Mindtell Technology Limited — Interim / Quarterly Report 2019

Oct 14, 2019

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the "Directors") of Mindtell Technology Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

香港聯合交易所有限公司 (「聯交所」)GEM之特色

GEM之定位,乃為中小型公司提供 一個上市之市場,此等公司相比起 其他在聯交所上市之公司帶有較高 投資風險。有意投資之人士應了解 投資於該等公司之潛在風險,並應 經過審慎周詳之考慮後方作出投資 決定。

由於GEM上市公司普遍為中小型公 司, 在GEM買 賣 之 證 券 可 能 會 較 於聯交所主板買賣之證券承受較大 之市場波動風險,同時無法保證在 GEM買賣之證券會有高流通量之市 場。

香港交易及結算所有限公司及聯交 所 對 本 報 告 之 內 容 概 不 負 責, 對 其準確性或完整性亦不發表任何聲 明,並明確表示概不就因本報告全 部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任 何責任。

本 報 告 之 資 料 乃 遵 照 聯 交 所GEM 證 券 上 市 規 則(「GEM上 市 規 則 」) 而 刊 載, 旨 在 提 供 有 關Mindtell Technology Limited(「本 公 司 」)之 資料;本公司董事(「董事」)願就本 報告之資料共同及個別地承擔全部 責任。各董事在作出一切合理查詢 後,確認就其所知及所信,本報告 所載資料在各重要方面均屬準確完 備,沒有誤導或欺詐成分,且並無 遺漏任何其他事項,足以令致本報 告或其所載任何陳述產生誤導。

Financial Highlights	財務摘要	3
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	簡明綜合損益及其他全面收益表	4
Condensed Consolidated Statement of Changes in Equity	簡明綜合權益變動表	6
Notes to the Condensed Consolidated Financial Statements	簡明綜合財務報表附註	8
Management Discussion and Analysis	管理層討論及分析	32
Other Information	其他資料	42

FINANCIAL HIGHLIGHTS (UNAUDITED)

• The Company and its subsidiaries (collectively referred to as the "Group") recorded revenue of approximately RM14.9 million for the nine months ended 31 August 2019 (nine months ended 31 August 2 0 1 8 : a p p r o x i m a t e l y R M 4 2 . 8 million), representing a decrease of approximately 65.3% as compared with the corresponding period of 2018.
• The Group recorded a gross profit of approximately RM4.4 million for the nine months ended 31 August 2019 (nine months ended 31 August 2 0 1 8 : a p p r o x i m a t e l y R M 2 1 . 3 million), representing a decrease of approximately 79.3% as compared with the corresponding period of 2018.
• The Group recorded a profit before listing expenses of approximately RM626,000 for the nine months ended 31 August 2019 (nine months ended 31 August 2018: approximately RM16,866,000), r e p r e s e n t i n g a d e c r e a s e o f approximately 96.3% as compared with the corresponding period of 2018.
• The basic and diluted earnings per share was approximately RM0.16 cents for the nine months ended 31 August 2019 (nine months ended 31 August 2018: approximately RM3.66 cents).
• The board of Directors (the "Board") does not recommend the payment of interim dividend for the nine months ended 31 August 2019.

財務摘要(未經審核) — 截至二零一九年八月三十一 日止九個月,本公司及其附 屬 公 司(統 稱「本 集 團 」)錄 得 收 益 約 馬 幣14,900,000 元(截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 ﹕約 馬 幣42,800,000元),較二零 一八年同期減少約65.3%。

• 截至二零一九年八月三十一 日止九個月,本集團錄得毛 利約馬幣4,400,000元(截至 二零一八年八月三十一日止 九個月 ﹕約馬幣21,300,000 元),較二零一八年同期減 少約79.3%。
• 截至二零一九年八月三十一 日止九個月,本集團錄得利 潤(不 計 上 市 開 支 )約 馬 幣 626,000元(截 至 二 零 一 八 年八月三十一日止九個月: 約 馬 幣16,866,000元 ), 較 二 零 一 八 年 同 期 減 少 約 96.3%。
• 截至二零一九年八月三十一 日止九個月,每股基本及攤 薄盈利約為馬幣0.16分(截 至二零一八年八月三十一日 止 九 個 月 ﹕約 為 馬 幣3.66 分)。
• 董事會(「董事會」)不建議就 截至二零一九年八月三十一 日止九個月派付中期股息。

The Board is pleased to announce the unaudited condensed consolidated results of Group for the three months and nine months ended 31 August 2019, together with the comparative unaudited figures for the corresponding periods of 2018, as follows:

CONDENSED Consolidated statement of profit or loss and other comprehensive income

For the three months and nine months ended 31 August 2019

董事會欣然宣佈本集團截至二零 一九年八月三十一日止三個月及 九個月之未經審核簡明綜合業績, 連同於二零一八年同期之可比較 未經審核數據載列如下:

簡明綜合損益及其他 全面收益表

截至二零一九年八月三十一日止三個月及九個月

			(Unaudited) (未經審核)		(Unaudited) (未經審核)
				For the three months	For the nine months
				ended 31 August	ended 31 August
				截至八月三十一日止三個月	截至八月三十一日止九個月
			2019	2018	2019	2018
			二零一九年	二零一八年	二零一九年	二零一八年
		Notes	RM'000	RM'000	RM'000	RM'000
		附註	馬幣千元	馬幣千元	馬幣千元	馬幣千元
Revenue	收益	4	4,434	15,347	14,871	42,830
Cost of services and materials sold	服務及已售材料 成本		(3,837)	(6,816)	(10,459)	(21,555)
Gross profit	毛利		597	8,531	4,412	21,275
Other income	其他收入	5	44	6	199	33
Administrative expenses	行政開支		(1,329)	(1,052)	(3,920)	(2,106)
Finance costs	融資成本	6	(21)	(13)	(57)	(40)
Listing expenses	上市開支		—	(3,593)	—	(6,874)
(Loss) Profit before	除所得稅前
income tax	(虧損)溢利	6	(709)	3,879	634	12,288
Income tax credit (expenses)	所得稅抵免 (開支)	7	60	(1,792)	(8)	(2,296)

CONDENSED Consolidated statement of profit or loss and other comprehensive income

For the three months and nine months ended 31 August 2019

截至二零一九年八月三十一日止三個月及九個月

簡明綜合損益及其他

全面收益表

			(Unaudited)		(Unaudited)
				(未經審核)	(未經審核)
				For the three months ended 31 August	For the nine months ended 31 August
				截至八月三十一日止三個月	截至八月三十一日止九個月
			2019	2018	2019	2018
			二零一九年	二零一八年	二零一九年	二零一八年
		Notes	RM'000	RM'000	RM'000	RM'000
		附註	馬幣千元	馬幣千元	馬幣千元	馬幣千元
(Loss) Profit for the	本期間(虧損)
period	溢利		(649)	2,087	626	9,992
Other comprehensive	其他全面費用
expenses
Items that may	其後可能重新
be reclassified	分類至損益之
subsequently to profit	項目
or loss
Exchange difference on	換算海外業務產
translation of foreign operations	生之匯兌差額		(270)	—	(270)	—
Total comprehensive	本期間全面總
(loss) income for the period	(虧損)收益		(919)	2,087	356	9,992
(Losses) Earnings per	每股(虧損)盈利
share, basic and	(基本及攤薄)
diluted (RM cents)	(馬幣分)	8	(0.17)	0.76	0.16	3.66

CONDENSED Consolidated Statement of Changes in Equity

For the nine months ended 31 August 2019

截至二零一九年八月三十一日止九個月

			Reserves 儲備
		Share capital 股本 RM'000 馬幣千元	Share premium 股份溢價 RM'000 馬幣千元	Capital reserve 資本儲備 RM'000 馬幣千元	Exchange reserve 匯兌儲備 RM'000 馬幣千元	Accumulated profits (losses) 累計溢利(虧損) RM'000 馬幣千元	Total 總計 RM'000 馬幣千元
At 1 December 2018 (Audited)	於二零一八年十二月一日 (經審核)	2,067	28,732	4,952	—	(3,479)	32,272
Profit for the period	本期間溢利	—	—	—	—	626	626
Other comprehensive expenses: Exchange difference on translation of foreign operations	其他全面費用: 換算海外業務產生之匯兌 差額	—	—	—	(270)	—	(270)
Total comprehensive (loss) income for the period	本期間全面總(虧損)收益	—	—	—	(270)	626	356
At 31 August 2019 (Unaudited)	於二零一九年八月 三十一日(未經審核)	2,067	28,732	4,952	(270)	(2,853)	32,628
At 1 December 2017 (Audited)	於二零一七年十二月一日 (經審核)	—	—	1,242	—	2,669	3,911
Profit for the period and total comprehensive income for the period	本期間溢利及本期間全面 總收益	—	—	—	—	9,992	9,992
Transactions with owners: Contributions and distributions Issue of share capital at incorporation (Note a)	與擁有人進行之交易: 注資及分派 於註冊成立時發行股本 (附註a)	—*	—	—	—	—	—*
Capital contribution made by the Pre-IPO Investors (Note b)	首次公開發售前投資者 注資(附註b)	—	—	3,710	—	—	3,710
Total transactions with owners	與擁有人進行之交易總額	—*	—	3,710	—	—	3,710
At 31 August 2018 (Unaudited)	於二零一八年八月 三十一日(未經審核)	—*	—	4,952	—	12,661	17,613

* Represent amount less than RM1,000. * 金額少於馬幣1,000元。

CONDENSED Consolidated Statement of Changes in Equity

For the nine months ended 31 August 2019

Notes:

• (a) Upon incorporation of the Company, 2 ordinary shares were allotted and issued to Mr. Chong Yee Ping and Mr. Siah Jiin Shyang at par value.
• (b) A subscription agreement was entered into between (i) Mr. Liu Yan Chee James; (ii) Mr. Lam Pang (together with Mr. Liu Yan Chee James, the "Pre-IPO Investors"); (iii) Excel Elite Global Limited ("Excel Elite") a directly wholly-owned subsidiary of the Company; (iv) Mr. Chong Yee Ping and (v) Mr. Siah Jiin Shyang on 16 October 2017, pursuant to which each of the Pre-IPO Investors subscribed for 1,945 shares of Excel Elite at a total subscription price of HK\$7,000,000 (equivalent to approximately RM3,710,000). After the issuance and allotment of a total of 3,890 shares on 14 December 2017, each of the Pre-IPO Investors held approximately 14.0% of the issued share capital of Excel Elite.

