Guardforce AI Co (GFAI) announced strong financial results and a positive business update for the first half of 2024, ending June 30th. Despite a slight decline in net revenue due to currency exchange fluctuations, the company demonstrated robust growth in key areas.
Revenue for the secured logistics business saw a commendable 5.2% year-over-year increase, showcasing the strength of Guardforce’s operations. Notably, gross profit surged by a remarkable 50% year-over-year, fueled by improved gross profit margins and cost control initiatives. This growth was further supported by the expanding GDM and Cash-In-Transit businesses catering to retail clients.
Guardforce achieved a significant turnaround in its bottom line, reporting an adjusted net income of $0.1 million for the first half of 2024, a stark contrast to the adjusted net loss of $1.8 million recorded in the same period last year. This improvement can be attributed to a 25.7% reduction in selling, distribution, and administrative expenses, along with a substantial 82.5% year-over-year decrease in operating losses, primarily driven by reduced fixed asset depreciation and inventory provisions. As of June 30, 2024, Guardforce boasted a healthy cash position of $15.5 million.
Lei (Olivia) Wang, Chair and CEO of Guardforce, emphasized the company’s strategic focus on developing GFAI Agents, which serve as the core technology for its AI-driven travel and purchase solutions. She highlighted the company’s commitment to high-margin services within the retail and travel sectors, coupled with effective cost control measures, leading to positive results. These efforts have resulted in an expansion of services to over 25,000 retail stores, a shift to positive adjusted net income, and a substantial 50% increase in gross profit during the first half of 2024 compared to the same period in 2023.
Guardforce demonstrated its commitment to securing long-term contracts with key clients, driving growth in higher-margin solutions. In Thailand, Guardforce Cash Solutions Security (GFCS) secured a five-year contract to operate a Consolidate Cash Center (CCC) in Chiang Mai. This win positions GFCS as the largest CCC operator on behalf of the Bank of Thailand, managing 50% of its CCC operations. Meanwhile, Beijing Wanjia Security System Limited, a subsidiary of Guardforce, secured two long-term contracts with existing key clients, expanding security alarm solutions to an additional 3,900 stores, representing an over 50% increase year over year. This expansion brings the total number of stores serviced by Beijing Wanjia to 12,000 across Mainland China. Overall, Guardforce’s security sector now serves over 25,000 retail stores.
Guardforce’s commitment to innovation is evident in the development of GFAI Agents, the cornerstone technology for its AI Purchase and AI Travel Solutions. The company has also launched a decentralized spatial computing solution that leverages the unused computing power of robots to process complex tasks beyond advertising. This innovative approach showcases Guardforce’s commitment to pushing boundaries and leveraging technological advancements to create value for its clients.
GFAI stock closed 0.88% higher at $1.15 on Monday, reflecting investor confidence in the company’s strong performance and promising future prospects.
