GFAI stock rose more than 50% on January 14, 2022, after the company announced it was expanding in China.
Guardforce AI Plans to Expand Robotics as a Service (RaaS) to China’s Greater Bay Area
On January 14, 2022, Guardforce AI Co., Limited (NASDAQ:GFAI)(NASDAQ:GFAIW), an integrated security solutions provider, announced today, the planned expansion of its Robotics as a Service (RaaS) offering with the proposed acquisition of Shenzhen Keweien Robot Service Co., Ltd (“SZ”) and Guangzhou Kewei Robot Technology Co., Ltd (“GZ”). The proposed acquisition is scheduled to be completed by the end of February 2022.
The purchase price will be based upon a valuation that is equal to 0.55-times five years (from year 2022 to year 2026) projected average revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... for both SZ and GZ, which is estimated to be US$10,000,000 and will be paid in a mix of cash (10%) and Company restricted shares (90%) at price per share US $4.20. The acquisition is subject to, among other things, the satisfactory completion of due diligence by the Company, the entry into definitive agreements and any required third-party consents.
Lei Wang, CEO of Guardforce AI, commented, “This strategic acquisition is emblematic of Guardforce AI’s growth strategy of acquiring successful companies that are leaders in their field. This development is expected to contribute to our goal of scaling operations while providing swift entry into highly evolving markets. China’s surging focus in robotics development and AI applications makes this proposed acquisition a natural fit for us. As a result of this proposed acquisition, we will gain an incredibly experienced and established sales team. Upon the completion, SZ and GZ will benefit from Guardforce AI’s global scale and presence, allowing them enhanced international opportunities.”
SZ and GZ are based in the Greater Bay Area, one of the fastest-growing economic regions in China with both Shenzhen and Guangzhou ranking among the top 10 largest Chinese cities and in the top 30 globally. SZ and GZ derive revenues from AI robotic services which automate repetitive tasks, making them less labor intensive in the hospitality, healthcare, property management, and government sectors.
Guardforce AI Co. Ltd. is a leading integrated security solutions provider that is trusted to protect and transport the high-value assets of public and private sector organizations. Developing and introducing innovative technologies that enhance safety and protection, Guardforce AI helps clients adopt new technologies and operate safely as the Asia Pacific business landscape evolves.
Guardforce sees FY22 revenue $55M-$60M, increasing 66% versus 2021
On January 11, 2022, for the full year 2021, the Company expects: Net revenue of $33M-$35M, representing a decrease of 9.3% to 14.5% versus 2020. For the full year 2022, the Company expects: Net revenue of $55M-$60M, representing growth of more than 66% versus 2021. Inorganic revenues of approximately $21M, representing 36% of total net revenues. Non-cash revenues are expected to expand to approximately $25.5M, representing 44% of total net revenues. Terence Yap, Chairman of Guardforce AI, commented, “As we look towards the future, we are encouraged by the numerous possibilities and opportunities that exist within the global security industry. Throughout 2021, we have remained steadfast in our commitment to our clients, suppliers, staff and other stakeholders as we continue to weather COVID-related challenges. In 2022, we will continue our consolidation strategy to expand our geographical presence, technological capabilities and scale.” “The guidance we have provided today highlights our commitment and confidence in successfully building a truly integrated security solutions provider,” Yap added. “We will continue to focus on technology related solutions such as robotics, AI and cybersecurity. Our strategy of diversifying revenue streams to mitigate business risk and expand our business via strategic consolidations will continue. We are excited by the opportunities that lie ahead, and we look forward to continuing to execute on our growth strategies to deliver greater value to our shareholders.”
Guardforce AI Issues Shareholder Letter
On January 5, 2022, Guardforce AI Co., Limited (NASDAQ:GFAI)(NASDAQ:GFAIW), today issued a letter to shareholders from Terence Yap, Chairman of Guardforce AI.