簡明綜合權益變動表

截至二零一九年八月三十一日止九個月

附註:

(a) 於本公司註冊成立後,2股普通股 按面值獲配發及發行予鍾宜斌先生 及謝錦祥先生。

(b) 認 購 協 議 乃 由(i)劉 恩 賜 先 生; (ii)林 鵬 先 生(連 同 劉 恩 賜 先 生, 「首次公開發售前投資者」);(iii) Excel Elite Global Limited(「Excel Elite」)(一間本公司直接全資附屬 公司);(iv)鍾宜斌先生;及(v)謝 錦祥先生於二零一七年十月十六日 訂立,據此,各名首次公開發售前 投資者已認購1,945股Excel Elite 的股份,總認購價為7,000,000港 元(相當於約馬幣3,710,000元)。 於二零一七年十二月十四日發行 及配發共計3,890股股份後,各名 首次公開發售前投資者持有Excel Elite的已發行股本約14.0%。

For the three months and nine months ended 31 August 2019

1. CORPORATE INFORMATION

The Company was incorporated as an exempted company with limited liability in the Cayman Islands on 27 February 2018. The Company's shares were listed on GEM of the Stock Exchange on 22 October 2018 (the "Listing"). The address of the Company's registered office is Cricket Square, Hutchins Drive, P. O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and its principal place of business in Hong Kong is Unit 1802, 18/F., Ruttonjee House, Ruttonjee Centre, 11 Duddell Street, Central, Hong Kong. The Group's headquarter is situated at B-7-7, Sky Park @ One City, Jalan USJ 25/1, 47650 Subang Jaya, Selangor, Malaysia.

T h e p r i n c i p a l a c t i v i t y o f t h e Company is an investment holding company. The Group is principally engaged in the provision of system i n t e g r a t i o n a n d d e v e l o p m e n t services, IT outsourcing services and maintenance and consultancy services.

T h e u n a u d i t e d c o n d e n s e d consolidated financial statements are presented in Malaysian Ringgit ("RM") and all amounts have been rounded to the nearest thousand ("RM'000"), unless otherwise indicated.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

1. 公司資料

本 公 司 於 二 零 一 八 年 二 月 二 十 七 日 在 開 曼 群 島 註 冊 成 立 為 獲 豁 免 有 限 公 司。 本 公 司 股 份 於 二 零 一 八 年 十 月 二 十 二 日 在 聯 交 所 GEM上 市(「上 市 」)。 本 公 司 註 冊 辦 事 處 之 地 址 為 Cricket Square, Hutchins Drive, P. O. Box 2681, Grand Cayman KY1-1111, Cayman Islands, 其 香 港 主 要 營 業 地 點 為 香 港 中 環 都爹利街11號律敦治中心 律敦治大廈18樓1802室。 本集團之總部位於 B-7-7, Sky Park @ One City, Jalan USJ 25/1, 47650 Subang Jaya, Selangor, Malaysia。

本公司之主要業務為投資控 股公司。本集團主要從事提 供系統整合及開發服務、資 訊科技外判服務,以及維修 及顧問服務。

未經審核簡明綜合財務報表 以馬幣(「馬幣」)呈列。除另 有說明外,所有金額均湊整 至最近千位(「馬幣千元」)。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES

T h e u n a u d i t e d c o n d e n s e d consolidated financial statements of the Group for the nine months ended 31 August 2019 (the "Third Quarterly Financial Statements") are prepared in accordance with the applicable disclosure requirements of Chapter 18 of the GEM Listing Rules.

The preparation of the Third Quarterly Financial Statements requires the management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a period to date basis. Actual results may differ from these estimates.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

2. 編製基準及主要會計政策

本集團截至二零一九年八月 三十一日止九個月之未經審 核簡明綜合財務報表(「第三 季度財務報表」)乃按GeM 上市規則第18章之適用披 露規定而編製。

編製第三季度財務報表需要 管理層就對以迄今期間為基 礎之會計政策運用、資產及 負債、收入及支出之列報額 有影響之事宜作出判斷、估 計及假設。實際結果可能有 別於此等估算。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

The Third Quarterly Financial Statements include an explanation of events and transactions that are significant to an understanding of the changes in financial performance of the Group since 30 November 2018, and therefore, do not include all of the information required for full set of financial statements prepared in accordance with the International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Boards (the "IASB"), which collective term includes all applicable individual IFRSs, International Accounting S t a n d a r d s ( t h e " I A S s " ) a n d Interpretations issued by the IASB. They shall be read in conjunction with the audited financial statements of the Group for the year ended 30 November 2018 (the "2018 Financial Statements").

The Third Quarterly Financial Statements have been prepared on the historical costs basis.

The accounting policies and methods of computation applied in the preparation of the Third Quarterly Financial Statements are consistent with those applied in the preparation of the 2018 Financial Statements except for the adoption of the new / revised IFRSs further described in the "Adoption of new / revised IFRSs" section which are relevant to the Group and effective for the Group's financial year beginning on 1 December 2018.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

第三季度財務報表包括針對 自二零一八年十一月三十日 起就理解本集團財務表現而 具有重大意義之事件及交易 所作之解釋,因此,並不包 括根據國際會計準則委員會 (「國際會計準則委員會」)頒 佈之國際財務報告準則(「國 際財務報告準則」),其為國 際會計準則委員會頒佈之所 有適用獨立國際財務報告準 則、國際會計準則(「國際會 計 準 則 」)及 詮 釋 之 統 稱。 該等準則應與本集團截至二 零一八年十一月三十日止年 度的經審核財務報表(「二零 一八年財務報表」)一併閱 讀。

第三季度財務報表乃按歷史 成本基準編製。

除採用於「採用新訂╱經修 訂國際財務報告準則」一節 進一步所述與本集團相關且 於二零一八年十二月一日起 之本集團財政年度生效之新 訂╱經修訂國際財務報告準 則外,編製第三季度財務報 表採用之會計政策及計算方 法與編製二零一八年財務報 表所採用者相同。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Completion of reorganisation

Immediately before and after the group reorganisation (the "Reorganisation") as set out in the paragraph headed "Reorganisation" of the section headed "History, Development and Reorganisation" to the prospectus issued by the Company dated 29 September 2018 (the "Prospectus"), the Company and its subsidiaries now comprising the Group were under the common control of the ultimate controlling parties (i.e. Mr. Chong Yee Ping and Mr. Siah Jiin Shyang). Accordingly, the Reorganisation has been accounted for by using merger accounting as detailed in the paragraph headed "Merger accounting for business combination involving entities under common control" in Note 2 to the 2018 Financial Statements. Accordingly, the financial information presented in the Third Quarterly Financial Statements incorporates the financial statements items of the combining in entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the ultimate controlling parties.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

重組完成

緊 接 及 緊 隨 本 公 司 日 期 為 二 零 一 八 年 九 月 二 十 九 日 之 招 股 章 程(「招 股 章 程 」) 「歷 史、 發 展 及 重 組 」一 節 「重組」一段所載之集團重組 (「重 組 」)前 後, 本 公 司 及 其組成現時本集團之附屬公 司由最終控股方(即鍾宜斌 先生及謝錦祥先生)共同控 制。因此,重組已採用二零 一八年財務報表附註2「涉及 受共同控制實體業務合併之 合併會計法」一段所載之會 計合併入賬。因此,第三季 度財務報表所呈列之財務資 料將包括產生共同控制合併 之合併實體或業務之財務報 表項目,猶如該等資料自合 併實體或業務開始受最終控 制方控制時起已合併計算。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs

Except for IFRS 9 and IFRS 15, the adoption of other new / revised IFRSs that are relevant to the Group and effective from the current period had no material impacts on the Group's consolidated financial statements for the current and prior periods.

IFRS 9: Financial Instruments

The following terms are used in these condensed consolidated financial statements:

• • FVPL: fair value through profit or loss
• • FVOCI: fair value through other comprehensive income
• • Designated FVOCI: equity instruments measured at FVOCI
• • M a n d a t o r y FVOCI: debt instruments measured at FVOCI

IFRS 9 replaces IAS 39 "Financial Instruments: Recognition and Measurement" for annual periods beginning on or after 1 January 2018. It introduces new requirements for the classification and measurement of financial assets and financial liabilities, impairment for financial assets and hedge accounting.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則

除國際財務報告準則第9號 及國際財務報告準則第15 號外,採用其他與本集團相 關且自本期間生效之新訂╱ 經修訂國際財務報告準則對 本集團於本期間及過往期間 之綜合財務報表並無重大影 響。

國際財務報告準則第9號「金 融工具」

該等簡明綜合財務報表中使 用以下詞彙:

• 按公平值計入損益: 按公平值計入損益
• 按公平值計入其他全 面收益:按公平值計 入其他全面收益
• 指定按公平值計入其 他全面收益:按公平 值計入其他全面收益 計量之股本工具
• 強制按公平值計入其 他全面收益:按公平 值計入其他全面收益 計量之債務工具

國際財務報告準則第9號於 二零一八年一月一日或之後 開始之年度期間取代國際會 計準則第39號「金融工具: 確認及計量」。其引入有關 分類及計量金融資產及金融 負債、金融資產減值及對沖 會計處理之新規定。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 9: Financial Instruments (continued)

In accordance with the transitional provisions in IFRS 9, comparative information has not been restated and the Group has applied IFRS 9 retrospectively to financial instruments that existed at 1 December 2018 (i.e. the date of initial application), except as described below (if applicable):

• (a) The following assessments are made on the basis of facts and circumstances that existed at the date of initial application:
• (i) the determination of the business model within which a financial asset is held;
• (ii) t h e d e s i g n a t i o n o f f i n a n c i a l a s s e t s o r financial liabilities at FVPL or, in case of financial assets, at Designated FVOCI; and
• (iii) t h e d e d e s i g n a t i o n of financial assets or financial liabilities at FVPL.

T h e a b o v e r e s u l t i n g classification shall be applied retrospectively.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第9號「金 融工具」(續)

根據國際財務報告準則第9 號之過渡條文,比較資料未 予重列,且本集團已對二零 一八年十二月一日(即首次 應用日期)存在之金融工具 追溯應用國際財務報告準則 第9號,惟下述者除外(如適 用)﹕

• (a) 以下評估乃根據於首 次應用日期存在之事 實及情況作出 ﹕
• (i) 釐定持有金融資 產之業務模式;
• (ii) 指定金融資產或 金融負債按公平 值計入損益,或 如屬金融資產, 指定按公平值計 入 其 他 全 面 收 益;及
• (iii) 重新指定金融資 產或金融負債按 公 平 值 計 入 損 益。

上述形成之分類應予 追溯應用。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 9: Financial Instruments (continued)

• (b) I f , a t t h e d a t e o f i n i t i a l a p p l i c a t i o n , d e t e r m i n i n g whether there has been a significant increase in credit risk since initial recognition would require undue cost or effort, a loss allowance is recognised at an amount equal to lifetime expected credit losses at each reporting date until the financial instrument is derecognised unless that financial instrument has low credit risk at a reporting date.
• (c) For investments in equity instruments that were measured at cost under IAS 39, the instruments are measured at fair value at the date of initial application.

