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].
ARB IOT (ARBB) - 2022 Q4 - Annual Report