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]