Technology
Converge Reports Record Q4 and FY 2023 Results
Published
2 years agoon
By
Gross Sales1 Top $4.0 Billion in FY 2023;
Q4 Marks Consecutive Billion Dollar Quarter
TORONTO and GATINEAU, QC, March 6, 2024 /PRNewswire/ — Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) is pleased to provide its financial results for the three months and fiscal year ended December 31, 2023. All figures are in Canadian dollars unless otherwise stated.
Fourth Quarter 2023 Highlights (year-over-year, unless otherwise noted):
Gross sales1 of $1.08 billion, an increase of $121.9 million or 12.7%;Gross sales organic growth1 of 10.9% and gross profit organic growth1 of 5.7%;Revenue of $651.1 million, an increase of $10.2 million;Gross profit increased 7.5% to $181.5 million representing a gross margin of 27.9%;Adjusted EBITDA1 increased 8.0% to $46.5 million;Net income of $4.8 million, an increase of $9.4 million;Cash from operating activities was $114.5 million, an increase of $84.1 million, compared to $30.4 million for the comparative period in the prior year;Reduced net debt1 by $52.0 million year-over-year and by $97.7 million compared to Q3, FY23 to $209.8 million, representing a Leverage Ratio1 of 1.23x as at December 31, 2023; andProduct backlog2 at the end of the fourth quarter 2023 was $412 million, a decrease of $67 million from the comparative period in the prior year.
Fiscal Year 2023 Highlights (year-over-year, unless otherwise noted):
Gross sales1 of $4.04 billion in the year, up from $3.09 billion, representing an increase of 30.6%;Gross sales organic growth1 of 10.9% and gross profit organic growth of 8.1%;Revenue of $2.71 billion, up from $2.16 billion, representing an increase of 25.0%;Gross profit of $702.9 million, an increase of 27.6% from $550.8 million for the comparative period in the prior yearAdjusted EBITDA1 of $170.3 million, up $27.4 million or 19.2% year over year;Cash from operating activities amounted to $229.5 million, an increase of $188.0 million; andRepurchased 5.3 million shares for an aggregate investment of $17.3 million.
“We are entering 2024 with significant pipeline momentum, propelled by demand for legacy modernizations, for advanced customer-centric solutions, and by the massive surge of interest in artificial intelligence (AI) solutions,” said Shaun Maine, Group CEO. “We are extremely well positioned – strategically, operationally and financially – to capitalize on this tailwind to drive industry-leading growth and to continue improving our margin profile, our visibility and by leveraging our cash generating abilities for the benefit of our shareholders.”
________________________________
1 This is a Non-IFRS measure (including non-IFRS ratio) and not a recognized, defined or a standardized measure under IFRS. See the “Non-IFRS Financial Measures” section of this press release for definitions, uses and a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures.
2 Bookings backlog is calculated as purchase orders received from customers not yet delivered at the end of the fiscal period for Canada and United States.
Financial Summary
In $000s except per share amounts
Q4 2023
Q4 2022
FY 2023
FY 2022
Gross Sales
1,078,663
956,803
4,037,901
3,090,981
Revenue
651,090
640,927
2,705,207
2,164,647
Gross profit (GP)
181,529
168,916
702,880
550,768
Gross profit (GP) %
27.9 %
26.4 %
26.0 %
25.4 %
Adjusted EBITDA
46,505
43,064
170,294
142,868
Subsequent to Quarter-End
On March 5, 2024, the Board declared a quarterly dividend of $0.01 per common share to be paid on March 26, 2024 to shareholders of record at the close of business on March 12, 2024.
Financial Outlook
Converge is providing the following guidance for the three months ended March 31, 2024 (Q1 2024) and fiscal 2024 (Fiscal 2024) as follows:
Q1 2024 Expected
FY 2024 Expected
Gross profit
$170 million – $178 million
$735 million – $760 million
Adjusted EBITDA
$40 million – $44 million
$185 million – $198 million
Conference Call Details:
Date: Wednesday, March 6th, 2024
Time: 8:00 AM Eastern Standard Time
Participant Webcast Link:
Webcast Link – https://app.webinar.net/qvbWB9Znmdx
Participant Dial-in Details with Operator Assistance:
Conference ID: 48044078
Toronto: 416-764-8609
North American Toll Free: 888-390-0605
International Toll-Free Numbers:
Germany: 08007240293
Ireland: 1800939111
Spain: 900834776
Switzerland: 0800312635
United Kingdom: 08006522435
You may register and enter your phone number to receive an instant automated call back via https://emportal.ink/4bgx1AU
Recording Playback:
Webcast Link – https://app.webinar.net/qvbWB9Znmdx
Toronto: 416-764-8677
North American Toll Free: 1-888-390-0541
Replay Code: 044078 #
Expiry Date: March 13th, 2024
Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be required to access the webcast. A live audio webcast accompanied by presentation slides and archive of the conference call and webcast will be available by visiting the Company’s website at https://convergetp.com/investor-relations/.
