Expert Systems’ FY23 Revenue and Net Profit Surge Around 30%
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Solid Performance Bolstered by IT Infrastructure Management Services’ Demand
Recommended Final Dividend of HK1.00 Cent per Share
(21 June 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 audited annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 March 2023 (the “Reporting Year”).
During the Reporting Year, the Group’s revenue increased notably by 30.0% to approximately HK$886.5 million, which was primarily driven by the net effect of increased demand from customers and additional contribution from the IT infrastructure management services. Gross profit amounted to approximately HK$139.3million for the Reporting Year, representing a significant increase of 32.8%. Profit for the year of the Company surged by 34.5% to approximately HK$22.7million for the Reporting Year.
The Board recommends a final dividend of HK1.00 cent (FY2022: HK0.77 cent) per ordinary share, resulting in a dividend payout ratio of 40.88%. The payment of the final dividend is subject to the approval of the shareholders at the forthcoming annual general meeting (the “AGM”).
Mr. Andy Lau, CEO and Executive Director of Expert Systems, said: “We are pleased to announce that Expert Systems has delivered a satisfactory performance in FY2023, which is a testament to the resilience and strength of the company’s business model. Our revenue and net profit have recorded satisfactory increases, indicating a healthy growth trend. Also, our two core businesses, namely IT infrastructure solutions and IT infrastructure management services, have exhibited strong performance, reflecting a solid foundation for further development. Furthermore, we believe that the recent addition of our AI segment has the potential to generate significant returns for our shareholders in the future. We remain optimistic about the opportunities that this new addition presents, and we are committed to maximizing its potential through continued investment and strategic planning.”
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 Year, the IT infrastructure solutions segment was driven by the ongoing trend of digital transformation among enterprises and institutions, which seeks to enhance operational efficiency, optimize data utilization for business analytics and decision-making, and create new digital business models through online channels.
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
During the Reporting Year, the IT infrastructure management services business of the Group set up the second service desk centre in Kuala Lumpur, Malaysia, strengthens its resources geographically and ensures resilience in serving customers amid the uncertain global economy. The Group anticipates a growing market demand for high-quality IT infrastructure management services across the Asia-Pacific region, including IT outsourcing, helpdesk, workflow automation, and hardware maintenance.
Expert Systems is committed to exploring new business opportunities – it aims to expand its customer base by targeting new industries across the Asia-Pacific region, while also creating additional value for its existing customers. To achieve such goals, the Group has expanded its services portfolio to include consulting services and vertical retail solutions, to better meet the evolving needs of its customers and provide them with a more comprehensive suite of services.
During the Reporting Year, Expert Systems established EAI – a joint venture with Dr. Keith Chan, a former Professor of Computing Science, which focuses on developing innovative products, solutions and services that help schools, enterprises, and government organizations effectively leverage AI in their operations. In view of the growing demand for AI, EAI specialises in machine learning, data analytics, image and speech processing, and natural language processing (NLP) and more. With its newly-opened R&D lab, one of the current developing products by EAI is based on NLP technology to provide ChatGPT-like experience for enterprises and institutions.
Mr. Andy Lau, CEO and Executive Director of Expert Systems, concluded: “Looking forward, we remain committed to our core businesses in providing innovative and integrated products, solutions and services to both private and public sectors across the Asia-Pacific region. With the pandemic subsiding and economic activities resuming normal, we are confident in the future development of the Group and aim to capitalize on emerging opportunities in the market. We strive to remain at the forefront of innovation in the IT industry, providing cutting-edge products, solutions and services that enable its customers to achieve their business goals and optimize their operations.”
Read the announcement of the detailed results here: https://www.expertsystems.com.hk/wp-content/uploads/2023/06/420230626-AnnualReport2023.pdf
- Revenue for the year ended 31 March 2023 (the “Reporting Year” or “FY2023”) increased by approximately 30.0% from that for the year ended 31 March 2022 (the “Corresponding Year” or “FY2022”) to approximately HK$886.5 million.
- Gross profit for the Reporting Year increased by approximately 32.8% from the Corresponding Year to approximately HK$139.3 million.
- Profit for the year attributable to owners of the Company for the Reporting Year increased by approximately 29.1% to approximately HK$19.7 million as compared to the Corresponding Year.
- Basic earnings per share increased by approximately 28.9% from approximately HK1.90 cents for the Corresponding Year to approximately HK2.45 cents for the Reporting Year.