Financial Performance - Revenue for 2020 was RM 76,719,000, representing a 7.3% increase from RM 71,526,000 in 2019[3] - Gross profit decreased by 35.2% to RM 19,185,000 from RM 29,622,000 in 2019[3] - Profit before tax fell significantly by 96.3% to RM 704,000 compared to RM 19,015,000 in the previous year[3] - The company reported a loss for the year of RM 5,065,000, a decline of 138.8% from a profit of RM 13,053,000 in 2019[3] - Basic and diluted loss per share was RM 0.67, down 130.7% from earnings of RM 2.18 per share in 2019[3] - Total revenue for the years ended December 31, 2019, and December 31, 2020, was approximately RM71.5 million and RM76.7 million, respectively, primarily from outsourced document management services and enterprise software solutions[42] - Revenue from outsourced document management services represented approximately 90.2% and 97.0% of total revenue for the years ended December 31, 2019, and December 31, 2020, respectively, with an increase of RM9.9 million or 15.4% from RM64.5 million to RM74.4 million[42] - Revenue from enterprise software solutions decreased by approximately RM4.8 million or 67.5% from RM7.0 million for the year ended December 31, 2019, to RM2.3 million for the year ended December 31, 2020[45] Assets and Equity - Total assets increased by 51.2% to RM 106,321,000 from RM 70,234,000 in 2019[4] - Shareholders' equity rose by 68.6% to RM 80,917,000 compared to RM 47,992,000 in 2019[4] Ratios and Financial Health - The current ratio decreased by 17.3% to 6.2 times from 7.5 times in 2019[4] - The gearing ratio improved to 22.8% from 34.1% in the previous year, a decrease of 11.3%[4] - Return on equity was reported at (6.3)%, a decline of 33.5% from 27.2% in 2019[4] Operational Challenges and Opportunities - The COVID-19 pandemic has created challenges but also opportunities for the Company to increase market share by providing superior services[26] - The Company anticipates a rapid shift in financial organizations towards omni-channel interactions and automation to enhance business processes post-COVID-19[26] - The management team is committed to aligning the Company's digital strategy with the urgent technological changes prompted by the COVID-19 crisis[26] - The Group's established and loyal customer base, along with proprietary technology, are key competitive advantages that distinguish it from competitors[17] Technology and Infrastructure Development - The Company aims to increase investment in technology to enhance its technology platform and achieve business goals following its successful listing on the Main Board of the Stock Exchange on March 27, 2020[16] - As of December 31, 2020, the Group allocated approximately RM6.2 million (equivalent to approximately HK$12.0 million) for the design and project management of a new Tier 3 data center[35] - The Group aims to enhance its document hosting capability and expand its outsourced document management services through the new Tier 3 data center in Cyberjaya, Malaysia[35] - The Group plans to expand its data processing and technical capacity by building the new Tier 3 data center and strengthening its technical operation support team[38] Market Strategy and Growth Plans - The Group intends to increase its market presence locally and regionally, focusing on maintaining relationships with existing customers and capturing new customers in Malaysia and Singapore[38] - The Group aims to pursue strategic acquisitions and business opportunities to enhance its market share[38] - The company anticipates that the acceleration of digitalization and automation in financial organizations will create opportunities in online healthcare, education, business, and financial SaaS post-COVID-19[43] Administrative and Operational Costs - Administrative expenses rose by approximately RM9.3 million or 90.2% from RM10.3 million in 2019 to RM19.5 million in 2020, attributed to listing expenses and increased administrative staff costs[51] - The significant increase in postage costs charged by the Malaysian national postal service provider was a primary factor for the rise in cost of sales[46] Employee and Management Information - The Group had approximately 171 employees as of December 31, 2020, down from 181 employees in the previous year[66] - The Company has a diverse senior management team, including Mr. F Ling and Mr. W Ling, with extensive experience in their respective fields[90] - The Company emphasizes compliance and governance through its experienced company secretary and board members[89] Compliance and Governance - The Company confirms compliance with disclosure requirements regarding related party transactions as per Chapter 14A of the Listing Rules[134] - The Board of Directors is committed to providing transparent and accurate financial reporting to stakeholders[92] Environmental and Social Responsibility - The Group is committed to environmental sustainability by promoting digital solutions and adopting sustainable printing options, such as using recycled paper and energy-efficient equipment[190] - The Group has implemented internal policies to reduce its carbon footprint, including energy-efficient lighting and automatic power shutdown systems[191] Shareholder Information - The Company declared a dividend of RM13.00 million on March 12, 2020, which was paid on March 14, 2020, with no final dividend recommended for the year ended December 31, 2020[103] - As of December 31, 2020, the Company's reserves available for distribution to shareholders amounted to approximately RM39.2 million, with no distributable reserves as of December 31, 2019[112]
C-LINK SQ-NEW(01463) - 2020 - 年度财报