Company Overview - C-Link Squared Limited is a Malaysian-based outsourced document management services provider, offering services such as electronic document delivery and document imaging[8]. - The company has developed proprietary software applications since around 2005, focusing on digital transformation and providing outsourced services for various industries[9]. - The outsourced document management services industry has rapidly evolved with internet technology, prompting the company to continuously update its service offerings under the Streamline Suite applications[10]. Financial Performance - Total revenue for the six months ended June 30, 2020, was approximately RM37.7 million, compared to RM37.1 million for the same period in 2019, reflecting a growth of 1.6%[20]. - Revenue from outsourced document management services increased by approximately RM3.4 million or 10.3%, from RM33.0 million for the six months ended 30 June 2019 to RM36.4 million for the six months ended 30 June 2020[23]. - Revenue from enterprise software solutions decreased by approximately RM2.8 million or 67.5%, from RM4.1 million for the six months ended 30 June 2019 to RM1.3 million for the six months ended 30 June 2020[23]. - Gross profit decreased by approximately RM5.6 million or 37.1%, from RM15.1 million for the six months ended 30 June 2019 to RM9.5 million for the six months ended 30 June 2020[24]. - The loss before tax amounted to approximately RM0.9 million for the six months ended 30 June 2020, compared to a profit before tax of approximately RM9.5 million for the same period in 2019, primarily due to a decrease in gross profit and an increase in administrative expenses[27]. - The loss for the period amounted to approximately RM2.4 million for the six months ended 30 June 2020, compared to a profit of approximately RM6.5 million for the same period in 2019, mainly due to the decrease in gross profit and increased administrative expenses[27]. Operational Developments - The Group allocated approximately RM6.6 million from internal resources for the design and project management of a new Tier 3 data center, which has been put on hold due to COVID-19[14]. - The Group plans to expand its data processing and technical capacity by building a new Tier 3 data center to enhance outsourced document management services and enterprise software solutions[16]. - The COVID-19 pandemic has delayed negotiations for land acquisition for the new data center, which could only commence in the second half of 2020[20]. - The Group is exploring appropriate strategic acquisitions and business opportunities to expand its market presence regionally[16]. Financial Position - Total loans and borrowings of the Group amounted to approximately RM20.0 million as at 30 June 2020, representing an increase of approximately RM3.6 million or 22.0% compared to RM16.4 million as at 31 December 2019[30]. - The Group maintained a current ratio of around 8.1 times as at 30 June 2020, compared to approximately 7.5 times as at 31 December 2019, indicating a solid financial position[30]. - As of June 30, 2020, the Group's gearing ratio was approximately 23.4%, down from 34.1% as of December 31, 2019, due to an increase in total equity from the Share Offer[32]. - The total equity as of June 30, 2020, was RM 85,507,000, with retained earnings of RM 27,785,000[53]. Share Capital and Dividends - The Group issued a total of 200,000,000 shares at HK$0.63 each, raising net proceeds of approximately HK$73.7 million after deducting related expenses[41]. - The Group did not recommend the distribution of any interim dividend for the six months ended June 30, 2020, consistent with the previous year[27]. - The company declared a special tax-exempt dividend of RM13,000,000 on March 12, 2020, equivalent to RM65,000 per share[81]. Employee and Management Information - As of June 30, 2020, the Group had approximately 176 employees, an increase from 171 employees in the same period in 2019[34]. - Key management personnel remuneration for the six months ended June 30, 2020, totaled RM1,540,000, compared to RM1,156,000 for the same period in 2019[98]. Customer Base - The Group's revenue from external customers for the six months ended 30 June 2020 was RM 37,600,000, with a total revenue contribution from the top 5 customer groups amounting to RM 26,941,000, representing 71.5% of total revenue[60]. - Major customers included Bank Group A with RM 8,439,000 (22.4%), Bank Group B with RM 6,743,000 (17.9%), and Bank Group C with RM 4,309,000 (11.4%) for the six months ended 30 June 2020[60]. Compliance and Governance - The company has complied with all applicable Code Provisions of the Corporate Governance Code since the Listing Date up to June 30, 2020, except for the separation of roles between chairman and CEO[118][119]. - The Audit Committee reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2020, and found it compliant with relevant accounting policies[120].
C-LINK SQ-NEW(01463) - 2020 - 中期财报