Treasure Global Inc (NASDAQ: TGL) (“TGL,” or the “Company”), an
innovative technology solutions provider, today reported its
financial results for the first quarter of fiscal 2024 ended
September 30, 2023, and provided a business update.
“TGL has made significant progress as we
continue to grow in the technology and Food & Beverage
(“F&B”) sectors, while also expanding into new markets,” said
Sam Teo, Chief Executive Officer of TGL. “Through the integration
of our artificial intelligence (“AI”) technology chatbot into
ZCITY, we showed our capability as an agile technology solutions
company and a leader in the AI-driven e-commerce space. We have
since announced several new offerings across our platforms that
demonstrate leading-edge innovation, including TikTok Live
Commerce, a platform for live commerce sessions built on
AI-technology from Tencent, and the release of TAZTE 2.0, an
upgraded version of our digital F&B management system.”
“Through strategic partnerships recently
secured, we expanded our addressable markets beyond Malaysia into
Indonesia and also into new segments, which we believe will provide
new streams to generate revenue. We have proven that we can respond
to changing market demand in order to stay relevant to our
customers, shifting into areas such as travel and health and
wellness. For the remainder of fiscal 2024, we are focused on
further growing our total addressable markets, converting them to
new revenue channels and continuing to grow margins and profit
further,” Mr. Teo concluded.
Recent Business Highlights
- Over 2.66 million Registered Users
as of November 6, 2023.
- 36% of Paid Users transacted three
or more times in the quarter.
- Quarterly Active Users for the
quarter ending September 30, 2023, were 187,180.
- Paid Users increased by 4.7%
year-over-year.
- A total of 1.33 million
transactions were transacted by our registered users over the first
quarter and quarter to date for fiscal year 2024.
- Integrated Jojo, the personalized
AI-chatbot assistant, into the Company’s ZCITY app.
- Launched TAZTE 2.0, an upgraded
version of the Company’s digital food and beverage F&B
management system with increased functionality for users.
- Announced the introduction of an AI
robot that conducts extended-hour live commerce sessions on
TikTok.
- Launched its ZCITY App Merchant AI
engine in collaboration with Boost, the regional fintech arm of
Axiata.
- Signed a Letter of intent to create
an e-commerce venture in Indonesia called PT Harmoni Bagi Dunia
(“HBD”) which gives HBD exclusive rights to operate the ZCITY app
in Indonesia. This venture was formed with industry pioneers Ariadi
Anaya and Budihardjo Iduansjah, and TGL will hold a 70% stake in
HBD.
- Signed a collaboration agreement
with VCI Global Limited, a consulting group, to develop an
AI-powered travel platform.
- Signed a Memorandum of
Understanding with the Malaysia Retail Chain Association, laying
the foundation for TGL to become its exclusive partner as the
recommended digital F&B Management solution to its members in
Malaysia.
- Announced a partnership with UCSI
Hospital to formalize to promote the Malaysia Healthcare Tourism
program. ZCITY’s enogy, a provider of health and wellness products
available in the ZCITY app, will play a significant role in the
spearheading of health tourism and stem cell therapies in the
Indonesia, Hong Kong and China markets.
- Collaborated with Borderland Music
Festival 2023 to provide the first cashless ticketing platform for
a music festival in Malaysia using the Company’s proprietary ZCITY
platform.
- Partnered with the Ministry of
Domestic Trade and Cost of Living with the launch of “Package
Rahmah” which is part of the Malaysian government’s cost-saving
initiatives. This will utilize TGL’s ZCITY app which is part of
TGL’s unique digital lifestyle platform.
- Announced that a popular F&B
brand under the Treasure Global umbrella Abe Yus Malaysia (“Abe
Yus)”, had gained access to the Perbadanan Nasional Berhad
Pre-Franchise Program. This allows Bumiputera entrepreneurs to
access startup financing and encourages culinary development. Also
subsequently announced that Abe Yus will expand its distribution to
supply its best-selling curry puffs to the world’s largest
convenience store.
Financial Results for the First Quarter of Fiscal Year
2024
Total revenues for the first quarter ended
September 30, 2023, were $13.5 million, compared with $15.6 million
for the first quarter in 2023. The decrease in revenues was
primarily due to the Company’s focus on increasing growth in
higher-margin revenue channels.
Gross profit for the first quarter 2024 was
approximately $0.16 million, a 338% improvement year-on-year, from
approximately $0.04 million for the first quarter 2023. 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 $2.1 million for the
first quarter of 2024, compared to $3.7 million for the first
quarter of 2023.
Cash and cash equivalents were approximately
$2.6 million as of September 30, 2023, compared to approximately
$7.0 million as of September 30, 2022.