About Converge
Converge Technology Solutions Corp. is a services-led, software-enabled, IT & Cloud Solutions provider focused on delivering industry-leading solutions. Converge’s global approach delivers advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. The Company supports these solutions with advisory, implementation, and managed services expertise across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.
Summary of Consolidated Statements of Financial Position
(expressed in thousands of Canadian dollars)
December 31, 2023
December 31, 2022
Assets
Current
Cash
$
169,872
159,890
Restricted cash
547
5,230
Trade and other receivables
814,231
781,683
Inventories
73,166
158,430
Prepaid expenses and other assets
26,528
23,046
1,084,344
1,128,279
Non-current
Other assets
53,579
4,646
Property, equipment, and right-of-use assets, net
75,488
88,352
Intangible assets, net
375,181
463,751
Goodwill
564,770
563,848
Total assets
$
2,153,362
2,248,876
Liabilities
Current
Trade and other payables
$
913,994
824,924
Other financial liabilities
54,095
123,932
Deferred revenue
59,325
60,210
Borrowings
1,664
421,728
Income taxes payable
9,286
7,112
1,038,364
1,437,906
Non-current
Other financial liabilities
57,668
77,183
Borrowings
378,007
–
Deferred tax liabilities
67,168
102,977
Total liabilities
$
1,541,207
1,618,066
Shareholders’ equity
Common shares
599,434
595,019
Contributed surplus
10,970
7,919
Exchange rights
–
1,705
Accumulated other comprehensive income
3,963
13,708
Deficit
(28,167)
(18,441)
Total equity attributable to shareholders of Converge
586,200
599,910
Non-controlling interest
25,955
30,900
612,155
630,810
Total liabilities and shareholders’ equity
$
2,153,362
2,248,876
Summary of Consolidated Statements of Loss and Comprehensive Loss
(expressed in thousands of Canadian dollars)
Three months ended
December 31,
Twelve months ended
December 31,
2023
2022
2023
2022
Revenue
Product
$
490,948
507,630
2,098,880
1,700,667
Service
160,142
133,297
606,327
463,980
Total revenue
651,090
640,927
2,705,207
2,164,647
Cost of sales
469,561
472,011
2,002,327
1,613,879
Gross profit
181,529
168,916
702,880
550,768
Selling, general and administrative expenses
137,451
126,377
541,118
413,644
Income before the following
44,078
42,539
161,762
137,124
Depreciation and amortization
29,212
20,363
111,451
75,114
Finance expense, net
10,355
9,062
41,225
19,860
Acquisition, integration, restructuring and other
2,679
4,621
13,648
24,113
Change in fair value of contingent consideration
5,464
14,033
14,673
14,033
Share-based compensation expense
954
1,422
3,692
5,594
Other (income) expense, net
(132)
2,057
(4,362)
(20,375)
(Loss) Income before income taxes
(4,454)
(9,019)
(18,565)
18,785
Income tax recovery
(9,235)
(4,363)
(12,172)
(4,059)
Net (loss) income
$
4,781
(4,656)
(6,393)
22,844
Net (loss) income attributable to:
Shareholders of Converge
5,861
(3,528)
(1,448)
27,283
Non-controlling interest
(1,080)
(1,128)
(4,945)
(4,439)
$
4,781
(4,656)
(6,393)
22,844
Other comprehensive (loss) income
Exchange gain (loss) on translation of foreign operations
916
14,238
(9,745)
13,379
Comprehensive (loss) income
$
5,697
9,582
(16,138)
36,223
Comprehensive (loss) income attributable to:
Shareholders of Converge
6,777
10,710
(11,193)
40,662
Non-controlling interest
(1,080)
(1,128)
(4,945)
(4,439)
5,697
9,582
(16,138)
36,223
Adjusted EBITDA
$
46,505
43,064
170,294
142,868
Adjusted EBITDA as a % of Gross profit
25.6 %
25.5 %
24.2 %
25.9 %
Adjusted EBITDA as a % of Revenue
7.1 %
6.7 %
6.3 %
6.6 %
Summary of Consolidated Statements of Cash Flows
(expressed in thousands of Canadian dollars)
For the three months
ended December 31,
For the twelve months
ended December 31,
2023
2022
2023
2022
Cash flows (used in) from operating activities
Net (loss) income
$
4,781
$
(4,656)
$
(6,393)
$
22,844
Adjustments to reconcile net (loss) income to cash
from operating activities
Depreciation and amortization
31,639
21,994
119,983
80,065
Unrealized foreign exchange (gains) losses
(4)
951
(2,822)
(19,581)
Share-based compensation expense
954
1,422
3,692
5,594
Finance expense, net
10,355
9,062
41,225
19,860
