Opensys An20200518a2 1

OPENSYS (M) BERHAD - Company No: 199501040614 (369818-W)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL REPORT
Interim financial report on results for the quarter ended 31 March 2020.
The figures have not been audited.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
INDIVIDUAL PERIOD CUMULATIVE PERIOD

PRECEDING
YEAR
CURRENT YEAR CORRESPONDING
QUARTER QUARTER 03 MONTHS ENDED
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
31.03.2020 31.03.2019 31.03.2020 31.03.2019
RM’000 RM’000 RM’000 RM’000
Revenue 17,229 14,740 17,229 14,740

Cost of revenue (11,305) (9,278) (11,305) (9,278)
------------- ------------- ------------- -------------
Gross profit 5,924 5,462 5,924 5,462
Other income 190 225 190 225

Research & development expenses (671) (672) (671) (672)
Administration and other expenses (2,859) (2,547) (2,859) (2,547)
Finance costs (218) (282) (218) (282)
------------- ------------- ------------- -------------
Profit before tax 2,366 2,186 2,366 2,186
Tax expense (694) (642) (694) (642)
------------- ------------- ------------- -------------
Total comprehensive income
for the period 1,672 1,544 1,672 1,544
======== ======== ======== ========
Attributable to:
Equity holders of the Company 1,666 1,529 1,666 1,529
Non-controlling interest 6 15 6 15
------------- ------------- ------------- -------------
1,672 1,544 1,672 1,544
======== ======== ======== ========
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction

with the Annual Financial Report for the year ended 31 December 2019 and the accompanying
explanatory notes attached to the interim financial statements.
1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME –

(continued)

PRECEDING
YEAR
31.03.2020 31.03.2019 31.03.2020 31.03.2019
RM’000 RM’000 RM’000 RM’000
EARNINGS PER SHARE
Basic earnings per share (sen) 0.56 0.51 0.56 0.51

======== ======== ======== ========
Diluted earnings per share (sen) N/A N/A N/A N/A
======== ======== ======== ========
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction

with the Annual Financial Report for the year ended 31 December 2019 and the accompanying
2
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
UNAUDITED AUDITED
AS AT 31.03.2020 AS AT 31.12.2019
RM’000 RM’000
ASSETS
Non-current assets
Property, plant & equipment 46,075 46,784

Fixed deposits 8,144 8,083
------------- -------------
54,219 54,867
------------- -------------
Current assets
Inventories 8,629 8,400

Trade receivables 27,082 19,527
Other receivables, deposits &
prepayments 1,972 2,555
Short term investment 12,527 13,457
Cash & bank balances 4,397 5,869
------------- -------------
54,607 49,808
------------- -------------
Total assets 108,826 104,675

======== ========
EQUITY AND LIABILITIES
Share capital 29,789 29,789

Retained earnings 34,404 34,226
------------- -------------
Equity attributable to equity holders 64,193 64,015
Non-controlling interest 71 65
------------- -------------
Total equity 64,264 64,080
======== ========
The Condensed Consolidated Statement of Financial Position should be read in conjunction with
the Annual Financial Report for the year ended 31 December 2019 and the accompanying
3
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

– (Continued)
UNAUDITED AUDITED
AS AT 31.03.2020 AS AT 31.12.2019
RM’000 RM’000
Non-current liabilities
Lease liabilities 3,877 4,382

Term loans 8,659 8,845
Deferred tax liabilities 3,648 3,631
------------- -------------
16,184 16,858
------------- -------------
Current liabilities
Trade payables 3,102 7,109

Other payables & accruals 8,325 9,167
Term loans 647 616
Bankers’ acceptance 530 2,048
Contract liability 13,592 1,850
Income tax liabilities 75 110
------------ ------------
28,378 23,737
------------- -------------
Total liabilities 44,562 40,595

------------- -------------
Total equity and liabilities 108,826 104,675

======== ========
Net assets per share attributable to ordinary

equity holders of the Company (RM) 0.22 0.21
======== =========
The Condensed Consolidated Statement of Financial Position should be read in conjunction with
4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to Equity
---------Holders of the Company-------
Non-distributable Distributable
Non-
Share Retained Controlling Total
Capital Earnings Total Interest Equity
RM’000 RM’000 RM’000 RM’000 RM’000
As at 31 December 2019 29,789 34,227 64,016 65 64,081
Profit for the period,

represents total
comprehensive income - 1,666 1,666 6 1,672
for the period
Dividend - (1,489) (1,489) - (1,489)

