MINDTELL TECHNOLOGY LIMITED (於開曼群島註冊成立之有限公司) (股份代號:8611) 截至二零二三年二月二十八日止三個月 第一季度業績公告 香港聯合交易所有限公司(「聯交所」)GEM之特色 GEM之定位,乃為中小型公司提供一個上市之市場,此等公司相比起其他在聯交所上市 之公司帶有較高投資風險。有意投資之人士應了解投資於該等公司之潛在風險,並應經 過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司,在GEM買賣之證券可能會較於聯交所主板買賣 之證券承受較大之市場波動風險,同時無法保證在GEM買賣之證券會有高流通量之市 場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責,對其準確性或完整性亦 不發表任何聲明,並明確表示,概不就因本公告全部或任何部分內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 本公告之資料乃遵照聯交所GEM證券上市規則(「GEM上市規則」)而刊載,旨在提供有關 Mindtell Technology Limited(「本公司」)之資料;本公司董事(「董事」)願就本公告之資料 共同及個別地承擔全部責任。各董事在作出一切合理查詢後 ...

Company Operations - The Group's operation is primarily located in Malaysia, providing system integration and IT-related services since 2006[19]. - The Group's customer base includes banks, financial institutions, government bodies, educational institutions, and SMEs[19]. - The Group has diversified its business to include general trading services related to IT and management consultancy[19]. - The Group's operations are primarily financed by revenue generated from business operations, available bank balances, and interest-bearing borrowings[76]. Impact of COVID-19 - The COVID-19 pandemic continued to impact the Group's operations, affecting new project negotiations and delaying existing projects[20]. - The COVID-19 pandemic has led to cost overruns and project delays, but the Group continues to manage costs carefully[112]. - Post-pandemic, customers appear more confident to spend and invest in IT-driven business transformation[26]. - The Group will continue to monitor the development of COVID-19 to ensure employee safety and stable operations[71]. Financial Performance - The financial year ended on November 30, 2022, with ongoing efforts to maintain stable operations[20]. - The Group's total revenue decreased by approximately 27.4% to approximately RM12.5 million for the year ended 30 November 2022, down from RM17.2 million in 2021[35]. - Revenue from system integration and development services decreased by approximately 24.8% to approximately RM10.2 million for the year ended 30 November 2022, compared to RM13.5 million in 2021[39]. - Revenue from IT outsourcing services decreased by approximately 56.4% to approximately RM1.2 million for the year ended 30 November 2022, down from RM2.9 million in 2021[40]. - Revenue from maintenance and consultancy services increased by approximately 32.0% to approximately RM1,047,000 for the year ended 30 November 2022, up from approximately RM793,000 in 2021[41]. - The Group recorded a loss of approximately RM6.7 million for the year ended 30 November 2022, compared to a loss of RM6.3 million in 2021, attributed to rising administrative expenses[54]. - Administrative expenses rose by approximately 19.7% to RM10.9 million for the year ended 30 November 2022, mainly due to an increase in amortization of intangible assets[51]. - Finance costs increased by approximately 36.1% to RM98,000 for the year ended 30 November 2022, as no interest-free deferral of repayment was granted in 2022[52]. Strategic Focus and Future Plans - The Group aims to develop advanced versions of existing IT products to increase competitive edge[20]. - The Group is exploring appropriate investment opportunities to strengthen its core business[20]. - The Group aims to be a major IT solution provider for digital banking and public financial services[29]. - The Group plans to continue focusing on digital transformation and modernization solutions for customers, anticipating an expansionary future in the industry[68]. - The Group is focusing on providing pay-per-use or leasing commercial models to ease customers' financial burdens and secure long-term contracts[28]. - The Group is actively negotiating and securing new projects and tenders to enhance business performance and develop advanced versions of IT products[25]. - The Group is exploring emerging markets such as Vietnam and Cambodia to identify new business opportunities and investment opportunities[25]. Market Environment - The Group's business environment remains challenging due to potential global recession, rising interest rates, and supply chain disruptions[24]. - The Group anticipates a challenging economic environment in Malaysia due to global economic slowdown and interest rate hikes[98]. - The Group is monitoring global developments, including rising interest rates and supply chain disruptions, which may impact business operations[104]. - The Malaysian economy showed signs of recovery in the second half of 2022, with expectations for a quicker recovery path due to high vaccination rates and the reopening of borders[66]. Management and Governance - The company has a diverse board with expertise in finance, IT, and business intelligence, enhancing its strategic decision-making capabilities[158]. - The board includes independent non-executive directors who contribute to the governance and oversight of the company[165]. - The company is focused on expanding its market presence through strategic appointments and leveraging the experience of its directors[160]. - The management team has a strong background in technology and finance, which is crucial for the company's growth strategy[171]. - The board's composition reflects a commitment to strong governance and diverse skill sets, which is essential for navigating market challenges[165]. Employee and Staff Costs - The Group's total staff costs and related expenses for the year ended 30 November 2022 were approximately RM9.1 million, an increase from RM7.7 million in 2021[131]. - The Group's employee count increased to 70 as of 30 November 2022, up from 60 in the previous year[131]. - The Group contributed approximately RM703,000 to the Mandatory Provident Fund (MPF) and Employees Provident Fund (EPF) schemes for the year ended November 30, 2022, compared to RM629,000 in 2021[137]. - The Group is required to contribute 5% of employees' relevant income to the MPF scheme, with a cap of HK$30,000 per month[135]. - The Group's subsidiaries in Malaysia are required to contribute between 6% to 13% of payroll costs to the EPF[136]. Research and Development - The Group has completed the advanced version of its mobile payment application, Blackbutton 2.0, which is now ready for market offering[95]. - The Group plans to enhance Blackbutton to support new digital processes, including digital customer onboarding, eKYC, and digital credit origination[101]. - The R&D department is actively involved in developing new products and improving existing technologies[186]. - The Group continuously develops advanced versions of existing products and evaluates potential acquisitions to meet customer demands[116]. Financial Management - The Group raised approximately RM30.5 million (equivalent to approximately HK$58.6 million) from the share offer, with adjusted allocations for various purposes[119]. - Approximately RM18.3 million (equivalent to approximately HK$35.2 million), representing 60% of the net proceeds, is allocated for purchasing hardware and equipment to establish IT infrastructure for cloud services[122]. - The Group plans to allocate approximately RM6.1 million (equivalent to approximately HK$11.7 million), representing 20% of the net proceeds, for research and development of advanced IT products[127]. - As of 30 November 2022, the Group had utilized all of the RM30.5 million net proceeds, with no unutilized balance remaining[129]. - The Group's unutilised net proceeds of approximately RM11 million were reallocated to general working capital, including staff costs of RM7.6 million and professional fees of RM1.5 million[134]. Acquisitions and Investments - The Group is exploring potential acquisitions to strengthen its NS3 and CUSTPRO products in response to increasing market demand[96]. - The management attempted to negotiate a potential acquisition of a company with the Taraf Bumiputera MOF license, but it did not proceed due to unsatisfactory due diligence results[134]. - The Group has not made any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended November 30, 2022[105].

