1
Incorporating Financial Results 
for the twelve months ended 31 December 2014
ANNUAL
REPORT 2 3 4 5
01 STRATEGIC REPORT
Financial Highlights     8
Galasys At a Glance     10 
Products and Services     11
Chairman’s Statement     16
Chief Executive Officer’s Statement     18
Principal Risks and Uncertainties     21
02 CORPORATE GOvERnAnCE
Board of Directors     26
Directors’ Report     28
Remuneration Committee Report     32 
Corporate Governance Report     34
03 FInAnCIAl STATEmEnTS
Independent Auditor’s Report to the Members of Galasys Plc     38
Consolidated Statement of Comprehensive Income     40
Consolidated Statement of Financial Position     41
Consolidated Statement of Changes in Equity     43
Consolidated Statement of Cash Flows     45
Notes to the Financial Statements     47
T ABLE OF
CONTENTS 6 7
8
Financial Highlights
10
Galasys At a Glance
11
Products and Services
16
Chairman’s Statement
18
Chief Executive Officer’s Statement
21
Principal Risks and Uncertainties
STRA TEGIC 
REPORT 8
01 STRATEGIC REPORT 
RM (GBP) ‘in millions 2014 2013 Variance %
Revenue 38.62 (7.13) 26.67 (4.92) 45% 
Gross Profit 19.52 (3.60) 10.64 (1.96) 83%
PBT 11.34 (2.09) 8.38 (1.55) 35%
PAT 9.40 (1.73) 7.21 (1.33) 30%
EBITDA 12.58 (2.34) 8.50 (1.57) 48%
Cash and cash equivalents (includes net proceeds
from IPO of c. RM10.5m) 12.22 (2.25) 2.16 (0.39) 466%
Repeat & recurring revenue 66% of Sales Revenue 60% of Sales Revenue 10%
Additional Highlights
^Earnings per share (EPS) RM 15.79 sen or GBP 2.91 pence 
* The comparative figures for the 12 months to 31 December 2013 (refer to note 24) included above were on the basis that 
Galasys GL T (formally known as Green Laser Technology) was part of Galasys Group from 1 January 2013
^Earnings per share has been calculated by dividing the consolidated profit after taxation attributable to ordinary 
shareholders by the weighted average number of ordinary shares in issue during the period
Financial highlights
FINANCIAL
HIGHLIGHTS
     2013       2014
Revenue
Gross Profit
Profit Before Tax
Profit After Tax
EBITDA 9
01 STRATEGIC REPORT 
Cash and cash equivalents
2014
2013
0 2 4 6 8 10 12 14
RM in Millions
Recurring, Repeat & New Business 2013
Repeating & Recurring Revenue
60%
New Business
40%
Recurring, Repeat & New Business 2014
Repeating & Recurring Revenue
66%
New Business
34%
Software, Maintenance Services
& Consultancy
51%
Hardware
49%
Revenue Breakdown 2014
Revenue Breakdown 2013
Software, Maintenance Services
& Consultancy
58%
Hardware
30%
Others
12% 10
01 STRATEGIC REPORT 
GALASy S
A T A GLANCE
Our Story
• Galasys Global (Suzhou) Co., Ltd founded in 2005
• Merger with Galasys Solutions (MSC) Sdn Bhd in 2010
• Acquisition of Galasys GL T Sdn Bhd in 2013
• Listed on AIM, May 2014 (Galasys PLC)
• Acquisition of I Logic Sdn Bhd in 2014
A leading integrated and modular amusement-park solutions and services provider to premier 
amusement parks in China and South East Asia
Operational Highlights
• Successful AIM IPO in May 2014, raising gross proceeds of £3.10 million at a placing price of 
22.5p (net proceeds  of RM10.50m / £2.20m)
• 46 new installed sites since IPO roadshow in April 2014
• Secured various new clients including Dalian Wanda Group in China and Enchanted Kingdom 
in the Philippines which are significant new wins
• Extended our sales network and channels into the Philippines, Indonesia, Vietnam and the UK
• Completed R&D for a number of new modules including eWallet on RFID, Mobile Ticketing, 
Park Map & Navigation and Smart-Q Apps and Ticketing Redemption & Vending Kiosk
• Successfully launched our Cloud Online Travel Agency (“CLOTA”) platform for theme park 
ticketing
• Galasys GL T (formerly Green Laser Technology) successfully integrated into the Group and 
performing ahead of management expectations
• Successful acquisition of ILogic Solutions Sdn Bhd (“ILogic”), a leisure and entertainment 
solutions provider in Malaysia 
• Total staff strength increased by 40% to more than 140 as of 31 December 2014  
Key strengths
• Reputable clients with long-term relationships
• Chimelong Group and OCT Group: >7 years
• To date, 108 installed sites in Asia
• Products are developed in-house
• 37 software IPs registered to-date
• Over 50 man-years of development time & over US$1 mil R&D
• > 60% annual repeat and recurring revenue 11
01 STRATEGIC REPORT 
ProPriet ary Software
The Group provides information technologies solutions and management services through its 
"Galasys Ticketing System" ("GSET"), a system developed by and continually updated within 
the Group to manage and analyse tickets, visitors, merchandise sales and amusement park 
operations. GSET is a system to manage and analyze visitors, merchandise sales and amusement-
park business operations within the complex information flow. GSET can be divided into two parts: 
the front-end interface and back-end system. The front-end is designed for, amongst other things, 
ticketing-counters, merchandise points of sale and kiosks, in which all transactions and ticket 
printings take place. The back-end contains the GSET servers that process and store the incoming 
data from the front-end. As the front-end and back-end communicate, data is compiled allowing 
for historical and real-time management reports to be generated.
 
Modular BaSiS
The Group's services and solutions have been designed on a modular basis, enabling the up sale 
of "add-on" modules, without the need of further implementation expenditure once Galasys is 
undertaking the ticketing operations. These modules can be split into two categories:
1. Ticketing – The Group's key product package modules which cover Ticketing Management 
Systems, including Admission Control, Online Ticketing Systems and Intelligent Cloud Systems; 
and
2. Add-on Modules – Modules that are still serviced through GSET , and are upsold to customers 
during or after implementation of the Ticketing services, covering, Point of Sales Management 
System, Customer Relationship Management System, E-Wallet System, Memberships System, 
Shop Management System, Theatre Ticket Management System, Linking System and Reporting 
System. 
PRODUCTS
AND SERVICES 12
01 STRATEGIC REPORT 
A full list of modules offered are set out below:
Online/Mobile Ticketing System (B2C)
Online/Mobile Individual Ticket Booking Online/Mobile Point Redeem Management
Online Group Ticket Booking Online/Mobile User Management
Online E-mail System Online/Mobile Booking Management
Mobile APPS Smart Q
Intelligent Cloud System (B2B2C)
Cloud Products Management Cloud Credit or Debit Managament Online Distributors System Online Travel Agencies Management
Cloud Agreement Management Third Party Payment Gateway Online Distributors Management Online Travel Agencies Interface
SMS or MMS Gateway Online 2 Offline Interface Wholesales or Retail Management Reseller APP System
  
Ticketing Management System
Ticket Setup Potential Customer Management Admission Management Turnstile Control
Individual Ticket Sales Order Management Wireless Admission Control Park Capacity Control
Group Ticket Sales Event Management 2D Handphone Barcode Admisson Crowd Control
Agent Management Voucher Management Sub Parks Control Exits Control
Reseller Sales Management Void Management Refund Management Staff Entry Control
GPOS (Point of Sales System)
Purchase Management Merchandise Entries Merchandise Sales Terminal
POS Sales Management Package Sales Setting Fast Food Sales Terminal
Inventory Management Stock Setting Supplier Entries
Costing Management Account Setting Sales Finance Control
Group Purchase Group Distribution Group Analysis
Membership System
Membership Policies Setting Membership Detail Entries Membership e-Credit Policies
Membership Point Collection Annual Pass Policy Setting Membership Top-Up Sales
Membership Activities Various Type Annual Pass Setting Membership Top-Up Management
Shopping Mall Management System
Property Shop Policies Potential Customer Management
Property Shop Rental Policies Customer Contract Management
Property Activities Management Shop Collection Management
Theatre Tickets & Seats Management System
Organizers, Performer Management Ticket Sales (Individual/Group)
Shows or Event Management Wireless Admission Control
Seat Pricing Management Joint Marketing Management
Area Pricing Management Ticket Setup (with Combo)
CRM Management System
Customer Relationship Policies Setting
Customer Relationship Entries
Customer Relationship Management
Customer Relationship Analysis
e-Wallet System
e-Credit Policies Setting
Cash Card Top-Up Management
Cash Card Refund Management
Linking System
Finance System Property Sales System
Human Resource System Property System
QA System GPS System
Hotel System Others System
Reporting & Analysis System
Ticketing Analysis POS Management Analysis Membership Analysis CRM Analysis Business Intelligent (BI) 13
01 STRATEGIC REPORT 
t icketing ManageMent
The Group's Ticketing Management System allows the processing of all types of tickets (e.g. agent 
ticket sales, membership entry tickets, pre-sold tickets, discount cardholders, special passes and 
wrist bands using 2D-barcode and Radio Frequency Identification ("RFID"). In addition, the system 
also allows for all types of payment to be made by the visitors (e.g. credit cards, debit cards, cash 
and gift vouchers). 
 
adMiSSion c ontrol ManageMent
Once a ticket has been acquired, GSET then manages the process by which the holder of such 
ticket enters the park. This can take the form of physical possession of a paper ticket which 
requires being fed into an automated clearance system (full height turnstile, tripod turnstile, 
flat barrier or manual ticket reader), affording quicker entry than the more dated ticket check 
point. If the park user is part of a membership program, or is in possession of an RFID wristband, 
the purchased ticket will be recorded on their card or wristband, without the need for actual 
printing, which the turnstile reader will recognise. The GSET is then able to track the entry and exit 
requirements of each Theme Park User ensuring that expired or used wristbands are not accepted. 
e-w allet
Following entry into a Theme Park, the GSET oversees all transactions that take place in the 
Theme Park. These transactions, just like the acquisition of tickets, can take place via all types of 
payment (e.g. cash or e-wallet) are recorded on the GSET server for real-time analysis. 
E-Wallet (using either 2D-Barcode or RFID technology) acts as electronic wallet can be reloaded 
with cash credits. Theme Park visitors use their e-Wallet to pay for food & beverages, merchandizes 
and also as an electronic key for their lockers and hotel rooms. This reduces the problem of 
making cash payment frequently, which directly discourages visitors to spend more. GSET 
payment functions are highly secured. All payments go through the process of validation and 
recognition.
Point of SaleS (PoS)
Galasys Point-of-Sales (GPOS) system is a solution that automates daily sales transactions, track 
customer spending behaviours, provide an integrated web storefront as well as provide a real-time 
balance sheet and profit & loss statement at days end. GPOS keeps track of this information in a 
back-end database. GPOS on the front-end allows users to sell, void and skim transaction.
GPOS system runs on a network which would allow an on-line real time information on the 
operations from the number of visitors to the point of sales at any one point in time. 
An added benefit from the Theme Park Operator's perspective is that the cash float is monitored 
on a real-time basis so that treasury departments can be alerted. Any excess cash held above the 
daily float will trigger an alert so that the cashier is instructed to transfer any excess cash to the 
supervisor for safekeeping.   14
01 STRATEGIC REPORT 
linking Sy SteMS and ManageMent and anal y SiS rePortS
All of the above modules described in 5.3 to 5.6 feed into the central GSET server. Combined with 
the Linking Systems module, in which all transactions are recorded and compiled, management 
and analysis reports can be generated on a real-time basis. Currently, the GSET can offer 200 types 
of standard built in reports, allowing amusement park operators quick access to the number of 
visitors (daily, monthly and annually), point of sales reports, reports detailing the movement and 
spend per member (if the Membership Systems add-on module has been deployed) or simply 
footfall reports on a particular attraction. Real time data is crucial for Theme Park Operators to 
tailor their marketing and promotional efforts, although as will be discussed later, Galasys have 
identified further scope for their software to be used in conjunction with Theme Park Operator's 
marketing and sales departments.
clota 
CLOTA is a middleware platform that allows theme park operators and owners to open up new 
sales channels, in addition to the traditional offline channels, by connecting their ticketing systems 
with the OTAs enabling the sale of tickets online, via the OTAs in real time, direct to the end 
customer. 
CLOTA
(CLOUD OTA PLATFORM)
Dry Parks/
Theme Parks
Water Parks
Qunar
MAJOR OTA
ONLINE TRAVEL AGENCIES TRAVEL AGENCIES
Ctrip Lvmama Tuniu OTA..n Online Travel 
Agencies
Hot Spring 
Parks
Zoos/Museums Hotels/Resorts 15
01 STRATEGIC REPORT 
galot aS
An Internet platform that targets end customers directly and provides flexibility in making bookings 
within their theme park visit e.g. enabling the consumers to organize theme park entrance packages 
and accommodation as the ticketing system links into the hotel reservation system. 
MoBile aPPS (MaPPS) 
Galasys is working with clients to introduce mobile applications (apps) that will allow increased 
interaction between amusement park visitors and operators during their visit. The apps will provide 
visitors with useful information like a map of the site and additionally will help operators advertise 
promotions, discounts and offers, with the aim of increasing visitor’s in park spending. Galasys 
believes it can receive a share of this additional in park spend. 
M-Commerce Park Map & Navigation Attraction details,
real-time waiting time 
and reserve rides 16
01 STRATEGIC REPORT 
Stra tegy & BuSineSS review
The Group’s key event for 2014 was undoubtedly our 
successful IPO debut on AIM on 12 May 2014. This 
is a momentous event for the Group, all our staff, 
shareholders, customers and partners alike after an 
almost 10-year build-up of the business from 2005. The 
IPO injected much needed new energy and direction 
for the Group. It also brought in enhanced corporate 
governance and strengthened management and enabled 
the Group to nearly double its staff headcount from a year 
ago. All these have resulted in the Group’s much stronger 
position in Asia, our home turf, and are shown in the new 
markets and customers we have added, new products 
and services we have developed and launched and the 
completion of our first acquisition following our IPO. 
Through our newly launched CLOTA platform and 
Ticketing IT Outsourcing (“TiTo”) engagement model, 
we have ventured beyond our traditional project sales 
revenue model and into the transformational strategy 
we have spoken about since our IPO. We expect to pivot 
more on the available mobile and internet infrastructures 
to refine and accelerate both our Business to Business to 
Consumer (“B2B2C”) and Business to Consumer (“B2C”) 
business models and strategies. In time to come, we seek 
to correlate our growth more directly with the numbers of 
visitors to the parks whilst continuing to build our market 
share in the number of parks using our technology and 
solutions. 
Following on from the acquisition of Galasys GL T in 
2013, we made a small acquisition in 2014. Galasys GL T’s 
integration has been successful and we look forward to 
seeing more synergies being realised in the coming years. 
Since inception, Galasys has undertaken and successfully 
integrated three acquisitions and M&A continues to be an 
CHAIRMAN’S
ST A TEMENT
integral part of the Group’s strategy to accelerate growth 
and stay abreast of trends and innovations. We continue 
to be on the lookout for other potential businesses that 
could complement us and accelerate our growth plan.
The Galasys team has been busy since IPO implementing 
this strategy and I am pleased that the efforts are reflected 
in the Group’s full year results for 2014, which have shown 
significant improvements compared to 2013 and which 
have exceeded expectations. 
ProSPectS
The Group is in an important phase of our technology 
and product development and 2015 will see the 
continuing efforts to enhance the existing core ticketing 
platform and its associated modules including mobile 
apps and solutions. We expect more exciting product 
development and launches during the course of the year 
and to see more financial contribution arising from the 
commercialization of products and services launched in 
2014. In particular, as part of the transformational growth 
plan, we will develop and launch more products and 
services that will be mobile and internet based so that our 
revenue base is broadened and to enable us to reach out 
more directly to the park visitors.
As a testament to the reliability and quality of our 
products and services, we have not lost any clients in 
the last 3 years and continue to secure new and highly 
reputable ones, such as the Dalian Wanda Group from 
China and the Enchanted Kingdom from the Philippines.   
Our strategy of introducing different engagement and 
therefore, revenue models has borne fruit as we have, 
through the TiTo model, successfully secured more clients 
of different sizes, some of whom we would not have been  17
01 STRATEGIC REPORT 
in a position to engage before our IPO. A number of the engagements under the TiTo model have 
given us significantly higher gross margins. We will continue to pursue this strategy of customer 
engagement to penetrate further into different segments of the ticketing industry including the 
broader sub-segment of leisure and entertainment.
In terms of marketing and business development, the Group has invested and increased the size 
and capability of the sales and marketing team and the additional resources available are being 
successfully deployed in reaching out to new business prospects in the whole of Asia. 
We expect to maintain the positive trends in the business in the coming financial year as we 
deliver on our long term strategic objective of transforming our current project based business and 
revenue model into one which correlates our revenue and profits more directly to the number of 
visitors to our theme-park customers. 
d ividend
As a result of the positive growth achieved both organically and through acquisition, the Board 
intends to bring forward its plans to implement a progressive dividend policy by proposing a 
maiden dividend for 2014, whilst recognising the need for Galasys to continue investing in its 
expansion and product development plans throughout 2015 and beyond. Consequently, the 
Board is recommending a final dividend of 1.084sen, c. 0.2 pence per share subject to shareholder 
approval at the Company’s Annual General Meeting. The final dividend will be payable on 3 July 
2015 to shareholders on the register on 5 June 2015.
aPPrecia tion
On behalf of the Board I would like to express my deep appreciation to the management and 
staff for their dedication and hard work for the past year and congratulate them on the successful 
completion of our IPO. Last but not least, I would also like to thank our investors, shareholders, 
customers and partners for their strong support and patience throughout the year and we look 
forward to working cohesively with each and every one of you in the months to come.
Kim Seng Teh
Non-Executive Chairman
15 April 2015
  18
01 STRATEGIC REPORT 
I am very pleased to provide my first full year review since the Group joined AIM on 12 May 2014.
reSul tS
Galasys has delivered a strong financial performance with revenues up 45% at RM38.62m (FY2013: 
RM26.7m^). We have seen continued growth in demand for our products and services from existing 
customers as well as successfully adding new large customers such as Dalian Wanda in China 
and Enchanted Kingdom in the Philippines. Our earnings before interest, tax, depreciation and 
amortization (EBITDA) also saw significant improvement being up 48% at RM12.58m (FY2013: 
RM8.5m^) and this was reflected in both pre-tax profit being up 35% at RM11.34m (FY2013: 
RM8.38m^) and cash up to RM12.22m* (FY2013: RM2.16m^). The net proceeds from our successful 
IPO were RM10.50m. 
^The comparative figures for the 12 months to 31 December 2013 (refer to note 24) included above were on the basis that 
Galasys GL T (formally known as Green Laser Technology) was part of Galasys Group from 1 January 2013
*includes net proceeds from IPO of RM10.50m (£2.20m)
Market o verview
According to Global Attractions Attendance Report published by Themed Attraction Association 
and AECOM, the outlook for the theme park industry in Asia is very strong with annual growth in 
attendance numbers of 7.5% is almost double that in the Americas whilst zero growth is expected 
in Europe. The report also stated that attendance total for the top 15 Asian water-parks has, for the 
first time, surpassed attendance for the top 15 water-parks in North America. AECOM further predicts 
the total attendance for the top 20 Asia Pacific theme parks will also surpass those of North America 
in the not-too-distant future. Against this backdrop of high growth, we intend to continue building 
on our market leading position across Asia and have made good progress entering into new and 
emerging South East Asian markets such as the Philippines, Thailand, Vietnam and Indonesia.
n ew w inS, ParkS and t i t o We are pleased with the number of new project wins throughout 2014. In particular, we are 
especially proud to have secured the first ever theme park related contract awarded by the Dalian 
Wanda Group in the face of keen international competition for this landmark deal. As reported 
in our interim results announcement, the Group has to-date signed up two key projects with the 
Dalian Wanda Group, namely Wuhan Movie Park and Wanda Indoor Kids’ Park. We believe there are 
many more contracts to come in the following years and will work closely with the Wanda team. 
Outside China, the Group has made significant progress by entering into new and emerging South 
East Asia markets. The Group secured contracts with the Enchanted Kingdom, which is the largest 
CHIEF ExECUTIVE 
OFFICER’S ST A TEMENT 19
01 STRATEGIC REPORT 
theme park in the Philippines. This contract was a direct 
replacement of the client’s existing solution provided 
by a European ticketing solutions provider and further 
validates the Group’s standing amidst its international 
competitors.
Whilst theme parks remain the core segment, the Group is 
making strides in diversifying into other segments within 
the leisure and entertainment industry. This is reflected in 
the contracts secured with museums, tourism and cultural 
centres. The Group has also added exciting sites such 
as Zoo Negara and the Sepang International Circuit in 
Malaysia as part of the portfolio of sites incorporated into 
the Group following the acquisition of iLogic. 
The four TiTo projects signed by the Group in 2014 are 
also significant as they mark the Group’s move toward 
the new revenue model, whereby the Group’s clients are 
engaged with a revenue model that brings both higher 
profit margins and a recurring revenue stream that is 
correlated more to ticket sales than the total number of 
installed sites.
clota
We are delighted to have completed this significant 
product development and taken an important step 
towards positioning Galasys in the heart of the online 
market segment. After nearly a year of intensive 
development by the R&D team, we are proud to add a 
key component to our product platform that offers a fully 
integrated B2B online sales and distribution network 
connecting online travel agencies with theme park 
operators and owners in Asia.
To-date, Galasys has signed up ten online travel agents 
(OTAs), including Beijing Qunar Software Technology 
(“Qunar”), Ctrip.com International Ltd (“Ctrip”), 
Shanghai Lvmama International Travel Agency Co. Ltd 
(“Lvmama”), Sichuan Brigade Butler Network Technology 
(“Lvxiaobao”), Tuniu Corporation (“Tuniu”) and Chengdu 
Chenyu Culture Communication Co., Ltd. These OTAs 
account for most of the online travel traffic in China with 
Ctrip alone commanding 54.2% of the market. 
 