Classification and measurement of financial assets and financial liabilities

Except for the reclassification of financial assets under the measurement category of "Loans and receivables" under IAS 39 into "Amortised costs" under IFRS 9 which the accounting treatments would have no material difference, the adoption of IFRS 9 has no significant effect on the classification and measurement of the Group's financial assets and liabilities.

簡明綜合財務報表附註

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第9號「金 融工具」(續)

• (b) 倘於首次應用日期, 在釐定信貸風險自初 步確認以來有否顯著 上升時須付出過多成 本或精力,則須按相 等於各報告日期全期 預期信貸虧損之金額 確認虧損撥備,直至 有關金融工具終止確 認為止,除非該金融 工具於報告日期具有 低信貸風險。
• (c) 就曾經根據國際會計 準則第39號按成本計 量之股本工具投資而 言,該等工具按首次 應用日期之公平值計 量。

金融資產及金融負債之分類 及計量

除將國際會計準則第39號 項下之計量類別「貸款及應 收款項」項下之金融資產重 新分類至國際財報務告準則 第9號項下之「攤銷成本」(該 等會計處理並無重大差異) 外,採用國際財務報告準則 第9號對本集團金融資產及 負債之分類及計量並無重大 影響。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 9: Financial Instruments (continued)

Classification and measurement of financial assets and financial liabilities (continued)

In addition, there were no effects of transition to IFRS 9 on the carrying amounts of financial assets and liabilities under IAS 39 based on the measurement category under IFRS 9 on 1 December 2018.

Impairment of financial assets and other items under IFRS 9

The adoption of IFRS 9 has no significant effect on the measurement of credit risk of financial assets. No loss allowance was recognised on 1 December 2018 upon initial application of IFRS 9.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第9號「金 融工具」(續)

金融資產及金融負債之分類 及計量(續)

此外,根據國際財務報告準 則第9號於二零一八年十二 月一日之計量類別對國際會 計準則第39號項下金融資 產及負債賬面值並無國際財 務報告準則第9號之過渡影 響。

國際財務報告準則第9號項 下金融資產及其他項目之減 值

採納國際財務報告準則第9 號對金融資產之信貸風險計 量並無重大影響。於初始應 用國際財務報告準則第9號 後,於二零一八年十二月一 日並無確認虧損撥備。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 15: Revenue from Contracts with Customers

IFRS 15 replaces, among others, IAS 18 and IAS 11 which specified the revenue recognition arising from sale of goods and rendering of services and the accounting for construction contracts respectively. The standard e s t a b l i s h e s a c o m p r e h e n s i v e framework for revenue recognition and certain costs from contracts with customers within its scope. It also introduces a cohesive set of disclosure requirements that would result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts with customers.

The Group has elected to apply the cumulative effect transition method and recognised the cumulative effect of initial adoption as an adjustment to the opening balance of components of equity at 1 December 2018 (i.e. the date of initial application). Therefore, the comparative information has not been restated for the effect of IFRS 15.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第15號 「客戶合約收益」

國際財務報告準則第15號 取代(其中包括)國際會計準 則第18號及國際會計準則 第11號, 分 別 對 銷 售 貨 品 及提供服務產生之收益確認 及建築合約之會計處理作出 規定。該準則就收益確認建 立一個全面框架,其範圍涵 蓋若干與客戶合約產生之成 本。其亦引入一套會導致向 財務報表使用者提供有關實 體之客戶合約所產生收益及 現金流量之性質、金額、時 間及不確定性的資料之披露 規定。

本集團已選擇應用累計影響 過渡方法並將初步採用之累 計影響確認為一項對於二零 一八年十二月一日(即首次 應用日期)之年初權益部分 結餘所作出之調整。因此, 並無就國際財務報告準則第 15號之影響重列比較資料。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 15: Revenue from Contracts with Customers (continued)

In addition, the Group has applied IFRS 15 retrospectively only to contracts that were not completed at 1 December 2018 in accordance with the transitional provisions therein.

Timing of revenue recognition

System integration and development services — Services provided

Before the adoption of IFRS 15, the Group recognised such revenue by reference to the stage of completion. Under IFRS 15, the revenue remains to be recognised over time because the customers simultaneously receives and consumes the benefits provided by the Group's services and performance.

System integration and development services — Sales of externally acquired / purchased hardware and software

Before the adoption of IFRS 15, the Group recognised such revenue on transfer of risks and rewards of ownership, which generally coincides with the time when goods were delivered to customers and the title was passed. Under IFRS 15, the Group remains to recognise the revenue on these sales at a point in time.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第15號 「客戶合約收益」(續)

此外,根據有關過渡條文, 本 公 司 僅 對 於 二 零 一 八 年 十二月一日尚未完成之合約 追溯應用國際財務報告準則 第15號。

收益確認之時間性

系統整合及開發服務 — 所 提供服務

採用國際財務報告準則第15 號前,本集團參考完成階段 確認該收益。根據國際財務 報 告 準 則 第15號, 收 益 仍 於一段時間內確認,原因為 客戶同時獲得並消耗本集團 提供服務及履約時提供之利 益。

系統整合及開發服務 — 銷 售外部收購╱購買之硬件及 軟件

採用國際財務報告準則第15 號前,本集團於轉移風險及 授出擁有權(即一般與向客 戶付運貨物及轉移所有權) 時確認該收益。根據國際財 務 報 告 準 則 第15號, 本 集 團仍於某一時點確認該等銷 售之收益。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Adoption of new / revised IFRSs (continued)

IFRS 15: Revenue from Contracts with Customers (continued)

Timing of revenue recognition (continued)

IT outsourcing services / Maintenance and consultancy services

Before the adoption of IFRS 15, the Group recognised revenue arising from IT outsourcing services when services are rendered and maintenance services over time on a straight-line basis over the life of the related agreements. Under IFRS 15, the revenue remains to be recognised over time because the customers simultaneously receives and consumes the benefits provided by the Group's services and performance.

The adoption of IFRS 15 does not have any significant impact on the consolidated financial statements.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

採用新訂╱經修訂國際財務 報告準則(續)

國際財務報告準則第15號 「客戶合約收益」(續)

收益確認之時間性(續)

資訊科技外判服務╱維修及 顧問服務

採用國際財務報告準則第15 號前,本集團於相關協議之 年期內就已提供之服務及維 修服務按直線法予以確認來 自 資 訊 科 技 外 判 服 務 之 收 益。根據國際財務報告準則 第15號, 收 益 仍 以 一 段 時 間內確認,原因為客戶同時 獲得並消耗本集團提供服務 及履約時提供之利益。

採用國際財務報告準則第15 號對綜合財務報表並無任何 重大影響。

For the three months and nine months ended 31 August 2019

2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES (continued)

Future changes in IFRSs

At the date of authorisation of the Third Quarterly Financial Statements, the Group has not early adopted the new / revised IFRSs that have been issued but are not yet effective. Except for the impact of IFRS 16 as set out in the 2018 Financial Statements, the Directors do not anticipate that the adoption of the new / revised IFRSs in future periods will have any material impact on the Group's consolidated financial statements.

3. SEGMENT INFORMATION

Information reported to the executive directors of the Company, being identified as the chief operating decision makers (the "CODM"), for the purposes of resource allocation a n d a s s e s s m e n t o f s e g m e n t performance focuses on types of goods or services delivered or provided. No operating segments identified by the CODM have been aggregated in arriving at the reportable segments of the Group.

Specifically, the Group's reportable and operating segments are:

• (i) s y s t e m i n t e g r a t i o n a n d development services;
• (ii) IT outsourcing services; and
• (iii) maintenance and consultancy services.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

2. 編 製 基 準 及 主 要 會 計 政 策 (續)

國際財務報告準則之未來變 動

於批准第三季度財務報表當 日,本集團並無提早採用已 頒佈惟尚未生效之新訂╱經 修訂國際財務報告準則。除 二零一八年財務報表所載國 際財務報告準則第16號之 影響外,董事預期於未來期 間採用該等新訂╱經修訂國 際財務報告準則對本集團之 綜合財務報表並無任何重大 影響。

3. 分部資料

向本公司執行董事(即被識 別 為 主 要 營 運 決 策 者(「主 要營運決策者」))呈報之資 料,就資源分配及評估分部 表現而言,著重於已交付或 提供之物品或服務之類型。 於 達 致 本 集 團 可 呈 報 分 部 時,並無綜合主要營運決策 者所識別之經營分部。

具體而言,本集團之可呈報 及經營分部為:

• (i) 系統整合及開發服務;
• (ii) 資訊科技外判服務; 及
• (iii) 維修及顧問服務。

For the three months and nine months ended 31 August 2019

3. SEGMENT INFORMATION (continued)

Segment revenue and results

S e g m e n t r e v e n u e r e p r e s e n t s revenue derived from the system i n t e g r a t i o n a n d d e v e l o p m e n t services, IT outsourcing services and maintenance and consultancy services.

Segment results represent the gross profit reported by each segment without allocation of other income, administrative expenses, finance costs, listing expenses and income tax expenses. This is the measure reported to the CODM of the Group for the purposes of resource allocation and performance assessment.

No analysis of the Group's assets and liabilities by operating segments is presented as it is not regularly provided to the CODM for review.

In addition, the Group's place of domicile is Malaysia, where the central management and control is located.

