Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 71

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 5
Chunk 71
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 System
Development recorded RM52.0 million ($11.0 million) for the year ended June 30, 2024, as compared to RM 219.5 million ($47.0 million)
for the year ended June 30, 2023. The decrease of RM167.5 million ($36.0 million) or 76.3% was due to the shift in the IoT Smart Agriculture’s
business model from one-off sales to recurring income in 2023. Although this has led to a decrease in revenue, the new model allows us
to price our systems more competitively and will provide more consistent and staggered revenue.

Cost of revenue. For the year ended
June 30, 2024, the cost of revenue decreased by RM113.7 million ($24.5 million) or 59.1% to RM78.5 million ($16.6 million), when compared
with RM192.2 million ($41.2 million) for the year ended June 30, 2023, which was in line with the decrease in revenue. The cost of revenue
included amortization of intangible assets of approximately RM24.7 million ($5.2 million) and RM19.2 million ($4.1 million) for the years
ended June 30, 2024 and 2023, respectively.

                                                  For the years ended June 30,                                                                                
                                                  2023                                                                2024                                    
                                                                                                                                                              
                                                  (in thousands)                                                      (in thousands)                          
                                                  RM                                             USD                  RM                                      
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  IoT Smart Home and Building                                                         2,000      $           428                             300          64  
  IoT Gadget Distribution                                                            18,557                3,975                           4,532         960  
  IoT Smart Agriculture & System Development                                        171,655               36,765                          73,690      15,605  
  Total                                                                             192,212      $        41,168                          78,522      16,629  

Other income. For the year
ended June 30, 2024, the other income increased by RM0.8 million ($0.1 million) or 104.3% to RM1.6 million ($0.3 million), when compared
with RM0.8 million ($0.2 million) for the year ended