There are nine theme parks which have signed up so far 
and are now fully integrated into CLOTA including Wugang 
Xianglong Valley Water Park, Gui Lin Yugui Park Universal 
theme park, Seven Colour Sand River Water Park, Wuhan 
Mulan Park and Shanxi Water Park. 
We will continue to grow the revenues from our CLOTA 
platform by signing up more parks and OTA partners in 
the coming months. The tie up with Qunar, Ctrip, Tuniu 
and Lvmama, the four OTA giants in China, is a testament 
to the Group’s track record in China and a powerful 
endorsement of our CLOTA platform.
reSearch and develoPMent
Research and development (“R&D”) remains a key 
business driver for the Group in order to maintain its 
competitive advantage in delivering innovative solutions 
ahead of the market and creating new business trends. 
The Group has strong and proven R&D capability, which 
we will continue to deploy to bring new products and 
services to the market.
The R&D team has successfully played their part and 
amongst the highlights is CLOTA that was officially 
launched last year as well as the eWallet on RFID. 
Furthermore, the R&D for Mobile Ticketing, Park Map & 
Navigation Apps and Smart-Q MAPPs has been completed 
and is now ready for deployment.
Through the acquisition of iLogic, the development of 
GALOTAS has been fast-tracked and further refinements 
are ongoing with a scheduled launch in later in 2015.  
The Group also intends to sell and ship Galasys GL T’s 
kiosk products (Ticketing Redemption / Vending Kiosk) for 
amusement park customers in China and South East Asia. 
Galasys’ kiosk software program is localised to support 
multi-language and multi currencies payment.
reSourceS
To strengthen our team further, we have recruited more 
than 40 new staff since the IPO. These new hires will focus 
on customer generation, developing new technologies  20
01 STRATEGIC REPORT 
including GALOTAS and deployment of new installations on new client wins. The Group will 
continue to hire new sales and technical talents as our business expands.
At the end of 2014, we also announced the appointment of WH Ireland Limited as our new 
Nominated Adviser (NOMAD) and Broker.
outlook for 2015
The Group currently operates in Asia, the strongest growth market for amusement parks and 
visitor numbers. The Group’s growth strategy is built on new key customer acquisitions, new 
products through continuous R&D and technology partnership, the rollout of the TiTo engagement 
model to increase recurring revenue, the execution of the CLOTA sales and distribution platform to 
correlate our revenue and growth more closely to the number of visitors to our installed sites, and 
geographical expansion into new territories. 
The Group is also exploring collaborations with various technology partners to realise mutual 
synergies and will keep the market and our shareholders informed in due course.
The Group continues to expand into new territories by signing up partners in countries such as 
the Philippines, Vietnam, Indonesia, Hong Kong, Japan and the UK. Additionally, the Group is 
acquiring new clients while continuing to serve and deepen ties to its existing client base.
Asia remains the fastest growing market for the global amusement park industry and Galasys 
is well positioned to continue its growth in this region. The Group is working on a strong sales 
pipeline of projects for financial year 2015 and the Board is confident of delivering another year of 
good progress and financial performance.
Sean Seah
Chief Executive Officer
15 April 2015 21
01 STRATEGIC REPORT 
The risk management framework of the Group is 
designed to identify, manage and mitigate material 
risks to the achievement of the Group’s strategic 
and business objectives.
Operational risk
Dependence on key executives and personnel and the ability to attract, motivate and 
retain employees
The Group’s development and prospects are dependent upon the continued services and 
performance of its senior management and other key personnel. The Group is very dependent on 
CEO, COO, CFO, MD for China, Sales Director for China, MD of I Logic Solutions and MD of GL T . The 
loss of the services of any of these executive, the senior management or key personnel may have 
an adverse impact on the Group.
Attracting, retaining and motivating employees, including individuals with significant relevant 
technical expertise and associated managed services, is a critical component of the future success 
of the Group’s business. Competition for qualified technical personnel is intense and is likely to 
remain so for the foreseeable future and could cause the Group to offer higher compensation and 
other benefits in order to attract and retain them, which could materially and adversely affect the 
Group’s financial condition and results of operations. If the Group is unsuccessful in attracting 
qualified employees or retaining or motivating existing employees, it may be unable to grow its 
business effectively.
Mitigation
Retaining qualifying employees especially the technical team has always been a challenge to any 
software companies. However, the Group has adopted employee share option plan and periodic 
review of key management team total remuneration to ensure it remains competitive in order to 
retain them.
Business and market risks
Technology risk
As software technology is evolving daily, the company’s products are subject to technology going 
obsolete therefore, shortening the product life cycle.
PRINCIP AL RISkS
AND UNCERT AINTIES 22
01 STRATEGIC REPORT 
Mitigation
The Company places a high focus on R&D initiatives and continuously strives to develop better 
and innovative software solutions The Group continues to invests in R&D and market research to 
realise the potential of new and existing products, and maintain its market-leading position. With 
continuous investment in R&D, technical staffs make up to 70% of the total staff strength.
Project-based customers
The Group is an integrated services and solutions provider that provides information technologies 
solutions and management services for the amusement industry globally. The Group tends to 
be project-based and as a result long-term customer contracts amount for a relatively small 
part of the Group’s revenue; however, a substantial part of revenue is recurring or repeated in 
nature. There may also be lag periods (usually 6-9 months) before the repeat customer purchases 
additional modules once a project is completed. The Directors believe that Recurring Revenues 
and Repeat Revenues give some revenue certainty for the Group. However, given the largely 
project- based nature of certain sales, there is no assurance that the Company will be able to 
leverage on these existing customers for on-going revenue. In addition, a significant increase in 
turnover rates from the current levels or any failure to recruit new customers or to retain existing 
customers could have a material adverse effect on the Group’s business, financial condition and 
results of operations.
Mitigation
Due to the need of retaining customers for a longer period of time and also strengthening 
financials, the Group had already role out a new engagement model call Ticket IT Outsourcing 
(“TiTo”). Essentially TiTo is an engagement model where the customer will pay Galasys for the 
infrastructure installed via tickets. The customer, i.e. theme park, will provide Galasys steep 
discounted tickets, for example at 50% discounted price per ticket. Galasys will then sell these 
tickets to online travel agencies, travel agencies as well as through Cloud Online Travel Agency 
(“CLOTA”) to end customers.
Market risk 
The Group may be affected by general market trends that are unrelated to the performance of the 
Group. The success of the Group is dependent on the market acceptance of its products, of which 
there can be no guarantee.
Mitigation
The Group conducts ongoing studies of general market trends and developments, in order to 
enable it to make responsive changes to its business plan when necessary.
Fluctuation in the exchange rates of the Chinese Renminbi or Ringgit may have a 
material adverse effect on an investor’s investment.
Currency fluctuations may affect the cashflow which the Group will realise from its operations, as it 
is likely to receive payment for the services it provides in the currencies of the countries in which it 
operates, whilst certain of the Group’s costs are likely to be incurred in other currencies. 23
01 STRATEGIC REPORT 
Mitigation
Notwithstanding that this is an inherent risk for any multi-national organization, the Group 
endeavors to match as far as possible its revenue and cost with the same currency within the 
respective jurisdictions as well as closely monitor FOREX fluctuations.
Compliance risk
Mandatory reporting and announcement
Possible delays in reporting could arise due to untimely or unavailable information or a failure in 
internal procedures for mandatory reporting.
Mitigation
Internal procedures monitor mandatory reporting and other regulatory requirements closely 
and consistently. The company has compliance policy in place by have appointing a compliance 
officer responsible to ensure comply with all the necessary regulations including reporting and 
announcements.   24 25
CORPORA TE
GOVERNANCE
26
Board of Directors
28
Directors’ Report
32
Remuneration Committee Report
34
Corporate Governance Report 26
02 CORPORATE GOVERNANCE
Kim Seng Teh (Age 49)
Non-Executive Chairman
• Executive Chairman of Netrove Ventures 
Group, a boutique regional venture capital and 
corporate finance firm that is focused primarily 
on Asian technology companies
• Sits on various  advisory panels and boards 
including boards of publicly listed companies, 
and their remuneration and audit committees
• LL.B. (Hons) from Leeds University, England 
and an LL.M. (Hons) from Queens' College, 
University of Cambridge, England
BOARD OF
DIRECT ORS
Sean Seah (Age 48)
CEO and Founder, Executive Director
• Co-founder of the Group in 2010 and a 
shareholder
• Master in Computer Science, California State 
University, USA
• Started career in Silicon Valley as a software 
applications developer for Software Publishing 
Corporation listed on NASDAQ
• Worked at Sun Microsystems Inc. between 
1997-2003 and held position of Sun 
Professional Services Business Operation & 
Channels Management of Greater China
• He co-founded several companies including 
Afor Pte Ltd Singapore which went IPO in 2008 
and subsequently rebranded as “EpiCentre 
Holdings Ltd”
Chee Keong Hee (Age 44)
CFO, Executive Director
• Chartered Accountant of the Malaysian 
Institute of Accountants (MIA) and a fellow 
member of Association of Chartered Certified 
Accountants (FCCA)
• Experience in both private and public 
companies. Hee was the Finance Director of a 
listed company Global Soft in Malaysia
• Actively involved in various industries 
including IT , property development, leisure 
and entertainment
• Hands-on experience in corporate 
compliance and financial reporting. 27
02 CORPORATE GOVERNANCE
Chee Seong Chin (Age 55)
Non-Executive Director
• Currently the elected Deputy Chairman 
of PIKOM, the National ICT Association of 
Malaysia.
• Served as an independent non-executive 
director of M-Mode Bhd (2009-2012) (KLSE: 
MMB) listed on the Ace Market. Over the 
years, Mr Chin has provided, and continues 
to provide, significant business network 
opportunities to the Group.
Garry Peagam (Age 59)
Independent Non-Executive Director
• His previous appointments include Group 
Finance Director of Good Energy Group plc and 
Blick Group plc (which was sold to The Stanley 
Works Inc.)
• Was also a Managing Director of M-Netics 
Ltd, a private company. His experience 
encompasses large multinational companies 
in the IT and energy sectors.
Teong Ming Chuah (Age 37)
Head of China, Executive Director
• Has over 8 years of working experience in the 
IT industry and provides significant business 
knowhow and advice to the management 
team of the company.
• A Malaysian national, he has headed the 
Group’s expansion in China since the group 
was reorganized in 2010.
• Graduated as a Bachelor of Engineering 
Technology in University of Southern 
Queensland. 28
02 CORPORATE GOVERNANCE
The Directors submit their report together with the audited consolidated financial statements 
of the Galasys Plc group of companies for the year ended 31 December 2014. This Directors’ 
Report includes the Chairman’s Statement, the Chief Executive’s Overview, the Strategic Report, 
the Corporate Governance section and the Directors’ responsibility statement. The Company is 
required to set out a fair review of the business of the Group and a description of the principal 
risks and uncertainties facing the business, which can be found in the Strategic Report. This 
requirement includes an analysis of the development and performance of the Company’s 
business during the reporting period, and the position of the Group at the end of the reporting 
period consistent with our size and complexity. The Directors’ Report has been prepared, and 
is published, in accordance with, and in reliance upon, applicable Jersey company law and the 
liabilities of the Directors in relation to that report are subject to the limitations and restrictions 
provided by such law.
Principal activity
The Company is a holding company and its principal activity is the holding of investment in its 
subsidiaries. The Group is an Amusement Park solutions and services provider that provides 
information technology solutions and management services to Amusement Park operators in Asia.
The Company’s registered office address is Queensway House, Hilgrove Street, St. Helier, Jersey 
JE1 1ES.
Capital Structure
The Group is financed through equity share capital. There is about RM700,000 in debt for working 
capital purposes. The Company do not need to leverage on debt financing as many of the 
operating subsidiaries are enjoying tax holidays and this is expected to continue in near future (see 
note 22 to the financial statements).
Business review and future developments
Galasys Plc has continued to perform strongly across all its business areas throughout 2014. Full 
details of the Group’s performance and future developments can be found in the Chairman’s 
Overview.
Financial results
• Revenue for 2014 up 45% at RM38.62m (2013: RM26.67m^)
• Gross Profit up 83% at RM19.52m (2013: RM10.64m^)
• EBITDA up 48% at RM12.58m (2013: RM8.5m^)
DIRECT ORS’
REPORT  29
02 CORPORATE GOVERNANCE
• Profit Before Tax up 35% at RM11.34m (2013: RM8.38m^)
• Profit After Tax up 30% at RM9.40m (2013: RM7.21m^)
• Cash RM12.22m* (2013: RM2.16m^)
• EPS RM0.16, or c. 2.91 pence 
• Repeat and recurring revenue increased to 66% of sales (2013: 60%)
^The comparative figures for the 12 months to 31 December 2013 (refer to note 24) included above were on the basis that 
Galasys GL T (formally known as Green Laser Technology) was part of Galasys Group from 1 January 2013
* includes net proceeds from IPO of RM10.50m (£2.20m)
Dividends
The Board is recommending a final dividend of 1.084sen, c. 0.2 pence per share subject to 
shareholder approval at the Company’s Annual General Meeting. The final dividend will be payable 
on 3 July 2015 to shareholders on the register on 5 June 2015.
Significant shareholders
Significant shareholders holding over 3% of the issued share capital as at 31 December 2014, other 
than any Directors and their family as defined in the AIM rules, whose holdings are detailed below:
Ordinary shares As at 31 December 2014 %
Well Oriental Investments Limited (“WOI”)* 26,783,984 40.23
Netrove Ventures Corporation^ 11,417,566 17.15
Soo Choon Meng 7,842,989 11.78
WGLS Foundation 2,151,201 3.23
*WOI is an investment vehicle incorporated in the British Virgin Islands, the shareholders of which are Mr Sean Seah 
(Company’s Chief Executive Officer), holding 20,709 ordinary shares in WOI (representing a 41.42 per cent. Shareholding 
interest), Mr Teong Ming Chuah (an executive director of the Company), holding 15,198 ordinary shares in WOI (representing 
a 30.40 per cent. shareholding interest), Mr Low Kok Thai, holding 10,843 ordinary shares in WOI (representing a 21.69 per 
cent. shareholding interest) and Mr Chee Keong Hee (the Company’s Chief Finance Officer), holding 3,250 ordinary shares in 
WOI (representing a 6.50 per cent. shareholding interest).
^Netrove Ventures Corporation, incorporated in the British Virgin Islands, is wholly owned by Kim Seng Teh, the Company’s 
Non-Executive Chairman
Directors and Directors’ shareholdings
The Directors during the period under review were:
Kim Seng Teh, Non-Executive Chairman
Sean Seah, Executive Director, CEO
Chee Keong Hee, Executive Director, CFO
Teong Ming Chuah, Executive Director
Chee Seong Chin, Non-Executive Director
Garry Peagam, Independent Non-Executive Director
The Directors’ beneficial interests in the share capital of the Company and remuneration are set 
out in the Remuneration Committee Report. 30
02 CORPORATE GOVERNANCE
The company paid for sufficient directors and officer’s indemnity insurance during the period, and to 
the date of approval of these financial statements, to enable the directors to carry out their duties.
Directors’ responsibilities
The Directors are responsible for preparing the financial statements in accordance with applicable 
laws and International Financial Reporting Standards (IFRS) as adopted by the European Union. 
Company law requires the Directors to prepare financial statements for each financial year which give 
a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for 
that year.
In preparing those financial statements, the Directors are required to: 
• select suitable accounting policies and then apply them consistently; 
• make judgements and estimates that are reasonable and prudent; 
• state whether applicable accounting standards have been followed, subject to any material 
departures disclosed and explained in the financial statements; and 
• prepare the financial statements on the going concern basis (unless it is inappropriate to presume 
that the Group will continue in business).
The Directors are responsible for keeping adequate accounting records that disclose with reasonable 
accuracy of any time the financial position of the Company and to enable them to ensure that the 
financial statements comply with the Companies (Jersey) Law 1991. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable steps for them prevention 
and detection of fraud and other irregularities. The Directors are responsible for the maintenance 
and integrity of the corporate and financial information included on the Group’s website. Legislation 
in Jersey governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions.
Research and development
As previously mentioned the Directors estimate that the Group has invested over 50 man years and 
over USD1 million in developing and updating the Group’s proprietary systems and software. The 
Directors believe that by continuingly investing in R&D, the Group will be able to improve service 
offerings to its customers and therefore look to distinguish itself from its competitors. It is the 
Directors’ intention that the Group will continue to invest progressively in R&D.
Employees
The Group’s policy is to have a competitive remuneration and benefits provision to attract and 
retain the best and brightest talent. The Group is committed to ensuring that equal opportunities 
are accorded to all of its employees irrespective of age, gender and nationality in training, career 
development and advancement in an effort towards ensuring that the Group employs the most 
skilled workforce.
The Company recognises that on-going share ownership is an important part of the Group’s 
incentivisation and retention policy. The Company has therefore adopted the Share Option Plan. 
Options may be granted to employees of the Company and any Participating Company. 31
02 CORPORATE GOVERNANCE
Risks relating to the Group and its business
A review of the risks associated with the Group and the nature of its business is set out in the 
Principal Risks and Uncertainties section.
Going concern
The Company’s activities and developments of its products, services and markets are set out in 
the CEO’s statement. The performance of the Company in terms of revenue, profitability and cash 
flows is explained in the Financial Statements. 
After the assessment of the available financial information, and taking into account the nature of 
the business, which has recurring revenue with high cash conversion, as reflected in the current 
financial position of the Group with cash position of RM12.2 million as at 31 December 2014, the 
Directors believe that the Group has adequate resources to continue to operate for the foreseeable 
future. Therefore, it is appropriate to continue to adopt the going concern basis of accounting in 
the preparation of the Company consolidated financial statements.
Auditor and disclosure of information to auditor 
The Directors who held office on the date of approval of this Directors’ Report confirm that, so 
far as they are aware, there is no relevant audit information of which the Company’s auditor is 
unaware. The Directors have confirmed that they have taken all steps that they ought to have 
taken as Directors in order to make themselves aware of any relevant audit information and to 
establish that the Company’s auditor is aware of that information. Crowe Clark Whitehill LLP has 
been appointed as the auditor of the Company during the year.
This report was approved by the Board and signed on its behalf.
Sean Seah
Chief Executive Officer
15 April 2015
  32
02 CORPORATE GOVERNANCE
Galasys Plc, being an AIM quoted company, has adopted the general principles of the Remuneration 
Committee Guide for Smaller Quoted Companies of The Quoted Companies Alliance.
Remuneration Committee
The remuneration Committee comprises the Chairman of Committee, Kim Seng Teh (Non-Executive 
Chairman), Garry Peagam (Non-Executive Director), and Chee Seong Chin (Non-Executive Director). 
The terms of reference of the Committee are available on the Company’s website and are reviewed 
annually by the Board.   The Remuneration Committee is responsible for determining the Group’s 
policy on the remuneration of senior executives and specific remuneration packages for Executive 
Directors, including pension rights and compensation payments.
Remuneration Policy
The objective of the remuneration policy is to attract, retain and motivate high caliber Executives as 
well as to achieve the overall objective of promoting teamwork in delivering outstanding shareholder 
returns while maintaining an appropriate compensation balance for all the employees of the Group.
Directors’ remuneration
The normal remuneration arrangements for Executive Directors consist of base salary, annual 
performance-related bonuses and other benefits as determined by the Board. Each of the Executive 
Directors has a service agreement that can be terminated at any time by either party giving to the 
other 6 months’ written notice. 
Non-Executive Directors
Non-Executive Directors are remunerated solely in the form of director fees determined by the 
Board and are not entitled to pensions, annual bonuses or employee benefits. They are entitled 
to participate in share option arrangements relating to the Company’s shares but as there are 
no such share option arrangements in place at this time, there is no participation from the Non-
Executive Directors from this form of remuneration. Each of the Non-Executive Directors has a letter 
of appointment stating his annual fee and that the appointments are to continue unless terminated 
by the Company by giving 1 month’ written notice or at any time by a resolution of the Shareholders 
and subject to reappointment at the first annual general meeting following his appointment.
Directors are not involved in specific discussions on their own remuneration.
REMUNERA TION 
COMMITTEE REPORT 33
02 CORPORATE GOVERNANCE
Directors' interests
Ordinary shares As at 31 December 2014 %
Sean Seah* 26,783,984 40.23
Chee Keong Hee* 26,783,984 40.23
Teong Ming Chuah* 26,783,984 40.23
Kim Seng Teh^ 11,862,010 17.82
Chee Seong Chin 660,462 0.99
*Sean Seah, Chee Keong Hee and Teong Ming Chuah’s shareholding is held indirectly through Well Oriental Investments 
Ltd. They are therefore deemed or taken to be interested in 100 per cent. of the Ordinary Shares held by Well Oriental 
Investments Ltd.
^Kim Seng Teh’s shareholding is held indirectly through Netrove Ventures Corporation and Netrove Strategic Corporation. 
He is therefore deemed or taken to be interested in 100 per cent. of the Ordinary Shares held by Netrove Ventures 
Corporation and Netrove Strategic Corporation.
Directors’ remuneration
FY2014
Salary Fees 
(RM’000)
Bonus
(RM’000)
Benefits
(RM’000)
Total
(RM’000)
Executive Directors
Sean Seah 202 - 117 319
Chee Keong Hee 92 - 43 135
Teong Ming Chuah 125 - 3 128
Non-Executive Directors
Kim Seng Teh 103 - - 103
Garry Peagam 82 - - 82
Chee Seong Chin 21 - - 21 34
02 CORPORATE GOVERNANCE
The Directors recognise the importance of sound corporate governance and intend for the 
Company to comply with the provisions of the UK Corporate Governance Code insofar as they are 
appropriate given the Company’s size and stage of development. In any event, the Directors intend 
to comply with the provisions of the Quoted Companies Alliance (QCA) Guidelines. 
The Board is responsible for formulating, reviewing and approving the Company’s strategy, 
budgets and corporate actions. Following Admission, the Directors intend to hold Board meetings 
at least quarterly and at such other times as they deem necessary. The Board has established a 
remuneration committee, an audit committee and a nomination committee.
Board of Directors and Board Committees
The Board of Directors consists of 3 Executive and 3 Non-Executive members that include a Non-
Executive Chairman. The respective appointments of the Board members provide an appropriate 
balance of skills and experience for the Board to lead the Group in the interests of all shareholders.
The roles of Chairman and Chief Executive are separate and clear. The Chairman’s role is to lead 
the Board in Board meetings and ensure the effectiveness of the Board. The role to ensure that the 
Group’s long term strategic and financial objectives are achieved with the Group’s resources and in 
accordance to the risk level of the Group is the responsibility of the Chief Executive. 
The Board is responsible to shareholders by providing leadership and direction to the Group. The 
role of the Board is to set the strategic direction and goals of the Group within its expertise and risk 
framework. The Board has a schedule of matters reserved for its decision which include, but are 
not limited to, decisions on strategy and risk management, approval of financial budgets, major 
capital expenditure, material acquisitions and disposals, the interim and annual results and the 
interim and final dividend recommendations. The Board Committees that have been established 
to assume some of the responsibilities of the Board with clearly defined terms of reference are the 
Audit, Nomination, Remuneration Committees.
The Board has had regular Board meetings for the financial year ended 31 December 2014. For the 
period, 5 board meetings have been conducted by the Company. Formal agendas and reports are 
provided to the Board for the Board meetings and all Directors are properly briefed on the matters 
to be discussed and deliberated. All Directors in carrying out their duties as members of the Board 
CORPORA TE
GOVERNANCE
REPORT  35
02 CORPORATE GOVERNANCE
are able to obtain further advice and information from within the Company or from independent 
professional advisers. The Company maintains an appropriate directors’ and officers’ insurance 
policy cover in respect of any legal actions against the Directors.
The performance of the Board is currently assessed by the Chairman with respect to the various 
operations of the Board that include, among others, the appropriate skill level of the members, the 
conduct of Board meetings and the decisions achieved, the guidance with regard to the Group’s 
strategy and objectives, and the effectiveness of the 3 standing Board Committees in carrying out 
their responsibilities in accordance to the set terms of reference.
The table below sets out the Board meetings as well as the Audit, Remuneration and Nomination 
Committee meetings respectively held by the Company for the financial year ended 31 December 
2014 and attendance of each Director:
Board meetings
Audit Committee
meetings
Remuneration
Committee
meetings
Nomination
Committee
meetings
Executive Directors
Sean Seah 5/5 - - -
Chee Keong Hee 5/5 - - -
Teong Ming Chuah 5/5 - - -
Non-Executive Directors
Kim Seng Teh 5/5 1/1 - -
Garry Peagam 5/5 1/1 - -
Chee Seong Chin 5/5 1/1 - -
Board Committees
The Board has established 3 Committees with clearly defined terms of reference and detailed 
below are the members of the Committees and their duties and responsibilities.
Audit Committee
The audit committee will initially consist of Garry Peagam as chairman and Kim Seng Teh and 
Chee Seong Chin. It will meet at least twice each year and will be responsible for ensuring that the 
financial performance of the Group is properly monitored and reported on and for meeting with 
the auditors and reviewing findings of the audit with the external auditor. It is authorised to seek 
any information it properly requires from any employee and may ask questions of any employee. 
It will meet with the auditors once a year without any members of management being present 
and is also responsible for considering and making recommendations regarding the identity and 
remuneration of such auditors.
Remuneration Committee
The remuneration committee will initially consist of Kim Seng Teh as chairman and Garry Peagam  36
02 CORPORATE GOVERNANCE
and Chee Seong Chin. It will meet at least once each 
year and will consider and recommend to the Board 
the framework for the remuneration of the executive 
Directors and any other senior management. It will 
further consider and recommend to the Board the total 
individual remuneration package of each executive 
Director including bonuses, incentive payments and share 
options or other share awards. In addition, subject to 
existing contractual obligations, it will review the design 
of all share incentive plans for approval by the Board and 
the Company’s shareholders and, for each such plan, 
will recommend whether awards are made and, if so, the 
overall amount of such awards, the individual awards to 
executive Directors and the performance targets to be 
used. No Director will be involved in decisions concerning 
his own remuneration.
Nomination Committee
The nomination committee will initially consist of Kim 
Seng Teh as chairman and Sean Seah and Garry Peagam. 
The nomination committee will meet at least once each 
year and will consider the selection and re-appointment 
of Directors. It will identify and nominate candidates 
to all Board vacancies and will regularly review the 
structure, size and composition of the Board (including 
the skills, knowledge and experience) and will make 
recommendations to the Board with regard to any 
changes.
Investor relations
Company following the interim and annual results 
announcements and on an as-needed basis are attended 
by the Non-Executive Chairman, Chief Executive Officer 
and Chief Financial Officer to update the shareholders 
on the progress of the Group in terms of its business, 
financial performance and strategic direction. The annual 
report and accounts is published on the Company’s 
website and can be accessed by shareholders.
Internal control and risk management
The Board is responsible for the Group’s systems of 
internal controls and for reviewing the effectiveness of the 
systems. The systems can only provide reasonable but 
not absolute assurance against material misstatements 
or losses as the systems are put in place to manage and 
minimise the risks but not to eliminate them. 
With the active involvement of the Executive Directors of 
the Company in the daily operations and management of 
the Group, and with regular meetings with staff, business 
risks are identified and appropriate control systems 
implemented to manage the risks. The effectiveness of the 
control systems are reviewed and updated periodically by 
the Principal Management Office. 
The Group’s internal financial control procedures and 
monitoring systems include: 
• financial policies and approval procedures with proper 
authorization level and segregation of duties for financial 
management; 
• maintenance of proper records for the production of 
accurate and timely financial management information; 
• an annual budgetary process to set the appropriate 
target for monitoring of the progress of the Group; 
• a detailed monthly financial reporting system that 
reports on operating results, cash flow, assets and 
liabilities with comparisons against budgets; 
• reporting on any non-compliance with internal financial 
controls and procedures; and 
• a review of the Audit Committee report issued by 
external auditor.
The Audit Committee on behalf of the Board 
reviews reports from the external auditor together 
with management’s response regarding proposed 
actions. Through such review, they have reviewed the 
effectiveness of the internal control systems for the period 
covered by the accounts.  37
FINANCIAL
ST A TEMENTS
38
Independent Auditor’s Report to the Members of Galasys Plc 
40
Consolidated Statement of Comprehensive Income
41
Consolidated Statement of Financial Position 
43
Consolidated Statement of Changes in Equity
45
Consolidated Statement of Cash Flows
47
Notes to the Financial Statements 38
03 FINANCIAL STATEMENTS
INDEPENDENT
AUDIT OR’S REPORT
T O THE MEMBERS OF 
GALASy S PL C
We have audited the Financial Statements of Galasys plc for the year ended 31 December 2014 
which comprise the Group Statement of Comprehensive Income, Group Statements of Financial 
Position, Group Statement of Cash flows, Group Statement of Changes in Equity and their related 
notes.  
The financial reporting framework that has been applied in their preparation is applicable law and 
International Financial Reporting Standards (“IFRS”) as adopted by the European Union. 
This report is made solely to the company’s members, as a body, in accordance with Article 113A 
of the Companies (Jersey) Law, 1991.  Our audit work has been undertaken so that we might state 
to the Company’s members those matters we are required to state to them in an auditor’s report 
and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s members as a body, for our 
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are 
responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view. Our responsibility is to audit and express an opinion on the financial statements 
in accordance with applicable law and International Standards on Auditing (UK and Ireland). 
Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for 
Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial 
statements sufficient to give reasonable assurance that the financial statements are free from 
material misstatement, whether caused by fraud or error. This includes an assessment of: 
whether the accounting policies are appropriate to the company's circumstances and have been 
consistently applied and adequately disclosed; the reasonableness of significant accounting 
estimates made by the directors; and the overall presentation of the financial statements. 39
03 FINANCIAL STATEMENTS
In addition, we read all the information in the Annual Report to identify material inconsistencies 
with the audited financial statements and to identify any information that is apparently materially 
incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course 
of performing the audit. If we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report.
Opinion
In our opinion: 
• the financial statements give a true and fair view of the state of the group and parent company’s 
affairs as at 31 December 2014 and of the group’s profit for the year then ended;
• the financial statements have been properly prepared in accordance with IFRSs as adopted by 
the European Union; and 
• the financial statements have been prepared in accordance with the requirements of the  
Companies (Jersey) Law 1991.
Matters on which we are required to report by exception 
We have nothing to report to you in respect of the following matters where the Companies (Jersey) 
Law 1991 requires us to report to you if, in our opinion:
• proper accounting records have not been kept by the parent company, or 
• proper returns adequate for our audit have not been received from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and 
returns; or
• we have not received all the information and explanations we require for our audit.
Stephen Bullock       St Brides House
Senior Statutory Auditor      10 Salisbury Square
For and on behalf of      London
Crowe Clark Whitehill LLP     EC4Y 8EH
Statutory Auditor
15 April 2015 40
03 FINANCIAL STATEMENTS
CONSOLIDA TED 
ST A TEMENT OF 
COMPREHENSIVE INCOME 
Proforma
2014 2013
Note RM RM
Revenue 19 38,621,893 9,394,752
Cost of sales (19,099,021) (2,913,438)
Gross profit 19,522,872 6,481,314
Other operating income 20 611,722 2,907,885
Selling and distribution expenses (725,596) (524,750)
Administrative expenses (6,907,528) (1,479,765)
Other operating expenses (1,082,203) (235,663)
Operating profit 11,419,267 7,149,021
Finance costs (80,705) (42,001)
Profit before taxation 21 11,338,562 7,107,020
Income tax expense 22             (1,942,803) (350,155)
Profit after taxation 9,395,759 6,756,865
Other comprehensive income:
- Items that will or may be reclassified to profit or loss
- Foreign currency translation 657,793 581,900
Total comprehensive income for the financial year 10,053,552 7,338,765
Profit after taxation attributable to:-
Owners of the Company 9,395,759 6,756,865
Total comprehensive income attributable to:-
Owners of the Company 10,053,552 7,338,765
Earnings per share:
- Basic (sen) 23 15.79 12.82
- Diluted (sen) 23 15.79 12.82 41
03 FINANCIAL STATEMENTS
CONSOLIDA TED 
ST A TEMENT OF
FINANCIAL POSITION 
Proforma
2014 2013
Note RM RM
Non-current assets 
Plant and equipment 4 493,095 211,972
Intangible assets 5 6,085,901 2,769,538
Goodwill on consolidation 6 550,356 515,913
Investment in quoted shares - 112,674
Deferred tax assets 14,570 -
7,143,922 3,610,097
Current assets 
Inventories 7 1,037,779 2,169,289
Trade and other receivables 8 17,233,262 12,672,204
Amount owing by contract customers 9 8,564,195 1,368,794
Amount owing by related parties 10 - 346,258
Fixed deposits with licensed banks 11 477,289 463,362
Cash and bank balances 11,739,417 1,700,823
39,051,942 18,720,730
Total Assets 46,195,864 22,330,827
Current liabilities 
Trade and other payables 12 5,225,181 1,728,352
Amount owing to related parties - 560,485
Amount owing to directors 13 - 1,667
Short-term borrowings 14 467,871 615,618
Finance lease payables  15 29,660 29,660
Redeemable convertible preference shares 16 - 1,173,564
Provision for taxation 1,738,971 1,490,878
7,461,683 5,600,224
Equity
Stated capital account 17 25,406,103 -
Foreign currency translation reserves 18 1,294,500 636,707
Capital reserve 18 671,556 543,224
Share option reserve 172,792 -
Retained profits 21,853,473 12,586,046
Merger reserve 18 (10,851,562) 2,707,972
38,546,862 16,473,949 42
03 FINANCIAL STATEMENTS
CONSOLIDA TED ST A TEMENT OF FINANCIAL POSITION - CONTINUED
Proforma
2014 2013
Note RM RM
Non-current liabilities 
Deferred tax liabilities - 3,038
Long term borrowings 14B 81,984 118,621
Finance lease payables  15 105,335 134,995
187,319 256,654
Total Equity and Liabilities 46,195,864 22,330,827
 
