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].
ARB IOT (ARBB) - 2023 Q2 - Quarterly Report