Financial Performance - Revenue for the three months ended August 31, 2022, was RM 2,162,000, a decrease of 18.4% compared to RM 2,652,000 in the same period of 2021[10] - Gross profit for the three months ended August 31, 2022, was RM 875,000, down 25.3% from RM 1,171,000 in the previous year[10] - Loss before income tax for the three months ended August 31, 2022, was RM 584,000, an improvement from a loss of RM 2,651,000 in the same period of 2021[11] - Total comprehensive loss for the period was RM 623,000, compared to RM 2,789,000 in the previous year, indicating a significant reduction in losses[11] - For the nine months ended August 31, 2022, revenue increased to RM 9,198,000, up 11.8% from RM 8,223,000 in the same period of 2021[10] - The company reported a loss for the nine months ended August 31, 2022, of RM 5,168,000, slightly improved from RM 5,479,000 in the previous year[11] - The basic loss per share for the three months ended August 31, 2022, was RM 0.16, an improvement from RM 0.72 in the same period of 2021[11] - For the three months ended August 31, 2022, the loss attributable to owners of the Company was RM623,000, compared to a loss of RM2,789,000 for the same period in 2021, representing a significant improvement[68] - For the nine months ended August 31, 2022, the loss attributable to owners of the Company was RM5,168,000, slightly better than the loss of RM5,479,000 in the same period of 2021[68] Revenue Breakdown - Segment revenue is derived from system integration and development services, IT outsourcing services, and maintenance and consultancy services[32] - System integration and development services generated RM 7,836,000 in revenue for the nine months ended August 31, 2022, up from RM 5,196,000 in 2021, reflecting a growth of 50.7%[45] - IT outsourcing services revenue decreased to RM 1,014,000 for the nine months ended August 31, 2022, down 57.8% from RM 2,408,000 in the previous year[45] - Revenue from maintenance and consultancy services decreased by approximately 43.8% to approximately RM348,000 for the nine months ended 31 August 2022, mainly due to the completion of several projects[86] Expenses and Costs - Administrative expenses for the three months ended August 31, 2022, were RM 2,353,000, an increase of 3.4% from RM 2,276,000 in the same period of 2021[10] - Amortization for the nine months ended August 31, 2022 was RM 3,410,000, compared to RM 1,808,000 for the same period in 2021, indicating a significant increase[39] - The cost of materials sold for the nine months ended August 31, 2022, was RM1,941,000, compared to RM467,000 in the same period of 2021[55] - Administrative expenses increased by approximately 25.2% to approximately RM8.2 million for the nine months ended 31 August 2022, mainly due to increased amortization of intangible assets[91] - Finance costs for the nine months ended August 31, 2022 totaled RM 74,000, an increase from RM 52,000 in the previous year[50] Taxation - Current tax expenses for the nine months ended August 31, 2022, amounted to RM39,000, consistent with RM138,000 for the same period in 2021[55] - The applicable Malaysia corporate income tax rate is 24% for the nine months ended August 31, 2022, unchanged from 2021[58] - Income tax expenses decreased to approximately RM39,000 for the nine months ended August 31, 2022, down from approximately RM138,000 in 2021, due to lower profits from Malaysian subsidiaries[96] Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and CEO[171] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, and has complied with it for the nine months ending August 31, 2022, with some deviations noted[173] - The roles of the Chairman and CEO are currently held by the same individual, Mr. Zhong Yibin, which the Board believes is in the best interest of the company and its shareholders for effective management and business development[175] - The Board consists of six other experienced individuals, including one executive director, two non-executive directors, and three independent non-executive directors, providing diverse perspectives for decision-making[175] Shareholder Information - As of August 31, 2022, Mr. Chong Yee Ping and Mr. Siah Jiin Shyang each hold 196,560,000 shares, representing approximately 50.4% of the Company's issued share capital[193] - Delicate Edge Limited and King Nordic Limited, owned by Mr. Chong Yee Ping and Mr. Siah Jiin Shyang respectively, each hold 98,280,000 shares, accounting for 25.2% of the total issued share capital of the Company[194] - Mr. Liu Yan Chee James holds 57,720,000 shares, which is 14.8% of the Company's issued share capital[193] - Mr. Lam Pang owns 38,220,000 shares, representing 9.8% of the Company's issued share capital[193] Future Outlook and Strategy - The Group aims to be a major IT solution provider for digitalization in Malaysia and is focusing on small and medium enterprises as a new market segment[112] - The Group is promoting digital adoption and transformation by providing modernized solutions to customers[108] - The Group is studying the feasibility of expanding into the Small and Medium Enterprises (SMEs) market by introducing digital solutions, with initial designs and prototypes completed[137] - The Group has been in discussions with potential technology partners in China to launch their services/products in Malaysia, which were delayed due to the COVID-19 pandemic[140] Risks and Challenges - The Group identified risks related to reliance on major customers, which could adversely affect business and financial condition if revenue decreases from these customers[147] - The information technology industry in Malaysia is expected to remain challenging and competitive in the coming years due to the ongoing impact of the COVID-19 pandemic[129] - The COVID-19 pandemic has caused cost overruns and delays in projects, but the Group is managing costs carefully and optimizing resource utilization[152]