The financial statements were approved by the Board of Directors and authorised for issue on 15 
April 2015 and are signed on its behalf by:
Sean Seah
Chief Executive Officer
  43
03 FINANCIAL STATEMENTS
CONSOLIDA TED 
ST A TEMENT OF
CHANGES IN EqUIT y NON-DISTRIBUTABLE DISTRIBUTABLE
Stated capital
account
Foreign
currency
translation
reserve Capital reserve
Merger Reserve/
(deficit) Retained profits
Attributable
to owners
of the Group Total
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Balance at 1 January 2013 
(Proforma) - 55 304 - 6,068 6,427 6,427
Profit after tax for the year - - - - 6,757 6,757 6,757
Other comprehensive income, 
net of tax
- Foreign currency transalation 
differences for foreign operations - 582 - - - 582 582
Total comprehensive income 
for the year - 582 - - 6,757 7,339 7,339
Transfer to capital reserve - - 239 - (239) - -
Issuance of shares on group 
reorganisation - - - 2,708 - 2,708 2,708
Balance at 31 December 2013 
(Proforma) - 637 543 2,708 12,586 16,474 16,474 44
03 FINANCIAL STATEMENTS
NON-DISTRIBUTABLE DISTRIBUTABLE
Stated capital
account
Foreign
currency
translation
reserve
Share option
reserve
Capital
reserve
Merger
Reserve/
(deficit)
Retained 
profits
Attributable
to owners
of the Group Total
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Balance at 1 January 2014 - 637 - 543 2,708 12,586 16,474 16,474
Profit after tax for the year - - - - - 9,396 9,396 9,396
Other comprehensive 
income, net of tax
- Foreign currency
transalation differences for 
foreign operations - 658 - - - - 658 658
Total comprehensive 
income for the year - 658 - - - 9,396 10,054 10,054
Transfer to capital reserve - - - 128 - (128) - -
Issuance of shares - - - - 3,939 - 3,939 3,939
Share based payment - - 173 - - - 173 173
Issuance of shares on
group reconstruction 17,478 - - - (17,478) - - -
Issuance of placing shares 17,076 - - - - - 17,076 17,076
Share issuance expenses (9,148) - - - - - (9,148) (9,148)
Transfer to merger deficit - - - - (20) - (20) (20)
Balance at
31 December 2014 
(Proforma) 25,406 1,295 173 671 (10,851) 21,854 38,548 38,548
CONSOLIDA TED ST A TEMENT OF CHANGES IN EqUIT y- CONTINUED 45
03 FINANCIAL STATEMENTS
CONSOLIDA TED 
ST A TEMENT OF
CASH FL OwS
Proforma
2014 2013
Note RM RM
Cash flow from operating activities
Profit before taxation 11,338,562 7,107,020 
Adjustments for:
Depreciation of plant and equipment                                       4 128,952 29,476 
Amortisation charge                                                                 5 1,027,328 677,481 
Interest income (13,927) (287)
Interest expense 80,705 42,001 
Fair value loss on receivables - 16,382
Write back on impairment loss of receivables (109,679) -
Written off of tenancy deposits - 5,169 
Written off of trade and other receivables 247,048 184,636 
Impairment allowance on trade receivables 299,011 -
Share based payments 172,792 -
Loss on sales of unquoted shares 48,632                -
Unrealised loss on foreign exchange 319,036 -
Gain on disposal of plant and equipment - (2,360)
Negative goodwill - (2,055,505)
  
