Revenue Performance - Revenue for the first quarter of 2022 reached SGD 4,547,604, representing a 20.8% increase compared to SGD 3,763,059 in the same period of 2021[11] - The total revenue for the three months ended August 31, 2021, was S$4,547,604, an increase from S$3,763,059 in 2020, representing a growth of approximately 20.7%[12] - Revenue from external customers for Simplicity and myBill was SGD 4,289,099 in 2021, up from SGD 3,487,040 in 2020, representing a growth of approximately 23%[57] - The revenue from the Simplicity and myBill segments was 2,843,300 SGD in 2021, compared to 2,121,053 SGD in 2020, marking an increase of approximately 34%[59] - Overall revenue increased by 20.8% from SGD 3,763,059 to SGD 4,547,604 during the reporting period[87] Profitability - The pre-tax profit increased by 13.4%, primarily due to the rise in revenue[11] - Gross profit for the same period was S$2,089,942, compared to S$1,393,894 in 2020, indicating a significant increase of about 49.9%[12] - The group’s overall gross profit increased by 696,048 SGD or 49.9% during the reporting period[89] - The company reported a pre-tax consolidated profit of SGD 548,883 in 2021, compared to SGD 484,105 in 2020, an increase of approximately 13%[58] - The company’s net profit before tax for the three months ended August 31, 2021, was 549,003 SGD, compared to 483,862 SGD in 2020, indicating a growth of about 13.5%[69] Segment Performance - The public sector's investment in smart technology contributed to a 23.4% revenue increase of SGD 738,325 in the Simplicity business segment[11] - Subscription numbers for myBill remained stable at around 100,000 per month, with revenue growth of 19.3%, amounting to SGD 63,734[11] - Starlight's revenue declined by 19.8%, or SGD 39,950, due to reduced demand linked to the COVID-19 pandemic and regulatory changes[11] - SpaceMonster's revenue increased by 30.2%, driven by a growing number of subscriptions[11] - Simplicity revenue increased by 23.4% from SGD 3,156,881 to SGD 3,895,206 for the three months ended August 31, 2021[76] Cost Management - The overall cost reductions in myBill, Starlight, and SpaceMonster partially offset the increased costs in Simplicity[11] - The company continues to face challenges in employee retention, leading to higher payroll and outsourcing costs[11] - Administrative expenses increased by 32.7% from 723,440 SGD to 959,822 SGD, primarily due to higher depreciation and amortization costs[90] - Sales and marketing expenses rose by 43.7% or 87,271 SGD, driven by an increase in sales inquiries[91] - Simplicity's cost of sales increased by 12.1% or 235,358 SGD, attributed to rising labor costs[88] Research and Development - Research and development expenses rose to S$251,805 from S$222,623, reflecting an increase of approximately 13.1%[12] - The company continues to invest in R&D to enhance existing products and meet evolving market demands[93] Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with relevant regulations[104] - The company aims to enhance shareholder value through robust corporate governance practices[107] - The audit committee was established on November 24, 2016, consisting of two independent non-executive directors and one non-executive director[113] - The main responsibilities of the audit committee include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing risk management and internal control procedures[113] Shareholder Information - Major shareholders include iGlobe Platinum Fund Limited with 20.43% and Huang Yan Yan with 11.31% of shares as of August 31, 2021[99] - A total of 4,075,390 stock options have been granted to four senior management personnel, which are exercisable at approximately SGD 0.01 or SGD 0.07 per share[101] - The company has not declared any dividends for the three months ending August 31, 2021, consistent with the previous year[109] - No shares were repurchased, sold, or redeemed by the company or its subsidiaries during the reporting period[106] Market Strategy - The company plans to strengthen sales and marketing efforts in Southeast Asia, China, Hong Kong, and the Middle East[83] - The acquisition of a data center leader expands the company into fast-growing markets, enhancing the order book and revenue quality[85] - Potential liberalization of water and gas billing services opens a major market for the myBill platform as the open electricity market stabilizes[85]

[Company Information](index=4&type=section&id=Company%20Information) This section outlines Anacle Systems Limited's key corporate details, including board members, auditors, and principal business locations, providing a foundational overview [Company Information Overview](index=4&type=section&id=Company%20Information%20Overview) This section provides key corporate information for Anacle Systems Limited, including board members, statutory representatives, auditors, securities registrar, principal places of business, and banks, offering an overview of the company's basic governance structure and operational foundation - Board members include Executive Directors Liu Yijun (CEO) and Wang Ruixing (COO), Non-Executive Directors Li Quanxiang (Chairman), Professor Huang Baojin, Dr. Zhong Yuxuan, and Independent Non-Executive Directors Mr. Alwi Bin Abdul Hafiz, Mr. Elango Subramanian, and Mr. Li Wenwei[8](index=8&type=chunk) - The company's auditor is BDO Limited, Hong Kong, and the Hong Kong share registrar is Boardroom Share Registrars (HK) Limited[8](index=8&type=chunk) - The company's headquarters, registered office, and principal place of business in Singapore are located at 3 Fusionopolis Way, with GEM stock code 8353[8](index=8&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) The Chairman's Statement reviews the company's significant financial performance and strategic milestones in FY2021, addresses ongoing challenges, outlines a positive future outlook, and expresses gratitude to stakeholders [Performance](index=6&type=section&id=Performance) The company's performance in FY2021 significantly surpassed FY2020, with improved sales and profitability across most business segments, achieving net profit despite the ongoing COVID-19 pandemic FY2021 vs FY2020 Financial Performance Comparison | Metric | 2021 (SGD) | 2020 (SGD) | | :--------- | :-------------- | :-------------- | | Sales | 22,200,000 | 18,900,000 | | Net Profit After Tax | 2,100,000 | (100,000) | [Milestones](index=6&type=section&id=Milestones) In FY2021, the company achieved several significant milestones, including the successful delivery of a large Simplicity® project for Singapore's HDB, securing a property management system project for Charoen Pokphand Group, and Starlight® Tesseract® smart meters being selected as a key contender for Singapore's next-generation smart metering infrastructure - Successfully delivered the first two versions of the integrated property management system for Singapore's Housing & Development Board, marking the largest Simplicity® project to date[13](index=13&type=chunk) - Secured a significant project from Charoen Pokphand Group to provide a property management system for Lotus's, Thailand's largest retail chain[13](index=13&type=chunk) - Starlight®'s flagship product, the Tesseract® smart meter, was selected as a key contender for Singapore's next-generation smart metering infrastructure, with a large-scale rollout planned for 2023[13](index=13&type=chunk) [Challenges](index=7&type=section&id=Challenges) The ongoing resurgence of COVID-19 variants globally creates significant uncertainty for the world economy, with the operating environment expected to remain challenging in the coming year - The continuous resurgence of COVID-19 variants leads to global economic uncertainty, with the operating environment expected to remain challenging in the coming year[15](index=15&type=chunk) [Outlook](index=7&type=section&id=Outlook) The company maintains a strong cash flow, accumulating **SGD 8.2 million** in cash reserves as of May 31, 2021, with a robust balance sheet, healthy order book, and strong sales pipeline, remaining optimistic about future growth while exercising prudent cash management and investment - As of May 31, 2021, the company accumulated **SGD 8.2 million** in cash reserves from business operations, maintaining strong cash flow[16](index=16&type=chunk) - The company possesses a strong balance sheet, healthy order book, and robust sales pipeline, and will continue to enhance technology and delivery quality, remaining optimistic about the future[16](index=16&type=chunk) - In the uncertain era of the pandemic, the company will prudently manage cash and investment activities[16](index=16&type=chunk) [Acknowledgements](index=7&type=section&id=Acknowledgements) The Chairman extended sincere gratitude to shareholders, business partners, customers, directors, management, and employees, acknowledging their trust, support, and contributions during challenging times - The Chairman thanked shareholders for their trust in Anacle during difficult and uncertain times[17](index=17&type=chunk) - Appreciation was extended to business partners and customers for their continued support[17](index=17&type=chunk) - Sincere gratitude was expressed to all directors, management, and employees for their unwavering commitment and valuable contributions[17](index=17&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) This section summarizes Anacle Systems Limited's key financial data for FY2021, including revenue, gross profit, net profit, EBITDA, EPS, and segment-wise revenue, alongside balance sheet indicators, reflecting significant profit growth and asset expansion [FY2021 Financial Highlights](index=8&type=section&id=FY2021%20Financial%20Highlights) This section provides a summary of Anacle Systems Limited's key financial data for FY2021, including revenue, gross profit, net profit, EBITDA, earnings per share, and revenue by business segment, along with key balance sheet indicators, demonstrating significant profit growth and asset expansion in FY2021 FY2021 Key Financial Indicators (SGD '000) | Metric | 2021 | 2020 | 2019 | | :------------------- | :----- | :----- | :----- | | Revenue | 22,165 | 18,933 | 13,333 | | Gross Profit | 9,023 | 7,594 | 2,708 | | Adjusted Net Profit/(Loss) Before Tax | 2,166 | 941 | (5,689) | | Adjusted EBITDA | 4,063 | 2,898 | (4,560) | | Basic Earnings/(Loss) Per Share (Singapore cents) | 0.54 | 0.07 | (1.57) | FY2021 Revenue by Business Segment (SGD '000) | Business Segment | 2021 | 2020 | 2019 | | :----------------------- | :----- | :----- | :----- | | Simplicity® Commercial Real Estate Solutions | 12,019 | 4,831 | 4,599 | | Simplicity® Corporate Real Estate Solutions | 4,479 | 6,199 | 4,905 | | Simplicity® Industrial Asset Management Solutions | 1,962 | 2,311 | 810 | | Starlight® Smart Utility Management Solutions | 1,699 | 3,455 | 2,318 | | myBill® Utility Revenue Assurance | 1,671 | 1,909 | 550 | | SpaceMonster® Venue Booking Portal | 335 | 228 | 151 | FY2021 Balance Sheet Key Indicators (SGD '000) | Metric | 2021 | 2020 | 2019 | | :------------- | :----- | :----- | :----- | | Total Assets | 23,224 | 15,651 | 15,401 | | Non-Current Assets | 5,779 | 2,112 | 4,167 | | Current Assets | 17,445 | 13,539 | 11,234 | | Total Liabilities | 9,146 | 3,823 | 3,477 | | Non-Current Liabilities | 3,506 | 79 | 75 | | Current Liabilities | 5,640 | 3,744 | 3,402 | [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's business and financial performance, liquidity, investment activities, risk factors, and human resources policies for the fiscal year [Business Review](index=10&type=section&id=Business%20Review) Anacle Systems achieved a significant turnaround in FY2021, successfully delivering a major Simplicity® project and securing multiple new projects amidst the pandemic-driven digitalization wave. Starlight®'s Tesseract® smart meter was selected for Singapore's next-generation smart metering infrastructure pilot, signaling long-term growth potential, with plans to strengthen sales and marketing and expand into new industries and markets - Anacle Systems has a strong reputation in smart city technologies, with a team of over **100 professionals** focused on product development for the real estate, asset, and utility management industries[23](index=23&type=chunk) - FY2021 marked a significant turning point for the Group, with the successful delivery of a major Simplicity® project for Singapore's Housing & Development Board and obtaining ISO 27001 and ISO 27018 information security management system certifications[23](index=23&type=chunk)[24](index=24&type=chunk) - Starlight®'s Tesseract® smart meter was selected by the Singapore government for piloting the next-generation smart metering infrastructure, with a large-scale rollout planned for 2023[24](index=24&type=chunk) - The company plans to strengthen sales and marketing, expand into Southeast Asia, China, Hong Kong, and the Middle East markets, and enter new fast-growing industries such as data centers[27](index=27&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) In FY2021, Anacle Systems achieved growth in both total revenue and gross profit, with Simplicity® total revenue increasing by **38.4%**, myBill® revenue slightly decreasing but with a significant gross margin improvement, and Starlight® revenue declining due to the pandemic but with improved gross margin. The company's net profit before tax turned from loss to profit, indicating a significant improvement in operating performance Simplicity® Revenue Overview (SGD) | Metric | 2021 | 2020 | Y-o-Y Growth Rate | | :----------------------- | :---------- | :---------- | :--------- | | Total Revenue | 18,460,719 | 13,341,374 | 38

