Financial Performance - For the three months ended February 28, 2023, the revenue was RM 2,706,000, a decrease of 39.4% compared to RM 4,460,000 for the same period in 2022[10]. - The gross profit for the period was RM 462,000, down 19.1% from RM 571,000 in the previous year[10]. - Administrative expenses increased to RM 3,271,000, up 17.3% from RM 2,789,000 in the same period last year[10]. - The loss before income tax was RM 2,828,000, compared to a loss of RM 2,236,000 for the same period in 2022, representing a 26.5% increase in losses[11]. - The total comprehensive loss for the period was RM 2,863,000, compared to RM 2,236,000 in the previous year, indicating a 28.1% increase in total losses[11]. - Loss per share for the period was RM 0.73, compared to RM 0.57 for the same period in 2022, reflecting a 28.1% increase in loss per share[11]. - As of February 28, 2023, accumulated losses increased to RM 29,190,000 from RM 26,362,000 at the end of the previous reporting period[13]. - The Group recorded a loss of approximately RM2.8 million for the three months ended 28 February 2023, compared to a loss of approximately RM2.2 million in the same period of 2022, indicating an increase in loss due to higher administrative expenses[93][96]. Revenue Breakdown - For the three months ended February 28, 2023, the total revenue from reportable segments was RM 2,706,000, with system integration and development services contributing RM 2,314,000, IT outsourcing services RM 243,000, and maintenance and consultancy services RM 149,000[37]. - System integration and development services generated RM 2,314,000 in revenue, slightly up from RM 2,300,000 in the previous year[45]. - IT outsourcing services revenue decreased to RM 243,000 from RM 363,000, reflecting a decline of 32.9%[45]. - Maintenance and consultancy services revenue increased marginally to RM 149,000 from RM 145,000[45]. - Revenue for the three months ended 28 February 2023 was RM 2,706,000, a decrease of 39.4% compared to RM 4,460,000 for the same period in 2022[42]. - Revenue from system integration and development services decreased by approximately 41.4% to approximately RM2.3 million for the three months ended 28 February 2023, down from RM4.0 million in 2022[76]. - Revenue from IT outsourcing services decreased by approximately 33.1% to approximately RM243,000 for the three months ended 28 February 2023, compared to RM363,000 in 2022[77]. - Revenue from maintenance and consultancy services remained stable at approximately RM149,000 for the three months ended 28 February 2023, slightly up from RM145,000 in 2022[78]. Administrative and Other Expenses - Amortization for the quarter was RM 864,000, and the addition of intangible assets amounted to RM 85,000[37]. - Amortization of intangible assets included in administrative expenses was RM 864,000, down from RM 1,137,000 in the previous year[54]. - Interest income decreased to RM 1,000 from RM 5,000 year-on-year[47]. - The Group did not provide for Malaysia corporate income tax as it incurred a loss for taxation purposes in Malaysia for the three months ended 28 February 2023[57]. - Administrative expenses increased by approximately 17.3% to approximately RM3.3 million for the three months ended 28 February 2023, compared to RM2.8 million in 2022[87]. - Finance costs remained stable at approximately RM21,000 for the three months ended 28 February 2023, down from approximately RM24,000 in 2022[91]. Corporate Governance and Shareholder Information - The Directors did not recommend the payment of an interim dividend for the three months ended 28 February 2023, consistent with the previous year[67]. - The weighted average number of ordinary shares for basic and diluted loss per share calculation remained unchanged at 390,000,000 for both periods[67]. - The Company has complied with the Corporate Governance Code, except for the separation of roles between the chairman and the chief executive officer, which is deemed appropriate under current circumstances[125][129]. - The Share Option Scheme was conditionally adopted on September 19, 2018, to incentivize eligible persons for their contributions to the Group[137]. - The total number of shares issued under the Share Option Scheme shall not exceed 1% of the issued share capital of the Company in any 12-month period without shareholder approval[138]. - The Share Option Scheme will remain in force for 10 years from its adoption date on September 19, 2018, expiring on September 18, 2028[142]. - As of February 28, 2023, the company had 39,000,000 shares available for issue under the Share Option Scheme, representing 10% of the existing issued share capital[142]. - No options have been granted by the company since the adoption of the Share Option Scheme up to February 28, 2023[142]. - Mr. Chong Yee Ping and Mr. Siah Jiin Shyang each hold 196,560,000 shares, representing 50.4% of the company's issued share capital[148]. - Delicate Edge Limited and King Nordic Limited each hold 98,280,000 shares, accounting for 25.2% of the total issued share capital of the company[150]. - Mr. Liu Yan Chee holds 57,720,000 shares, representing 14.8% of the company's issued share capital[148]. - Mr. Lam Pang holds 38,220,000 shares, representing 9.8% of the company's issued share capital[148]. - As of February 28, 2023, no other directors or chief executives had interests or short positions in the shares or debentures of the company[150]. - The company has not entered into any arrangements enabling directors or chief executives to acquire benefits through shares or debentures during the three months ended February 28, 2023[153]. - The interests and short positions of directors and chief executives are required to be disclosed under the Securities and Futures Ordinance[145]. Strategic Focus and Market Position - The company continues to focus on system integration and development services, IT outsourcing services, and maintenance and consultancy services[15]. - The Group aims to become a major IT solution provider for digital banking and public financial services, with the first national budget released on 24 February 2023[98][99]. - The Group has developed Blackbutton Version 2.0, an advanced mobile payment and customer onboarding application, which is ready for market offering[105][106]. - The Group plans to enhance Blackbutton by expanding its features to support digital customer onboarding, eKYC, and digital credit origination[107]. - The digital banking solution is ready for market, with active marketing activities planned, including participation in regional banking technology events[108]. - The Group is exploring potential acquisitions to strengthen its products and features in response to market demand[107]. - The Group is monitoring the global economic environment, including rising interest rates and potential recession impacts, while negotiating new projects to enhance business performance[116]. - The Group is focusing on emerging markets such as Vietnam and Cambodia to identify new business opportunities[116]. - The Group has established a prominent position in offering anti-money laundering solutions, anticipating high demand for such services[102]. - The Group is actively exploring valuable information technology products to diversify its offerings as international travel recovers[117]. - The Group is monitoring the impacts of interest rate hikes, the Ukraine war, and supply chain disruptions on its operations, indicating a challenging business environment[117]. - The Group has taken measures to expand into emerging markets such as Vietnam and Cambodia to strengthen its core business[117]. Compliance and Audit - The Audit Committee consists of three independent non-executive Directors and has reviewed the unaudited condensed consolidated financial statements for the three months ended 28 February 2023, confirming compliance with applicable accounting standards[169][170]. - The Company established an Audit Committee to oversee financial reporting processes and risk management systems, in compliance with GEM Listing Rules[168][169]. - As of 28 February 2023, no Directors or controlling shareholders had interests in any other companies that may compete directly or indirectly with the Group's business[162][165]. - The Company has a Deed of Non-Competition in place, ensuring that controlling shareholders do not engage in competing businesses[163][164]. - The independent non-executive Directors confirmed compliance with all undertakings under the Deed of Non-Competition up to the date of the report[164].
九福来(08611) - 2023 Q1 - 季度财报