Business set for growth on strong cybersecurity demand
(Hong Kong – 24 November 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 interim results for the six months ended 30 September 2023 (“FY2024 1H” or the “Period”).
The key financial and business highlights are as follows:
- Revenue reached HK$290.7 million in the first half of the year. Compared to FY2023 1H, revenue marginally reduced by 3.4% or approximately HK$10.2 million
- Gross profit margin remained broadly stable at 23.6% in FY2024 1H
- The net loss after tax attributable to owners of the Company (“Net Loss”) improved by around 64.1% to approximately HK$6.6 million, mainly due to the lapping effect of the one-time fair value loss on investments recorded over the same period in FY2023
Demand in the cybersecurity business continues to be robust
Despite the weakening macroeconomic environment in 1H, the Group continues to see strong demand for cybersecurity products and services business. Client billings were up year over year, although revenue marginally reduced by 3.4%. Most of our revenue was earned on a subscription basis, making the Company’s business more robust and less prone to fluctuations in demand. The Group also benefited from expanding its product portfolio with China technologies. Our product mix is more diversified than ever to serve the market’s evolving needs.
The Green Radar business continued to gain traction in the market. The number of emails protected by our grMail email security solution more than doubled versus the same period last year. We are also very excited about launching the grKey solution to help businesses protect and securely control access to core enterprise systems and resources. At the same time, we are actively building strategic alliances in each of the leading ASEAN markets locally for the Green Radar brand.
Mr. Raymond Liu, Chairman and Group CEO of Edvance International, commented, “We believe the long-term trend of cybersecurity being a fast-growing industry will continue, supported by growing addressable markets in the Asia Pacific, the rapid adoption of cloud platforms and new cyber threats arising from the use of emerging technologies such as AI. We will continue to focus on executing our corporate strategy of growing our subscription revenue model, providing cost-competitive solutions under the Green Radar brand, and serving our clients with excellence. Together with the investments made over the last couple of years across both the cybersecurity and digital asset domains, we are optimistic about the growth prospects for the Group.”