(Hong Kong – 24 November 2020) The leading cybersecurity company in Hong Kong, Edvance International Holdings Limited (“Edvance International” or the “Company”, together with the Company’s subsidiaries, collectively the “Group”) (SEHK stock code: 01410.HK), is pleased to announce its interim results for the six months ended 30 September 2020 (the “Period”). The financial and business highlights are as follows:
- During the Period, the Group recorded a total revenue of approximately HK$200.5 million, increased by about 3.9% or HK$7.5 million year-on-year. The increase was driven by high demand in cybersecurity product and services, primarily attributable to the continuing need for virtualization and remote collaboration, catalyzed by COVID-19 during FY2021 1H
- Gross profit reached approximately HK$56.3 million, an increase of about 5.2% over the same period last year; gross profit margin remained stable at 28.1%, edged up 0.4% over the same period last year
- Profit attributable to owners of the company was approximately HK$15.0 million, up 44.2% substantially as compared to the same period of previous year
- Net cash generated (used in) from operating activities was improved significantly from an outflow of HK$3.04 million last year to an inflow of HK$37.12 million
Business keeps growing amidst adversity while self-developed email security brand performs steadily
Despite the adverse impact of the COVID-19 pandemic on social and economic activities which resulted in a challenging operating environment, the revenue of Group’s core business still recorded a steady growth in the first half of the fiscal year 2021. During the period, virtualization and the implementation of flexible remote work modes have created strong demand for the cybersecurity market. The Group captured the opportunity to come into distribution relationship with two additional products, Blackberry Security and NeuVector, to strengthen its solution portfolio offering in remote business operation and DevSecOps (development, security and operations) respectively.
The Group’s self-developed email security brand “Green Radar” has also witnessed a growing success. Green Radar offers advanced cybersecurity services at affordable cost which is a practical option to the small and medium enterprises as well as major telecom providers who need to provide email security services to their users. The Group observed increased onboarding of Green Radar services, either by direct purchase or reseller partners referral. In response to the future market demand or continuous growth, the Group has opened a new dedicated office for Green Radar and security operation center (SOC) in Hong Kong during the period, deploying new technologies and expertise to improve the efficiency. This complements the SOC established in Singapore and extend our coverage of services across Asia.
Ride on technological edges to tap into the financial technology industry. Actively promote business diversification
With the steady development of its main business, the Group actively deploys resources to foster diversified and innovative business model, expanding its business into the areas of financial services, financial technology (“Fintech”) and media community platform. The Group has established Axion Global Investment Limited (“Axion Global”) as its investment and incubation arm, while announced the acquisition of Royston Financial Group Limited (“Royston Financial”) in August with an aim to expand its financial services portfolio. The Group can carry out investment holdings and financial sectors services, and take this opportunity to explore more influential and potential partnerships via Axion Global and Royston Financial.
During the Period, the Group initiated the first investment project in Fintech through Axion Global and announced to sign a MOU (“Memorandum of Understanding”) with Hong Kong Digital Asset Ex Limited (“HKbitEX”), a leading regulated virtual asset platform in Hong Kong with tremendous growth potential. HKbitEX is applying for a virtual asset trading platform license from Hong Kong’s Securities and Futures Commission (“SFC”).
Mr. Raymond Liu, Chairman and Group CEO of Edvance International commented, “Although the current market environment remains challenging, technology application and transformation of work approach to mobility will still become a market trend, which are beneficial to the continuous growth of the Group’s core business, namely cybersecurity products and services. The investment strategy adopted in the first half of the year successfully diversified the Group’s business. With Axion Global as our investment and incubation project department, coupled with the technology knowhow accumulated throughout the years, as well as the acquisition of the “Wepro 180” media and community platform after the reporting period, the Group’s eco-system in the technology investment has begun to take shape.”
Looking forward, Mr. Liu added, “Leveraging on these resources, the Group will be able to tap into more technology areas with growth potential, such as Fintech sector. As virtual asset trading platforms will be regulated soon, it is expected that it will bring revolutionary changes to the local financial and financing market ecology, while creating huge business opportunities. I have full confidence in the investment prospects of HKbitEX. In the future, the Group will continue to consolidate its core business, utilize its own advantages to promote business diversification and explore more business opportunities, in order to bring sustainable returns to our shareholders in the long term.”