VCI Global Limited

Good morning everyone, and welcome to VCI Global Fiscal Year 2024 Earnings Conference Call. Joining me today to discuss our results are Victor Hu, our Group Executive Chairman and CEO, and Zifeng Ang, our CFO. Before we begin, I would like to take this opportunity to remind you that our remarks today may contain forward-looking statements, which are subject to future events and uncertainties. Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations, are forward-looking statements. forward-looking statements involve inherent risks and uncertainties, and our actual results may differ materially from these forward-looking statements. All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our followings with SES. This presentation also includes certain non-GAAP financial measures which we believe can be helpful in evaluating our performance. However, those measures should not be considered substitutes for comparable GAAP measures. The accompanying conciliation information related to those non-GAAP and GAAP measures can be found in our earnings press release issued earlier today. Without further ado, I will now turn the call over to our Group's Executive Chairman and CEO, Mr Victor Hu.

Thank you, good morning everyone, and thank you for joining the call to discuss our 2024 performance. I am pleased to report a strong year for VCI Global. We achieved a 41% increase in revenue, reaching $27.8 million and $0.4 million increase in net income, amounting to US$7.6 million compared to the previous fiscal year. This remarkable growth was driven by solid performance across all our business segments. Despite a challenging macroeconomic environment, I am particularly proud of the strategic milestone we achieved. While the growth in net profit may appear modest, it reflects deliberate investment we made in building a stronger foundation For example, expanding our team, hiring top talent, and enhancing our infrastructure. These investments are positioning us for accelerated growth and sustainable growth in 2025. One of our standout achievements this year was the success of our technology division solution and consultancy segment. We introduced innovation in generative AI and AI-powered digital human technology, which not only reinforced our vision to lead in the tech space, but also boasted the rapid expansion of our cybersecurity as a service and AI as a Service offerings under VGalancy Memberhood. Our advisory business also saw significant progress. V Capital Consulting Group Limited, or VCCG, our dedicated capital markets advisory division, is preparing for a carve-out IPO. This move reflects our confidence in the long-term potential of the capital market advisory space, even amid broader macroeconomic volatility. To further support our growth, We are expanding our regional footprint with new offices in Singapore aimed at scaling our cybersecurity and capital market advisory services, and in Hong Kong to deepen our presence and client reach across Greater China. This strategy initiative reinforced our position as a regional leader in capital market consultancy. Building on a record-setting year, our strong performance reflects bold strategy execution across high-growth sectors where we see sustained demand. In 2025, we will continue accelerating the development of our cross-factor platform strategy, seamlessly integrating AI infrastructure, C-SaaS, fintech solutions, renewable energy assets, and capital market advisory. Now, I'll turn the call over to Mr. Eng to provide more details on our financial performance.

Thank you, Victor, and thank you again to everyone for joining us today for BCIG's Fiscal Year 2024 Earnings Call. I'm Ang, CFO of VCIG, and I'm pleased to provide an overview of our financial performance. We are proud to have delivered exceptional results in fiscal year 2024. Our revenue rose by 41% compared to the previous year, driven by strong performance across all core verticals. These results validated our long-term strategy and the unwavering dedication of our team. Let's take a closer look at our revenue breakdown. Revenue from business strategy consultancy increased by 1% from US$14.7 million in 2023 to US$14.8 million in FY2024, reflecting overall consistency in performance year-over-year. The company continued to execute high-impact transactions, including the successful Nasdaq listing of Founder Group Limited on October 23, 2024, and YY Group Holding Limited on April 22, 2024. Several other clients are currently progressing through the IPO pipeline, further reinforcing BCI Global's strong positioning and growing credibility within the U.S. capital markets ecosystem. Meanwhile, our technology development, solutions, and consultancy segments saw remarkable growth revenue surged by 155% to USD 11.4 million in FY2024 compared to USD 4.5 million the previous year. The signal increase was driven by advancement in our generative AI solutions, AI digital human technology and other ongoing projects. We also delivered strong improvement in profitability, Through disciplined cost management, EBITDA rose by 13% to $8.3 million in FY2024, representing a 30% margin on revenue. Net income came in at $7.6 million and earnings per share increased by 143%, reaching $0.51. Overall, we are proud of our achievement and the continued improvement in our profitability. Thank you once again for joining us to review our financial results. We look forward to connecting with you at our next announcement.

Thank you, Mr Ang. We would now like to begin the Q&A session as we received a few questions from the floor during the conference. First question is addressed to Mr Victor. Can you elaborate on some of the key financial highlights for fiscal year 2024, particularly areas where VCI Global demonstrated the strongest performance?

Absolutely. In fiscal year 2024, VCI Global delivered strong performance across several key areas. We recorded a 41% increase in revenue, reaching $27.8 million, driven by solid contributions from all our pre-business segments. Our technology division performed exceptionally well, especially in AI and cybersecurity services, fueled by growing demand and innovation, such as AI power solutions, and supported by new projects focused on developing generative AI capabilities and AI digital human technologies, which are gaining strong traction in the market. Net profit rose to US$7.5 million, up from $7.1 million the previous year, despite increased investment in talent, infrastructure and strategic initiatives. This reflects our commitment to building long-term value and readiness to scale for future opportunities. These results underscore our strong execution, diversified business model and forward-looking strategy.

On a more strategic note, can you explain how VCI Global and its cross-sector offerings will benefit shareholders?