[Report Cover and Disclaimer](index=1&type=section&id=Report%20Cover%20and%20Disclaimer) [Cover Information](index=1&type=section&id=Cover%20Information) This report is Anacle Systems Limited's Q3 2021 report, covering financial information for the nine months ended February 28, 2021 - The report's subject is Anacle Systems Limited, stock code: **8353**[1](index=1&type=chunk)[3](index=3&type=chunk) - The reporting period is Q3 2021, covering the nine months ended **February 28, 2021**[2](index=2&type=chunk)[3](index=3&type=chunk) [GEM Characteristics and Disclaimer](index=2&type=section&id=GEM%20Characteristics%20and%20Disclaimer) The Hong Kong Stock Exchange GEM market provides a listing platform for SMEs with higher investment risks, urging investors to exercise caution, and HKEX disclaims responsibility for the report's accuracy or completeness - The GEM market provides a listing platform for SMEs, carrying **higher investment risks**, and investors are advised to exercise caution[4](index=4&type=chunk) - The Hong Kong Stock Exchange is not responsible for the content of this report and does not guarantee its accuracy or completeness[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) [Report Chapter Overview](index=3&type=section&id=Report%20Chapter%20Overview) This report's table of contents lists page numbers for key sections including financial summary, condensed consolidated financial statements and notes, management discussion and analysis, and corporate governance code - The table of contents covers key sections such as financial summary, condensed consolidated financial statements notes, corporate governance code, and other information[8](index=8&type=chunk) [Definitions](index=4&type=section&id=Definitions) [Key Term Definitions](index=4&type=section&id=Key%20Term%20Definitions) This section defines key terms used in the report, including company entities, regulatory bodies, markets, currencies, and specific product names like TESSERACT, to ensure clear understanding of the content - Defines core entities such as 'the Company' (Anacle Systems Limited) and 'the Group' (the Company and its subsidiaries)[9](index=9&type=chunk) - Explains regulatory and market terms like 'GEM', 'Stock Exchange', and 'SFC'[9](index=9&type=chunk)[13](index=13&type=chunk) - Clarifies the 'Reporting Period' as the nine months ended **February 28, 2021**[9](index=9&type=chunk) - Introduces 'TESSERACT' as Starlight's IoT smart metering and controller platform[13](index=13&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) [Board of Directors and Corporate Governance](index=6&type=section&id=Board%20of%20Directors%20and%20Corporate%20Governance) This section lists key information including board members (executive, non-executive, independent non-executive), board committee compositions (audit, remuneration, nomination), legal representatives, auditors, share registrar, registered office, and principal bankers - Board members include executive directors such as **Mr. Lau Yee Chuen** (CEO) and **Mr. Ong Swee Huat** (COO), non-executive directors like **Mr. Lee Chuan Teck** (Chairman), and three independent non-executive directors[14](index=14&type=chunk) - The company has an Audit Committee, Remuneration Committee, and Nomination Committee, with their respective chairmen and members listed[14](index=14&type=chunk) - The company's registered office and principal place of business are in Singapore, with a principal place of business in Hong Kong[14](index=14&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) [Key Financial Indicators](index=7&type=section&id=Key%20Financial%20Indicators) For the nine months ended February 28, 2021, the company's revenue grew **11.3%** to **SGD 14,266,120**, gross profit increased **18.9%** to **SGD 5,556,929**, and it achieved a profit before income tax of **SGD 1,876,666**, reversing a loss from the prior period Key Financial Data for the Nine Months Ended February 28, 2021 (Unaudited) | Indicator | February 28, 2021 (SGD) | February 29, 2020 (SGD) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 14,266,120 | 12,814,688 | +11.3% | | Gross Profit | 5,556,929 | 4,675,067 | +18.9% | | Profit/(Loss) Before Income Tax | 1,876,666 | (408,740) | Turned to Profit | - Simplicity revenue grew by **37.2%** (**SGD 3,177,260**), primarily due to the Singapore government's investment in smart technology[18](index=18&type=chunk) - Starlight revenue decreased by **59.7%** (**SGD 1,614,311**), impacted by subdued demand due to the COVID-19 pandemic[18](index=18&type=chunk) - myBill revenue temporarily decreased by **13.7%** (**SGD 192,364**) due to a one-off contract renewal rebate, but monthly subscriptions remained stable at around **100,000**[18](index=18&type=chunk) - SpaceMonster revenue grew by **50.1%** (**SGD 80,847**) with continuous new subscriptions[18](index=18&type=chunk) - Profit before income tax turned from a loss to a profit, mainly due to revenue growth, the disposal of a China joint venture in 2019, reduced group operating expenses, and grants from the Singapore government's Job Support Scheme (JSS)[20](index=20&type=chunk) - The Board has not declared any dividend for the nine months ended **February 28, 2021**[21](index=21&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Consolidated Income Performance](index=8&type=section&id=Consolidated%20Income%20Performance) For the nine months ended February 28, 2021, the Group achieved a profit before income tax of **SGD 1,876,666**, a significant improvement from the prior year's loss of **SGD 408,740**, with total comprehensive income for the period at **SGD 1,875,166** Condensed Consolidated Statement of Comprehensive Income (For the Nine Months Ended February 28, 2021) | Indicator | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Revenue | 14,266,120 | 12,814,688 | | Cost of Sales | (8,709,191) | (8,139,621) | | Gross Profit | 5,556,929 | 4,675,067 | | Other Income | 780,626 | 25,594 | | Other Gains and Losses | (11,582) | 11,240 | | Selling and Distribution Costs | (971,875) | (1,243,876) | | Administrative Expenses | (2,693,892) | (3,192,618) | | Research and Development Expenses | (746,016) | (639,783) | | Finance Costs | (37,524) | (1,629) | | Impairment Loss on Investment in Associate | - | (42,735) | | Profit/(Loss) Before Income Tax | 1,876,666 | (408,740) | | Income Tax Expense | - | (19,118) | | Profit/(Loss) for the Period | 1,876,666 | (427,858) | | Total Comprehensive Loss for the Period | 1,875,166 | (441,334) | | Basic Earnings/(Loss) Per Share Attributable to Owners of the Company | 0.47 Singapore Cents | (0.03) Singapore Cents | | Diluted Earnings/(Loss) Per Share Attributable to Owners of the Company | 0.46 Singapore Cents | (0.03) Singapore Cents | - Other income significantly increased from **SGD 25,594** to **SGD 780,626**[22](index=22&type=chunk) - Selling and distribution costs and administrative expenses both decreased[22](index=22&type=chunk) - Basic earnings per share were **0.47 Singapore Cents**, compared to a loss of **0.03 Singapore Cents** in the prior period[22](index=22&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Changes in Shareholders' Equity](index=9&type=section&id=Changes%20in%20Shareholders'%20Equity) As of February 28, 2021, the company's total equity was **SGD 13,591,027**, an increase from **SGD 11,827,282** on May 31, 2020, primarily driven by the period's profit contribution Condensed Consolidated Statement of Changes in Equity (As of February 28, 2021) | Indicator | February 28, 2021 (SGD) | May 31, 2020 (SGD) | | :--- | :--- | :--- | | Share Capital | 20,645,177 | 20,756,598 | | Share Premium | (1,376,024) | (1,376,024) | | Share Compensation Reserve | 688,754 | 688,754 | | Exchange Fluctuation Reserve | 49,657 | 51,157 | | Accumulated Losses | (6,367,186) | (8,244,355) | | Non-controlling Interests | (49,351) | (48,848) | | Total | 13,591,027 | 11,827,282 | - Profit before income tax of **SGD 1,877,169** for the period significantly improved accumulated losses[26](index=26&type=chunk) - During the reporting period, the company cancelled **1,278,000** shares, resulting in a **SGD 111,421** reduction in share capital[26](index=26&type=chunk) [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [1. General](index=10&type=section&id=1.%20General) Anacle Systems Limited, incorporated in Singapore in 2006, primarily provides software development, enterprise application, and energy management solutions, along with support and maintenance services, with the financial statements approved for issue by the Board on April 7, 2021 - The company was incorporated in Singapore on **February 21, 2006**, and converted to a public company on **November 25, 2017**[27](index=27&type=chunk) - Principal activities include software development, enterprise application software solutions, energy management solutions, and related support and maintenance services[27](index=27&type=chunk) - The unaudited condensed consolidated financial statements for the nine months ended **February 28, 2021**, were approved for issue by the Board on **April 7, 2021**[27](index=27&type=chunk) [2. Basis of Preparation and Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This section details the basis of preparation and accounting policies for the Q3 2021 financial statements, adhering to IAS 34 and GEM Listing Rules, consistent with 2020 annual statements, and highlights specific treatments for business combinations, leases, revenue recognition, government grants, employee benefits, and share-based payments - The financial statements are prepared in accordance with IAS 34 'Interim Financial Reporting' and the GEM Listing Rules, on a historical cost basis, and presented in **Singapore Dollars**[31](index=31&type=chunk)[32](index=32&type=chunk) - Accounting policies and methods of computation are consistent with those used in the annual financial statements for the year ended **May 31, 2020**[32](index=32&type=chunk) [2(a) Business Combinations and Consolidation Basis](index=11&type=section&id=2(a)%20Business%20Combinations%20and%20Consolidation%20Basis) Consolidated financial statements include the Company and its subsidiaries, with intercompany transactions and unrealized profits eliminated, and changes in control over subsidiaries accounted for as equity transactions or disposal gains/losses if control is lost - Consolidated financial statements include the Company and its subsidiaries, with intercompany transactions, intra-group balances, and unrealized