Financial Performance - Revenue for the three months ended 31 May 2022 was RM 2,576,000, a decrease of 30.7% compared to RM 3,729,000 for the same period in 2021[11] - Gross profit for the six months ended 31 May 2022 was RM 1,219,000, down 30.4% from RM 1,753,000 in the same period of 2021[11] - Loss before income tax for the three months ended 31 May 2022 was RM 2,309,000, compared to a loss of RM 1,579,000 for the same period in 2021, representing a 46.3% increase in loss[12] - Total comprehensive loss for the six months ended 31 May 2022 was RM 4,545,000, an increase of 68.5% from RM 2,709,000 in the same period of 2021[12] - The loss per share for the six months ended 31 May 2022 was RM 1.17, compared to RM 0.69 for the same period in 2021, indicating a 69.6% increase in loss per share[12] - The company reported a loss before income tax of RM 4,545,000 for the six months ended May 31, 2022, compared to a loss of RM 2,690,000 for the same period in 2021, indicating an increase in losses of approximately 68.7%[19] - For the six months ended 31 May 2022, the loss attributable to owners of the Company was RM4,545,000, an increase from RM2,690,000 in the same period of 2021[81] - The Group recorded a loss of approximately RM4,545,000 for the six months ended 31 May 2022, an increase from approximately RM2,690,000 in 2021[149] Assets and Liabilities - Current assets decreased to RM 17,015,000 as of 31 May 2022 from RM 25,432,000 as of 30 November 2021, a decline of 33.0%[14] - Trade and other receivables dropped significantly to RM 3,703,000 from RM 9,590,000, a decrease of 61.4%[14] - Current liabilities decreased to RM 10,185,000 as of 31 May 2022 from RM 14,527,000, a reduction of 30.0%[14] - Non-current assets decreased to RM 5,292,000 as of 31 May 2022 from RM 5,885,000, a decline of 10.1%[14] - As of May 31, 2022, net current assets decreased to RM 6,830,000 from RM 10,905,000 as of November 30, 2021, representing a decline of approximately 37.0%[15] - Total assets less current liabilities fell to RM 12,122,000 from RM 16,790,000, a decrease of about 27.8%[15] - Total equity decreased to RM 11,240,000 as of May 31, 2022, down from RM 15,785,000, reflecting a decline of about 28.8%[17] - Cash and cash equivalents at the end of the reporting period were RM 12,468,000, down from RM 16,586,000, marking a decrease of approximately 24.5%[21] - Trade receivables from third parties decreased to RM2,664,000 as of May 31, 2022, down from RM8,808,000 as of November 30, 2021, representing a decline of approximately 70.4%[94] - Cash at banks and in hand decreased to RM4,560,000 as of May 31, 2022, compared to RM7,181,000 as of November 30, 2021, a decline of approximately 36.0%[107] - Total bank balances and cash decreased to RM12,468,000 as of May 31, 2022, down from RM15,089,000 as of November 30, 2021, a decrease of about 17.3%[107] - Trade payables from third parties decreased to RM4,044,000 as of May 31, 2022, down from RM8,196,000 as of November 30, 2021, a reduction of approximately 50.7%[111] Revenue Segments - For the six months ended 31 May 2022, the total revenue from reportable segments was RM 7,036,000, with system integration and development services contributing RM 6,015,000, IT outsourcing services RM 765,000, and maintenance and consultancy services RM 256,000[49] - Revenue from external customers for the six months ended 31 May 2022 was RM 7,036,000, an increase of 26.3% compared to RM 5,571,000 for the same period in 2021[56] - The reportable segment results for the six months ended 31 May 2022 totaled RM 1,753,000, compared to RM 1,483,000 for the same period in 2021, reflecting a growth of 18.2%[51] - The company recognized revenue of RM 6,015,000 from system integration and development services for the six months ended 31 May 2022, up from RM 3,695,000 in the previous year, marking a 62.8% increase[61] - IT outsourcing services generated revenue of RM 765,000 for the six months ended 31 May 2022, down 48.7% from RM 1,483,000 in the same period of 2021[61] - Revenue from maintenance and consultancy services decreased by approximately 34.9% to approximately RM256,000 for the six months ended 31 May 2022, mainly due to the completion or scale down of several maintenance projects[136] Expenses and Costs - Administrative expenses increased to RM 5,808,000 for the six months ended 31 May 2022, up 37.0% from RM 4,244,000 in the same period of 2021[11] - The Group's amortization for the six months ended 31 May 2022 was RM 2,368,000, and the addition of intangible assets was RM 2,072,000[49] - Amortization of intangible assets increased to RM 2,368,000 for the six months ended 31 May 2022, compared to RM 1,152,000 in the same period of 2021, representing a 106.3% increase[68] - The company incurred interest expenses of RM 53,000 for the six months ended May 31, 2022, compared to RM 38,000 in the same period of 2021, reflecting an increase of about 39.5%[21] - The finance costs increased by approximately 39.5% to approximately RM53,000 for the six months ended 31 May 2022, compared to RM38,000 in 2021[143] Market and Strategic Focus - The company has been engaged in system integration and development services, IT outsourcing services, and maintenance and consultancy services, indicating a focus on expanding its service offerings[23] - The Group aims to expand its market presence in Malaysia, with a focus on enhancing its IT outsourcing services and system integration capabilities[55] - The Group focuses on enterprise banking and government agencies due to their consistent demand for information communication technology services[177] - The Group aims to be a major IT solution provider for digitalization in Malaysia and capture new growth opportunities through Square Intelligence[179] - The Group plans to expand into the Small and Medium Enterprises (SMEs) market by introducing digital solutions tailored for the retail industry[200] - The first solution aimed at SMEs will facilitate a digital ordering process to enhance productivity while complying with COVID-19 restrictions[200] COVID-19 Impact - The prolonged COVID-19 pandemic has led to customers delaying key information technology purchasing decisions, adversely affecting financial results[170] - The ongoing COVID-19 pandemic has led to temporary office closures and project delays, adversely impacting financial performance[171] - Significant deals that were deferred due to the pandemic are now being discussed and negotiated[175] - The Group is actively