Breakthrough Robotics and CRM Deployments Set Stage for Scalable Recurring Revenue Across Southeast Asia and Hong KongKUALA LUMPUR, Malaysia, June 06, 2025 (GLOBE NEWSWIRE) -- Sagtec Global Limited (NASDAQ: SAGT) (“Sagtec” or the “Company”), the next-generation provider of customizable AI and automation platforms, today announced the signing of two major commercial contracts totaling US$5 million less than one week after the official launch of its AI-powered robotics platform. These early wins underscore an ...

Core Insights - Sagtec Global Limited has launched an AI-powered robotics platform aimed at transforming front-of-house operations in the global hospitality sector, addressing labor-intensive service operations [1][2][4] - The global service robotics market is projected to exceed US$90.1 billion by 2032, with a compound annual growth rate (CAGR) of 19.2% from 2025, positioning Sagtec to capitalize on this growth [6] Company Overview - Sagtec is a technology innovator specializing in customizable software and AI systems, primarily serving the Food & Beverage (F&B) sector [8] - The company also provides software development, data management, and social media management services to enhance operational efficiency across various industries [8] Product Features - The platform includes autonomous robotic navigation, natural language ordering, precision robotic arm integration, and full point-of-sale (POS) software integration [5] - Customizable UI/UX allows for brand-specific voice design and themes, enhancing user experience [6] Revenue Model - Sagtec's platform is designed to generate high-margin, recurring revenue through multiple monetization streams, including hardware sales, robotic leasing subscriptions, and licensing of proprietary AI software [10] - The company aims to secure over 500 new robotic kiosk subscriptions within the next 12 months, driven by demand in Southeast Asia and the Middle East [4][6] Market Positioning - By entering the intelligent robotics space, Sagtec is establishing itself as a key AI systems provider in a rapidly growing automation segment [7] - The company is building a defensible, multi-layered ecosystem to deliver predictable, repeatable revenue growth in the future [7]

Company Overview - Sagtec Global Limited is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector, and also offers software development, data management, and social media management [8] - Smart Bridge Technologies Limited is a Malaysian-based AI and software development company specializing in agentic software, enterprise-grade IT solutions, and digital transformation services [7] Acquisition Details - Sagtec has signed a term sheet to acquire Smart Bridge for approximately US$17.6 million, at a price-to-earnings (PE) ratio of about 10 times, pending a definitive agreement and customary closing conditions [1] - The acquisition is expected to transform Sagtec into a full-spectrum AI technology leader, enhancing its capabilities in delivering predictive, real-time intelligence to businesses across Asia [2] Market Potential - The acquisition will broaden Sagtec's total addressable market (TAM) beyond retail into high-growth sectors, with significant opportunities in behavioral analytics, decision automation, and intelligent enterprise software [3] - The global AI retail market is projected to reach US$43 billion by 2032, while the SME-focused AI software market is expected to exceed US$25 billion, and the intelligent POS and behavioral analytics market is forecasted to surpass US$65 billion [3] Strategic Vision - The initiative aligns with the rapid expansion of the Artificial Intelligence sector, driven by increasing digital adoption and growing enterprise awareness of AI's transformative potential [4] - The acquisition accelerates Sagtec's vision of becoming the AI-first enterprise platform of the future, aiming to reshape business operations and unlock new revenue streams [6] Financial Performance - Smart Bridge reported a net profit of US$2.1 million, demonstrating the efficiency and scalability of its AI-driven business model [5] - The company continues to expand its client base across Asia, validating the commercial viability and adaptability of its technology [5] Product and Service Enhancements - The acquisition will enable Sagtec to deliver automated business intelligence to its F&B clients, launch AI-driven menu optimization, upselling strategies, and supply forecasting, and detect revenue leakage through behavioral fraud analytics [10]

Company Overview - Sagtec Global Limited is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector, and also offers software development, data management, and social media management [5] - The company operates power-bank charging stations at 300 locations across Malaysia through its subsidiary, CL Technology (International) Sdn Bhd [5] Recent Developments - Sagtec announced the successful delivery of 8,000 Speed+ Cloud-Based Smart Ordering System licenses and 200 FoodKiosk smart self-service machines to its exclusive UAE partner, SMD Tech, invoiced at US$1,345,000 [1][2] - This delivery represents 80% fulfillment of the initial 10,000-license commitment under a five-year Master Dealership Agreement with SMD Tech [2] Strategic Impact - The integration of FoodKiosk machines adds a critical hardware component to the Speed+ ecosystem, enabling a fully automated customer ordering experience in both dine-in and quick-service environments [2] - The installed Speed+ platform allows for real-time order management, advanced analytics, and automated marketing integration, which helps businesses reduce wait times, optimize manpower, and enhance customer engagement [3] Market Context - There is a growing regional demand for contactless ordering and smart automation, with the Middle East's cloud-based POS market projected to reach US$1 billion by 2030 [4] - SMD Tech's local presence and domain knowledge are accelerating deployment across key commercial zones, including malls, airports, and major F&B franchise groups [4]

