million or 6.3% to approximately RM10.1 million for the six months ended June 30, 2021, while gross profit margin decreased by approximately 3.0% to approximately 22.3%[30]. - Profit before tax amounted to approximately RM3.7 million for the six months ended June 30, 2021, compared to a loss before tax of approximately RM0.9 million for the same period in 2020[35]. - Profit for the period amounted to approximately RM1.9 million for the six months ended June 30, 2021, compared to a loss of approximately RM2.4 million for the same period in 2020[37]. Cash Flow and Liquidity - Net cash flows generated from operating activities for the six months ended June 30, 2021, were RM3,720,000, compared to a net cash outflow of RM22,911,000 in the same period of 2020[68]. - Cash and cash equivalents at the end of the period were RM27,253,000, slightly up from RM27,086,000 at the end of the same period in 2020[69]. - The Group's cash and bank balances were approximately RM46.8 million as of June 30, 2021, an increase from approximately RM40.8 million as of December 31, 2020[38]. - The current ratio was around 7.3 times as of June 30, 2021, up from approximately 6.2 times as of December 31, 2020[42]. Strategic Initiatives - The Group aims to expand its data processing and technical capacity by building a new Tier 3 data center and enhancing its outsourced document management services[14]. - The Group plans to strengthen its technical operation support team and expand its research and development team for new applications within its Streamline Suite[14]. - The Group intends to pursue strategic acquisitions and business opportunities to expand its market presence locally and regionally[14]. - The Group plans to allocate 7.8% of the net proceeds, approximately HK$5.7 million, for potential strategic acquisitions and business opportunities[59]. Shareholder Information - The total number of shares issued as of June 30, 2021, was 800,000,000[102]. - The company has an authorized share capital of 1,500,000,000 ordinary shares with a par value of HK$0.01, unchanged from December 31, 2020[95]. - The weighted average number of ordinary shares in issue during the period was 800,000,000, an increase from 704,395,604 ordinary shares in the previous year[90]. - Jupiter Rain Company Limited holds 240,000,000 shares, representing 30% of the total 800,000,000 shares issued as of June 30, 2021[110]. Governance and Compliance - The company has complied with all applicable Code Provisions of the Corporate Governance Code since the Listing Date up to June 30, 2021, except for the separation of roles between chairman and chief executive[113]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2021, and found it compliant with relevant accounting standards[116]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance since the listing date up to June 30, 2021[109].

Financial Performance - Revenue for 2020 was RM 76,719,000, representing a 7.3% increase from RM 71,526,000 in 2019[3] - Gross profit decreased by 35.2% to RM 19,185,000 from RM 29,622,000 in 2019[3] - Profit before tax fell significantly by 96.3% to RM 704,000 compared to RM 19,015,000 in the previous year[3] - The company reported a loss for the year of RM 5,065,000, a decline of 138.8% from a profit of RM 13,053,000 in 2019[3] - Basic and diluted loss per share was RM 0.67, down 130.7% from earnings of RM 2.18 per share in 2019[3] - Total revenue for the years ended December 31, 2019, and December 31, 2020, was approximately RM71.5 million and RM76.7 million, respectively, primarily from outsourced document management services and enterprise software solutions[42] - Revenue from outsourced document management services represented approximately 90.2% and 97.0% of total revenue for the years ended December 31, 2019, and December 31, 2020, respectively, with an increase of RM9.9 million or 15.4% from RM64.5 million to RM74.4 million[42] - Revenue from enterprise software solutions decreased by approximately RM4.8 million or 67.5% from RM7.0 million for the year ended December 31, 2019, to RM2.3 million for the year ended December 31, 2020[45] Assets and Equity - Total assets increased by 51.2% to RM 106,321,000 from RM 70,234,000 in 2019[4] - Shareholders' equity rose by 68.6% to RM 80,917,000 compared to RM 47,992,000 in 2019[4] Ratios and Financial Health - The current ratio decreased by 17.3% to 6.2 times from 7.5 times in 2019[4] - The gearing ratio improved to 22.8% from 34.1% in the