------------ ------------ ----------- ------------ ----------
As at 31 March 2020 29,789 34,404 64,193 71 64,264
======= ======= ====== ======= ======
As at 31 December 2018 29,789 27,599 57,388 26 57,414
Profit for the period,

represents total
comprehensive income - 1,529 1,529 15 1,544
for the period
Dividend - (1,489) (1,489) - (1,489)

------------ ------------ ----------- ------------ ----------
As at 31 March 2019 29,789 27,639 57,428 41 57,469
======= ======= ====== ======= ======
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with
5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
03 MONTHS ENDED
UNAUDITED UNAUDITED
31.03.2020 31.03.2019
RM’000 RM’000
Cash flows from operating activities
Profit before tax 2,366 2,186
Adjustments for:-
Amortisation of development expenditure - 26

Depreciation 1,859 1,696
Interest expenses 218 282
Interest income (152) (164)
Used machine written down 163 -
Loss on disposal of property, plant & equipment - 14
Fair value gain on short term investment - (4)
------------- -------------
Operating profit before working capital changes 4,454 4,036
Changes in working capital:-

Inventories (418) (3,021)
Receivables (6,971) 7,533
Payables 5,404 (3,411)
------------- -------------
Cash generated from operations 2,469 5,137
Interest paid (218) (282)

Interest received 152 164
Income tax paid (711) (649)
------------- -------------
Net cash from operating activities 1,692 4,370
------------- -------------
Cash flows from investing activities
Withdrawn/(Placement) of short term investment 929 (4,501)

Purchase of property, plant & equipment (“PPE”) (1,083) (1,525)
Proceeds from disposal of property, plant & equipment - 24
------------- -------------
Net cash used in investing activities (154) (6,002)
------------- -------------
The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the
Annual Financial Report for the year ended 31 December 2019 and the accompanying
6
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - Continued
03 MONTHS ENDED
UNAUDITED UNAUDITED
31.03.2020 31.03.2019
RM’000 RM’000
Cash flows from financing activities
Placement of fixed deposits under lien (61) (62)

(Repayment to)/Proceeds from:
- banker acceptance (1,518) (568)
- finance lease liabilities (1,276) 114
- term loan (155) (1,995)
Dividend paid - (745)
------------- -------------
Net cash used in financing activities (3,010) (3,256)
------------- -------------
Net changes in cash and cash equivalents (1,472) (4,888)

Cash and cash equivalents brought forward 5,869 9,687
------------- -------------
Cash and cash equivalents carried forward 4,397 4,799
======== ========
NOTES TO THE STATEMENTS OF CASH FLOWS
i. Cash and cash equivalents comprise: -
Fixed deposits 8,144 7,895

Cash & bank balances 4,397 4,799
------------- -------------
12,541 12,694
Less : Fixed deposits under lien (8,144) (7,895)
------------- -------------
4,397 4,799
======== ========
The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the
Annual Financial Report for the year ended 31 December 2019 and the accompanying explanatory
notes attached to the interim financial statements.
7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - Continued
03 MONTHS ENDED
UNAUDITED UNAUDITED
31.03.2020 31.03.2019
RM’000 RM’000
NOTES TO THE STATEMENTS OF CASH FLOWS- (Continued)
ii. Analysis of acquisition of property, plant & equipment :-
Cash 1,083 1,525

Lease arrangement 41 290
Term loan - 2,525
Transfer from inventories 26 86
---------------- ----------------
1,150 4,426
========= =========
iii. Reconciliation of liabilities arising from financing activities: -