2021 was a pivotal year for Guardforce AI. We continued our expansion from a cash logistics business to an integrated security solutions provider and entered the U.S. capital markets. We founded Guardforce AI in 2018 to acquire Guardforce Cash Solutions Security (Thailand) Co., Ltd., or GF Cash, a secured logistics company with almost 40 years of experience delivering comprehensive services for door-to-door cash collection and delivery, supporting banks, government organizations, multinationals, blue chip companies, SMEs and retailers in Thailand. Today, we have rapidly evolved through a series of organic growth strategies and acquisitions to provide secured logistics, robotics applications and cybersecurity services in Asia and the U.S.
In 2020 we introduced robotics solutions for our customers in Thailand and the Asia Pacific region with the launch of AI powered robots managed by an Intelligent Cloud Platform (ICP) for deployment to medical institutions, office buildings, business units, campuses, residential communities and apartments. As robotics revenues continue to scale during 2021, we entered two new growth markets within the Asia Pacific region via the merger of Macau GF Robotics Limited and GF Robotics Malaysia Sdn. Bhd, which is expected to close early in 2022. Both locations provide great opportunities for robotics solutions, especially in the education, hospitality, retail, and corporate sectors in this fast-growing region.
Our robotics segment continued to expand with the recent proposed acquisition of SBC Global Holdings Inc in the United States. The company provides autonomous robotics solutions that drive business continuity and community health – enabling healthier, safer and more efficient offices, residential and commercial real estate, schools, airports and many other sectors. We believe the acquisition will further empower our operations and ability to deploy robotic and technology solutions in the United States and Canada. This acquisition is also expected to close early in 2022.
In 2021 our journey towards diversifying our service offerings and geographic reach also grew with a majority acquisition of Handshake Networking Limited. Established in 2004, Handshake is a premier information security consultancy providing network security to multinational corporations in Hong Kong and around the world. The company offers a wide variety of information security consultancy services, including penetration testing and vulnerability assessment, information systems audit, consultancy, computer forensics and security awareness training.
Taken together, our strategic acquisitions and geographic expansion has made Guardforce AI a globally integrated security solutions provider in the cybersecurity, artificial intelligence, robotics and related fields. We believe diversifying our service offerings, international reach and revenue streams will continue as the security industry increasingly adopts advanced technologies and physical security and cybersecurity converge.
Throughout 2021 our ability to achieve our growth strategy and seek new opportunities was supported by our secure logistics business in Thailand. During the year we were selected as the authorized operator of the Consolidated Cash Center in the Khon Kaen province of Thailand and Consolidated Cash Center (CCC) for Hadyai CCC, each for five years. Winning these bids is further evidence that we are increasing our stature with the Thai government while also increasing our market leading position in the cash center outsourcing market.
Operationally, 2021 was marked by our entrance into the U.S. capital markets with a successful initial public offering with gross proceeds of approximately $15 million, before underwriting discounts and other offering expenses. Combined with our over $7.7 million cash balance as of June 30, 2021, we are confident our acquisition program will have sufficient capital to fund its pipeline of accretive new partnerships. The listing of our shares on the Nasdaq represents a significant milestone for Guardforce AI. We believe a Nasdaq listing will help elevate the Company’s public profile, expand our shareholder base, improve liquidity and enhance shareholder value.
Looking ahead, our momentum will continue to build as we focus on expanding our Robots as a Service (RaaS) platform to efficiently offer more AI value-added services for our customers. We are accelerating the development of new cybersecurity and robotics/AI applications in response to market needs and feedback from our customers. We will continue to seek strategic opportunities to acquire or partner with leading security industry companies to enhance our technology capabilities and expand our international presence.
To our shareholders and all our partners, thank you for your continued support, and I look forward to another year of success in 2022.
Chairman of Guardforce AI
📺 Year End Video 2021: Change | Guardforce AI[embedyt] https://www.youtube.com/watch?v=ppFhTvOC76U[/embedyt]
📈 GFAI Stock Technical Analysis
Large players volume has exploded higher which is bullish. The short term trend is negative, the long term trend is neutral. GFAI is currently trading in the lower part of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so GFAI is lagging the market.
There is a support zone ranging from 1.14 to 1.16. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also support at 1.07 from a trend line in the daily time frame.
The technical rating of GFAI is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when GFAI stock consolidates and is a good long entry.