HSC Technology : Annual Report to Shareholders

For personal use only

Annual Report

31 DECEMBER 2021

For personal use only

The information contained in this document should be read in conjunction with HSC Technology Group Ltd's public announcements made in accordance with the continuous disclosure obligations arising from the Corporations Act 2001 and the ASX Listing Rules.

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CORPORATE DIRECTORY

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For personal use only

CHAIRMAN'S & MANAGING DIRECTOR'S LETTER

Dear Shareholders

It is our pleasure to present the 2021 Annual Report of HSC Technology Group Ltd.

The board is pleased with the progress the Company has made over the past 12 months, especially considering the impact COVID-19 has had on markets and particularly our sector. During the year, we laid key foundations for future growth, by establishing additional strategic partnerships with Telstra / Sapio, VitalCall, Tunstall and ADT, as well as winning new projects, developing new product lines, and growing our subscribers on our Talius Smart Care Platform, which we continue to invest in.

The current challenges in the aged care industry serve as a perfect catalyst for providers to look towards innovative solutions, which only increases the relevance of our products and platform, assisting facilities as they strive to meet added compliance and monitoring obligations.

HSC continued to progress its sales strategy across our aged care markets, including continued sales in home care and retirement villages. Our projects division was also kept very busy, completing projects such as St John's Home for the Elderly Persons, Singapore, and winning major new contracts, including two new sites for Australian Unity.

We were also pleased to announce a partnership with integratedliving, which will see the first commercial use of CSIRO-researched and patented Smarter Safer Homes (SSH) technology, which is exclusively embedded in our Talius platform.

Our revenue for 2022 grew by 17% from the previous year, and our annualised recurring revenue grew by 108%, as our hardware sales are delivering more subscribers to our platform. We reached the important milestone of 10,000 subscriptions, and at the date of this report, have over 11,000 subscriptions on our Talius platform.

We continued to invest in our Talius Smart Care Platform and expanded our suite of sensors and features to incorporate new product lines such as our HSC Sleepsense bed sensor and Talius Track RTLS: real time locating system technology that is aimed at delivering a comprehensive solution to our customers.

As the tailwinds of the Royal Commission recommendations being legislated and the impending 3G shutdown gather pace, together with increasing levels of compliance and skills shortages, we anticipate that the delayed decision making witnessed in the industry this year will shift to an ever-pressing need and willingness to adopt technology solutions. We are well placed for this and continue to see strong growth opportunities across the sector.

We are confident in our strategy of offering a business-to-business enterprise solution and aware of the challenges faced by the organisations we support. We look forward to continuing working closely with providers and increase the technology implementation which provides immediate benefits to carers and residents and the operator's bottom lines.

We'd like to take this opportunity to thank all our staff for their contribution during the year - we have a team that is strongly focused on our purpose, which is 'to improve the quality of life, later in life'. We would also like to thank our fellow Director, Ramsay Carter, for his ongoing commitment and effort.

Finally, we offer our gratitude to our shareholders for their continued support. We are optimistic regarding our pipeline for 2022 and beyond and look forward to delivering value for our shareholders.

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