Company Overview - Sagtec Global Limited is a leading provider of customizable software solutions, primarily serving the Food & Beverage (F&B) sector, and also offers software development, data management, and social media management [6] - The company operates power-bank charging stations at 300 locations across Malaysia through its subsidiary, CL Technology (International) Sdn Bhd [6] Strategic Partnership - Sagtec has signed a Master Dealership Agreement with SMD Tech – FZCO, appointing SMD Tech as its exclusive master dealer for the Speed+ Cloud-Based Smart Ordering System in Dubai [1][2] - The agreement includes a commitment from SMD Tech to purchase a minimum of 10,000 software licenses over the next five years, translating into an expected revenue pipeline of no less than US$30 million [2] Product Offering - Speed+ is a cloud-native ordering platform designed to transform operations in the retail and F&B sectors, providing seamless order processing, real-time analytics, and automated customer engagement [3] - The platform's relevance is highlighted by the UAE's projected digital economy contribution of over US$140 billion to GDP by 2031, driven by government-led innovation and enterprise digitalization [3] Market Potential - The UAE's F&B market is forecasted to surpass US$37 billion by 2030, driven by rising consumer expectations for digital convenience and operational efficiency [4] - The Middle East's cloud-based point of sale (POS) market is projected to grow at a 19% compound annual growth rate (CAGR) through 2030, reaching approximately US$1 billion, indicating a strong demand for integrated platforms like Speed+ [4] Future Outlook - The agreement with SMD Tech is expected to unlock a predictable multi-year revenue stream and position Sagtec as a key digital enabler in the Middle East's F&B transformation [5] - The partnership aims to capture market share and establish long-term Software-as-a-Service (SaaS) dominance in the region [5]

Core Viewpoint - Sagtec Global Limited reported strong financial results for the fiscal year 2024, achieving a record revenue of US$11.6 million, reflecting a 78% year-over-year growth, driven by robust performance across all core verticals and strategic market expansions [2][3][5]. Financial Results - Total revenue for fiscal year 2024 was US$11.6 million, a 78% increase from US$6.5 million in fiscal year 2023 [3][4]. - Revenue from services surged by 122% to US$6.9 million, while revenue from tangible products grew by 50% to US$4.8 million [4][6]. - Gross profit increased by 49% year-over-year to US$2.8 million, with EBITDA standing at US$2.1 million, reflecting a 17.7% margin [5][10]. - Net income for fiscal year 2024 was US$1.6 million, up from US$1.0 million in fiscal year 2023, with earnings per share increasing by 56% to US$0.14 [7][11]. Cost Structure - Cost of service increased by 140% to US$5.9 million, driven by higher server capacity and maintenance expenses [8][14]. - Total cost of sales reached US$8.9 million, an 89% increase from US$4.7 million in fiscal year 2023 [7][8]. Cash Position and Capital Allocation - Net cash generated from operating activities was US$1.3 million, a 134% increase from US$0.5 million in fiscal year 2023 [12]. - Cash and cash equivalents improved significantly to US$82 thousand, compared to -US$52 thousand in the previous year [15]. Strategic Focus - The company aims to accelerate expansion into key regional markets, including Indonesia and Hong Kong, to capitalize on the growing demand for its innovative solutions [2]. - Sagtec is shifting its business model away from rental services to direct machine sales, enhancing its operational efficiency [6]. Company Overview - Sagtec Global Limited specializes in customizable software solutions, primarily serving the Food & Beverage sector, and also operates power-bank charging stations across Malaysia [16].

