Treasure Global Inc (NASDAQ: TGL) (“TGL,” “Treasure Global” or the
“Company”), an innovative technology solutions provider, today
reported its financial results for the second quarter of the 2024
fiscal year ended December 31, 2023, and provided a business
update.
“TGL continued to be a leading innovator in our markets, hosting
first-ever events on TikTok and Meta Platforms, and signing
partnerships with regional leaders like AIO Synergy Solutions to
collaborate on the development of a data center for artificial
intelligence applications,” said Sam Teo, Chief Executive Officer
of TGL. “I believe that, by integrating our AI technology into
platforms like ZCITY, we are in a stronger position to create
offerings for our platforms that will attract both new users and
partners as well as deepen our existing relationships, helping us
to grow our revenue and increase our profitability.”
“Throughout the second quarter, TGL took steps that I believe
have strengthened the Company, allowing us to invest in further
innovation. These steps included our $4 million public offering and
signing an agreement to retire our corporate debt. These actions
allow us to invest in growth opportunities in our key markets and
enable our continued expansion into higher-margin revenue channels,
including healthcare, computer and food and beverage products as
well as activities to increase subscription memberships,” Mr. Teo
concluded.
Recent Business Highlights
- Over 2.68 million registered users as of December 31,
2023.
- 53% of paid users transacted three or more times in the quarter
ended December 31, 2023.
- Quarterly active users for the quarter ended December 31, 2023
were 156,979.
- Paid users down by 64% year-over-year.
- A total of 0.58 million transactions were transacted by our
registered users in the quarter ended December 31, 2023.
- Signed a memorandum of understanding between ZCITY and
Malaysia’s leading healthcare group, UCSI Hospital, to pioneer stem
cell healthcare tourism for Indonesia, Hong Kong and China.
- Signed an agreement for Treasure Global’s Abe Yus to supply its
high-selling curry puffs to the world’s largest convenience store
chain.
- Announced major shareholder lock-up agreement.
- Unveiled premium store, paving the way for an elevated ZCITY
experience and substantial growth.
- Announced closing of $4.0 million public offering.
- Signed agreement to retire convertible debt notes.
- Hosted historic artificial intelligence (“AI”) robot for TikTok
Live Commerce in Malaysia.
- Entered booming global gaming market, launching 10 mini games
integrated with AI Game Creator in ZCITY’s 3D World.
- Launched ZCITY Live Commerce solution on Meta Platforms.
- Collaborated with AIO Synergy Solutions on development of data
center for AI applications.
Financial Results for the Second Quarter of Fiscal Year
2024
Total revenues for the second quarter ended December 31, 2023,
were $6.7 million, compared with $20.4 million for the second
quarter of the 2023 fiscal year. The decrease in revenues was
primarily due to the Company’s focus on increasing growth in
higher-margin revenue channels.
Gross profit for the second quarter of the 2024 fiscal year was
approximately $0.35 million, a 48% improvement year-on-year, from
approximately $0.23 million for the second quarter of the 2023
fiscal year. The increase in gross profit was primarily due to
initiatives mentioned above that the Company is implementing to
grow gross margins.
Net loss of approximately $1.2 million for the second quarter of
the 2024 fiscal year, compared to $2.0 million for the second
quarter of the 2023 fiscal year.
Cash and cash equivalents were approximately $1.2 million as of
December 31, 2023, compared to approximately $4.7 million as of
December 31, 2022.
Outlook for Third Quarter of Fiscal Year
2024
The Company believes it is well-positioned to capitalize on the
economic growth of Southeast Asia, and that its focus on AI will
allow it to execute on its plans to expand further into Indonesia
and throughout the region.
For the second half of the fiscal year 2024, TGL will continue
to focus on strengthening the Company by expanding its
higher-margin revenue channels like health care, computer and food
and beverage products, and its member subscription revenue,
allowing the Company to increase gross profit.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today,
Thursday, February 15th at 8:30 a.m. Eastern Time featuring remarks
by Sam Teo, Chief Executive Officer of TGL and Michael Chan, Chief
Financial Officer of TGL.
Event: |
Treasure Global Second Quarter
of Fiscal Year 2024 Results Conference Call |
Date: |
Thursday, February 15,
2024 |
Time: |
8:30 a.m. Eastern Time |
Live
Call: |
877-704-4453 (Toll Free) or
+1-201-389-0920 (International) |
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1654371&tp_key=065b94d7d1 |
For interested individuals unable to join the conference call, a
replay will be available through February 29, 2024, at 844-512-2921
(U.S. Toll Free) or +1-412-317-6671 (International). Participants
must use the following code to access the replay of the call:
13744158. An archived version of the webcast will also be available
on TGL’s Investor Relations site:
https://ir.treasureglobal.co/.