VCI Global's cross-sector strategy is designed to create synergies that drive sustainable growth and maximize shareholder value. By integrating key sectors such as AI infrastructure, cybersecurity, fintech solutions, and capital market advisory services, we can offer comprehensive bundled services that address multiple client needs. This not only increases customer lifetime value, but also reduces customer acquisition costs, resulting in higher margins and a more resilient recurring revenue base. Additionally, this diversified approach positions PCI Global to capitalize on emerging trends and tap into high-growth sectors with enduring demand. By strengthening our platform across multiple industries, we provide shareholders with a unique competitive edge and opportunity to benefit from long-term value creation and innovation. Our strategy is about building infrastructure that supports the digital economy which ultimately drives scalability, increases profitability and enhances the stability of our revenue streams. Key factors that directly contribute to the long-term growth and success of VCIGlobal benefiting our shareholders.

With the carve-out IPO of VCCG in the pipeline, is VCIG considering additional carve-out for other business segments? Could you elaborate on the broader strategy behind this approach Additionally, can you provide more details on VCCG carve-out and its growth potential?

The upcoming carve-out IPO of VCCG is part of our broader strategy to incubate high potential business units and unlock their value to public markets. VCCG, our Capital Markets and Strategic Advisory Division, has shown strong momentum, particularly in IPO and M&A services. We expect the IPO to take place in the third quarter of 2025, and this move will not only give VCCG greater visibility and access to capital, but also create added value for VCR global shareholders. This carve-out model enables us to scale efficiently, attract dedicated resources, and accelerate growth while maintaining strategic oversight. While I can't disclose specifics just yet, we do plan to replicate this model across other fast-growing segments, especially in AI and cybersecurity. It's a disciplined way to remain agile, unlock shadow value, and full expansion in high demand verticals.

We also received a question via email asking whether VCI Global has an international expansion strategy beyond the previously mentioned expansions in Singapore and Hong Kong.

We made strong headway in our expansion plans. In the first quarter of 2025, we established offices in Singapore and Hong Kong, and we will be announcing the appointment of country CEOs shortly. Additionally, we are in advance talks with partners and clients in the Middle East and expect to expand into that region very soon. This international footprint is part of our broader strategy to tap into high-growth markets and position BCIG as a truly global player across our technology and consulting verticals. It will also allow us to scale our services, diversify our revenue streams, and better serve clients with cross-border needs.

Given the current geopolitical tensions and a growing interest in AI infrastructure, how is your subsidiary, VGalant, navigating these challenges, especially since VGalant integrates both DeepSix LLM and NVIDIA's GPU? And how does your AI infrastructure stand out in a crowded market?

V-Gallon is strategically positioned to navigate rising geopolitical tension by offering a flexible AI infrastructure that bridges Eastern and Western technologies. Through the integration of DeepSix Advanced LLM and NVIDIA's leading GPU platforms, we deliver a robust region-agnostic solution that minimizes dependency on any single supply chain. This hybrid approach ensures resilience and continuity for our clients, enabling them to access cutting-edge AI capabilities without being limited by regional restrictions or geopolitical risks. By leveraging the strength of both ecosystems, we provide a neutral, globally interoperable platform that stands out in today's fragmented landscape. Our AI-as-a-Service model, DeepEye, is not only cost-efficient, but also built for speed and scalability. Clients can deploy tailored AI solutions powered by LLM, such as DeepSeq or LAMA, and integrated with a range of AI agents within 24 hours. Our system supports both new NVIDIA GPUs and alternative regional hardware, eliminating the need for high upfront capex and specialized talent. This plug and play significantly lowers the barrier to enterprise AI adoption while maintaining performance and adaptability.

VCI Global has developed a proprietary cybersecurity as a service solution. Can you speak to the competitive landscape in this space and what differentiates your platform from the others in the market?

While the cybersecurity space is highly competitive, what sets VCR Global apart is our proprietary cybersecurity as a service solution. CyberSecure, which delivers comprehensive real-time protection at both the hardware and software levels. A key feature of CyberSecure is its automated backup of the user's entire operating system. This allows for immediate data recovery in the event of a breach, including ransomware incidents. This capability is critically important for organizations seeking to ensure business continuity and minimize operational downtime. Furthermore, CyberSecure incorporates military-grade encryption directly into the hardware. This chip-level encryption creates an additional layer of defense, making it significantly more difficult for remote attacks to succeed physical access to the device will be required, which is a far higher threshold for potential trades. The solution is delivered via a substitution model, which is structured to reduce upfront capital expenditure for enterprises while ensuring ongoing access to the latest security updates and trade intelligence, even for on-premises deployments. Ultimately, CyberSecure brings together robust real-time protection, rapid bridge recovery, and resilient hardware level security into one unified platform, which we believe provides a strong value proposition for our clients.

Thank you, Mr. Victor. We appreciate the thoughtful questions from the floor. With all submitted questions addressed, this concludes our earnings conference. I will now hand the mic back to Mr. Victor the Group Executive Chairman and Chief Executive Officer of VCI Global, for his closing remarks.

Thank you again to everyone for being here today and for the engaging questions during the Q&A session. 2024 has been a remarkable year for VCI Global. We achieved record revenue and net income, launched innovative technologies and taken bold steps to scale our cross-sector platform. What we have shared today reflects our unwavering commitment to long-term value creation and strategic execution across high-growth protocols. Looking ahead, 2025 will be a year of continued momentum. We are moving forward with a public listing of VCCG and further scaling our AI and cybersecurity capabilities to be gathered. Our mission remains clear, to build future-ready infrastructure that drives recurring value, lowers acquisition costs, and enhances shareholder returns. On behalf of the leadership team, I want to thank our shareholders, employees, partners and all stakeholders for your continued trust and support. We look forward to delivering another year of strong, sustainable growth together. Thank you and we'll see you at the next update.