profits fully eliminated[33](index=33&type=chunk) - Changes in ownership interests that do not result in a loss of control are accounted for as equity transactions; if control is lost, the gain or loss on disposal is calculated based on the fair value difference[33](index=33&type=chunk)[34](index=34&type=chunk) [2(b) Subsidiaries](index=12&type=section&id=2(b)%20Subsidiaries) Subsidiaries are investees over which the Company exercises control, assessed based on power, exposure to variable returns, and ability to affect returns, with investments in subsidiaries accounted for at cost less impairment losses in the Company's statement of financial position - Subsidiaries are defined as investees over which the Company can exercise control, with control assessed based on power, exposure to variable returns, and the ability to affect those returns[36](index=36&type=chunk) - Investments in subsidiaries are stated at cost less impairment losses in the Company's statement of financial position[36](index=36&type=chunk) [2(c) Leases](index=12&type=section&id=2(c)%20Leases) Effective June 1, 2019, the Group accounts for leases under IFRS 16, recognizing right-of-use assets and lease liabilities as a lessee, measuring lease liabilities at amortized cost, and classifying leases as finance or operating leases as a lessor - Effective **June 1, 2019**, the Group assesses whether a contract is or contains a lease in accordance with **IFRS 16**[37](index=37&type=chunk) [2(c)(i) The Group as Lessee](index=12&type=section&id=2(c)(i)%20The%20Group%20as%20Lessee) The Group recognizes right-of-use assets and lease liabilities at lease commencement, initially measuring right-of-use assets at cost and depreciating them, while lease liabilities are measured at the present value of unpaid lease payments and subsequently at amortized cost using the effective interest method, with short-term and low-value asset leases expensed on a straight-line basis - The Group recognizes right-of-use assets and lease liabilities at the lease commencement date, with right-of-use assets initially measured at cost and depreciated[38](index=38&type=chunk) - Lease liabilities are measured at the present value of unpaid lease payments and subsequently measured at amortized cost using the effective interest method[38](index=38&type=chunk)[43](index=43&type=chunk) - Short-term leases and leases of low-value assets (including IT equipment) do not recognize right-of-use assets and lease liabilities, with related payments recognized as expenses on a straight-line basis[44](index=44&type=chunk) [2(c)(ii) The Group as Lessor](index=13&type=section&id=2(c)(ii)%20The%20Group%20as%20Lessor) As a lessor, the Group classifies each lease as a finance or operating lease at commencement, assessing whether all risks and rewards incidental to ownership of the underlying asset have been transferred, with operating lease income recognized on a straight-line basis over the lease term - As a lessor, the Group determines at lease commencement whether each lease is a finance or operating lease, assessing if all risks and rewards incidental to ownership of the underlying asset have been transferred[45](index=45&type=chunk) - Lease payments received from operating leases are recognized as income on a straight-line basis over the lease term, as part of 'other income'[49](index=49&type=chunk) [2(d) Revenue Recognition](index=14&type=section&id=2(d)%20Revenue%20Recognition) Effective June 1, 2018, the Group recognizes revenue under IFRS 15 when control of goods or services transfers to the customer, with specific methods varying by business type, including project, maintenance, hardware sales, subscription, and rental income - Revenue is recognized when control of goods or services transfers to the customer, with the amount reflecting the consideration the Group expects to be entitled to[49](index=49&type=chunk) - Project revenue is recognized based on the stage of completion, as assets are created or enhanced over time[50](index=50&type=chunk) - Maintenance services and subscription revenue are recognized as the customer simultaneously receives and consumes the benefits[55](index=55&type=chunk)[57](index=57&type=chunk) - Hardware sales revenue is recognized when the customer obtains control of and accepts the product[56](index=56&type=chunk) - Rental income is recognized on a straight-line basis over the relevant lease term[58](index=58&type=chunk) [2(e) Government Grants](index=15&type=section&id=2(e)%20Government%20Grants) Government grants are recognized when there is reasonable assurance of receipt and compliance with conditions, with expense-related grants recognized in profit or loss in the same period as the expenses, and asset-related grants recognized as deferred capital grants over the asset's useful life - Government grants are recognized when there is reasonable assurance that they will be received and the Group will comply with the attached conditions[60](index=60&type=chunk) - Grants compensating for expenses are recognized in profit or loss in the same period in which the expenses are incurred[60](index=60&type=chunk) - Grants compensating for asset costs are recognized as deferred capital grants and recognized over the useful life of the asset[60](index=60&type=chunk) [2(f) Employee Benefits](index=16&type=section&id=2(f)%20Employee%20Benefits) Employee benefits comprise short-term employee benefits and defined contribution retirement plans, with short-term benefits recognized in the year employees render service, and defined contributions (e.g., Singapore Central Provident Fund) expensed when employees render service - Short-term employee benefits are recognized in the year in which the employees render the related service[63](index=63&type=chunk) - Contributions to defined contribution retirement plans, such as the Singapore Central Provident Fund, are expensed in profit or loss when employees render service[64](index=64&type=chunk) [2(g) Share-based Payments](index=16&type=section&id=2(g)%20Share-based%20Payments) The fair value of share options granted to employees is recognized in profit or loss over the vesting period, with a corresponding increase in the employee share option reserve; non-market vesting conditions are considered by adjusting the number of equity instruments expected to vest, while market vesting conditions are incorporated into the fair value of the options - The fair value of share options granted to employees is recognized in profit or loss over the vesting period, with a corresponding increase in the employee share option reserve[64](index=64&type=chunk) - Non-market vesting conditions are considered by adjusting the number of equity instruments expected to vest, while market vesting conditions are incorporated into the fair value of the share options[64](index=64&type=chunk) - For cash-settled share-based payments, a liability is recognized at the fair value of the goods or services received[65](index=65&type=chunk) [3. Segment Reporting](index=17&type=section&id=3.%20Segment%20Reporting) The Group identifies operating segments, including Simplicity and MyBill.sg, Starlight, and SpaceMonster, based on reports reviewed by the chief operating decision maker, providing detailed data on revenue, gross profit, depreciation, amortization, and profit/loss for each segment, along with analysis of revenue recognition timing, geographical distribution, and key customer contributions - The Group has three reportable segments: Simplicity and myBill (enterprise application software solutions), Starlight (energy management solutions), and SpaceMonster (online venue booking platform)[69](index=69&type=chunk) [3(a) Segment Reporting](index=17&type=section&id=3(a)%20Segment%20Reporting) For the nine months ended February 28, 2021, the Simplicity and myBill segments contributed the most to revenue and gross profit, while Starlight's revenue and profit significantly declined, and SpaceMonster's revenue and profit continued to grow Reportable Segment Financial Performance (For the Nine Months Ended February 28, 2021) | Indicator | Simplicity & myBill (SGD) | Starlight (SGD) | SpaceMonster (SGD) | Total (SGD) | | :--- | :--- | :--- | :--- | :--- | | External Customer Revenue | 12,936,080 | 1,087,897 | 242,143 | 14,266,120 | | Gross Profit | 4,793,330 | 526,693 | 236,906 | 5,556,929 | | Reportable Segment Profit/(Loss) | 4,075,815 | (330,150) | 236,906 | 3,982,571 | - Simplicity and myBill segment revenue increased by **30%** year-on-year, with gross profit growing by **20%**[70](index=70&type=chunk) - Starlight segment revenue decreased by **59.7%** year-on-year, with profit turning into a loss[70](index=70&type=chunk) - SpaceMonster segment revenue increased by **50.1%** year-on-year, with profit growing by **63.5%**[70](index=70&type=chunk) [3(b) Reconciliation of Reportable Segment Revenue and (Loss)/Profit](index=18&type=section&id=3(b)%20Reconciliation%20of%20Reportable%20Segment%20Revenue%20and%20(Loss)%2FProfit) This section reconciles reportable segment profit with consolidated profit before income tax, detailing the impact of unallocated corporate expenses such as staff costs, lease expenses, legal and professional fees, and depreciation on overall profit Reconciliation of Reportable Segment Profit with Consolidated Profit Before Income Tax (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Reportable Segment Profit/(Loss) | 3,982,571 | 2,916,926 | | Other Income | 717,157 | 16,433 | | Other Gains and Losses | (10,570) | 11,240 | | Finance Costs | (37,524) | (1,629) | | Unallocated Corporate Expenses (Total) | (2,769,918) | (3,351,722) | | Profit/(Loss) Before Consolidated Income Tax | 1,876,666 | (408,742) | - Staff costs, legal and professional fees, depreciation, and depreciation of right-of-use assets are the main components of unallocated corporate expenses[73](index=73&type=chunk) - Total unallocated corporate expenses decreased from **SGD 3,351,722** in the prior period to **SGD 2,769,918**[73](index=73&type=chunk) [3(c) Analysis of Revenue](index=18&type=section&id=3(c)%20Analysis%20of%20Revenue) This section provides a detailed analysis of revenue by recognition timing (over time or at a point in time) and key geographical markets (Singapore, Malaysia, China, others), highlighting project revenue and maintenance services as primary sources, with Singapore as the core market Revenue Recognition Timing and Geographical Distribution (For the Nine Months Ended February 28, 2021) | Revenue Type/Region | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | **Revenue Recognition Timing** | | | | Project Revenue | 9,575,831 | 8,638,150 | | Maintenance Services | 2,833,339 | 2,570,334 | | Subscriptions | 1,557,360 | 1,443,914 | | Equipment Sales | 255,535 | 118,565 | | Equipment Rental Income | 44,055 | 43,725 | | **Geographical Information** | | | | Singapore | 13,433,590 | 12,321,031 | | Malaysia | 140,752 | 114,276 | | China | 110,082 | 195,021 | | Others | 581,696 | 184,360 | - Project revenue and maintenance services are the Group's primary revenue sources, accounting for **67.1%** and **19.9%** of total revenue, respectively[73](index=73&type=chunk) - Singapore is the Group's most significant market, contributing the majority of revenue (**SGD 13,433,590**, or **94.2%**)[73](index=73&type=chunk) - Revenue from the China market decreased year-on-year, while revenue from Malaysia and other regions increased[73](index=73&type=chunk) [3(d) Information on Major Customers](index=19&type=section&id=3(d)%20Information%20on%20Major%20Customers) This section discloses the revenue contribution from the Group's major customers, with Customer A and Customer B each contributing over **10%** of the Group's total revenue during the reporting period Major Customer Revenue Contribution (For the Nine Months Ended February 28, 2021) | Customer | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Customer A | 5,253,262 | 1,826,694 | | Customer B | 2,082,137 | 1,354,590 | | Customer C | - | 1,328,658 | - Customer A's revenue contribution significantly increased from **SGD 1,826,694** to **SGD 5,253,262**[80](index=80&type=chunk) - Customer C is no longer a major customer in the 2021 reporting period[80](index=80&type=chunk) [4. Other Income](index=19&type=section&id=4.