Financial Performance - Revenue for the three months ended August 31, 2022, was RM 2,162,000, a decrease of 18.4% compared to RM 2,652,000 in the same period of 2021[10] - Gross profit for the three months ended August 31, 2022, was RM 875,000, down 25.3% from RM 1,171,000 in the previous year[10] - Loss before income tax for the three months ended August 31, 2022, was RM 584,000, an improvement from a loss of RM 2,651,000 in the same period of 2021[11] - Total comprehensive loss for the period was RM 623,000, compared to RM 2,789,000 in the previous year, indicating a significant reduction in losses[11] - For the nine months ended August 31, 2022, revenue increased to RM 9,198,000, up 11.8% from RM 8,223,000 in the same period of 2021[10] - The company reported a loss for the nine months ended August 31, 2022, of RM 5,168,000, slightly improved from RM 5,479,000 in the previous year[11] - The basic loss per share for the three months ended August 31, 2022, was RM 0.16, an improvement from RM 0.72 in the same period of 2021[11] - For the three months ended August 31, 2022, the loss attributable to owners of the Company was RM623,000, compared to a loss of RM2,789,000 for the same period in 2021, representing a significant improvement[68] - For the nine months ended August 31, 2022, the loss attributable to owners of the Company was RM5,168,000, slightly better than the loss of RM5,479,000 in the same period of 2021[68] Revenue Breakdown - Segment revenue is derived from system integration and development services, IT outsourcing services, and maintenance and consultancy services[32] - System integration and development services generated RM 7,836,000 in revenue for the nine months ended August 31, 2022, up from RM 5,196,000 in 2021, reflecting a growth of 50.7%[45] - IT outsourcing services revenue decreased to RM 1,014,000 for the nine months ended August 31, 2022, down 57.8% from RM 2,408,000 in the previous year[45] - Revenue from maintenance and consultancy services decreased by approximately 43.8% to approximately RM348,000 for the nine months ended 31 August 2022, mainly due to the completion of several projects[86] Expenses and Costs - Administrative expenses for the three months ended August 31, 2022, were RM 2,353,000, an increase of 3.4% from RM 2,276,000 in the same period of 2021[10] - Amortization for the nine months ended August 31, 2022 was RM 3,410,000, compared to RM 1,808,000 for the same period in 2021, indicating a significant increase[39] - The cost of materials sold for the nine months ended August 31, 2022, was RM1,941,000, compared to RM467,000 in the same period of 2021[55] - Administrative expenses increased by approximately 25.2% to approximately RM8.2 million for the nine months ended 31 August 2022, mainly due to increased amortization of intangible assets[91] - Finance costs for the nine months ended August 31, 2022 totaled RM 74,000, an increase from RM 52,000 in the previous year[50] Taxation - Current tax expenses for the nine months ended August 31, 2022, amounted to RM39,000, consistent with RM138,000 for the same period in 2021[55] - The applicable Malaysia corporate income tax rate is 24% for the nine months ended August 31, 2022, unchanged from 2021[58] - Income tax expenses decreased to approximately RM39,000 for the nine months ended August 31, 2022, down from approximately RM138,000 in 2021, due to lower profits from Malaysian subsidiaries[96] Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and CEO[171] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, and has complied with it for the nine months ending August 31, 2022, with some deviations noted[173] - The roles of the Chairman and CEO are currently held by the same individual, Mr. Zhong Yibin, which the Board believes is in the best interest of the company and its shareholders for effective management and business development[175] - The Board consists of six other experienced individuals, including one executive director, two non-executive directors, and three independent non-executive directors, providing diverse perspectives for decision-making[175] Shareholder Information - As of August 31, 2022, Mr. Chong Yee Ping and Mr. Siah Jiin Shyang each hold 196,560,000 shares, representing approximately 50.4% of the Company's issued share capital[193] - Delicate Edge Limited and King Nordic Limited, owned by Mr. Chong Yee Ping and Mr. Siah Jiin Shyang respectively, each hold 98,280,000 shares, accounting for 25.2% of the total issued share capital of the Company[194] - Mr. Liu Yan Chee James holds 57,720,000 shares, which is 14.8% of the Company's issued share capital[193] - Mr. Lam Pang owns 38,220,000 shares, representing 9.8% of the Company's issued share capital[193] Future Outlook and Strategy - The Group aims to be a major IT solution provider for digitalization in Malaysia and is focusing on small and medium enterprises as a new market segment[112] - The Group is promoting digital adoption and transformation by providing modernized solutions to customers[108] - The Group is studying the feasibility of expanding into the Small and Medium Enterprises (SMEs) market by introducing digital solutions, with initial designs and prototypes completed[137] - The Group has been in discussions with potential technology partners in China to launch their services/products in Malaysia, which were delayed due to the COVID-19 pandemic[140] Risks and Challenges - The Group identified risks related to reliance on major customers, which could adversely affect business and financial condition if revenue decreases from these customers[147] - The information technology industry in Malaysia is expected to remain challenging and competitive in the coming years due to the ongoing impact of the COVID-19 pandemic[129] - The COVID-19 pandemic has caused cost overruns and delays in projects, but the Group is managing costs carefully and optimizing resource utilization[152]
九福来(08611) - 2022 Q3 - 季度财报