Financial Performance - Revenue for the three months ended August 31, 2021, was RM 2,652,000, a decrease of 2.2% compared to RM 2,712,000 in the same period of 2020[13]. - Gross profit for the three months ended August 31, 2021, was RM 1,171,000, significantly up from RM 97,000 in the same period of 2020, representing a gross profit margin increase[13]. - Loss before income tax for the three months ended August 31, 2021, was RM 2,651,000, compared to RM 1,923,000 in the same period of 2020, indicating a 38% increase in losses[13]. - Total comprehensive loss for the nine months ended August 31, 2021, was RM 5,498,000, a decrease from RM 6,296,000 in the same period of 2020, showing a 12.7% improvement[16]. - Loss per share for the three months ended August 31, 2021, was RM 0.72, compared to RM 0.49 in the same period of 2020, indicating a 46.9% increase in loss per share[16]. - The company reported a total accumulated loss of RM 18,838,000 as of August 31, 2021, compared to RM 8,463,000 as of August 31, 2020[19]. - Revenue for the nine months ended 31 August 2021 was RM 8,223,000, an increase of 28.8% compared to RM 6,393,000 for the same period in 2020[48]. - Reportable segment results for the nine months ended 31 August 2021 were RM 2,924,000, significantly up from RM 722,000 in the previous year, representing a growth of 304.2%[54]. - The company reported a loss before income tax of RM 5,341,000 for the nine months ended 31 August 2021, a reduction in loss compared to RM 6,296,000 for the same period in 2020[54]. - The Group recorded a loss of approximately RM 5.5 million for the nine months ended 31 August 2021, a decrease from approximately RM 6.3 million in 2020[117]. Administrative and Other Expenses - Administrative expenses for the three months ended August 31, 2021, increased to RM 3,838,000 from RM 2,041,000 in the same period of 2020, reflecting an increase of 88%[13]. - The company reported administrative expenses of RM 8,282,000 for the nine months ended 31 August 2021, an increase from RM 7,110,000 in 2020, indicating a rise of 16.5%[54]. - Amortization expenses for the nine months ended 31 August 2021 were RM 1,808,000, compared to RM 1,317,000 in the previous year, indicating an increase of 37.2%[54]. - The impairment loss on trade receivables significantly increased to RM1,562,000 for the three months ended 31 August 2021, compared to RM 98,000 in the same period of 2020, reflecting a 1500% increase[69]. - Other income for the three months ended August 31, 2021, was RM 30,000, slightly down from RM 33,000 in the same period of 2020[13]. - Other income for the nine months ended 31 August 2021 was RM 69,000, down from RM 139,000 in the previous year, representing a decline of 50.4%[65]. Taxation - The current tax expense for the period was RM138,000, with the Malaysia corporate income tax rate remaining at 24%[72]. - The company’s entities established in the Cayman Islands and the British Virgin Islands are exempt from income tax, while Mixsol Sdn. Bhd. is subject to Malaysia CIT after the expiration of its pioneer status on 30 June 2021[75][79]. - Income tax expenses increased to approximately RM 138,000 for the nine months ended August 31, 2021, compared to nil in 2020[116]. - Income tax expenses increased to approximately MYR 138,000 for the nine months ended August 31, 2021, compared to none in 2020, primarily due to profits recorded by two subsidiaries in Malaysia[119]. Business Operations and Strategy - The company is primarily engaged in investment holding and provides system integration and development services, IT outsourcing services, and maintenance and consultancy services[22]. - The Group's reportable segments include system integration and development services, IT outsourcing services, and maintenance and consultancy services[41]. - The Group continues to explore new strategies for market expansion and product development to improve financial performance moving forward[70]. - The Group's future strategy includes becoming a major IT solutions provider for digitalization in Malaysia and capturing new growth opportunities through its product, Square Intelligence[136]. - The Group is developing an advanced version of its mobile payment application, Blackbutton, to localize mobile payment products in Malaysia[142]. - The Group is participating in several digital transformation tenders initiated by the Malaysian Government or Government-linked Companies (GLCs)[141]. - The Group has implemented various flexible working arrangements and precautionary measures to mitigate the impact of the COVID-19 pandemic on operations[131]. - The Group's operations have faced significant disruptions due to COVID-19, including temporary office closures and project delays[127]. - The Group is evaluating potential acquisitions or development of 4 new major intellectual properties to enhance the features of Square Intelligence (NS3) and the customer relationship management system (CUSTPRO)[146][149]. Market and Economic Environment - The Malaysian Government plans to invest RM 15 billion over 10 years for the implementation of a 5G network, aiming to transform Malaysia into a digital-driven, high-income nation[141]. - The Malaysian Government targets to migrate 80% of public data to hybrid cloud systems by the end of 2022[141]. - The Group anticipates that the information technology industry in Malaysia will remain challenging and competitive in the coming years due to the economic impact of the COVID-19 pandemic[154][156]. Financial Management and Proceeds - The net proceeds from the share offer were approximately RM30.5 million (equivalent to approximately HK$58.6 million)[176]. - The total intended use of proceeds was RM30.50 million, with RM19.40 million already utilised, leaving a balance of RM11.10 million as of August 31, 2021[186]. - The company reported unutilised net proceeds of approximately RM11 million, which were reallocated to general working capital, including staff costs of RM7.6 million, professional fees of RM1.5 million, finance costs of RM0.1 million, and other expenses of RM1.8 million[191]. - The Board resolved to change the use of unutilized net proceeds of approximately RM17.28 million for R&D and IT business acquisitions[180]. - The company plans to strengthen its technical team by recruiting more IT specialists, with an allocation of RM3.05 million for this purpose[186]. - An amount of RM18.30 million was allocated for the purchase of hardware and equipment to establish IT infrastructure for cloud storage and computing services[186]. - RM6.10 million was designated for research and development of advanced and adapted versions of existing IT products, with an adjusted amount of RM9.38 million as of December 31, 2021[186]. - The company has allocated RM3.00 million for the acquisition of IT business, with a timeline set for December 31, 2021[186]. Governance and Compliance - The company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and the chief executive officer, which the Board believes is in the best interest of the Group[192].
九福来(08611) - 2021 Q3 - 季度财报