adjusting business plans and enhancing products to generate sustainable cash inflow amid the pandemic[199] Regulatory and Compliance - The financial statements were prepared in accordance with International Accounting Standards (IAS) 34 and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules[30] - The accounting policies applied in the preparation of the Interim Financial Statements are consistent with those used in the 2021 Financial Statements, with no significant effects from the adoption of new/revised IFRSs[35] - The Interim Financial Statements do not include all information required for a full set of financial statements as per International Financial Reporting Standards (IFRSs)[30] - The Group has not early adopted new/revised IFRSs that have been issued but are not yet effective, and no material impact is anticipated from future adoptions[36] Future Plans and Developments - The Group has secured a major system transformation contract with the Central Bank of Malaysia, currently in the requirement gathering stage[182] - The advanced version of the mobile payment application, Blackbutton 2.0, has been completed and is ready for market launch[183] - The Group is evaluating potential acquisitions or development of 4 new major intellectual properties to enhance Square Intelligence and CUSTPRO compatibility[185] - Due diligence on a potential acquisition of a company with the Taraf Bumiputra MOF license was conducted, but results were unsatisfactory, leading to the halt of negotiations[192] - The next Malaysian general election is expected in Q4 2022, causing the Group to temporarily pause acquisition plans and monitor new government policies[192][194] - The Malaysian IT industry is anticipated to remain challenging and competitive in the coming years due to the economic impact of the COVID-19 pandemic[193][194]

Financial Performance - Revenue for the three months ended 28 February 2022 was RM 4,460,000, representing a 142.5% increase compared to RM 1,842,000 for the same period in 2021[10] - Gross profit for the period was RM 571,000, a decrease of 13.1% from RM 657,000 in the previous year[10] - Loss before income tax for the period was RM 2,236,000, compared to a loss of RM 1,111,000 in the same period last year, indicating an increase in loss of 100.1%[10] - Total comprehensive loss for the period was RM 2,236,000, which is double the loss of RM 1,111,000 reported in the previous year[11] - Basic and diluted loss per share for the period was RM 0.57, compared to RM 0.28 for the same period in 2021, reflecting an increase of 103.6%[11] - Administrative expenses increased to RM 2,789,000, up 56.5% from RM 1,783,000 in the previous year[10] - The company reported other income of RM 6,000, down 81.8% from RM 33,000 in the previous year[10] - The accumulated losses increased to RM 21,862,000 as of 28 February 2022, compared to RM 19,626,000 at the end of the previous reporting period[13] Revenue Breakdown - For the three months ended February 28, 2022, the total revenue from reportable segments was RM 4,460,000, with system integration and development services contributing RM 3,952,000[36] - Revenue from system integration and development services was RM 3,952,000, a significant increase from RM 941,000 in the previous year, representing a growth of 320%[43] - IT outsourcing services revenue decreased to RM 363,000, down 48% from RM 702,000 in the same period of 2021[43] - Maintenance and consultancy services revenue decreased to RM 145,000, down 27% from RM 199,000 in the same period of 2021[43] Operating Expenses - The group incurred amortization expenses of RM 1,137,000 during the first quarter of 2022[37] - Amortization of intangible assets increased to RM 1,137,000, up from RM 496,000 in the same period of 2021[52] - Finance costs increased to RM 24,000, up from RM 18,000 in the same period of 2021[49] - Administrative expenses increased by approximately 56.4% to approximately RM2.8 million for the three months ended 28 February 2022, up from approximately RM1.8 million in 2021[89] Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and CEO[159] - The Board believes that the current arrangement of having the same individual as both chairman and CEO is in the best interest of the company and shareholders[163] - The Board confirmed no material change in the business as set out in the Prospectus, indicating stability in operations[154] Market and Strategic Focus - The Group aims to be a major IT solution provider for digitalization in Malaysia and has recruited 12 additional IT specialists since the listing[110] - The Group plans to capture new growth opportunities through its successful product, Square Intelligence, and target the Small and Medium Enterprises market segment[109] - The Group will continue to focus on providing pay-per-use or leasing commercial models to ease customers' financial burdens and secure long-term contracts[104] - The Group is monitoring the COVID-19 pandemic's development to ensure employee safety and stable operations, adjusting measures as necessary[106] - Significant deals that were deferred are now being discussed and negotiated, indicating a potential recovery in the market[105] Shareholder Information - Directors and chief executives held a total of 196,560,000 shares, representing approximately 50.4% of the Company's issued share capital[181] - Mr. Chong Yee Ping and Mr. Siah Jiin Shyang are deemed to be interested in 196,560,000 shares held by their respective controlled corporations[183] - Mr. Liu Yan Chee James held 57,720,000 shares, representing 14.8% of the Company's issued share capital[181] - Mr. Lam Pang held 38,220,000 shares, representing 9.8% of the Company's issued share capital[181] Future Plans and Investments - Approximately RM18.3 million (60% of net proceeds) is allocated for purchasing hardware and equipment to establish IT infrastructure for cloud services[145] - The Group plans to develop a digital ordering process for SMEs, with a blueprint expected to be completed by Q2 2022[134] - The Group intends to introduce cashless payment features to enhance operational efficiency for SMEs[136] - The Group is exploring partnerships with technology firms in China to diversify service offerings in Malaysia[135] Compliance and Regulations - The Group did not recommend the payment of an interim dividend for the three months ended 28 February 2022, consistent with the previous year[70] - The Group has not early adopted any new/revised IFRSs that are not yet effective, and no material impact is anticipated from future adoptions[24] - The Group's place of domicile is Malaysia, where central management and control is located[33]

