Expert Systems Announces FY25 Annual Results
Sustained Investment in Future Growth
Demonstrating Outstanding Operational Resilience
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(24 June 2025, Hong Kong) Expert Systems Holdings Limited (“Expert Systems” or the “Group”; Stock Code: 8319), a leading information technology and innovation company in the Asia-Pacific region, has announced the audited annual results of the Company and its subsidiaries for the year ended 31 March 2025 (the “Reporting Year”). During the Reporting Year, the Group steadily increased its gross profit margin by optimizing its product mix and cost management, demonstrating operational resilience. It also deepened research and development, increased investment in technology and innovation, and accelerated product upgrades, thus consolidating its long-term competitive advantages.
During the Reporting Year, the Group recorded revenue of approximately HK$900.7 million. Gross profit was HK$150.7 million, and profit for the year was HK$14.8 million. Despite market pressure from factors such as Sino-US geopolitical tensions, the economy slowdown in Mainland China and Hong Kong, high interest rates and increased northbound consumption, as well as a decline in its business volume, the Group was able to boost its gross profit margin from 15.4% last year to 16.7% due to its optimized product mix and efficient cost management, testifying to its excellence in business resilience.
Mr. Andy Lau, CEO and Executive Director of Expert Systems, said, “Although the macro environment is full of uncertainties, technological reforms are presenting new opportunities. In response to market changes, we have adopted flexible strategies and leveraged the synergies and integrated resources of our subsidiaries to provide customers with one-stop innovative solutions, thereby strengthening our differentiated competitive advantages. Technological innovation is core to our long-term development strategy, and we have continued to increase our investment in technology and innovation in recent years. In 2022, we established the AI company Expert AI Enabling and formed an independent R&D team to map out our AI technology development. During the same year, we expanded our service desk center in Kuala Lumpur bolstering our regional service network. In April 2025, we launched a Network Operations Center and Security Operations Center (NOC/SOC), and earlier upgraded our service centre in Guangzhou to strengthen our technical service infrastructure. Looking ahead, the Group will continue to deepen investment in technological innovation, driving our own business transformation and upgrading, develop cutting-edge solutions and services for customers, and deliver sustainable returns to shareholders.”
Business Review
IT Infrastructure Solutions
The Group focuses on providing world-class IT infrastructure solutions to corporate and institutional customers, enabling their digital transformation and meeting diverse needs. Due to rising cybersecurity risks and stricter regulatory requirements, for example, Protection of Critical Infrastructures Bill and etc, the demand for cybersecurity solutions has significantly increased. Therefore, the Group is committed to providing customers with appropriate cybersecurity solutions and also offers one-stop cybersecurity services, from compliance consulting, design & architect, implementation to maintenance and etc, delivering holistic protection for customers’ valuable IT assets.
In addition, the Group has successfully developed generative artificial intelligence (GenAI) application solutions to address customers’ urgent needs for business automation and reduced operating costs. The Group also offers comprehensive services ranging from AI infrastructure (including GPU/NPU servers, storage and Big Data) to AI applications. Currently, cybersecurity and automation (including AI) have become two of the Group’s strategic growth engines. We will continue to strengthen its product portfolio and technical support capabilities, offering innovative and integrated solutions to create greater value for customers and drive the sustainable business growth.
IT Infrastructure Management Services
The Group has actively responded to customers’ growing demand for IT infrastructure management services through strategic investments, including the launch of the AI-driven NOC and SOC. These centers provide seamless 24/7 service delivery with comprehensive regional coverage across the Asia-Pacific region, enhancing the management of customers’ network and security infrastructure. Additionally, the Group completed the expansion and relocation of its Guangzhou service desk center, forming cross-regional synergies and service continuity with the Kuala Lumpur service desk center in Malaysia, and optimized resource allocation to meet diverse corporate and institutional customer needs. These initiatives have not only enriched the Group’s service portfolio but also expanded its business into managed professional services, enhancing the value of horizontal business integration.
In addition, in response to the increasingly complex network environment, the Group has made cybersecurity a strategic priority, and has invested additional resources to build a comprehensive cybersecurity consulting service covering risk assessment, security strategy & planning, and compliance consulting. The Group helps enterprise and institutional customers improve operational efficiency, allowing them to focus on core business development and realize digital transformation. We will continue to drive technological innovation and service upgrades to consolidate its competitive advantages in the infrastructure management service sector.
AI Business
The Group has continued to strengthen its GenAI business scope, developing a series of GenAI products based on cloud or on-premises large language models (“LLM”), such as LLaMa, GPT, Qwen and DeepSeek. The Group has categorized these products under the ChatSeries, which includes ChatEnquiry、ChatServiceDesk、ChatMinutes and ChatCategorization, covering applications such as GenAI Enquiry, Workflow Automation and AI Agent. These customized products precisely address the needs of corporate and institutional customers, and have already successfully secured orders from different customers, further demonstrating the Group’s innovative capabilities and growth potential in the GenAI field. Looking ahead, we remain committed to investing resources in technological advancement and strengthening its market competitiveness.
Mr. Lau concluded, “Amid the presently challenging economic environment, we strongly believe that swiftly adapting to market changes and continuously innovating are essential to effectively mitigating risks and maintaining business resilience. Technological reforms are also creating unprecedented growth opportunities for the Group. With a 40-year history in Hong Kong, we have established a robust customer base, accumulated extensive market experience and built a flexible business model, all of which will underpin the Group’s expansion across the Asia-Pacific region.
The Group will celebrate its 40th anniversary in 2025; meanwhile, we are navigating rapidly changing market conditions. We will seek steady progress by prudently managing costs while strengthening our resilience to risk. At the same time, we will increase investment in innovative R&D and focus on developing our three core businesses, namely, IT infrastructure solutions, management services and AI. We will also continue to serve our customers through innovative technologies, helping enterprise and institutional customers fully unlock the potential of digital transformation, while striving to generate long-term value for shareholders.”
Read the announcement of the detailed results here: https://www.expertsystems.com.hk/wp-content/uploads/2025/06/EW08319-Ann-3.pdf
Highlights:
- Revenue for the year ended 31 March 2025 (the “Reporting Year” or “FY2025”) decreased by approximately 9.1% from that for the year ended 31 March 2024 (the “Corresponding Year” or “FY2024”) to approximately HK$900.7 million.
- Gross profit for the Reporting Year decreased by approximately 1.3% from the Corresponding Year to approximately HK$150.7 million. Nevertheless, the gross profit margin improved by 1.3 percentage points from the Corresponding Year to approximately 16.7%.
- Expenditures of approximately HK$8.3 million, out of total operating expenses of approximately HK$132.2 million for the Reporting Year, were allocated to support research and development for Generative AI and to establish our Network Operations Center and Security Operations Center (NOC/SOC), reflecting our proactive strategy to reinvest in technology and innovation to drive future growth.
- Profit for the year attributable to owners of the Company for the Reporting Year decreased by approximately 9.2% to approximately HK$14.0 million as compared to the Corresponding Year.
- Basic earnings per share decreased by approximately 8.9% from approximately HK1.91 cents for the Corresponding Year to approximately HK1.74 cents for the Reporting Year.