K One Technology : 1st Quarter 2024

K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST QUARTER ENDED 31 MARCH 2024

K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Comprehensive Income

For The First Quarter Ended 31 March 2024

	3 months ended	3 months ended
Figures in RM'000
	31.3.2024	31.3.2023	31.3.2024	31.3.2023
	Unaudited	Unaudited	Unaudited	Unaudited
Operating revenue	44,891	40,947	44,891	40,947
Cost of sales	(38,619)	(35,783)	(38,619)	(35,783)
Gross profit	6,272	5,164	6,272	5,164
Other income	2,759	608	2,759	608
Interest income	175	165	175	165
Operating expense	(6,907)	(6,165)	(6,907)	(6,165)
Profit/(Loss) before tax	2,299	(228)	2,299	(228)
Income tax expense	(614)	(197)	(614)	(197)
Profit/(Loss) for the period	1,685	(425)	1,685	(425)
Non-controlling interests	138	-	138	-
Profit/(Loss) after tax after
non-controlling interests	1,823	(425)	1,823	(425)
Profit/(Loss) attributable to:
Owners of the Parent	1,823	(425)	1,823	(425)
Non-controlling interests	(138)	-	(138)	-
	1,685	(425)	1,685	(425)
Earnings/(Loss) per share
EPS/(LPS) attributable to
owners of the Parent (sen):
Basic EPS/(LPS)	0.22	(0.05)	0.22	(0.05)
Diluted EPS/(LPS)	0.22	(0.05)	0.22	(0.05)

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Comprehensive Income

For The First Quarter Ended 31 March 2024 (Cont'd)

	3 months ended	12 months ended
Figures in RM'000
	31.3.2024	31.3.2023	31.3.2024	31.3.2023
	Unaudited	Unaudited	Unaudited	Unaudited
Profit/(Loss) for the period	1,685	(425)	1,685	(425)
Items that may be subsequently
reclassified to profit:
Foreign currency translation	108	45	108	45
Total comprehensive	1,793	(380)	1,793	(380)
income/(loss)
Total comprehensive
income/(loss) attributable to:
Owners of the Parent	1,931	(380)	1,931	(380)
Non-controlling interests	(138)	-	(138)	-
	1,793	(380)	1,793	(380)

The above condensed consolidated statements of comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2023 and the accompanying explanatory notes attached to the interim financial statements.

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Financial Position

As At 31 March 2024

	Unaudited	Audited
Figures in RM'000	31.3.2024	31.12.2023
ASSETS
Non-Current Assets
Property, plant and equipment	19,144	19,329
Intangible assets	2,448	2,068
Goodwill on consolidation	22,676	22,676
Investment property	4,512	4,536
Deferred tax assets	3,086	3,302
Total Non-Current Assets	51,866	51,911
Current Assets
Inventories	27,912	33,049
Trade receivables	40,023	29,185
Other receivables	3,728	4,599
Contract costs	4,988	3,943
Tax recoverable	956	744
Short term cash investments	6,146	8,634
Cash and bank balances	40,755	39,924
Total Current Assets	124,508	120,078

TOTAL ASSETS

176,374

171,989

EQUITY AND LIABILITIES
Equity
Share capital	123,644	123,644
Reserves	106	(2)
Non-controlling interests	1,316	1,454
Retained earnings	(6,817)	(8,640)
Total Equity	118,249	116,456

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Financial Position

As At 31 March 2024 (Cont'd)

	Unaudited	Audited
Figures in RM'000	31.3.2024	31.12.2023
EQUITY AND LIABILITIES (Cont'd)
Non-Current Liabilities
Other payable	-	33
Lease Liability	392	447
Total Non-Current Liabilities	392	480
Current Liabilities
Trade payables	36,840	35,369
Other payables and accruals	7,321	6,313
Contract liabilities	13,189	13,024
Lease liability	215	211
Tax payable	165	136
Total Current Liabilities	57,733	55,053
Total Liabilities	58,125	55,533
TOTAL EQUITY AND LIABILITIES	176,374	171,989
Net assets per share attributable to Owners of the	14.21	14.00
Parent (sen)

The above condensed consolidated statements of financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2023 and the accompanying explanatory notes attached to the interim financial statements.

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Changes in Equity

For The First Quarter Ended 31 March 2024

	----------------------	Attributable to Owners of the Parent---------------- >	Non-
							controlling	Total
							Interests	Equity
		Non-distributable		Distributable
			Foreign
		Share	Currency
	Share	Option	Translation	Other	Retained
Figures in RM'000	Capital	Reserve	Reserve	Reserve	Earnings	Sub-Total
At 1 January 2024	123,644	-	(2)	-	(8,640)	112,002	1,454	116,456
Comprehensive
income
Profit for the period				-	1,823	1,823	(138)	1,685
Other comprehensive
income
Foreign currency	-	-	108	-	-	108	-	108
translation difference
Total comprehensive	-	-	108	-	1,823	1,931	(138)	1,793
Income
At 31 March 2024
123,644	-	106	-	(6,817)	116,933	1,316	118,249

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Changes in Equity

For The Fourth Quarter Ended 31 December 2023 (Cont'd)