Loss (gain) on sale of property and equipment
335
–
(263)
–
Change in fair value of contingent consideration
5,464
14,033
14,673
14,033
Income tax recovery
(9,235)
(4,363)
(12,172)
(4,059)
44,289
38,443
157,923
118,756
Changes in non-cash working capital
71,888
(6,268)
90,746
(56,463)
116,177
32,175
248,669
62,293
Income taxes paid
(1,696)
(1,780)
(19,129)
(20,707)
Cash from operating activities
114,481
30,395
229,540
41,586
Cash flows used in investing activities
Purchase of property, equipment and intangible assets
(2,038)
(5,131)
(10,828)
(23,942)
Proceeds on disposal of property and equipment
7
475
3,756
299
Payment of deferred and contingent consideration
(1,238)
(4,521)
(65,887)
(21,636)
Payment of non-controlling interest liability
–
–
(30,967)
–
Business combinations, net of cash acquired
–
(64,466)
–
(418,147)
Cash used in investing activities
(3,269)
(73,643)
(103,926)
(463,426)
Cash flows (used in) from financing activities
Transfers from (to) restricted cash
2,615
(39)
4,683
(4,411)
Interest paid
(7,938)
(6,022)
(33,724)
(10,309)
Dividends paid
(2,042)
4
(6,156)
(1,084)
Payment of lease liabilities
(5,427)
(3,796)
(20,626)
(12,290)
Repurchase of common shares
(2,094)
(9,461)
(17,388)
(40,000)
Repayment of notes payable
(40)
(40)
(159)
(236)
Net (repayment of) proceeds from borrowings
(29,882)
46,734
(40,475)
404,640
Cash (used in) from financing activities
(44,808)
27,380
(113,845)
336,310
Net change in cash during the period
66,404
(15,868)
11,769
(85,530)
Effect of foreign exchange on cash
(1,753)
3,529
(1,787)
(2,773)
Cash, beginning of the period
105,221
172,229
159,890
248,193
Cash, end of the period
$
169,872
$
159,890
$
169,872
$
159,890
Non-IFRS Financial Measures
This press release refers to certain performance indicators including Adjusted EBITDA, gross profit, gross sales, gross sales organic growth and net debt, that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management believes that these measures are useful to most shareholders, creditors, and other stakeholders in analyzing the Company’s operating results and can highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the ability to meet capital expenditure and working capital requirements. These non-IFRS financial measures should not be considered as an alternative to the consolidated income (loss) or any other measure of performance under IFRS. Investors are encouraged to review the Company’s financial statements and disclosures in their entirety, are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.
Please see “Non-IFRS Financial & Supplementary Financial Measures” and “Summary of Consolidated Financial Results” in the Company’s most recent Management’s Discussion and Analysis, which is available on the Company’s profile on SEDAR+ at www.sedarplus.ca, for further details on certain non-IFRS measures, which information is incorporated by reference herein.
Adjusted EBITDA
Adjusted EBITDA represents net income adjusted to exclude amortization, depreciation, interest expense and net finance expense, foreign exchange gains and losses, other expenses and income, share-based compensation expense, income tax expense, change in fair value of contingent consideration, and acquisition, integration, restructuring and other expenses. Acquisition and transaction related costs primarily consists of acquisition-related compensation tied to continued employment of pre-existing shareholders of the acquiree not included in the total purchase consideration and professional fees. Integration costs primarily consist of professional fees incurred related to integration of acquisitions completed. Restructuring costs mainly represent employee exit costs as a result of synergies created from acquisitions and organizational changes. The IFRS measure most directly comparable to Adjusted EBITDA presented in the Company’s financial statements is net (loss) income before taxes.
The Company’s definition of Adjusted EBITDA will likely differ from that used by other companies and therefore comparability may be limited. Adjusted EBITDA should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS.