Operations and Business Environment - The Group's operations are primarily located in Malaysia, providing system integration and IT-related services since 2006[19]. - The COVID-19 pandemic created a challenging economic environment, impacting project negotiations and delaying existing projects[20]. - The implementation of nationwide Movement Control Order (MCO) in Malaysia adversely affected business operations[20]. - The ongoing COVID-19 pandemic has significantly impacted operations, leading to project delays and a slowdown in customer purchasing decisions[70][71]. - The Group is actively pursuing new projects and investments to enhance its business performance and maintain operational stability amid ongoing challenges[23][25]. Financial Performance - For the year ended November 30, 2021, the Group recorded a total revenue increase of approximately 71.6% to approximately RM17.2 million, up from RM10.0 million in 2020[31]. - Revenue from system integration and development services increased by approximately 67.2% to approximately RM13.5 million for the year ended November 30, 2021, compared to RM8.1 million in 2020[33]. - Revenue from IT outsourcing services surged approximately 163.9% to approximately RM2.9 million for the year ended November 30, 2021, up from RM1.1 million in 2020[38]. - The Group's gross profit increased from approximately RM1.5 million in 2020 to approximately RM2.7 million in 2021, with a gross profit margin rising from approximately 14.9% to approximately 15.7%[44][45]. - Administrative expenses decreased by approximately 7.3% to approximately RM9.1 million for the year ended November 30, 2021, down from RM9.8 million in 2020[46]. - Finance costs decreased by approximately 13.3% to approximately RM72,000 for the year ended November 30, 2021, compared to RM83,000 in 2020[47]. - The Group recorded a loss of approximately RM6.3 million for the year ended November 30, 2021, an improvement from a loss of approximately RM11.2 million in 2020[49]. Strategic Initiatives - The Group aims to strengthen its core business by seeking appropriate investment opportunities[20]. - The Group plans to leverage business networks of Pre-IPO Investors to introduce IT products from the PRC into Malaysia and diversify service offerings[25][27]. - The Group aims to be a major IT solution provider for digitalization in Malaysia and to capture new growth opportunities through its successful product, Square Intelligence[25][27]. - The Group is focused on capturing new growth opportunities in the Small and Medium Enterprises segment as part of its future business strategy[80]. - The Group is actively participating in digital transformation tenders initiated by the Malaysian Government and government-linked companies[81]. Product Development and Innovation - The Group's product, Square Intelligence, has been successful since its introduction, with ongoing development of advanced features incorporating machine learning capabilities for data extraction from unstructured sources[94]. - The advanced version of Square Intelligence, which includes machine learning capabilities to extract data from unstructured sources, has been completed and launched during the year[96][97]. - The Group has developed the advanced version of its mobile payment application, Blackbutton 2.0, which is ready for market launch[85]. - The Group is exploring the feasibility of entering the Small and Medium Enterprises (SMEs) market by developing digital solutions, with a blueprint expected to be completed by Q2 2022[99][101]. - The first solution to be developed will enable businesses to operate a digital ordering process, with plans to incorporate a cashless payment feature[133]. Risk Management - The Group has identified principal risk factors, including dependency on major customers and project-based contracts, which may affect future revenue streams[109][110]. - The Group continues to enhance its product and service offerings and implement marketing activities to secure new contracts and attract potential customers[111]. - The Group's collection progress on overdue trade receivables has been consistent despite pandemic-related challenges[115][116]. Human Resources and Employee Welfare - The Group is committed to enhancing employee knowledge and service quality through training programs[139]. - The Group participates in a mandatory provident fund scheme in Hong Kong, contributing 5% of employees' relevant income, capped at HK$30,000 per month[143]. - The Group contributed approximately RM629,000 to the retirement benefit schemes for the year ended 30 November 2021, compared to RM602,000 in 2020, reflecting an increase of about 4.5%[145]. - The Group is required to contribute a certain percentage (6%-13%) of payroll costs to the Employees Provident Fund (EPF) in Malaysia, fulfilling statutory requirements[144]. - The Group's only obligation regarding the retirement benefit scheme is to make the specified contributions, with no forfeited contributions available to reduce existing levels[145]. Management and Governance - Mr. Chong, the founder and CEO, has been instrumental in developing the Group's self-developed IT products, NS3 and CUSTPRO[149]. - Mr. Liu has over 25 years of experience in finance and accounting, currently serving as an executive director and CEO of Asia Resources Holdings Limited since April 2017[155]. - Mr. Siah, a non-executive director, has experience in business intelligence and data warehousing, having founded CSS MSC Sdn. Bhd. in 2005[162]. - Mr. Chan is the chairman of the remuneration committee and a member of the audit committee and nomination committee[174]. - Mr. Su is the chairman of the nomination committee and a member of the remuneration committee and audit committee[179].