Operating profit before working capital changes 13,538,460 6,004,013 
Decrease in inventories 1,188,210 74,417 
Increase in trade and other receivables (4,359,113) (2,944,420)
Increase/(decrease) in trade and other payables 2,548,887 (1,151,418)
Increase in amount owing by contract customers (6,665,732) (319,486)
  
Cash flow from operations 6,250,712 1,663,106 
Interest received 13,927 287 
Interest paid (80,705) (9,078)
Income tax paid (1,749,913) (350,155)
  
  
Net cash flow from operating activities 4,434,021 1,304,160 
Cash flow used in investing activities
Acquisition of plant and equipment                                                             (404,974) (34,942)
Proceed from disposal of plant and equipment - 22,051 
Proceed from sales of unquoted shares 64,042 -
Acquisition of a subsidiary, net of cash acquired                                                        - 290,719 
Addition of intangible assets (4,143,961) (1,763,139)
Repayment from holding company - 386,393 
Repayment to related parties - (29,030)
Repayment of advances from a director - 34,976  46
03 FINANCIAL STATEMENTS
Proforma
2014 2013
Note RM RM
Net cash flow used in investing activities (4,484,893) (1,092,972)
Balance carried forward (50,872) 211,188 
Cash flow from financing activities
Repayment of borrowings (36,637) (244,590)
Repayment of finance lease payables (29,660) -
Cash restricted in use (13,927) (463,362)
Net proceeds from issuance of shares         10,673,005   - 
Issuance of preference shares - 1,173,564 
Repayment to a director - (24,878)
(Repayment to)/ Advances from related parties - 273,332 
  
Net cash from financing activities 10,592,781 714,066 
Net Increase in cash and cash equivalents 10,541,909 925,254 
Effects of foreign exchange translation (355,568) 17,825 
Opening balance 1,134,271 191,192 
Closing balance                                                                                11B 11,320,612 1,134,271 
CONSOLIDA TED ST A TEMENT OF CASH FL OwS - CONTINUED 47
03 FINANCIAL STATEMENTS
1. General Information
Galasys PLC was incorporated in Jersey on 23 January 2014 as a public limited company with 
registration number 114827. It is listed on the AIM Market of the London Stock Exchange. The 
registered office of the Company is Queensway House, Hilgrove Street, St Helier, Jersey, JE1 1ES. 
The principal activity of the Company is to act as the holding company of a group involved in the 
provision of IT solutions and management services to customers operating in the amusement park 
industry. 
The subsidiaries are principally engaged in providing integrated services and theme-park solutions, 
information technologies solutions and management services to third parties operating in the 
amusement park industry in Asia. 
2. Summary of significant accounting policies
2.1. Basis of preparation 
Statement of Compliance 
The consolidated financial information has been prepared in accordance with International 
Financial Reporting Standards as adopted by the EU (“IFRS”) issued by the International Accounting 
Standards Board (“IASB”), including related Interpretations issued by the International Financial 
Reporting Interpretations Committee (“IFRIC”). The consolidated financial information has been 
prepared using the accounting policies which are consistent with those adopted in Part IV of the 
AIM Admission Document of Galasys plc dated 7 May 2014 as well as applying the below accounting 
policy in respect of the basis of consolidation as extracted from the draft financial statements.    
The individual financial information of each entity is measured and presented in the currency 
of the primary economic environment in which the entity operates (its functional currency). The 
consolidated financial statements of the Group are presented in Ringgit Malaysia (RM), which is the 
presentation currency for the consolidated financial statements. The functional currency of each 
individual entity is the local currency of each individual entity. The primary economic environment 
for the Group is Malaysia. 
The financial information set out in this preliminary announcement does not constitute audited 
financial statements for the year ended 31 December 2014. The financial information for the year 
NO TES T O THE
FINANCIAL
ST A TEMENTS 48
03 FINANCIAL STATEMENTS
ended 31 December 2014 is derived from draft financial statements.  The audit of the statutory 
accounts for the year ended 31 December 2014 is not yet complete.  These accounts are expected to 
be finalised on the basis of the financial information presented by the directors in this preliminary 
announcement and will be delivered to the Jersey Companies Registry following the company's 
Annual General Meeting. Although the auditors have not yet reported on the financial statements for 
the year ended 31 December 2014, they currently anticipate issuing an unqualified report. 
The financial information set out in this announcement was approved and authorised for issue by 
the board of directors on 13 April 2015.
2.2. Basis of consolidation
Business Combinations 
The consolidated financial statements include the financial statements of the Company and its 
subsidiaries made up to 31 December each year. 
  
