Business Operations - The Group's operation is primarily located in Malaysia, providing system integration and computer-related services since 2006[22] - The Group has diversified its business to include general trading services related to IT and management consultancy services[22] - Customers include banks, financial institutions, government bodies, educational institutions, IT service firms, and small to medium enterprises[22] Financial Performance - The Group recorded a total revenue increase of approximately 17.0% to approximately RM14.2 million for the year ended 30 November 2024, compared to RM12.2 million in 2023[37] - Revenue growth was primarily driven by increases in system integration and development services, as well as maintenance and consultancy services, offset by a decrease in IT outsourcing services[37] - Revenue from system integration and development services increased by approximately 14.4% to RM12.9 million for the year ended 30 November 2024, up from RM11.3 million in 2023[41] - Revenue from IT outsourcing services decreased by approximately 66.8% to RM0.2 million for the year ended 30 November 2024, down from RM0.6 million in 2023[42] - Revenue from maintenance and consultancy services increased by approximately 281.7% to RM1.1 million for the year ended 30 November 2024, compared to RM0.3 million in 2023[43] - Gross profit increased from approximately RM2.6 million in 2023 to approximately RM4.1 million in 2024, with the gross profit margin rising from 21.7% to 28.8%[51] - Administrative expenses decreased by approximately 33.1% to RM5.4 million for the year ended 30 November 2024, down from RM8.1 million in 2023[52] - The Group recorded a loss of approximately RM1.1 million for the year ended 30 November 2024, a decrease from a loss of approximately RM5.4 million in 2023[55] Market Position and Strategy - The Group is actively bidding for substantial contracts to enhance customers' technology and digital infrastructure in FY2025, driven by technological advancements in the banking industry[23] - The focus on digital transformation and the integration of Artificial Intelligence (AI) into offerings is shaping the industry's future and enhancing the Group's value proposition[28] - The Group aims to strengthen its core business through appropriate investment opportunities and partnerships with software companies like IBM and Oracle[35] - The ongoing transformation and digitization in the financial services sector are key demand drivers that will significantly impact all major business lines[23] - The Group is well-positioned to navigate market uncertainties while delivering sustainable growth, particularly in the public financial services sector[29] - The Group plans to continue as a major technology service provider for the commercial and public financial services industries, noting reduced competition in the Malaysian market[78] Investment and Partnerships - The Group is committed to fostering partnerships and exploring potential acquisitions to broaden its product offerings[35] - The Group aims to promote new research and development solutions to explore new verticals and sectors through potential investment partners[79] - A successful collaboration with Oracle has led to a new contract, with ongoing projects focusing on compliance software in the anti-money laundering area[83] - The Group is actively seeking partnerships and potential acquisitions to enhance product offerings and stay ahead in AI technology advancements[84] Financial Health and Ratios - Total borrowings amounted to approximately RM1.7 million as of 30 November 2024, compared to RM1.6 million in 2023[62] - The gearing ratio increased to 64.5% as of 30 November 2024, up from 42.1% in 2023[63] - Net current assets decreased to approximately RM1.4 million as of 30 November 2024, down from approximately RM2.5 million in 2023[64] - The current ratio was approximately 1.2 times as of 30 November 2024, compared to approximately 1.4 times in 2023[64] - As of 30 November 2024, the Group's interest-bearing borrowings were secured by properties with a net carrying amount of approximately RM1.1 million, unchanged from 2023[75] - The Group's banking facilities on issuance of bank guarantees were backed by restricted bank balances of approximately RM156,000, down from RM384,000 in 2023[74] Human Resources and Staff Costs - Total staff costs and related expenses for the year ended 30 November 2024 were approximately RM8.0 million, a decrease from approximately RM8.6 million in 2023[90] - The Group's total contributions to retirement benefit schemes were approximately RM748,000 for the year ended 30 November 2024, compared to RM769,000 in 2023[94] - The group is required to contribute 5% of employees' relevant income to the Mandatory Provident Fund (MPF) plan in Hong Kong, with a monthly income cap of HKD 30,000[96] - In Malaysia, the group contributes between 6% to 13% of salary costs to the employee provident fund as per statutory requirements[96] - The group has no forfeited contributions available to reduce the current contribution levels to the MPF and provident fund plans as of the end of November 2024[96] Leadership and Governance - Mr. Chong Yee Ping, the founder and CEO, has been instrumental in developing the group's self-developed IT products, NS3 and CUSTPRO[99] - Mr. Siah Jiin Shyang, a non-executive director, has a background in business intelligence and data warehousing, having founded CSS MSC Sdn. Bhd. in 2005[104] - Mr. Lam Pang, a non-executive director, has around 30 years of experience in trading and property investment between the PRC and Hong Kong[112] - The company is focused on expanding its market presence by leveraging the expertise of its newly appointed directors[124][131] - The recent appointments of independent directors are expected to strengthen corporate governance and strategic direction[118][124][131] - The company emphasizes the importance of IT consultation and business software solutions in its operational strategy[145] - The company has a strong focus on corporate governance and financial management, as evidenced by Mr. Yeung's extensive background in these areas[153] Corporate Governance - The company has complied with the Corporate Governance Code (CG Code) for the year ended November 30, 2024, with exceptions noted[161] - The roles of chairman and chief executive officer are held by Mr. Chong Yee Ping, who has been responsible for overall management since the company's inception[162] - The Board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring diverse perspectives[171] - The company has adopted the required standard of dealings for directors' securities transactions as per GEM Listing Rules[168] - The Board is responsible for the leadership and control of the Group, overseeing strategic decisions and performance[172] - Daily management and operations are delegated to the management team, with functions reviewed by the Board[173] - The company emphasizes maintaining high levels of corporate governance and business ethics as a major objective[160] - The company has a strong focus on environmental, social, and governance (ESG) factors in its operations[172] Committees and Compliance - The Audit Committee, comprising three independent non-executive Directors, oversees the financial reporting process and risk management, reviewing results for the year ended November 30, 2024[189] - The Remuneration Committee will review the share option scheme annually starting from 2024, although no share options were granted in the year ended November 30, 2024[194] - The Company complies with GEM Listing Rules by appointing at least three independent non-executive Directors, ensuring one has relevant financial expertise[186] - The Nomination Committee is responsible for recommending candidates to fill board vacancies based on the Company's diversity and nomination policies[196] - All non-executive Directors are appointed for a fixed term of three years, subject to re-election at the annual general meeting[185] - The Company has received annual confirmations of independence from all independent non-executive Directors, affirming their compliance with independence guidelines[187] - The Audit Committee reviews the accounting standards and practices adopted by the Group, ensuring effective internal controls and risk management[189] - The Company’s governance structure includes a clear delineation of responsibilities among the Board, Audit Committee, Remuneration Committee, and Nomination Committee[188]
九福来(08611) - 2024 - 年度业绩