Edvance International Achieves Record Revenue of HK$577 Million in FY2023
Cybersecurity business proving resilient despite challenging market conditions
(Hong Kong – 21 June 2023) Edvance International Holdings Limited (“Edvance International” or the “Company”, together with the Company’s subsidiaries, collectively the “Group”) (SEHK stock code: 1410.HK), a technology and investment holdings company in Hong Kong, is pleased to announce its annual results for the year ended 31 March 2023 (the “Year” or “FY2023”).
The key financial and business highlights are as follows:
- Revenue increased by approximately 9.9% to HK$577.5 million YOY. The growth was attributed to the strong demand for core cybersecurity products and services across different client sectors, especially in the financial services industry (FSI) and government.
- The core cybersecurity business maintained a stable gross profit margin of around 23.8%, with overall gross profit amounting to approximately HK$137.3 million, up 6.9% YoY.
- The Group recorded a loss attributable to owners of the Company of approximately HK$27.5 million (FY2022: net profit of approximately HK$22.8 million) because of the fair value loss on FVTPL of approximately HK$24.8 million in relation to the unlisted investment of holding company of HKbitEX and an increase in administrative expenses.
- For illustration purpose, after excluding (i) the impact of the fair value changes on financial assets at fair value through profit or loss, (ii) one-off impacts of impairment of intangible assets, and property and equipment, and net gain on disposal of property and equipment in FY2023, the Group recorded a net profit of approximately HK$4.7 million during the Year.
Robust market demand fuels record-breaking revenue in the cybersecurity business
As the market landscape for cybersecurity is evolving rapidly, the Company is committed to providing relevant products and services that meet the clients’ changing needs. The Group expanded its offerings to more Chinese branded products such as Tianji Partners(天際友盟), Sangfor(深信服), and Venustech(啟明星辰) in response to the growing demand for mainland cybersecurity products, primarily driven by their localised features and competitive pricing. At the same time, the increased adoption of cloud-based security solutions has become a key driver and has helped the shift of our cybersecurity services business to a recurring revenue model and to reflect our expertise and know-how in project implement and servicing.
In addition, the Green Radar business recorded strong year-on-year revenue growth. Our established channel partners network in Hong Kong has helped to shorten the sales cycle and facilitated our clients to adopt grMail, the flagship product in the Green Radar suite of solutions. Our newly launched cybersecurity awareness assessment and training service, grAssessment, has been positively received by enterprises and has quickly become a significant revenue contributor to the Green Radar business.
New regulations unleashing opportunities for the digital assets financial services business
With the rollout of the Virtual Asset Service Provider licensing regime and initiatives by the government for Hong Kong to become a leading global digital asset hub, the Group believes its subsidiary, Axion Global Asset Management Limited (“AGAM”), a licensed digital asset management company, would benefit significantly from increased investor confidence and market interests in digital assets. The Group is developing our portfolio management systems and establishing distribution partnerships to help investors to access this emerging asset class.
Mr. Raymond Liu, Chairman and Group CEO of Edvance International, commented, “The macro environment continues to be very dynamic. Nevertheless, our strong sales pipeline reflects a robust demand for cybersecurity products and services, suggesting that guarding against cyber threats remains mission critical and top of mind for enterprises.”
“On the digital asset front, the Group believes the enhanced regulatory environment would benefit AGAM and other ecosystem players, and set the stage for the broader digital asset adoption.” Mr. Liu added.