Revenue Performance - Revenue for Q1 2023 reached 4,648,290 SGD, representing a 2.2% increase compared to 4,547,604 SGD in the same period last year[12]. - Total revenue for the three months ended August 31, 2022, was S$4,648,290, compared to S$4,547,604 in the same period of 2021, representing an increase of approximately 2.2%[13]. - In Q1 2023, revenue from external customers for Simplicity was SGD 4,386,364, compared to SGD 4,385,835 in 2022, while Starlight generated SGD 261,926, up from SGD 161,769 in 2021, totaling SGD 4,648,290 against SGD 4,547,604 in the previous year[51]. - The overall group revenue rose by 2.2% to 4,648,290 SGD from 4,547,604 SGD in the previous year, with Starlight® contributing 100,157 SGD to this growth[73]. Segment Performance - Starlight® business segment experienced a revenue growth of 61.9% due to increased demand for energy-saving technology[12]. - Simplicity® total revenue for the three months ended August 31, 2022, was 4,386,364 SGD, a slight increase of 0.0% compared to 4,385,835 SGD for the same period in 2021[66]. - Starlight® total revenue increased by 61.9% to 261,926 SGD from 161,769 SGD year-over-year, driven by a significant rise in project revenue[69][70]. - Project revenue for Starlight® surged by 132.7%, reaching 194,205 SGD, compared to 83,448 SGD in the previous year[69][70]. - Simplicity® recurring maintenance service revenue grew by 38.7%, reflecting a larger customer base[67]. - Simplicity® subscription revenue increased by 2.2%, totaling 501,432 SGD, compared to 490,503 SGD in the prior year[66][68]. Financial Losses - The company reported a pre-tax loss of 388,742 SGD primarily due to investments in expanding sales and marketing, and increasing R&D for Simplicity®[12]. - The company reported a loss before tax of S$388,742 for the three months ended August 31, 2022, compared to a profit of S$548,883 in the same period of 2021[13]. - The group recorded a pre-tax net loss of SGD 388,742 for the three months ended August 31, 2022, compared to a net profit of SGD 548,883 for the same period in 2021[78]. - Total comprehensive loss for the period was S$386,661, compared to a comprehensive income of S$547,471 in the previous year[13]. Expenses and Costs - Gross margin decreased by 3.7%, with Simplicity® gross margin dropping from 46.7% to 43.4%, while Starlight® gross margin increased from 25.8% to 41.5%[12]. - Administrative expenses rose to S$1,317,916 from S$959,822, marking an increase of approximately 37.3%[13]. - Employee costs, including directors' remuneration, amounted to SGD 3,417,801 for the three months ended August 31, 2022, up from SGD 2,614,161 in 2021, reflecting a year-on-year increase of 30.7%[55]. - Selling and distribution costs of S$632,171, which is an increase from S$354,151 in the same period last year[13]. - Sales and marketing expenses increased by 78.5%, amounting to SGD 278,020, primarily due to a 86.1% rise in sales and marketing activities in local and new target markets[77]. Research and Development - Research and development expenses increased significantly to S$601,272 from S$251,805, reflecting a rise of approximately 138.2%[13]. - Research and development costs are focused on enhancing existing products and improving security features, with a significant emphasis on cloud computing to address higher information security risks[79]. - The company aims to improve the security features of its Simplicity® product as part of its fiscal year focus[79]. Shareholder Information - As of August 31, 2022, the total number of issued shares was 402,900,738, with key shareholders holding significant stakes, including 11.31% by Liu Yijun and 5.65% by Wang Ruixing[81]. - Majuven Fund 1 Ltd. holds approximately 9.07% of the company's shares, indicating strong institutional interest[82]. Dividend Policy - The board has not declared any dividends for the three months ending August 31, 2022[12]. - The company has not declared any dividends for the three months ended August 31, 2022, maintaining a zero dividend policy similar to the previous year[58]. - The board has decided not to declare any dividends for the three months ending August 31, 2022, consistent with the previous year[92]. Lease and Revenue Recognition - The company capitalizes all leases as right-of-use assets and lease liabilities, with the option to not capitalize short-term leases and low-value asset leases[25]. - Revenue from contracts with customers is recognized when control of goods or services is transferred, excluding amounts collected on behalf of third parties[32]. - Revenue from enterprise application software and energy management solutions is recognized based on the percentage of completion method, with invoicing typically occurring within 90 days[33]. - Maintenance service revenue is recognized over time as customers simultaneously receive and consume benefits, with invoicing typically occurring monthly[35]. - Hardware sales revenue is recognized when the customer takes possession and accepts the product, with invoicing typically occurring within 30 days[36]. - Rental income from leasing hardware is recognized on a straight-line basis over the lease term[38]. Market Expansion - The company has expanded its market presence across various regions, including Singapore, Thailand, Malaysia, and China, targeting multiple industries such as commercial real estate and healthcare[62]. - The company plans to enhance sales and marketing efforts in Southeast Asia, Australia, New Zealand, and East Asia following the establishment of an office in Australia[72]. Audit and Compliance - The audit committee, established on November 24, 2016, is responsible for overseeing the external auditor's appointment and reviewing financial statements, although the Q1 2023 financial statements were not audited[94].
安科系统(08353) - 2023 Q1 - 季度财报