Company Operations - The Group's operation is primarily located in Malaysia, providing system integration and IT-related services since 2006[19]. - The Group's customer base includes banks, financial institutions, government bodies, educational institutions, and SMEs[19]. - The Group has diversified its business to include general trading services related to IT and management consultancy[19]. - The Group's operations are primarily financed by revenue generated from business operations, available bank balances, and interest-bearing borrowings[76]. Impact of COVID-19 - The COVID-19 pandemic continued to impact the Group's operations, affecting new project negotiations and delaying existing projects[20]. - The COVID-19 pandemic has led to cost overruns and project delays, but the Group continues to manage costs carefully[112]. - Post-pandemic, customers appear more confident to spend and invest in IT-driven business transformation[26]. - The Group will continue to monitor the development of COVID-19 to ensure employee safety and stable operations[71]. Financial Performance - The financial year ended on November 30, 2022, with ongoing efforts to maintain stable operations[20]. - The Group's total revenue decreased by approximately 27.4% to approximately RM12.5 million for the year ended 30 November 2022, down from RM17.2 million in 2021[35]. - Revenue from system integration and development services decreased by approximately 24.8% to approximately RM10.2 million for the year ended 30 November 2022, compared to RM13.5 million in 2021[39]. - Revenue from IT outsourcing services decreased by approximately 56.4% to approximately RM1.2 million for the year ended 30 November 2022, down from RM2.9 million in 2021[40]. - Revenue from maintenance and consultancy services increased by approximately 32.0% to approximately RM1,047,000 for the year ended 30 November 2022, up from approximately RM793,000 in 2021[41]. - The Group recorded a loss of approximately RM6.7 million for the year ended 30 November 2022, compared to a loss of RM6.3 million in 2021, attributed to rising administrative expenses[54]. - Administrative expenses rose by approximately 19.7% to RM10.9 million for the year ended 30 November 2022, mainly due to an increase in amortization of intangible assets[51]. - Finance costs increased by approximately 36.1% to RM98,000 for the year ended 30 November 2022, as no interest-free deferral of repayment was granted in 2022[52]. Strategic Focus and Future Plans - The Group aims to develop advanced versions of existing IT products to increase competitive edge[20]. - The Group is exploring appropriate investment opportunities to strengthen its core business[20]. - The Group aims to be a major IT solution provider for digital banking and public financial services[29]. - The Group plans to continue focusing on digital transformation and modernization solutions for customers, anticipating an expansionary future in the industry[68]. - The Group is focusing on providing pay-per-use or leasing commercial models to ease customers' financial burdens and secure long-term contracts[28]. - The Group is actively negotiating and securing new projects and tenders to enhance business performance and develop advanced versions of IT products[25]. - The Group is exploring emerging markets such as Vietnam and Cambodia to identify new business opportunities and investment opportunities[25]. Market Environment - The Group's business environment remains challenging due to potential global recession, rising interest rates, and supply chain disruptions[24]. - The Group anticipates a challenging economic environment in Malaysia due to global economic slowdown and interest rate hikes[98]. - The Group is monitoring global developments, including rising interest rates and supply chain disruptions, which may impact business operations[104]. - The Malaysian economy showed signs of recovery in the second half of 2022, with expectations for a quicker recovery path due to high vaccination rates and the reopening of borders[66]. Management and Governance - The company has a diverse board with expertise in finance, IT, and business intelligence, enhancing its strategic decision-making capabilities[158]. - The board includes independent non-executive directors who contribute to the governance and oversight of the company[165]. - The company is focused on expanding its market presence through strategic appointments and leveraging the experience of its directors[160]. - The management team has a strong background in technology and finance, which is crucial for the company's growth strategy[171]. - The board's composition reflects a commitment to strong governance and diverse skill sets, which is essential for navigating market challenges[165]. Employee and Staff Costs - The Group's total staff costs and related expenses for the year ended 30 November 2022 were approximately RM9.1 million, an increase from RM7.7 million in 2021[131]. - The Group's employee count increased to 70 as of 30 November 2022, up from 60 in the previous year[131]. - The Group contributed approximately RM703,000 to the Mandatory Provident Fund (MPF) and Employees Provident Fund (EPF) schemes for the year ended November 30, 2022, compared to RM629,000 in 2021[137]. - The Group is required to contribute 5% of employees' relevant income to the MPF scheme, with a cap of HK$30,000 per month[135]. - The Group's subsidiaries in Malaysia are required to contribute between 6% to 13% of payroll costs to the EPF[136]. Research and Development - The Group has completed the advanced version of its mobile payment application, Blackbutton 2.0, which is now ready for market offering[95]. - The Group plans to enhance Blackbutton to support new digital processes, including digital customer onboarding, eKYC, and digital credit origination[101]. - The R&D department is actively involved in developing new products and improving existing technologies[186]. - The Group continuously develops advanced versions of existing products and evaluates potential acquisitions to meet customer demands[116]. Financial Management - The Group raised approximately RM30.5 million (equivalent to approximately HK$58.6 million) from the share offer, with adjusted allocations for various purposes[119]. - Approximately RM18.3 million (equivalent to approximately HK$35.2 million), representing 60% of the net proceeds, is allocated for purchasing hardware and equipment to establish IT infrastructure for cloud services[122]. - The Group plans to allocate approximately RM6.1 million (equivalent to approximately HK$11.7 million), representing 20% of the net proceeds, for research and development of advanced IT products[127]. - As of 30 November 2022, the Group had utilized all of the RM30.5 million net proceeds, with no unutilized balance remaining[129]. - The Group's unutilised net proceeds of approximately RM11 million were reallocated to general working capital, including staff costs of RM7.6 million and professional fees of RM1.5 million[134]. Acquisitions and Investments - The Group is exploring potential acquisitions to strengthen its NS3 and CUSTPRO products in response to increasing market demand[96]. - The management attempted to negotiate a potential acquisition of a company with the Taraf Bumiputera MOF license, but it did not proceed due to unsatisfactory due diligence results[134]. - The Group has not made any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended November 30, 2022[105].
九福来(08611) - 2022 - 年度财报