Microlink Berhad : Financial Year 2022 4th Quarter Announcement

MICROLINK SOLUTIONS BERHAD

Company no. 200301018362 (620782 - P)

(Incorporated in Malaysia)

INTERIM FINANCIAL STATEMENTS FOR THE FOURTH QUARTER ENDED 31 MARCH 2022
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 FOURTH QUARTER ENDED 31 MARCH 2022

	INDIVIDUAL QUARTER		CUMULATIVE PERIOD
	THREE MONTHS ENDED		TWELVE MONTHS ENDED
	31 MARCH		31 MARCH
	2022	2021	2022	2021
	RM'000	RM'000		RM'000	RM'000
	Unaudited	Unaudited		Unaudited	Audited
Revenue	51,913	36,943	217,876	178,112
Cost of sales	(32,665)	(31,009)	(145,902)	(139,676)
Gross profit	19,248	5,934	71,974	38,436
Other operating income	1,280	36,439	3,486	41,454
Selling and distribution expenses	(344)	(214)	(1,151)	(932)
Administrative expenses	(9,621)	(9,033)	(30,630)	(27,642)
Finance costs	(348)	(366)	(1,454)	(2,008)
Other operating expenses	(2,866)	(12,762)	(9,506)	(16,122)
Profit before taxation	7,349	19,998	32,719	33,186
Taxation	(2,306)	(1,066)	(6,710)	(1,395)
Profit for the period	5,043	18,932	26,009	31,791
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	-	-	1	11
Other comprehensive income for the period, net of tax	-	-	1	11
Total comprehensive income for the period	5,043	18,932	26,010	31,802
Profit attributable to:
Owners of the parent	5,001	19,029	26,020	31,762
Non-controlling interests	42	(97)		(11)	29
	5,043	18,932	26,009	31,791
Total comprehensive income attributable to:
Owners of the parent	5,001	19,029	26,016	31,759
Non-controlling interests	42	(97)		(6)	43
	5,043	18,932	26,010	31,802
Earnings per share (sen):
Basic	2.69	7.89	10.42	15.87
Diluted	2.69	7.89		10.42	15.87

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.

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

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2022

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

Amounts owing to related companies

Borrowings

Lease liabilities

Current tax liabilities

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

As At	As At
31 March 2022	31 March 2021
RM'000	RM'000
Unaudited	Audited
759	287
4,140	5,385
-	5
18,409	18,409
102,425	63,313
105	105
-	2,317
3,011	3,011
128,849	92,832
1,463	1,127
4,234	5,495
3,861	99
55,384	32,768
19,862	10,150
15,771	7,389
328	2,085
-	23,526
-	15,461
5,588	3,714
63,122	11,014
169,613	112,828
298,462	205,660
161,896	105,583
38	42
39,872	13,852
201,806	119,477

481487

202,287119,964

2,633	2,135
158	158
3,969	6,822
6,760	9,115
25,118	17,374
12,556	15,395
16,204	17,704
-	59
806	65

• 1,293
  27,91520,388

3,106	3,274
3,710	1,029
89,415	76,581
96,175	85,696
298,462	205,660

Net assets per share (RM)

0.74

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.

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MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FOURTH QUARTER ENDED 31 MARCH 2022

<---------------------------------------	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

12 months ended 31 March 2022

At 1 April 2021 (audited) Profit for the year

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

Transaction with owners

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

("ESGP")

Total transactions with owners

At 31 March 2022

Audited

12 months ended 31 March 2021

105,583			13,852	119,435	487	119,922
-	-		26,020	26,020	(11)	26,009
-		(4)	-	(4)	5	1
-		(4)	26,020	26,016	(6)	26,010
53,370	-		-	53,370	-	53,370
2,943	-		-	2,943	-	2,943
56,313	-		-	56,313	-	56,313
161,896		(4)	39,872	201,764	481	202,245
			-

At 1 April 2020 (audited) Profit for the year

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

Transaction with owners

Ordinary shares issued under restricted issue

Shares issued pursuant to Employee Share Grant Plan Dividends paid

Total transactions with owners

At 31 March 2021

52,833		45	(14,215)	38,663	444	39,107
-	-		31,762	31,762	29	31,791
-		(3)	-	(3)	14	11
-		(3)	31,762	31,759	43	31,802
50,080	-		-	50,080	-	50,080
2,670	-		-	2,670	-	2,670
-	-		(3,695)	(3,695)	-	(3,695)
52,750	-		(3,695)	49,055	-	49,055
105,583		42	13,852	119,477	487	119,964

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.

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MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE FOURTH QUARTER ENDED 31 MARCH 2022

(The figures have not been audited)

	Preceding Year	Current Year		Preceding Year
	3 months ended	12 months ended		12 months ended
	31 March 2017	31 March 2022		31 March 2021
	RM'000	RM'000		RM'000
	Unaudited	Unaudited		Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	2,522	32,719	33,186
Adjustments for non-cash items:
Amortisation of software development expenditure	2,761	7,816	1,938
Bad debts written off	-	2	-
Depreciation of property, plant and equipment	838	1,449	1,155
Impairment losses on amount owing by ultimate holding company	64	824	56
Impairment losses on amount owing by immediate holding company	27	-	12
Impairment losses on trade receivables	33	270	10,789
Impairment losses on contract asset		69	79
Interest expense	2,516	1,682	2,008
Interest income	(551)	(312)	(372)
Inventories written (back) / off	-	(215)	1,312
Gain on disposal property, plant and equipment	1	-	(94)
Net unrealised (gain) / loss on foreign exchange	12	(27)	16
Reversal of impairment loss on
- trade receivables		(608)	(841)
- software development expenditure		-	(38,744)
Provision for gratuity obligations	245	497	227
Fair value gain on Investment		(238)	-
Share options granted under Employee Share Grant Plan		2,943	2,670
Lease concession		-	(36)
Gain on disposal of quoted investment		(1,711)	-
Operating profit before working capital changes	12,768	45,160	13,361
Net changes in assets	18,237	(7,930)	33,871
Net changes in liabilities	(18,424)	2,099	(39,297)
Net cash from operations	12,581	39,329	7,935
Interest received		-	112
Tax paid	(5,000)	9	(3,240)
Tax refunded	48	(5,903)	2
Net cash from operating activities	7,629	33,435	4,809
CASH FLOWS FROM INVESTING ACTIVITIES
Addition of software development expenditure	(35,483)	(46,928)	(23,544)
Repayment to ultimate holding company		(4,582)	(24,004)
Repayment from / (to) immediate holding company		16,130	(15,229)
Interest received	551	303	260
(Placement) / withdrawal of deposits pledge as securities	(701)	(448)	2,922
(Purchase) / Disposal of other investments	65	(1,812)	11
Purchase of property, plant and equipment	(375)	(677)	(193)
Proceeds from disposal of property, plant and equipment	-	-	188
Disposal / (Acquisition) of interests in joint venture		5	(5)
Net cash used in investing activities	(35,943)	(38,009)	(59,594)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		-	(3,695)
Interest paid	(2,516)	(1,055)	(1,372)
Proceeds from issue of shares pursuant to private placement		53,370	-
Proceeds from ordinary shares issued under restricted issue		-	50,080
Drawdown of borrowings	5,035	7,896	6,689
Payments of lease liabilities	17,757	(3,647)	(6,460)
Net cash from financing activities	20,276	56,564		45,242
NET INCREASE IN CASH AND CASH EQUIVALENTS	(8,038)	51,990	(9,543)
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	48
CASH AND CASH EQUIVALENTS AT END
OF THE PERIOD	16,711	56,152	4,121
		-

* 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.

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