Financial Performance - Total revenue from contracts with customers for the six months ended June 30, 2023, was 45,861 thousand MYR, down from 51,770 thousand MYR in the same period of 2022, indicating a decrease of about 11.4%[9] - The company reported a net loss attributable to equity holders of 4,318 thousand MYR for the six months ended June 30, 2023, compared to a loss of 401 thousand MYR in the same period of 2022, reflecting a significant increase in losses[15] - Total revenue for the six months ended June 30, 2023, was approximately RM 45.9 million, a decrease from RM 51.8 million for the same period in 2022, primarily from outsourcing services[37] - The group reported a loss of approximately RM 4.0 million for the six months ended June 30, 2023, compared to a loss of RM 17,000 for the same period in 2022, attributed to reduced gross profit and increased administrative expenses[45] - For the six months ended June 30, 2023, the company reported a total comprehensive loss of RM 2,609,000 compared to a profit of RM 484,000 for the same period in 2022, representing a significant decline[119] - The company's basic and diluted loss per share for the six months ended June 30, 2023, was RM 0.18, compared to RM 0.02 for the same period in 2022, indicating a worsening financial performance[119] Assets and Liabilities - The total assets as of June 30, 2023, amounted to 98,403 thousand MYR, a decrease from 111,760 thousand MYR as of December 31, 2022, representing a decline of approximately 11.9%[3] - The company’s total liabilities as of June 30, 2023, were 34,147 thousand MYR, compared to 32,289 thousand MYR as of December 31, 2022, indicating an increase of about 5.8%[3] - As of June 30, 2023, total loans and borrowings amounted to approximately RM 8.1 million, a decrease of RM 5.3 million or 39.6% from RM 13.4 million as of December 31, 2022[46] - The company’s net assets as of June 30, 2023, were reported at 85,250 thousand MYR, a slight decrease from 87,859 thousand MYR at the end of 2022[111] - Total liabilities decreased to RM 13,153,000 as of June 30, 2023, from RM 23,901,000 as of December 31, 2022, showing a reduction of about 45%[124] Employee Costs - Employee costs for the six months ended June 30, 2023, totaled 10,627 thousand MYR, up from 6,220 thousand MYR in the same period of 2022, marking an increase of approximately 70.5%[13] - The total employee compensation for the six months ended June 30, 2023, was approximately RM 10.6 million, an increase from RM 6.2 million for the same period in 2022[55] Revenue Sources - The revenue from outsourcing services, particularly document management, was 38,293 thousand MYR for the six months ended June 30, 2023, slightly up from 38,194 thousand MYR in the same period of 2022[9] - The group’s revenue from outsourcing services accounted for approximately 99.0% of total revenue for the six months ended June 30, 2023, compared to 99.8% for the same period in 2022[37] - Revenue from enterprise software solutions accounted for approximately 5.8% of total revenue for the six months ended June 30, 2023, up from 4.9% for the same period in 2022, with an increase from approximately 2.6 million MYR to approximately 2.7 million MYR, representing a growth of about 3.6%[71] - Revenue from medical equipment distribution and sales accounted for approximately 1.0% of total revenue for the six months ended June 30, 2023, compared to approximately 0.2% for the same period in 2022, increasing from approximately 0.1 million MYR to approximately 0.5 million MYR[72] Strategic Plans - The company plans to expand its market share locally and explore regional expansion to capture more market share[34] - The company aims to enhance its service offerings in Malaysia, including electronic document delivery and medical ID card printing, as part of its growth strategy[32] - The group plans to develop advanced internet cloud technology and big data analytics to create comprehensive and efficient service systems for clients in the insurance sector in China[36] - The company plans to allocate 89.8% of its unutilized funds to enhance technical capabilities and develop new applications through external software developers[89] - The company aims to strengthen its marketing efforts to acquire new customers, reallocating part of its unutilized funds for this purpose, which is projected to be 10.2% of the total[89] - The company is seeking strategic acquisitions and business opportunities to expand its operations and improve its service offerings[151] Operational Changes - The company has adopted new international financial reporting standards, which did not have a significant impact on its performance or financial position during the reporting period[5] - The company’s management structure has changed, with Mr. Ma taking over as both Chairman and CEO from May 1, 2023, following Mr. Ling's resignation[60] - The company is upgrading its IT infrastructure and expanding its hosting capabilities, with a new data center expected to be completed by the end of June 2024, enhancing its document hosting capabilities for clients[65] - The company has transformed an existing building acquired in 2022 into a new data center to upgrade its IT infrastructure and expand its outsourcing document management services[151] Compliance and Regulations - The company has established internal policies to comply with relevant regulations in China, including the Data Security Law and the Personal Information Protection Law[181] Cash Flow and Financing - As of June 30, 2023, cash and bank balances amounted to approximately MYR 37.9 million, down from MYR 53.9 million as of December 31, 2022[191] - The capital debt ratio as of June 30, 2023, was approximately 10.0%, a decrease from 15.8% as of December 31, 2022, due to a reduction in interest-bearing bank loans from approximately MYR 13.4 million to MYR 8.1 million[194] - The company did not engage in any significant investments or acquisitions during the six months ended June 30, 2023[196]
C-LINK SQ-NEW(01463) - 2023 - 中期业绩