Expert Systems (8319.HK) Q2FY24 Interim Results Announcement

Expert Systems (8319.HK) Q2FY24 Interim Results Announcement


Expert Systems Announces Q2FY24 Revenue Surge Approximately 26%
* * * *
Strong Demand for IT Infrastructure Solutions and Management Services

(10 November 2023, Hong Kong) — Expert Systems Holdings Limited (“Expert Systems” or the “Group”; Stock code: 8319), a leading technology and innovation company in the Asia Pacific region, today announced the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 September 2023 (the “Reporting Period”).

During the Reporting Period, the Group recorded a notable increase of 25.7% in revenue to approximately HK$ 517.6 million, which was primarily driven by the increasing demand for both IT infrastructure solutions and IT infrastructure management services. Gross profit during the Reporting Period amounted to approximately HK$75.4 million, representing a growth of 12.3%. The adjusted profit after tax* for the Reporting Period of the Company has remained stable at approximately HK$8.5 million (1HFY23: HK$8.4 million).

Mr. Andy Lau, CEO and Executive Director of Expert Systems, said: “We are delighted to announce that Expert Systems has achieved robust performance in the first half of 2023, showcasing the resilience and strength of our business model. The solid foundation and steady growth in our topline reflects the ever-increasing market demand for our products and services. Our core businesses, IT infrastructure solutions and IT infrastructure management services, have demonstrated exceptional performance, setting the stage for future expansion.

Furthermore, we are thrilled to share the exciting news of our collaboration with Lenovo Hong Kong in advancing Artificial Intelligence (“AI”) education. We firmly believe that our AI segment holds immense potential for generating substantial returns for our shareholders in the long term. To that end, we will continue to work closely together to develop advanced and competitive AI-related education products and courses, nurturing a new generation of outstanding AI talents.”

Business Review
The Group operates through three distinct brands: “Expert Systems”, which provides IT infrastructure solutions; “ServiceOne”, which offers IT infrastructure management services; and “Expert AI Enabling” (“EAI”), which focuses on developing innovative AI products, solutions and services.

IT Infrastructure Solutions
During the Reporting Period, to capitalise on market opportunities, Expert Systems continued to strengthen strategic relationship with suppliers while enhancing specialised technical expertise and domain know-how on the latest and proven infrastructure solutions to deliver larger-scale projects. The Group also strived to develop a more diversified customer base across private and public sectors.

To capture the growing demand, Expert Systems’ long-term plan includes a strong emphasis on 1) Hybrid Cloud, Multi-Cloud & “as-a-Service”, 2) Cyber Security, and 3) Data & Application Solutions. These areas of focus enable the Group to provide higher-value, more comprehensive total solutions to its customers as they navigate their digital transformation journeys.

IT Infrastructure Management Services
The Group’s IT infrastructure management services business foresees sustained demand across the Asia-Pacific region. This includes IT outsourcing, helpdesk support, workflow automation services, and IT hardware maintenance. The expansion in Kuala Lumpur last year strengthens geographical resources, ensuring resilience amidst global economic uncertainties. The Group remains committed to exceptional services, meeting evolving IT needs, and exploring merger and acquisition opportunities for sustainable growth.

ServiceOne aims to expand its customer base in the Asia-Pacific region, targeting new industries. To achieve this, it has expanded its service portfolio to include consulting and vertical retail solutions. Additionally, 10 new branches have been established in key cities in mainland China this year, including Nanjing, Shenzhen, and Wuxi. .

AI Business
During the Reporting Period, the Group remained dedicated to the development and provision of products, solutions, and services that empower customers to leverage the power of AI across various business sectors and enterprises. With the market witnessing robust demand for AI, the Group firmly believes that its AI offerings will enrich its comprehensive IT solutions portfolio and align with Expert Systems’ growth strategy.

Capitalizing on this trend, the Group announced the establishment of a cooperative plan with Lenovo Hong Kong, wherein it will serve as a key partner in an AI education initiative. The Group aims to launch a series of AI laboratory equipment and related courses specifically designed for primary and secondary schools, and deliver enhanced value to its clients and further solidify its position in the industry.

Mr. Andy Lau, CEO and Executive Director of Expert Systems, concluded: “Moving forward, Expert System’s dedication to our core businesses remains unwavering as we strive to deliver innovative and integrated products, solutions, and services to both private and public sectors throughout the Asia-Pacific region. We have taken significant steps to strengthen the Group, ensuring resilience in navigating the evolving business landscape as the local and global economy gradually recovers. Given the ‘new normal’ business environment, we will maintain a cautious approach in managing business risks. We are well-prepared to tackle the challenges presented by the ever-changing economic and business landscape.”

Read the announcement of the detailed results here:

*Adjusted net profit after tax represents net profit after tax for the period excluding government grants received during the period of approx. HK$0.2 million (six months ending 30 September 2022: approx. HK$4.7 million).

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