On 7 March 2014 the Company acquired the entire share capital of Galasys Holdings Limited 
(“Galasys Holdings”) via a share swap agreement. As a result of this transaction, the ultimate 
shareholders in Galasys Holdings received shares in the Company in direct proportion to their 
original shareholdings in Galasys Holdings.
IFRS does not provide specific guidance on accounting for common control transactions. Therefore, 
the Directors have selected an accounting policy using the “hierarchy” described in paragraphs 
10-12 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The hierarchy 
permits the consideration of pronouncement of other standard-setting bodies. The Directors have 
adopted a policy of accounting for business combinations between entities under common control 
in accordance with guidance under UK GAAP for guidance (FRS-Acquisitions and Mergers) which 
does not conflict with IFRS and reflects the economic substance of the transaction. This guidance 
produces a result that is similar to pooling. 
Under UK GAAP , the assets and liabilities of both entities are recorded at book value, not fair 
value. Intangible assets and contingent liabilities are recognized only to the extent that they were 
recognized by the legal acquirer in accordance within applicable IFRS, no goodwill is recognised, any 
expenses of the combination are written off immediately to the income statement and comparative 
amounts, if applicable, are restated as if the combination had taken place at the beginning of the 
earliest accounting period presented. Therefore, the consolidated accounts have therefore been 
prepared as if the Group structure has always been in place, including activity from incorporation of 
the Group’s subsidiaries, although the Group reconstruction did not become unconditional until [7 
March 2014]. 
Subsidiaries 
A subsidiary is an entity (including special purposes entities) over which the Company has the power 
to govern the financial operating policies, generally accompanied by a shareholding giving rise to 
the majority of the voting rights, as to obtain benefits from their activities. The consolidated financial 
statements present the results of the Group as if they formed a single entity.  49
03 FINANCIAL STATEMENTS
Intra-group balances and transactions and any income and expenses arising from intra-
Group transactions are eliminated on consolidation. Unrealised gains and losses arising from 
transactions with associates and joint ventures are eliminated against the investment to the extent 
of the Group’s interest in the investee.
The principal activities of the subsidiaries are as follows: 
Name
Place of incorporation/ 
establishment Principal activities
Issued and paid-up/
registered capital
Effective
interests %
Galasys Holdings Limited British Virgin Island Investment holding. USD4,133,628 100
Galasys Solutions (MSC) Sdn Bhd * Malaysia Software development and maintenance 
with a specific focus on software relating to 
theme park visitor admittance. 
RM500,000 100
Galasys Technologies (HK) Limited * Hong Kong Investment holding. HKD190 100
Galasys GL T Sdn Bhd
(formerly known as Green Laser 
Technology Sdn Bhd) *
Malaysia Engaged in production, supplying, 
distribution of self-service kiosk and other 
computer related accessories and provide 
a wide range of business communication 
solutions. 
RM400,000  100
Galasys Global (Suzhou) Co. Limited ^ People’s Republic of 
China 
Software design and development, sale 
of software products of the company and 
provision of consulting and after-sale 
services and software services. 
RMB5,379,725 100
Note: 
* Held through Galasys Holdings Limited 
^ Held through Galasys Technologies (HK) Limited. Under Galasys Global (Suzhou) Co. Limited, there is a branch company in Beijing and four representative 
branch offices in Guangzhou, Chengdu, Shandong and Wuhan. 
Purchase method
Under the purchase method, the results of subsidiaries acquired or disposed of are included from 
the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the 
subsidiaries’ net assets are determined and these values are reflected in the consolidated financial 
statements. The cost of acquisition is measured at the aggregate of the fair values, at the date of 
exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the 
Group in exchange for control of the acquiree, plus any costs directly attributable to the business 
combination. 
Intragroup transactions, balances and unrealised gains on transactions are eliminated; unrealised 
losses are also eliminated unless cost cannot be recovered. Where necessary, adjustments are 
made to the financial information of subsidiaries to ensure consistency of accounting policies with 
those of the Galasys Group. 50
03 FINANCIAL STATEMENTS
2.3 Goodwill 
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share 
of the net identifiable assets of the acquired subsidiary at the date of acquisition. If the cost of an 
acquisition is less than the fair value of the Group’s share of net identifiable assets of the acquired 
subsidiary and the measurement of all amounts has been reviewed, the difference is recognised 
directly in profit or loss as a bargain purchase (negative goodwill). 
During the financial year ended 31 December 2013, Galasys Holdings acquired the entire share 
capital of Galasys GL T Sdn. Bhd. (formerly known as Green Laser Technology Sdn. Bhd.) (“Galasys 
GL T”). The purchase consideration of RM2,707,895 was fully satisfied by way of issuance of 
16,511,566 ordinary shares of Galasys Holdings. The fair value of Galasys GL T’s net identifiable 
assets as at the date of acquisition was RM4,763,400, resulted in negative goodwill of RM2,055,505. 
Such goodwill was recognised in profit or loss in the same year.      
Goodwill is tested annually for impairment and carried at cost less accumulated impairment 
losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an 
entity include the carrying amount of goodwill relating to the entity sold. 
After initial recognition, goodwill acquired in a business combination is measured at cost less any 
accumulated impairment losses. Goodwill is not amortised. Irrespective of whether there is any 
indication of impairment, goodwill (and also an intangible asset with an indefinite useful life or 
an intangible asset not yet available for use) is tested for impairment, at least annually. Goodwill 
impairment is not reversed in any circumstances. 
For the purpose of impairment testing and since the acquisition date of the business combination, 
goodwill is allocated to each cash-generating unit, or groups of cash-generating units that are 
expected to benefit from the synergies of the combination, irrespective of whether other assets 
or liabilities of the acquiree were assigned to those units or groups of units. Each unit or group of 
units to which the goodwill is so allocated represents the lowest level within the entity at which 
the goodwill is monitored for internal management purposes and is not larger than a segment.
2.4. Intangible assets
Research and development expenditure
Research expenditure is recognised as an expense when it is incurred.
Development expenditure is recognised as an expense except that costs incurred on development 
projects are capitalised as long term assets to the extent that such expenditure is expected to 
generate future economic benefits. Development expenditure is capitalised if, and only if, an entity 
can demonstrate all of the following:
(i) its ability to measure reliably the expenditure attributable to the asset under development;
(ii) the product or process is technically and commercially feasible;
(iii) its future economic benefits are probable;
(iv) its ability to use or sell the developed asset; and
(v) the availability of adequate technical, financial and other resources to complete the asset 
under development.  51
03 FINANCIAL STATEMENTS
Capitalised development expenditure is measured at cost less accumulated amortisation and 
impairment losses, if any. Development expenditure initially recognised as an expense is not 
recognised as assets in the subsequent year.
The development expenditure is amortised on a straight-line method over a period of 5 years 
when the products are ready for sale or use. In the event that the expected future economic 
benefits are no longer probable of being recovered, the development expenditure is written down 
to its recoverable amount.
2.5. Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any accumulated 
impairment losses. The cost of plant and equipment includes its purchase price and any costs 
directly attributable to bringing the asset to the location and condition necessary for it to be 
capable of operating in the manner intended by management. Dismantlement, removal or 
restoration costs are included as part of the cost of plant and equipment if the obligation for 
dismantlement, removal or restoration is incurred as a consequence of acquiring or using the 
plant and equipment. Depreciation of plant and equipment is calculated using the straight-line 
method to allocate their depreciable amounts over their estimated useful lives as follows:
Motor vehicle   25%
Leasehold improvements  33.33%
Computer and office equipment 10-33.33%
Furniture and fittings  10%
Machineries    20%
The carrying values of plant and equipment are reviewed for impairment when events or changes 
in circumstances indicate that the carrying value may not be recoverable. 
The estimated useful lives, residual values and depreciation methods are reviewed, and adjusted 
as appropriate, at the end of each financial year.
The gain or loss arising on disposal or retirement of an item of plant and equipment is determined 
as the difference between the sales proceeds and the carrying amount of the asset and is 
recognised in comprehensive income statement. 
Fully depreciated plant and equipment are retained in the financial statements until they are no 
longer in use.
2.6. Impairment of tangible and intangible assets excluding goodwill
At the end of each financial year, the Group reviews the carrying amounts of its tangible and 
intangible assets to determine whether there is any indication that those assets have suffered an 
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in 
order to determine the extent of the impairment loss (if any). Where it is not possible to estimate 
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the 
cash-generating unit to which the asset belongs. Intangible assets with indefinite useful lives and  52
03 FINANCIAL STATEMENTS
intangible assets not yet available for use are tested for impairment annually, and whenever there 
is an indication that the asset may be impaired.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs 
to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted 
to their present value using a pre-tax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset. 
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than 
its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced 
to its recoverable amount. An impairment loss is recognised immediately in statement of 
comprehensive income, unless the relevant asset is carried at a revalued amount, in which case 
the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-
generating unit) is increased to the revised estimate of its recoverable amount, but so that 
the increased carrying amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset (cash-generating unit) in prior 
years. A reversal of an impairment loss is recognised immediately in comprehensive income 
statement, unless the relevant asset is carried at a revalued amount, in which case the reversal of 
the impairment loss is treated as a revaluation increase.
2.7. Income Tax
Income tax expense represents the sum of the tax currently payable and deferred tax. 
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as 
reported comprehensive income statement because it excludes items of income or expense that 
are taxable or deductible in other years and it further excludes items that are not taxable or tax 
deductible. The Group’s liability for current tax is calculated using tax rates (and tax laws) that have 
been enacted or substantively enacted in countries where the Group and its subsidiaries operate 
by the end of the financial period.
Deferred tax is recognised on the differences between the carrying amounts of assets and liabilities 
in the financial information and the corresponding tax bases used in the computation of taxable 
profit, and are accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred 
tax assets are recognised to the extent that it is probable that taxable profits will be available 
against which deductible temporary differences can be utilised. Such assets and liabilities are not 
recognised if the temporary difference arises from goodwill or from the initial recognition (other 
than in a business combination) of other assets and liabilities in a transaction that affects neither 
the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised on taxable temporary differences arising on investment in  53
03 FINANCIAL STATEMENTS
subsidiary, except where the Group is able to control the reversal of the temporary difference and 
it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each financial year and 
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to 
allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability 
is settled or the asset realised based on the tax rates (and tax laws) that have been enacted or 
substantively enacted by the end of the financial year. Deferred tax is charged or credited to 
comprehensive income statement, except when it relates to items charged or credited directly 
to equity, in which case the deferred tax is also dealt with in equity, or where they arise from the 
initial accounting for a business combination. In the case of a business combination, the tax effect 
is taken into account in calculating goodwill or determining the excess of the acquirer’s interest in 
the net fair value of the acquire’s identifiable assets, liabilities and contingent liabilities over cost.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off 
current tax assets against current tax liabilities and when they relate to income taxes levied by the 
same taxation authority and the Group intends to settle its current tax assets and liabilities on a 
net basis.
2.8. Financial instruments
Financial assets and financial liabilities are recognised on the Group’s consolidated statement 
of financial position when the Group becomes a party to the contractual provisions of the 
instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial 
instrument and allocating the interest income or expense over the relevant period. The effective 
interest rate is the rate that exactly discounts estimated future cash receipts or payments 
(including all fees on points paid or received that form an integral part of the effective interest 
rate, transaction costs and other premiums or discounts) through the expected life of the financial 
instrument, or where appropriate, a shorter period, to the net carrying amount of the financial 
instrument. Income and expense are recognised on an effective interest basis for debt instruments 
other than those financial instruments at fair value through comprehensive income statement.
Financial assets
Financial assets within the scope of IAS 39 are classified as either:
(i) financial assets at fair value through profit or loss
(ii) loans and receivables
(iii) held-to-maturity investments
(iv) available-for-sale financial assets
The classification depends on the purpose for which the financial assets were acquired.  54
03 FINANCIAL STATEMENTS
Management determines the classification of its financial assets at initial recognition and re-
evaluates this classification at every reporting date. As at the balance sheet date, the Group did 
not have any financial assets at fair value through profit or loss, and in the categories of held-to-
maturity investments and available-for-sale financial assets.
All regular way purchases and sales of financial assets are recognised on the trade date, i.e. 
the date that the Group commits to purchase the asset. Regular way purchases and sales are 
purchases or sales of financial assets that require delivery of the financial assets within the period 
generally established by regulation or convention of the market place concerned.
Financial assets are derecognised when the rights to receive cash flow from the financial assets 
have expired or have been transferred and the Group has transferred substantially all risks and 
rewards of ownership.
Financial assets at fair value through profit or loss (“FVTPL ”) 
Financial assets are classified in this category if they are acquired for the purpose of selling in the 
short term. Gains or losses on investments held for trading are recognised in the comprehensive 
income statement.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that 
are not quoted in active market are classified as loans and receivables. Loans and receivables 
are measured at amortised cost, using the effective interest method less impairment. Interest is 
recognised by applying the effective interest method, except for short-term receivables when the 
recognition of interest would be immaterial.
Impairment of financial assets
Financial assets, other than FVTPL, are assessed for indicators of impairment at the end of each 
financial year. Financial assets are impaired where there is objective evidence that, as a result of 
one or more events that occurred after the initial recognition of the financial asset, the estimated 
future cash flows of the investment have been impacted.
For financial assets carried, at amortised cost, the amount of the impairment is the difference 
between the asset’s carrying amount and the present value of estimated future cash flows, 
discounted at the original effective interest rate.
The carrying amounts of all financial assets are reduced by the impairment loss directly with 
the exception of trade receivables where the carrying amount is reduced through the use of an 
allowance account. Changes in the carrying amount of the allowance account are recognised in 
comprehensive income statement.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be 
related objectively to an event occurring after the impairment loss was recognised, the previously 
recognised impairment loss is reversed through comprehensive income statement to the extent  55
03 FINANCIAL STATEMENTS
the carrying amount of the investment at the date the impairment is reversed does not exceed 
what the amortised cost would have been had the impairment not been recognised.
In respect of available-for-sale equity instruments, any subsequent increase in fair value after 
an impairment loss is recognised directly in equity.
Derecognition of financial assets 
The Group derecognises a financial asset only when the contractual rights to the cash flows 
from the asset expire, or it transfers the financial asset and substantially all the risks and 
rewards of ownership of the asset to another entity. If the Group neither transfers nor retains 
substantially all the risks and rewards of ownership of the financial asset and continues 
to control the transferred asset, the Group recognises its retained interest in the asset and 
an associated liability for amounts it may have to pay. If the Group retains substantially all 
the risks and rewards of ownership of a transferred financial asset, the Group continues to 
recognise the financial asset and also recognises a collateralised borrowing for the proceeds 
receivables.
Financial liabilities and equity instruments   
Classification as debt or equity        
Financial liabilities and equity instruments issued by the Group are classified according to 
the substance of the contractual arrangements entered into and the definitions of a financial 
liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the 
Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds 
received, net of direct issue costs.
Financial liabilities 
Financial liabilities are classified as either financial liabilities at fair value through 
comprehensive income statement or other financial liabilities.
Financial liabilities are classified as at fair value through comprehensive income statement 
if the financial liability is either held for trading or it is designated as such upon initial 
recognition.
Other financial liabilities        
Trade and other payables: 
Trade and other payables are initially measured at fair value, net of transaction costs, and 
are subsequently measured at amortised cost, where applicable, using the effective interest 
method, with interest expense recognised on an effective yield basis.
Derecognition of financial liabilities 
The Group derecognises financial liabilities when, and only when, the Group’s obligations are 
discharged, cancelled or they expire. 56
03 FINANCIAL STATEMENTS
2.9. Inventories
Inventories are stated at the lower of cost and net realisable value. Costs comprise direct materials 
and, where applicable, direct labour costs and those overheads that have been incurred in 
bringing inventories to their present location and condition. Cost is calculated using the weighted 
average method. Net realisable value represents the estimated selling price less all estimated costs 
of completion and costs to be incurred in marketing, selling and distribution.
2.10. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term 
highly liquid investments which are readily convertible to known amounts of cash and are subject 
to insignificant risk of changes in value.
2.11. Employee benefits
Short term benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued 
in the period in which the associated services are rendered by employees of the Group.
For employee leave entitlement the expected cost of short-term employee benefits in the form of 
compensated absences is recognised in the case of accumulating compensated absences, when 
the employees render service that increases their entitlement to future compensated absences; 
and in the case of non-accumulating compensated absences, when the absences occur. A liability 
for bonuses is recognised where the entity is contractually obliged or where there is constructive 
obligation based on past practice.
Defined contribution plans
The Group’s contributions to defined contribution plans are recognised in profit or loss in the 
period to which they relate. The entity’s legal or constructive obligation is limited to the amount 
that it agrees to contribute to an independently administered fund. Once the contributions have 
been paid, the Group has no further liability in respect of the defined contribution plans.
Share-based payment transactions
The Group operates share-based compensation plans for remuneration of its employees. All 
employee services received in exchange for the grant of any share-based compensation are 
measured at their fair values. 
The grant-date fair value of share-based payment awards granted to employees is recognised as 
an employee expense, with a corresponding increase in equity, over the period that the employees 
become unconditionally entitled to the awards. The amount recognised as an expense is adjusted 
to reflect the number of awards for which the related service and non-market performance 
conditions are expected to be met, such that the amount ultimately recognised as an expense 
is based on the number of awards that meet the related service and non-market performance 
conditions at the vesting date. For share-based payment awards with non-vesting conditions, the 
grant-date fair value of the share-based payment is measured to reflect such conditions and there 
is no true-up for differences between expected and actual outcomes.  57
03 FINANCIAL STATEMENTS
The fair value of the amount payable to employees in respect of share appreciation rights, which 
are settled in cash, is recognised as an expense with a corresponding increase in liabilities, over 
the period that the employees become unconditionally entitled to payment. The liability is 
remeasured at each reporting date and at settlement date. Any changes in the fair value of the 
liability are recognised as personnel expenses in profit or loss. 
 
