Financial Performance - Revenue for the three months ended 31 May 2022 was RM 2,576,000, a decrease of 30.7% compared to RM 3,729,000 for the same period in 2021[11] - Gross profit for the six months ended 31 May 2022 was RM 1,219,000, down 30.4% from RM 1,753,000 in the same period of 2021[11] - Loss before income tax for the three months ended 31 May 2022 was RM 2,309,000, compared to a loss of RM 1,579,000 for the same period in 2021, representing a 46.3% increase in loss[12] - Total comprehensive loss for the six months ended 31 May 2022 was RM 4,545,000, an increase of 68.5% from RM 2,709,000 in the same period of 2021[12] - The loss per share for the six months ended 31 May 2022 was RM 1.17, compared to RM 0.69 for the same period in 2021, indicating a 69.6% increase in loss per share[12] - The company reported a loss before income tax of RM 4,545,000 for the six months ended May 31, 2022, compared to a loss of RM 2,690,000 for the same period in 2021, indicating an increase in losses of approximately 68.7%[19] - For the six months ended 31 May 2022, the loss attributable to owners of the Company was RM4,545,000, an increase from RM2,690,000 in the same period of 2021[81] - The Group recorded a loss of approximately RM4,545,000 for the six months ended 31 May 2022, an increase from approximately RM2,690,000 in 2021[149] Assets and Liabilities - Current assets decreased to RM 17,015,000 as of 31 May 2022 from RM 25,432,000 as of 30 November 2021, a decline of 33.0%[14] - Trade and other receivables dropped significantly to RM 3,703,000 from RM 9,590,000, a decrease of 61.4%[14] - Current liabilities decreased to RM 10,185,000 as of 31 May 2022 from RM 14,527,000, a reduction of 30.0%[14] - Non-current assets decreased to RM 5,292,000 as of 31 May 2022 from RM 5,885,000, a decline of 10.1%[14] - As of May 31, 2022, net current assets decreased to RM 6,830,000 from RM 10,905,000 as of November 30, 2021, representing a decline of approximately 37.0%[15] - Total assets less current liabilities fell to RM 12,122,000 from RM 16,790,000, a decrease of about 27.8%[15] - Total equity decreased to RM 11,240,000 as of May 31, 2022, down from RM 15,785,000, reflecting a decline of about 28.8%[17] - Cash and cash equivalents at the end of the reporting period were RM 12,468,000, down from RM 16,586,000, marking a decrease of approximately 24.5%[21] - Trade receivables from third parties decreased to RM2,664,000 as of May 31, 2022, down from RM8,808,000 as of November 30, 2021, representing a decline of approximately 70.4%[94] - Cash at banks and in hand decreased to RM4,560,000 as of May 31, 2022, compared to RM7,181,000 as of November 30, 2021, a decline of approximately 36.0%[107] - Total bank balances and cash decreased to RM12,468,000 as of May 31, 2022, down from RM15,089,000 as of November 30, 2021, a decrease of about 17.3%[107] - Trade payables from third parties decreased to RM4,044,000 as of May 31, 2022, down from RM8,196,000 as of November 30, 2021, a reduction of approximately 50.7%[111] Revenue Segments - For the six months ended 31 May 2022, the total revenue from reportable segments was RM 7,036,000, with system integration and development services contributing RM 6,015,000, IT outsourcing services RM 765,000, and maintenance and consultancy services RM 256,000[49] - Revenue from external customers for the six months ended 31 May 2022 was RM 7,036,000, an increase of 26.3% compared to RM 5,571,000 for the same period in 2021[56] - The reportable segment results for the six months ended 31 May 2022 totaled RM 1,753,000, compared to RM 1,483,000 for the same period in 2021, reflecting a growth of 18.2%[51] - The company recognized revenue of RM 6,015,000 from system integration and development services for the six months ended 31 May 2022, up from RM 3,695,000 in the previous year, marking a 62.8% increase[61] - IT outsourcing services generated revenue of RM 765,000 for the six months ended 31 May 2022, down 48.7% from RM 1,483,000 in the same period of 2021[61] - Revenue from maintenance and consultancy services decreased by approximately 34.9% to approximately RM256,000 for the six months ended 31 May 2022, mainly due to the completion or scale down of several maintenance projects[136] Expenses and Costs - Administrative expenses increased to RM 5,808,000 for the six months ended 31 May 2022, up 37.0% from RM 4,244,000 in the same period of 2021[11] - The Group's amortization for the six months ended 31 May 2022 was RM 2,368,000, and the addition of intangible assets was RM 2,072,000[49] - Amortization of intangible assets increased to RM 2,368,000 for the six months ended 31 May 2022, compared to RM 1,152,000 in the same period of 2021, representing a 106.3% increase[68] - The company incurred interest expenses of RM 53,000 for the six months ended May 31, 2022, compared to RM 38,000 in the same period of 2021, reflecting an increase of about 39.5%[21] - The finance costs increased by approximately 39.5% to approximately RM53,000 for the six months ended 31 May 2022, compared to RM38,000 in 2021[143] Market and Strategic Focus - The company has been engaged in system integration and development services, IT outsourcing services, and maintenance and consultancy services, indicating a focus on expanding its service offerings[23] - The Group aims to expand its market presence in Malaysia, with a focus on enhancing its IT outsourcing services and system integration capabilities[55] - The Group focuses on enterprise banking and government agencies due to their consistent demand for information communication technology services[177] - The Group aims to be a major IT solution provider for digitalization in Malaysia and capture new growth opportunities through Square Intelligence[179] - The Group plans to expand into the Small and Medium Enterprises (SMEs) market by introducing digital solutions tailored for the retail industry[200] - The first solution aimed at SMEs will facilitate a digital ordering process to enhance productivity while complying with COVID-19 restrictions[200] COVID-19 Impact - The prolonged COVID-19 pandemic has led to customers delaying key information technology purchasing decisions, adversely affecting financial results[170] - The ongoing COVID-19 pandemic has led to temporary office closures and project delays, adversely impacting financial performance[171] - Significant deals that were deferred due to the pandemic are now being discussed and negotiated[175] - The Group is actively adjusting business plans and enhancing products to generate sustainable cash inflow amid the pandemic[199] Regulatory and Compliance - The financial statements were prepared in accordance with International Accounting Standards (IAS) 34 and the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules[30] - The accounting policies applied in the preparation of the Interim Financial Statements are consistent with those used in the 2021 Financial Statements, with no significant effects from the adoption of new/revised IFRSs[35] - The Interim Financial Statements do not include all information required for a full set of financial statements as per International Financial Reporting Standards (IFRSs)[30] - The Group has not early adopted new/revised IFRSs that have been issued but are not yet effective, and no material impact is anticipated from future adoptions[36] Future Plans and Developments - The Group has secured a major system transformation contract with the Central Bank of Malaysia, currently in the requirement gathering stage[182] - The advanced version of the mobile payment application, Blackbutton 2.0, has been completed and is ready for market launch[183] - The Group is evaluating potential acquisitions or development of 4 new major intellectual properties to enhance Square Intelligence and CUSTPRO compatibility[185] - Due diligence on a potential acquisition of a company with the Taraf Bumiputra MOF license was conducted, but results were unsatisfactory, leading to the halt of negotiations[192] - The next Malaysian general election is expected in Q4 2022, causing the Group to temporarily pause acquisition plans and monitor new government policies[192][194] - The Malaysian IT industry is anticipated to remain challenging and competitive in the coming years due to the economic impact of the COVID-19 pandemic[193][194]
九福来(08611) - 2022 - 中期财报