%20Other%20Income) For the nine months ended February 28, 2021, the Group's other income significantly increased to **SGD 780,626**, primarily driven by government grants and new other income items Other Income Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Government Grants | 713,424 | 23,643 | | Interest Income | 2,286 | 1,951 | | Others | 64,916 | - | | **Total** | **780,626** | **25,594** | - Government grants significantly increased from **SGD 23,643** to **SGD 713,424**, serving as the primary driver for the growth in other income[80](index=80&type=chunk) [5. Other Gains and Losses](index=19&type=section&id=5.%20Other%20Gains%20and%20Losses) For the nine months ended February 28, 2021, the Group recorded a net other gains and losses of **SGD 11,582** loss, primarily impacted by net exchange losses and inventory impairment Other Gains and Losses Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Net Exchange Gains/(Losses) | (10,570) | (684) | | Impairment of Inventories | (1,139) | - | | Provision for Expected Credit Losses | 127 | 11,924 | | **Total** | **(11,582)** | **11,240** | - Net exchange gains turned from a gain in the prior period to a loss of **SGD 10,570**[80](index=80&type=chunk) - A new impairment loss on inventories of **SGD 1,139** was recognized in the current period[80](index=80&type=chunk) [6. Finance Costs](index=20&type=section&id=6.%20Finance%20Costs) For the nine months ended February 28, 2021, the Group's finance costs increased to **SGD 37,524**, primarily comprising interest on lease liabilities, compared to bank borrowing interest in the prior period Finance Costs Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Interest on Lease Liabilities | 37,524 | - | | Interest on Bank Borrowings | - | 1,629 | | **Total** | **37,524** | **1,629** | - Interest on lease liabilities is the main component of finance costs in the current period, with no such item in the prior period[82](index=82&type=chunk) [7. (Loss)/Profit Before Income Tax](index=20&type=section&id=7.%20(Loss)%2FProfit%20Before%20Income%20Tax) This section lists expenses impacting profit/loss before income tax, including staff costs, depreciation, amortization, finance costs, and restoration costs; staff costs slightly decreased, while depreciation of right-of-use assets and restoration costs are new expenses for the period Factors Affecting Profit/(Loss) Before Income Tax (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Staff Costs (including directors' emoluments) | 7,254,865 | 7,404,178 | | Depreciation of Property, Plant and Equipment | 102,522 | 107,234 | | Depreciation of Right-of-Use Assets | 480,187 | - | | Amortization of Intangible Assets | 668,811 | 759,170 | | Finance Costs | 37,524 | 1,629 | | Restoration Costs | 47,065 | - | | Auditors' Remuneration | 5,294 | 18,410 | - Total staff costs (including salaries, allowances, and defined contribution retirement plans) slightly decreased[83](index=83&type=chunk) - Depreciation of right-of-use assets (**SGD 480,187**) and restoration costs (**SGD 47,065**) are new expense items for the current period[83](index=83&type=chunk) - Amortization of intangible assets decreased, and auditors' remuneration also significantly declined[83](index=83&type=chunk) [8. Income Tax Expense](index=21&type=section&id=8.%20Income%20Tax%20Expense) For the nine months ended February 28, 2021, the Group's income tax expense was zero, compared to **SGD 19,118** in the prior period, with corporate tax rates in Singapore, Malaysia, and India at **17%**, **24%**, and **29%**, respectively Income Tax Expense (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | | :--- | :--- | :--- | | Current Portion | - | (19,118) | | Deferred Tax | - | - | | **Total** | **-** | **(19,118)** | - Income tax expense for the current period was **zero**, compared to **SGD 19,118** in the prior period[87](index=87&type=chunk) - The Group's corporate tax rates in Singapore, Malaysia, and India are **17%**, **24%**, and **29%**, respectively[87](index=87&type=chunk) [9. Interim Dividend](index=21&type=section&id=9.%20Interim%20Dividend) The Board has not declared any dividend for the nine months ended February 28, 2021, consistent with the prior period - The Board has not declared any dividend for the nine months ended **February 28, 2021** (February 29, 2020: nil)[88](index=88&type=chunk) [10. (Loss)/Earnings Per Share](index=21&type=section&id=10.%20(Loss)%2FEarnings%20Per%20Share) For the nine months ended February 28, 2021, the company's basic earnings per share were **0.47 Singapore Cents** and diluted earnings per share were **0.46 Singapore Cents**, a significant improvement from the prior year's loss of **0.03 Singapore Cents** per share Earnings/(Loss) Per Share (For the Nine Months Ended February 28, 2021) | Indicator | February 28, 2021 (Singapore Cents) | February 29, 2020 (Singapore Cents) | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 0.47 | (0.03) | | Diluted Earnings/(Loss) Per Share | 0.46 | (0.03) | - Basic earnings per share are calculated based on profit attributable to owners of the company of **SGD 1,877,169** and **397,880,496** issued ordinary shares[89](index=89&type=chunk) - Diluted earnings per share are calculated based on profit attributable to owners of the company of **SGD 1,877,169** and a weighted average of **405,762,422** issued ordinary shares[89](index=89&type=chunk) [11. Share Capital](index=21&type=section&id=11.%20Share%20Capital) As of February 28, 2021, the company had **397,880,496** issued ordinary shares and share capital of **SGD 20,645,177**, having repurchased and cancelled **1,278,000** shares during the reporting period Changes in Share Capital (As of February 28, 2021) | Item | Number of Issued Ordinary Shares | SGD | | :--- | :--- | :--- | | May 31, 2020 (Audited) | 399,158,496 | 20,756,598 | | Cancellation of Shares | (1,278,000) | (111,421) | | February 28, 2021 (Unaudited) | 397,880,496 | 20,645,177 | - During the reporting period, the company repurchased and cancelled **1,278,000** shares for a consideration of **SGD 111,421**[90](index=90&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=22&type=section&id=Business%20Review) Established in 2006, the Group specializes in enterprise application software and energy management solutions, with this section detailing the performance of its four core businesses—Simplicity, Starlight, myBill, and SpaceMonster—during the reporting period, including revenue growth, customer base changes, and market challenges - The Group primarily generates revenue through Simplicity (enterprise application software), Starlight (energy management solutions), SpaceMonster (online venue booking platform), and myBill (utility revenue assurance platform)[91](index=91&type=chunk) - Products cover Singapore, Malaysia, China, and other Asian countries, serving various sectors including commercial real estate, education, healthcare, and government[91](index=91&type=chunk) [Simplicity](index=23&type=section&id=Simplicity) Simplicity's total revenue grew **37.2%** year-on-year to **SGD 11,721,810**, driven by increased smart technology projects in Singapore's public sector and an expanding customer base, with both project and maintenance service revenues achieving significant growth Simplicity Revenue Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 11,721,810 | 8,544,550 | +37.2% | | Project Revenue | 8,716,722 | 6,124,670 | +42.3% | | Maintenance Services | 2,819,808 | 2,411,260 | +16.9% | | Equipment Sales | 185,280 | 8,620 | +2049.4% | - Increased smart technology projects in Singapore's public sector are the primary driver for Simplicity's revenue growth[93](index=93&type=chunk) - Project revenue significantly grew by **42.3%**, and maintenance service revenue increased by **16.9%**[92](index=92&type=chunk)[93](index=93&type=chunk) [Starlight](index=24&type=section&id=Starlight) Starlight's total revenue significantly decreased by **59.7%** year-on-year to **SGD 1,087,897**, primarily due to subdued demand caused by the COVID-19 pandemic; despite the revenue decline, recurring ad-hoc works from existing customers generated higher quality income Starlight Revenue Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 1,087,897 | 2,702,208 | -59.7% | | Project Revenue | 746,269 | 2,394,680 | -68.8% | | Maintenance Services | 227,318 | 153,858 | +47.7% | | Equipment Rental Income | 44,055 | 43,725 | +0.8% | | Equipment Sales | 70,255 | 109,945 | -36.1% | - Subdued demand due to the COVID-19 pandemic led to a significant **68.8%** decrease in Starlight's project revenue[96](index=96&type=chunk) - Despite the decline in total revenue, maintenance services and rental income increased, indicating a stable existing customer base and higher quality revenue generation[96](index=96&type=chunk) [myBill](index=25&type=section&id=myBill) myBill's total revenue decreased **14.5%** year-on-year to **SGD 1,214,270**, primarily due to a one-off contract renewal rebate; despite this temporary decline, myBill platform subscriptions have steadily grown since its June 2018 launch, stabilizing at around **100,000** monthly subscriptions myBill Revenue Details (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 1,214,270 | 1,406,634 | -13.7% | | Subscriptions | 1,101,430 | 1,287,834 | -14.5% | | Project Revenue | 112,840 | 118,800 | -5.0% | - myBill revenue decline was primarily due to a one-off contract renewal rebate, resulting in a temporary **14.5%** decrease in subscription revenue[100](index=100&type=chunk) - myBill platform subscriptions have shown continuous stable growth, with monthly subscriptions stabilizing at around **100,000**[100](index=100&type=chunk)[101](index=101&type=chunk) [SpaceMonster](index=26&type=section&id=SpaceMonster) SpaceMonster revenue grew **50.1%** year-on-year to **SGD 242,143**, reflecting sustained growth in demand for venue sharing services, and the segment maintained a healthy gross profit margin of **97.8%** SpaceMonster Revenue (For the Nine Months Ended February 28, 2021) | Item | February 28, 2021 (SGD) | February 29, 2020 (SGD) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 242,143 | 161,296 | +50.1% | - Sustained growth in demand for venue sharing services drove SpaceMonster's revenue increase of **50.1%**[103](index=103&type=chunk) - SpaceMonster maintained a healthy gross profit margin of **97.8%**[103](index=103&type=chunk) [Future Prospects and Outlook](index=27&type=section&id=Future%20Prospects%20and%20Outlook) The Group anticipates continued strong performance from Simplicity, myBill, and SpaceMonster, benefiting from digitalization trends in Singapore and Southeast Asia's enterprise application software market, while Starlight's business faces ongoing challenges from subdued demand due to the COVID-19 pandemic in the short term - Singapore and Southeast Asia's enterprise application software market remains strong due to digitalization trends, with Simplicity, myBill, and SpaceMonster expected to continue performing well[106](index=106&type=chunk) - Starlight's business continues to face subdued demand due to the COVID-19 pandemic, limiting short-term revenue[106](index=106&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) This section provides a detailed financial analysis of the Group's revenue, gross profit, cost of sales, selling and distribution costs, administrative expenses, R&D expenses, and profit before income tax for the reporting period, explaining the reasons for changes in each metric [Revenue](index=28&type=section&id=Revenue) The Group's total revenue grew **11.3%** year-on-year to **SGD 14,266,120**, primarily driven by Simplicity's **37.2%** revenue growth, partially offset by declines in Starlight and myBill revenue - Group revenue increased by **11.3%** (**SGD 1,451,432**), reaching **SGD 14,266,120**[110](index=110&type=chunk) - Simplicity revenue grew by **37.2%** (**SGD 