Financial Results - Mindtell Technology Limited reported its audited consolidated financial results for the year ending November 30, 2023[3]. - The financial summary section of the annual report provides key financial metrics and performance indicators for the year[13]. - The Group's total revenue decreased by approximately 2.4% to approximately RM12.2 million for the year ended 30 November 2023, compared to RM12.5 million in 2022[37]. - Revenue from system integration and development services increased by approximately 11.2% to approximately RM11.3 million for the year ended 30 November 2023, driven by new projects contributing approximately RM1.3 million[41]. - Revenue from IT outsourcing services decreased by approximately 54.9% to approximately RM563,000 for the year ended 30 November 2023, primarily due to reduced staff allocation to outsourcing[42]. - Revenue from maintenance and consultancy services decreased by approximately 72.3% to approximately RM290,000 for the year ended 30 November 2023, mainly due to the completion or scale down of several projects[43]. - Gross profit decreased from approximately RM3.4 million in 2022 to approximately RM2.6 million in 2023, with the gross profit margin declining from approximately 27.1% to approximately 21.7%[51]. - Administrative expenses decreased by approximately 25.8% to approximately RM8.1 million for the year ended 30 November 2023, attributed to reduced amortization of intangible assets[52]. - The Group recorded a loss of approximately RM5.4 million for the year ended 30 November 2023, an improvement from a loss of approximately RM6.7 million in 2022[55]. Corporate Governance - The company has complied with the Corporate Governance Code (CG Code) during the year ended November 30, 2023, with exceptions noted in code provision C.2.1 regarding the separation of roles between the chairman and chief executive officer[164]. - Mr. Chong Yee Ping serves as both the Chairman and Chief Executive Officer, with the Board believing this arrangement is in the best interest of the Group for effective management and business development[165]. - The Board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring diverse perspectives in decision-making[174]. - The company has adopted the required standard of dealings for directors' securities transactions as per GEM Listing Rules, confirming compliance since the listing date[171]. - The Board is responsible for the overall business plans and strategies of the Group, including monitoring business performance and risk management[176]. - The company has appointed new independent non-executive directors in 2023, enhancing the governance structure[175]. - The company’s management is delegated daily operations, with the Board reviewing these functions to meet the Group's needs[177]. - The company emphasizes high levels of corporate governance and business ethics as a major objective[163]. - The company’s strategic decisions are made with input from relevant Board committees and senior management[169]. - The Board consists of six Directors, including one female Director, with a diversity policy in place to enhance board composition[183][186]. - The Audit Committee is composed of three independent non-executive Directors, responsible for overseeing financial reporting and internal controls[191][192]. - The Remuneration Committee, also consisting of three independent non-executive Directors, will review the share option scheme annually starting from 2024[195][197]. - The Company has complied with GEM Listing Rules by appointing at least three independent non-executive Directors, with one having relevant financial expertise[189][190]. - The Company’s management team is responsible for daily operations, while the Board oversees strategic decisions and performance[179]. - The Company has adopted a board diversity policy considering factors such as gender, age, and professional experience[182][186]. - Non-executive Directors are appointed for a fixed term of three years, subject to re-election at the annual general meeting[188][193]. - The Audit Committee has reviewed the accounting standards and practices for the year ended November 30, 2023[192]. - The Company has a formal and transparent procedure for developing remuneration policies for Directors and senior management[196]. - The Board is responsible for overall business planning, policy implementation, and risk management[179]. - The Company established a Nomination Committee in compliance with code provision B.3.1 of the CG Code[198]. - The Nomination Committee consists of three independent non-executive Directors, with Dato. Yeong Kok Hee as the chairman[198]. - The primary function of the Nomination Committee is to make recommendations to the Board for filling vacancies based on the Company's board diversity policy[199]. - The Nomination Committee can consider candidates not nominated by Board members[200]. - Factors for assessing candidates include integrity, professional qualifications, skills, knowledge, experience, and willingness to devote time[200]. - The Nomination Committee will also consider the diversity of the Board in its recommendations[200]. Business Operations and Strategy - The company is positioned on the GEM market, which is designed for small and mid-sized companies, indicating a higher investment risk compared to other companies listed on the Stock Exchange[5][9]. - Investors are advised to consider the potential risks associated with investing in GEM-listed companies due to their susceptibility to high market