Treasure Global Inc (NASDAQ: TGL) (“TGL”, or the “Company”), an
innovative technology solutions provider, today reported its
financial results for the fourth quarter and fiscal year ended June
30, 2023.
“TGL has made great headway in growing our reach across
Malaysia, through strategic partnerships and new innovative
enhancements made to our key product ZCITY,” said Sam Teo, Chief
Executive Officer of TGL. “Through our powerful technology
platform, we have recruited a large and growing number of users,
reaching over 2.6 million registered users to date. We believe we
are positioned to capture additional market share as we roll out
new technologies into ZCITY, such as our recently integrated AI
technology with a user-friendly chatbot powered by our data
analysis engine and ChatGPT.”
“As we move forward in fiscal 2024, we can increase the accuracy
and effectiveness of our app, offering consumers a more
personalized and targeted rewards experience,” Mr. Teo continued.
“TGL is also continually expanding our market reach, growing into
new categories such as travel, health & wellness, and events
ticketing. We have already taken major steps to enter the
Indonesian market, recently signing a Letter of Intent to form an
e-commerce venture in Indonesia with Harmoni Bagi Dunia (“HBD”),
granting HBD exclusive rights to promote and operate ZCITY in
Indonesia, which has ten times the population of Malaysia.”
“In addition, we are entering the next stage of our growth plans
of expanding further into the F&B industry in Malaysia, through
TAZTE and Foodlink, as well as South-East Asia more broadly. We are
excited to announce that we are well underway developing TAZTE 2.0,
which will increase functionality on both the merchant and customer
sides. TGL expects this upgrade, expected to launch next month, to
attract new merchants and users to the platform, as well as
increasing retention of current ones. In line with our expansion in
the F&B industry, we advanced our position as a master
franchisor, securing licensing agreements with popular brands
Morganfields and Abe Yus that will provide new revenue streams and
rapidly increase the uptake of TAZTE by new merchants. TGL also
signed an agreement with the Malaysia Retail Chain Association for
TAZTE to become its exclusive partner as the recommended digital
F&B management solution to its members in Malaysia. Each of
these advancements support our committed effort to increase user
engagement to grow gross profit through fiscal 2024,” concluded Mr.
Teo.
Recent Business Highlights
- Over 2.6 million Registered Users as of September 25,
2023;
- Active User Retention Rate increased 280% year-over-year;
- Quarterly Active Users for the fourth quarter were
378,414;
- Paid Users increased by 4.3% year-over-year;
- 41% of Paid Users transacted three or more times in a quarter,
an increase of approximately 24% year-over-year;
- 1.4 million total transactions by Registered Users for fiscal
year 2023;
- Integrated next-gen, personalized AI-powered chatbot assistant,
Jojo, into the Company’s proprietary ZCITY app, leveraging ChatGPT
to intelligently customize the user experience resulting in
stronger customer retention and user acquisition metrics;
- Signed a licensing agreement with Morganfield’s granting TGL an
exclusive worldwide license to grant sub-licenses to third parties
to use Morganfield’s trademarks for the restaurant business.
Morganfield’s will also adopt TAZTE in its nine franchisees in
Malaysia, China, and Singapore, accelerating the rollout of TAZTE
across the region;
- Secured a licensing agreement with fast-growing Malaysian
F&B Brand, Abe Yus, granting exclusive sub-licensing of its
brands, progressing TGL’s strategic plan to become a master
franchisor of F&B companies in Southeast Asia;
- Signed a Letter of Intent (LOI) to form an e-commerce venture
in Indonesia, known as PT Harmoni Bagi Dunia (“HBD”). TGL will hold
a 70% major stake in HBD and grant HBD exclusive rights to promote
and operate its proprietary app, ZCITY, in Indonesia, marking the
beginning of the Company’s expansion into the Indonesian
market;
- Signed a collaboration agreement with VCI Global Limited, a
multi-disciplinary consulting group focused on business and
technology, for the development of AI-powered travel platform,
utilizing the latest advanced technologies to provide relevant
travel recommendations in real time;
- Announced an exclusive partnership with enogy, a health and
wellness brand, to expand the range of products available on its
e-commerce marketplace, Zstore;
- Partnered with the Malaysia Ministry of Domestic Trade and Cost
of Living for the launch of the ‘Package Rahmah’ program, which
offered various financial saving initiatives to reduce the cost of
living for lower-income groups, with a package of reduced price
living essential e-vouchers on ZCITY; and
- Collaborated with Borderland Music Festival 2023 to provide the
first cashless and ticketing platform-powered music festival in
Malaysia, providing significant exposure and market penetration in
Sarawak, Borneo.