The Company has reconciled Adjusted EBITDA to the most comparable IFRS financial measure as follows:
For the three months
ended December 31,
For the twelve months
ended December 31,
2023
2022
2023
2022
Net (loss) income before taxes
$
(4,454)
(9,019)
(18,565)
18,785
Finance expense, net
10,355
9,062
41,225
19,860
Share-based compensation expense
954
1,422
3,692
5,594
Depreciation and amortization
29,212
20,363
111,451
75,114
Depreciation included in cost of sales
2,427
1,631
8,532
4,950
Other (income) expense
(132)
951
(4,362)
(19,581)
Change in fair value of contingent
consideration
5,464
14,033
14,673
14,033
Acquisition, integration, restructuring and
other
2,679
4,621
13,648
24,113
Adjusted EBITDA
$
46,505
43,064
170,294
142,868
Adjusted EBITDA as a % of Gross Profit1
The Company believes that Adjusted EBITDA as a % of gross profit is a useful measure of the Company’s operating efficiency and profitability. This is calculated by dividing Adjusted EBITDA by gross profit.
Adjusted EBITDA as a % of Revenue1
The Company believes that Adjusted EBITDA as a % of Revenue is a useful measure of the Company’s operating efficiency and profitability. This is calculated by dividing Adjusted EBITDA by revenue.
Adjusted Net Income (Loss) and Adjusted Earnings per Share (“Adjusted EPS”) 1
Adjusted Net Income represents net income adjusted to exclude acquisition, integration, restructuring and other expenses, change in fair value of contingent consideration, amortization of acquired intangible assets, unrealized foreign exchange gain/loss, and share-based compensation. The Company believes that Adjusted Net Income is a more useful measure than net income as it excludes the impact of one-time, non-cash and/or non-recurring items that are not reflective of Converge’s underlying business performance. Adjusted EPS is calculated by dividing Adjusted Net Income by the total weighted average shares outstanding on a basic and diluted basis. The IFRS measure most directly comparable to Adjusted Net Income presented in the Company’s financial statements is net (loss) income and net (loss) income per share.
Leverage Ratio
The Company defines leverage ratio as net debt (current and non-current borrowings less cash) divided by trailing twelve months Adjusted EBITDA.
The Company has provided a reconciliation to the most comparable IFRS financial measure as follows:
For the three months
For the twelve months
ended December 31,
ended December 31,
2023
2022
2023
2022
Net income (loss)
$ 4,781
(4,656)
(6,393)
22,844
Acquisition, integration, restructuring and other
2,679
4,621
13,648
24,113
Change in fair value of contingent
consideration
5,464
14,033
14,673
14,033
Amortization on intangibles
24,468
16,502
87,259
59,549
Foreign exchange (loss) gain
(132)
951
(4,480)
(19,581)
Share-based compensation
954
1,422
3,692
5,594
Adjusted Net Income
$ 38,214
32,873
108,399
106,552
Adjusted EPS -Basic
0.19
0.16
0.53
0.50
Gross sales and gross sales for organic growth
Gross sales, which is a non-IFRS measurement, reflects the gross amount billed to customers, adjusted for amounts deferred or accrued. The Company believes gross sales is a useful alternative financial metric to net revenue, the IFRS measure, as it better reflects volume fluctuations as compared to net revenue. Under the applicable IFRS 15 ‘principal vs agent’ guidance, the principal records revenue on a gross basis and the agent records commission on a net basis. In transactions where Converge is acting as an agent between the customer and the vendor, net revenue is calculated by reducing gross sales by the cost of sale amount.
The Company has provided a reconciliation of gross sales to net revenue, which is the most comparable IFRS financial measure, as follows:
For the three months
For the twelve months
ended December 31,
ended December 31,
2023
2022
2023
2022
Product
$ 719,974
$ 638,261
$ 2,747,359
$ 2,057,477
Managed services
40,966
36,244
165,512
138,176
Third party and professional services
317,723
282,298
1,125,030
895,328
Gross sales
$ 1,078,663
$ 956,803
$ 4,037,901
$ 3,090,981
Less: adjustment for sales transacted
as agent
427,573
315,876
1,332,694
926,334
Revenue
$ 651,090
$ 640,927
$ 2,705,207
$ 2,164,647
Organic Growth
The Company measures organic growth at the gross sales and gross profit levels, and includes the contributions under Converge ownership in the current and comparative period(s). In calculating organic growth, the Company therefore deducts gross sales and gross profit generated from all corresponding prior comparable pre-acquisition period(s) from the current reporting period(s) included in the consolidated results.