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

3. 分部資料(續)

分部收益及業績

分部收益指來自系統整合及 開發服務、資訊科技外判服 務以及維修及顧問服務取得 之收益。

分部業績指各分部已呈報毛 利, 而 並 未 分 配 之 其 他 收 入、行政開支、融資成本、 上市開支及所得稅開支。就 資源分配及表現評估而言, 此乃向本集團之主要營運決 策者呈報之方法。

由於本集團按經營分部劃分 之資產及負債並無定期提供 予 主 要 營 運 決 策 者 進 行 審 閱,故並無呈報其分析。

此外,本集團之所在地為馬 來西亞,即中央管理及控制 之所在地。

For the three months and nine months ended 31 August 2019

3. SEGMENT INFORMATION (continued)

Segment revenue and results (continued)

The segment information provided to the CODM for the reportable segments for the nine months ended 31 August 2019 and 2018 is as follows:

截至二零一九年八月三十一日止三個月及九個月

3. 分部資料(續)

分部收益及業績(續)

截至二零一九年及二零一八 年八月三十一日止九個月, 就可呈報分部向主要營運決 策者提供之分部資料如下 ﹕

		System integration and development services 系統整合及 開發服務 RM'000 馬幣千元	IT outsourcing services 資訊科技 外判服務 RM'000 馬幣千元	Maintenance and consultancy services 維修及 顧問服務 RM'000 馬幣千元	Total 總計 RM'000 馬幣千元
For the nine months ended 31 August 2019 (Unaudited) Revenue from external customers and reportable segment	截至二零一九年 八月三十一日止九個月 (未經審核) 來自外部客戶之 收益及可呈報 分部收益
revenue		13,777	581	513	14,871
Reportable segment results	可呈報分部業績	3,832	303	277	4,412
Other information: Amortisation	其他資料: 攤銷	241	—	—	241
Addition of intangible assets	添置無形資產	2,711	—	—	2,711
Research and development expenses	研發開支	152	—	—	152

截至二零一九年八月三十一日止三個月及九個月

For the three months and nine months ended 31 August 2019

3. 分部資料(續)

3. SEGMENT INFORMATION (continued)

分部收益及業績(續)

Segment revenue and results (continued)

		System integration and development services 系統整合及 開發服務 RM'000 馬幣千元	IT outsourcing services 資訊科技 外判服務 RM'000 馬幣千元	Maintenance and consultancy services 維修及 顧問服務 RM'000 馬幣千元	Total 總計 RM'000 馬幣千元
For the nine months ended 31 August 2018 (Unaudited) Revenue from external customers and reportable segment revenue	截至二零一八年 八月三十一日止九個月 (未經審核) 來自外部客戶之 收益及可呈報 分部收益	40,104	1,218	1,508	42,830
Reportable segment results	可呈報分部業績	19,605	704	966	21,275
Other information: Amortisation	其他資料: 攤銷	196	—	—	196
Research and development expenses	研發開支	545	—	—	545

For the three months and nine months ended 31 August 2019

3. SEGMENT INFORMATION (continued)

Reconciliation of reportable segment results

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

3. 分部資料(續)

可呈報分部業績之對賬

(Unaudited)

		(未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年 RM'000 馬幣千元	2018 二零一八年 RM'000 馬幣千元
Reportable segment results	可呈報分部業績	4,412	21,275
Unallocated income and expenses: Other income Administrative	未分配收入及 開支: 其他收入 行政開支	199	33
expenses Finance costs Listing expenses	融資成本 上市開支	(3,920) (57) —	(2,106) (40) (6,874)
Profit before income tax	除所得稅前 溢利	634	12,288
Income tax expenses	所得稅開支	(8)	(2,296)
Profit for the period	本期間溢利	626	9,992

For the three months and nine months ended 31 August 2019

3. SEGMENT INFORMATION (continued)

Geographical information — Revenue from external customers

T h e f o l l o w i n g t a b l e s e t s o u t information about the geographical location of the Group's revenue from external customers. The geographical location of revenue is based on the location of external customers.

截至二零一九年八月三十一日止三個月及九個月

3. 分部資料(續)

地區資料 — 來自外部客戶 之收益

下表載列本集團來自外部客 戶之收益。收益之地理位置 以外部客戶的位置為依據。

		(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年 RM'000 馬幣千元	2018 二零一八年 RM'000 馬幣千元
Indonesia Malaysia Singapore United Kingdom	印度尼西亞 馬來西亞 新加坡 英國	— 14,833 38 —	139 42,363 100 228
		14,871	42,830

簡明綜合財務報表附註

For the three months and nine months ended 31 August 2019

4. REVENUE

截至二零一九年八月三十一日止三個月及九個月

4. 收益

		(Unaudited) (未經審核)		(Unaudited) (未經審核)
		For the three months ended 31 August 截至八月三十一日止三個月		For the nine months ended 31 August 截至八月三十一日止九個月
	2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
System integration and 系統整合及開發 development services: 服務: Services provided 所提供服務 Sales of externally 銷售外部收購 acquired / ╱購買之硬 purchased hardware 件及軟件	3,603	14,381	12,615	38,476
and software	398	377	1,162	1,628
IT outsourcing services 資訊科技外判 服務	4,001 159	14,758 354	13,777 581	40,104 1,218
Maintenance and 維修及顧問服務 consultancy services	274	235	513	1,508
	4,434	15,347	14,871	42,830

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

For the three months and nine months ended 31 August 2019

5. OTHER INCOME

5. 其他收入

		(Unaudited) (未經審核) For the three months ended 31 August 截至八月三十一日止三個月		(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
		RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
Exchange gains, net	匯兌收益淨額	40	2	40	2
Interest income	利息收入	4	4	154	31
Others	其他	—	—	5	—
		44	6	199	33

6. (Loss) PROFIT BEFORE INCOME TAX 6. 除所得稅前(虧損)溢利

This is stated after charging:

此乃經扣除下列各項計算:

	(Unaudited) (未經審核) For the three months ended 31 August 截至八月三十一日止三個月			(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
	2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
Finance costs 融資成本 Interest expenses on 計息借貸之 interest-bearing 利息開支
borrowings Finance charges on 融資租賃責任 obligations under finance 之融資費用 leases	11 10	11 2	33 24	33 7
	21	13	57	40

簡明綜合財務報表附註

For the three months and nine months ended 31 August 2019

6. (Loss) PROFIT BEFORE INCOME

TAX (continued)

截至二零一九年八月三十一日止三個月及九個月

6. 除所得稅前(虧損)溢利(續)

	(Unaudited) (未經審核) For the three months ended 31 August 截至八月三十一日止三個月			(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
	2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
Other items 其他項目 Amortisation of intangible 無形資產攤銷 assets, included in (計入行政
administrative expenses 開支) Auditors' remuneration 核數師薪酬	109 25	65 —	241 39	196 —
Cost of materials sold 已售材料成本	273	289	969	1,446
Depreciation of property, 物業、機器及設備 plant and equipment 折舊 Operating lease expenses 經營租賃開支 Research and development 研發開支	99 30	27 —	310 109	130 —
expenses	152	76	152	545

截至二零一九年八月三十一日止三個月及九個月

簡明綜合財務報表附註

7. INCOME TAX credit (EXPENSES)

For the three months and nine months ended 31 August 2019

7. 所得稅抵免(開支)

			(Unaudited) (未經審核)		(Unaudited) (未經審核)
		For the three months ended 31 August 截至八月三十一日止三個月		For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
		RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
Current tax Malaysia corporate income tax ("Malaysia CIT")	即期稅項 馬來西亞企業 所得稅 (「馬來西 亞企業所得
	稅」)	60	(1,792)	(8)	(2,294)
Deferred tax	遞延稅項	—	—	—	(2)
Total income tax credit (expenses) for the period	本期間所得稅 抵免(開支) 總額	60	(1,792)	(8)	(2,296)

The group entities established in the Cayman Islands and the British Virgin Islands are exempted from income tax. No provision for Hong Kong profits tax has been made as the Group had no assessable profits arising in or derived from Hong Kong.

於開曼群島及英屬處女群島 成立之集團實體獲豁免繳付 當地所得稅。由於本集團並 無於或自香港產生應課稅溢 利,故並無就香港利得稅計 提撥備。

For the three months and nine months ended 31 August 2019

7. INCOME TAX credit (EXPENSES) (continued)

Malaysia CIT is calculated at 24% (2018: 24%) of the estimated assessable profits for the nine months ended 31 August 2019. Malaysia incorporated entities with paid-up capital of RM2.5 million or less enjoy tax rate of 17% (2018: 18%) on the first RM500,000 and remaining balance of the estimated assessable profits at tax rate of 24% (2018: 24%) for the nine months ended 31 August 2019.

Mixsol Sdn. Bhd. ("Mixsol") and T a n d e m A d v i s o r y S d n . B h d . ("Tandem") have obtained the pioneer status effective from 23 September 2011 and 7 December 2012, respectively. A pioneer status company is eligible for exemption from income tax on eligible activities and products for five years and subject to submitting a formal request to the Malaysia Investment Development Authority on or prior to expiration date and upon the Ministry of International Trade and Industry confirming that Mixsol and Tandem have been complying with all the applicable conditions as imposed, the tax relief period shall be extended for a further five years after each five-year tax relief period ends. The pioneer status for Mixsol has been renewed during the year ended 30 November 2016 and subject to next renewal on or prior to 22 September 2021. The renewal of the pioneer status for Tandem has been submitted and was rejected on 27 August 2019. Tandem is subject to Malaysia CIT in the absence of approval for the extension of pioneer status.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

7. 所得稅抵免(開支)(續)

馬 來 西 亞 企 業 所 得 稅 於 截 至 二 零 一 九 年 八 月 三 十 一 日 止 九 個 月 按 估 計 應 課 稅 溢利之24%(二零一八年: 24%)計算。繳足資本為馬 幣2,500,000元或以下之馬 來西亞企業實體於截至二零 一九年八月三十一日止九個 月估計應課稅溢利之首筆馬 幣500,000元 按 稅 率17% (二零一八年:18%)繳稅, 而 餘 額 按 稅 率24%(二 零 一八年:24%)繳稅。

M i x s o l S d n . B h d . (「M i x s o l」) 及 T a n d e m A d v i s o r y S d n . B h d . (「Tandem」)已取得新興工 業地位,分別自二零一一年 九月二十三日及二零一二年 十二月七日起生效。新興工 業地位之公司合資格可就五 年合資格活動及產品獲得所 得稅豁免,惟須於屆滿日期 或之前及於國際貿易和工業 局 確 認Mixsol及Tandem遵 守所施加之所有適用條件後 向馬來西亞投資發展局提交 正式申請。於每五年免稅期 結束後,免稅期可進一步延 長 五 年。 於 截 至 二 零 一 六 年 十 一 月 三 十 日 止 年 度, Mixsol之新興工業地位已予 重續,並須於二零二一年九 月 二 十 二 日 或 之 前 再 次 重 續。Tandem之新興工業地 位重續已予提交,並已於二 零一九年八月二十七日被駁 回。Tandem必須於未獲批 准延長新興工業地位之情況 下 繳 付 馬 來 西 亞 企 業 所 得 稅。

For the three months and nine months ended 31 August 2019

8. (Losses) EARNINGS PER SHARE

The calculation of basic and diluted (losses) earnings per share attributable to owners of the Company is based on the following information:

截至二零一九年八月三十一日止三個月及九個月

8. 每股(虧損)盈利

本公司擁有人應佔基本及攤 薄(虧損)盈利乃根據以下數 據計算:

	(Unaudited) (Unaudited) (未經審核) (未經審核) For the three months For the nine months ended 31 August ended 31 August 截至八月三十一日止三個月 截至八月三十一日止九個月
		2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
		RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元	RM'000 馬幣千元
(Loss) Profit for the period attributable to the owners of the Company, used in basic and diluted (losses) earnings per	用作計算每股 基本及攤薄 (虧損)盈利 之本公司擁 有人應佔 (虧損)溢利
share calculation		(649)	2,087	626	9,992

Number of shares

股份數目

		For the three months ended 31 August 截至八月三十一日止三個月			For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年	2018 二零一八年	2019 二零一九年	2018 二零一八年
Weighted average number of ordinary shares for basic and diluted (losses) earnings per share	用作計算每股 基本及攤薄 (虧損)盈利 之普通股 平均股數
calculation		390,000,000	273,000,000	390,000,000	273,000,000

For the three months and nine months ended 31 August 2019

8. (Losses) EARNINGS PER SHARE (continued)

The calculation of the weighted average number of ordinary shares for the purpose of calculating basis and diluted (losses) earnings per share has been determined based on the assumption that the issue of shares at incorporation of the Company, the Reorganisation and the Capitalisation Issue (as defined in the Prospectus) to the shareholders had occurred on 1 December 2017.