Financial Performance - Revenue for the three months ended August 31, 2021, was RM 2,652,000, a decrease of 2.2% compared to RM 2,712,000 in the same period of 2020[13]. - Gross profit for the three months ended August 31, 2021, was RM 1,171,000, significantly up from RM 97,000 in the same period of 2020, representing a gross profit margin increase[13]. - Loss before income tax for the three months ended August 31, 2021, was RM 2,651,000, compared to RM 1,923,000 in the same period of 2020, indicating a 38% increase in losses[13]. - Total comprehensive loss for the nine months ended August 31, 2021, was RM 5,498,000, a decrease from RM 6,296,000 in the same period of 2020, showing a 12.7% improvement[16]. - Loss per share for the three months ended August 31, 2021, was RM 0.72, compared to RM 0.49 in the same period of 2020, indicating a 46.9% increase in loss per share[16]. - The company reported a total accumulated loss of RM 18,838,000 as of August 31, 2021, compared to RM 8,463,000 as of August 31, 2020[19]. - Revenue for the nine months ended 31 August 2021 was RM 8,223,000, an increase of 28.8% compared to RM 6,393,000 for the same period in 2020[48]. - Reportable segment results for the nine months ended 31 August 2021 were RM 2,924,000, significantly up from RM 722,000 in the previous year, representing a growth of 304.2%[54]. - The company reported a loss before income tax of RM 5,341,000 for the nine months ended 31 August 2021, a reduction in loss compared to RM 6,296,000 for the same period in 2020[54]. - The Group recorded a loss of approximately RM 5.5 million for the nine months ended 31 August 2021, a decrease from approximately RM 6.3 million in 2020[117]. Administrative and Other Expenses - Administrative expenses for the three months ended August 31, 2021, increased to RM 3,838,000 from RM 2,041,000 in the same period of 2020, reflecting an increase of 88%[13]. - The company reported administrative expenses of RM 8,282,000 for the nine months ended 31 August 2021, an increase from RM 7,110,000 in 2020, indicating a rise of 16.5%[54]. - Amortization expenses for the nine months ended 31 August 2021 were RM 1,808,000, compared to RM 1,317,000 in the previous year, indicating an increase of 37.2%[54]. - The impairment loss on trade receivables significantly increased to RM1,562,000 for the three months ended 31 August 2021, compared to RM 98,000 in the same period of 2020, reflecting a 1500% increase[69]. - Other income for the three months ended August 31, 2021, was RM 30,000, slightly down from RM 33,000 in the same period of 2020[13]. - Other income for the nine months ended 31 August 2021 was RM 69,000, down from RM 139,000 in the previous year, representing a decline of 50.4%[65]. Taxation - The current tax expense for the period was RM138,000, with the Malaysia corporate income tax rate remaining at 24%[72]. - The company’s entities established in the Cayman Islands and the British Virgin Islands are exempt from income tax, while Mixsol Sdn. Bhd. is subject to Malaysia CIT after the expiration of its pioneer status on 30 June 2021[75][79]. - Income tax expenses increased to approximately RM 138,000 for the nine months ended August 31, 2021, compared to nil in 2020[116]. - Income tax expenses increased to approximately MYR 138,000 for the nine months ended August 31, 2021, compared to none in 2020, primarily due to profits recorded by two subsidiaries in Malaysia[119]. Business Operations and Strategy - The company is primarily engaged in investment holding and provides system integration and development services, IT outsourcing services, and maintenance and consultancy services[22]. - The Group's reportable segments include system integration and development services, IT outsourcing services, and maintenance and consultancy services[41]. - The Group continues to explore new strategies for market expansion and product development to improve financial performance moving forward[70]. - The Group's future strategy includes becoming a major IT solutions provider for digitalization in Malaysia and capturing new growth opportunities through its product, Square Intelligence[136]. - The Group is developing an advanced version of its mobile payment application, Blackbutton, to localize mobile payment products in Malaysia[142]. - The Group is participating in several digital transformation tenders initiated by the Malaysian Government or Government-linked Companies (GLCs)[141]. - The Group has implemented various flexible working arrangements and precautionary measures to mitigate the impact of the COVID-19 pandemic on operations[131]. - The Group's operations have faced significant disruptions due to COVID-19, including temporary office closures and project delays[127]. - The Group is evaluating potential acquisitions or development of 4 new major intellectual properties to enhance the features of Square Intelligence (NS3) and the customer relationship management system (CUSTPRO)[146][149]. Market and Economic Environment - The Malaysian Government plans to invest RM 15 billion over 10 years for the implementation of a 5G network, aiming to transform Malaysia into a digital-driven, high-income nation[141]. - The Malaysian Government targets to migrate 80% of public data to hybrid cloud systems by the end of 2022[141]. - The Group anticipates that the information technology industry in Malaysia will remain challenging and competitive in the coming years due to the economic impact of the COVID-19 pandemic[154][156]. Financial Management and Proceeds - The net proceeds from the share offer were approximately RM30.5 million (equivalent to approximately HK$58.6 million)[176]. - The total intended use of proceeds was RM30.50 million, with RM19.40 million already utilised, leaving a balance of RM11.10 million as of August 31, 2021[186]. - The company reported unutilised net proceeds of approximately RM11 million, which were reallocated to general working capital, including staff costs of RM7.6 million, professional fees of RM1.5 million, finance costs of RM0.1 million, and other expenses of RM1.8 million[191]. - The Board resolved to change the use of unutilized net proceeds of approximately RM17.28 million for R&D and IT business acquisitions[180]. - The company plans to strengthen its technical team by recruiting more IT specialists, with an allocation of RM3.05 million for this purpose[186]. - An amount of RM18.30 million was allocated for the purchase of hardware and equipment to establish IT infrastructure for cloud storage and computing services[186]. - RM6.10 million was designated for research and development of advanced and adapted versions of existing IT products, with an adjusted amount of RM9.38 million as of December 31, 2021[186]. - The company has allocated RM3.00 million for the acquisition of IT business, with a timeline set for December 31, 2021[186]. Governance and Compliance - The company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and the chief executive officer, which the Board believes is in the best interest of the Group[192].

