CEO’S MESSAGE
Dear Shareholders,
It is my pleasure to present the Annual Report of SMI Vantage Limited (“SMI Vantage”, “the Company” or with its subsidiaries “the Group”) for the financial year ended 31 March 2024 (“FY2023”).
The business outlook for FY2024 is fraught with many uncertainties from the rising trade tensions between the U.S.A and China to the military conflicts in Ukraine and the Middle East, and the geopolitical tensions in the South-China Sea. Additionally, while inflationary pressures may have peaked, the era of low interest rates is behind us, bringing with it a period of slower growth for the global economy.
SMI Vantage has been working tirelessly in FY2023 to navigate these challenges and we are pleased to share with you the progress made in the following areas:
1. Pivot to New Economy Sectors
SMI Vantage announced in June 2021 its intention to pivot the Company towards the New Economy sectors, including Software-as-a-Service (SaaS), innovative F&B concepts (for example Robochef) and digital-mining. This strategic shift has largely proven to be the correct one as the Company has capitalised on the strong trends in these emerging industries by identifying viable strategic businesses and investments that have the potential to contribute positively to the Company both immediately and in the long term.
2. Acquisition of 200 new Bitman Digital-Mining Machines
SMI Vantage acquired 200 digital-mining machines from The9 Limited, a diversified Nasdaq-listed Company. This acquisition has strengthened SMI Vantage’s capabilities in the digital-mining business in hashrate and mining output and solidified our partnership with a reputable industry player. We are committed to continually upgrade our mining rigs to stay at the forefront of this rapidly evolving industry. Our mining operations have been running smoothly, and we have maintained an impressive operational uptime of over 98% across all our facilities. This operational excellence is a testament to the hard work and dedication of our mining teams. Looking ahead, we will continue to explore opportunities to expand our mining footprint through strategic acquisitions and partnerships. With our strong operational foundation and commitment to innovation, we are well-positioned to capitalise on the growing demand for cryptocurrency and deliver sustainable value to our shareholders in the coming year.
3. Installation of Containerized Bitcoin-Mining Facilities
SMI Vantage successfully installed its containerized Bitcoin-mining facilities in East Malaysia, taking advantage of the cost efficiencies, sustainability and connecting to power availability of ample ‘Green’ hydropower energy there to further expand our mining operations. This ramp-up benefited from the rise in the price of Bitcoin due partly to the Bitcoin-halving event that took place in May 2024 as well as the US SEC’s approval for the launch of 11 spot Bitcoin ETFs in January 2024. We will continue to innovate in areas such as energy efficiency, heat management, and mining optimization to drive further improvements in our operations.
4. RoboChef Initiative
SMI Vantage’s RoboChef initiative, focused on robotics in the food and beverage (F&B) industry, continues to gain traction with two successful deployments in Singapore thus far. We are currently reviewing the insights gleaned and learnt from operating these 2 outlets and will look at improving efficiencies as well as explore the possibility of new locations to deploy additional outlets if viable opportunities arise.
Looking Ahead with Confidence
SMI Vantage has demonstrated its resilience and ability to adapt to changing market conditions by pivoting towards New Economy sectors and leveraging the expertise and experience within the management team. We are confident in our ability to navigate the current headwinds and emerge even stronger.
As we look ahead to the coming year, we remain focused on executing our strategy, driving innovation, and delivering sustainable value to our shareholders. We are excited about the opportunities that lie ahead and look forward to sharing our success with you. Thank you for your continued support and trust in SMI Vantage.
MARK BEDINGHAM
President and Chief Executive Officer