Company Classification and Ownership - The company is classified as an emerging growth company and may take advantage of reporting exemptions until it no longer qualifies, which could occur when total annual gross revenue reaches at least $1.235 billion[50]. - The company has a 98.04% ownership of Sagtec Group Sdn Bhd, which provides customizable software solutions, and a 94.95% ownership of CL Technologies, also engaged in customizable software solutions[64][65]. - Mr. Ng Chen Lok owns approximately 79.05% of the issued and outstanding Ordinary Shares prior to the continued offering, which will reduce to 68.03% post-offering[76]. Customer and Vendor Concentration Risks - The company has derived a substantial portion of its revenue from a limited number of customers, exposing it to customer concentration risks[69]. - The top five customers accounted for 73.16%, 63.63%, and 71.63% of total revenue for the years ended December 31, 2022, 2023, and 2024, respectively[78]. - Two vendors accounted for 30.69%, 49.04%, and 60.88% of the cost of sales for the years ended December 31, 2022, 2023, and 2024, respectively[80]. Operational and Regulatory Risks - The company is subject to various laws and regulations in Malaysia, which may impact its operations and business strategies[69]. - The company may not be able to obtain necessary approvals or certifications for its software solutions in Malaysia, affecting its operations[69]. - The company may face difficulties in securing necessary registrations and licenses for business plans, which could lead to fines or legal actions[72]. - Compliance with changing regulations may increase costs, adversely affecting financial performance[105]. Management and Personnel Risks - The company is dependent on key management personnel and skilled staff, and may face disruptions if it cannot retain or attract suitable replacements[69]. - The company is dependent on key management personnel, particularly Mr. Ng Chen Lok, whose loss could adversely affect business operations[88]. Financial Performance and Risks - The company relies on dividends and other payments from subsidiaries for cash requirements, and any restrictions on these payments could materially affect liquidity and financial condition[73]. - The company may not be able to obtain financing on favorable terms, which could impact its ability to develop software technology[83]. - The company’s performance is influenced by regional and worldwide political, regulatory, and economic conditions, which are beyond its control[82]. - The company faces risks from fluctuations in foreign currency exchange rates, which could impact its financial results[69]. - The company is exposed to foreign currency exchange risks, as overseas sales and procurement are denominated in Malaysian Ringgit[102]. Competition and Market Risks - Increased competition in the software solutions market in Malaysia and the region may affect the company's market share and growth[69]. - Customer loyalty and brand goodwill are critical; any major lapses in software sales or negative publicity could harm profitability[91]. - A significant failure in quality control systems could materially affect business and operating results[92]. - Supply chain interruptions have not materially impacted operations in recent financial years, but future disruptions could affect revenue and profitability[96]. Financial Metrics and Projections - The company reported a profit sensitivity of approximately RM16,707 for 2024, RM10,430 for 2023, and RM2,571 for 2022 with a 50 basis point change in interest rates[332]. - As of December 31, 2024, the company expects trade receivables to be RM8,409,351, with a provision for expected credit loss rate of 7.82%[337]. - The total bank borrowings due within less than 1 year are projected to be RM773,744 for 2023 and RM976,072 for 2024[334]. - The company’s debt-to-equity ratio is managed to comply with debt covenants and regulatory requirements[339]. - The company’s expected credit losses decreased from RM138,728 at the beginning of the year to RM90,205 by December 31, 2022[336]. Shareholder and Market Considerations - The company intends to list its Ordinary Shares on the Nasdaq Capital Market, but must maintain certain financial levels to do so[114]. - The trading price of the company's Ordinary Shares may be volatile, influenced by market and industry factors, potentially leading to substantial losses for investors[116]. - Factors contributing to share price volatility include limited market quotations, reduced liquidity, and potential classification as "penny stock," which could impose stricter trading rules[117]. - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation for returns on investment[125]. - If the company is classified as a Passive Foreign Investment Company (PFIC), U.S. taxpayers holding its securities may face adverse tax consequences[128]. - The company may choose to exempt itself from certain corporate governance requirements under Nasdaq rules, which could affect shareholder protections[132]. - The rights of shareholders to take action against directors and the fiduciary duties of directors are governed by British Virgin Islands law, which may offer less protection compared to U.S. laws[137]. - The company may face difficulties in protecting shareholder interests due to the lack of reciprocal enforcement of U.S. court judgments in the British Virgin Islands[135]. - Low trading volumes of the company's Ordinary Shares could lead to significant price fluctuations and challenges in liquidating investments[122]. - The company may experience extreme stock price volatility, particularly as a small-cap company with a relatively small public float[121]. - The management has discretion over the use of net proceeds from offerings, which may not necessarily lead to increased share price or profitability[127]. Economic Environment and Inflation - Malaysia's inflation rate was 2.5% for the year ended December 31, 2023, down from 3.3% in 2022, indicating a moderate inflation environment[341]. - The projected inflation rate for 2024 is 1.7%, suggesting continued stability in the economic environment[341]. - The company anticipates no material impact from inflation on its operations, reflecting confidence in its financial resilience[341]. - The increase in total equity and capital positions the company well for future investments and market expansion[340]. - The company is likely to focus on maintaining a balanced gearing ratio while pursuing growth opportunities[340].

Group 1 - Sagtec Global Limited will release its financial results for fiscal year 2024 on April 30, 2025, before market opening [1] - An earnings call will be held at 08:00 a.m. Eastern Time on the same day to discuss the financial and business outlook [2] - The company is eager to share its progress and growth experienced during fiscal year 2024 with investors, as stated by the CEO [3] Group 2 - Sagtec is a leading provider of customizable software solutions, primarily serving the Food & Beverage sector [4] - The company also offers software development, data management, and social media management services to enhance operational efficiency across various industries [4] - Sagtec operates power-bank charging stations at 300 locations across Malaysia through its subsidiary [4]