Inauguration of Bay Area Headquarters, Sector Focus Development
50th Anniversary Celebration, Inheritance of the Spirit, A Legacy of Perseverance
News Release – August 23 2023
(Hong Kong, 23 August 2023) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEX stock code: 771), a professional and trustworthy global unified technology services partner, announced its interim results for the six months ended 30th June 2023 (the “Review Period”). Total revenue of the Group’s core businesses (namely businesses in Hong Kong and the other Asia Pacific regions) recorded HK$1,242.4 million, up 13.6% as compared to the same period last year. Adjusted EBITDA and adjusted net profit recorded HK$65.2 million and HK$43.5 million respectively (HK$66.7 million and HK$44.4 million as compared to the same period last year).
In the Review Period, the Group recorded a profit attributable to the Company’s equity holders of HK$91.1 million, an increase of 7.1 times compared to HK$11.3 million for the corresponding period last year. The increase was mainly attributable to a net gain on deemed disposal of partial interest in an associate recorded in this period. The Group’s basic earnings per share and diluted earnings per share was both 10.93 HK Cents (basic earnings per share and diluted earnings per share of the same period last year was 1.36 HK Cents and 1.35 HK Cents respectively). Gross profit for the six months ended 30th June 2023 was HK$124.5 million, a decrease of HK$4.4 million or 3.4% compared with the same period last year, it was mainly attributable to the decrease in government grants, as compared to the corresponding period last year.
The Groups financial position remained stable during the Review Period. For the six months ended 30th June 2023, orders newly secured by the Group amounted to approximately HK$1,313.9 million, representing an increase of 1.4% from the corresponding period last year. As at 30th June 2023, the Group’s order book balance was approximately HK$1,437.5 million. The Group’s net cash stood at approximately HK$664.2 million with a working capital ratio of 1.86:1. The outstanding borrowings amounted to HK$33.8 million.
The revenue of the Group’s three DevSecOps businesses was broadly stable as compared to the same period last year. In addition to the DevSecOps business (see description below), the Group was also involved in system integration.
In terms of the Innovative Solutions Business (Application Development — Enhance customer experience with innovative applications; Dev), the service orders newly secured in the period recorded an increase as compared to the same period last year. Service revenue reached HK$260.3 million, representing a double-digit growth. The increase was mainly attributable to higher orders amount for professional services and application development. During the Review Period, the Group continued to assist the government in promoting the construction of Smart City through the provision of innovative blockchain solutions and the utilization of platform-driven information technology services. In addition, healthcare and other industries also continued to receive numerous orders. During the reporting period, the Group further invested in human resources, especially in areas such as artificial intelligence (AI) and robotic process automation (RPA), and demonstrated outstanding performance in implementing cloud computing open-source coding projects, which earned commendation and affirmation from partners.
In regard to Intelligent Cybersecurity Services Business (Cybersecurity — Protect your assets with intelligent security technology; Sec), the service orders newly secured in the period by the Group recorded a mild increase as compared to the corresponding period last year, with service revenue reaching HK$88.8 million. The main business growth was fueled by the market’s ongoing demand for security operation center and traditional cybersecurity, as well as maintenance. During the period, the Group has received orders in various industries such as financial services, government, healthcare and retail. The Group also provides DevSec services for agile development. In addition, the Group is strengthening the integration of service platform, so as to provide unified technology services which the Group has competitive edge.
In respect of Integrated Managed Services Business (Omni-channel Managed Services — Simplify your IT operations to increase efficiency; Ops), service orders newly secured in the period recorded a slight decline as compared to the corresponding period last year, which was attributable to the decrease in orders related to the pandemic. Service revenue recorded HK$218.9 million. During the period, the Group successfully obtained renewal orders from two financial institutions and an aviation company, as well as a data migration service order from a large entertainment company.
With regard to the new business, the Group actively develops hybrid cloud services and continues to improve the capabilities of its service platform, including its unique Unified Operation Center (“UOC”), which enables customers to access and analyze data more efficiently, thereby support their decision-making process, enhance customer experience and foster customer loyalty to our brand. The Group’s self-branded “ASL Marketplace”, an integrated cloud native online platform showcases cloud-native as-a-Service and one-stop DevSecOps capability, which is expected to launch an as-a-Service product in the second half of the year. In addition, the Group introduced a leading global financial technology provider, Finastra, last year and focused on talent training and marketing promotion of relevant technologies with an aim to provide tailored solutions for the banking industry.
As for the business of associates, GDH, an associate with business in Europe and the U.S., recorded a total revenue of US$157.4 million (equivalent to approximately HK$1,234.0 million) for the first half of 2023, an increase of 5.8%. GDH has successfully withstood the impact of the Russia-Ukraine war by terminating its offshore delivery operations in Russia and announced the establishment of a new European hub in Switzerland, while expanding human resources in India. GDH’s leading AI technology has simultaneously gained recognition from Google Cloud and its clients, leading to the establishment of global partnerships and successful completion of several AI projects. i-Sprint, one of the major associates in Asia Pacific, recorded a stable business performance during the period, with its revenue and EBITDA reaching HK$59.8 million and HK$11.5 million respectively. During the period, i-Spring received a number of orders from major customers and its products has been recognized for industry excellence and received numerous awards, including the 19th Annual 2023 Globee Awards for Cybersecurity organized by Globee Awards and the Cyber Security Global Excellence Award of 2023.
Looking ahead, the Group will capitalize on business opportunities brought by the rapid revival of the travel traffic between Hong Kong, Mainland China and international, delivering unified technology services and bridging the talent gaps. In terms of the development of core business, the Group will prioritize on developing in industry where we have a competitive advantage, and deeply explore the business needs of customers, taking their considerations such as technology adoption trend and service needs into account. In addition, the Group has strategically partnered with Finastra, a leading global financial technology provider, and has become the sole authorized service provider for providing Finastra’s Kondor treasury solutions in the form of managed services model in Hong Kong and Macau, to bolster its industry-specific DevSecOps business and strengthen its fintech trajectory.
The Group adopts cloud-native technology as its foundation and explores the application of innovative technologies, thereby increasing its investment to strengthen multi-cloud and hybrid cloud services. We are committed to the dual-line development of our suppliers from Mainland China and the rest of the world and continuously optimize our partner ecosystem in order to address geopolitical risks. The inauguration of the Group’s Guangdong-Hong Kong-Macau Greater Bay Area headquarters marked a new chapter of its development in the Greater Bay Area. It is a testament that the Group has invested in its core business, which aligns with national policies to leverage information technology to assist enterprises in their development in the Greater Bay Area. We will also nurture next generation IT talents through the collaboration with the Hong Kong Institution of Engineers.
As the Group celebrates the 50th anniversary milestone this year, we will actively pursue opportunities in the Greater Bay Area and look beyond the Greater Bay Area for development projects, striving to become a leading unified technology services partner in the region.
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