previous year, a decrease of 11.3%[4] - Return on equity was reported at (6.3)%, a decline of 33.5% from 27.2% in 2019[4] Operational Challenges and Opportunities - The COVID-19 pandemic has created challenges but also opportunities for the Company to increase market share by providing superior services[26] - The Company anticipates a rapid shift in financial organizations towards omni-channel interactions and automation to enhance business processes post-COVID-19[26] - The management team is committed to aligning the Company's digital strategy with the urgent technological changes prompted by the COVID-19 crisis[26] - The Group's established and loyal customer base, along with proprietary technology, are key competitive advantages that distinguish it from competitors[17] Technology and Infrastructure Development - The Company aims to increase investment in technology to enhance its technology platform and achieve business goals following its successful listing on the Main Board of the Stock Exchange on March 27, 2020[16] - As of December 31, 2020, the Group allocated approximately RM6.2 million (equivalent to approximately HK$12.0 million) for the design and project management of a new Tier 3 data center[35] - The Group aims to enhance its document hosting capability and expand its outsourced document management services through the new Tier 3 data center in Cyberjaya, Malaysia[35] - The Group plans to expand its data processing and technical capacity by building the new Tier 3 data center and strengthening its technical operation support team[38] Market Strategy and Growth Plans - The Group intends to increase its market presence locally and regionally, focusing on maintaining relationships with existing customers and capturing new customers in Malaysia and Singapore[38] - The Group aims to pursue strategic acquisitions and business opportunities to enhance its market share[38] - The company anticipates that the acceleration of digitalization and automation in financial organizations will create opportunities in online healthcare, education, business, and financial SaaS post-COVID-19[43] Administrative and Operational Costs - Administrative expenses rose by approximately RM9.3 million or 90.2% from RM10.3 million in 2019 to RM19.5 million in 2020, attributed to listing expenses and increased administrative staff costs[51] - The significant increase in postage costs charged by the Malaysian national postal service provider was a primary factor for the rise in cost of sales[46] Employee and Management Information - The Group had approximately 171 employees as of December 31, 2020, down from 181 employees in the previous year[66] - The Company has a diverse senior management team, including Mr. F Ling and Mr. W Ling, with extensive experience in their respective fields[90] - The Company emphasizes compliance and governance through its experienced company secretary and board members[89] Compliance and Governance - The Company confirms compliance with disclosure requirements regarding related party transactions as per Chapter 14A of the Listing Rules[134] - The Board of Directors is committed to providing transparent and accurate financial reporting to stakeholders[92] Environmental and Social Responsibility - The Group is committed to environmental sustainability by promoting digital solutions and adopting sustainable printing options, such as using recycled paper and energy-efficient equipment[190] - The Group has implemented internal policies to reduce its carbon footprint, including energy-efficient lighting and automatic power shutdown systems[191] Shareholder Information - The Company declared a dividend of RM13.00 million on March 12, 2020, which was paid on March 14, 2020, with no final dividend recommended for the year ended December 31, 2020[103] - As of December 31, 2020, the Company's reserves available for distribution to shareholders amounted to approximately RM39.2 million, with no distributable reserves as of December 31, 2019[112]