About Treasure Global IncTreasure Global is a
Malaysian solutions provider developing innovative technology
platforms. Treasure Global has developed two technology solutions:
the ZCITY App, a unique digital ecosystem that transforms and
simplifies the e-payment experience for consumers, while
simultaneously allowing them to earn rewards; and TAZTE, a digital
food and beverage management system providing merchants with a
one-stop management and automated solution to digitize their
businesses. Treasure Global also acts as a master franchiser in
South-East Asia for popular restaurant chains, while providing them
with the TAZTE solution. As of December 31, 2023, ZCITY had over
2,680,000 registered users.
For more information, please
visit https://treasureglobal.co/.
Forward-Looking StatementsThis press release
may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements are characterized by future or
conditional verbs such as “may,” “will,” “expect,” “intend,”
“anticipate,” “believe,” “estimate” and “continue” or similar
words. You should read statements that contain these words
carefully because they discuss future expectations and plans, which
contain projections of future results of operations or financial
condition or state other forward-looking information.
Forward-looking statements are not guarantees of future
performance, are based on certain assumptions, and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the control of the Company, including those set forth in
the Risk Factors section of the Company’s Annual Report on Form
10-K for the fiscal year ended June 30, 2023 and subsequent filings
filed with the Securities Exchange Commission (“SEC”). Copies of
these documents are available on the SEC’s website, www.sec.gov.
These forward-looking statements cannot be predicted or quantified
and consequently, actual results may differ materially from those
expressed or implied by such forward-looking statements. The
Company undertakes no obligation to update these statements for
revisions or changes after the date of this release, except as
required by law.
For further information, please contact:
U.S. Investor ContactErika KayKCSA Strategic
Communicationsir_us@treasuregroup.co
Malaysian Investor
Contactsir_my@treasuregroup.co
Media ContactSue Chuah, Chief Marketing
OfficerTreasure Global Incmediacontact@treasuregroup.co
|
TREASURE GLOBAL INC. AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
December 31, |
|
|
June 30, |
|
|
2023 |
|
|
2023 |
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,226,570 |
|
|
$ |
4,593,634 |
|
Accounts receivable, net |
|
185,630 |
|
|
|
163,169 |
|
Inventories, net |
|
126,884 |
|
|
|
400,543 |
|
Other receivables and other current assets |
|
426,602 |
|
|
|
613,125 |
|
Other receivable, a related party |
|
12,581 |
|
|
|
12,379 |
|
Prepayments |
|
401,111 |
|
|
|
248,551 |
|
Total current assets |
|
2,379,378 |
|
|
|
6,031,401 |
|
|
|
|
|
|
|
|
|
OTHER ASSETS |
|
|
|
|
|
|
|
Property and equipment, net |
|
233,674 |
|
|
|
279,600 |
|
Intangible assets, net |
|
1,626,449 |
|
|
|
- |
|
Operating lease right-of-use assets |
|
42,557 |
|
|
|
61,377 |
|
Investment in marketable securities |
|
647,565 |
|
|
|
- |
|
Total other assets |
|
2,550,245 |
|
|
|
340,977 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
4,929,623 |
|
|
$ |
6,372,378 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Related party loan, current portion |
$ |
5,893 |
|
|
$ |
5,323 |
|
Insurance loan |
|
- |
|
|
|
160,292 |
|
Convertible notes payable, net of unamortized discounts of $0 and
$358,284 as of December 31, 2023 and June 30, 2023,
respectively |
|
- |
|
|
|
4,791,716 |
|
Accounts payable |
|
168,539 |
|
|
|
42,853 |
|
Customer deposits |
|
133,527 |
|
|
|
161,475 |
|
Contract liability |
|
192,506 |
|
|
|
157,080 |
|
Other payables and accrued liabilities |
