Microlink Berhad : Financial Year 2022 3rd Quarter Announcement

MICROLINK SOLUTIONS BERHAD

Company no. 200301018362 (620782 - P)

(Incorporated in Malaysia)

INTERIM FINANCIAL STATEMENTS FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021
Table of contents	Page
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	1
Condensed Consolidated Statement of Financial Position	2
Condensed Consolidated Statement of Changes in Equity	3
Condensed Consolidated Statement of Cash Flow	4
Notes to the Interim Financial Report	5 - 6
Explanatory notes pursuant to Appendix 9B of the ACE Market Listing Requirements	7 - 9

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021

Revenue

Cost of sales

Gross profit

Other operating income

Selling and distribution expenses

Administrative expenses

Finance costs

Other operating expenses

Profit before taxation

Taxation

Profit for the period

Other comprehensive income, net of tax

- item that may be reclassified subsequently to profit or loss:

Foreign currency translations for foreign operations, net of tax

Other comprehensive income for the period, net of tax

Total comprehensive income for the period

Profit attributable to:

Owners of the parent

Non-controlling interests

INDIVIDUAL QUARTER	CUMULATIVE PERIOD
THREE MONTHS ENDED	NINE MONTHS ENDED
31 DECEMBER	31 DECEMBER
2021	2020	2021	2020
RM'000	RM'000	RM'000	RM'000
Unaudited	Unaudited	Unaudited	Unaudited
61,038	45,052	165,963	141,234
(41,179)	(32,321)	(113,237)	(110,162)
19,859	12,731	52,726	31,072
1,103	106	2,206	4,182
(255)	(236)	(807)	(717)
(7,237)	(6,564)	(21,009)	(16,974)
(328)	(397)	(1,106)	(1,435)
(2,683)	(445)	(6,640)	(2,518)
10,459	5,195	25,370	13,610
(3,080)	(78)	(4,404)	(1,013)
7,379	5,117	20,966	12,597

-	3	1	12
-	3	1	12
7,379	5,120	20,967	12,609
7,375	5,020	21,019	12,477
4	97	(53)	120
7,379	5,117	20,966	12,597

Total comprehensive income attributable to:
Owners of the parent	7,374	5,019	21,015	12,474
Non-controlling interests	5	101	(48)	135
	7,379	5,120	20,967	12,609
Earnings per share (sen):
Basic	3.04	2.63	8.68	6.53
Diluted	3.04	2.63	8.68	6.53

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2021 and the accompanying explanatory notes attached to the interim financial statements.

Page 1 of 9

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P)) Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

ASSETS

Non-Current Assets

Property, plant and equipment

Right-of-use assets

Investment in Joint Venture

Goodwill

Software development expenditure

Other investments

Lease receivables

Deferred tax assets

Current Assets

Inventories

Contract costs

Other investments

Trade receivables

Other receivables, deposits and prepayments

Contract assets

Lease receivables

Amount owing by ultimate holding company

Amount owing by immediate holding company

Current tax assets

Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES

Equity attributable to owners of the Parent

Share capital

Reserves

Retained Earnings

Non-controlling interests

TOTAL EQUITY

Non-Current Liabilities

Provision for gratuity obligations

Other payables and accruals

Lease liabilities

Current Liabilities

Trade payables

Other payables and accruals

Contract liabilities

Amount owing to ultimate holding company

Amount owing to immediate holding company

Borrowings

Lease liabilities

Current tax liabilities

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

As At	As At
31 December 2021	31 March 2021
RM'000	RM'000
Unaudited	Audited

766	288
4,466	5,385
5	5
18,409	18,409
79,371	63,313
105	105
-	2,317
3,010	3,010
106,132	92,832
2,761	1,127
2,684	5,495
483	99
36,769	32,768
36,525	10,150
18,176	7,389
328	2,085
-	23,526
-	15,461
3,608	3,714
13,076	11,014
114,410	112,828
220,542	205,660

108,526	105,583
38	42
34,871	13,852
143,435	119,477
439	487
143,874	119,964
2,389	2,135
157	157
4,657	6,822
7,203	9,114
15,695	18,667
17,499	15,396
12,178	17,704
-	59
-	65
19,041	20,388
3,100	3,274
1,952	1,029
69,465	76,582
76,668	85,696
220,542	205,660

Net assets per share (RM)

0.59

0.50

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2021 and

the accompanying explanatory notes attached to the interim financial statements.