The Group’s share option schemes provide for an exercise price at which an option may be 
exercised is determined by the Board of Directors at the time of grant and will be not less than 
[the average of the mid-market price for the last five dealing days prior to the date of grant or par 
value, whichever is higher]. The vesting period ranges from the date of grant up to [ten years]. If 
options remain unexercised after a period of [ten years] from the date of grant, the options expire 
and are returned to the unused share option pool. 
An option may be exercised for a period of 30 days if the option holder’s employment terminates 
by reason of injury, disability, redundancy, the option holder's employer ceasing to be a member 
of the group, because the business in which the option holder is employed is transferred out of 
the Group or for any other reason which may be determined by the Board. In such cases, options 
will be exercisable to the extent vested at the date on which the option holder ceases to hold 
an office or employment with the Group and to the extent any condition has been met at that 
time, with such condition to be modified by the Board of Directors as may be appropriate to 
reflect any reduced time for its fulfilment.  In the event of an option holder’s death, an option 
may be exercised by his personal representatives within 12 months following the date of death. 
The option may be exercised to the extent vested at the date of death and to the extent any 
condition has been met at such time, with such condition to be modified by the Board as may be 
appropriate to reflect any reduced time for its fulfilment. 
If an option holder ceases to be employed for any reason other than those set out above, his 
options will lapse on the date of such cessation. 
Options will lapse to the extent unexercised at the expiry of ten years from the date of grant.
The Group has a current share option scheme under which options have been granted on various 
exercise periods between 12 May 2018 to 12 May 2024. 
2.12. Contracts
Where the outcome of a contract can be reliably estimated, contract revenue and contract costs 
are recognised as revenue and expenses respectively by using the stage of completion method. 
The stage of completion is measured by reference to the proportion of cost of work accepted by 
the customers to date to the estimated total contract cost.
Where the outcome of a contract cannot be reliably estimated, contract revenue is recognised 
to the extent of contract costs incurred that are likely to be recoverable. Contract costs are 
recognised as expenses in the period in which they are incurred. 58
03 FINANCIAL STATEMENTS
When it is probable that total contract costs will exceed total contract revenue, the expected loss is 
recognised as an expense immediately.
Contract revenue comprises the initial amount of revenue agreed in the contract and variations in 
contract work to the extent that it is probable that they will result in revenue and they are capable 
of being reliably measured.
When the total of costs incurred on contracts plus recognised profits (less recognised losses) 
exceeds progress billings, the balance is classified as amount due from customers on contracts. 
When progress billings exceed costs incurred plus recognised profits (less recognised losses), the 
balance is classified as amount due to customers on contracts.
2.13. Provisions, contingent liabilities, contingent assets
Provisions are recognised when the Group has a present or constructive obligation as a result of 
past events, when it is probable that an outflow of resources embodying economic benefits will be 
required to settle the obligation, and when a reliable estimate of the amount can be made. 
Provisions are reviewed at the end of each financial reporting period and adjusted to reflect the 
current best estimate. Where effect of the time value of money is material, the provision is the 
present value of the estimated expenditure required to settle the obligation.
A contingent liability is a possible obligation that arises from past events and whose existence 
will only be confirmed by the occurrence of one or more uncertain future events not wholly within 
the control of the Group. It can also be a present obligation arising from past events that is not 
recognised because it is not probable that outflow of economic resources will be required or the 
amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial information. 
When a change in the probability of an outflow occurs so that the outflow is probable, it will then 
be recognised as a provision.
A contingent asset is a probable asset that arises from past events and whose existence will be 
confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly 
within the control of the Group. The Group does not recognise contingent assets but discloses 
their existence where inflows of economic benefits are probable, but not virtually certain.
2.14. Borrowings
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer 
settlement for at least twelve months after the reporting date, in which case they are presented as 
non-current liabilities. 
Borrowing costs, directly attributable to the acquisition and construction of plant and equipment, 
are capitalised as part of the cost of those assets, until such time as the assets are ready for their 
intended use or sale. Capitalisation of borrowing costs is suspended during extended periods in 
which active development is interrupted. 59
03 FINANCIAL STATEMENTS
All other borrowing costs are recognised in profit or loss as expenses in the period in which they 
incurred.
2.15. Leases 
Assets acquired under hire purchase are capitalised in the financial statements and are 
depreciated in accordance with the policy set out in note 2.6 above. Each hire purchase payment 
is allocated between the liability and finance charges so as to achieve a constant rate on the 
finance balance outstanding. Finance charges are recognised in profit or loss over the period of 
the respective hire purchase agreements.
Hire purchases are classified as finance leases as the terms of the lease transfer substantially all of 
the risk and rewards of ownership to the lessee.
Payments made under operating leases are recognised as an expense in the profit or loss on a 
straight-line basis over the term of the lease unless another systematic basis is representative of 
the time pattern of the user's benefit, even if the payments are not on that basis. Lease incentives 
received are recognised in profit or loss as an integral part of the total lease expense.
2.16. Related parties
A party is related to an entity if:
(i) directly, or indirectly through one or more intermediaries, the party: 
• controls, is controlled by, or is under common control with the entity (this includes parents, 
subsidiaries and fellow subsidiaries);
• has an interest in the entity that gives it significant influence over the entity; or
• has joint control over the entity;
(ii) the party is an associate of the entity;
(iii) the party is a joint venture in which the entity is a venturer;
(iv) the party is a member of the key management personnel of the entity or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
(v) the party is an entity that is controlled, jointly controlled or significantly influenced by, or for 
which significant voting power in such entity resides with, directly or indirectly, any individual 
referred to in (iv) or (v); or
(vii) the party is a post-employment benefit plan for the benefit of employees of the entity, or of 
any entity that is a related party of the entity.
Close members of the family of an individual are those family members who may be expected to 
influence, or be influenced by, that individual in their dealings with the entity.
2.17. Share capital 
Ordinary shares 
Proceeds from issuance of ordinary shares are classified as share capital in equity. Incremental 
costs directly attributable to the issuance of new ordinary shares are deducted against share 
capital.  60
03 FINANCIAL STATEMENTS
Redeemable convertible preference shares
Redeemable convertible preference shares are classified as equity if it is non-redeemable, or 
redeemable only at the Company’s option, and any dividends are discretionary. Dividends thereon 
are recognised as distributions within equity on approval by the Company’s shareholders. 
Redeemable convertible preference shares are classified as financial liability if it is redeemable on 
a specific date or at the option of the shareholders, or if dividend payments are not discretionary. 
Dividends thereon are recognised as interest expense in profit or loss as accrued.  
2.18. Revenue and other income
The Group’s revenue is earned through the sale of software, software related services and the sale of 
associated products. 
Sale of goods
Revenue is recognised upon delivery of goods and customers’ acceptance and, where applicable, 
net of returns and trade discounts.
Services
Revenue is recognised on the percentage of completion method as disclosed in notes 2.12.
Interest income 
Interest income is accrued on a time basis, by reference to the principal outstanding and at the 
applicable effective interest rate.
2.19. Foreign currency transactions and translation
Transactions and balances
Transactions in foreign currencies are converted into the respective functional currencies on initial 
recognition, using the exchange rates approximating those ruling at the transaction dates. Monetary 
assets and liabilities at the end of the reporting period are translated at the rates ruling as of that 
date. Non-monetary assets and liabilities are translated using exchange rates that existed when the 
values were determined. All exchange differences are recognised in profit or loss.
The translations of Sterling (“GBP”) amounts into RM amounts are included solely for the 
convenience of readers. The reporting year end rates used are GBP to RM5.4396 (2013: Nil) which 
approximate the rate of exchange at the end of the reporting year. The average rates of exchange for 
exchange for the reporting year were GBP to RM5.3935 (2013: Nil). Such translation should not be 
construed as a representation that the dollar amounts could be converted into RM at the above rate 
or other rate.
 
Foreign operations
Assets and liabilities of foreign operations are translated to RM at the rates of exchange ruling at 
the end of the reporting period. Revenues and expenses of foreign operations are translated at 
exchange rates approximating those ruling at the dates of the transactions. All exchange differences 
arising from translation are taken directly to other comprehensive income and accumulated in 
equity under the foreign exchange translation reserve. On the disposal of a foreign operation, the  61
03 FINANCIAL STATEMENTS
cumulative amount recognised in other comprehensive income relating to that particular foreign 
operation is reclassified from equity to profit or loss.
Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated 
as assets and liabilities of the foreign operations and are recorded in the functional currency of the 
foreign operations and translated at the closing rate at the end of the reporting period.
2.20. Operating segments
An operating segment is a component of the Group that engages in business activities from 
which it may earn revenues and incur expenses, including revenues and expenses that relate to 
transactions with any of the Group’s other components. An operating segment’s operating results 
are reviewed regularly by the chief operating decision maker (which takes the form of the Board of 
Directors of the Company) to make decisions about resources to be allocated to the segments and 
assess its performance, and for which discrete financial information is available. 
3. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in Note 2, management 
made judgements, estimates and assumptions about the carrying amounts of assets and liabilities 
that were not readily apparent from other sources. These judgements are continually evaluated by 
the directors and management and are based on historical experience and other factors, including 
expectations of future events that are believed to be reasonable under the circumstances. 
However, this does not prevent actual figures differing from estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised 
if the revision affects only that period or in the period of the revision and future periods if the 
revision affects both current and future periods. 
The key estimates and assumptions concerning the future and other key sources of estimation 
uncertainty at the end of the financial year, that have significant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next financial year are 
reviewed are as stated below.
Amortisation of intangible assets 
Development costs are amortised on a straight-line method over a period of 5 years. Useful lives 
are based on management’s estimates of the period that the assets will generate revenue, with 
such periods being periodically reviewed for continued appropriateness. 
The Group assesses the impairment of intangible assets subject to amortisation whenever events 
or changes in circumstances indicate that the carrying value may not be recoverable. Factors 
considered important that could trigger an impairment review include the following:
• significant underperformance relative to historical or projected future operating results;
• significant changes in the manner of the use of the acquired assets or the strategy for the overall 
business; and 62
03 FINANCIAL STATEMENTS
• significant negative industry or economic trends.
The complexity of the estimation process and issues related to the assumptions, risks and 
uncertainties inherent in the application of the Group’s accounting estimates in relation to 
intangible assets affect the amounts reported in the financial statements, especially the estimates 
of the expected useful economic lives and the carrying values of those assets. If business 
conditions were different, or if different assumptions were used in the application of this and other 
accounting estimates, it is likely that materially different amounts could be reported in the Group’s 
financial statements. The carrying amount of the development costs at the end of the financial 
year affected by the assumption is RM6,085,901 (2013: RM2,769,538) in Note 5.
Allowance for trade and other receivables
Management reviews its loans and receivables for objective evidence of impairment at least 
quarterly. Significant financial difficulties of the debtor, the probability that the debtor will enter 
bankruptcy, and default or significant delay in payments are considered objective evidence that a 
receivable is impaired. In determining this, management makes judgment as to whether there is 
observable data indicating that there has been a significant change in the payment ability of the 
debtor, or whether there have been significant changes with adverse effect in the technological, 
market, economic or legal environment in which the debtor operates in.
The allowance policy for doubtful debts of the Group is based on the ageing analysis and 
management’s on-going evaluation of the recoverability of the outstanding receivables. Once 
debtors have been identified as having evidence of impairment, it is regularly reviewed and 
appropriate impairment position applied. The carrying amount of the Group’s trade and other 
receivables as at 31 December 2014 are disclosed in Note 8. 
Impairment of non-financial assets
An impairment exists when the carrying value of non-financial assets or cash generating unit 
exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value 
in use. The fair value less costs to sell calculation is based on available data from binding sales 
transactions in an arm’s length transaction of similar assets or observable market prices less 
incremental costs for disposing the asset. The value in use calculation is based on a discounted 
cash flow model. The cash flows are derived from internal budgets and do not include significant 
future investments that will enhance the asset’s performance of the cash generating unit being 
tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash 
flow model as well as the expected future cash inflows and the growth rate used for extrapolation 
purposes. 
An assessment is made annually whether goodwill and franchise fees have suffered any 
impairment losses. The assessment process is complex and highly judgemental and is based on 
assumptions that are affected by expected future market or economic conditions.  Judgement 
is required in identifying the cash generating units (“CGU”) and the use of estimates as disclosed 
in Note 5 and 6. Projections of future revenues were a critical estimate in determining fair value. 
Actual outcomes could vary from these estimates as disclosed in Notes 5 and 6. 63
03 FINANCIAL STATEMENTS
Provision for income taxes 
The amount of income tax is being calculated on estimated assessable profits based on the 
completed contract method which is in accordance with the tax rules and regulations applicable 
in the People’s Republic China. Where the final tax outcome of these matters is different from the 
amounts that were initially recognised, such differences will impact the income tax and deferred 
tax provisions in the period in which such determination is made. The amounts are disclosed in 
Note 22.
Net realisable value of inventories
Net realisable value of inventories is the estimated selling price in the ordinary course of business, 
less estimated costs of completion and selling expenses. These estimates are based on the current 
market condition and the historical experience of manufacturing and selling products of similar 
nature. It could change significantly as a result of changes in customer demand and competitor 
actions in response to severe industry cycle. Management reassesses these estimates at each 
balance sheet date. The carrying amounts of the Group’s inventories as at 31 December 2014 are 
disclosed in Note 7. 
4. Plant and equipment 
Motor vehicles
Leasehold 
improvements
Computer, Machinery, 
Office equipment and 
furniture and fittings Total
RM RM RM RM
As at 31 December 2014
Cost
At 1 January 2014 252,186 18,308 517,943 788,437
Additions - 182,307 222,667 404,974
Effect in foreign exchange translation - 1,437 12,452 13,889
At 31 December 2014 252,186 202,052 753,062 1,207,300
Accumulated depreciation 
At 1 January 2014 115,421 9,662 451,382 576,465
Charge for the year 50,437 24,590 53,925 128,952
Effect in foreign exchange translation - 841 7,947 8,788
At 31 December 2014 165,858 35,093 513,254 714,205
Net book value
At 31 December 2014 86,328 166,959 239,808 493,095 64
03 FINANCIAL STATEMENTS
4. Plant and equipment - continued
Motor vehicles
Leasehold 
improvements
Computer, Machinery, 
Office equipment and 
furniture and fittings Total
RM RM RM RM
As at 31 December 2013 (Proforma)
Cost
At 1 January 2013 34,208 16,564 152,673 203,445
Additions - - 34,942 34,942
Addition through acquisition
of a subsidiary
252,186 - 313,099 565,285
Disposal (36,143)   - -        (36,143)
Effect in foreign exchange translation 1,935 1,744 17,229 20,908
At 31 December 2013 252,186 18,308 517,943 788,437
Accumulated depreciation 
At 1 January 2013 15,572 3,221 113,158 131,951
Charge for the year - 5,833 23,643 29,476
Addition through acquisition
of a subsidiary
115,421 - 301,653 417,074
Disposal (16,452) - - (16,452)
Effect in foreign exchange translation 880 608 12,928 14,416
At 31 December 2013 115,421 9,662 451,382 576,465
Net book value
At 31 December 2013 (Proforma) 136,765 8,646 66,561 211,972
The depreciation expense is charged to administrative expenses within the Consolidated 
Statement of Comprehensive Income as disclosed in Note 21. 
Assets under hire purchase
The carrying amount of motor vehicles held under finance leases amounted to RM86,328 (2013: 
RM136,765). 65
03 FINANCIAL STATEMENTS
5. Intangible assets 
Proforma
2014 2013
RM RM
At cost:
At 1 January 4,253,849 2,179,984
Addition during the year 4,143,961 1,763,139
Effect in foreign exchange translation 323,285 310,726
8,721,095 4,253,849
Accumulated amortisation:
At 1 January (1,484,311) (701,740)
Addition during the year (1,027,328) (677,481)
Effect in foreign exchange translation (123,555) (105,090)
(2,635,194) (1,484,311)
At 31 December 6,085,901 2,769,538
Intangible assets comprise software development costs and additions comprise internally 
generated assets. Development costs principally comprise internally generated expenditure on 
development costs on major software development projects where it is reasonably anticipated 
that the costs will be recovered through future commercial activity. It mainly consists of staff costs 
and outsourcing professional fees. 
Of those assets that are ready for use, the development costs are amortised over the estimated 
useful life of 5 years. The amortisation charge is recognised in cost of sales.
Key sources of estimation uncertainty
Of those assets that are not ready for us, the recoverable amount of a cash-generating unit (“CGU”) 
is determined using the value-in-use approach, and this is derived from the present value of the 
future cash flows from this segment computed based on the projections of financial budgets 
approved by management covering a period of five years with assumptions for revenues, margins 
and growth rates. These assumptions were used for the analysis of the CGU within the business 
on a consistent basis each year. Management determined budgeted gross margins based on its 
expectations of market developments. The weighted average growth rates used were consistent 
with forecasts included in industry reports. The discount rates used were pre-tax and reflected 
specific risks relating to the relevant segments. 66
03 FINANCIAL STATEMENTS
6. Goodwill on consolidation 
Proforma
2014 2013
RM RM
At 1 January 515,913 481,836
Effect in foreign exchange translation 34,443 34,077
At 31 December 550,356 515,913
During the financial year, the Group assessed the recoverable amount of the goodwill and 
determined that no impairment is required. 
This assessment of goodwill was done by comparing the gross profit to the value of goodwill for 
the entity whose acquisition gave rise to the goodwill.
Key sources of estimation uncertainty
The recoverable amount of a cash-generating unit is determined based on value-in-use 
calculations using cash flow projections based on financial budgets approved by management 
covering a period of three years. The key assumptions used for value-in-use calculations are:-
Average growth rate Historical growth rate of the business
Gross margin 66 per cent
Discount rate 8%
Management determined the budgeted gross margin based on past and expected future 
performances. The growth rate used is based on the anticipated demand over the projection 
years. The discount rate used was pre-tax and was estimated based on the industry weighted 
average cost of capital. 67
03 FINANCIAL STATEMENTS
7. Inventories
Proforma
2014 2013
RM RM
At cost:
Finished goods 1,037,779 2,169,289
None of the inventories carried at below net realiasable value. There has been no impairment 
charge recognised in relation to inventory
8. Trade and other receivables
Proforma
2014 2013
RM RM
 
Trade receivables (Note 8A)                                      10,955,264 9,368,879
Advance payments to suppliers 2,286,867 1,834,730
Prepayments 300,156 127,124
Other receivables                                    3,690,975 1,341,471
17,233,262 12,672,204
    