Company Overview - C-Link Squared Limited is a Malaysian-based outsourced document management services provider, offering services such as electronic document delivery and document imaging[8]. - The company has developed proprietary software applications since around 2005, focusing on digital transformation and providing outsourced services for various industries[9]. - The outsourced document management services industry has rapidly evolved with internet technology, prompting the company to continuously update its service offerings under the Streamline Suite applications[10]. Financial Performance - Total revenue for the six months ended June 30, 2020, was approximately RM37.7 million, compared to RM37.1 million for the same period in 2019, reflecting a growth of 1.6%[20]. - Revenue from outsourced document management services increased by approximately RM3.4 million or 10.3%, from RM33.0 million for the six months ended 30 June 2019 to RM36.4 million for the six months ended 30 June 2020[23]. - Revenue from enterprise software solutions decreased by approximately RM2.8 million or 67.5%, from RM4.1 million for the six months ended 30 June 2019 to RM1.3 million for the six months ended 30 June 2020[23]. - Gross profit decreased by approximately RM5.6 million or 37.1%, from RM15.1 million for the six months ended 30 June 2019 to RM9.5 million for the six months ended 30 June 2020[24]. - The loss before tax amounted to approximately RM0.9 million for the six months ended 30 June 2020, compared to a profit before tax of approximately RM9.5 million for the same period in 2019, primarily due to a decrease in gross profit and an increase in administrative expenses[27]. - The loss for the period amounted to approximately RM2.4 million for the six months ended 30 June 2020, compared to a profit of approximately RM6.5 million for the same period in 2019, mainly due to the decrease in gross profit and increased administrative expenses[27]. Operational Developments - The Group allocated approximately RM6.6 million from internal resources for the design and project management of a new Tier 3 data center, which has been put on hold due to COVID-19[14]. - The Group plans to expand its data processing and technical capacity by building a new Tier 3 data center to enhance outsourced document management services and enterprise software solutions[16]. - The COVID-19 pandemic has delayed negotiations for land acquisition for the new data center, which could only commence in the second half of 2020[20]. - The Group is exploring appropriate strategic acquisitions and business opportunities to expand its market presence regionally[16]. Financial Position - Total loans and borrowings of the Group amounted to approximately RM20.0 million as at 30 June 2020, representing an increase of approximately RM3.6 million or 22.0% compared to RM16.4 million as at 31 December 2019[30]. - The Group maintained a current ratio of around 8.1 times as at 30 June 2020, compared to approximately 7.5 times as at 31 December 2019, indicating a solid financial position[30]. - As of June 30, 2020, the Group's gearing ratio was approximately 23.4%, down from 34.1% as of December 31, 2019, due to an increase in total equity from the Share Offer[32]. - The total equity as of June 30, 2020, was RM 85,507,000, with retained earnings of RM 27,785,000[53]. Share Capital and Dividends - The Group issued a total of 200,000,000 shares at HK$0.63 each, raising net proceeds of approximately HK$73.7 million after deducting related expenses[41]. - The Group did not recommend the distribution of any interim dividend for the six months ended June 30, 2020, consistent with the previous year[27]. - The company declared a special tax-exempt dividend of RM13,000,000 on March 12, 2020, equivalent to RM65,000 per share[81]. Employee and Management Information - As of June 30, 2020, the Group had approximately 176 employees, an increase from 171 employees in the same period in 2019[34]. - Key management personnel remuneration for the six months ended June 30, 2020, totaled RM1,540,000, compared to RM1,156,000 for the same period in 2019[98]. Customer Base - The Group's revenue from external customers for the six months ended 30 June 2020 was RM 37,600,000, with a total revenue contribution from the top 5 customer groups amounting to RM 26,941,000, representing 71.5% of total revenue[60]. - Major customers included Bank Group A with RM 8,439,000 (22.4%), Bank Group B with RM 6,743,000 (17.9%), and Bank Group C with RM 4,309,000 (11.4%) for the six months ended 30 June 2020[60]. Compliance and Governance - The company has complied with all applicable Code Provisions of the Corporate Governance Code since the Listing Date up to June 30, 2020, except for the separation of roles between chairman and CEO[118][119]. - The Audit Committee reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2020, and found it compliant with relevant accounting policies[120].