Diluted (losses) earnings per share are same as the basic (losses) earnings per share as there are no dilutive potential ordinary shares in existence during the nine months ended 31 August 2019 and 2018.

9. DIVIDENDS

The Directors did not recommend a payment of an interim dividend for the nine months ended 31 August 2019 (2018: nil).

10. APPROVAL OF THE Third Quarterly FINANCIAL STATEMENTS

The Third Quarterly Financial Statements were approved and authorised for issue by the Board on 10 October 2019.

簡明綜合財務報表附註

截至二零一九年八月三十一日止三個月及九個月

8. 每股(虧損)盈利(續)

就計算每股基本及攤薄(虧 損)盈利所計算之普通股加 權平均數乃基於假設於本公 司註冊成立時發行股份、重 組及向股東進行資本化發行 (定義見招股章程)已於二零 一七年十二月一日進行。

由於截至二零一九年及二零 一八年八月三十一日止九個 月,並無任何具潛在攤薄影 響之普通股,每股攤薄(虧 損)盈利與每股基本(虧損) 盈利相同。

9. 股息

董事不建議就截至二零一九 年八月三十一日止九個月派 付中期股息(二零一八年 ﹕ 無)。

10. 批准第三季度財務報表

董事會於二零一九年十月十 日批准及授權刊發第三季度 財務報表。

BUSINESS REVIEW

The Group is an IT service provider based in Malaysia and principally engaged in the design, procurement, installation and maintenance of customised systems application for corporate customers. Our services mainly include system integration and development services, IT outsourcing services and maintenance and consultancy services.

The successful listing of the Company's shares (the "Shares") on GEM of the Stock Exchange on 22 October 2018 was an important milestone for the Group, enhancing our capital strength and reinforcing the Group's resources for future development.

FINANCIAL REVIEW

Revenue

The Group's revenue was derived from three principal sources, namely, system integration and development services, IT outsourcing services and maintenance and consultancy services which are analysed in Note 4 to the Third Quarterly Financial Statements.

For the nine months ended 31 August 2019, the Group recorded a decrease in total revenue by approximately 65.3% to approximately RM14.9 million (nine months ended 31 August 2018: approximately RM42.8 million). The decrease in revenue was mainly attributable to the implementation phase of the existing largescale IT projects of the Group, including Project W (as defined in the Prospectus), which have been substantially completed, and thus the revenue contribution by these projects decreased.

業務回顧

本集團是一間以馬來西亞為基地 之資訊科技服務供應商,專門為 企業客戶設計、採購、安裝及維 修個人化系統應用程式。我們之 服務主要包括系統整合及開發服 務、資訊科技外判服務以及維修 及顧問服務。

管理層討論及分析

本公司股份(「股份」)於二零一八 年十月二十二日於聯交所GEM成 功上市為本集團的重要里程碑, 加強我們之資本實力及鞏固本集 團未來發展之資源。

財務回顧

收益

本 集 團 之 收 益 源 自 三 大 業 務 來 源,即系統整合及開發服務、資 訊科技外判服務以及維修及顧問 服務,其詳情載於第三季度財務 報表附註4。

截至二零一九年八月三十一日止 九個月,本集團錄得總收益減少 約65.3%至 約 馬 幣14,900,000元 (截至二零一八年八月三十一日止 九個月 ﹕約馬幣42,800,000元)。 收益減少主要由於本集團現有的 大型資訊科技項目的實施階段, 包括項目W(根據招股章程中之定 義)已接近完成,因此該等項目貢 獻之收益減少。

管理層討論及分析

MANAGEMENT DISCUSSION AND ANALYSIS

The Group is currently going through its business cycle of bidding new projects. During the nine months ended 31 August 2019, its resources were focused on completing existing engagements on hand and tender bidding processes in order to secure future revenue streams.

Details of changes in the revenue derived from system integration and development services, IT outsourcing services, and maintenances and consultancy services are analysed as below.

System integration and development services

For system integration and development services, the revenue decreased by approximately 65.6% from approximately RM40.1 million for the nine months ended 31 August 2018 to approximately RM13.8 million for the nine months ended 31 August 2019.

The decrease in revenue was mainly attributable to the decrease in revenue recognised by Project W attributable to the Group's largest customer, Customer D (as defined in the Prospectus).

本集團目前正處於競投新項目的 業務週期,於截至二零一九年八 月三十一日止九個月,本集團之 資源專注於完成現有項目及招標 程序,以確保未來的收益來源。

有關系統整合及開發服務、資訊 科技外判服務以及維修及顧問服 務之收益變動詳情如下。

系統整合及開發服務

就系統整合及開發服務而言,收 益由截至二零一八年八月三十一 日 止 九 個 月 約 馬 幣40,100,000 元減少約65.6%至截至二零一九 年八月三十一日止九個月約馬幣 13,800,000元。

收益減少主要由於來自本集團最 大客戶客戶D(定義見招股章程)之 項目W中確認之收益減少。

The Group serves as a subcontractor of Customer D to implement a system providing portal services that allow members of a social security organisation in Malaysia to perform application, contribution, claim and other related activities. Project W was commenced in December 2016. For the nine months ended 31 August 2019, the Group recognised revenue of approximately RM4.8 million (nine months ended 31 August 2018: approximately RM29.0 million) from Project W. At 31 August 2019, over 80% of Project W has been completed and has accounted for aggregate revenue of approximately RM61.4 million and the whole project is expected to be completed in or around July 2020.

IT outsourcing services

For IT outsourcing services, the revenue decreased by approximately 52.3% from approximately RM1,218,000 for the nine months ended 31 August 2018 to approximately RM581,000 for the nine months ended 31 August 2019. The decrease in revenue was mainly due to the decrease in the number of IT outsourcing projects.

Maintenance and consultancy services

For maintenance and consultancy services, the revenue decreased by approximately 66.0% from approximately RM1,508,000 for the nine months ended 31 August 2018 to approximately RM513,000 for the nine months ended 31 August 2019. The decrease in revenue was mainly attributable to scale-down of projects by customers.

本集團作為客戶D之分判商,執 行提供入門網站服務之系統,供 馬來西亞社會保障機構成員進行 申請、供款、申索及其他相關活 動。 項 目W於 二 零 一 六 年 十 二 月 開 始。 截 至 二 零 一 九 年 八 月 三十一日止九個月,本集團已從 項目W錄得收益約馬幣4,800,000 元(截至二零一八年八月三十一 日止九個月:約馬幣29,000,000 元)。於二零一九年八月三十一 日,項目W已完成超過80%及已 合共錄得約馬幣61,400,000元之 收益,整個項目預期將於二零二 零年七月左右完成。

管理層討論及分析

資訊科技外判服務

就資訊科技外判服務而言,收益 由截至二零一八年八月三十一日 止九個月約馬幣1,218,000元減少 約52.3%至截至二零一九年八月 三十一日止九個月約馬幣581,000 元。收益減少乃主要由於資訊科 技外判服務之項目數量減少。

維修及顧問服務

就維修及顧問服務而言,收益由 截至二零一八年八月三十一日止 九 個 月 約 馬 幣1,508,000元 減 少 約66.0%至截至二零一九年八月 三十一日止九個月約馬幣513,000 元。收益減少乃主要由於客戶之 項目規模縮小。

Gross profit and gross profit margin

The following table sets forth a breakdown of gross profit and gross profit margin for the period indicated:

毛利及毛利率

下表載列所示期間毛利及毛利率 之明細 ﹕

		(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
		2019 二零一九年	2018 二零一八年
		RM'000 馬幣千元	RM'000 馬幣千元
Revenue Cost of services and materials sold	收益 服務及已售材料 成本	14,871 (10,459)	42,830 (21,555)
Gross profit	毛利	4,412	21,275
Gross profit margin	毛利率	29.7%	49.7%

T h e g r o s s p r o f i t d e c r e a s e d b y approximately 79.3%, from approximately RM21.3 million for the nine months ended 31 August 2018 to approximately RM4.4 million for the nine months ended 31 August 2019. The decrease in gross profit was consistent with the decrease in revenue as set out above.

The gross profit margin decreased from approximately 49.7% for the nine months ended 31 August 2018 to approximately 29.7% for the nine months ended 31 August 2019. Such decrease was due to the increase in cost of services and materials sold outran the increase in revenue resulting from the increase in purchase costs and staff costs of IT specialists for the nine months ended 31 August 2019.

毛 利 由 截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 約 馬 幣 21,300,000元 減 少 約79.3%至 截 至二零一九年八月三十一日止九 個月約馬幣4,400,000元。毛利減 少與上述收益減少一致。

毛 利 率 由 截 至 二 零 一 八 年 八 月 三十一日止九個月約49.7%減少 至截至二零一九年八月三十一日 止九個月約29.7%。該減幅是由 於截至二零一九年八月三十一日 止九個月採購成本及資訊科技專 才之員工成本上升導致服務及已 售材料成本之增幅超出收益之增 幅。

Administrative expenses

Administrative expenses increased by approximately 86.1% from approximately RM2.1 million for the nine months ended 31 August 2018 to approximately RM3.9 million for the nine months ended 31 August 2019. The increase was primarily due to additional administrative expenses including directors' emolument and legal and professional fees after the Listing.

Finance costs

T h e f i n a n c e c o s t s i n c r e a s e d b y approximately 42.5% from approximately RM40,000 for the nine months ended 31 August 2018 to approximately RM57,000 for the nine months ended 31 August 2019. The increase was primarily due to increase in the number of motor vehicles leased under finance leases.