Page 2 of 9

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021

<---------------------------------------	Attributable to Owners of the Parent	---------------------------------------	>
<-----------------	Non-distributable	------------------->
		Retained	Total
	Exchange	Earnings /	attributable to	Non-
Share	Translation	(Accumulated	owners of	controlling	Total
capital	reserve	losses)	the parent	interests	equity
RM	RM	RM	RM	RM	RM

Unaudited

9 months ended 31 December 2021

At 1 April 2021 (audited) Profit for the period

Foreign currency translation for foreign operations Total comprehensive income for the period

Transaction with owners

Shares issued pursuant to Employee Share Grant Plan ("ESGP")

Total transactions with owners

At 31 December 2021

Unaudited

9 months ended 31 December 2020

105,583		42	13,852	119,477	487	119,964
-	-		21,019	21,019	(53)	20,966
-		(4)	-	(4)	5	1
-		(4)	21,019	21,015	(48)	20,967
2,943	-		-	2,943	-	2,943
2,943	-		-	2,943	-	2,943
108,526		38	34,871	143,435	439	143,874
			-

At 1 April 2020 (audited) Profit for the period

Foreign currency translation for foreign operations Total comprehensive income for the period

Transaction with owners

Ordinary shares issued pursuant to private placement Shares issued pursuant to Employee Share Grant Plan

Dividends paid

Total transactions with owners

At 31 December 2020

52,833		45	(14,215)	38,663	444	39,107
-	-		12,477	12,477	120	12,597
-		(3)	-	(3)	15	12
-		(3)	12,477	12,474	135	12,609
50,080	-		-	50,080	-	50,080
2,207	-		-	2,207	-	2,207
-	-		(1,841)	(1,841)	-	(1,841)
52,287	-		(1,841)	50,446	-	50,446
105,120		42	(3,579)	101,583	579	102,162

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2021 and the accompanying explanatory notes attached to the interim financial statements.

Page 3 of 9

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021 (The figures have not been audited)

	Preceding Year	Current Year		Preceding Year
	3 months ended	9 months ended		9 months ended
	31 March 2017	31 December 2021		31 December 2020
	RM'000	RM'000		RM'000
	Unaudited	Unaudited		Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	2,522	25,370	13,610
Adjustments for non-cash items:
Amortisation of software development expenditure	2,761	5,440	498
Bad debts written off	-	2	-
Depreciation of property, plant and equipment	838	119	144
Depreciation of right-of-use assets	50	971	636
Employee share grant plan expenses		1,962	1,390
Interest expense	2,516	1,252	1,720
Interest income	(551)	(218)	(304)
Net unrealised gain on foreign exchange	12	(27)	(11)
Reversal of impairment loss on software development expenditure		-	(2,417)
Provision for gratuity obligations	245	254	-
Fair value gain on Investment		(70)	-
Gain on disposal of quoted investment		(1,131)	-
Operating profit before working capital changes	12,768	33,924	15,266
Net changes in assets	18,237	(31,743)	28,480
Net changes in liabilities	(18,424)	(3,800)	(51,223)
Net cash from operations	12,581	(1,619)	(7,477)
Interest received		9	80
Tax paid	(5,000)	(3,375)	(1,993)
Tax refunded	48	-	2
Net cash used in operating activities	7,629	(4,985)	(9,388)
CASH FLOWS FROM INVESTING ACTIVITIES
Addition of software development expenditure	(35,483)	(21,498)	(292)
Repayment from / (to) ultimate holding company		16,747	(23,953)
Repayment from / (to) immediate holding company		16,320	(15,493)
Interest received	551	209	223
Withdrawal of deposits pledged to licensed banks	(701)	-	2,918
Disposal / (Purchase) of other investments	65	817	(2)
Purchase of property, plant and equipment	(375)	(650)	(170)
Fixed deposits pledged with licensed banks		(428)	-
Net cash from / (used in) investing activities	(35,943)	11,517	(36,769)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		-	(1,841)
Interest paid	(2,516)	(764)	(1,362)
Proceeds from issue of shares pursuant to private placement		-	50,080
Drawdown of borrowings	5,035	(1,690)	4,285
Payments of lease liabilities	17,757	(2,827)	(4,259)
Net cash (used in) / from financing activities	20,276	(5,281)		46,903
NET INCREASE IN CASH AND CASH EQUIVALENTS	(8,038)	1,251	746
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE PERIOD	24,740	4,121	13,616
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS	9	41	46
CASH AND CASH EQUIVALENTS AT END
OF THE PERIOD	16,711	5,413	14,408
		-

* Cash and cash equivalents at the beginning and end of the financial period are net of deposits pledged to banks.

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2021 and the accompanying explanatory notes attached to the interim financial statements.

Page 4 of 9