Financial Performance - Revenue decreased from approximately $94.9 million for the fiscal year ended June 30, 2022, to approximately $51.9 million for the fiscal year ended June 30, 2023, a decrease of $43.0 million or 45.3%[238]. - Profit decreased from approximately $15.7 million for the fiscal year ended June 30, 2022, to approximately $5.9 million for the fiscal year ended June 30, 2023, a decrease of $9.8 million or 62.4%[238]. - For the year ended June 30, 2024, revenue decreased by RM183.9 million ($39.5 million) or 76.0% to RM58.2 million ($12.3 million) compared to RM242.1 million ($51.9 million) for the year ended June 30, 2023[360]. - Revenue from IoT Smart Agriculture and System Development recorded RM52.0 million ($11.0 million) for the year ended June 30, 2024, a decrease of RM167.5 million ($36.0 million) or 76.3% from RM219.5 million ($47.0 million) for the year ended June 30, 2023[365]. - Profit for the year ended June 30, 2024, decreased by RM82.2 million ($17.5 million) or 298.6% to a loss of RM54.7 million ($11.6 million) compared to a profit of RM27.5 million ($5.9 million) for the year ended June 30, 2023[372]. Business Operations - The company reorganized its operations into three business lines for the fiscal year ended June 30, 2024, merging IoT Smart Agriculture and IoT System Development due to significant declines in activity[232]. - The IoT Gadget Distribution business line was disposed of in October 2023 due to its insignificant profit generation, following the sale of ARB Midware Sdn. Bhd. and ARB Distribution Sdn. Bhd.[235]. - The company aims to enhance its financial flexibility and corporate reputation through its listing on the Nasdaq, promoting clearer segregation of business responsibilities[236]. - The company has entered new sectors such as digital warehouse management systems and point-of-sale systems since 2021, aiming to create a versatile IoT ecosystem[253]. - The company intends to further develop and optimize its IBS systems with additional IoT applications to improve construction productivity and efficiency[252]. Market Position and Strategy - The company aims to be a top IoT player in the ASEAN region, particularly in agriculture, property development, and logistics, driven by rapid urbanization and technology proliferation[239]. - The company plans to establish a regional center in Singapore and sales offices in major ASEAN cities such as Jakarta, Manila, and Bangkok to support its IoT business[241]. - The company believes its strong in-house R&D capabilities and extensive distribution network will enable it to capture significant market shares despite competition[281]. - The company emphasizes the importance of strong project management to ensure a high level of completion rate for its IoT projects[347]. - The company anticipates significant untapped opportunities to win new large enterprises across different industries in Malaysia and the ASEAN region[345]. Research and Development - The company’s subsidiaries are involved in research and development of IT and IoT solutions, contributing to the company's innovation and market expansion[211][212][213]. - The R&D team is focused on enhancing existing IT solutions and developing new platforms, with significant investment expected in future research and development efforts[275]. - The company emphasizes the importance of continued investment in technology and new product development to achieve strategic objectives[277]. Financial Management - The company provides a long credit period of 180 to 210 days to some large customers, which may affect its financial condition if customers experience difficulties[346]. - The company operates primarily through subsidiaries, and its ability to pay dividends depends on the dividends received from these subsidiaries[402]. - Cash provided by operating activities for the year ended June 30, 2024, was RM56.7 million ($12.0 million), an increase from RM54.4 million ($11.7 million) in 2023, attributed to improved collection of receivables[394]. - Cash flows used in financing activities for the year ended June 30, 2024, were RM49.5 million ($10.5 million), a shift from cash generated of RM44.9 million ($9.6 million) in 2023, primarily due to repayments to a former controlling shareholder[398]. - Future cash resource requirements may arise due to changing business conditions or strategic expansions, potentially necessitating additional equity or debt financing[401]. Regulatory Compliance - The company is subject to various regulations, including the Personal Data Protection Act 2010, which mandates consent for processing personal data[299][300]. - The company must comply with the Companies Act 2016, which restricts dividend distributions to profits available only if the company is solvent[302]. - The company is required to adhere to the Civil Aviation Regulation 2016 for drone flight activities, necessitating authorization for specified circumstances[304]. - The company must maintain compliance with the Communications and Multimedia Act 1998, which regulates the use of network facilities and services[306][307]. - The company has a minimum capital investment requirement of RM1 million for foreign participation in distribution trade services in Malaysia[305].

