IBO Technology Achieves Turnaround in FY2021/22 Annual Results

Demonstrates Rapid Growth in Principal Businesses
Accelerating the Launch of Purely Domestically-produced ITAI Products

HONG KONG, July 3, 2022 - (ACN Newswire) - IBO Technology Company Limited ("IBO Technology" or the "Company", together with its subsidiaries, the "Group"; Stock Code: 2708.HK) is pleased to announce its consolidated annual results for the year ended 31 March 2022 (the "financial year" or the "Year"). During the Year, thanks to the rapid development of its principal businesses, the Group was able to achieve a business turnaround.

IBO Technology's three main businesses are 5G (communication equipment and private network solutions), Information Technology Application Innovation ("ITAI") IT (terminal products and industry solutions) and Internet of Things ("IoT") (products and solutions), and is committed to providing quality one-stop 5G, ITAI and IoT products and solutions. During the Year, thanks to the recovery in economic activities and the expansion of customer base, the Group delivered accelerated growth and achieved business turnaround. Its revenue amounted to approximately RMB1,046.30 million, representing a year-on-year surge of 86.7% from approximately RMB560.33 million in the previous year. The gross profit of the Group increased by 53.9% to approximately RMB178.60 million (FY2020/21: approximately RMB116.02 million), while the gross profit margin was 17.1% (FY2020/21: 20.7%). The profit attributable to owners of the Company for the financial year was approximately RMB14.66 million, as compared to loss attributable to owners of the Company of approximately RMB42.10 million in FY2020/21. The basic earnings per share for the financial year was approximately RMB2.67 cents, as compared to the basic loss per share of approximately RMB9.81 cents in the previous year.

Capitalising on favourable policies in ITAI industry and industry digitisation to achieve business growth

From the "13th Five-Year Plan" to the "14th Five-Year Plan", the Central and local governments have been developing the "digital economy" and building "Digital China" as their important objectives, clarifying the "Digital China" construction strategy and seizing the high ground of the digital economy production chain. The governments at all levels are strongly promoting the development of the ITAI industry, facilitating the development of various fields within the industry and driving the transformation of the traditional IT information industry.

With the rapid growth of China's ITAI industry and its penetration into various fields, key core technologies have been researched and developed domestically to foster original innovations. The Central and local governments have made great efforts to promote the ITAI procurement, and are determined to increase the proportion of ITAI product applications, which have begun to enter key industry markets such as finance, telecommunications and energy. The enlarged scale of procurement for domestically-produced equipment as well as software and hardware by all levels, coupled with the expanding market size, have reflected that replacement by domestic production has entered a substantive stage. Riding on the "14th Five-Year Plan" policies, the Group has been proactively growing its ITAI business, which is divided into direct sales and Original Design Manufacturer ("ODM") channels according to its sales model, and actively participating in proprietary tendering to accelerate the launch of its products which have been widely recognised.

Striding into harvesting period as intelligent terminal products sales and software development businesses achieved significant breakthrough

Intelligent terminal products sales business remained the Group's main revenue source, accounting for 85.2% of the total revenue for the financial year. During the Year, the Group focused on the development, production and sales of customised IoT smart terminals for its customers, mainly including notebooks, tablets, all-in-one PCs, desktop PCs, and industrial gateway servers. Benefiting from the recovery of economic activities and the favourable policies of the ITAI industry at the national level, coupled with the orders of ITAI IT products signed earlier by the Group were gradually delivered to customers, the revenue from the sales of intelligent terminal products increased significantly. During the Year, the intelligent terminal products sales business recorded a revenue of approximately RMB891.37 million, representing a significant increase of approximately 121.7% and the growth driver of the Group.