3,177,260**), primarily benefiting from Singapore's public sector digitalization projects[110](index=110&type=chunk) - Starlight revenue decreased by **59.7%** (**SGD 1,614,311**), and myBill revenue decreased by **13.7%** (**SGD 192,364**), partially offsetting Simplicity's growth[110](index=110&type=chunk) [Gross Profit and Gross Profit Margin](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) The Group's total gross profit increased **18.9%** year-on-year, primarily due to revenue growth; myBill's gross profit margin rose from **26.8%** to **46.2%**, SpaceMonster's improved to **97.8%**, while Simplicity's slightly decreased - The Group's total gross profit increased by **18.9%** (**SGD 881,862**)[111](index=111&type=chunk) - myBill's gross profit margin increased from **26.8%** to **46.2%**, benefiting from new value-added services and reduced third-party costs[111](index=111&type=chunk) - SpaceMonster's gross profit margin improved from **89.8%** to **97.8%**[111](index=111&type=chunk) - Simplicity's gross profit margin decreased from **42.2%** to **36.1%**[111](index=111&type=chunk) [Cost of Sales](index=28&type=section&id=Cost%20of%20Sales) The Group's cost of sales increased **7.0%**, with Simplicity's cost of sales growing **51.6%** to support revenue growth, partially offset by declines in myBill, Starlight, and SpaceMonster, where myBill saw significant reductions in third-party costs due to new service development - The Group's cost of sales increased by **7.0%**[112](index=112&type=chunk) - Simplicity's cost of sales increased by **51.6%** (**SGD 2,550,187**), primarily related to increased manpower costs and outsourced work[112](index=112&type=chunk) - myBill's cost of sales decreased by **36.5%** (**SGD 375,767**) due to the development of new value-added services eliminating significant third-party costs[112](index=112&type=chunk) - Starlight's cost of sales decreased by **74.0%**, consistent with the decline in revenue[112](index=112&type=chunk) - SpaceMonster's cost of sales decreased by **68.1%** (**SGD 11,155**) as intangible assets were fully amortized[112](index=112&type=chunk) [Selling and Distribution Costs](index=29&type=section&id=Selling%20and%20Distribution%20Costs) Selling, marketing, and distribution expenses decreased, primarily due to the China joint venture being deemed disposed of, and significant reductions in trade fair and overseas business travel expenses caused by COVID-19 restrictions - Selling and distribution costs decreased, mainly due to the China joint venture being deemed disposed of, and reduced overseas travel and social gathering expenses due to COVID-19 restrictions[119](index=119&type=chunk) [Administrative Expenses](index=29&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **SGD 498,726**, primarily because the China joint venture was deemed disposed of, and its administrative expenses are no longer consolidated into the Group's statements, while administrative expenses for Singapore's core business remained stable - Administrative expenses decreased by **SGD 498,726**, mainly because the China joint venture was deemed disposed of, and its administrative expenses are no longer consolidated[120](index=120&type=chunk) - Administrative expenses for the Group's core business in Singapore remained stable[120](index=120&type=chunk) [Research and Development Expenses](index=29&type=section&id=Research%20and%20Development%20Expenses) The Group continuously invests in improving existing products and developing new features to enhance customer experience and maintain market competitiveness, notably developing additional value-added services for myBill aimed at eliminating third-party costs and improving future gross profit margins - The Group continuously improves existing products and develops new features for Simplicity, Starlight, and myBill to enhance customer experience[120](index=120&type=chunk) - Additional value-added services were developed for myBill, aiming to eliminate third-party costs and improve future gross profit margins[120](index=120&type=chunk) - Simplicity's intangible assets are expected to reach the end of their remaining useful lives by the end of FY2021[120](index=120&type=chunk) [Profit Before Income Tax](index=29&type=section&id=Profit%20Before%20Income%20Tax) The Group achieved a net profit before tax of **SGD 1,876,666**, reversing a net loss before tax of **SGD 408,740** in the prior period, primarily due to the cessation of consolidation of the China joint venture, whose losses no longer impact Singapore's core business - The Group achieved a net profit before tax of **SGD 1,876,666**, compared to a net loss before tax of **SGD 408,740** in the prior period[120](index=120&type=chunk) - The turnaround to profit is mainly due to the cessation of consolidation of the China joint venture in **September 2020**, whose losses no longer affect the Group's core business in Singapore[120](index=120&type=chunk) [Corporate Governance Code and Other Information](index=30&type=section&id=Corporate%20Governance%20Code%20and%20Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of February 28, 2021, executive directors Mr. Lau Yee Chuen and Mr. Ong Swee Huat held interests in the company's shares, with **11.45%** and **5.72%** stakes respectively, and no other directors or chief executives held any other interests or short positions Directors' and Chief Executive's Long Positions in Shares (As of February 28, 2021) | Director's Name | Role/Nature | Number of Shares with Interests | Total Interests | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Lau Yee Chuen | Beneficial Interest | 45,572,000 | 45,572,000 | 11.45% | | Mr. Ong Swee Huat | Beneficial Interest | 22,750,000 | 22,750,000 | 5.72% | - The percentage of share capital is calculated based on the total number of **397,880,496** issued shares of the company as of **February 28, 2021**[125](index=125&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=31&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of February 28, 2021, various entities/persons, other than directors, held interests or short positions in the company's shares, with iGlobe Platinum Fund Limited being the largest shareholder at **20.69%** Substantial Shareholders' and Other Persons' Interests in Shares (As of February 28, 2021) | Shareholder Name | Role/Nature | Number of Shares | Number of Relevant Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Wong Yin Yin | Spouse's Interest | 45,572,000 | - | 11.45% | | Lim Lay Peng | Spouse's Interest | 22,750,000 | - | 5.72% | | BAF Spectrum Pte. Ltd. | Beneficial Interest | 39,565,162 | - | 9.94% | | iGlobe Platinum Fund Limited | Beneficial Interest | 82,326,335 | - | 20.69% | | Majuven Fund 1 Ltd. | Beneficial Interest | 36,528,219 | - | 9.18% | | OWW Investments III Limited | Beneficial Interest | 20,873,307 | - | 5.25% | | M1 TeliNet Pte. Ltd. | Beneficial Interest | 20,259,000 | - | 5.09% | | M1 Limited | Interest in Controlled Corporation | 20,259,000 | - | 5.09% | - Ms. Wong Yin Yin and Ms. Lim Lay Peng are deemed to have interests in the shares of **Mr. Lau Yee Chuen** and **Mr. Ong Swee Huat**, respectively[130](index=130&type=chunk) - iGlobe Platinum Fund Limited is the largest single shareholder, with a **20.69%** stake[130](index=130&type=chunk) [Share Option Schemes](index=33&type=section&id=Share%20Option%20Schemes) The company has Pre-IPO and Post-IPO Share Option Schemes; as of February 28, 2021, **9,095,632** options remain unexercised under the Pre-IPO scheme, while no unexercised options exist under the Post-IPO scheme [Pre-IPO Share Option Scheme](index=33&type=section&id=Pre-IPO%20Share%20Option%20Scheme) The company adopted two Pre-IPO Share Option Schemes to incentivize eligible persons; as of February 28, 2021, **9,095,632** options granted to six grantees (including senior management and employees) remain unexercised - The Pre-IPO Share Option Scheme aims to incentivize eligible persons responsible for the company's management, growth, and financial success[135](index=135&type=chunk) - The exercise price for share options is approximately **SGD 0.01** or **SGD 0.07** per share, exercisable in four equal tranches annually from the grant date[135](index=135&type=chunk) - As of **February 28, 2021**, **9,095,632** options have been granted to six grantees but remain unexercised[135](index=135&type=chunk) [Post-IPO Share Option Scheme](index=33&type=section&id=Post-IPO%20Share%20Option%20Scheme) The company adopted a Post-IPO Share Option Scheme, but no options have been granted, exercised, or cancelled since its adoption, and there are no unexercised options as of February 28, 2021 - The company has adopted a Post-IPO Share Option Scheme, but no options have been granted, exercised, or cancelled since its adoption[136](index=136&type=chunk) - As of **February 28, 2021**, there are no unexercised share options issued under the Post-IPO Share Option Scheme[136](index=136&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=33&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions no less exacting than required by the GEM Listing Rules, and all directors confirm compliance since the listing date - The company has adopted a code of conduct for directors' securities transactions no less exacting than required by Rules **5.48** to **5.67** of the GEM Listing Rules[137](index=137&type=chunk) - All directors confirm compliance with the code of conduct from the listing date up to the date of this annual report[137](index=137&type=chunk) [Directors' and Controlling Shareholders' Interests in Contracts](index=34&type=section&id=Directors'%20and%20Controlling%20Shareholders'%20Interests%20in%20Contracts) During the review period, no directors, controlling shareholders, or their respective close associates held interests in any contracts directly or indirectly competing or potentially competing with the Group's business - During the review period, neither directors nor controlling shareholders and their close associates held interests in contracts competing with the Group's business[138](index=138&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=34&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities[138](index=138&type=chunk) [Corporate Governance Practices](index=34&type=section&id=Corporate%20Governance%20Practices) The company is committed to fulfilling its responsibilities to shareholders and safeguarding and enhancing shareholder value through robust corporate governance, having complied with the code provisions of Appendix 15 'Corporate Governance Code' of the GEM Listing Rules - The company is committed to safeguarding and enhancing shareholder value through robust corporate governance[138](index=138&type=chunk) - The company has complied with the code provisions of Appendix 15 'Corporate Governance Code' of the GEM Listing Rules[138](index=138&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board has not declared any dividend for the nine months ended February 28, 2021, consistent with the prior period - The Board has not declared any dividend for the nine months ended **February 28, 2021** (February 29, 2020: nil)[138](index=138&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Board established the Audit Committee on November 24, 2016, comprising three independent non-executive directors, with key responsibilities including recommending auditor appointment/removal, reviewing financial statements, advising on financial reporting, and overseeing risk management and internal control procedures; the current period's financial statements have been reviewed by the Audit Committee - The Audit Committee comprises three independent non-executive directors, with **Mr. Lee Boon Wee** as Chairman[141](index=141&type=chunk) - Key responsibilities include recommending auditor appointment/removal, reviewing financial statements, providing financial reporting advice, and overseeing risk management and internal control procedures[141](index=141&type=chunk) - The Q3 2021 financial statements were not audited by the company's auditors but have been reviewed by the Audit Committee[141](index=141&type=chunk)