Financial Performance - Revenue for the three months ended May 31, 2021, was RM 3,729,000, representing a 164% increase from RM 1,411,000 in the same period of 2020[14]. - Gross profit for the six months ended May 31, 2021, was RM 1,753,000, up from RM 625,000 in the same period of 2020, indicating a 180% increase[14]. - Loss before income tax for the three months ended May 31, 2021, was RM 1,579,000, an improvement from a loss of RM 2,823,000 in the same period of 2020[14]. - Total comprehensive loss for the six months ended May 31, 2021, was RM 2,709,000, compared to RM 4,373,000 in the same period of 2020, reflecting a 38% reduction in losses[17]. - The loss per share for the six months ended May 31, 2021, was RM 0.69, compared to RM 1.12 for the same period in 2020[17]. - The company reported a loss before income tax of RM 2,690,000 for the six months ended May 31, 2021, compared to a loss of RM 4,373,000 for the same period in 2020, indicating an improvement of approximately 38.5%[28]. - The company incurred a loss before income tax of RM 2,690,000 for the six months ended May 31, 2021, compared to a loss of RM 4,373,000 for the same period in 2020, indicating a reduction in losses by 38.5%[66]. - For the three months ended 31 May 2021, the company reported a loss attributable to owners of RM1,579,000, compared to a loss of RM2,823,000 in the same period of 2020, representing a 44% improvement[99]. - For the six months ended 31 May 2021, the loss attributable to owners was RM2,690,000, down from RM4,373,000 in 2020, indicating a 38% reduction in losses[99]. Revenue Breakdown - Revenue from external customers for the six months ended May 31, 2021, was RM 5,571,000, an increase of 51.2% compared to RM 3,681,000 for the same period in 2020[73]. - Revenue growth was primarily driven by increases in system integration and development services, as well as IT outsourcing services[148]. - Revenue from IT outsourcing services for the six months ended May 31, 2021, was RM 1,483,000, a significant increase of 268.9% from RM 402,000 in 2020[78]. - Revenue from system integration and development services for the six months ended May 31, 2021, was RM 3,695,000, up from RM 2,903,000 in the previous year, reflecting a growth of 27.4%[78]. - The geographical revenue breakdown shows that Malaysia contributed RM 5,556,000 and Singapore contributed RM 15,000 for the six months ended May 31, 2021[73]. Assets and Liabilities - Non-current assets as of May 31, 2021, totaled RM 5,679,000, a decrease from RM 6,000,000 as of November 30, 2020[20]. - Current assets decreased to RM 23,044,000 as of May 31, 2021, from RM 26,875,000 as of November 30, 2020[20]. - Current liabilities decreased to RM 8,547,000 as of May 31, 2021, from RM 10,046,000 as of November 30, 2020[20]. - Total equity decreased from RM 22,074,000 as of November 30, 2020, to RM 19,365,000 as of May 31, 2021, reflecting a decrease of about 12.3%[23]. - Net current assets decreased from RM 16,829,000 as of November 30, 2020, to RM 14,497,000 as of May 31, 2021, representing a decline of approximately 13.9%[23]. - Cash and cash equivalents at the end of the reporting period decreased to RM 16,586,000 from RM 17,867,000, a decline of about 7.2%[33]. - Trade receivables from third parties amounted to RM5,489,000 as of 31 May 2021, a decrease from RM7,393,000 as of 30 November 2020, with a loss allowance of RM1,199,000[112][114]. - The Group's contract assets stood at RM519,000 and contract liabilities at RM(1,342,000) as of 31 May 2021, compared to RM166,000 and RM(2,144,000) respectively as of 30 November 2020[122]. - Interest-bearing borrowings remained stable at RM851,000 as of 31 May 2021, compared to RM853,000 as of 30 November 2020[137]. - The Group's total cash and cash equivalents decreased by approximately 12.1% from RM18,876,000 as of 30 November 2020 to RM16,586,000 as of 31 May 2021[127][128]. Expenses and Costs - Administrative expenses decreased to RM 4,444,000 for the six months ended May 31, 2021, from RM 5,069,000 in the previous year, a reduction of 12.3%[66]. - The company reported other income of RM 39,000 for the six months ended May 31, 2021, down from RM 106,000 in the same period of 2020[66]. - Amortization expenses for the six months ended May 31, 2021, were RM 1,152,000, compared to RM 784,000 in the previous year, indicating an increase of 47%[66]. - The amortization of intangible assets increased to RM656,000 for the three months ended 31 May 2021, up from RM392,000 in 2020, reflecting a 67% increase[87]. - The depreciation of property, plant, and equipment rose to RM109,000 for the three months ended 31 May 2021, compared to RM72,000 in the same period of 2020, marking a 51% increase[87]. - The company incurred finance costs of RM20,000 for the three months ended 31 May 2021, compared to RM15,000 in 2020, which is a 33% increase[87]. Strategic Focus and Operations - The Group's main business includes system integration and development services, IT outsourcing services, and maintenance and consultancy services[53]. - The Group is engaged in IT services, including system integration, IT outsourcing, and maintenance, indicating a strategic focus on technology solutions for corporate clients[147]. - The Group has actively pursued business strategies to become a major IT solutions provider in Malaysia, focusing on digitalization[198]. - Since the Listing, the Group has recruited 12 additional IT specialists to enhance its IT solutions capabilities[199]. - The Group plans to leverage pre-IPO investors' business networks to introduce IT products from the PRC into Malaysia[198]. Impact of COVID-19 - The Group experienced significant operational disruptions due to the COVID-19 pandemic, including temporary office closures and project delays[193]. - The Malaysian Government implemented various control orders, including a full lockdown from June 1 to June 28, 2021, affecting business operations[190]. - The Group has implemented precautionary measures to ensure employee safety and mitigate the impact of the COVID-19 pandemic[194]. - The Group is closely monitoring the pandemic's development to adjust its operational measures accordingly[197].