In respect of software development business, the Group planned and designed the software system frameworks and function lists for customers, and provided customised software application development services based on their business and management needs. The software development business accounted for 10.0% of the Group's total revenue. Leveraging its strong software development capabilities, the Group has been providing quality software application development services to serve customers in different industries for many years. In addition to maintaining long-term and strategic relationships with existing customers, the Group also actively explores new customers to expand its customer base and drive sales. During the Year, as a result of the continued expansion of its software development business and its customer base, the Group recorded revenue of approximately RMB104.23 million (FY2020/21: RMB45.49 million), representing a significant year-on-year increase of approximately 129.1%.

With regards to system integration business, based on the analysis and assessment of customers' needs, the Group provides customers with integrated and customised system solutions based on IoT and related technologies. In view that the revenue of the systems integration business is derived from one-off projects with fluctuating revenue as compared to other segments, the Group's systems integration business shrank during the financial year, with revenue slightly dipped to approximately RMB39.82 million (FY2020/21: approximately RMB101.00 million), accounting for 3.8% of the Group's total revenue.

For system maintenance services business, the Group provides software and hardware system maintenance services for information systems, including system equipment maintenance and management, database maintenance, daily system monitoring and system upgrade, etc. During the Year, attributable to its business optimisation and adjustment, the Group's system maintenance services business decreased slightly to approximately RMB10.88 million (FY2020/21: approximately RMB11.83 million), accounting for 1.0% of the Group's total revenue.

Accelerating the launch of products and riding on the favourable policies to promote exponential growth of the Group's business

Riding on the "14th Five-Year Plan" policies, the Group has been proactively expanding its ITAI business and actively participated in proprietary tendering to accelerate the launch of its products. During the Year, the purely domestically-produced notebook computers designed and developed by the Group have entered the market and have been widely recognised. The Group will accelerate the development of the ITAI industry as well as the research and development of products, striving to gain more market share as the Group's purely domestically-produced ITAI IT products are expected to become the growth engine of the Group's future results. While continuously improving its products, the Group will enhance its marketing and promotion efforts for ITAI IT products, and cooperate with industry partners to promote the sales of ITAI IT products of the Group and accelerate the rapid popularisation and promotion of replacement by domestic production in various industries.

As a leading industry digital solutions provider, the Group has collaborated with a number of large state-owned enterprises and private enterprises through different projects and gained extensive project experience in the field of 5G private network. Looking ahead, the Group will build on its successful experience in previous projects and its solid foundation in the industry, as well as the synergies generated with enterprise partners in various aspects such as technology, supply chain and market to organise research and pilot testing for 5G private networks, to optimise the key stages ranging from application to deployment, in order to provide the best quality solutions to operators and industry partners.

Mr. LAI Tse Ming, Chairman and Executive Director of IBO Technology, said, "Our three business segments are closely interconnected and synergistic in terms of underlying technologies, application technologies, supply chains, projects and business models. We strive to integrate and innovate the 5G, ITAI and IoT technologies to form new business models and industrial ecologies, so as to effectively leverage our advantages and integrated technological capabilities to maximise overall value created. In addition, we will actively identify suitable merger and acquisition targets that create strong synergies with our existing principal businesses to support our operations and rapid development. Leveraging the Group's accumulated technologies and strong market demand, our three principal businesses are expected to generate significant synergies, which will contribute to the exponential growth of the Group's overall business development. Going forward, the management will continue to seek breakthroughs and strive to create long-term and stable returns for our investors and shareholders."

About IBO Technology Company Limited
IBO Technology Company Limited (Stock code: 2708.HK), a leading digital solutions provider, is principally engaged in providing 5G communication equipment and private network solutions, ITAI terminal products and industry solutions, IoT products and solutions, as well as industrial digital solutions in the PRC. The Group's businesses mainly cover four areas, namely (i) intelligent terminal products sales; (ii) system integration; (iii) software development; and (iv) system maintenance services. With nearly 20 years penetration in the IoT industry, the Group serves customers from both the public and private sectors in the PRC, including government authorities, large-scale state-owned enterprises and private enterprises.

For more details, please visit: http://www.ibotech.hk/


Source: IBO Technology Company Limited

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