Non-cash changes
Principle
As at and interest Acquisition Interest As at
01.01.2020 payments Proceeds of PPE expense 31.03.2020
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Bank borrowings
- Banker acceptance 2,048 (2,069) 530 - 21 530
- Lease liabilities 7,219 (1,371) - 41 95 5,984
- Term loan 9,461 (257) - - 102 9,306
18,728 (3,697) 530 41 218 15,820
Non-cash changes
Principle
As at and interest Acquisition Interest As at
01.01.2019 payments Proceeds of PPE expense 31.03.2019
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Bank borrowings
- Banker acceptance 1,818 (1,340) 752 - 20 1,250
- Lease liabilities 10,316 (1,419) 1,374 290 159 10,720
- Term loan 9,365 (2,098) - 2,525 103 9,895
21,499 (4,857) 2,126 2,815 282 21,865
The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Annual
Financial Report for the year ended 31 December 2019 and the accompanying explanatory notes
attached to the interim financial statements. 8
UNAUDITED INTERIM FINANCIAL REPORT – (Continued)
Notes :-
Disclosure requirements per MFRS 134 - paragraph 16
A1. (a) Accounting Policies and Methods of Computation
The quarterly report has been prepared in accordance with the reporting requirements as set
out in Malaysian Financial Reporting Standards (“MFRS”) 134 “Interim Financial
Reporting” and Paragraph 9.22 of the Bursa Malaysia Securities Berhad ACE Market Listing
Requirements (“Bursa Securities Listing Requirements”) and should be read in conjunction
with the Group’s audited financial statements for the financial year ended 31 December 2019
and the accompanying explanatory notes attached to the audited condensed consolidated
financial statements.
The accounting policies and methods of computation adopted by the Group in unaudited
condensed financial statements and unaudited interim financial report are consistent with
those adopted in the latest audited financial statements for the financial year ended 31
December 2019.
Effective for financial periods beginning on or after 1 January 2020
Amendments to MFRS 101

and MFRS 108 Definition of Material
Amendments to MFRS 3 Definition of a Business
Amendments to MFRS 9,
MFRS 139 and MFRS 7 Interest Rate Benchmark Reform
Revised Conceptual Framework for Financial Reporting
Effective for financial periods beginning on or after 1 January 2021
MFRS 17 Insurance Contracts
Effective date deferred
Amendments to MFRS 10 Sales or Contribution of Assets between an Investor

and MFRS 128 and its Associate or Joint Venture
The Group will adopt the above pronouncements when they become effective in the
respective financial periods. The Group is in the process of assessing the financial effect of
these pronouncements upon their initial application.
9
Notes :- (continued)
A2. Qualification of Financial Statements
The Auditors’ Report on the financial statements of the Group for the year ended 31 December 2019
was not subject to any qualification.
A3. Seasonality or Cyclicality of Operations
The business operations of the Group are not materially affected by any seasonal or cyclical factors.
A4. Exceptional or Unusual Items
During the current financial quarter, there was no item of exceptional or unusual nature that affects the
assets, liabilities, equity, net income or cash flows of the Group.
A5. Changes in Estimates of Amounts Reported
There was no change in estimate of amount reported that has a material effect in the current financial
quarter under review.
A6. Changes in Debt Securities and Equity Securities
During the current financial quarter, there were no issuances, cancellation, repurchase, resale and
repayment of debt securities and equity securities.
A7. Dividend paid
The first interim dividend of 0.5 sen per ordinary share amounting to RM1,489,465 was declared on 24
February 2020 and paid on 13 April 2020 in respect of the year ending 31 December 2020.
10
A8. Segmental Reporting

Solutions
and
Hardware Services Elimination Consolidated
RM’000 RM’000 RM’000 RM’000
03 months ended 31 March 2020
External sales 6,286 10,943 - 17,229
Intersegment transactions - 2,725 (2,725) -
Total revenue 6,286 13,668 (2,725) 17,229
Segment results 1,317 4,607 5,924
Unallocated other income 190

Unallocated operating expenses (3,748)
Profit before tax 2,366
03 months ended 31 March 2019

External sales 3,723 11,017 - 14,740
Intersegment transactions - 2,419 (2,419) -
Total revenue 3,723 13,436 (2,419) 14,740
Segment results 341 5,121 5,462
Unallocated other income 225

