Expert Systems Announces FY2026 Annual Results
AI Business Achieves Breakthrough
Diversified Business Strategy Drives Steady Revenue Growth
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(24 June 2026, 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, today announced the audited annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 March 2026 (the “Reporting Year”).
During the Reporting Year, the Group recorded revenue of approximately HK$999.8 million. Gross profit amounted to HK$145.1 million, while profit for the year was HK$3.5 million. Despite a weak macroeconomic environment and intensifying market competition, the Group maintained positive overall revenue growth, demonstrating solid resilience of its business. Through strategic investments in high-growth areas, both the AI and Managed Service Provider (MSP) businesses achieved breakthroughs, successfully establishing diversified growth drivers for the future.
During the Reporting Year, the Group’s short-term profitability faced challenges due to its ongoing investment in new businesses and the impact of one-off expenses associated with the termination of a project. However, following the completion of the initial investments and with benefits gradually materialising, the Group has laid a foundation for long-term development.
Mr. Andy Lau, CEO and Executive Director of Expert Systems, said, “Over the past year, the pace of global economic recovery has been uneven, and the markets in Hong Kong and Chinese Mainland have remained challenging. Upholding the strategy of seeking progress while maintaining stability, the Group has calmly responded to market changes and flexibly adjusted its resource allocation, achieving steady overall revenue growth. Notably, revenue from our AI business has more than quadrupled compared to last year, marking a remarkable progress.
We firmly believe that continued investment in technological innovation and the advancement of a diversified business layout will further enhance the Group’s overall competitiveness and deliver more stable and sustainable growth momentum. The Group will continue to prudently manage risks and strengthen its core businesses to capture expanding market opportunities.”
Business Review
IT Infrastructure Solutions
Amid ongoing volatility in the global supply chains, shortages and rising costs of key components such as memory and hard disk drives have exerted cost pressure on IT infrastructure solutions providers, resulting in short-term fluctuations in the Group’s gross profit margins. Nevertheless, demand from large enterprises remained resilient, particularly with the market’s growing preference for Chinese-brand products, creating greater business opportunities for the Group in this segment. The Group will continue to flexibly allocate resources, pragmatically address cost challenges and seize the potential brought by rising demand.
Furthermore, as cybersecurity regulations become increasingly stringent, the continuing demand from enterprises for compliance solutions is creating structural opportunities in the market. Leveraging its extensive infrastructure expertise, the Group will continue to provide one-stop solutions covering compliance consulting, design, deployment and maintenance to comprehensively safeguard their IT assets, thereby further consolidating and expanding the Group’s market share.
IT Infrastructure Management Services
Customer demand is accelerating from single-point support to integrated management solutions that encompass network, security, endpoints and cloud services. The Group is closely following market trends, actively expanding its MSP business and has achieved a breakthrough in its Security Operations Center (SOC) by securing new orders, injecting new momentum into future growth. Meanwhile, the Group has successfully expanded its MSP portfolio from three to six product lines. Building on its existing IT service desk, Security Operations Center (SOC) and Network Operations Center (NOC), the Group has extended into hosting management, unified endpoint management and consulting services, significantly enriching its service portfolio.
In addition, the Group’s revenue from overseas markets outside the Chinese Mainland and Hong Kong has continued to grow, demonstrating enhanced cross-regional service capabilities and the success of its regional expansion strategy. By utilizing its extensive expertise in infrastructure, the Group will continue to flexibly deploy resources to address expanding market demand and further strengthen its market-leading position.
AI Business
Global investment in generative AI continues to surge, while the Hong Kong SAR Government is also actively promoting its application in public services and key sectors, such as finance and education. Demand from enterprises for customized AI solutions that enhance operational efficiency and enable workflow automation is growing rapidly.
The Group’s AI business achieved major milestone, securing orders from both public and private organizations, with the relevant systems fully deployed and being up and running. Revenue from AI development and AI solutions grew more than fourfold year on year, demonstrating strong growth momentum. Leveraging the technical strength and solution deployment capabilities of its own R&D team, the Group will continue to enhance cooperation with Hong Kong’s AI ecosystem, expand a wide range of application scenarios, and deliver highly customized end-to-end AI solutions. This initiative is expected to become one of the Group’s core growth drivers.
Mr. Lau concluded, “Despite the challenging economic environment, we continued to deliver positive revenue growth. Driven by breakthroughs in our two emerging businesses, namely, AI and MSP, we have successfully established diversified growth engines for the future.
Looking ahead, leveraging our solid customer base and continuously improving service portfolio, we will prudently manage risks while proactively increasing strategic investments in high-growth areas such as AI and managed services. As our earlier investments begin to translate into business outcomes, these new business segments will further unleash strong growth momentum. We are confident in capturing opportunities in AI and managed services, building new growth engines through strategic investments and creating long-term value for shareholders.”
Read the announcement of the detailed results here:
https://www.expertsystems.com.hk/wp-content/uploads/2026/06/EW08319-ann-2.pdf
Highlights:
- Revenue for the year ended 31 March 2026 (the “Reporting Year” or “FY2026”) increased by approximately 11.0% from that for the year ended 31 March 2025 (the “Corresponding Year” or “FY2025”) to approximately HK$999.8 million. Revenue from AI business for the Reporting Year was approximately HK$1.4 million, represented more than quadrupled from the Corresponding Year.
- Gross profit for the Reporting Year decreased by approximately 3.7% from the Corresponding Year to approximately HK$145.1 million, while gross profit margin decreased by 2.2 percentage points to approximately 14.5%, primarily attributable to non-recurring expenses of approximately HK$6.1 million recorded in FY2026 in relation to the termination of a service agreement with a customer (for details, please refer to the Company’s announcements dated 25 November 2025).
- Expenditures of approximately HK$11.1 million, out of total operating expenses of approximately HK$137.7 million for the Reporting Year, were allocated to support research and development for AI business and investments in the Managed Service Provider It reflects our proactive strategy of continued investment in technological innovation to drive diversified growth engines for the future.
- Profit for the year attributable to owners of the Company for the Reporting Year decreased by approximately 72.4% to approximately HK$3.9 million as compared to the Corresponding Year.
- Basic earnings per share decreased by approximately 72.4% from approximately HK1.74 cents for the Corresponding Year to approximately HK0.48 cent for the Reporting Year.