Revenue Performance - Revenue for the six months ended November 30, 2020, was SGD 10,240,167, an increase from SGD 8,080,441 in 2019, representing a growth of 26.7%[15] - Revenue for the three months ended November 30, 2020, was SGD 3,789,860, compared to SGD 2,683,610 for the same period in 2019, representing an increase of approximately 41.2%[22] - Revenue from contracts with customers is recognized when control of goods or services is transferred to the customer, excluding amounts collected on behalf of third parties[47] - Revenue from external customers for the myBill segment was SGD 9,447,393 in 2020, compared to SGD 6,516,847 in 2019, representing an increase of approximately 45%[63] - The group’s total revenue for the six months ended November 30, 2020, was SGD 10,240,167, up from SGD 8,080,441 in the same period in 2019, marking an increase of about 27%[63] - Revenue from the Simplity segment grew significantly by 54.8% or SGD 3,073,103, while Starlight and myBill revenues decreased by SGD 829,043 (56.6%) and SGD 142,557 (15.6%) respectively[140] Profitability - Gross profit increased to SGD 4,081,142 from SGD 3,174,931, reflecting a growth of 28.5%[15] - The pre-tax profit turned from a loss of SGD 500,643 to a profit of SGD 1,962,375, primarily due to increased revenue and reduced group operating expenses[17] - The company reported a net profit attributable to owners of SGD 1,962,753 for the six months ended November 30, 2020, compared to a loss of SGD 179,506 in the same period of 2019[22] - The total reported segment profit for the group was SGD 3,082,680 for the six months ended November 30, 2020, compared to SGD 1,900,192 for the same period in 2019, reflecting a growth of about 62%[63] Cash Flow and Assets - The net cash generated from operating activities for the six months ended November 30, 2020, was SGD 5,872,610, compared to a net cash used of SGD 633,279 in the same period of 2019[28] - Total assets as of November 30, 2020, amounted to SGD 14,768,206, an increase from SGD 13,539,070 as of May 31, 2020[23] - Cash and cash equivalents at the end of the period were SGD 9,846,577, significantly higher than SGD 2,413,181 at the end of the same period in 2019[28] - The group’s cash and cash equivalents increased significantly from SGD 4,749,041 as of May 31, 2020, to SGD 9,846,577 as of November 30, 2020[67] Expenses and Costs - Increased costs related to human resources were noted, primarily to support revenue growth, with challenges in employee retention leading to higher compensation and outsourcing costs[17] - Administrative expenses decreased by SGD 658,815 due to the divestment of a joint venture in China, stabilizing management costs in Singapore[143] - Sales costs increased by 25.6%, with Simplity's sales costs rising by 66.5% or SGD 2,136,578, primarily due to labor-related costs[141] Segment Performance - Simplicity total revenue for the six months ended November 30, 2020, was SGD 8,678,395, representing a 54.8% increase compared to SGD 5,605,292 for the same period in 2019[125] - Project revenue for Simplicity increased by 75.5% to SGD 6,802,803 from SGD 3,876,593 year-over-year[126] - Starlight total revenue decreased to SGD 636,850 for the six months ended November 30, 2020, down from SGD 1,465,893 in the previous year, reflecting a decline of 56.6%[128] - SpaceMonster revenue increased by 59.6% to SGD 155,924 compared to SGD 97,701 for the same period in 2019[135] Research and Development - Research and development expenses for the six months ended November 30, 2020, were SGD 479,418, slightly up from SGD 460,221 in the same period of 2019[22] - Research and development efforts continue to enhance existing products, with a focus on adding new features to improve customer experience[145] Corporate Governance - The company has complied with the corporate governance code since its listing date[165] - The Audit Committee was established on November 24, 2016, consisting of three independent non-executive directors, with Mr. Li Wenwei as the chairman[167] - The main responsibilities of the Audit Committee include recommending the appointment and dismissal of external auditors, reviewing financial statements, and overseeing risk management and internal control procedures[167] Shareholder Information - Major shareholders include iGlobe Platinum Fund Limited with 82,326,335 shares, representing 20.62% of the total issued shares[152] - Huang Yan Yan holds 45,572,000 shares, accounting for 11.42% of the total issued shares[152] - M1 Limited has a beneficial interest in 20,259,000 shares of M1 TeliNet Pte. Ltd., which is 5.08% of the total issued shares[152] Dividend Information - The company did not declare an interim dividend for the six months ended November 30, 2020, compared to SGD 0 for the same period in 2019[18] - The company did not declare any interim dividend for the six months ended November 30, 2020[166]

Financial Performance - Revenue for the first quarter was 3,763,059 SGD, a slight increase of 1.0% compared to 3,726,835 SGD in the same period last year[14] - Gross profit decreased by 7.4% to 1,393,894 SGD from 1,504,935 SGD year-on-year[14] - Pre-tax profit turned around to 484,105 SGD from a pre-tax loss of 368,621 SGD, primarily due to reduced operating expenses related to the sale of a joint venture in China[17] - Total revenue for the three months ended August 31, 2020, was S$3,763,059, compared to S$3,726,835 for the same period in 2019, representing a growth of approximately 1%[19] - The company reported a profit before tax of S$484,105, a significant recovery from a loss of S$368,621 in the previous year[19] - Basic and diluted earnings per share for the period were S$0.12, compared to a loss of S$0.03 in the same quarter of the previous year[19] - The total comprehensive loss for the period was S$480,823, compared to a loss of S$396,641 in the previous year, indicating an increase in losses[19] - The company generated other income of 303,905 SGD in 2020, a substantial increase from 13,197 SGD in 2019, indicating a growth of over 2,200%[67] - Employee costs decreased to 2,335,639 SGD in 2020 from 2,736,647 SGD in 2019, a reduction of approximately 15%[68] - The company reported financing costs of 2,220 SGD for the three months ended August 31, 2020, compared to 1,533 SGD in 2019, marking an increase of about 45%[73] Revenue Breakdown - Revenue from the public sector's investment in smart technology contributed an additional 25.1%, amounting to 632,633 SGD[15] - Monthly subscriptions for myBill remained stable at 100,000, although one-time renewal tax refunds led to a temporary revenue decline of 19.7%, equating to 80,833 SGD[15] - Starlight's revenue saw a significant drop of 72.8%, amounting to 539,366 SGD, due to installation restrictions caused by the COVID-19 pandemic[15] - SpaceMonster's revenue grew by 47.1%, adding 23,790 SGD as more venues joined the platform[15] - Simplicity total revenue increased by 25.1% to SGD 3,156,881 compared to SGD 2,524,248 in the same quarter last year, driven by new public sector digitalization projects[81] - Maintenance service revenue for Simplicity grew by 36.9%, contributing to the overall revenue increase[82] - Starlight total revenue decreased by 72.8% to SGD 201,719 due to installation restrictions from the COVID-19 pandemic[84] - myBill total revenue was SGD 330,159, with a temporary decline of 19.7% due to one-time contract renewal rebates[88] - SpaceMonster revenue grew by 47.1% to SGD 74,300, reflecting strong demand for venue-sharing services[89] - Overall group revenue increased by 1.0% to SGD 3,763,059, with Simplicity's growth offsetting declines in Starlight and myBill[92] Costs and Expenses - Costs associated with Simplicity increased by 63.9%, primarily due to challenges in employee retention, which raised payroll and outsourcing costs[16] - Group sales costs increased by 6.6%, with Simplicity's sales costs rising by 63.9% due to increased labor costs[93] - Group gross profit decreased by SGD 111,041 or 7.4%, with Simplicity's gross margin at 38.6%[94] Corporate Governance and Shareholder Information - The board did not declare any interim dividend for the three months ended August 31, 2020, compared to zero dividend in the same period last year[18] - Major shareholders include iGlobe Platinum Fund Limited with 20.62% and BAF Spectrum Pte. Ltd. with 9.91% of the issued shares[107] - Liu Yijun holds 11.42% of the company’s shares, while Wang Ruixing holds 5.70%[105] - The total number of issued shares as of August 31, 2020, was 399,158,496[105] - The company is committed to strong corporate governance to enhance shareholder value and has complied with the corporate governance code since the listing date[116][117] - The audit committee has not been able to maintain the minimum required three members due to the retirement of Robert Chew, and efforts will be made to fill the vacancy within three months[120] Future Outlook and Strategic Focus - The company continues to focus on software development and energy management solutions, aiming for market expansion and technological advancements[24] - The company expects continued growth in the enterprise application software market in Singapore and Southeast Asia in 2021[90] - The company is focused on technological advancements in its software framework to stay ahead of competitors[100] - The company is committed to market expansion and the development of new products and technologies[100] Accounting Policies - Revenue from contracts with customers is recognized when control of goods or services is transferred to the customer, excluding amounts collected on behalf of third parties[44] - The group generates revenue from providing enterprise application software solutions and energy management solutions, with fixed contract prices and invoicing typically within 90 days[45] - Revenue from services, including maintenance, is recognized as the customer simultaneously receives and consumes the benefits, with invoices issued monthly[47] - Hardware sales revenue is recognized when customers take possession and accept the products, typically within 30 days of invoicing[48] - Rental income from leasing hardware is recognized on a straight-line basis over the lease term[50] - Interest income is recognized using the effective interest method based on the estimated future cash flows of financial assets[51] - Government grants are recognized when there is reasonable assurance of receipt and compliance with attached conditions[52] - Employee benefits, including contributions to defined contribution retirement plans, are recognized as expenses when employees provide related services[54]

