Kuala Lumpur, Malaysia, April 14, 2025 (GLOBE NEWSWIRE) -- ARB IOT Group Limited ("ARB IOT" or the "Company") (NASDAQ:ARBB) today announced that it has, through its indirect wholly owned subsidiary, ARB R1 Technology Sdn Bhd, successfully entered into a contract valued at approximately USD53.0 million to deliver cutting-edge AI data centre server solutions to Whizzl Group. This agreement represents a major step forward in advancing AI infrastructure capabilities for the AI industry in Malaysia. Under the te ...

Kuala Lumpur, Malaysia, April 03, 2025 (GLOBE NEWSWIRE) -- ARB IOT Group Limited ("ARB IOT" or the "Company") (NASDAQ:ARBB) has introduced its advanced AI-powered plantation mapping system which is seamlessly integrated with drone technology ("Smart AI Drone"), designed to revolutionise plantation management. This innovative technology aims to optimize the plantation mapping processes, enhance efficiency and crop yields, and boost sustainability and productivity in modern agriculture. Equipped with advanced ...

Core Insights - ARB IOT Group Limited has launched an AI-powered fertilizer system integrated with a Smart AI Robot, aimed at transforming modern agriculture through optimized fertilization and sustainable farming practices [1][4][5] Group 1: Product Features and Innovations - The Smart AI Robot is designed for unmanned operations with features such as modular design, all-terrain capability, centimetre-level positioning, and ultra-long endurance [2][10] - The AI-powered fertilizer system employs machine learning algorithms and real-time soil data analysis to automate fertilizer application, thereby minimizing waste and maximizing crop yield [4][10] - The integration of IoT technology allows for real-time monitoring of environmental factors, enabling farmers to make data-driven decisions [7][10] Group 2: Market Context and Challenges - By 2027, it is projected that 35% of Malaysia's oil palm land will be overaged, highlighting the need for advanced agricultural solutions [3] - Currently, only 17% of oil palm land has trees in the optimal age range for effective motorized cutting, indicating inefficiencies in traditional farming methods [3] Group 3: Benefits of the AI-Powered System - The system promotes precision application of fertilizers, reducing both overuse and underuse, which supports eco-friendly farming practices [10] - Automation through the Smart AI Robot decreases reliance on manual labor, enhancing operational efficiency across large farmlands [10] - The conversion of solid fertilizers to liquid form leads to cost savings by improving absorption efficiency and reducing waste [10]

Core Insights - ARB IOT Group Limited has secured an additional order to manage approximately 2,000 acres of palm oil plantation, which is expected to increase the company's yearly recurring revenue by approximately USD 13 million [1][2][3] Company Overview - ARB IOT Group Limited provides complete solutions for the integration of Internet of Things (IoT) systems and devices, offering a wide range of services including system integration and support [4] Market Position - The latest order reflects the growing demand for the Smart IOT Palm Farming System and highlights the strong relationship between ARB IOT and its exclusive wholesaler, Whizzl, in Sabah and Sarawak, Malaysia [2][3] - The company is committed to scaling its business and enhancing capabilities to meet evolving market demands, reinforcing its position as a key player in the industry [3]

Company Overview - ARB IOT Group Limited has announced an order to manage 3,000 acres of palm oil plantations using its AI Smart IoT Palm Farming System, aimed at enhancing operational efficiency and improving yield in the Sabah region of Malaysia [1] - The Smart Farming System leverages IoT technology for real-time monitoring, data analytics, and automation, supporting precision fertilization and pesticide application, thereby driving sustainability and profitability in the palm oil sector [3] Industry Context - Malaysia is the world's second-largest producer and exporter of palm oil, exporting around 15 million metric tons valued at approximately USD 30.4 billion in 2022 [2] - The palm oil industry contributed around 35 billion Malaysian ringgit (approximately USD 7.8 billion) to Malaysia's total gross domestic product [2] Strategic Partnership - The partnership with Whizzl Sdn Bhd is a significant milestone for ARB IOT, expected to generate additional yearly recurring revenue of approximately USD 20 million [4] - Whizzl will play a key role in marketing and distributing ARB IOT's Smart IoT Palm Farming solutions, enhancing accessibility for palm plantation owners and agribusinesses [5][6]