volatility[6]. - The Group's operations are primarily located in Malaysia, providing system integration and IT-related services since 2006, with a focus on both private and public sectors[24]. - Significant technological advancements in the banking industry, including AI, Blockchain, and Big Data, are driving demand for the Group's services, with expectations to secure substantial contracts in FY2024[25]. - The Group anticipates continued growth in compliance and trade finance despite global macroeconomic challenges, with a focus on monitoring geopolitical risks and supply chain impacts[29]. - There is notable momentum in deal-making, with engagement teams actively collaborating with clients to customize solutions that enhance competitiveness[30]. - The Group aims to solidify its position as a major technology service provider for commercial and public financial services[32]. - New research and development solutions will be promoted to explore untapped verticals and industries through potential investment partnerships[32]. - Emphasis will be placed on partnerships with software companies like IBM and Oracle to build new business models powered by their platforms[32]. - The Group is actively bidding for new contracts to enhance business performance and is developing advanced versions of existing IT products[25]. - The Group is seeking appropriate investment opportunities to strengthen its core business[25]. Human Resources - Total staff costs for the year ended November 30, 2023, were approximately RM8.6 million, down from RM9.1 million in 2022, with a total of 59 employees[94]. - The Group employed a total of 59 employees as of 30 November 2023, a reduction from 70 employees in the previous year, reflecting a decrease of approximately 15.7%[99]. - The Group's focus on employee training aims to enhance knowledge and maintain service quality, in addition to statutory retirement and medical benefits[99]. - The Group is required to contribute between 6% to 13% of payroll costs to the Employees Provident Fund (EPF) in Malaysia, which is a statutory requirement[100]. - The Group's only obligation regarding the retirement benefit scheme is to make the specified contributions, with no forfeited contributions available to reduce existing levels of contributions[100]. - The Group's contributions to the Mandatory Provident Fund (MPF) in Hong Kong are set at 5% of employees' relevant income, with a monthly income cap of HKD 30,000[100]. - For the year ended 30 November 2023, the total contributions made by the Group to the retirement benefit schemes amounted to approximately RM769,000, an increase from RM703,000 in 2022, representing a growth of about 9.4%[98]. Management Team - The Group's executive team has extensive experience in system integration, business intelligence, and data warehousing, which supports its strategic initiatives[109]. - Mr. Lin Peng has nearly 30 years of experience in trade and property investment in China, having served as a director of various companies including Gome Retail Holdings and Shandong Jintai Group[118][120]. - Mr. Siew Kin Meng, appointed as an independent non-executive director on May 1, 2023, has extensive experience in auditing, banking, and corporate governance across multiple countries[121][124]. - Dato' Yeong Kok Hee, also appointed on May 1, 2023, has close to 40 years of experience in the IT and consulting industries, having held various senior positions in notable companies[127][130]. - Ms. Lau Meng Hong, appointed on September 1, 2023, has over 20 years of experience in legal and corporate governance, serving as a partner in a law firm and as a legal advisor for several companies[134][137]. - Mr. Pang Hen Yong, the chief technology officer, has been with the Group since December 2012, overseeing strategic IT planning and technological support[139]. - Mr. Pang served as a technical consultant for DKSH Holding AG and GlaxoSmithKline plc, contributing to strategic IT support and technical matters[140][144]. - Mr. Wong, head of the R&D department, focuses on product development from concept to implementation, collaborating with engineering teams for process and equipment design[142][145]. - Ms. Lee, project director, has over 10 years of experience in business and technology software implementation, managing various project implementations within the Group[147][151]. - Mr. Yeung, appointed as company secretary on June 1, 2023, has over 23 years of experience in auditing, accounting, and corporate governance, holding multiple professional certifications[155][156]. - The Group emphasizes the importance of IT service management, with key personnel holding ITIL Foundation Certificates and IBM professional certifications[141][150]. - The R&D department is actively involved in new product design and capability improvement, indicating a focus on innovation and market responsiveness[142][145]. - The company has a strong emphasis on corporate governance and financial management, as evidenced by Mr. Yeung's extensive background in these areas[156]. - The Group's management strategy includes overseeing performance and management while formulating overall business development strategies[102]. - The company is committed to expanding its project management capabilities, as demonstrated by Ms. Lee's leadership in overseeing project implementations[147][151]. - The technical team is focused on improving operational efficiency and validation processes, which is crucial for maintaining competitive advantage in the market[142][145].
九福来(08611) - 2023 - 年度业绩