Financial Performance - Anacle Systems Limited reported a total revenue of SGD 18.9 million for the fiscal year ending December 31, 2020, with a net loss after tax of SGD 130,000[10]. - The revenue from the smart city management software segment reached SGD 13.3 million, representing a growth of 29.4% compared to the previous year[11]. - The smart utility management solutions segment saw a revenue increase of 49.1%, totaling SGD 3.46 million, indicating a recovery in project delivery pipelines[11]. - The myBill utility revenue assurance platform achieved a record growth rate of 247.1%, now accounting for 10.1% of the total group revenue[11]. - The revenue for FY2020 reached 18,933,000 SGD, marking a significant increase compared to 13,333,000 SGD in FY2019, representing a growth of 42.5%[21]. - The adjusted EBITDA for FY2020 was 2,090,000 SGD, a significant improvement from the adjusted EBITDA of (4,560,000 SGD) in FY2019[21]. - The gross profit for 2020 was 7,594,160 SGD, compared to 2,708,293 SGD in 2019, marking a significant increase of 180.0%[23]. - The total revenue for the fiscal year amounted to S$15,250,431, a significant increase from S$10,864,250 in the previous year[46]. - The company reported a net loss of SGD 131,374 for the year, leading to a slight decrease in total equity to SGD 11,827,282 from SGD 11,924,669 in FY2019[70]. Market and Strategic Focus - The company continues to focus on the Southeast Asian market following the economic downturn in Singapore, which is experiencing its most severe recession since independence[13]. - The global smart city market is projected to exceed 2 trillion USD (2.7 trillion SGD) by 2025, positioning the company for future growth opportunities[15]. - The geographical revenue distribution showed Singapore contributing 92.3% of total revenue, up from 84.0% in 2019, while China dropped to 1.6% from 14.0%[41]. - The company plans to actively expand its customer base and channel partners through acquisitions both locally and internationally[81]. Challenges and Risks - The company faced challenges due to the deteriorating international economic environment, particularly in China, leading to the relinquishment of control over a joint venture in Hangzhou[13]. - The operating environment is expected to remain challenging in the coming year due to ongoing local and global uncertainties[13]. - The company anticipates a challenging fiscal year 2021 due to the ongoing impact of the COVID-19 pandemic on market conditions[25]. - The company faces risks from changes in government policies and industry standards in the markets it operates, which could impact its financial performance[87]. Corporate Governance - The company has maintained compliance with all applicable corporate governance codes during the fiscal year[117]. - The board of directors has adopted a code of conduct for securities trading, ensuring adherence to the standards set forth in the listing rules[118]. - The company is committed to enhancing shareholder value through robust corporate governance practices[116]. - The board consists of eight members, with over 60% being non-executive and independent non-executive directors[121]. - The company has established a risk management and internal control system to minimize risks associated with its operations[154]. Operational Highlights - Anacle secured its largest project to date, providing a next-generation smart property management system for the Singapore Housing Development Board, which manages over 1 million residential units[12]. - The company completed the deployment of Starlight smart green home solutions in FY2020, despite challenges posed by the COVID-19 pandemic[61]. - The company has implemented an employee stock option plan to enhance loyalty among senior management[82]. - The company has a strong focus on project management and business development, led by a team with over 16 years of experience in IT and business consulting[103]. Cash Flow and Assets - The company generated over 4 million SGD in additional cash reserves from operations in FY2020, ensuring sufficient cash flow to sustain operations[15]. - Total cash increased to SGD 4,749,041 in FY2020 from SGD 2,428,307 in FY2019, reflecting improved cash levels due to increased revenue and reduced total costs[70]. - Total assets increased to 15,651,000 SGD in FY2020 from 15,401,000 SGD in FY2019, indicating a stable financial foundation[21]. Employee and Operational Changes - Employee count decreased by 23.2% to 136 employees, primarily due to the merger cancellation of a subsidiary in Hangzhou, China, while employee costs decreased by 4.5%[93]. - The company has no financial instruments to hedge foreign exchange risks but continues to monitor and manage these risks[78]. Research and Development - Research and development expenses were limited, with a focus on minor improvements to existing products like Simplicity® and myBill®[65].

Financial Performance - Revenue for the third quarter of 2019 was SGD 7,437,633, a decrease of 28.1% compared to SGD 10,340,150 in the same period of 2018[17] - Gross profit decreased to SGD 1,223,442, representing a decline of 71.9% from SGD 4,351,428 year-on-year[17] - The company reported a loss before tax of SGD (3,086,372), compared to a profit of SGD 153,041 in the previous year[17] - For the three months ended February 28, 2019, the company reported a revenue of SGD 4,997,819, a decrease from SGD 5,988,722 in the same period of 2018, representing a decline of approximately 16.5%[23] - The gross profit for the same period was SGD 1,712,714, compared to SGD 4,351,428 in 2018, indicating a significant drop of about 60.7%[23] - The net loss for the three months ended February 28, 2019, was SGD 3,298,719, compared to a profit of SGD 205,770 in the previous year, marking a substantial change in performance[23] - The total comprehensive income for the period was SGD 212,432, a decrease from SGD 156,681 in the same period of 2018, reflecting a decline of approximately 35.6%[23] - The company reported a total revenue of SGD 7,437,633 for the nine months ended February 28, 2019, down from SGD 10,340,150 in the same period of 2018, representing a decrease of about 28.0%[23] - The company incurred research and development costs of SGD 923,988 for the three months ended February 28, 2019, compared to SGD 1,022,856 in the same period of 2018, showing a reduction of approximately 9.7%[23] - The company reported a pre-tax loss of 3,294,724 SGD for the current period, compared to a profit of 205,675 SGD in the previous period[62] Revenue Sources - Revenue from external customers for the Simplicity and myBill segment was 5,804,757 SGD, while for Starlight it was 1,541,013 SGD, and for SpaceMonster it was 91,863 SGD, totaling 7,437,633 SGD for 2019[60] - Revenue from Singapore for the nine months ended February 28, 2019, was SGD 6,708,257, down 32% from SGD 9,989,900 in the previous year[64] - Revenue from China contributed SGD 550,350 for the nine months ended February 28, 2019, marking the first revenue from this market[64] - Simplicity total revenue decreased by 7.5% to 5,529,583 SGD compared to 5,977,490 SGD for the same period last year[91] - Simplicity recurring service revenue dropped by 25.1% to 1,343,489 SGD from 1,794,580 SGD year-over-year[91] - Starlight total revenue decreased by 64.6% to 1,541,013 SGD from 4,358,670 SGD in the previous year[97] - SpaceMonster revenue increased by 1,357% to 91,863 SGD due to rising demand for shared space services[105] - myBill generated 275,174 SGD in revenue since its launch, reflecting steady growth in the open electricity market[102] Strategic Focus - The decline in revenue was attributed to delays in the Starlight project launch and the introduction of new project implementation methods[17] - Despite the revenue decrease, the myBill and SpaceMonster products continued to show steady growth, partially offsetting losses from Starlight and Simplicity[17] - The company is intensifying efforts to expand into international markets to achieve higher revenue growth[17] - The company is focusing on maintaining a healthy pipeline from existing customers, particularly for the Simplicity product[17] - The overall financial performance indicates a need for strategic adjustments to improve profitability and revenue generation moving forward[17] - The company aims to expand its Simplicity software sales and delivery into the Chinese market, which has already contributed SGD 550,350 in revenue[87] - The company continues to focus on providing value-added services to existing customers while expanding into overseas markets[87] Corporate Governance - The company is committed to fulfilling its responsibilities to shareholders through robust corporate governance practices[146] - The company has adhered to the corporate governance code provisions from the listing date to the report date[147] - The board decided not to declare a dividend for the nine months ended February 28, 2019, consistent with the previous year[148] - The audit committee, established on November 24, 2016, consists of three independent non-executive directors, with Mr. Li Wenwei as the chairman[151] - The financial statements for Q3 2019 were reviewed by the audit committee but not audited by the company's external auditors[151] Shareholder Information - As of February 28, 2019, the total issued share capital was 399,158,496 shares[125] - Liu Yijun holds a beneficial interest in 45,500,000 shares, representing approximately 12.64% of the company's issued share capital[124] - Wang Ruixing holds a beneficial interest in 22,750,000 shares, representing approximately 6.94% of the company's issued share capital[124] - The company has granted 31,179,876 shares under the pre-IPO share option plan to 11 participants, including two directors and four senior management personnel[138] - The pre-IPO share options can be exercised at approximately SGD 0.01 or SGD 0.07 per share, depending on circumstances, and are exercisable in four tranches annually[138] - As of February 28, 2019, there were no unexercised pre-IPO share options[139] - The company has adopted a post-IPO share option plan, which has not resulted in any grants, exercises, or cancellations as of the report date[140] - There were no repurchases, sales, or redemptions of the company's listed securities during the reporting period[144]

Financial Performance - Revenue for the nine months ended February 28, 2018, was reported at SGD 10,340,150, an increase from SGD 9,932,863 in the previous year, reflecting a growth of approximately 4.1%[18] - Gross profit decreased to SGD 4,351,428 from SGD 5,643,423, indicating a decline of about 22.9%[18][19] - Profit before tax improved to SGD 286,544 compared to a loss of SGD 635,663 in the previous year, marking a significant turnaround[18] - Revenue for the three months ended February 28, 2018, was SGD 4.998 million, down 7.2% from SGD 5.383 million in the same period of 2017[24] - Gross profit decreased to SGD 1.713 million for the three months ended February 28, 2018, compared to SGD 3.068 million in the same period of 2017, reflecting a decline of 44.2%[24] - Total comprehensive income for the three months ended February 28, 2018, was SGD 212.432 million, a decrease of 82.8% from SGD 1.239 million in the same period of 2017[24] - The company reported a net loss attributable to owners of the company of SGD 0.639 million for the nine months ended February 28, 2018, compared to a profit of SGD 0.137 million in the same period of 2017[24] - The profit before tax for the reporting segments was 3,109,901 SGD in 2018, compared to 4,633,825 SGD in 2017, reflecting a decline of approximately 32.8%[39] Revenue Sources - The company attributed revenue growth to the successful completion of two new major products[18] - The primary revenue source, Simplicity, experienced a reduction, contributing to the decline in gross profit[19] - Revenue from Singapore was 9,989,900 SGD in the nine months ended February 28, 2018, compared to 9,487,853 SGD in the same period of 2017, showing an increase of about 5.3%[40] - Total revenue for SIMPLICITY decreased by 21.9% to SGD 5,977,490 compared to SGD 7,649,571 in the same period of 2017[55] - Total revenue for STARLIGHT increased by 91.0% to SGD 4,358,670, with project revenue rising by 88.2% to SGD 4,152,349[59] - SPACEMONSTER revenue surged by 2,394% to SGD 3,990 for the nine months ended February 28, 2018, compared to SGD 160 in the same period of 2017[62] Future Outlook and Strategy - The company is focused on expanding its product offerings and enhancing its market presence through new technology developments[18] - Future outlook includes continued investment in product innovation and market expansion strategies[18] - The company plans to launch new products TESSERACT and Mybill in the next fiscal year, following significant investments in sales and marketing activities[21] - The company is set to launch Mybill, a cloud-based platform for energy retailers, in June 2018, aimed at automating monthly billing for approximately 1.3 million competitive consumer households in Singapore[66] - TESSERACT, a revolutionary smart meter IoT device, is in prototype design and is expected to launch in June 2018, introducing cost-effective edge computing capabilities to the energy market[68] - The next phase of SpaceMonster's growth includes nationwide marketing efforts and potential international market expansion[70] Expenses and Costs - The company incurred a depreciation