Core Points - ARB IOT Group Limited has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement of $1.00 per share [1][2] - The company has a compliance period of 180 calendar days until December 23, 2024, to regain compliance [3] - If compliance is not achieved, the company may be eligible for an additional 180-day grace period under certain conditions [4] - The notification does not have an immediate effect on the trading of the company's shares, which will continue to trade on Nasdaq [5] Company Overview - ARB IOT Group Limited specializes in providing complete solutions for the integration of Internet of Things (IoT) systems and devices, covering the entire process from design to project deployment [6] - The company aims to become a leading player in the IoT landscape within the ASEAN region, offering a wide range of IoT systems and services [6]

Financial Performance - Revenue for the six months ended December 31, 2023, was RM 31,622,948, a decrease of 74.5% compared to RM 123,521,552 for the same period in 2022[14]. - Gross loss for the period was RM 17,581,034, compared to a gross profit of RM 14,834,326 in the previous year[14]. - The company reported a loss before tax of RM 62,792,784, compared to a profit before tax of RM 2,426,806 in the prior year[14]. - Profit for the financial period attributable to owners of the company was a loss of RM 50,177,049, compared to a profit of RM 3,670,221 in the previous year[14]. - The company reported a total comprehensive loss of RM 46,795,483 for the period, compared to a total comprehensive income of RM 4,921,715 in the previous year[14]. - Basic loss per share attributable to owners of the company was RM (2.28), compared to earnings of RM 0.20 in the same period last year[14]. - The Group reported a loss before tax of RM 62,792,784 for the six months ended 31 December 2023, compared to a profit of RM 2,426,806 for the same period in 2022[158]. - The Group's loss for the period was RM 49,865,590 for the six months ended 31 December 2023[172]. Expenses and Liabilities - Administrative expenses increased significantly to RM 45,894,179, up from RM 12,627,450 in the same period last year, reflecting a rise of 263.5%[14]. - The Group's loss before tax included significant depreciation of RM 35,152,128 for property, plant, and equipment, compared to RM 7,284,888 in the previous year[153]. - The tax expense for the Group was RM 12,927,194 for the six months ended 31 December 2023, compared to RM 2,505,942 in the same period of 2022[158]. - Employee benefits increased to RM 3,094,197 for the six months ended 31 December 2023, up from RM 1,643,036 in the previous year[165]. Assets and Cash Flow - Total assets as of December 31, 2023, were RM 268,771,798, down from RM 395,703,664 as of June 30, 2023[11]. - Total liabilities increased to RM 167,606,119, compared to RM 76,865,907 as of June 30, 2023[11]. - Net assets decreased to RM 101,165,679 from RM 318,837,757 as of June 30, 2023[11]. - Cash generated from operations was RM 79,251,838, an increase from RM 47,886,552 in the previous year[23]. - Net cash generated from operating activities was RM 80,056,659, compared to RM 48,095,192 in the prior year[23]. - As of 31 December 2023, cash and cash equivalents totaled RM 30,080,568, down from RM 33,599,099 at the end of the previous year[25]. Investments and Acquisitions - The Group disposed of 100% equity interest in ARB Midware Sdn. Bhd. for a total cash consideration of RM1 on 6 October 2023[46]. - On 17 April 2023, the Group acquired 100% equity interest in ARB Synergy Sdn. Bhd. for RM1, which subsequently became a wholly-owned subsidiary[46]. - The Group disposed of 100% equity interest in ARB Synergy Sdn. Bhd. for RM1 on 27 June 2023, along with its subsidiary ARB Databook Pte. Ltd.[47]. - The Group acquired 10% equity interest in ARB Robotic Sdn. Bhd. for RM1 on 26 May 2023, making it a wholly-owned subsidiary[47]. Business Operations - The company is engaged in providing IoT solutions across four business lines, including Smart Home and Buildings, Smart Agriculture, System Development, and Gadget Distribution[27]. - The Group operates in two segments: provision of hardware and software for Internet of Things solutions, and investment holding and others[50]. - Revenues are recognized upon the transfer of control of promised products or services, reflecting the expected consideration[52]. Receivables and Impairments - Trade receivables from third parties decreased significantly to RM 2,700,000 as of December 31, 2023, down from RM 38,356,692 on June 30, 2023[74]. - The Group's lifetime expected loss provision for trade receivables was RM 2,700,000 as of December 31, 2023, compared to RM 38,356,692 on June 30, 2023[81]. - The Group's impairment for other receivables is negligible, indicating a stable credit risk environment[86]. Shareholder Information - The issued and fully paid ordinary shares remained at 26,437,500 as of 31 December 2023, with a total amount of RM 23,308,795, unchanged from the previous period[133]. - Non-controlling interests increased from RM 94,158 as of 30 June 2023 to RM 104,305 as of 31 December 2023, reflecting a growth of approximately 10.9%[137]. Future Projections - The Group expects to sell approximately 272 units of Multi-Rotor Agricultural UAVs over the next ten years, with a selling price of RM5,800 per unit, increasing by 5% every three years[115]. - Drone services are projected to generate RM342,800 per month, also increasing by 5% every three years, with an expected 608 service instances over ten years[115].

