Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 64

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 5
Chunk 64
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;  

  Our ability to expand and deepen the quality, range and diversity of our portfolio of service offerings while maintaining high quality standards;  

  Our ability to maintain and strengthen a strong brand and corporate reputation;  

  Our ability to continuously innovate, and continuously remain at the forefront of emerging technologies and related market trends; and  

  Our ability to identify, integrate and effectively manage future acquisitions.  

Our Reportable Segment

An operating segment is defined as a component
of an entity for which discrete financial information is available and whose operating results are regularly reviewed by our Chief Executive
Officer. We report our results of operations in two reportable segments dedicated to (i) the provision of hardware and software of IoT
solutions and (ii) investment holding and others. The Chief Executive Officer makes decisions about allocating resources and assessing
performance based on the Company as a whole. We provide breakdowns by business lines for certain components of our operating results as
appropriate.

Key Components of Results of Operations

Revenue

Our revenue mainly consists of sales of (i) IoT
systems, devices and engineering solutions and (ii) system development solutions from IoT Smart Building & Engineering and IoT Smart
Agriculture & System Development for the fiscal year ended June 30, 2025. Revenue from sale of goods is recognized at a point in time
when the Group satisfies a performance obligation by transferring a promised good (i. e. an asset) to a customer. An asset is transferred
as and when a customer obtains control of that asset which coincides with the delivery of goods and acceptance by the customer. There
is no material right of return and warranty provided to the customers on the sale of goods and there is no significant financing component
in the revenue arising from sale of goods as the sales are made on the normal credit terms.

We carry out services
of system development, supply, installation, commissioning, testing and sale of smart systems which include IoT concept and functionality
to the existing systems across various industries. The majority of the sale of goods contracts relate to the sale of IoT network
hardware and IoT vending machines.

Cost of Revenue

Cost of Sales of Goods

Cost of sales of goods
mainly consists of cost of products purchased from third party suppliers.

Total Expenses

Total expenses consist
of depreciation expenses, personnel expenses, general administrative expenses, other operating expenses and interest expense of lease
liabilities.

Other Income

Other Income consists
of bank interest income.

Tax Expenses

Malaysian income tax is calculated at the statutory