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].
九福来(08611) - 2021 - 中期财报