Gross sales organic growth is calculated by deducting prior period gross sales, from current period gross sales for the same portfolio of companies. Gross sales organic growth percentage is calculated by dividing organic growth by prior period reported gross sales.
The following table calculates gross sales organic growth for three and twelve months ended December 31, 2023:
For the three months
For the twelve months
ended December 31,
ended December 31,
2023
2022
2023
2022
Gross sales
1,078,663
956,803
4,037,901
3,090,981
Less: gross sales from companies not
owned in comparative period
17,286
310,996
611,045
945,777
Gross sales of companies owned in
comparative period
1,061,377
645,807
3,426,856
2,145,204
Prior period gross sales
956,803
642,151
3,090,981
1,974,790
Organic Growth – $
104,574
3,656
335,875
170,414
Organic Growth – %
10.9 %
0.6 %
10.9 %
8.6 %
Gross profit organic growth is calculated by deducting prior period gross profit, as reported in the Companies public filings, from current period gross profit for the same portfolio of companies. Gross profit organic growth percentage is calculated by dividing organic growth by prior period reported gross profit.
For the three months
For the twelve months
ended December 31,
ended December 31,
2023
2022
2023
2022
Gross profit
181,529
168,916
702,880
550,768
Less: gross profit from companies not
owned in comparative period
3,032
51,286
107,295
168,828
Gross profit of companies owned in
comparative period
178,497
117,630
595,585
381,940
Prior period gross profit
168,916
115,893
550,767
345,704
Organic Growth – $
9,581
1,737
44,818
36,236
Organic Growth – %
5.7 %
1.5 %
8.1 %
10.5 %
Forward-Looking Information
This press release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation regarding Converge and its business. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected” “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”. “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Specifically, statements regarding Converge’s forecast on gross profit and Adjusted EBITDA, expectations of future results, performance, prospects, the markets in which it operates, or about any future intention with regard to its business and acquisition strategies are considered forward-looking information. The foregoing demonstrates Converge’s objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects, and growth initiatives. The forward-looking information, including management’s assessments of, and outlook for, gross profit and Adjusted EBITDA, are based on management’s opinions, estimates and assumptions, including, but not limited to: (i) Converge’s results of operations will continue as expected, (ii) the Company will continue to effectively execute against its key strategic growth priorities, (iii) the Company will continue to retain and grow its existing customer base and market share, (iv) the Company will be able to take advantage of future prospects and opportunities, and realize on synergies, including with respect of acquisitions, (v) there will be no changes in legislative or regulatory matters that negatively impact the Company’s business, (vi) current tax laws will remain in effect and will not be materially changed, (vii) economic conditions will remain relatively stable throughout the period, (vii) the industries Converge operates in will continue to grow consistent with past experience, and (ix) those assumptions described under the heading “About Forward-Looking Information” in the Company’s Management’s Discussion and Analysis for the three and twelve-months ended December 31, 2023. While these opinions, estimates and assumptions are considered by the Company to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.
The forward looking information, including the achievement of target gross profit and Adjusted EBITDA set out above, are subject to significant risks including, without limitation: that the Company will be unable to effectively execute against its key strategic growth priorities, including in respect of acquisitions; the Company will be unable to continue to retain and grow its existing customer base and market share; risks related to the Company’s business and financial position; that the Company may not be able to accurately predict its rate of growth and profitability; risks related to economic and political uncertainty; income tax related risks; and those risk factors discussed in greater detail under the “Risk Factors” section of the Company’s most recent annual information form and under the heading “Risks and Uncertainties” in the Company’s most recent Management’s Discussion and Analysis, which are each available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Many of these risks are beyond the Company’s control.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
Although the Company bases these forward-looking statements on assumptions that it believes are reasonable when made, the Company cautions investors that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which it operates are consistent with the forward-looking statements contained in this press release, those results of developments may not be indicative of results or developments in subsequent periods.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents the company’s expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
CONTACT: Investor Relations, Email: investors@convergetp.com, Phone: 416-360-1495
View original content:https://www.prnewswire.co.uk/news-releases/converge-reports-record-q4-and-fy-2023-results-302081259.html
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Technology
AdaKami Contributes to National Dialogue on Strengthening Fraud Risk Management
Published
27 minutes agoon
April 24, 2026By
JAKARTA, Indonesia, April 24, 2026 /PRNewswire/ — The continued rise in digital fraud highlights increasing risks to consumer protection and the sustainability of Indonesia’s digital financial ecosystem. Data from Indonesia Anti-Scam Centre (IASC) under the Financial Services Authority of Indonesia (OJK) recorded over 432,000 digital fraud reports between November 2024 and January 2026, with total losses reaching approximately IDR 9.1 trillion.