Core Insights - ARB IOT Group Limited has appointed Whizzl Sdn Bhd as the exclusive wholesaler, sole distributor, and system integrator for its Smart IOT Palm Farming System in Sabah and Sarawak, Malaysia [1][2] Company Overview - ARB IOT Group Limited specializes in providing complete solutions for the integration of Internet of Things (IoT) systems, offering a wide range of services from design to project deployment [5] Product Details - The Smart IOT Palm Farming System aims to enhance efficiency, optimize resource allocation, and improve productivity for palm plantation owners and farmers through real-time monitoring, data analytics, and automation [3] Strategic Partnership - The partnership with Whizzl is seen as a significant milestone for ARB IOT, aimed at expanding the reach of its technology to key regions in Malaysia, thereby benefiting more farmers and plantation owners [4]

Core Insights - ARB IOT Group Limited has appointed Whizzl Sdn Bhd as its exclusive wholesaler, sole distributor, and system integrator for ARB AI workstations and servers in Sabah and Sarawak, Malaysia, to meet the increasing demand for AI solutions [1][4] - The ARB AI workstations and servers include the ARB 222 and ARB 333 models, designed for server and edge computing, ensuring seamless integration across the AI ecosystem [2] - The CEO of ARB IOT highlighted the expansion into East Malaysia as a significant milestone, indicating strong growth prospects due to the rising demand for AI technology [3] Company Overview - ARB IOT Group Limited provides comprehensive solutions for the integration of Internet of Things (IoT) systems, offering a wide range of services from design to project deployment [4]

Core Insights - ARB IOT Group Limited has signed a supply agreement with Gajah Kapitalan Sdn Bhd to deliver 500 units of ARB-222 AI servers valued at approximately US$45 million, indicating a strong commitment to the AI and data center sectors [1][2][3] Company Overview - ARB IOT Group Limited specializes in providing complete solutions for the integration of Internet of Things (IoT) systems, offering a wide range of services from design to project deployment [7] - The company aims to enhance operational capabilities and deliver significant cost savings and efficiencies through its advanced AI server solutions [3][4] Industry Context - The partnership with GKSB highlights the growing demand for AI products and the increasing importance of technological innovation in empowering businesses in Malaysia [2][5] - The deal positions ARB IOT to capitalize on the rising demand for digital assets and advancements in AI, fostering sustainable growth and value creation [2]

Core Viewpoint - ARB IOT Group Limited has signed a Memorandum of Understanding to establish an AI data centre experimental laboratory in collaboration with a UKM startup and Gajah Kapitalan Sdn Bhd, aimed at advancing AI research and application development in Malaysia [1][4][6]. Group 1: AI Data Centre Initiative - The AI data centre experimental laboratory will provide a dedicated environment for AI research, application development, testing, and deployment, featuring state-of-the-art infrastructure [2][5]. - The facility will utilize ARB 222 and ARB 333 series AI servers, which are designed for high-performance AI, deep learning, and enterprise computing, optimizing for AI inference and data processing [3][7]. Group 2: Collaboration and Commitment - This initiative aligns with the Malaysian government's efforts to enhance AI capabilities and foster a community of data scientists and engineers [4][6]. - The MOU signifies a commitment to collaboration in knowledge exchange within the AI industry, with the company responsible for the laboratory's architecture and design [4][6]. Group 3: Market Positioning and Growth - The establishment of the AI data centre positions the company to capture significant growth in the AI-driven economy, promoting sustainable AI server solutions [6][8]. - The lab will serve as a platform for showcasing AI applications and advancements, contributing to the ongoing growth and innovation in the AI sector [7][9]. Group 4: Educational and Research Impact - The AI data centre is expected to elevate AI research and development, focusing on creating efficient AI models with lower energy consumption [9]. - The collaboration with IVI-UKM aims to nurture and incubate talent in the AI industry, enhancing the region's capabilities in AI technologies [9][10].

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].