Financial Results for the Fourth Quarter and Fiscal Year
2023
Total revenues for the fiscal year ended June 30, 2023, were
$69.4 million, compared with $79.7 million for the fiscal year
2022. For the fourth quarter 2023, total revenues were $15.1
million, compared to $16.2 million for the same period last 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 fiscal year 2023 was approximately $0.52
million, a 9.9% improvement year-on-year, from approximately $0.5
million for the fiscal year 2022. 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 $11.7 million for the fiscal year
2023, remains the same compared to fiscal year 2022.
Cash and cash equivalents were approximately $4.6 million as of
June 30, 2023, compared to approximately $1.8 million as of June
30, 2022.
Outlook for Fiscal Year 2024
We believe that TGL is well-placed to capitalize on the economic
growth of South-East Asia, executing on its plans to expand further
into Indonesia and the region more broadly.
For fiscal 2024, the Company is focused on increasing gross
profit, by increasing user engagement through the development of
new products and services to grow engagement and stickiness of
users, thereby generating higher profit and margins.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast today,
Friday, September 29th at 8:30 a.m. Eastern Time featuring remarks
by Sam Teo, CEO and Michael Chan, CFO.
Event: |
Treasure Global Fourth Quarter & Fiscal Year 2023 Results
Conference Call |
Date: |
Friday, September 29,
2023 |
Time: |
8:30 a.m. Eastern Time |
Live
Call: |
+1-877-704-4453 (Toll Free) or
+1-201-389-0920 (International) |
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1634514&tp_key=e0df02540a |
|
|
For interested individuals unable to join the conference call, a
replay will be available through October 13, 2023, at
+1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671
(International). Participants must use the following code to access
the replay of the call: 13741227. 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
F&B management system providing merchants with a one-stop
management and automated solution to digitalize their businesses.
Treasure Global also acts as a master franchiser in SEA for popular
restaurant chains, while providing them with the TAZTE solution. As
of September 25, 2023, ZCITY had over 2,600,000 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 registration statement
and prospectus for the Company’s initial public offering filed with
the 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 ContactPhill CarlsonKCSA
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
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
4,593,634 |
|
|
$ |
1,845,232 |
|
Accounts receivable, net |
|
163,169 |
|
|
|
- |
|
Inventories |
|
400,543 |
|
|
|
216,069 |
|
Other receivables and other current assets |
|
613,125 |
|
|
|
8,780 |
|
Other receivable, a related party |
|
12,379 |
|
|
|
- |
|
Prepayments |
|
248,551 |
|
|
|
203,020 |
|
Total current assets |
|
6,031,401 |
|
|
|
2,273,101 |
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS |
|
|
|
|
|
|
|
Property and equipment, net |
|
279,600 |
|
|
|
337,645 |
|
Operating lease right-of-use assets |
|
61,377 |
|
|
|
- |
|
Deferred offering costs |
|
- |
|
|
|
93,536 |
|
Total non-current assets |
|
340,977 |
|
|
|
431,181 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
6,372,378 |
|
|
$ |
2,704,282 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ DEFICIENCY |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Related party loan, current portion |
$ |
5,323 |
|
|
$ |
4,505 |
|
Insurance loan |
|
160,292 |
|
|
|
- |
|
Convertible notes payable, net of unamortized discounts of $358,284
and $717,260 as of June 30, 2023 and 2022, respectively |
