Microlink : Financial Year 2023 2nd Quarter Announcement

MICROLINK SOLUTIONS BERHAD

Company no. 200301018362 (620782 - P)

(Incorporated in Malaysia)

INTERIM FINANCIAL STATEMENTS FOR THE SECOND QUARTER ENDED 30 SEPTEMBER 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

Page 1 of 9

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SECOND QUARTER ENDED 30 SEPTEMBER 2022

	INDIVIDUAL QUARTER		CUMULATIVE PERIOD
	THREE MONTHS ENDED		SIX MONTHS ENDED
	30 September		30 September
	2022	2021	2022	2021
	RM'000	RM'000		RM'000	RM'000
	Unaudited	Unaudited		Unaudited	Unaudited
Revenue	56,006	62,991	109,863	104,925
Cost of sales	(36,310)	(45,120)	(73,347)	(72,058)
Gross profit	19,696	17,871	36,516	32,867
Other operating income	1,149	944	1,353	1,103
Selling and distribution expenses	(491)	(271)	(937)	(552)
Administrative expenses	(10,194)	(7,990)	(17,083)	(13,772)
Finance costs	(349)	(346)	(813)	(778)
Other operating expenses	(1,587)	(2,125)	(3,151)	(3,957)
Profit before taxation	8,224	8,083	15,885	14,911
Taxation	(1,005)	(1,024)	(2,025)	(1,324)
Profit for the period	7,219	7,059	13,860	13,587
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	(137)	1	(136)	1
Other comprehensive income for the period, net of tax	(137)	1	(136)	1
Total comprehensive income for the period	7,082	7,060	13,724	13,588
Profit attributable to:
Owners of the parent	7,342	7,121	13,983	13,644
Non-controlling interests	(123)	(62)		(123)	(57)
	7,219	7,059	13,860	13,587
Total comprehensive income attributable to:
Owners of the parent	7,202	7,118	13,842	13,641
Non-controlling interests	(120)	(58)		(118)	(53)
	7,082	7,060	13,724	13,588
Earnings per share (sen):
Basic	0.69	2.94	1.31	5.62
Diluted	0.69	2.94		1.31	5.62

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2022 and the accompanying explanatory notes attached to the interim financial statements.

MICROLINK SOLUTIONS BERHAD (200301018362 (620782 - P))

Incorporated in Malaysia

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

	As At	As At
	30 September 2022	31 March 2022
	RM'000	RM'000
	Unaudited	Audited
ASSETS
Non-Current Assets
Property, plant and equipment	356	310
Right-of-use assets	4,318	4,170
Goodwill	22,664	18,409
Software development expenditure	111,646	102,425
Other investments	105	105
Deferred tax assets	2,707	2,707
	141,796	128,126
Current Assets
Inventories	5,759	1,463
Contract costs	16,998	4,303
Other investments	14,341	4,475
Trade receivables	50,616	28,052
Other receivables, deposits and prepayments	17,878	20,681
Contract assets	24,996	17,286
Amount owing by ultimate holding company	-	28,075
Amount owing by immediate holding company	-	37
Current tax assets	7,644	6,157
Cash and bank balances	24,290	63,122
	162,522	173,651
TOTAL ASSETS	304,318	301,777
EQUITY AND LIABILITIES
Equity attributable to owners of the Parent
Share capital	162,686	161,896
Reserves	(103)	38
Retained Earnings	47,961	39,322
	210,544	201,256
Non-controlling interests	137	480
TOTAL EQUITY	210,681	201,736
Non-Current Liabilities
Deferred tax liability	3,995	3,745
Provision for gratuity obligations	1,825	1,829
Other payables and accruals	157	157
Lease liabilities	3,557	4,120
	9,534	9,851
Current Liabilities
Trade payables	33,127	23,768
Other payables and accruals	18,635	13,969
Contract liabilities	15,251	17,308
Amount owing to ultimate holding company	-	38
Amount owing to immediate holding company	-	794
Amounts owing to related companies	-	1,379
Borrowings	13,002	27,914
Provision for gratuity obligations	124	239
Lease liabilities	2,754	2,670
Current tax liabilities	1,210	2,111
	84,103	90,190
TOTAL LIABILITIES	93,637	100,041
TOTAL EQUITY AND LIABILITIES	304,318	301,777
Net assets per share (RM)	0.20	0.19