Unallocated operating expenses (3,501)
Profit before tax 2,186
11
A9. Material Events Subsequent to the End of the Current Quarter
There were no other material events subsequent to the end of the current financial quarter
up to the date of this announcement.
A10. Changes in the Composition of the Group
There were no changes in the composition of the Group subsequent to the end of the
current financial quarter up to the date of this announcement.
A11. Changes in Contingent Liabilities or Contingent Assets
There was no significant change in the contingent liabilities of the Group since the last
financial year ended 31 December 2019.
A12. Material Capital Commitments
There are no material capital commitments at the end of the current reporting quarter.
12
Disclosure requirements required by the Listing Requirements of Bursa Securities for the
ACE Market
B1. Group’s Review of Performance

Preceding
Current Year
Year Corresponding
Quarter Quarter 03 Months Ended
Unaudited Unaudited Unaudited Unaudited
31.03.2020 31.03.2019 Change 31.03.2020 31.03.2019 Change
RM’000 RM’000 % RM’000 RM’000 %
Revenue 17,229 14,740 16.9 17,229 14,740 16.9

Profit before tax 2,366 2,186 8.2 2,366 2,186 8.2
For the current quarter under review, our Group recorded a revenue of RM17.229
million, an increase of 17% from RM14.74 million for the corresponding quarter of the
preceding year, primarily due to the higher revenue achieved from the roll-out of the
Cash Recycling Machine (CRM) and Windows 10 platform upgrade. As a result, our
profit before tax increased marginally to RM2.366 million as compared to the
corresponding quarter of the preceding year.
13
B2. Group’s Comparison with Preceding Quarter
03 MONTHS ENDED
UNAUDITED UNAUDITED
31.03.2020 31.12.2019 CHANGE
RM’000 RM’000 %
Revenue 17,229 40,158 (57.1)

Profit before tax 2,366 7,014 (66.3)
======== ======== ========
The lower revenue of RM17.229 million for the current quarter ended 31 March 2020 as
compared to RM40.158 million for the preceding quarter ended 31 December 2019 was
mainly attributed to lower revenue from the roll-out of the Cash Recycling Machine
(CRM) and Windows 10 platform upgrade. As a result, our Group posted a lower profit
before tax of RM2.366 million for current quarter as compared to the profit before tax of
RM7.014 million in the preceding quarter.
It is pertinent to note that the roll-out of machines at the end of the calendar year (our
fourth quarter) is typically higher vis-à-vis the other periods of the year due to the
budgetary cycle of the financial institutions.
B3. Prospects
Due to the Covid-19 pandemic, the government has announced the imposition of
Movement Control Order (MCO) effective 18 March to 31 March 2020 and subsequently
extended thrice to 12 May 2020 to curb the spread of Covid-19. Our Group has received
permission from the authorities to continue its operations on a 50% reduced staffing level
throughout the MCO period as our business is designated as essential services to the
financial institutions and utility companies.
Our management team has been closely monitoring and assessing the impact of Covid-
19, prioritising the health and safety of our frontline employees, customers and the
communities ensuring the continuity of essential services in this challenging period.
To date, our Group has not witnessed any significant disruption to the business due to the
MCO. Our Group will continue to monitor the Covid-19 crisis closely and take the
necessary steps to mitigate any risks related to the crisis. If this unprecedented health and
economic crisis is not prolonged, OpenSys expects that the performance of our Group
will continue to be satisfactory for the financial year ending 31 December 2020 due to the
recurring nature of our revenue stream.
14
B4. Profit Forecast

No profit forecast was announced; hence there is no comparison between actual results
and forecast.
B5. Group’s Tax Expense
Tax expense comprises the following:-

PRECEDING
YEAR
31.03.2020 31.03.2019 31.03.2020 31.03.2019
RM’000 RM’000 RM’000 RM’000
Current year 677 549 677 549

Deferred tax 17 93 17 93
-------------- -------------- -------------- -------------
694 642 694 642
======== ======== ======== ========
The higher effective tax rate of the Group as compared to the Malaysia statutory income
tax rate for the current financial quarter and financial year to date is mainly due to non tax
deductibility of certain expenses incurred by the Group.
B6. Profit for the period
Current Year
Quarter to date
31.03.2020 31.03.2020
RM’000 RM’000
Interest income (152) (152)

