(Hong Kong – 22 June 2021) The innovative technology 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: 1410.HK), is pleased to announce its annual results for the year ended 31 March 2021 (“FY2021” or the “Year”).
The key financial and business highlights are as follows:
- Revenue increased by about 4.1% or HK$16.2 million to approximately HK$410.5 million YoY
- Gross profit reached approximately HK$124.0 million, an increase of about 18.3% YoY; gross profit margin remained stable at 30.2%, edged up 3.6% YoY
- Profit attributable to owners of the Company was approximately HK$34.7 million, up 48.8% YoY, the increase was primary driven by increased demand for cybersecurity solutions and improved operational optimisation
- The Board recommends the payment of a final dividend of HK$0.01 per share for FY2021 (FY2020: HK$0.01 per share)
Resilient Growth in Core Businesses, Laying Foundation for Future Growth
The Group’s core business showed strong resilience and growth for FY2021, recording an increase in cybersecurity businesses revenue of approximately 4.1% year-on-year on the back of increasing demand for cybersecurity solutions and improved operational optimisation. With disciplined cost expenditure coupled with a higher profit margin of the cybersecurity services business, it led to an increase in net profit of approximately 48.8% for the Year. With the steady growth in core businesses, the Group continued to make several strategic investments during the Year to ensure its long-term success. The Group further boosted the development in cybersecurity service business, and financial services and investment business.
Accelerate Cybersecurity Solutions Adoption
Looking forward, the Group sees ample runway for the cybersecurity businesses. Riding on our extensive network of global solution providers and partners, and applying the success with Green Radar (Hong Kong) Limited in delivering email security protection via a security-as-a-service approach, the Group intends to capitalize on this model for its subsidiary of cybersecurity services business unit – ESH (Hong Kong) Limited (“ESH”). The investment made in the two security operations centers in Hong Kong and Singapore is scalable to support ESH with a managed detection and response setup that underpins the security-as-a-service approach.
Digital Asset Ecosystem Taking Shape
The Group’s three-pronged approach of venture investment, asset management, and innovation is enabling the Group to capture value for its shareholders. As for venture investment, the long-term investment in the holding company of Hong Kong Digital Asset Ex Limited (“HKbitEX“), a leading digital asset exchange, provided the Group with a leading view on the development of digital asset ecosystem, and it has set the tone for similar investments in the future. Regarding asset management, the Group’s subsidiary – Axion Global Asset Management Limited has notified the Securities and Futures Commission in Hong Kong of its intention to manage funds that specialise in virtual assets and the Group is optimistic to launch virtual asset funds in FY2022.
Respecting innovation, as a demonstration of its commitment to R&D, the Group’s in-house research and development division – Axion Global Innovation Centre Limited has relocated to a new office at the FinTech Centre of the Hong Kong Science and Technology Parks Corporation, taking advantage of the network and expertise to create disruptive fintech services. Among the existing innovation projects, DocuRoom, a next generation secured virtual document portal for the virtual asset market, has started the internal trial run and is expected to launch in the second half of the calendar year 2021.
Mr. Raymond Liu, Chairman and Group CEO of Edvance International commented, “We are optimistic about the business outlook for FY2022 as the underlying digitisation trends continue unabated. The strategic moves that we made in FY2021 has laid the foundation for the continued growth of our key businesses. We believe our strengthened R&D capability would create synergy among all business lines, fortify our existing leadership position in cybersecurity and pave the way to capture returns that our fintech and digital asset management businesses could bring to the Group and our shareholders in the future.”