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2022 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 SECOND QUARTER ENDED 30 SEPTEMBER 2022

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

Unaudited

6 months ended 30 September 2022

At 1 April 2022 (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")

Dividends paid

Total transactions with owners

At 30 September 2022

Unaudited

6 months ended 30 September 2021

161,896	38	39,322	201,256	480	201,736
-	-	13,983	13,983	(123)	13,860
-	(141)	-	(141)	5	(136)
-	(141)	13,983	13,842	(118)	13,724
790	-	-	790	-	790
-	-	(5,344)	(5,344)	(225)	(5,569)
790	-	(5,344)	(4,554)	(225)	(4,779)
162,686	(103)	47,961	210,544	137	210,681
		-

At 1 April 2021 (audited)	105,583	42	13,852	119,477	487	119,964
Profit for the period	-	-	13,644	13,644	(57)	13,587
Foreign currency translation for foreign operations	-	(3)	-	(3)	4	1
Total comprehensive income for the period	-	(3)	13,644	13,641	(53)	13,588

Transaction with owners

Shares issued pursuant to Employee Share Grant Plan Total transactions with owners

2,943	-	-	2,943	-	2,943
2,943	-	-	2,943	-	2,943

At 30 September 2021

108,526

39

27,496

136,061

434

136,495

Note:

These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 March 2022 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 SECOND QUARTER ENDED 30 SEPTEMBER 2022 (The figures have not been audited)

	Preceding Year	Current Year		Preceding Year
	3 months ended	6 months ended		6 months ended
	31 March 2017	30 September 2022		30 September 2021
	RM'000	RM'000		RM'000
	Unaudited	Unaudited		Unaudited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	2,522	15,885	14,911
Adjustments for non-cash items:
Amortisation of software development expenditure	2,761	4,499	3,149
Depreciation of property, plant and equipment	838	58	78
Depreciation of right-of-use assets	50	697	645
Employee share grant plan expenses		-	981
Fair Value Loss / (Gain) on Investment		124	(706)
Impairment losses on other receivable	64	(1)	-
Interest expense	2,516	813	873
Interest income	(551)	(260)	(161)
Net unrealised gain on foreign exchange	12	-	(27)
Reversal of provision for gratuity obligation	245	671	-
Operating profit before working capital changes	12,768	22,486	19,743
Net changes in assets	18,237	(16,375)	(32,026)
Net changes in liabilities	(18,424)	5,459	7,062
Net cash from / (used in) operations	12,581	11,570	(5,221)
Interest received		-	9
Tax paid	(5,000)	(4,162)	(2,459)
Net cash from / (used in) operating activities	7,629	7,408	(7,671)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of a subsidiary, net of cash acquired	-	39	-
Addition of software development expenditure	(35,483)	(13,720)	(11,932)
Repayment from ultimate holding company		-	17,275
Repayment from immediate holding company		-	16,280
Interest received	551	260	152
Placement of deposits pledged to licensed banks	(701)	(169)	(39)
Purchase of other investments	65	(9,991)	(5,920)
Purchase of property, plant and equipment	(375)	(103)	(638)
Net cash (used in) / from investing activities	(35,943)	(23,684)	15,178
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid	(2,516)	(5,569)	-
Interest paid	(2,516)	(568)	(531)
Repayments of borrowings	5,035	(14,675)	3,340
Payments of lease liabilities	17,757	(1,570)	(2,008)
Net cash (used in) / from financing activities	17,760	(22,382)		801
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS	(10,554)	(38,658)	8,308
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE PERIOD	24,740	56,152	4,121
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS	9	(106)	41
CASH AND CASH EQUIVALENTS AT END
OF THE PERIOD	14,195	17,388	12,470
		-

* 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

2022 and the accompanying explanatory notes attached to the interim financial statements.

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