Group 1 - ARB IOT (NASDAQ:ARBB) stock is experiencing significant gains, rising 230% as of Tuesday morning, alongside heavy trading activity [1][2] - ARB BERHAD holds a 28.38% stake in ARB IOT, amounting to 7,503,858 shares out of a total of 26,437,500 outstanding shares [1] - The SEC filing indicates that ARB BERHAD has granted full power of attorney to Dato' Sri Liew Kok Leong, the chairman and CEO of ARB BERHAD [1] Group 2 - More than 7.4 million shares of ARBB stock have been traded today, significantly exceeding the average daily trading volume of approximately 1.7 million shares [2] - The nature of ARBB as a penny stock means it can experience rapid price fluctuations based on minimal news [2]

IPO and Shareholding - ARB Berhad completed its initial public offering on April 10, 2023, raising approximately $5.0 million by offering 1,250,000 ordinary shares at $4.00 each [173]. - As of October 2, 2023, ARB Berhad directly holds 94.56% of the outstanding ordinary shares following a series of dividend distributions in specie [174]. - The company aims to distribute up to 23,517,207 ordinary shares to its shareholders, pending approval, at a ratio of 14 shares for every 1,000 shares held [190]. - The company has expanded its share capital through various share issuances, including a subdivision of shares in June 2022, increasing the number of shares from 50,000 to 500,000,000 [172]. Business Operations and Structure - The company operates through various subsidiaries focused on IoT solutions, including IoT Smart Home & Building, IoT Smart Agriculture, IoT System Development, and IoT Gadget Distribution [191]. - ARB IOT Group Limited was incorporated in March 2022 as an indirect wholly owned subsidiary of ARB Berhad, focusing on IoT business operations [171]. - The company has established an IoT development ecosystem to address challenges and opportunities brought by new digital technologies, including AI, cloud computing, and 5G [192]. - ARB Berhad's restructuring and IPO have allowed for clearer segregation of business responsibilities, enhancing resource allocation for IoT growth [196]. - On October 6, 2023, ARB Berhad disposed of its subsidiary ARB Midware Sdn. Bhd. for RM1.00, indicating a strategic shift in its business structure [190]. Financial Performance - Revenue increased from approximately $10.8 million in FY 2021 to approximately $94.9 million in FY 2022, a growth of 780.7%, but decreased to approximately $51.9 million in FY 2023, a decline of 45.3% [197]. - Profit rose from approximately $4.0 million in FY 2021 to approximately $15.7 million in FY 2022, an increase of 288.4%, but fell to approximately $5.9 million in FY 2023, a decrease of 62.4% [197]. - For the year ended June 30, 2023, revenue decreased by RM200.9 million ($48.7 million) or 45.4% to RM242.1 million ($51.9 million) compared to RM443.0 million ($100.6 million) for the year ended June 30, 2022, primarily due to a softened domestic construction and property development market [302]. - Total comprehensive income for the year was RM73.4 million ($16.7 million), a decrease of RM44.7 million ($10.5 million) or 63.2% compared to the previous year [300]. - Profit before tax for the year ended June 30, 2023, was RM21.9 million ($4.7 million), a decrease of RM66.4 million ($15.4 million) or 76.6% compared to RM88.3 million ($20.0 million) for the previous year [299]. Revenue Streams - Revenue from IoT Gadget Distribution increased by RM2.9 million ($0.4 million) or 16.9% to RM20.1 million ($4.3 million) for the year ended June 30, 2023, driven by higher sales volumes of mobile gadget accessories [304]. - Revenue from IoT System Development decreased by RM204.9 million ($47.2 million) or 79% to RM54.0 million ($11.6 million) for the year ended June 30, 2023, mainly due to the absence of system integration business application services recorded in fiscal 2022 [305]. - IoT Smart Agriculture generated revenues of RM165.5 million ($35.4 million) for the year ended June 30, 2023, a slight decrease of RM0.8 million ($2.3 million) or 0.6% compared to RM166.3 million ($37.7 million) for the year ended June 30, 2022 [306]. Research and Development - ARB Lab and ARB R&D are key subsidiaries focused on research and development of IT and IoT solutions, contributing to the company's innovation strategy [176]. - The company is investing significantly in