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]
安科系统(08353) - 2021 Q1 - 季度财报