Revenue Performance - For the three months ended May 31, 2023, revenue increased to RM 3,838,000, a 49% increase from RM 2,576,000 in the same period of 2022[11]. - For the six months ended May 31, 2023, revenue decreased to RM 6,544,000, a 7% decline from RM 7,036,000 in the same period of 2022[11]. - Revenue from external customers for the six months ended May 31, 2023, was RM 6,544,000, a decrease of 7% compared to RM 7,036,000 for the same period in 2022[58]. - The Group's total revenue for the six months ended 31 May 2023 decreased by approximately 7.0% to RM 6,544,000 compared to RM 7,036,000 in 2022[128]. - Revenue from IT outsourcing services decreased by approximately 55.6% to RM 340,000 for the six months ended 31 May 2023, down from RM 765,000 in 2022[131]. - Revenue from maintenance and consultancy services decreased by approximately 29.7% to RM 180,000 for the six months ended 31 May 2023, compared to RM 256,000 in 2022[136]. - Revenue from system integration and development services remained stable at approximately RM 6,024,000 for the six months ended 31 May 2023, slightly up from RM 6,015,000 in 2022[130]. Profit and Loss - Gross profit for the three months ended May 31, 2023, was RM 690,000, compared to RM 648,000 in the same period of 2022, reflecting a 6% increase[11]. - The gross profit for the six months ended 31 May 2023 was RM 1,152,000, compared to RM 1,219,000 in 2022[139]. - The gross profit margin improved to 17.6% for the six months ended May 31, 2023, compared to 17.3% in 2022[139]. - Loss before income tax for the three months ended May 31, 2023, was RM 1,405,000, an improvement from RM 2,309,000 in the same period of 2022, indicating a 39% reduction in losses[12]. - For the six months ended May 31, 2023, the loss before income tax was RM 4,233,000, a slight improvement from RM 4,545,000 in the same period of 2022[20]. - The Group recorded a loss of approximately RM 4,233,000 for the six months ended 31 May 2023, an improvement from a loss of approximately RM 4,545,000 in 2022[147]. Assets and Liabilities - Non-current assets decreased to RM 2,671,000 as of May 31, 2023, down from RM 4,218,000 as of November 30, 2022, representing a 37% decline[14]. - Current assets decreased to RM 9,108,000 as of May 31, 2023, down from RM 11,449,000 as of November 30, 2022, indicating a 20% reduction[14]. - As of May 31, 2023, net current assets decreased to RM 3,073,000 from RM 5,867,000 as of November 30, 2022, representing a decline of approximately 47.9%[15]. - Total assets less current liabilities fell to RM 5,744,000 from RM 10,085,000, a decrease of about 43.2%[15]. - The company's net assets decreased to RM 5,039,000 from RM 9,291,000, reflecting a decline of approximately 45.8%[15]. - Trade and other payables increased to RM 3,858,000 as of May 31, 2023, compared to RM 2,874,000 as of November 30, 2022, reflecting a 34% increase[14]. Cash Flow - Cash used in operating activities for the six months was RM 1,820,000, compared to RM 305,000 in the previous year, indicating a significant increase in cash outflow[20]. - The company reported a net decrease in cash and cash equivalents of RM 2,133,000, compared to RM 2,621,000 in the previous year[22]. - Cash and cash equivalents at the end of the reporting period were RM 4,511,000, down from RM 12,468,000 at the end of the previous year[22]. - Cash at banks and in hand decreased to RM 2,949,000 as of May 31, 2023, from RM 4,573,000 as of November 30, 2022[107]. - Total bank balances and cash decreased to RM 4,511,000 as of May 31, 2023, from RM 6,644,000 as of November 30, 2022[107]. Corporate Governance - The Company has complied with the Corporate Governance Code during the six months ended May 31, 2023, with a noted deviation regarding the separation of roles between the chairman and CEO[194]. - Mr. Chong Yee Ping serves as both Chairman and CEO, responsible for the overall business development strategy of the Company[195]. - The Board believes that the current arrangement of having the same individual in both roles is in the best interest of the Company and its shareholders[198]. - The Board consists of four other experienced individuals, including two non-executive Directors and two independent non-executive Directors, providing diverse perspectives[198]. - The Audit Committee has direct access to external auditors and independent professional advisers when necessary[197]. Future Outlook and Strategy - The company is focused on improving operational efficiency and exploring new market opportunities to enhance future performance[10]. - The Group aims to be a major IT solution provider for digital banking and public financial services, focusing on compliance and digitalization[167]. - The Group plans to leverage pre-IPO investors' business networks to introduce IT products from the PRC into Malaysia[168]. - The Group has developed an advanced version of its mobile payment application, Blackbutton 2.0, which is ready for market offering and aims to localize mobile payment products in Malaysia[174]. - The digital banking solution is ready for market, with a typical sales cycle of 12-18 months, and the Group will engage in active marketing activities[177]. - The current economic environment in Malaysia remains challenging due to global economic slowdown, interest rate hikes, and trade wars, which are expected to persist[178]. - The Group is exploring emerging markets like Vietnam and Cambodia to identify new business opportunities and investment prospects[185].
九福来(08611) - 2023 - 中期财报