research and development to enhance existing IT solutions and develop new platforms [198]. - The R&D team consists of 6 members and focuses on enhancing existing IT solutions and developing new platforms [232]. - The company has begun exploring new sectors such as digital warehouse management systems and point-of-sale systems since 2021 [215]. Market Strategy and Expansion - The company aims to be a top IoT player in the ASEAN region, focusing on agriculture, property development, and logistics industries [204]. - The company plans to establish sales representative offices in major ASEAN cities including Jakarta, Phnom Penh, Manila, Bangkok, Hanoi, and Ho Chi Minh City [205]. - The company aims to expand its customer base in targeted ASEAN countries, leveraging local resources for market entry [229]. - The company plans to pursue horizontal or vertical acquisitions and strategic partnerships to expand market share and enhance competitive position [228]. Cost Management and Operational Efficiency - Operational improvement initiatives are expected to generate cost savings that will offset inflation in underlying costs [230]. - Cost of revenue decreased by RM152.6 million ($37.1 million) or 44.3% to RM192.2 million ($41.2 million) for the year ended June 30, 2023, in line with the decrease in revenue [308]. - Total expenses increased significantly to RM28.8 million ($6.2 million) for the year ended June 30, 2023, up from RM10.2 million ($2.3 million) for the year ended June 30, 2022, representing an increase of RM18.6 million ($3.9 million) or 182.4% [309]. Governance and Compliance - The audit committee consists of three independent directors, ensuring compliance with financial reporting processes [363]. - The compensation committee is responsible for reviewing and approving compensation structures for executive officers [364]. - The nominating and corporate governance committee assists in selecting qualified individuals for the board of directors [367]. - The company meets all regulations and standards prescribed by authorities [346]. Risks and Future Outlook - The company may require additional cash resources in the future for business expansion or acquisitions, which could lead to dilution of shareholders if additional equity is sold [336]. - There are no adverse effects anticipated from external risks such as weather conditions or industrial accidents [346]. - The IoT industry is expected to see rapid technological changes, requiring continuous innovation to remain competitive [238].

Financial Performance - Total revenue for the period ended December 31, 2022, was $27,990,381, a decrease of 32% compared to $41,123,984 in the same period of 2021[7]. - Gross profit for the period was $3,361,506, down 60% from $8,527,708 in the previous year[7]. - Profit for the financial period attributable to owners of the Company was $831,684, a significant decline from $7,458,840 in 2021[7]. - Basic earnings per share decreased to $0.05 from $0.75, a decline of 93%[7]. - Profit before tax for the period ended 31 December 2022 was $549,922, a significant decline from $7,615,578 in 2021[119]. - The Group's revenue from project management fees was $566,508 for the period ended 31 December 2022, down from $1,640,326 in 2021[114]. - The Group's revenue from the sale of goods was $27,423,873 for the period ended 31 December 2022, a decrease of 30% from $39,307,886 in 2021[114]. - The Group's tax expense for the period ended 31 December 2022 was $567,855, compared to a tax benefit of $180,639 in 2021[121]. Assets and Liabilities - Total assets increased to $94,642,040 as of December 31, 2022, compared to $69,150,613 in 2021, reflecting a growth of 37%[6]. - Total liabilities rose to $28,287,299, up from $20,506,099 in the previous year, marking an increase of 38%[6]. - Net assets increased to $66,354,741, compared to $48,644,514 in 2021, representing a growth of 36%[6]. - Cash and bank balances improved to $7,702,481 from $5,348,748, an increase of 44%[5]. - Trade receivables decreased to $22,129,196 as of 31 December 2022, down from $26,273,468 in 2021, reflecting a decline of approximately 15.8%[62]. - Other receivables increased to $2,719,121 as of 31 December 2022, compared to $0 in 2021[68]. - Total deposits decreased slightly to $1,138,865 in 2022 from $1,202,586 in 2021[68]. - The net carrying amount of property, plant, and