Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 63

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 5
Chunk 63
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 in providing system development, supply, installation, commissioning, testing and sale of smart systems that include
IoT concept and functionality onto existing systems across various industries. We believe there are significant untapped opportunities
to win new large enterprises across different industries in Malaysia and the ASEAN region. In addition to large enterprises, we also seek
to work with smaller, fast-growing companies that require a different set of services that allow us to test new offerings and develop
new capabilities.

Our customers’ financial condition
and ability to make payments. Our customers generally purchase our products on credit, and as a result, our results of operations
and financial condition may be adversely affected if our customers experience financial difficulties. We provide a long credit period
of approximately 210 days to some large customers to secure contracts from them. Although we had significant amounts of accounts receivable
as of the end of fiscal 2025, we were able to collect all of such accounts receivable subsequently. We manage credit risk related to our
customers by performing periodic evaluations of credit worthiness and applying other credit risk monitoring procedures.

Our ability to complete IoT projects on
schedule. All of our projects have agreed milestones and specific completion dates. Our ability to meet agreed milestones depends
on our ability to manage overall projects as well as product sourcing and supply chain. We source hardware and software products for our
IoT projects from Malaysian suppliers. Proximity to origin enables us to develop stronger relationships with local suppliers and contractors,
which gives us access to a stable supply of products and services. In addition, we lay out specific and measurable metrics in advance
and remain focused and disciplined through the life of the projects which enable us to promptly identify any underlying issues and resolve
them proactively. We believe that our strong project management ability and procedures are key to ensuring a high level of completion
rate.

In addition, other significant
factors affecting our performance and results of our operations include:

  The global macroeconomy;  

  Wage rates and operating costs in Malaysia;  

  Changes in foreign exchange rates, particularly fluctuations in exchange rate between the U. S. dollar and the Ringgit Malaysia;  
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  Our ability to retain existing clients, as well as to increase our revenue from existing clients by expanding services provided to them;  
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  Our ability to provide favorable pricing