	----------------------	Attributable to Owners of the Parent	-------------->	Non-
							controlling	Total
							Interests	Equity
		Non-distributable		Distributable
			Foreign
		Share	Currency
	Share	Option	Translation	Other	Retained
Figures in RM'000	Capital	Reserve	Reserve	Reserve	Earnings	Sub-Total
At 1 January 2023	123,644	-	(40)	-	(8,995)	114,609	-	114,609
Comprehensive loss
Loss for the period	-	-	-	-	(425)	(425)	-	(425)
Other comprehensive
income
Foreign currency	-	-	45	-	-	45	-	45
translation difference
Total comprehensive	-	-	45	-	(425)	(380)	-	(380)
income/(loss)
At 31 March 2023	123,644	-	5	-	(9,420)	114,229	-	114,229

The above condensed consolidated statements of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2023 and the accompanying explanatory notes attached to the interim financial statements.

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Cash Flows

For The First Quarter Ended 31 March 2024

Figures in RM'000	3 months ended
	31.3.2024	31.3.2023
CASH FLOW FROM OPERATING ACTIVITIES
Profit/(Loss) before taxation	2,299	(228)
Adjustments for:
Amortisation of computer software	4	4
Depreciation of property, plant and equipment	800	629
Depreciation of investment property	24	24
Fair value gain on short term cash investment	(12)	-
Interest income	(175)	(165)
Foreign exchange gain - unrealized	(235)	(535)
Interest expense on lease liabilities	11	-
Inventories written down	-	538
Impairment loss on trade receivables	-	43
Operating profit before working capital changes	2,716	310
Changes in working capital:
Decrease/(Increase) in inventory	5,137	(774)
(Increase)/Decrease in receivables	(11,012)	995
Increase in payables	2,647	2,564
Net cash (used in)/generated from operations	(512)	3,095
Taxation paid	(364)	(409)
Interest income	175	165
Net cash (used in)/generated from operating activities	(701)	2,851
CASH FLOW FROM INVESTING ACTIVITIES
Withdrawal/(Placement) of short-term cash fund	2,500	(3,000)
Withdrawal of deposits with licensed bank	3,376	-
Capitalisation of intangible assets	(384)	-
Purchase of property, plant and equipment	(615)	(757)
Net cash generated from/(used in) investing activities	4,877	(3,757)
CASH FLOW FROM FINANCING ACTIVITIES
Interest paid on lease liabilities	(11)	-
Payment of lease liabilities	(52)	-
Net cash used in financing activities	(63)	-

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Condensed Consolidated Statements of Cash Flows For

The First Quarter Ended 31 March 2024 (Cont'd)

Figure in RM'000	3 months ended
	31.3.2024	31.3.2023
Net increase/(decrease) in cash and cash equivalents	4,113	(906)
Effect of exchange rate changes	117	242
Cash and cash equivalents at beginning of the financial year	17,927	17,876
CASH AND CASH EQUIVALENT AT END OF THE PERIOD	22,157	17,212
COMPOSITION OF CASH AND CASH EQUIVALENTS
Figure in RM'000	3 months ended
	31.3.2024	31.3.2023
Cash and bank balances	22,157	17,212
Deposit placed with licensed banks	18,598	19,500
	40,755	36,712
Less: Non-short term fixed deposits	(18,598)	(19,500)
	22,157	17,212

The above condensed consolidated statements of cash flows should be read in conjunction with the audited financial statements for the year ended 31 December 2023 and the accompanying explanatory notes attached to the interim financial statements.

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K-One Technology Berhad

[Registration No. 200101004001 (539757-K)]

Part A: Explanatory Notes Pursuant to Financial Reporting Standard 134 ("FRS 134") - Interim Financial Reporting

1. BASIS OF PREPARATION

The interim financial statements are unaudited and has been prepared in accordance with MFRS 134 - Interim Financial Reporting issued by the Malaysian Accounting Standards Board (MASB) and Rule 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) for the ACE Market and should be read in conjunction with the audited statutory financial statements presented for the financial year ended 31 December 2023.

The accounting policies and presentation adopted for this interim report are consistent with those adopted in the audited financial statements for the financial year ended 31 December 2023, except for the following Malaysian Financial Reporting Standards (MFRSs) and IC Interpretations (IC Int):

Amendments/Improvements to MFRSs

MFRS 7	Financial Instruments: Disclosures
MFRS 16	Leases
MFRS 101	Presentation of Financial Statements
MFRS 107	Statement of Cash Flows

1. AUDITORS' REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENT
   The audited financial statements of the preceding financial year were not subjected to any qualification.
2. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS
   The K-One Group's Electronic Manufacturing Services (EMS) business is predominantly export-oriented (97.8% export in 1Q'24; 93.5% export in 1Q'23) and is subject to seasonal fluctuations. Business in the second half of the year is normally stronger than the first half due to surge in demand attributed mainly to the consumer electronics market in conjunction with Christmas and New Year seasons overseas.
   Revenue contribution from the Cloud Computing (Cloud) business is mainly derived from Malaysia, Singapore and Indonesia. Cloud revenue is not subject to any obvious seasonality.

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