Revenue and Financial Performance - C-Link Squared Limited's primary revenue stream comes from outsourced document management services, including electronic document delivery and document imaging services[6]. - Total revenue for the six months ended June 30, 2022, was approximately RM59.2 million, an increase from RM45.4 million for the same period in 2021, representing a growth of approximately 30.5%[27]. - Revenue from outsourced services accounted for approximately 87.3% of total revenue, while the distribution and sales of medical equipment represented approximately 12.7%[27]. - Revenue from outsourced document management services decreased by approximately RM5.1 million or 11.7%, from RM43.3 million in 2021 to RM38.2 million in 2022[27]. - Revenue from outsourced insurance risk analysis and marketing services was RM10.9 million, representing approximately 18.5% of total revenue for the six months ended June 30, 2022, compared to nil in 2021[27]. - Revenue from enterprise software solutions increased by approximately RM0.5 million or 23.2%, from RM2.1 million in 2021 to RM2.6 million in 2022, representing approximately 4.3% of total revenue[30]. - The company reported a loss of approximately RM17,000 for the six months ended June 30, 2022, compared to a profit of approximately RM1.9 million for the six months ended June 30, 2021[41]. - The total comprehensive income for the period was RM 484,000, a significant decrease from RM 2,558,000 in the same period of 2021[60]. Operational Developments - The company has seen increased demand for its software as a service (SaaS) solutions, particularly from financial institutions in Malaysia, leading to a focus on its Streamline Suite[8]. - C-Link Squared Limited is upgrading its IT infrastructure and expanding its capacity to host services in a new tier 3 compliant data center in Malaysia[9]. - The new data center facility will enhance the Group's document hosting capabilities for electronic distribution and enterprise software solutions[9]. - The company plans to convert an existing building into a new data center to further expand its outsourced document management services and enterprise software solutions[14]. - The company is engaging external software development vendors to develop new applications within the Streamline Suite[14]. - The Group aims to develop advanced internet cloud technology and big data analysis to create an efficient service system for customers in the insurance industry in the PRC[22]. Market and Customer Relations - C-Link Squared Limited aims to maintain and strengthen relationships with existing customers while capturing new customers in Malaysia, Singapore, and the PRC[15]. - The company is pursuing strategic acquisitions and business opportunities to enhance market presence and capture further market share[15]. - The company aims to optimize IT document management for its clients through proprietary software solutions developed by experienced IT engineers[7]. Financial Position and Cash Flow - As of June 30, 2022, total loans and borrowings amounted to approximately RM14.7 million, a decrease of RM1.5 million or 9.3% compared to RM16.2 million as of December 31, 2021[43]. - The Group's current ratio was around 5.4 times as of June 30, 2022, compared to approximately 5.3 times as of December 31, 2021[43]. - The Group's cash and bank balances were approximately RM50.2 million as of June 30, 2022, down from RM66.3 million as of December 31, 2021[43]. - The gearing ratio was approximately 16.6% as of June 30, 2022, down from approximately 18.4% as of December 31, 2021, due to a decrease in interest-bearing bank loans[44]. - The Group maintained a solid financial position and was in a net cash position as of June 30, 2022[43]. - The Group's working capital requirements were mainly financed by internal resources during the reporting period[43]. - The company reported cash and bank balances of RM 11,563 thousand as of June 30, 2022, an increase from RM 10,394 thousand in 2021[65]. Costs and Expenses - Cost of sales increased by approximately RM13.4 million or 38.1%, from RM35.2 million in 2021 to RM48.6 million in 2022[33]. - Administrative expenses increased by approximately RM3.3 million or 49.7% from RM6.6 million for the six months ended June 30, 2021, to RM9.9 million for the six months ended June 30, 2022, mainly due to increased staff costs and research and development costs[39]. - Profit before tax amounted to approximately RM1.3 million for the six months ended June 30, 2022, a decrease from RM3.7 million for the six months ended June 30, 2021, primarily due to increased administrative expenses[41]. Strategic Investments and Acquisitions - The Group has invested approximately RM6.2 million (equivalent to approximately HK$12.0 million) from internal resources for the design and project management of the Data Centre since 2020[18]. - The Group acquired a building in Malaysia for the Data Centre at a consideration of RM12.0 million (approximately HK$22.3 million), with RM10.3 million (approximately HK$19.5 million) funded from the proceeds of the Company's share offer[18]. - The company plans to acquire a building in Malaysia for RM 12 million (approximately HK$22.27 million) to convert it into a data center, expected to be completed by December 2023[54]. Compliance and Governance - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors during the six months ended June 30, 2022[122]. - The Audit Committee reviewed the interim financial information for the six months ended June 30, 2022, and found it compliant with relevant accounting standards[131]. - The company has five independent non-executive directors on the board to ensure a balance of powers and authorities[128].
C-Link SQ(01463) - 2022 - 中期财报