|
612,988 |
|
|
|
723,396 |
|
Other payables, related parties |
|
14,411 |
|
|
|
1,660 |
|
Amount due to related parties |
|
- |
|
|
|
320,960 |
|
Operating lease liabilities |
|
33,194 |
|
|
|
40,274 |
|
Income tax payables |
|
65,506 |
|
|
|
67,546 |
|
Total current liabilities |
|
1,226,564 |
|
|
|
6,472,575 |
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
10,785 |
|
|
|
22,036 |
|
Related party loan, non-current portion |
|
5,564 |
|
|
|
8,099 |
|
Total non-current liabilities |
|
16,349 |
|
|
|
30,135 |
|
TOTAL LIABILITIES |
|
1,242,913 |
|
|
|
6,502,710 |
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIENCY) |
|
|
|
|
|
|
|
Common stock, par value $0.00001; 170,000,000 shares authorized,
69,239,309 and 17,901,353 shares issued and outstanding as of
December 31, 2023 and June 30, 2023, respectively |
|
692 |
|
|
|
180 |
|
Additional paid-in capital |
|
38,638,562 |
|
|
|
31,485,556 |
|
Accumulated deficit |
|
(34,774,677 |
) |
|
|
(31,443,451 |
) |
Accumulated other comprehensive loss |
|
(177,867 |
) |
|
|
(172,617 |
) |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIENCY) |
|
3,686,710 |
|
|
|
(130,332 |
) |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
(DEFICIENCY) |
$ |
4,929,623 |
|
|
$ |
6,372,378 |
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
|
TREASURE GLOBAL INC. AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS |
|
|
For the Three MonthsEnded December 31, |
|
|
For the Six MonthsEnded December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
$ |
6,713,805 |
|
|
$ |
20,444,168 |
|
|
$ |
20,177,700 |
|
|
$ |
36,000,508 |
|
COST OF REVENUES |
|
(6,368,202 |
) |
|
|
(20,210,159 |
) |
|
|
(19,669,463 |
) |
|
|
(35,729,406 |
) |
GROSS PROFIT |
|
345,603 |
|
|
|
234,009 |
|
|
|
508,237 |
|
|
|
271,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING |
|
(510,640 |
) |
|
|
(1,266,300 |
) |
|
|
(1,272,343 |
) |
|
|
(2,559,330 |
) |
GENERAL AND ADMINISTRATIVE |
|
(786,043 |
) |
|
|
(855,573 |
) |
|
|
(2,023,210 |
) |
|
|
(1,666,319 |
) |
RESEARCH AND DEVELOPMENT |
|
(138,236 |
) |
|
|
(167,933 |
) |
|
|
(220,628 |
) |
|
|
(297,230 |
) |
STOCK-BASED COMPENSATION |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(439,332 |
) |
TOTAL OPERATING EXPENSES |
|
(1,434,919 |
) |
|
|
(2,289,806 |
) |
|
|
(3,516,181 |
) |
|
|
(4,962,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
(1,089,316 |
) |
|
|
(2,055,797 |
) |
|
|
(3,007,944 |
) |
|
|
(4,691,109 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
|
(225,721 |
) |
|
|
55,187 |
|
|
|
(197,321 |
) |
|
|
69,512 |
|
Interest expense |
|
(21,593 |
) |
|
|
(55 |
) |
|
|
(69,442 |
) |
|
|
(41,840 |
) |
Unrealized holding loss on marketable securities |
|
(412,607 |
) |
|
|
- |
|
|
|
(352,435 |
) |
|
|
- |
|
Other income from software developing service, net of cost |
|
675,131 |
|
|
|
- |
|
|
|
675,131 |
|
|
|
- |
|
Amortization of debt discount |
|
(119,402 |
) |
|
|
- |
|
|
|
(358,284 |
) |
|
|
(998,076 |
) |
TOTAL OTHER INCOME (EXPENSE), NET |
|
(104,192 |
) |
|
|
55,132 |
|
|
|
(302,351 |
) |
|
|
(970,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
(1,193,508 |
) |
|
|
(2,000,665 |
) |
|
|
(3,310,295 |
) |
|
|
(5,661,513 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
(6,006 |
) |
|
|
(11,500 |
) |
|
|
(20,931 |
) |
|
|
(23,000 |
) |
NET LOSS |
|
(1,199,514 |
) |
|
|
(2,012,165 |
) |
|
|
(3,331,226 |
) |
|
|
(5,684,513 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(5,293 |
) |
|
|
49,998 |
|
|
|
(5,250 |
) |
|
|
(85,278 |
) |
COMPREHENSIVE LOSS |
$ |
(1,204,807 |
) |
|
$ |
(1,962,167 |
) |
|
$ |
(3,336,476 |
) |
|
$ |
(5,769,791 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
37,794,450 |
|
|
|
17,288,116 |
|
|
|
28,106,060 |
|
|
|
15,598,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
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