Edvance International Achieves Another Record Revenue of HK$625 Million in FY2024

(Hong Kong – 24 June 2024) 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 2024 (“FY2024”).

The key financial and business highlights are as follows:

• Revenue reached an all-time high and increased by approximately 8.3% to HK$625.4 million YOY. The growth was attributed to the continuous strong demand for core cybersecurity products and cybersecurity services related businesses.
• Gross profit slightly decreased by approximately HK$0.3 million to approximately HK$137.0 million YOY, while the gross profit margin slightly decreased 1.9% to 21.9% in FY2024.
• The profit attributable to owners of the Company was approximately HK$29.7 million in FY2024 whereas the loss attributable to owners of the Company of approximately HK$27.5 million was incurred in financial year ended 31 March 2023 (“FY2023”). The turnaround from net loss to net profit was mainly attributable to the fair value gain on financial assets at fair value through profit and loss (“FVTPL”) of approximately HK$32.4 million in relation to the unlisted investment of holding company of HKbitEX (FY2023: fair value loss on financial assets at FVTPL of this investment of approximately HK$24.8 million).

Expansion of Cybersecurity Solutions Product Portfolio with Chinese Vendors and Launched New Cybersecurity-as-a-service Offering

FY2024 was another record year for our company with revenue reaching an all-time high which our cybersecurity services business accounted for over 50% of the Group’s revenue and is the key growth driver for the Group. While we are proud of these achievements, we expanded our cybersecurity solutions product portfolio with Chinese vendors to meet the emerging need in the market for a more cost-effective and localised solution that addresses our customers’ challenges of adapting to new cyber threats and growing compliance requirements.

Building on the success of the grMail subscription service, we expanded and launched new cybersecurity as a service offering in grShield, a managed endpoint detection and response service, and grKey, a managed privileged access management service. The enhanced suite of offerings will enable companies to adopt essential cybersecurity solutions quickly without having to make significant initial capital outlays and maintain a team of in-house cybersecurity experts. It has become synonymous with cost-effective and reliable cybersecurity-as-a-service solution that has enabled us to aggressively pursue a channel partnership-centric distribution model and reduce our sales cost and lead time.

Reduce Exposure to Digital Financial Services and Investment Business

With the limited adoption of security tokens in the capital financing market in Hong Kong in the foreseeable future, our aspirations to grow a digital asset management firm would require substantially more investment in time and resources than anticipated. Hence, with the rebound in market sentiment, we reduced our exposure to the digital assets financial services and investment business by completing the sale of our fully licensed 60% owned subsidiary, Axion Global Asset Management Limited in April 2024 and freeing up capital for internal uses and new investment opportunities.

Mr. Raymond Liu, Chairman and Group CEO of Edvance International, commented, “The long-term secular tailwinds for the cybersecurity industry remain firmly intact, as supported by the ongoing digital transformation, adoption of cloud technologies and the advent of new technologies, such as artificial intelligence, making it cheaper than ever for fraudsters to launch innovative cyberattacks. Our management team is focused on strengthening our competitive position, improving our operational agility, and delivering greater customer value.  We are confident that, thanks to our solid business foundation and robust strategy, the Company is well-positioned for the future.”

Read the full Annual Report 2023/24 HERE.