Income tax expenses

The income tax expenses decreased from approximately RM2,296,000 for the nine months ended 31 August 2018 to approximately RM8,000 for the nine months ended 31 August 2019. The decrease was mainly due to the decrease in profit of a subsidiary, Concorde Technology Sdn. Bhd., for the nine months ended 31 August 2019, the profit of which is subject to Malaysia corporate income tax.

Profit for the period

The profit for the period decreased by approximately 93.7% from approximately RM9,992,000 for the nine months ended 31 August 2018 to approximately RM626,000 for the nine months ended 31 August 2019.

行政開支

行 政 開 支 由 截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 約 馬 幣 2,100,000元增加約86.1%至截至 二零一九年八月三十一日止九個 月約馬幣3,900,000元。該增幅主 要由於上市後產生之額外行政開 支,包括董事薪酬以及法律及專 業費用。

融資成本

融資成本由截至二零一八年八月 三十一日止九個月約馬幣40,000 元增加約42.5%至截至二零一九 年八月三十一日止九個月約馬幣 57,000元。該增幅主要由於融資 租賃項下租賃汽車數目增加所致。

所得稅開支

所 得 稅 開 支 由 截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 約 馬 幣 2,296,000元 減 少 至 截 至 二 零 一九年八月三十一日止九個月約 馬 幣8,000元。 所 得 稅 開 支 減 少 主要是由於一間需就其溢利繳納 馬 來 西 亞 企 業 所 得 稅 的 附 屬 公 司 Concorde Technology Sdn. Bhd., 於 截 至 二 零 一 九 年 八 月 三十一日止九個月之溢利減少。

本期間溢利

本 期 間 溢 利 由 截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 約 馬 幣 9,992,000元減少約93.7%至截至 二零一九年八月三十一日止九個 月約馬幣626,000元。

MANAGEMENT DISCUSSION AND 管理層討論及分析

Excluding non-recurring listing expenses, the profit for the period decreased by approximately 96.3% from approximately RM16,866,000 for the nine months ended 31 August 2018 to approximately RM626,000 for the nine months ended 31 August 2019, as analysed below:

ANALYSIS

撇 除 非 經 常 性 上 市 開 支, 本 期 間 溢 利 由 截 至 二 零 一 八 年 八 月 三 十 一 日 止 九 個 月 約 馬 幣 16,866,000元 減 少 約96.3%至 截 至二零一九年八月三十一日止九 個 月 約 馬 幣626,000元, 分 析 如 下:

		(Unaudited) (未經審核) For the nine months ended 31 August 截至八月三十一日止九個月
	2019 二零一九年		2018 二零一八年
	RM'000 馬幣千元		RM'000 馬幣千元
Profit for the period 本期間溢利 Add: Listing expenses 加:上市開支		626 —	9,992 6,874
		626	16,866

The decrease in the profit was mainly attributable to the decrease in revenue and increase in administrative expenses as analysed above.

溢利減少主要由於上述之收益減 少及行政開支增加所致。

Prospects

The Group is confident of its future prospects and believes that the Listing would enhance the Group's brand awareness and publicity on an international level and help to attract new potential local and international customers. To enhance the quality of services and expand its business, the Group actively pursues the following business strategies: (i) to be a major IT solution provider to the Digital Free Trade Zone in Malaysia; (ii) to capture new growth opportunities through its successful product, Square Intelligence; (iii) leveraging on the business networks of the Pre-IPO Investors to introduce IT products in the PRC into Malaysia, and diversifying its service offerings to its customers.

MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES AND AFFILIATED COMPANIES

During the nine months ended 31 August 2019, the Group did not have any material acquisitions and disposals of subsidiaries and affiliated companies, save as disclosed in the Prospectus.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board believes that all the major risk factors relevant to the Group have already been disclosed in the section headed "Risk factors" of the Prospectus. Please refer thereto for more information.

展望

本集團對未來前景充滿信心,並 相信上市將提升本集團於國際層 面之品牌知名度及推廣,有助於 吸引新潛在本地及國際客戶。為 提高服務質素及業務擴充,本集 團積極推行以下業務策略:(i)成 為馬來西亞數碼自由貿易區之主 要資訊科技解決方案供應商;(ii) 透過成功產品Square Intelligence 致力把握新增長機遇;(iii)憑藉首 次公開發售前投資者之業務網絡 將中國資訊科技產品引進馬來西 亞;及多元化提供予客戶之服務。

管理層討論及分析

附屬公司及聯屬公司之重大收購 及出售

除招股章程所披露者外,於截至 二零一九年八月三十一日止九個 月,本集團並無任何附屬公司及 聯屬公司之重大收購及出售。

主要風險及不確定因素

董事會相信,有關本集團之所有 主要風險已於招股章程「風險因 素」一節披露。有關更多資料,請 參閱招股章程。

FOREIGN EXCHANGE EXPOSURE

The Group has minimal exposure to foreign currency risk as most of the business transactions, assets and liabilities are principally denominated in Malaysian Ringgit and Hong Kong dollars. The Group currently does not have a foreign currency hedging policy in respect of foreign currency transactions, assets and liabilities. The management monitors our foreign currency exposure closely and will consider hedging significant foreign currency exposure should the need arise.

USE OF PROCEEDS

The net proceeds raised by the Company from the Share Offer of the Company were approximately RM30.5 million (equivalent to approximately HK\$58.6 million) (based on the final Offer Price (as defined in the Prospectus) of HK\$0.62 per offer share adjusted by the Downward Offer Price Adjustment (as defined in the Prospectus)). The Company intends to apply the net proceeds on a pro rata basis for the purposes as disclosed in the section headed "Future Plans and Use of Proceeds — Use of Proceeds" of the Prospectus and the price reduction announcement dated 16 October 2018, which are as follows:

— approximately RM3.05 million (equivalent to approximately HK\$5.86 million), representing approximately 10% of the net proceeds, for strengthening our technical team by recruiting more IT specialists

外匯風險

由於大部分業務交易、資產及負 債主要以馬幣及港元計值,故本 集團面對的外匯風險極低。本集 團目前並無就外幣交易、資產及 負債設定外幣對沖政策。管理層 密切監察我們的外匯風險,並會 在有需要時考慮對沖重大外幣風 險。

管理層討論及分析

所得款項用途

經下調發售價調整(定義見招股 章程)作出調整後,本公司自股 份 發 售 籌 募 之 所 得 款 項 淨 額 約 為 馬 幣30,500,000元(相 當 於 約 58,600,000港元)(按最終發售價 (定義見招股章程)每股發售股份 0.62港元計算)。本公司擬按招股 章程「未來計劃及所得款項用途 — 所得款項用途」一節及於二零一八 年十月十六日之發售價下調公告 所披露之用途按比例應用所得款 項淨額,詳情如下 ﹕

— 約馬幣3,050,000元(相當於 約5,860,000港元)(佔所得 款項淨額約10%)將用於招 聘更多資訊科技專才以加強 技術團隊

• approximately RM18.3 million (equivalent to approximately HK\$35.2 million), representing approximately 60% of the net proceeds, for purchase of hardware and equipment for establishment of IT infrastructure for the provision of cloud storage and cloud computing services
• a p p r o x i m a t e l y R M 6 . 1 m i l l i o n (equivalent to approximately HK\$11.7 million), representing approximately 20% of the net proceeds, for research and development of advanced and adapted versions of our Group's existing IT products
• approximately RM3.05 million (equivalent to approximately HK\$5.86 million), representing approximately 10% of the net proceeds, as general working capital

As at the date of this report, there were no changes of the business plans from those disclosed in the Prospectus.

— 約 馬 幣18,300,000元(相 當 於 約35,200,000港 元 )(佔 所得款項淨額約60%)將於 購買硬件及設備以建立資訊 科技基礎設施,從而提供雲 端儲存及雲端運算服務

管理層討論及分析

• 約馬幣6,100,000元(相當於 約11,700,000港 元 )(佔 所 得款項淨額約20%)將用於 研發本集團現有資訊科技產 品之進階版及適應版
• 約馬幣3,050,000元(相當於 約5,860,000港元)(佔所得 款項淨額約10%)將用作為 一般營運資金
• 截至本報告日期,自招股章程所 披露之業務計劃概無變動。

DISCUSSION AND ANALYSIS

MANAGEMENT

As at 31 August 2019, the net proceeds had been utilised as follows:

於二零一九年八月三十一日,已 使用所得款項淨額如下:

管理層討論及分析

		Net proceeds from the Share Offer	Amount utilised as at 31 August 2019 於 二零一九年	Amount unutilised as at 31 August 2019 於 二零一九年
		股份發售 之所得 款項淨額 RM million 馬幣百萬元	八月 三十一日 已動用 之金額 RM million 馬幣百萬元	八月 三十一日 未動用 之金額 RM million 馬幣百萬元
Strengthening our technical team by recruiting more IT specialists Purchase of hardware	招聘更多資訊科技 專才以加強技術 團隊 購買硬件及設備以	3.05	2.04	1.01
and equipment for establishment of IT infrastructure for the provision of cloud storage and cloud computing services Research and	建立資訊科技基 礎設施,從而提 供雲端儲存及雲 端運算服務 研發本集團現有資	18.30	0.89	17.41
development of advanced and adapted versions of our Group's existing	訊科技產品之進 階版及適應版
IT products General working capital	一般營運資金	6.10 3.05	3.39 3.05	2.71 —
		30.50	9.37	21.13

DIVIDENDS

The Board does not recommend the payment of an interim dividend for the nine months ended 31 August 2019 (nine months ended 31 August 2018: nil).

股息

董 事 會 並 不 建 議 派 付 截 至 二 零 一九年八月三十一日止九個月之 中期股息(截至二零一八年八月 三十一日止九個月:無)。

CORPORATE GOVERNANCE PRACTICES

The Company has adopted the principles and the code provisions in the Corporate Governance Code (the "CG Code") as set out in Appendix 15 to the GEM Listing Rules.

During the nine months ended 31 August 2019, the Company had complied with the CG Code, except for the deviations as stated below:

Code Provision A.1.8

Under code provision A.1.8 in the CG Code, the Company should arrange appropriate insurance cover in respect of legal action which may be taken against its Directors. The Company has not reached an agreement with an insurer and the insurance cover in respect of legal action which may be taken against the Directors has not been in place until 19 February 2019.

Code Provision A.2.1

Pursuant to code provision A.2.1 of the CG Code, the roles of chairman and chief executive officer should be separated and should not be performed by the same individual. The division of responsibilities between the chairman and chief executive officer should be clearly established and set out in writing.