    
Trade receivables 
Proforma
2014 2013
RM RM
 
Trade receivables                                    11,170,991 9,478,558
Impairment allowances for receivables (215,727) (109,679)
10,955,264 9,368,879 68
03 FINANCIAL STATEMENTS
The change in impairment loss in respect of trade receivables balance during the year is as follows: 
Proforma
 2014 2013
Impairment Loss:  RM RM
At 1 January  109,679 -
Impairment loss recognised 215,727 109,679
Amount reversed (109,679) -
215,727 109,679
The Company’s normal trade credit terms range from 30 to 180 days. Other credit terms are 
assessed and approved on a case-by-case basis.
Included in other receivables for the financial year ended 31 December 2013 was an outstanding 
amount for the purchase of Redeemable Convertible Preference Shares (“RCPS”) from its investor 
of approximately RM563,000.
The carrying amounts of trade and other receivables approximate to their fair values. 69
03 FINANCIAL STATEMENTS
9. Amounts owing by/ (to) contract customers
Proforma
2014 2013
RM RM
Cost incurred to date 8,956,553 3,396,636
Attribute profits 19,163,220 5,404,713
28,119,773 8,801,349
Progress billings (19,555,578) (7,432,555)
8,564,195 1,368,794
Represented by:
Amount owing by contract customers 8,564,195 1,368,794
Amount owing (to) contract customers -   -
8,564,195 1,368,794
Amount of contract revenue recognised as revenue during the financial years 28,119,773 8,801,349
Amount of contract costs recognised as expenses during the financial years 8,956,553 3,396,636
10. Amounts owing by/ (to) related parties 
The amounts owing in previous financial year are non-trade in nature, unsecured, interest-free and 
repayable on demand. The amounts owing [have been] settled during the financial year in cash.
Several debt transfer agreements or letters and novation agreements were entered into between 
the Group and third parties on 20 December 2013 and on 31 December 2013. The debt has been 
settled during the financial year in cash. 
11. Cash and cash equivalents
Proforma
2014 2013
RM RM
Cash at banks 11,658,539 1,600,058
Cash in hand 80,878 100,765
11,739,417 1,700,823
  70
03 FINANCIAL STATEMENTS
11A. Cash and cash equivalents
Proforma
2014 2013
RM RM
Not restricted in use 11,739,417 1,700,823 
Restricted in use (a) 477,289 463,362 
12,216,706 2,164,185
(a) Cash restricted in use comprises of fixed deposits with licensed banks. The fixed deposits of the Group at the end of the 
reporting period bore effective interest rates ranging from 2.75% to 3.20% per annum. The fixed deposits have maturity 
periods ranging from 30 days to 365 days and pledged to bank as security for banking facilities granted to the Group.
11B. Cash and cash equivalents in the statement of cash flows
Proforma
2014 2013
RM RM
Amount as shown above   12,216,706 2,164,185 
Bank overdrafts (Note 14A) (418,805) (566,552)
Cash restricted in use over 3 months (477,289) (463,362)
Cash and cash equivalents for statement of cash flows 
purposes at end of the year 11,320,612 1,134,271 
12. Trade and other payables
Proforma
2014 2013
Note RM RM
Trade payables a 2,423,838 532,912
Accruals b 2,544,311 929,082
Other payables c 257,032 266,358
5,225,181 1,728,352
    
Note a: The normal trade credit terms granted to the Company is range from 30 to 60 days.
Note b: Included in the accruals are mainly salaries payable and value-added tax payable at the end of the reporting period.
Note c: Included in other payables is the amount owing to a research and development sub-contractor.
The carrying amounts of trade and other payables approximate to their fair values. 71
03 FINANCIAL STATEMENTS
13. Amount owing to directors
The amount owning are non-trade in nature, unsecured, interest-free and repayable on demand. 
The amounts have been settled during the financial year in cash. 
14. Short-term borrowings
 
Proforma
2014 2013
RM RM
Bank overdraft (Note 14A) 418,805 566,552
Term loan (Note 14B) 49,066 49,066
467,871 615,618
     
14A. Bank overdrafts
The bank overdrafts bore an interest rates of 2.00% per annum above the banks’ base lending rate 
at the end of the financial year and secured by:-
(i) fixed deposits up to RM200,000 with interest capitalised; and
(ii) Joint and several guarantee by all directors of a subsidiary for RM500,000.
14B. Term loan
Proforma
2014 2013
RM RM
Current: Not later than 1 year 49,066 49,066
Non-current:  Later than one year and not later than  five years 81,984 118,621
131,050 167,687
The term loan bore an effective interest rate of 8.35% per annum at the end of the reporting period 
and repayable by 60 monthly installments of RM4,089 and is secured by:-
(i) fixed deposits up to RM200,000; and
(ii) Joint and several guarantee by all directors of a subsidiary for RM500,000.
  72
03 FINANCIAL STATEMENTS
15. Finance lease payables
Proforma
2014 2013
RM RM
Minimum hire purchase payables:
- not later than one year 35,916 35,916
- later than one year and not later than five year 127,836 163,757
163,752 199,673
Less: Future finance charges (28,757) (35,018)
Present value of hire purchase payable 134,995 164,655
Current: Not later than 1 year 29,660 29,660
Non-current:  Later than one year and not later than five years 105,335 134,995
Present value of hire purchase available 134,995 164,655
 
   
The hire purchase payables of the Group related to motor vehicles, and bore effective interest rates 
ranging from 4.56% to 8.55% per annum at the end of the financial year. 
The obligations under finance lease payables are secured by the lessor's charge over the leased 
assets.
16. Redeemable convertible preference shares
Proforma
2014 2013
RM RM
Authorised
Redeemable convertible preference shares 3,280,000 3,280,000
Issued and fully paid-up:
Redeemable convertible preference A shares - 1,173,564
    
The Redeemable Convertible Preference Shares (“RCPS”) at a nominal value of US$0.01 were 
constituted by the subscription agreement dated 26 December 2013. The issue price of the 
RCPS was US$1.00. The main feature of the RCPS is that each holder shall, when all shares of the 
Company acceptable to all the holders of the RCPS, be entitled to require the Company to convert  73
03 FINANCIAL STATEMENTS
all or any of the RCPS registered under the name of the holder into such number of fully paid 
ordinary shares of US$1.00 each, at the conversion price as computed in the agreement therein.
The salient features of RCPS were as follows:-
(a) The RCPS shall be converted at the option of RCPS holders into ordinary shares of the 
Company at a specified conversion ratio for every RCPS held when the Company received 
approval for a public listing and there is an underwriter committed to underwrite the public listing 
and the Company proceeds with the listing exercise.
(b) The RCPS holders do not carry any right to vote at any general meeting of the Company except 
on resolutions to amend the RCPS holder’s rights, to declare dividends to other classes of shares 
whist there remain preference dividends in arrears, or to commence dissolution of the Company. 
(c) The RCPS do not carry any right to participate in the profits or surplus assets of the Company.
The entire RCPS were converted into 22,835,131 ordinary shares of Galasys Holdings on 7 March 
2014.  
 
 
17. Stated capital account
  
2014
Note Number of shares RM
On incorporation a 2 -
Issuance of shares:
On 7 March 2014 b 52,696,454 17,478,074  
On 12 May 2014 c 13,874,582 17,076,142
Less: Share issuance expenses -   (9,148,113) 
At the end of the financial year 66,571,038 25,406,103
    
Note a 
The Company was incorporated on 23 January 2014 with an unlimited share capital which is divided into Ordinary Shares 
with no par value of which 2 ordinary shares have been allotted and issued to the subscribers of the memorandum of the 
Company. 
Note b
On 7 March 2014, the Company issued and allotted an aggregate of 52,696,454 ordinary shares to the holders of shares in 
Galasys Holdings Limited (“Galasys Holdings”) pursuant to the Share Swap Agreement dated 7 March 2014 in consideration 
for the transfer of the entire issued share capital of  Galasys Holdings to the Company. 
Note c
An initial public offer being completed on admission of relevant shares to trading on AIM on 12 May 2015, resulted in the 
issuance of 13,874,582 ordinary shares (“Placing Shares”) at 22.5 pence per share to the subscribers of the Placing Shares 
raising approximately £3,121,781 before share issuance expenses.   74
03 FINANCIAL STATEMENTS
18. Reserves
(a)  Foreign currency translation reserves
The foreign exchange translation reserves arose from the translation of the financial information of 
foreign subsidiaries and are not distributable by way of dividends.
(b) Capital reserve
In accordance with the relevant laws and regulations of the People’s Republic of China (“PRC”), 
the subsidiaries of the Company established in the PRC are required to transfer 10% of profit after 
taxation prepared in accordance with the accounting regulation in the PRC to the statutory reserve 
until the reserve balance reaches 50% of the respective registered capital. Such reserve may be 
used to reduce any losses incurred or for capitalisation as paid-up capital.
(c)  Merger deficit
The accounting treatment for Group reorganisation is scoped out of IFRS 3. Accordingly, as 
required under IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, the Group 
has referred to current UK GAAP to assist its judgement in identifying a suitable accounting policy. 
The introduction of the new holding company has been accounted for as a capital reorganisation 
using the merger accounting principles prescribed under current UK GAAP . Therefore the 
consolidated financial statements of Galasys PLC is presented as if Galasys PLC has always been 
the holding company for the Group.
The use of merger accounting principles has resulted in a balance on Group capital and reserves 
that have been classified as a merger reserve and included in the Group’s shareholders’ funds. 
The consolidated financial statements include the results of the Company and all its subsidiary 
undertakings made up to the same accounting date.
(d) Share option reserve
The share option reserve arises from the requirement to value share options in existence at the 
year end at fair value.
19. Revenue
Revenue represents total value of invoices issued for goods and services rendered.
 
Proforma
2014 2013
RM RM
Software, maintenance services & consultancy 19,563,783 5,499,983
Hardware 19,058,110 2,786,120
Others - 1,108,649
38,621,893 9,394,752
     75
03 FINANCIAL STATEMENTS
20. Other operating income
Proforma
2014 2013
RM RM
Interest income from cash restricted in use 13,927 13,362
Other interest income 21,390 335,000
Tax refund 380,402 415,000
Reversal of impairment 109,679 -
Others 86,324 89,018
Negative goodwill (Note 24) - 2,055,505
611,722 2,907,885
     
21. Profit before taxation
Proforma
2014 2013
RM RM
Profit before taxation is arrived at after charging/
(crediting):-
Amortisation of intangible assets 1,027,328 677,481
Auditors' remuneration:
- current year 315,000 18,202
- under provision in prior year -     -
Depreciation of plant and equipment 128,952 29,476
Fair value loss on trade receivables          -    16,382
Bad debts written off 247,048    -
Impairment allowance on trade receivables 215,727 -
Directors' remuneration:
- Salary and other emolument 588,389 148,604
- Defined contribution plan 77,454   -
Interest expense on: 
- Revolving credit     - 9,078
- Others 80,705 32,923
Written off of tenancy deposit - 5,169
Written off of others receivables - 184,636
Rental of premises 501,141 265,335
Staff costs:
- salary and allowances 2,611,740 799,667
- defined contribution plan 197,093 119,275
Unrealised gain on foreign exchange 319,036 -
Gain on disposal of plant and equipment - (2,360) 76
03 FINANCIAL STATEMENTS
22. Taxes 
Components of tax expenses recognized in profit or loss include: 
 
Proforma
2014 2013
RM RM
Current tax expense: 
Current tax expense 1,510,183 347,117
Under/(overprovision) in the previous financial year 40,439 -
1,550,622 347,117
Deferred tax (income) expense:
Deferred tax (income) expense 392,181 3,038
Under/(overprovision) in the previous financial year -                     -
392,181 3,038
Total income tax expense 1,942,803 350,155
The charge for each period can be reconciled to the profit or loss per the consolidated statements 
of profit or loss as follows:
Proforma
2014 2013
RM RM
Profit before taxation 11,338,562 7,107,020
Tax at the applicable statutory local tax rate of 25% 2,834,641 1,776,755
Effects of: 
Tax effect on non-deductible expenses 147,953 4,387
Tax effect on IFRS adjustments not adjusted 52,421 (828,547)
Different tax rates in different countries (1,074,604) (602,440)
Deferred tax recognised during the year (17,608)
 1,942,803 350,155
   
A subsidiary, Galasys Solutions (MSC) Sdn. Bhd. was granted Multimedia Super Corridor (“MSC”) 
status by Malaysia government, and was accorded the Pioneer Status under Section 4A of the 
Promotion of Investments Act 1986, which provides for a 100% tax exemption on the statutory  77
03 FINANCIAL STATEMENTS
business income earned for a maximum period of five years. By virtue of this status, Galasys 
Solutions (MSC) Sdn. Bhd. will enjoy full exemption from income tax in its statutory income for 
pioneer activities.
A subsidiary of Galasys Group, Galasys Global (Suzhou) Co. Limited (“GGSZ”), was established 
in the Suzhou Province State as a foreign investment enterprise. Pursuant to the tax legislations 
applicable to foreign investment enterprises, it is entitled to full exemption from the PRC income 
tax for the two years commencing from their first profit-making year of operations and thereafter, 
is entitled to a 50% relief from the PRC income tax for the next three years, whereby the current 
statutory tax rate is 25%. GGSZ is in the third profit-making year and thus, enjoys a 50% relief from 
the PRC income tax for the current financial year.
23. Earnings per share 
The basic earnings per share is calculated by dividing the profit after tax attributable to owners by 
the weighted average number of ordinary shares in issue during the period. 
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary 
shares outstanding to assume conversion of all dilutive potential shares adjusted to reflect the 
conversion as mentioned above. 
Proforma
2014 2013
RM RM
Profit after tax attributable to owners 9,395,759 6,756,865
Weighted average number of shares 
Basic 59,488,835 52,696,456
Adjustment for:
Share options 27,521 -
Diluted 59,516,356 52,696,456
Earnings per share (sen) 
Basic 15.79 12.82
Diluted 15.79 12.82
    
     78
03 FINANCIAL STATEMENTS
24. Acquisition of a subsidiary, net of cash acquired 
On 27 December 2013, Galasys Holdings completed the acquisition of the 100 per cent equity 
interest in Galasys GL T . Pursuant to the acquisition, Galasys GL T became a wholly owned 
subsidiary of the Group. Galasys GL T was incorporated as a private limited company in Malaysia 
pursuant to the Companies Act 1965 on 6 February 2004. Galasys GL T is principally involved in 
production, supplying, distributing of kiosk and other computer related accessories and provide 
wide range of business communication solutions. 
The fair values of the identifiable assets and liabilities of Green Laser as at the date of acquisition 
were:
  
  
Pre-acquisition 
carrying amounts 
Recognised fair 
value adjustments
Values on 
acquisition
 RM  RM RM 
Property, plant and equipment     148,211 -     148,211 
Investment in quoted shares     112,674 -     112,674 
Inventories    1,422,027 -  1,422,027 
Trade Receivables    3,219,689 -  3,219,689 
Other receivables, deposits and prepayments    1,826,233 -  1,826,233 
Fixed deposits with licensed bank     463,362 -     463,362 
Cash and bank balances      393,909 -     393,909 
Trade Payables (259,153) - (259,153)
Other Payables and accruals     (170,742) -   (170,742)
Bank overdraft     (566,552) -   (566,552)
Short-term borrowing       (78,726) -     (78,726)
Provision for taxation   (1,490,878) - (1,490,878)
Deferred tax liabilities         (3,038) -       (3,038)
Long term borrowing    (253,616) -   (253,616)
Net identifiable assets and liabilities    4,763,400 -  4,763,400 
Goodwill on acquisition  (2,055,505)
Fair value of consideration transferred   2,707,895 
Galasys Holdings issued 16,511,566 new ordinary shares at par to acquire the equity interest in 
Galasys GL T .  79
03 FINANCIAL STATEMENTS
The effect of the acquisition on cash flow is as follows: 
  
RM
Net assets acquired   4,763,400 
Less: Non-cash consideration 
- Issuance of shares (2,707,895)
Negative goodwill   2,055,505 
Consideration settled in cash -
Less: Cash and cash equivalents of subsidiary acquired    (290,719)
Net cash inflow on acquisition      290,719 
The effective accounting acquisition date for Green Laser’s acquisition by Galasys Holdings was 
31 December 2013. Set out below is an extract of the aggregation of the results of Green Laser and 
the Galasys Group for the year ended 31 December 2013, which is included for illustrative purposes 
only.
2013 Proforma
Galasys Group RM’000 Green Laser RM’000 Total RM’000
Revenue 9,395 17,276 26,671
Operating Profit 5,093 3,409 8,502
Profit before tax 5,051 3,330 8,381
Profit after tax 4.701 2,514 7,215
The financial information for Green Laser has been extracted from that company’s audited 
financial statements for the year ended 31 December 2013. For the purposes of this illustration, 
negative goodwill on the acquisition of Green Laser has been excluded from operating profit and 
the profit after tax of the Galasys Group.
25. Related party disclosure
 
(a) Identities of related parties
 (i) The Company had related party relationships with its subsidiaries as disclosed in 
 Note 2.2;
 (ii) the directors who are the key management personnel; and
 (iii) entitles controlled by certain key management personnel and directors.
(b) The Group carried out the following transactions with related parties during the financial years:
 (i) Related parties 80
03 FINANCIAL STATEMENTS
Proforma
2014 2013
RM RM
Research and development costs paid to a related party - 952,883
Sales to related parties - 342,288
- 1,295,171
    
Research and development costs paid to Bejing Galasys Taike Software Technologies Co. Ltd 
(“Beijing Taike”) to develop Galasys Suzhou’s intellectual properties. Beijing Taike is owned by 
Li Zhan, who is the wife of Mr Teong Ming Chuah (the Executive Director), and Wang Guan, the 
director of Galasys Suzhou.
(ii) Key management personnel
Key management personnel consists of the directors of the group
 
Salaries and other short term
employee benefits
2014 2013
RM RM
Executive Directors 582,525 148,604
Non-Executive Directors 206,000 -
788,525 148,604
    
26. Share options 
The Company established a Share Option Plan upon its admission to AIM as part of the Group’s 
incentivisation and retention policy. The options may be granted to employees of the Company 
and: 
(a) any company which the Company owns 50% or more of the issued shares in; and 
(b) any company which the Company has an indirect interest in, provided that the shareholding 
held in each intermediate company between the Company and that company is more than 50 per 
cent of the issued shares (each a “Participating Company”).
 
