Business Operations and Strategy - The Group's operation is primarily located in Malaysia, providing system integration and IT-related services since 2006, with a focus on both private and public sectors [19] - The Group is actively bidding for new contracts to enhance business performance and is developing advanced versions of existing IT products to increase competitive advantage [20] - The Group aims to secure several substantial contracts in FY2025 to enhance customers' technology and digital infrastructure [20] - The Group is exploring appropriate investment opportunities to strengthen its core business [20] - The focus will be on executing business strategies and leveraging relative strengths [20] - The Group aims to strengthen its position as a major technology service provider in the commercial and public financial services sectors [32] - The Group plans to explore new verticals and industries through research and development and potential investment partnerships [32] - The Group emphasizes partnerships with software companies like IBM and Oracle to enhance its business capabilities [32] - The Group is looking to establish partnerships and potential acquisitions to broaden its product offerings [32] - Future plans include promoting new research and development solutions to explore untapped verticals and industries through potential investment partners [76] Financial Performance - The Group's total revenue increased by approximately 17.0% to approximately RM14.2 million for the year ended 30 November 2024, up from RM12.2 million in 2023 [34] - Revenue from system integration and development services rose by approximately 14.4% to RM12.9 million, primarily due to a new project contributing RM3.5 million [38] - IT outsourcing services revenue decreased by approximately 66.8% to RM0.2 million, attributed to staff allocation to internal projects [39] - Maintenance and consultancy services revenue surged by approximately 281.7% to RM1.1 million, driven by a new project and renewals of maintenance contracts [40] - Gross profit increased from approximately RM2.6 million in 2023 to approximately RM4.1 million in 2024, with gross profit margin rising from 21.7% to 28.8% [48] - 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 [49] - Finance costs decreased by approximately 13.1% to RM73,000 for the year ended 30 November 2024, compared to RM84,000 in 2023 [50] - The Group recorded a loss of approximately RM1.1 million for the year ended 30 November 2024, a decrease from RM5.4 million in 2023 [52] - Total borrowings amounted to approximately RM1.7 million as of 30 November 2024, compared to RM1.6 million in 2023, with a gearing ratio of 64.5% [60] - The Group's net current assets were approximately RM1.4 million as of 30 November 2024, down from RM2.5 million in 2023, with a current ratio of approximately 1.2 times [61] Technological Advancements - Significant technological advancements in the banking industry, including Artificial Intelligence, Blockchain, and Big Data, are driving transformation and digitization, impacting all major business lines [20] - The financial services industry is undergoing significant digital transformation, with a focus on modernizing core systems to enhance customer experience [25] - The Group is committed to integrating AI-driven solutions into its offerings, reflecting the industry's increasing focus on AI applications [25] - The company will focus on key research in fraud management, leveraging private cloud Artificial Intelligence to unlock new revenue opportunities [77] - A successful collaboration with Oracle has led to a new contract, with ongoing projects in anti-money laundering compliance software in Southeast Asia [80] Corporate Governance and Leadership - The company is committed to enhancing its corporate governance practices, as indicated by the appointment of experienced directors [115] - The company has a strong leadership team with diverse backgrounds in technology, finance, and property development [115] - The company aims to leverage its management's expertise to drive future growth and market expansion [128] - The strategic focus includes enhancing corporate governance and compliance through experienced board members [129] - The company has complied with the Corporate Governance Code (CG Code) during the year ended 30 November 2024, with some exceptions noted [158] - The company has a structured approach to corporate governance, ensuring responsibilities are clearly established [158] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, ensuring compliance for the year ending November 30, 2024, with noted deviations [160] - The Board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring diverse perspectives in decision-making [168] - The Audit Committee has direct access to the company's external auditors and independent professional advisers when necessary [159] - The company emphasizes high levels of corporate governance and business ethics as a major objective to maximize long-term interests [157] Human Resources and Staff Development - The company is investing in staff training, sales personnel hiring, and brand marketing to enhance its partnerships and market presence [80] - As of November 30, 2024, the total staff costs were approximately RM8.0 million, a decrease from RM8.6 million in 2023 [87] - The Group contributed approximately RM748,000 to retirement benefit schemes in 2024, slightly down from RM769,000 in 2023 [91] - The management team includes professionals with extensive backgrounds in various sectors, enhancing the company's operational capabilities [132] - The company has implemented a board diversity policy, with one female director among the six total directors [177] Investment and Future Growth - The company is actively pursuing real estate investment opportunities, as evidenced by Mr. Siah's acquisition of Commonarcs Sdn Bhd [102] - The company is expanding its focus on bio-dynamic oriented agricultural activities through Rivermains Sdn. Bhd. [103] - Mr. Siah has invested in Bellsnord Sdn Bhd, focusing on the development of the next generation digital core banking system, anticipating significant industrial transformation over the next 10 years [103] - The company has developed two proprietary IT products, NS3 and CUSTPRO, which are integral to its business strategy [98]
九福来(08611) - 2024 - 年度财报