企業管治守則

本公司已採納GEM上市規則附錄 十五所載企業管治守則(「企業管 治守則」)之準則及守則條文。

於截至二零一九年八月三十一日 止九個月,本公司已遵守企業管 治守則;惟下文所述之偏離情況 除外:

守則條文A.1.8條

根據守則條文A.1.8條,本公司應 就可能對董事採取之法律行動作 適當之投保安排。直至二零一九 年二月十九日,本公司並無與保 險人達成協議,而有關可能對董 事採取之法律行動之保險尚未到 位。

守則條文A.2.1條

根 據 企 業 管 治 守 則 守 則 條 文 第 A.2.1條, 主 席 與 行 政 總 裁 之 角 色應有區分,並不應由同一人兼 任。主席與行政總裁之間的職責 分工應明確規定並以書面載述。

Mr. Chong Yee Ping is currently the Chairman of the Board and the Chief Executive Officer of the Company, and is responsible for formulating the overall business development strategy and planning of the Group. In view of the fact that Mr. Chong has been responsible for the overall management of the Group since its inception, the Board believes that it is in the best interest of the Group to continue to have Mr. Chong taking up both roles for effective management and business development. The Board considers that the balance of power and authority, accountability and independent decisionmaking under our present arrangement will not be impaired because of the diverse background and experience of the other executive director, non-executive Directors and independent non-executive Directors. Further, the Audit Committee has free and direct access to the Company's external auditors and independent professional advisers when it considers necessary. Therefore, the Directors consider that the deviation from code provision A.2.1 of the CG Code is appropriate in such circumstance.

鍾宜斌先生目前為本公司之董事 會主席兼行政總裁,並負責制定 本集團之整體業務發展策略及規 劃。鑑於鍾先生自創立以來一直 負責本集團之整體管理,董事會 相信,鍾先生兼任該等職務符合 本集團持續擁有最佳利益,以取 得有效之管理及業務發展。董事 會認為,目前安排無損權力及授 權與問責性及獨立決策能力之平 衡,原因為其他執行董事、非執 行董事及獨立非執行董事之多元 化背景及經驗。此外,審核委員 會可就其認為有必要時自由及直 接聯繫本公司之外部核數師及獨 立專業顧問。因此,董事認為偏 離企業管治守則守則條文第A.2.1 條在此情況下屬恰當。

In order to maintain good corporate governance and to fully comply with code provision A.2.1 of the CG Code, the Board comprises six other experienced and highcalibre individuals including one other executive Director, two non-executive Directors and three independent nonexecutive Directors who would be able to offer advice from various perspectives. In addition, for major decisions of the Group, the Company will consult appropriate Board committees and senior management. Considering the present size and the scope of business of the Group, the Directors consider that it is not in the best interest of the Company and the shareholders as a whole to separate the roles of the chairman and the chief executive officer, because the separation would render the decision-making process of the Company less efficient than the current structure. Therefore, the Directors consider that the present arrangement is beneficial to and in the interest of the Company and the shareholders as a whole and the deviation from code provision A.2.1 of the CG Code is appropriate in such circumstance.

DIRECTORS' SECURITIES TRANSACTIONS

The Company has adopted the required standard of dealings set out in Rules 5.46 to 5.67 of the GEM Listing Rules (the "Standard of Dealings"), as the code of conduct regarding the Directors' securities transactions. Having made specific enquiries of all Directors, each of the Directors has confirmed that he has complied with the Standard of Dealings from 1 December 2018 and up to the date of this report.

為維持良好企業管治及全面遵守 企 業 管 治 守 則 守 則 條 文 第A.2.1 條,董事會還有其餘六名具經驗 及卓越才幹之人士,包括另外一 名 執 行 董 事、 兩 名 非 執 行 董 事 及三名獨立非執行董事,彼等能 夠在不同方面提供意見。此外, 就本集團之重大決策而言,本公 司將會諮詢適當的董事會委員會 及高級管理層。經考慮本集團現 時規模及業務範疇,董事認為區 分主席與行政總裁之角色並不符 合本公司及其股東之整體最佳利 益,原因是相比現有架構,區分 該等角色將令本集團之決策過程 效率降低。因此,董事認為現時 安排對本公司及股東整體有利及 符合彼等整體利益,而偏離企業 管治守則守則條文第A.2.1條在此 情況下屬恰當。

董事之證券交易

本 公 司 已 採 納GEM上 市 規 則 第 5.46至5.67條所載交易規定標準 (「交易標準」),作為董事之證券 交易之操作守則。經向所有董事 作出特定查詢後,董事各自已確 認自二零一八年十二月一日及直 至本報告日期已遵守交易標準。

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

None of the Company or any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the nine months ended 31 August 2019.

SHARE OPTION SCHEME

The Company conditionally adopted a share option scheme (the "Share Option Scheme") on 19 September 2018. The purpose of the Share Option Scheme is to grant an option to subscribe for Shares (the "Option") to eligible persons as defined in the Share Option Scheme as incentives or rewards for their contribution to the Group.

Unless otherwise cancelled or amended, the Share Option Scheme will remain in force for a period of 10 years from the date of its adoption on 19 September 2018. During the nine months ended 31 August 2019, no Option has been granted by the Company. As of the date of this report, the Company had 39,000,000 Shares available for issue under the Share Option Scheme (representing 10% of the issued share capital of the Company as at the date of this report). Details of the Share Option Scheme are set out in the paragraph headed "Share Option Scheme" of the section headed "Statutory and General Information" of the Prospectus.

購買、出售或贖回上市證劵

概無本公司或其任何附屬公司於 截至二零一九年八月三十一日止 九個月購買、出售或贖回本公司任 何上市證券。

購股權計劃

本公司於二零一八年九月十九日 有 條 件 地 採 納 一 項 購 股 權 計 劃 (「購股權計劃」)。購股權計劃旨 在向合資格人士(定義見購股權計 劃)授出購股權以認購股份(「購股 權」),作為彼等對本集團作出貢 獻之獎勵或回報。

除非獲取消或修訂,否則購股權 將自其採納日期(二零一八年九月 十九日)起計10年內一直有效。截 至二零一九年八月三十一日止九 個月,本公司並無授出購股權。 截至本報告日期,本公司根據購 股權計劃有39,000,000股可供發 行之股份(佔於本報告日期本公司 已發行股本之10%)。有關購股權 計劃之詳情載列於招股章程「法定 及一般資料」一節「購股權計劃」一 段。

DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS

At 31 August 2019, the interests and short positions of the Directors and chief executives of the Company in the Shares, underlying Shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO")), which were required (a) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO; or (b) pursuant to Section 352 of the SFO, to be recorded in the register referred therein; or (c) pursuant to Rule 5.46 of the GEM Listing Rules to be notified to the Company and the Stock Exchange, were as follows:

Long position in Shares or underlying shares of the Company:

董事及主要行政人員於本公司及 其相聯法團之股份、相關股份及 債券之權益及淡倉

於二零一九年八月三十一日,董 事及本公司主要行政人員於本公 司及其相聯法團(定義見香港法例 第571章證券及期貨條例(「證券 及期貨條例」)第XV部)之股份、 相關股份及債券中,擁有(a)須根 據證券及期貨條例第XV部第7及 8分部知會本公司於聯交所之權益 或淡倉;或(b)本公司根據證券及 期貨條例第352條須登記於該條所 指之登記冊內之權益或淡倉;或 (c)根據GEM上市規則第5.46條須 知會本公司及聯交所之權益或淡 倉如下 ﹕

於本公司股份或相關股份之好倉

Approximate

Name of Director	Notes	Capacity and nature of interest	Number of Shares interested	percentage of the Company's issued share capital 本公司已發行股本
董事姓名	附註	身份及權益性質	擁有權益之股份數目	概約百分比
Mr. Chong Yee Ping	(1)	Interests of controlled corporation	196,560,000 (L)	50.40%
鍾宜斌先生		and person acting in concert 受控法團權益及一致行動人士
Mr. Siah Jiin Shyang	(1)	Interests of controlled corporation	196,560,000 (L)	50.40%
謝錦祥先生		and person acting in concert 受控法團權益及一致行動人士
Mr. Liu Yan Chee		Beneficial owner	57,720,000 (L)	14.80%
James 劉恩賜先生		實益擁有人
Mr. Lam Pang 林鵬先生		Beneficial owner 實益擁有人	38,220,000 (L)	9.80%

Notes:

(1) Delicate Edge Limited is wholly and beneficially owned by Mr. Chong Yee Ping whereas King Nordic Limited is wholly and beneficially owned by Mr. Siah Jiin Shyang. Each of Delicate Edge Limited and King Nordic Limited holds 98,280,000 Shares representing 25.2% of the total issued share capital of the Company.

Mr. Chong Yee Ping and Mr. Siah Jiin Shyang are parties acting in concert (having the meaning ascribed to it under the Hong Kong Code on Takeovers and Mergers (the "Takeovers Code")) as confirmed by them in writing. As such, each of Mr. Chong Yee Ping, Mr. Siah Jiin Shyang, Delicate Edge Limited and King Nordic Limited is deemed to be interested in 196,560,000 Shares held by Delicate Edge Limited and King Nordic Limited in aggregate under the SFO.

(2) The Letter "L" denotes as long positions in the Shares.

Save as disclosed above, at 31 August 2019, none of the Directors and chief executives of the Company and / or any of their respective associates had any interests and short positions in the Shares, underlying shares and debentures of the Company and / or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept by the Company under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to Part XV of the SFO or the GEM Listing Rules.

附註 ﹕

(1) Delicate Edge Limited由鍾宜斌先 生全資實益擁有,而King Nordic Limited由 謝 錦 祥 先 生 全 資 實 益 擁 有。Delicate Edge Limited及 King Nordic Limited各 自 持 有 98,280,000股股份,佔本公司已 發行股本總額25.2%。

誠如鍾宜斌先生及謝錦祥先生書 面確認,彼等為一致行動人士(具 香港公司收購及合併守則(「收購 守則」)項下賦予該詞之涵義)。因 此,根據證券及期貨條例,鍾宜 斌 先 生、 謝 錦 祥 先 生、Delicate Edge Limited 及 King Nordic Limited各 自 被 視 為 於Delicate Edge Limited 及 King Nordic Limited合 共 持 有 之196,560,000 股股份中擁有權益。

(2) 字母「L」指股份中之好倉。

除上文所披露者外,於二零一九 年八月三十一日,概無董事及本 公司主要行政人員及╱或其各自 之聯繫人於本公司及╱或其任何 相聯法團(定義見證券及期貨條例 第XV部)之股份、相關股份及債券 中擁有須根據證券及期貨條例第 352條須由本公司登記於該條所指 之登記冊內之任何權益或淡倉, 或根據證券及期貨條例第XV部或 GEM上市規則須知會本公司及聯 交所之權益或淡倉。

DIRECTORS' RIGHTS TO ACQUIRE SHARES OR DEBENTURES

Save as disclosed under the paragraphs headed "Directors' and chief executives' interests and short positions in the Shares, underlying shares and debentures of the Company and its associated corporations" and "Share Option Scheme" above, at no time during the nine months ended 31 August 2019 was the Company, its holding company, or any of its subsidiaries or associated corporations, a party to any arrangement that would enable the Directors and chief executives of the Company (including their respective spouse and children under 18 years of age) to acquire benefits by means of the acquisition of the Shares or underlying shares in, or debentures of, the Company or any of its associated corporations.