Interest expenses 218 218
Depreciation 1,859 1,859
Used machines written down (163) (163)
======== ========
Other than the above items, there were no other income including investment income,
write off of receivables, allowance for impairment, gain or loss on disposal of quoted or
unquoted investment, impairment of assets, gain or loss on derivatives and exceptional
items for the current financial quarter and financial year to date.
15
B7. Corporate Proposals
There are no corporate proposals announced by the Group as at the date of this
announcement.
B8. Group’s Borrowings
The breakdown of the borrowings is set out below:-
UNAUDITED AUDITED
AS AT 31.03.2020 AS AT 31.12.2019
RM’000 RM’000
Secured short-term borrowings

Term loans 647 616
Bankers’ acceptance 530 2,048
------------- -------------
3,284 5,501
------------- -------------
Secured long-term borrowings

Term loans 8,659 8,845
------------- -------------
12,536 13,227
------------- -------------
Total borrowings 15,820 18,728

======== ========
B9. Material Litigation
There was no material litigation pending as at the date of this announcement.
16
B10. Dividend
The first interim dividend of 0.5 sen per ordinary share amounting to RM1,489,465 was
declared on 24 February 2020 and paid on 13 April 2020 in respect of the year ending 31
December 2020.
The second interim dividend of 0.25 sen per ordinary share amounting to RM744,732
was declared on 18 May 2020 and will be paid on 13 July 2020 in respect of the year
ending 31 December 2020.
B11. Group’s Earnings Per Share
(i) Basic earnings per share
The basic earnings per share of the Group have been computed by dividing the
profit for the period by the number of ordinary shares in issue during the period.

PRECEDING
YEAR
31.03.2020 31.03.2019 31.03.2020 31.03.2019
Profit attributable
to owners 1,666 1,529 1,666 1,529
======== ======== ======== ========
Number of
ordinary shares (‘000) 297,892 297,892 297,892 297,892
======== ======== ======== ========
Basic earnings per share (sen) 0.56 0.51 0.56 0.51
======== ======== ======== ========
(ii) Diluted earnings per share

Not applicable.
By Order of the Board

LIM SECK WAH
Secretary
Kuala Lumpur
17

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OPENSYS (M) BERHAD - Company No: 199501040614 (369818-W)

UNAUDITED INTERIM FINANCIAL REPORT

The figures have not been audited.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

INDIVIDUAL PERIOD CUMULATIVE PERIOD

Revenue 17,229 14,740 17,229 14,740

Other income 190 225 190 225

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME –

INDIVIDUAL PERIOD CUMULATIVE PERIOD

EARNINGS PER SHARE

Basic earnings per share (sen) 0.56 0.51 0.56 0.51

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Property, plant & equipment 46,075 46,784

Inventories 8,629 8,400

Total assets 108,826 104,675

EQUITY AND LIABILITIES

Share capital 29,789 29,789

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Lease liabilities 3,877 4,382

Trade payables 3,102 7,109

Total liabilities 44,562 40,595

Total equity and liabilities 108,826 104,675

Net assets per share attributable to ordinary

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 31 December 2019 29,789 34,227 64,016 65 64,081

Profit for the period,

Dividend - (1,489) (1,489) - (1,489)

As at 31 December 2018 29,789 27,599 57,388 26 57,414

Profit for the period,

Dividend - (1,489) (1,489) - (1,489)

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Profit before tax 2,366 2,186

Amortisation of development expenditure - 26

Changes in working capital:-

Interest paid (218) (282)

Withdrawn/(Placement) of short term investment 929 (4,501)

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - Continued

Cash flows from financing activities

Placement of fixed deposits under lien (61) (62)

Net changes in cash and cash equivalents (1,472) (4,888)

NOTES TO THE STATEMENTS OF CASH FLOWS

i. Cash and cash equivalents comprise: -

Fixed deposits 8,144 7,895

UNAUDITED INTERIM FINANCIAL REPORT

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - Continued

NOTES TO THE STATEMENTS OF CASH FLOWS- (Continued)

ii. Analysis of acquisition of property, plant & equipment :-

Cash 1,083 1,525

iii. Reconciliation of liabilities arising from financing activities: -

UNAUDITED INTERIM FINANCIAL REPORT – (Continued)