New options over a total of 2,330,000 ordinary shares have been granted on its admission to 
employees with an exercise price of 22.5 pence each. The weighted fair value of the options 
granted was 12.6 pence per share.  81
03 FINANCIAL STATEMENTS
Details of the options outstanding at the year end are as follows: 
Number 
2014
Outstanding as at 1 January -
Granted on 12 May 2014 
(a) Exercise Period from 12 May 2018 to 12 May 2024 1,955,000
(b) Exercise Period from 12 May 2019 to 12 May 2024 375,000
Options outstanding at 31 December 2,330,000
A charge of RM173,000 (2013: RM Nil) has been made to the statement of comprehensive income 
for the year relating to these options. The charge was calculated using fair values determined using 
the Black Scholes option pricing model. The principal inputs into the model were as follows: 
• Stock price: 24.5 pence 
• Exercise price: 22.5 pence 
• Risk free rate: 2.82% 
• Volatility: 41.35% 
•Time to maturity: 10 years 
The expected volatility was determined by reference to similar entities trading on the AIM market.  
No expected dividends have been used in the option pricing model. 
The charge represents the total fair value of the share options spread over the vesting period.
27. Financial risk management
The Group’s activities are exposed to a variety of market risk (including foreign currency risk and 
interest risk), credit risk and liquidity risk. The Group’s overall financial risk management policy 
focuses on the unpredictability of financial markets and seeks to minimize potential adverse 
effects on the Group’s financial performance. 
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting 
in a loss to the Group. The Group has adopted a policy of only dealing with creditworthy 
counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the 
risk of financial loss from defaults. 
The Group performs ongoing credit evaluation of its counterparties’ financial condition and 
does not hold any collateral as security over its customers. The Galasys Group’s major classes of 
financial assets are cash and bank balances, trade receivables, prepayments and amounts due to 
a shareholder. 82
03 FINANCIAL STATEMENTS
As at the end of the financial year, the Group’s maximum exposure to credit risk is represented by 
the carrying amount of each class of financial assets recognised in the consolidated statements of 
financial position.
As at the end of the financial year, substantially all the cash and bank balances as detailed in 
Note 11 to the consolidated financial information are held in major financial institutions which 
are regulated and located in the PRC, which management believes are of high credit quality. The 
management does not expect any losses arising from non-performance by these counterparties.
 
As at 31 December 2014, the Company’s concentration on credit risk relates to its trade receivables 
which made up 58% of its total receivables (2013: 72%).
Cash is placed with established financial institutions.  The maximum exposure to credit risk is 
represented by the carrying amount of each financial asset in the consolidated statements of 
financial position.
The exposure of credit risk for trade receivables by geographical region is as follows:-
Proforma
2014 2013
RM RM
Malaysia 8,087,930 4,570,120
PRC 1,336,466 3,471,609
Hong Kong 1,530,868 1,083,456
Singapore - 243,694
10,955,264 9,368,879
    
Aging analysis
Galasys Group’s trade receivables that are not impaired are as follows: 
Proforma
2014 2013
RM RM
Current 6,241,554 3,282,166
31 – 60 days 2,644,812 3,044,832
61 – 90 days 44,045 376,961
More than 90 days 1,576,200 2,664,920
10,506,611 9,368,879 83
03 FINANCIAL STATEMENTS
Currency risk
The Group is exposed to foreign currency risk on transactions and balances that are denominated 
in currencies other than Ringgit Malaysia. The currencies giving rise to this risk are primarily 
Chinese Renminbi and Hong Kong Dollar. Foreign currency risk is monitored closely on an ongoing 
basis to ensure that the net exposure is at an acceptable level. 
Ringgit Malaysia Renminbi
Hong Kong
Dollar
United States 
Dollar GBP Total
RM RM RM RM RM RM
2014
Financial Assets
Trade receivables 8,087,930 1,336,466 1,530,868   -   - 10,955,264
Other receivables and deposits 2,995,801 3,229,646  -   - 52,557 6,278,004
Fixed deposits with licensed bank 477,289    -   -   - - 477,289
Cash and bank balances 4,934,207 2,465,409 99,507 192,796 4,047,498 11,739,417
16,495,227 7,031,521 1,630,375 192,796 4,100,055 29,449,974
      
 
Ringgit Malaysia Renminbi
Hong Kong
Dollar
United States 
Dollar GBP Total
RM RM RM RM RM RM
2014
Financial Liabilities
Trade payables 2,209,922 213,916 - - - 2,423,838
Other payables and  accruals 289,009 1,917,960 5,368 71,305 517,701 2,801,343
      
2,498,931 2,131,876 5,368 71,305 517,701 5,225,181
Net financial  assets/(liabilities) 13,996,296 4,899,644 1,625,007 121,491 3,582,354 24,224,793
Less: Net financial (assets)/liabilities 
denominated in the respective 
entities’ functional currencies (13,996,296) (4,899,644) (1,625,007) (121,491) (3,582,354) (24,224,793)
Currency Exposure - - - - - -
      
      
  84
03 FINANCIAL STATEMENTS
Currency risk - continued
Ringgit 
Malaysia Renminbi
Hong Kong 
Dollar
United States 
Dollar Total
RM RM RM RM RM
2013
Financial Assets
Trade receivables 5,897,270 2,329,988 1,141,621 - 9,368,879
Other receivables and deposits 1,831,233 443,758 - 901,210 3,176,201
Amount owing by related parties 62,288 283,970 - -  346,258
Cash and bank balances 775,496 399,832 - 525,495 1,700,823
Fixed deposits with licensed banks 463,362 - - - 463,362
9,029,649 3,457,548 1,141,621 1,426,705 15,055,523
      
Ringgit 
Malaysia Renminbi
Hong Kong 
dollar
United States 
Dollar Total
RM RM RM RM RM
2013
Financial Liabilities
Trade payables 465,873 67,039 - - 532,912
Other payables and  accruals 242,183 941,675 - 11,582 1,195,440
Amount owing to directors - 1,667 - -  1,667
Amount owing to related parties - 552,584 7,901 - 560,485
Term loan 167,687 - - - 167,687
Hire purchase payables 164,655 - - - 164,655
Bank overdrafts 566,552 - - - 566,552
RCPS - - - 1,173,564 1,173,564
1,606,950 1,562,965 7,901 1,185,146 4,362,962
Net financial  assets 7,422,699 1,894,583 1,133,720 241,559 10,692,561
Less: Net financial (assets) 
denominated in the respective 
entities’ functional currencies (7,422,699) (1,894,583) (7,901) (241,559) (9,566,742)
Currency Exposure - - 1,125,819 - 1,125,819
  85
03 FINANCIAL STATEMENTS
Currency risk sensitivity analysis 
As detailed above, the net exposure of the Group to changes in foreign currency is minimal.  
Therefore, a strengthening or weakening or the most significant foreign currencies of +/- 10% to 
which the Group is exposed (Chinese Renminbi and Hong Kong Dollar)  would not have a material 
impact on the Group’s results.  
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will 
fluctuate because of changes in market interest rates. The Group’s exposure to interest rate risk 
arises mainly from interest-bearing financial assets and liabilities. The Group’s policy is to obtain 
the most favourable interest rates available.  Any surplus funds of the Group will be placed with 
licensed financial institutions to generate interest income. 
The Group has interest rate risk with the banks for banking facilities as set out in Note 14, 15 and 20 
respectively. 
Liquidity risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group 
will encounter difficulty in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its 
liabilities when they become due. The principal liabilities of the Galasys Group arise in respect of 
the on-going research and development programs, trade and other payables. Trade and other 
payables are all payable within 12 months.
The Board receives cash flow projections on a regular basis as well as information on cash 
balances.
Derivatives, financial instruments and risk management
The Group does not use derivative instruments or other financial instruments to manage its 
exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices.
Capital risk management
The Group manages its capital to ensure that entities within the Group will be able to maintain 
an optimal capital structure so as to support their businesses and maximise shareholder(s) value. 
To achieve this objective, the Group may make adjustments to the capital structure in view of 
changes in economic conditions, such as adjusting the amount of dividend payment, returning of 
capital to shareholders or issuing new shares.
The Group manages its capital based on debt-to-equity ratio that complies with debt covenants 
and regulatory, if any. The debt-to-equity ratio is calculated as total borrowings from financial 
institutions divided by total equity. 
There was no change in the Group’s approach to capital management during the financial year. 86
03 FINANCIAL STATEMENTS
The debt-to-equity ratio of the Group at the end of the reporting period was as follows:-
Proforma
2014 2013
RM RM
Total debts
Bank overdrafts 418,805 566,552
Revolving credit - -
Term loan 131,050 167,687
Hire purchase payables 134,995 164,655
RCPS - 1,173,564
684,850 2,072,458
Less: Cash and cash equivalents            (11,739,417) (1,700,823)
Less: Fixed deposits with licensed banks (477,289) (463,362)
Net debt - - 
Total equity 38,637,505 16,473,949
Debt-to-equity ratio                 - -
   87
03 FINANCIAL STATEMENTS
27.1 Classification of financial instruments
Proforma
2014 2013
RM RM
Financial Assets
Available-for-sale financial asset
Quoted investments - 112,674
         -           112,674
Loans and receivables financial assets 
Trade receivables and others receivables 17,689,133        12,672,204
Amount owing by related parties        -            346,258
Fixed deposits with licensed banks 477,289          463,362
Cash and bank balances 11,739,417           1,700,823
  29,905,839        15,182,647
Financial Liabilities
Financial liabilities at amortised cost
RCPS -          1,173,564
Hire purchase payables 134,995           164,655
Term loans 131,050           167,687
Revolving credit -         -
Trade payables and others payables 7,081,420          1,728,352
Amount owing to related parties -            560,485
Amount owing to directors -                1,667
Bank overdrafts -            566,552
7,347,465 4,362,962
 
28. Fair value of financial instruments
The carrying amount of the financial assets and financial liabilities in the financial 
statements approximate their fair values due to the relative short-term maturity of these 
financial instruments. The fair values of other classes of financial assets and liabilities are 
disclosed in the respective notes to the financial information.
The fair values of financial assets and financial liabilities are determined as follows:
(i) the fair value of financial assets and financial liabilities with standard terms and conditions 
and trade on active liquid markets are determined with reference to quoted market prices;
(ii) the fair value of other financial assets and financial liabilities (excluding derivative 
instruments) are determined in accordance with generally accepted pricing models based on  88
03 FINANCIAL STATEMENTS
discounted cash flow; and
(iii) the fair value of derivative instruments are calculated using quoted prices. Where such prices 
are not available, discounted cash flow analysis is used, based on the applicable yield curve of the 
duration of the instruments for non-optional derivatives, and option pricing models for optional 
derivatives.
29. Segment Information
IFRS 8 requires operating segments to be identified on the basis of internal reports about 
components of the Group that are regularly reviewed by the chief operating decision maker, as 
defined in IFRS 8, in order to allocate resources to the segment and to assess its performance.
All other segments primarily comprise income and expenses relating to the Group’s administrative 
functions. Interest income and interest expense are not allocated to segments, as this type of 
activity is driven by the central treasury function which manages the cash position of the Group. 
Accordingly, this information is not separately reported to the Board for each reportable segment.
Operating segments are prepared in a manner consistent with the internal reporting provided 
to the Executive Directors as its chief operating decision maker in order to allocate resources to 
segments and to assess their performance. For management purposes, the Group is organised 
into business units based on business and geographical segments. 
Unallocated item comprise mainly related loans and borrowings and related expenses, corporate 
assets, office expenses, tax assets and liabilities. 
Business segments
The Group’s primary format for reporting segment information is business segments, with each 
segment representing a product category. 
The Group comprises the following main segments:
 
(1) Software - The provision of internal developed software.
(2) Hardware - Retailing activities of hardware.
(3) Maintenance services and consultancy - 
Provision of maintenance services and consultancy to theme park operator.
(4) Others - Dealer and agent services.
Geographical segments
The professional services and sales segment of the Group operated in the PRC, Singapore and 
Hong Kong which apart from its home country, Malaysia.
In presenting information on the basis of geographical segments, segment revenue is based on the 
geographical location of customers. 
Segments assets and capital expenditure are based on geographical location of the assets.  89
03 FINANCIAL STATEMENTS
Segments Information for Financial year ended 31 December 2014
(a) Business segments
The segment information provided to management for the reportable segments for the year ended 
31 December 2014 is as follows:
       Software, 
Maintenance 
Services and 
Consultancy
   
Hardware Others
 
Group
     RM   RM RM RM
Revenue 19,563,783 19,058,110 38,621,893
Results 19,522,872
Unallocated corporate expenses (8,715,327)
Other income 611,722
Finance costs (80,705)
Income tax expense (1,942,803)
Profit after taxation for the year 9,395,759
Other information
Segment assets * 46,195,864 - - 46,195,864
Segment liabilities 7,649,002 - - 7,649,002
Capital expenditure 4,886,110 - 4,886,110
Depreciation and amortisation 1,279,836 - - 1,279,836
    
The top customer which contributed more than 10% of the revenue for the Group:
Name Amount RM Percentage
Customer A 4,780,450 12%
(b) Geographical segments
Revenues from the highest geographical segment represent approximately 62% of the Group’s 
revenues.      90
03 FINANCIAL STATEMENTS
The segment information provided to management for the reportable segments for the year ended 
31 December 2014 is as follows:
       PRC   Malaysia BVI   Hong Kong UK Group
     RM   RM   RM RM RM RM
Revenue          12,505,034           23,766,563                   -   2,350,296 - 38,621,893
Segmental assets          21,455,810 18,721,193       4,192,903 1,630,375      195,583 46,195,864
Capital expenditure 2,726,988 2,053,451 - - 105,671 4,886,110
Segmental liabilities 2,671,860 4,313,388 71,305 74,748 517,701 7,649,002
Segments Information for Financial year ended 31 December 2013
(a) Business segments
The segment information provided to management for the reportable segments for the    
year ended 31 December 2013 is as follows:
       
Software
   
Hardware
  Maintenance  
Services and 
Consultancy Others
Galasys  
Group
     RM   RM   RM RM RM
Revenue 4,752,938 2,786,120 747,045 1,108,649 9,394,752
Results 6,481,314
Unallocated corporate expenses (2,240,178)
Other income 2,907,885
Finance costs (42,001)
Income tax expense (350,155)
Profit after taxation for the year 6,756,865
Other information
Segment assets 22,330,827 - - - 22,330,827
Segment liabilities 5,856,878 - - - 5,856,878
Capital expenditure 2,363,366 - - - 2,363,366
Depreciation and amortisation 706,957 - - - 706,957
      91
03 FINANCIAL STATEMENTS
(b) Geographical segments
Revenues from the highest geographical segment represent approximately 78% of the   
Group’s revenues.     
The segment information provided to management for the reportable segments for the year ended 
31 December 2013 is as follows:
       PRC   Malaysia   Singapore Hong Kong Galasys  Group
     RM   RM   RM RM RM
Revenue 7,367,559 1,483,499 243,694 300,000 9,394,752
Segmental assets 8,649,886 13,680,941 - - 22,330,827
Capital expenditure 1,796,605 566,761 - - 2,363,366
     
     
30. Subsequent event
Acquisition of a subsidiary
On 5 January 2015, the Company’s wholly owned subsidiary, Galasys Holdings acquired 100% 
equity interest in I Logic Solutions Sdn Bhd (“iLogic”), for a total consideration that is based on the 
aggregate of multiple of its audited profit after tax for each of the financial years 2014, 2015 and 
2016 with a maximum amount payable of RM7,000,000 (the “Consideration”). iLogic is a private 
limited company incorporated in Malaysia with principal activities of providing consultancy, system 
study and design, implementation and training of leisure and entertainment software solutions in 
Malaysia. Upon the acquisition, iLogic became a wholly owned subsidiary of the Group.  92
03 FINANCIAL STATEMENTS
The provisional fair values of the identifiable assets and liabilities of iLogic as at the date of 
acquisition were:-
Pre-acquisition 
carrying amounts
Fair value
adjustments
Recognised values
on acquisition
        RM RM RM
Property, plant and equipment 297,440 - 297,440
Trade receivables 693,932 - 693,932
Other receivables, deposits and prepayments 26,855 - 26,855
Cash and bank balances 145,424 - 145,424
Trade payables (119,101) (119,101)
Other payables and accruals (15,053) - (15,053)
Net identifiable assets and liabilities 1,029,497 - 1,029,497
Goodwill on acquisition 5,970,503
Fair value of consideration transferred 7,000,000
    
The Consideration is to be satisfied by way of: 
(a) Earn-out payment based on financial year 2014 in cash payable upon closing of the acquisition. 
An initial deposit of RM200,000 was paid as part of the fulfilment of purchase consideration; and
(b) 50% earn-out payment based on the financial year 2015 and 2016 payable in cash and 
remaining 50% in the form of new shares of the Company.   
The effect of the acquisition on cash flows is as follows:-
RM
Fair value of the consideration transferred 1,029,497
Less: Consideration settled in cash            (7,000,000)    
Goodwill 5,970,503
Consideration settled in cash 7,000,000
Less: Cash and cash equivalents of iLogic acquired (145,424)
Net cash outflow on acquisition 6,854,576
  93 94 95 96