In response, AdaKami, a licensed fintech lending platform by OJK, continues to strengthen its fraud risk management framework through enhanced technology capabilities, ongoing user education, and collaborations with stakeholders.
This was reflected at the Executive Policy Collaborative Forum on Handling Digital Fraud and Scams, organized by The Indonesian Digitalization and Cybersecurity Association (ADIGSI) which brought together regulators, cybersecurity authorities, and industry associations including IASC OJK, the National Cyber and Crypto Agency (BSSN), the Indonesia Fintech Lending Association (AFPI), and the Indonesia Fintech Association (AFTECH). The forum underscored the importance of coordinated efforts to strengthen fraud prevention and reinforce the anti-scam governance ecosystem.
Alongside industry and regulatory stakeholders, AdaKami reiterated its commitment and efforts to strengthen fraud prevention, by integrating technology, education, and collaboration as core pillars of consumer protection.
“Fraud and digital scams have evolved into a systemic challenge that requires coordinated action across regulators, industry, and stakeholders,” said Hudiyanto, Head of Secretariat of IASC OJK.
Karissa Sjawaldy, Chief of Public Affairs AdaKami, added: “AdaKami remains committed to strengthening consumer protection by enhancing technology-driven security systems, reinforcing user education, and maintaining close collaboration with regulators and industry partners.”
AdaKami continues to strengthen its security infrastructure through technology advancement, including AI, machine learning, and big data, to protect users on the platform and mitigate cyber threats. Concurrently, AdaKami recognizes the importance of user awareness in reducing fraud risks. Through ongoing educational initiatives such as the #SelaluWaspada campaign, AdaKami educates users to stay vigilant against evolving fraud schemes, including safeguarding personal information, recognizing common fraud tactics, and engaging only through official verified channels.
AdaKami remains focused on strengthening risk management, enhancing consumer trust, and supporting a more resilient digital financial ecosystem in Indonesia.
***
About AdaKami
Established in 2018, AdaKami is a licensed fintech lending platform in Indonesia, operated by PT Pembiayaan Digital Indonesia and supervised by OJK. AdaKami provides accessible financing through technology-driven, fast, and reliable services, bridging the gap between traditional financial institutions and underserved communities. More information: www.adakami.id
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SOURCE AdaKami
Technology
RWA.LTD Announces Comprehensive Consumer Goods Token Ecosystem Layout at Hong Kong Web3 Festival, Leading the Launch of the Consumer RWA Alliance
Published
1 hour agoon
April 24, 2026By
HONG KONG, April 24, 2026 /PRNewswire/ — During the Hong Kong Web3 Festival, RWA.LTD, the world’s first platform dedicated to consumer goods RWA (Real World Assets), officially announced the completion of its comprehensive consumer goods token ecosystem layout. At the event, the platform spearheaded the unveiling of the “Consumer RWA Alliance”. Positioned as the “Asian Consumer Goods Asset Trading Center,” RWA.LTD aims to enhance consumption efficiency through AI, reconstruct value distribution via Web3, and connect cross-city and cross-country consumer networks through tokens to accelerate the arrival of the “Smarter Consumer” era.
RWA.LTD stated that consumer goods RWA is not a single product, but a set of new infrastructure developed around consumption scenarios, the circulation of consumer rights, and brand interaction. Since CEO Fu, Rao Tony first proposed the concept of “Consumer Goods RWA” in late 2024, the team simultaneously prepared the RWA.LTD platform and completed Beta testing in September 2025. Following several months of iteration, the platform completed a comprehensive upgrade in mid-March 2026, marking RWA.LTD’s formal transition from the proof-of-concept stage to the ecological development stage.
RWA.LTD Ecosystem
In this public announcement, RWA.LTD systematically disclosed its four major ecological sectors for the first time. First, RWA.LTD | Mall (Winpoint Mall) was officially launched during the Hong Kong Web3 Festival, providing consumers with diverse brand rights driven by RWA Coin; current offerings include the CDAA (Chartered Digital Asset Analyst) Course, Matrix E-commerce Services, and more. Second, RWA.LTD | Exchange was fully launched in mid-March 2026 as a primary issuance and secondary trading market for consumer goods tokens, with plans to list 100 types of consumer goods tokens within the year to provide bidirectional exposure for brands and users. Third, RWA.LTD | Fund plans to collaborate with established VC funds to focus on brand token ecosystem construction and explore new paths for the synergistic development of consumer brands and on-chain capital. Fourth, RWA.LTD | Bot (rwaclaw.ai, rwabot.ai) has completed domain layout and is currently under development; it will provide consumers with real-time AI price comparisons, intelligent recommendations, and automated ordering tools to enhance decision-making efficiency and consumer experience.
