Financial Performance - The Group recorded a revenue decrease of approximately 11.3%, from approximately RM105.7 million for the year ended December 31, 2022, to approximately RM93.8 million for the year ended December 31, 2023[17]. - The Group reported a net loss attributable to equity holders of approximately RM4.2 million for the year ended December 31, 2023, compared to a loss of approximately RM0.8 million in 2022[18]. - The company's gross profit decreased by approximately RM0.5 million or 2.3%, from RM23.5 million in 2022 to RM22.9 million in 2023[43]. - The Group's gross profit decreased by RM0.5 million or 2.3% to approximately RM22.9 million in 2023, while gross profit margin increased by 2.2 percentage points to approximately 24.4%[75]. - Loss before tax amounted to approximately RM1.5 million for the year ended 31 December 2023, compared to a profit before tax of approximately RM2.7 million in 2022[105]. - The Group's loss for the year was approximately RM3.4 million for 2023, compared to a profit of approximately RM0.3 million in 2022[130]. - The Group did not recommend the distribution of a final dividend for the year ended 31 December 2023, consistent with 2022[131]. Revenue Breakdown - Revenue from outsourced document management services decreased from approximately RM77.6 million in 2022 to approximately RM73.7 million in 2023[17]. - Revenue from outsourced insurance risk analysis and marketing services in the PRC decreased from approximately RM21.9 million in 2022 to approximately RM13.4 million in 2023[17]. - Total revenue for the year ended December 31, 2023, was approximately RM93.8 million, a decrease from RM105.7 million in 2022, with outsourced services contributing approximately 98.8% of total revenue[64]. - Revenue from outsourced document management services accounted for approximately 78.6% of total revenue in 2023, down from 73.4% in 2022, with a decrease of RM3.9 million or 5.0% due to a shift towards paperless document delivery[68]. - Revenue from outsourced insurance risk analysis and marketing services represented approximately 14.3% of total revenue in 2023, down from 20.7% in 2022, primarily due to decreased demand linked to COVID-19 impacts[71]. - Revenue from the distribution and sales of medical equipment represented approximately 1.2% of total revenue in 2023, an increase from 0.4% in 2022, amounting to RM1.2 million[95]. Financial Ratios and Position - The current ratio improved to 5.3 times in 2023 from 4.7 times in 2022, reflecting a 13.6% increase[11]. - The gearing ratio decreased from 15.8% in 2022 to 8.5% in 2023, a reduction of 7.3 percentage points[11]. - Total loans and borrowings decreased by approximately RM6.5 million or 48.5%, from RM13.4 million in 2022 to RM6.9 million in 2023[132]. - The Group's gearing ratio improved to approximately 8.5% as at 31 December 2023, down from approximately 15.8% in 2022, due to reduced interest-bearing bank loans[118]. - As at 31 December 2023, the Group maintained a cash and bank balance of approximately RM42.7 million, down from RM53.9 million in 2022[112]. - Cash and bank balances decreased to approximately RM42.7 million as of December 31, 2023, down from RM53.9 million as of December 31, 2022[135]. - The Group's capital gearing ratio improved to approximately 8.5% as of December 31, 2023, compared to 15.8% in the previous year, reflecting a reduction in total borrowings[145]. Strategic Initiatives - The Group aims to focus on developing IT applications and services to maintain a competitive edge in the market[14]. - The adoption of SaaS is accelerating changes in the outsourced document management services industry, impacting future strategies[21]. - The management team will continue to explore new business opportunities in the PRC to enhance growth[16]. - The Group's competitive strengths include proprietary technology and an extensive customer base, which are crucial for future developments[16]. - The company aims to strengthen its business model to be "Future Ready" by investing in scaling up solutions and services to capitalize on market opportunities[49]. - The Group plans to enhance its data processing and technical capacity by engaging external software development vendors for new applications within the Streamline Suite[58]. - The Group aims to develop advanced internet cloud technology and big data analytics to create efficient service systems for insurance and related industries in China[66]. - The Group plans to engage external software development vendors and develop new applications, including livestreaming and AI capabilities, as part of its software development plan[185]. Operational Developments - The company is converting an existing building acquired in 2022 into a new Data Centre to enhance its IT infrastructure and expand outsourced document management services[33]. - The new Data Centre facility in Malaysia will enhance the company's document hosting capabilities for electronic distribution and enterprise software solutions[47]. - The company has invested approximately RM6.2 million (around HK$12.0 million) in the design and project management of the Data Centre since 2020[81]. - The acquisition of a building in Malaysia for the Data Centre was completed for RM12.0 million (approximately HK$22.3 million), with RM10.3 million funded from the net proceeds of a share offer[81]. - The conversion of the acquired building into a Data Centre began in June 2022 and is expected to be completed by the end of 2025[81]. - The Group has successfully developed proprietary enterprise software applications to drive digital transformation for large companies in the banking, insurance, and retail industries in Malaysia[54]. Marketing and Sales Efforts - The Group plans to reallocate unutilized net proceeds from previous fundraising efforts to enhance marketing and promotion efforts to attract new customers[159]. - The Group has completed certain marketing and sale activities in Singapore and Vietnam, which are in line with the use of net proceeds purpose as set out in the 2023 Announcement[163]. - The Group plans to formulate enhanced marketing and sale strategies to promote its products and services in Singapore and Vietnam[163]. - The Group has encountered delays in engaging suitable external service providers for marketing and customer support services in Singapore and Vietnam[163]. - The Group aims to step up marketing and sales efforts to reach new customers, with a current utilisation percentage of 10.2%[163]. - The Group's marketing and sales efforts will include engaging external service providers for customer support services related to its Streamline Suite products[185]. Management and Governance - Ms. Zhang Ying was appointed as an Executive Director on May 1, 2023, bringing over 18 years of experience in marketing and technology, particularly in AI[194]. - Dr. Wu Xianyi has over 30 years of experience in actuarial science and statistics, serving as a Non-Executive Director since July 30, 2021[197]. - Ling Sheng Shyan has been a Non-Executive Director since February 15, 2019, providing strategic advice to the Group[198]. - Dr. Zeng Jianhua, appointed as an Independent Non-Executive Director on June 7, 2021, has over nine years of experience in the biomedical and healthcare industry[200].
C-LINK SQ-NEW(01463) - 2023 - 年度财报