Financial Performance - Revenue from customer contracts for the six months ended June 30, 2024, was RM 49,624,000, an increase of 6.1% compared to RM 45,861,000 for the same period in 2023[1] - Gross profit for the same period was RM 10,695,000, up 13.6% from RM 9,413,000 in 2023[1] - The company reported a profit before tax of RM 2,212,000, compared to a loss of RM 2,863,000 in the previous year[1] - Net profit for the period was RM 1,021,000, a significant recovery from a loss of RM 3,986,000 in the prior year[1] - Total comprehensive income for the period amounted to RM 457,000, compared to a loss of RM 2,609,000 in 2023[2] - Basic and diluted earnings per share for the period were RM 0.04, compared to a loss of RM 0.18 in the same period last year[2] - Total revenue for the six months ended June 30, 2024, was approximately MYR 49.6 million, compared to MYR 45.9 million for the same period in 2023, reflecting an increase in revenue[33] - Pre-tax profit turned to approximately RM 2.2 million from a pre-tax loss of RM 2.9 million in the previous period[45] - Net profit for the period was approximately RM 1.0 million, compared to a loss of RM 4.0 million in the previous period[47] Assets and Liabilities - Non-current assets increased to RM 22,939,000 as of June 30, 2024, from RM 20,728,000 at the end of 2023[3] - Current assets rose to RM 93,223,000, up from RM 68,877,000 at the end of 2023[3] - Total assets reached RM 338,254,000, compared to RM 103,620,000 at the end of 2023[4] - The company's equity increased to RM 316,321,000 from RM 85,838,000 at the end of 2023[4] - Total liabilities increased from 4,864 thousand MYR as of December 31, 2023, to 5,538 thousand MYR as of June 30, 2024[23] - Total loans and borrowings decreased by 18.7% to approximately RM 5.6 million as of June 30, 2024[49] - The capital debt ratio decreased to approximately 1.8% as of June 30, 2024, from 8.5% as of December 31, 2023, due to a reduction in bank loans from MYR 6.7 million to MYR 5.6 million[55] Revenue Breakdown - Revenue from Malaysia decreased to 34,446 thousand Ringgit for the six months ended June 30, 2024, down from 39,776 thousand Ringgit in 2023, a decline of 8.3%[10] - Revenue from China significantly increased to 13,765 thousand Ringgit in the first half of 2024, compared to 4,916 thousand Ringgit in the same period of 2023, marking a growth of 179.5%[10] - The top five customer groups contributed 59.3% of total revenue, with Bank Group A alone accounting for 21.3% or 10,573 thousand Ringgit[11] - Revenue from outsourced document management services decreased by 15.8% to approximately RM 32.2 million, accounting for about 65.0% of total revenue for the six months ended June 30, 2024[34] - Revenue from outsourced insurance risk analysis and marketing services increased to approximately RM 11.4 million, representing about 23.0% of total revenue, up from 9.7% in the previous period[35] - Revenue from enterprise software solutions rose by 36.2% to approximately RM 3.6 million, accounting for about 7.3% of total revenue[36] - Revenue from medical equipment and pharmaceutical product distribution increased to approximately RM 2.2 million, representing about 4.5% of total revenue[37] Employee and Management Costs - Employee costs for the six months ended June 30, 2024, were 5,606 thousand Ringgit, down from 10,627 thousand Ringgit in 2023, a reduction of 47.3%[16] - Total remuneration for key management personnel decreased from 5,970 thousand MYR in the six months ended June 30, 2023, to 554 thousand MYR in the same period of 2024[27] - Total salary costs for the six months ended June 30, 2024, were approximately MYR 5.6 million, down from MYR 10.6 million for the same period in 2023[61] Acquisitions and Investments - The company completed the acquisition of Shengji, gaining a comprehensive service platform for internet hospital and physical clinic services in China, enhancing its market presence[29] - The company issued 474,251,497 shares at an issue price of 1 MYR per share to acquire 100% of the issued shares of Shengji Investment Co., Ltd., amounting to approximately 1,580,838 MYR[25] - The group completed the acquisition of 100% of Shengji's issued shares for a total consideration of HKD 474,251,497 on January 26, 2024[57] - The group has not engaged in any significant investments or acquisitions other than the aforementioned acquisition during the six months ended June 30, 2024[57] Future Plans and Developments - The company plans to expand its data processing and technology capabilities by transforming an acquired building into a new data center and hiring external software developers for new applications[30] - The company aims to explore regional expansion opportunities in Malaysia, Singapore, Vietnam, and China to increase market share[30] - Future plans include developing advanced internet cloud technology and big data analytics for the insurance sector in China, with potential opportunities in health management and remote medical services[32] - The new data center in Malaysia, expected to be operational by the end of 2025, will enhance the company's document hosting capabilities and support its outsourcing services[30] - Approximately MYR 6.2 million (around HKD 12.0 million) has been invested in the design and project management of the new data center since 2020[31] Governance and Compliance - The audit committee, composed of three independent non-executive directors, has reviewed the interim financial information for the six months ending June 30, 2024[69] - The company has adhered to the corporate governance code, with no deviations reported for the six months ending June 30, 2024[68] - The company has maintained a prudent treasury policy and did not use any risk hedging instruments during the reporting period[53] Share Offering and Proceeds Utilization - The net unutilized proceeds from the share offering as of December 31, 2023, amount to approximately HKD 38.7 million[65] - 89.8% of the net proceeds are allocated to enhancing technical capabilities and developing other vertical/parallel market capabilities, with HKD 66.2 million planned for this purpose[64] - 76.7% of the net proceeds, equating to HKD 56.5 million, is designated for hiring external software development vendors and developing new applications within the software development plan[64] - The company plans to strengthen marketing efforts to acquire new customers, with 10.2% of the net proceeds (HKD 7.5 million) allocated for this initiative[64] - The actual amount utilized as of June 30, 2024, is HKD 36.0 million, with HKD 37.7 million expected to be utilized by the same date[64] - The company has not issued any securities to raise cash during the reporting period[66] Miscellaneous - The company has incorporated AI functionalities into its software development plan for existing and new applications[64] - The mid-term performance announcement will be published on the Hong Kong Stock Exchange and the company's website[70] - The mid-term report for the six months ending June 30, 2024, will be released at an appropriate time[70] - The board of directors is chaired by Ma Shengcong, who is also the executive director[70] - The executive directors include Ma Shengcong and Zhang Ying, while the non-executive directors are Ling Sheng Shyan and Dr. Wu Xianyi[70] - Independent non-executive directors include Yang Junhui, Qian Jian Guang, and Xie Yaozu[70]
C-LINK SQ-NEW(01463) - 2024 - 中期业绩