equipment as of 31 December 2022 was $27,233,640, up from $741 in 2021[75]. - Accumulated amortization for intangible assets increased to $9,595,922 as of 31 December 2022, compared to $4,613,744 in 2021[84]. - The total cost of intangible assets remained at $38,507,266 as of 31 December 2022, unchanged from the previous year[83]. - The lease liability decreased to $9,891 as of 31 December 2022 from $41,010 in 2021[79]. - The Group's total amount due from related companies was $203,544 as of 31 December 2022, compared to $4,794,858 in 2021[72]. - The Group's total amount due to related companies decreased to $448,304 in 2022 from $8,559,572 in 2021[72]. Expenses - The company reported a significant increase in administrative expenses, which rose to $2,861,420 from $935,532, reflecting a rise of 206%[7]. - The Group's employee benefits expenses increased to $372,317 in 2022 from $217,143 in 2021[127]. - Other payables and accruals increased significantly from $200,309 in December 2021 to $4,597,526 in December 2022, indicating a rise of approximately 2200%[100]. Business Operations - The company is engaged in four business lines: IoT Smart Home and Buildings, IoT Smart Agriculture, IoT System Development, and IoT Gadget Distribution[12]. - The company was incorporated on 1 March 2022 and is primarily involved in investment holding activities[12]. - The Group operates in two segments: provision of hardware and software for Internet of Things solutions, and investment holding and others[35]. - The Group's revenue recognition policy involves recognizing revenue upon the transfer of control of products or services to customers[38]. Acquisitions and Investments - ARB Techsymbol Sdn. Bhd. acquired 49% equity interest in ARB Logistic Technologies Sdn. Bhd. for RM49,000, making it a wholly-owned subsidiary[34]. - ARB Techsymbol Sdn. Bhd. acquired 51% equity interest in ARB WMS Technologies Sdn. Bhd. for RM51,000[34]. - ARB R&D Sdn. Bhd. acquired 100% equity interest in ARB Innovation Sdn. Bhd. for RM8,000,001[34]. - ARB AI Sdn. Bhd. acquired 1% equity interest in ARBIOT Sdn. Bhd. for RM1, making it a wholly-owned subsidiary[34]. - The Group acquired an additional 1% equity interest in ARBIOT for RM1,000,000, increasing its controlling interest from 99% to 100%[113]. - The Group acquired 100% of ARB WMS Technologies Sdn. Bhd. and ARB Innovation Sdn. Bhd., with a total fair value consideration of $1,927,923, which is expected to enhance its position in the Malaysian data networking market[155]. - ARB Innovation generated revenue of $37,595,785 since the acquisition, while both subsidiaries reported a combined loss before tax of $92,837[157]. Cash Flow and Financing - The company generated net cash from operating activities of $10,898,525, compared to $3,455,755 in the previous year, indicating a substantial increase[10]. - For the period ended 31 December 2022, net cash from financing activities was USD 6,736,356, a decrease of 65.0% compared to USD 19,253,323 in the same period of 2021[11]. - Cash and cash equivalents at the end of the period increased to USD 7,613,664, up 42.3% from USD 5,348,748 at the end of 2021[11]. - The company had a repayment to the holding company amounting to USD 8,325,104, a significant increase from USD 3,984 in the prior year[11]. - The Group's liquidity management strategy includes maintaining adequate cash and cash equivalents to meet operational needs, with a focus on managing debt maturity profiles and cash flow forecasts[151]. - The proposed IPO aims to issue at least 1,200,000 new shares at a minimum price of USD 4 per share, potentially raising a minimum gross proceed of USD 4.80 million[160][161]. Risk Management - The Group's exposure to credit risk is primarily from sales made on credit terms, with measures in place to ensure customers have sound financial positions[147]. - The Group's financial risk management focuses on optimizing shareholder value while avoiding speculative transactions, with key risks identified as market, credit, and liquidity risks[145]. Corporate Governance - The company’s financial statements comply with International Financial Reporting Standards (IFRS) applicable to companies reporting under IFRS[23]. - The listing of ARB IOT Group Limited on NASDAQ was completed on 5 April 2023, following the submission of the registration statement to the SEC[162].