SUBSTANTIAL SHAREHOLDERS' INTERESTS AND SHORT POSITIONS IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY

So far as the Directors are aware, at 31 August 2019, the following persons have or are deemed or taken to have an interest and / or short position in the Shares or the underlying Shares which would fall to be disclosed under the provisions of Division 2 and 3 of Part XV of the SFO or which were recorded in the register required to be kept by the Company under Section 336 of the SFO.

董事購入股份或債券之權利

除於上文「董事及主要行政人員於 本公司及其相聯法團之股份、相 關股份及債券之權益及淡倉」及 「購股權計劃」兩節所披露者外, 截至二零一九年八月三十一日止 九個月內任何時間,本公司、其 控股公司或其任何附屬公司或其 相聯法團均無訂立任何安排,使 董事及本公司主要行政人員(包括 其各自之配偶及未滿18歲之子女) 通過購入本公司或其任何相聯法 團之股份或相關股份或債券之方 式獲得利益。

主要股東於本公司股份及相關股 份之權益及淡倉

據董事所悉,於二零一九年八月 三十一日,以下人士於股份或相 關股份中擁有或被視作或當作擁 有根據證券及期貨條例第XV部第 2及第3分部的條文須作出披露, 或須載入本公司根據證券及期貨 條例第336條所存置的登記冊內的 權益及╱或淡倉。

				Approximate percentage of
Name of substantial shareholders	Notes	Capacity and nature of interest	Number of Shares interested	the Company's issued share capital
主要股東姓名	附註	身份及權益性質	擁有權益之股份數目	本公司已發行股本 概約百分比
Mr. Chong Yee Ping	(1)	Beneficial owner and person acting	196,560,000 (L)	50.40%
鍾宜斌先生		in concert 實益擁有人及一致行動人士
Mr. Siah Jiin Shyang	(1)	Beneficial owner and person acting	196,560,000 (L)	50.40%
謝錦祥先生		in concert 實益擁有人及一致行動人士
Mr. Liu Yan Chee		Beneficial owner	57,720,000 (L)	14.80%
James 劉恩賜先生		實益擁有人
Mr. Lam Pang 林鵬先生		Beneficial owner 實益擁有人	38,220,000 (L)	9.80%

Notes:

(1) Delicate Edge Limited is wholly and beneficially owned by Mr. Chong Yee Ping whereas King Nordic Limited is wholly and beneficially owned by Mr. Siah Jiin Shyang. Each of Delicate Edge Limited and King Nordic Limited holds 98,280,000 Shares representing 25.2% of the total issued share capital of the Company.

Mr. Chong Yee Ping and Mr. Siah Jiin Shyang are parties acting in concert (having the meaning ascribed to it under the Takeovers Code) as confirmed by them in writing. As such, each of Mr. Chong Yee Ping, Mr. Siah Jiin Shyang, Delicate Edge Limited and King Nordic Limited is deemed to be interested in 196,560,000 Shares held by Delicate Edge Limited and King Nordic Limited in aggregate under the SFO.

(2) The Letter "L" denotes as long positions in the Shares.

附註:

(1) Delicate Edge Limited由鍾宜斌先 生全資實益擁有,而King Nordic Limited由 謝 錦 祥 先 生 全 資 實 益 擁 有。Delicate Edge Limited及 King Nordic Limited各 自 持 有 98,280,000股股份,佔本公司已 發行股本總額25.2%。

誠如鍾宜斌先生及謝錦祥先生書 面確認,彼等為一致行動人士(具 收購守則項下賦予該詞之涵義)。 因此,根據證券及期貨條例,鍾 宜斌先生、謝錦祥先生、Delicate Edge Limited 及 King Nordic Limited各 自 被 視 為 於Delicate Edge Limited 及 King Nordic Limited合 共 持 有 之196,560,000 股股份中擁有權益。

⁽²⁾ 字母「L」指股份中之好倉。

Save as disclosed above, at 31 August 2019, the Company has not been notified by any persons (other than the Directors or chief executive of the Company) who had interests or short positions in the Shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register required to be kept by the Company under Section 336 of the SFO.

COMPETING INTERESTS

None of the Directors and controlling shareholders of the Company nor their respective associates (as defined under the GEM Listing Rules) had any interest in any other companies at 31 August 2019 which may, directly or indirectly compete with the Group's business.

DEED OF NON-COMPETITION

Mr. Chong Yee Ping, Mr. Siah Jiin Shyang, Delicate Edge Limited and King Nordic Limited, being the controlling shareholders (as defined under the GEM Listing Rules) of the Company, have executed a deed of non-competition dated 19 September 2018 in favour of the Company (the "Deed of Non-Competition"). Details of the Deed of Non-Competition was set out in the section headed "Relationship with Controlling Shareholders" of the Prospectus.

The independent non-executive Directors of the Company have reviewed the status of compliance and confirmed that all the undertakings under the Deed of Non-Competition have been complied with by Mr. Chong Yee Ping, Mr. Siah Jiin Shyang, Delicate Edge Limited and King Nordic Limited up to the date of this report.

除上文所披露者外,董事並不知 悉任何其他人士(本公司董事或主 要行政人員除外)於二零一九年 八月三十一日有關於本公司股份 或相關股份中擁有根據證券及期 貨條例第XV部第2及第3分部之 條文須向本公司披露之權益或淡 倉、或記錄於根據證券及期貨條 例第336條規定須由本公司存置之 股東名冊之權益或淡倉。

競爭權益

於二零一九年八月三十一日,概 無董事及本公司控股股東或彼等 各自之聯繫人(定義見GEM上市規 則)會與本集團業務直接或間接構 成競爭之任何其他公司擁有任何 權益。

不競爭契據

鍾 宜 斌 先 生、 謝 錦 祥 先 生、 Del icate Edge Limited 及 King Nordic Limited(即本公司控股股 東(定義見GEM上市規則))已簽 立日期為二零一八年九月十九日 以本公司為受益人之不競爭契據 (「不競爭契據」)。有關不競爭契 據之詳情載於招股章程「與控股股 東之關係」一節。

直至本報告日期,本公司獨立非 執行董事已審視不競爭契據的遵 守情況並確認鍾宜斌先生、謝錦 祥先生、Delicate Edge Limited及 King Nordic Limited已遵守所有不 競爭契據項下之承諾。

INTERESTS OF COMPLIANCE ADVISER

At 31 August 2019, save as the compliance adviser agreement entered into between the Company and VBG Capital Limited ("VBG"), neither VBG nor its directors, employees or close associates had any interest in relation to the Group which is required to be notified to the Company pursuant to Rule 6A.32 of the GEM Listing Rules.

AUDIT COMMITTEE

The Company established an Audit Committee with written terms of reference in compliance with Rule 5.28 of the GEM Listing Rules and the paragraph C.3 of CG Code and Corporate Governance Report as set out in Appendix 15 of the GEM Listing Rules.

The primary duties of the Audit Committee are to assist the Board in providing an independent view of the effectiveness of the Company's financial reporting process, internal control and risk management system, to oversee the audit process and to perform other duties and responsibilities as assigned by the Board. As at the date of this report, the Audit Committee consists of three independent non-executive Directors, namely Ms. Ho Suet Man Stella (chairman of the Audit Committee), Mr. Chan San Ping and Mr. Su Chi Wen.

The Audit Committee has reviewed with the management the accounting standards and practices adopted by the Group, and discussed financial reporting matters including the review of unaudited c o n d e n s e d c o n s o l i d a t e d f i n a n c i a l statements for the nine months ended 31 August 2019 and is of the opinion that the preparation of such statements complied with applicable accounting standards and that adequate disclosures have been made in respect thereof.

合規顧問之權益

於二零一九年八月三十一日,除 本公司與建泉融資有限公司(「建 泉」)訂立之合規顧問協議外,建 泉及其董事、僱員或緊密聯繫人 概無擁有有關本集團須根據GEM 上市規則第6A.32條知會本公司之 任何權益。

審核委員會

本 公 司 已 成 立 審 核 委 員 會, 並 遵 守GEM上 市 規 則 第5.28條 及 GEM上市規則附錄十五所載之企 業管治守則及企業管治報告第C.3 段以書面形式訂明之職權範圍。

審核委員會之主要職責為協助董 事會就本公司財務報告程序、內 部 監 控 及 風 險 管 理 系 統 之 有 效 性提供獨立意見、監督審核過程 及履行董事會指派之其他職務及 職責。於本報告日期,審核委員 會由三名獨立非執行董事組成, 即何雪雯女士(審核委員會之主 席)、陳生平先生及蘇熾文先生。

審核委員會已與管理層審閱本集 團所採納之會計準則及慣例,並 討論有關財務申報事宜、包括審 閱截至二零一九年八月三十一日 止九個月之未經審核簡明綜合財 務報表,並認為該等報表已按照 適用會計準則而編製,且已作出 充分披露。

BOARD OF DIRECTORS

Executive Directors

Mr. Chong Yee Ping (Chairman and Chief Executive Officer)

Mr. Liu Yan Chee James

Non-executive Directors

Mr. Siah Jiin Shyang

Mr. Lam Pang

Independent Non-executive Directors

Mr. Chan San Ping

Ms. Ho Suet Man Stella

Mr. Su Chi Wen

By order of the Board

Mindtell Technology Limited

Chong Yee Ping

Chairman and Chief Executive Officer

Hong Kong, 10 October 2019

董事會 執行董事 鍾宜斌先生 (主席兼行政總裁) 劉恩賜先生 非執行董事 謝錦祥先生 林鵬先生 獨立非執行董事

陳生平先生 何雪雯女士

蘇熾文先生

承董事會命

Mindtell Technology Limited 鍾宜斌 主席兼行政總裁

香港,二零一九年十月十日