Guardforce AI Co Ltd (NASDAQ:GFAI) told investors it made significant strides in 2022 as it developed its integrated artificial intelligence (AI) business while strengthening its already well-established secured logistics business.
Reporting results for the year to December 31, 2022, the company noted a 1.9% decrease in revenue to $34.5 million for the year due to coronavirus (COVID-19), which resulted in the shutdown of some customers’ facilities in its secured logistics business. Revenue at its robotic AI segment surged 245% over the year, although it remains a small percentage of total revenue, the company said.
The company highlighted several key contract wins for its secured logistics business as it diversified its services by targeting the businesses in the retail sector that handle large amounts of cash, including food and beverage businesses - which it has also identified as potential targets for its robotics business.
Contracts include a five-year deal with the Bank of Thailand to operate Consolidated Cash Centers (CCCs) in the cities of Ubonratchathani and Phitsanulok in Thailand.
More recently, it entered two long-term contracts with pre-existing clients, including a three-year contract with a top retail store in Thailand and a five-year contract for its secured logistics and cash handling services with a tollway company.
Expansion into mainland China
“We continue to strengthen our presence in the Asia Pacific region, as we expanded into mainland China, one of the largest and fastest-growing markets for robotics and security solutions,” Guardforce AI chairwoman and CEO Lei (Olivia) Wang said in a statement.
“During 2022, we completed three acquisitions in China, providing us with immediate access to thousands of valuable clients. In February 2023, we acquired key assets from Shenzhen Kewei Robot Technology Company Ltd in China, which provided us rights to the permanent use of Kewei’s patents and expanded our customer base, including premier Fortune 500 clients.”
Wang said the Kewei acquisition further strengthens Guardforce’s capabilities in developing robotic solutions for its customers as it aims for a significant share of the fast-growing, multi-billion-dollar robotics as a service (RaaS) market.
“With an expanded global footprint and growing AI resources, we are expanding our RaaS solutions, such as Artificial Intelligence of Things (AIoT) robot advertising, AI-based support for hotels, and other uses of AI services,” she added. “We are witnessing particularly strong demand within the tourism industry.”
The company said it has also made good progress in developing its AI Intelligent Cloud Platform (GFAI ICP), with three hubs now set up in mainland China, the US, and Hong Kong It also launched its AIoT Robot Advertising (RA) model and its mobile application, GFAI AD, on the Apple App Store in Asia.
Partnerships
In the hospitality sector, it partnered with Blue Pin to launch its Smart AI Hotel solution, initially in Hong Kong. It said the solution allows customers to use Guardforce’s concierge robots to make bookings online, check-in, and check out.
Another partnership is to co-develop a contactless travel robotic solution known as Robot Travel Agency, together with Riversoft Inc, the company said.
"In summary, we have built a highly scalable business model and expect to resume strong organic revenue growth in 2023, in addition to accelerating the rollout of our RaaS platform through both acquisitions and organic growth strategies,” Wang concluded.
As of December 31, 2022, the company had cash and cash equivalents (including restricted cash) of approximately $8.2 million, down from $15.9 million a year earlier.
Contact the author at stephen.gunnion@proactiveinvestors.com