Company Overview - C-Link Squared Limited is a Malaysia-based provider of outsourced document management services and related software applications[7]. - The company offers services including electronic document delivery, document print and mail fulfillment, and document imaging and scanning services[11]. - The company has developed proprietary software applications since around 2005, focusing on digital transformation and outsourced services for various industries[8]. - The outsourced document management services industry has rapidly evolved with internet technology, prompting the company to adapt its business model accordingly[9]. - The company is incorporated in the Cayman Islands and has its principal place of business in Malaysia[70]. Service Offerings - There is an increasing demand for the company's Streamline Electronic Document Warehouse (EDW) due to the global adoption of Software as a Service (SaaS) solutions[10]. - The Streamline EDW allows customers to host documents in the company's data center and access them over the internet[12]. - Most of the company's customers are financial institutions, necessitating that the Streamline EDW services be hosted in a Tier 3 data center[10]. - The company aims to enhance its service offerings under the Streamline Suite applications for more efficient document processing and electronic delivery[9]. - The company is positioned to benefit from the digitalization trend in the document management services industry[12]. Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately RM45.4 million, an increase from RM37.7 million for the same period in 2020, primarily from outsourced document management services and enterprise software solutions[22]. - Revenue from outsourced document management services represented approximately 95.4% of total revenue for the six months ended June 30, 2021, compared to 96.5% for the same period in 2020[23]. - Revenue from outsourced document management services increased by approximately RM6.9 million or 19.0% from RM36.4 million for the six months ended June 30, 2020, to RM43.3 million for the same period in 2021[23]. - Revenue from enterprise software solutions represented approximately 4.6% of total revenue for the six months ended June 30, 2021, up from 3.5% in 2020[25]. - Revenue from enterprise software solutions increased by approximately RM0.8 million or 55.7% from RM1.3 million for the six months ended June 30, 2020, to RM2.1 million for the same period in 2021[25]. Cost and Profitability - Cost of sales increased by approximately RM7.0 million or 25.0% from approximately RM28.2 million for the six months ended June 30, 2020, to approximately RM35.2 million for the six months ended June 30, 2021[29]. - Gross profit increased by approximately RM0.6 million or 6.3% to approximately RM10.1 million for the six months ended June 30, 2021, while gross profit margin decreased by approximately 3.0% to approximately 22.3%[30]. - Profit before tax amounted to approximately RM3.7 million for the six months ended June 30, 2021, compared to a loss before tax of approximately RM0.9 million for the same period in 2020[35]. - Profit for the period amounted to approximately RM1.9 million for the six months ended June 30, 2021, compared to a loss of approximately RM2.4 million for the same period in 2020[37]. Cash Flow and Liquidity - Net cash flows generated from operating activities for the six months ended June 30, 2021, were RM3,720,000, compared to a net cash outflow of RM22,911,000 in the same period of 2020[68]. - Cash and cash equivalents at the end of the period were RM27,253,000, slightly up from RM27,086,000 at the end of the same period in 2020[69]. - The Group's cash and bank balances were approximately RM46.8 million as of June 30, 2021, an increase from approximately RM40.8 million as of December 31, 2020[38]. - The current ratio was around 7.3 times as of June 30, 2021, up from approximately 6.2 times as of December 31, 2020[42]. Strategic Initiatives - The Group aims to expand its data processing and technical capacity by building a new Tier 3 data center and enhancing its outsourced document management services[14]. - The Group plans to strengthen its technical operation support team and expand its research and development team for new applications within its Streamline Suite[14]. - The Group intends to pursue strategic acquisitions and business opportunities to expand its market presence locally and regionally[14]. - The Group plans to allocate 7.8% of the net proceeds, approximately HK$5.7 million, for potential strategic acquisitions and business opportunities[59]. Shareholder Information - The total number of shares issued as of June 30, 2021, was 800,000,000[102]. - The company has an authorized share capital of 1,500,000,000 ordinary shares with a par value of HK$0.01, unchanged from December 31, 2020[95]. - The weighted average number of ordinary shares in issue during the period was 800,000,000, an increase from 704,395,604 ordinary shares in the previous year[90]. - Jupiter Rain Company Limited holds 240,000,000 shares, representing 30% of the total 800,000,000 shares issued as of June 30, 2021[110]. Governance and Compliance - The company has complied with all applicable Code Provisions of the Corporate Governance Code since the Listing Date up to June 30, 2021, except for the separation of roles between chairman and chief executive[113]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2021, and found it compliant with relevant accounting standards[116]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance since the listing date up to June 30, 2021[109].
C-LINK SQ-NEW(01463) - 2021 - 中期财报