|
4,791,716 |
|
|
|
10,954,042 |
|
Convertible notes payable, related parties |
|
- |
|
|
|
2,437,574 |
|
Loans from third parties |
|
- |
|
|
|
1,417,647 |
|
Accounts payable |
|
42,853 |
|
|
|
25,397 |
|
Accounts payable, related parties |
|
- |
|
|
|
14,326 |
|
Customer deposits |
|
161,475 |
|
|
|
73,317 |
|
Contract liabilities |
|
157,080 |
|
|
|
56,757 |
|
Other payables and accrued liabilities |
|
723,396 |
|
|
|
1,161,860 |
|
Other payables, related parties |
|
1,660 |
|
|
|
- |
|
Amount due to related parties |
|
320,960 |
|
|
|
2,060,088 |
|
Operating lease liabilities |
|
40,274 |
|
|
|
- |
|
Income tax payables |
|
67,546 |
|
|
|
16,445 |
|
Total current liabilities |
|
6,472,575 |
|
|
|
18,221,958 |
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
22,036 |
|
|
|
- |
|
Related party loan, non-current portion |
|
8,099 |
|
|
|
13,883 |
|
Senior note |
|
- |
|
|
|
65,000 |
|
Total non-current
liabilities |
|
30,135 |
|
|
|
78,883 |
|
TOTAL
LIABILITIES |
|
6,502,710 |
|
|
|
18,300,841 |
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
(Note 15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ DEFICIENCY |
|
|
|
|
|
|
|
Common stock, par value $0.00001; 170,000,000 shares authorized,
17,901,353 and 10,545,251 shares issued and outstanding as of June
30, 2023 and 2022, respectively |
|
180 |
|
|
|
105 |
|
Additional paid-in capital |
|
31,485,556 |
|
|
|
4,020,552 |
|
Accumulated deficits |
|
(31,443,451 |
) |
|
|
(19,715,740 |
) |
Accumulated other
comprehensive (loss) income |
|
(172,617 |
) |
|
|
98,524 |
|
TOTAL STOCKHOLDERS’
DEFICIENCY |
|
(130,332 |
) |
|
|
(15,596,559 |
) |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ DEFICIENCY |
$ |
6,372,378 |
|
|
$ |
2,704,282 |
|
The accompanying notes are an integral part of
these consolidated financial statements.
TREASURE GLOBAL INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS |
|
|
For the Years EndedJune 30, |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
Revenues |
$ |
69,408,319 |
|
|
$ |
79,674,879 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
(68,885,035 |
) |
|
|
(79,198,691 |
) |
|
|
|
|
|
|
|
|
Gross profit |
|
523,284 |
|
|
|
476,188 |
|
|
|
|
|
|
|
|
|
Selling |
|
(4,721,723 |
) |
|
|
(6,282,465 |
) |
General and
administrative |
|
(4,670,030 |
) |
|
|
(2,819,811 |
) |
Research and development |
|
(549,065 |
) |
|
|
(266,716 |
) |
Stock-based compensation |
|
(819,332 |
) |
|
|
(1,283,994 |
) |
Total operating expenses |
|
(10,760,150 |
) |
|
|
(10,652,986 |
) |
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
(10,236,866 |
) |
|
|
(10,176,798 |
) |
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME |
|
|
|
|
|
|
|
Other (expense) income, net |
|
(7,937 |
) |
|
|
54,854 |
|
Interest expense |
|
(95,242 |
) |
|
|
(341,609 |
) |
Amortization of debt discount |
|
(1,290,050 |
) |
|
|
(1,266,861 |
) |
TOTAL OTHER EXPENSE, NET |
|
(1,393,229 |
) |
|
|
(1,553,616 |
) |
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(11,630,095 |
) |
|
|
(11,730,414 |
) |
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
(97,616 |
) |
|
|
(15,600 |
) |
|
|
|
|
|
|
|
|
NET LOSS |
|
(11,727,711 |
) |
|
|
(11,746,014 |
) |
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(271,141 |
) |
|
|
154,104 |
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS |
$ |
(11,998,852 |
) |
|
$ |
(11,591,910 |
) |
|
|
|
|
|
|
|
|
LOSS PER SHARE |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.70 |
) |
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
Basic and diluted |
|
16,691,956 |
|
|
|
10,469,396 |
|
The accompanying notes are an integral part of
these consolidated financial statements.
Treasure Global (NASDAQ:TGL)
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