RWA.LTD believes that the traditional consumer market has long suffered from information asymmetry, price opacity, and inactive membership systems, while the combination of blockchain and AI provides a new consumption model. By standardizing, digitizing, and placing consumer rights on-chain, consumers are no longer just end-buyers but can become active participants in the consumption network; brands are no longer limited to one-time interactions with consumers but can build stable, sustainable consumer relationships through on-chain tools.
Consumer RWA Alliance
At the Hong Kong Web3 Festival, the Consumer RWA Alliance, spearheaded by RWA.LTD, was inaugurated. The alliance aims to unite consumer brands, channel platforms, technology service providers, ecological partners, and cross-regional resource providers to jointly promote the co-construction of standards, ecological synergy, and scenario implementation for consumer goods RWA. The alliance members attending the unveiling ceremony included Dr. and Professor Lawrence Yu, Founder and Chairman of the Asia Pacific Economic Leaders’ Confederation; Dr. Wang Ping, President of the RWA Ecological International Federation and Chairman of the Asia Pacific M&A Fund; Dou Jun, Secretary General of the Hong Kong RWA Global Industry Alliance and Executive Secretary General of the Blockchain Professional Committee of the China Communications Industry Association (CCIA); Dr. Yu Jianing, Principal of Uweb Business School (Hong Kong) and Rotating Chairman of the Academic Committee of the Hong Kong Certified Digital Asset Analysts Association (HKCDAA); Dr. Jingle, Founder of Hong Kong Meta Strategy; Dr. Qiu Yueying, CEO of Winchain Technology; Tongjian Sun, CEO of INOVAI TECH K.K.; and Wen Hua, Director of the Australia & New Zealand Center of the Hong Kong RWA Global Industry Alliance, with RWA.LTD CEO Fu, Rao Tony serving as the Chairman. The establishment of the alliance marks an important step for consumer RWA moving from platform exploration to industry collaboration, signifying that the RWA narrative is extending from the relatively singular field of financial assets to the consumer industry which is more closely related to real life.
Industry insiders pointed out that the establishment of the Consumer RWA Alliance holds industry significance beyond platform business. On one hand, it helps break the market’s inherent impression of RWA as being “over-financialized” and encourages the outside world to re-recognize the application value of RWA as digital infrastructure in real consumption scenarios. On the other hand, it provides a new organizational framework for the Asian consumer market, making cross-regional brand cooperation, mutual recognition of consumer rights, and on-chain circulation mechanisms more operational. RWA.LTD stated that it hopes to promote the formation of a more diverse, open, and sustainable RWA world through the alliance mechanism, making RWA not just a synonym for asset securitization, but also a key driver for consumer innovation and industrial upgrading.
Regarding compliance issues of market concern, RWA.LTD provided a brief explanation in this announcement. Consumer goods tokens do not fall within the definition of “virtual assets” under Section 53ZRA of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), as they are neither payment tokens nor governance tokens. Even if there is overlap in certain characteristics, the relevant tokens can ultimately be defined as “Limited Purpose Digital Tokens” under Section 53ZR of the AMLO, which are explicitly excluded from the scope of “virtual asset” in the AMLO. Based on this, RWA.LTD does not fall within the regulatory scope of the Virtual Asset Trading Platform (VATP) licensing regime. Meanwhile, the U.S. SEC’s previous No-Action Letter to the Fuse project, along with the definition of “Digital Tools” in the regulatory interpretation published on March 17, 2026, further supports the stance that consumer goods tokens are non-securities, non-commodities, and are not regulated under the virtual asset framework. RWA.LTD emphasized that the company consistently adheres to advancing product design and business development within a compliance framework and will continue to monitor regulatory dynamics in different jurisdictions.
The RWA.LTD team possesses a rich international background and overseas market experience, having long followed the development trends of the Web3 and RWA markets in Europe and the United States. The team observed early on that the Asian RWA market has long been concentrated on financial narratives with relatively monotonous scenarios, and platforms that truly integrate deeply with mass consumption and high-frequency lifestyle scenarios remain scarce. Consequently, the team began preparing the consumer goods RWA platform as early as 2024, hoping to take the lead in completing infrastructure, model verification, and resource integration before an industry consensus was formed.