expense of 130,594 SGD for property, plant, and equipment in the nine months ended February 28, 2018, down from 206,212 SGD in 2017, reflecting a decrease of about 36.7%[47] - The company’s total expenses for the nine months ended February 28, 2018, were 4,738,354 SGD, compared to 4,254,676 SGD in 2017, indicating an increase of approximately 11.4%[47] - Employee costs, including directors' remuneration, totaled 5,989,856 SGD for the nine months ended February 28, 2018, compared to 4,968,798 SGD in 2017, representing an increase of approximately 20.5%[47] - Administrative expenses increased to SGD 1.023 million for the three months ended February 28, 2018, compared to SGD 0.926 million in the same period of 2017, reflecting an increase of 10.5%[24] - Marketing and other operating expenses increased due to the addition of 4 sales and marketing team members and participation in various marketing events[84] Shareholder Information - As of February 28, 2018, Liu Yi Jun holds 45,500,000 shares, representing approximately 12.64% of the company's issued share capital[91] - Wang Rui Xing owns 22,750,000 shares, accounting for about 6.94% of the total issued share capital[91] - iGlobe Platinum Fund Limited holds 82,326,335 shares, which is approximately 20.62% of the company's issued share capital[98] - BAF Spectrum Pte. Ltd. possesses 39,565,162 shares, representing about 9.91% of the total issued share capital[98] - Majuven Fund 1 Ltd. has 36,528,219 shares, equating to approximately 9.15% of the company's issued share capital[98] - Liu Yi Jun's spouse, Huang Yan Yan, is deemed to have an interest in 50,469,783 shares, which is about 12.64% of the total issued share capital[98] - The total number of issued shares as of February 28, 2018, is 399,158,496[92] - The share options granted to directors under the pre-IPO share option plan include 4,969,783 shares for both Liu Yi Jun and Wang Rui Xing, each representing approximately 1.25% of the company's issued share capital[94] - OWW Investments III Limited holds 20,873,307 shares, which is about 5.23% of the total issued share capital[98] - M1 TeliNet Pte. Ltd. and M1 Limited each own 20,259,000 shares, representing approximately 5.08% of the company's issued share capital[98] Governance and Compliance - The company is committed to maintaining transparency and accuracy in its financial reporting as per GEM listing rules[2] - The audit committee, established on November 24, 2016, consists of two independent non-executive directors and one non-executive director, responsible for reviewing financial statements and overseeing risk management[117] - No dividends were declared for the nine months ending February 28, 2018, compared to zero Singapore dollars for the same period in 2017[113]

Financial Performance - Anacle Systems Limited reported a revenue of HKD 12 million for Q3 2017, representing a 20% increase compared to the previous quarter[11]. - The company achieved a gross profit margin of 45% in Q3 2017, up from 40% in Q2 2017[11]. - Anacle Systems Limited reported a net profit of HKD 3 million for Q3 2017, a significant improvement from a net loss of HKD 1 million in Q2 2017[11]. - The group's total revenue increased by 22.33% from SGD 8,119,637 for the nine months ended February 29, 2016, to SGD 9,932,863 for the nine months ended February 28, 2017[16]. - Gross profit rose by 11.92% from SGD 5,042,519 for the nine months ended February 29, 2016, to SGD 5,643,423 for the nine months ended February 28, 2017[17]. - The group recorded a pre-tax net loss of approximately SGD 1,532,663 for the nine months ended February 28, 2017, compared to a profit of SGD 1,764,259 for the same period in 2016[17]. - Adjusted pre-tax net profit, excluding one-time costs, was SGD 1,851,720 for the nine months ended February 28, 2017, compared to SGD 1,941,598 for the same period in 2016[17]. - Total comprehensive income for the nine months ended February 28, 2017, was SGD 1,069,804, compared to a loss of SGD 1,517,900 for the same period in 2016[21]. - The company reported a net loss before tax of SGD 1,532,663 for the nine months ended February 28, 2017, compared to a loss of SGD 1,764,259 in the same period in 2016, showing an improvement in financial performance[38]. - The net loss for the nine months ended February 28, 2017, was approximately SGD 1,536,549, compared to a net profit of SGD 1,045,117 for the same period in 2016[82]. Market Expansion and Strategy - Anacle Systems Limited plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2018[11]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its product offerings[11]. - The company aims to strengthen its market position in Malaysia and expand its business into Hong Kong, China, and the Middle East following its successful listing on December 16, 2016[58]. - The company anticipates strong growth in the enterprise application software and building energy management systems market in Singapore for the full year of 2017[66]. Research and Development - The company is investing HKD 5 million in R&D for new product development, focusing on IoT solutions[11]. - The company has launched a new advanced IoT platform named TESSERACT, aimed at processing big data efficiently[11]. - Research and development costs for the nine months ended February 28, 2017, were SGD 82,946, a decrease from SGD 1,091,692 for the same period in 2016[21]. - The revolutionary IoT product TESSERACT has successfully obtained all necessary certifications and is expected to be a significant driver for Starlight's business in the next fiscal year[66]. Shareholder Information - The total issued and paid-up ordinary shares as of February 28, 2017, was 399,158,496 shares, an increase from 3,281,722 shares as of February 29, 2016[53]. - Major shareholders include iGlobe Platinum Fund Limited with 82,326,335 shares, representing 20.62% of the total shares, and BAF Spectrum Pte. Ltd. with 39,565,162 shares, representing 9.91%[104]. - Huang Yanyan, spouse of Mr. Liu, holds 45,500,000 shares, representing 12.64% of the total shares, along with their children who also hold similar rights[104]. - The company has a total of 4,969,783 shares associated with the stock options granted to directors, which are part of the pre-IPO stock option plan[100]. - The company granted stock options to directors under the pre-IPO stock option plan, allowing them to purchase a total of 4,969,783 shares at an exercise price of approximately 0.01 SGD each, representing 1.25% of the total shares[96]. Corporate Governance - The audit committee was established on November 24, 2016, consisting of three independent non-executive directors, with the main responsibilities including reviewing financial statements and overseeing risk management[129]. - The company has complied with the corporate governance code from the listing date to the report date[125]. - The company has confirmed compliance with securities trading standards from the listing date to February 28, 2017[119]. - The company is committed to adhering to the Securities and Futures Ordinance regarding the disclosure of interests in shares and related securities[102]. Financial Guidance and Future Outlook - Anacle Systems Limited has set a revenue guidance of HKD 50 million for the next quarter, indicating a 30% year-over-year growth[11]. - The company's board expressed confidence in achieving its strategic goals for the upcoming fiscal year[11].

Financial Performance - Anacle Systems reported a revenue of HKD 50 million for the nine months ended February 29, 2020, representing a year-on-year increase of 15%[1] - Revenue for the nine months ended February 29, 2020, was S$12,814,688, a significant increase from S$7,437,633 for the same period in 2019, representing a growth of 72.3%[7] - Revenue from external customers reached SGD 9,951,184 for the nine months ended February 29, 2020, compared to SGD 5,804,757 for the same period in 2019, representing an increase of 71.5%[22] - Total revenue for the nine months ended February 29, 2020, was SGD 12,814,688, compared to SGD 7,437,633 for the same period in 2019, an increase of 72.1%[22] - The group's overall revenue rose by 72.3% to SGD 12,814,688, with all business segments contributing to this growth[46] Profitability and Margins - The company achieved a gross profit margin of 40% during the reporting period, indicating a stable profitability level[1] - Gross profit for the nine months increased to S$4,675,067, compared to S$1,223,442 in the previous year, reflecting a gross margin increase of 282.1%[8] - The company reported a gross profit margin increase due to substantial revenue growth, indicating effective cost management and operational efficiency[8] - Gross profit increased by 282.1% to SGD 3,451,625, with gross margin improving from 16.4% to 36.5%[46] - Starlight's gross profit rose by 138.6% to SGD 317,949, with gross margin increasing to 20.3%[46] - myBill achieved profitability with a gross profit of SGD 377,270, compared to a loss of SGD 180,626 in the previous year[46] Market Expansion and Strategy - Anacle Systems plans to expand its market presence in Southeast Asia, targeting a 25% growth in market share over the next fiscal year[1] - The increase in revenue was primarily driven by stronger orders and improved project delivery methods, particularly in the Singapore market, which is investing more in smart city technologies[7] - The company is exploring potential acquisitions to enhance its technology capabilities and expand its service offerings[1] - The company has implemented a new marketing strategy aimed at increasing brand awareness, with a projected increase in marketing spend by 30%[1] - The company anticipates that the Singapore market, particularly the public sector, will continue to be a major source of revenue despite economic impacts from the COVID-19 pandemic[38] Research and Development - The company is investing in new product development, with a budget allocation of HKD 5 million for R&D in IoT solutions[1] - The company continues to invest in R&D to enhance existing products and maintain a competitive edge in the market[47] Financial Position and Guidance - The board of directors confirmed their commitment to maintaining a strong financial position, with a current cash reserve of HKD 20 million[1] - Future guidance indicates expected revenue growth of 10-15% for the next quarter, driven by increased demand for its software solutions[1] - The company reported a net loss of SGD 122,416 for the nine months ended February 29, 2020, compared to a net loss of SGD 3,013,756 for the same period in 2019, reflecting an improvement in financial performance[32] Shareholding and Corporate Governance - As of February 29, 2020, the total number of shares held by Mr. Liu is 45,572,000, representing approximately 12.66% of the company's issued shares[48] - Mr. Wang holds a total of 27,719,783 shares, which accounts for about 6.94% of the company's issued shares[48] - The company has a total of 399,158,496 issued shares as of February 29, 2020, which is the basis for calculating the percentage of shareholdings[50] - The company adheres to the corporate governance code and other regulations as stipulated in the relevant laws[49] - The report indicates that the company is committed to transparency and compliance with regulatory requirements regarding shareholdings and interests[49] Audit and Compliance - The financial statements were prepared in accordance with International Accounting Standards, ensuring compliance with applicable disclosure requirements[10] - The third quarter financial statements were prepared in accordance with all applicable International Financial Reporting Standards (IFRS) and the disclosure requirements of the Companies Ordinance[12] - The audit committee, established on November 24, 2016, consists of three independent non-executive directors and is responsible for reviewing financial statements and overseeing risk management[57] - The financial statements for the third quarter of 2020 were reviewed by the audit committee but not audited by the company's external auditors[57]