Financial Performance - Revenue for the year ended December 31, 2019, was RM 71,526,000, representing a 6.6% increase from RM 67,095,000 in 2018[2] - Gross profit increased by 10.8% to RM 29,622,000 in 2019, up from RM 26,733,000 in 2018[2] - Profit before income tax expense rose by 14.4% to RM 19,015,000 compared to RM 16,615,000 in the previous year[2] - Profit for the year, excluding listing expenses, was RM 16,593,000, a 5.0% increase from RM 15,804,000 in 2018[2] - The Group recorded a revenue increase of 6.6% from approximately RM67.1 million in 2018 to approximately RM71.5 million in 2019[11] - Gross profit increased by approximately RM2.9 million or 10.8%, from approximately RM26.7 million in 2018 to approximately RM29.6 million in 2019, with a gross profit margin rise from 39.8% to 41.4%[11] - Profit for the year increased by approximately RM1.3 million or 10.8%, from approximately RM11.8 million in 2018 to approximately RM13.1 million in 2019, despite one-off listing expenses totaling approximately RM26.6 million[12] - Revenue increased by approximately RM4.4 million or 6.6% from RM67.1 million in 2018 to RM71.5 million in 2019[22] - Net profit rose by approximately 10.8% from RM11.8 million in 2018 to RM13.1 million in 2019[22] Assets and Liabilities - Total assets increased by 16.6% to RM 70,234,000 in 2019 from RM 60,244,000 in 2018[2] - Current ratio improved to 7.5 times in 2019 from 5.3 times in 2018, indicating better liquidity[2] - Gearing ratio decreased to 34.1% from 52.7%, reflecting a reduction in debt levels[2] - Net current assets increased from approximately RM34.6 million as at 31 December 2018 to approximately RM46.6 million as at 31 December 2019, an increase of approximately 34.8%[45] - Current liabilities increased from RM2,042 thousand as of 31 December 2018 to RM2,189 thousand as of 31 December 2019, with bank loans rising from RM1,975 thousand to RM2,118 thousand[64] - Non-current liabilities decreased from RM16,736 thousand as of 31 December 2018 to RM14,504 thousand as of 31 December 2019, with bank loans decreasing from RM16,431 thousand to RM14,270 thousand[64] Shareholder Information - Shareholders' equity grew by 37.4% to RM 47,992,000 compared to RM 34,939,000 in the previous year[2] - Basic and diluted earnings per share increased to 2.2 cents from 2.0 cents, marking a 10.8% rise[2] - The company issued a total of 200,000,000 shares at HK$0.63 each on March 26, 2020, and was listed on the Main Board of the Stock Exchange on March 27, 2020[105] - The company allotted and issued 599,999,800 ordinary shares credited as fully paid at par to two entities on March 27, 2020, as part of a capitalization of HK$5,999,998 from the share premium account[105] - As of December 31, 2019, the company had 800,000,000 shares issued[148] Strategic Plans and Market Position - The Group aims to upgrade its IT infrastructure and expand capacity to host the Streamline Electronic Document Warehouse (EDW) through SaaS in a Tier 3 data center in Cyberjaya, Malaysia[15] - The Group plans to leverage the COVID-19 pandemic as an opportunity to increase market share by providing essential services effectively during the Movement Control Order[18] - The adoption of SaaS for software application solutions is expected to increase demand for the Group's services from existing and new customers[14] - The company plans to expand its data processing and technical capacity by building a new data center[23] - The company aims to strengthen relationships with existing customers and capture new customers in Malaysia and Singapore[23] - The company intends to pursue strategic acquisitions and business opportunities to enhance market presence[23] Governance and Management - The Group has established a governance structure with independent directors overseeing key appointments and performance accountability[102] - The Board will continue to review and consider splitting the roles of chairman and chief executive officer at an appropriate time[74] - Mr. Lee Yan Kit has been appointed as an Independent Non-Executive Director since March 11, 2020, and is a member of the Audit, Remuneration, and Nomination Committees[90] - Ms. Eugenia Yang was appointed as an Independent Non-Executive Director on March 11, 2020, and has served on multiple committees including Audit and Remuneration[97] Compliance and Risk Management - The Group complied with all relevant Malaysian laws and regulations regarding intellectual property, with no claims or litigation related to intellectual property rights during 2019[185] - The Group adhered to all Malaysian employment laws, including the Employment Act 1955 and the Minimum Wages Order 2020, without incurring penalties or experiencing significant disputes with employees[187] - The Group's compliance with taxation laws included the Income Tax Act 1967 and the Goods and Services Tax 2014, with efforts to enhance staff understanding of applicable tax regulations[187] - The Group's operations are governed by significant laws and regulations, with no material breaches reported during the year ended December 31, 2019[184] - The Group's risk management policy aligns with Bank Negara Malaysia's expectations regarding technology and risk management frameworks[184] Employee Information - The total remuneration cost for employees amounted to RM8.5 million for the year ended December 31, 2019, a decrease from RM9.4 million in the previous year[79] - The Group had approximately 181 employees as of December 31, 2019[79] - The Group offers on-the-job training and financial subsidies for external training to selected high-potential employees[190] Environmental and Social Responsibility - The Group's operations do not have any material adverse impact on the environment, and it is committed to environmental sustainability by promoting digital solutions and using recycled paper[188] - The Group has implemented internal policies to reduce its carbon footprint, including energy-efficient lighting and automatic power shutdown systems[188]