RWA.LTD CEO Fu, Rao Tony pointed out that consumer goods RWA is currently one of the directions most likely to land and scale quickly. Compared to financial RWA, consumer goods RWA has a stronger efficient foundation in terms of compliance structure, user understanding, scenario adaptation, and promotion paths. Its core value lies in using blockchain technology to release liquidity that the consumer industry has long lacked, allowing consumer rights—which were originally fragmented, dormant, non-tradable, or difficult to circulate across regions—to achieve more efficient allocation and redistribution. Through this mechanism, the relationship between brands, platforms, and consumers will be redefined.
Fu, Rao Tony further stated that as the digitalization of the Asian consumer market continues to improve, the combination of consumer RWA and the real consumer industry is expected to release trillion-dollar economic potential in the future. For Hong Kong, this is not just an emerging Web3 track, but could become an important hub connecting international consumer networks with digital asset innovation. Hong Kong possesses unique advantages as an international financial center, an international trade center, and a highland for institutional innovation. If it can take the lead in forming scale synergy in the field of consumer RWA, it has the opportunity to occupy a leading position in the global wave of consumer asset digitalization.
In the future, RWA.LTD will continue to advance its layout around consumer goods RWA infrastructure construction, ecological cooperation expansion, alliance network improvement, and AI consumer tool research and development, exploring new on-chain paradigms for the consumer industry with more brands, institutions, and partners. As the Mall, Exchange, Fund, and Bot sectors gradually mature, RWA.LTD hopes to drive consumer RWA from concept to large-scale application, providing a more efficient, intelligent, and participatory new value network for the Asian and global consumer markets.
About RWA.LTD
RWA.LTD is positioned as the Asian consumer goods asset trading center, committed to enhancing consumption efficiency with AI, reconstructing consumer value distribution with Web3, and establishing cross-city and cross-country consumer alliance networks via tokens. The company focuses on the consumer goods RWA track, continuously promoting the digitalization of consumer rights, the circulation of consumer assets, and the synergy of the consumer ecosystem to explore the future consumption model of “Smarter Consumer”.
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SOURCE RWA.LTD
Technology
Fox ESS Ranks No. 1 Globally in Residential Energy Storage
Published
2 hours agoon
April 24, 2026By
WENZHOU, China, April 23, 2026 /CNW/ — Fox ESS, a global leader in renewable energy solutions, has been ranked No. 1 among residential energy storage providers worldwide for 2025, based on MWh shipments in S&P Global Energy’s Residential Energy Storage Market Tracker.
The report also places Fox ESS at No. 1 in Germany and the UK, highlighting the company’s momentum in key markets and expanding distribution footprint.
Compared with 2024, Fox ESS’s global market share rose 50% in 2025, reinforcing its position in a rapidly growing residential storage sector. The company has continued to scale internationally, with global headcount doubling from the end of 2024. As of April 2026, Fox ESS employs more than 5,000 people worldwide, and has added local support through new offices, including in Sydney, Australia.
“We’re thrilled for this remarkable achievement. It reflects our commitment to innovation and product quality, and to making clean, reliable energy practical for households around the world,” said Michael Zhu, CEO of Fox ESS. “We will continue pushing the boundaries to deliver solutions that help homes and businesses move toward energy independence.”
Notably, Fox ESS has launched the Champion’s Choice campaign globally, combining the endorsement of sports champions with recognition from prestigious organizations. With the first stop in Australia, the company signed Ian Thorpe, a five-time Olympic champion last December. The campaign underscores Fox ESS’s ambition to deliver better value for customers and partners.
Fox ESS is committed to building long-term trust with customers and partners. The company delivers reliable, high-quality energy storage systems engineered for consistent performance, supported by rigorous quality-control processes designed to help ensure every product meets the highest standards.
Fox ESS develops solutions that serve both installers and end users. With ongoing investment in R&D, the company stays ahead of evolving market needs, helping installers work more efficiently while enabling homeowners to move toward energy transition and reduce electricity costs.
With a team of more than 400 experts in R&D, Fox ESS continues to refine its product design for easier transportation, installation, and everyday use. The AI-powered FoxCloud app also makes energy management more intuitive, enabling users to monitor and control home energy consumption, manage smart devices, and track detailed generation and usage data in a single streamlined platform, delivering greater peace of mind.
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SOURCE Fox ESS
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