Financial Performance - For the three months ended February 28, 2021, the revenue was RM 1,842,000, a decrease of 19% compared to RM 2,270,000 for the same period in 2020[14]. - The gross profit for the period was RM 657,000, representing a 19.9% increase from RM 548,000 in the previous year[14]. - Administrative expenses decreased to RM 1,783,000, down 15% from RM 2,096,000 in the same period last year[14]. - The loss before income tax was RM 1,111,000, which is a 28.2% improvement compared to a loss of RM 1,549,000 in the prior year[14]. - The total comprehensive loss for the period was RM 1,111,000, compared to RM 1,549,000 for the same period in 2020[18]. - Loss per share for the period was RM 0.28, an improvement from RM 0.40 in the previous year[18]. - The Group recorded a loss of approximately RM1.1 million for the three months ended 28 February 2021, compared to a loss of approximately RM1.5 million for the three months ended 29 February 2020[106]. - The Group's loss attributable to owners for the period was RM1,111,000, compared to RM1,549,000 for the same period in 2020[73]. Revenue Breakdown - IT outsourcing services revenue increased significantly to RM 702,000, compared to RM 189,000 in the prior year, representing a growth of 271%[55]. - Revenue for IT outsourcing services increased by over 2.5 times from approximately RM189,000 for the three months ended 29 February 2020 to approximately RM702,000 for the three months ended 28 February 2021[94]. - Revenue for maintenance and consultancy services increased by approximately 32.7% from approximately RM150,000 for the three months ended 29 February 2020 to approximately RM199,000 for the three months ended 28 February 2021[95]. - Revenue from system integration and development services decreased by approximately 51.3% from RM1.9 million for the three months ended 29 February 2020 to RM0.9 million for the three months ended 28 February 2021[86]. - The decrease in revenue was primarily attributed to delays in project completion due to the COVID-19 pandemic and the implementation of the Movement Control Order by the Malaysian Government[86]. COVID-19 Impact - The COVID-19 pandemic and related control measures have caused significant disruptions, leading to project delays of approximately 10 months and a drop in revenue from system integration and development services by more than 50%[115]. - The Group has implemented numerous precautionary measures and flexible working arrangements to mitigate the adverse impact of the COVID-19 pandemic on its operations[116]. - The Malaysian Government's Proclamation of Emergency is expected to last until 1 August 2021, affecting customer investment in IT projects[93]. - The Board anticipates that customers will continue to implement smaller incremental projects rather than large-scale IT transformations throughout 2021[93]. - The COVID-19 pandemic has impacted the Group's operations, leading to delays in securing new projects and customer acquisition due to travel restrictions[142]. Equity and Financial Position - As of February 28, 2021, total equity stood at RM 20,963,000, down from RM 22,074,000 at the end of the previous reporting period[20]. - The Group has not early adopted new/revised IFRSs that have been issued but are not yet effective, and no material impact is anticipated from future adoptions[33]. - The Group's financial performance is assessed based on the types of goods or services delivered or provided[34]. - The preparation of the financial statements requires management to make judgments, estimates, and assumptions that may differ from actual results[28]. Future Business Strategy - The Group's future business strategy includes becoming a major IT solution provider for digitalization in Malaysia and diversifying service offerings[119]. - The Group is developing an advanced version of its mobile payment application, Blackbutton, to localize the product in Malaysia and integrate it with banking infrastructure[127]. - The Group is evaluating potential acquisitions or development of 4 new major intellectual properties to enhance the features of Square Intelligence and CUSTPRO[129]. - The Group has secured a contract with Bursa Malaysia to develop a CDS e-Services solution platform using its product, Square Intelligence[138]. - The Group plans to actively formulate alternative business plans and enhance product offerings to generate sustainable cash inflow[142]. Shareholder Information - Mr. Chong Yee Ping and Mr. Siah Jiin Shyang each hold interests in 196,560,000 shares, representing 50.4% of the Company's issued share capital[183]. - Mr. Liu Yan Chee holds 57,720,000 shares, representing 14.8% of the Company's issued share capital[183]. - Mr. Lam Pang holds 38,220,000 shares, representing 9.8% of the Company's issued share capital[183]. - Delicate Edge Limited and King Nordic Limited each hold 98,280,000 shares, representing 25.2% of the total issued share capital of the Company[184]. - As of February 28, 2021, there were no arrangements for directors or executives to acquire benefits through the acquisition of shares or debentures[188].

ANNUAL REPORT 年報 2020 MINDTELL TECHNOLOGY LIMITED ANNUAL REPORT 年報 2020 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful co ...