Outlook for Second Quarter 2024
The Company believes it is well-positioned 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 year 2024, TGL 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,
as well as further growing its user base and addressable
market.
Conference Call and Webcast
Information The Company will host a conference
call and audio webcast today, Wednesday, November 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 First Quarter
of Fiscal Year 2024 Results Conference Call |
Date: |
Wednesday, November 15,
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=1639237&tp_key=10cd9eef1c |
For interested individuals unable to join the
conference call, a replay will be available through November 29,
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: 13742080. 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 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 November 6, 2023, ZCITY had over
2,660,000 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 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
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
|
(Unaudited) |
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,616,384 |
|
|
$ |
4,593,634 |
|
Accounts receivable, net |
|
|
152,823 |
|
|
|
163,169 |
|
Inventories |
|
|
382,995 |
|
|
|
400,543 |
|
Other receivables and other current assets |
|
|
761,631 |
|
|
|
613,125 |
|
Other receivable, a related party |
|
|
12,303 |
|
|
|
12,379 |
|
Prepayments |
|
|
254,220 |
|
|
|
248,551 |
|
Total current assets |
|
|
4,180,356 |
|
|
|
6,031,401 |
|
|
|
|
|
|
|
|
|
|
Other
assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
247,403 |
|
|
|
279,600 |
|
Operating lease right-of-use assets |
|
|
51,351 |
|
|
|
61,377 |
|
Investment in marketable securities |
|
|
1,060,172 |
|
|
|
- |
|
Total other assets |
|
|
1,358,926 |
|
|
|
340,977 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
5,539,282 |
|
|
$ |
6,372,378 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ DEFICIENCY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Related party loan, current portion |
|
$ |
5,494 |
|
|
$ |
5,323 |
|
Insurance loan |
|
|
80,736 |
|
|
|
160,292 |
|
Convertible notes payable, net of unamortized discounts of $119,402
and $358,284 as of September 30, 2023 and June 30, 2023,
respectively |
|
|
3,730,598 |
|
|
|
4,791,716 |
|
Accounts payable |
|
|
133,847 |
|
|
|
42,853 |
|
Customer deposits |
|
|
152,814 |
|
|
|
161,475 |
|
Contract liability |
|
|
1,209,171 |
|
|
|
157,080 |
|
Other payables and accrued liabilities |
|
|
717,600 |
|
|
|
723,396 |
|
Other payables, related parties |
|
|
3,948 |
|
|
|
1,660 |
|
Amount due to related parties |
|
|
319,815 |
|
|
|
320,960 |
|
Operating lease liabilities |
|
|
31,733 |
|
|
|
40,274 |
|
Income tax payables |
|
|
62,589 |
|
|
|
67,546 |
|
Total current liabilities |
|
|
6,448,344 |
|
|
|
6,472,575 |
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
|
20,546 |
|
|
|
22,036 |
|
Related party loan, non-current portion |
|
|
6,755 |
|
|
|
8,099 |
|
Total non-current
liabilities |
|
|
27,301 |
|
|
|
30,135 |
|
Total
liabilities |
|
|
6,475,645 |
|
|
|
6,502,710 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’
DEFICIENCY |
|
|
|
|
|
|
|
|
Common stock, par value $0.00001; 170,000,000 shares authorized,
20,723,825 and 17,901,353 shares issued and outstanding as of
September 30, 2023 and June 30, 2023, respectively |
|
|
208 |
|
|
|
180 |
|
Additional paid-in capital |
|
|
32,811,166 |
|
|
|
31,485,556 |
|
Accumulated deficit |
|
|
(33,575,163 |
) |
|
|
(31,443,451 |
) |
Accumulated other comprehensive loss |
|
|
(172,574 |
) |
|
|
(172,617 |
) |
Total stockholders’
deficiency |
|
|
(936,363 |
) |
|
|
(130,332 |
) |
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ deficiency |
|
$ |
5,539,282 |
|
|
$ |
6,372,378 |
|
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
|
TREASURE GLOBAL INC. AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|
|
|
For the Three MonthsEnded September
30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Revenue |
|
$ |
13,463,895 |
|
|
$ |
15,556,340 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
(13,301,261 |
) |
|
|
(15,519,247 |
) |
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
162,634 |
|
|
|
37,093 |
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
(761,703 |
) |
|
|
(1,293,030 |
) |
General and
administrative |
|
|
(1,237,167 |
) |
|
|
(810,746 |
) |
Research and development |
|
|
(82,392 |
) |
|
|
(129,297 |
) |
Stock-based compensation |
|
|
- |
|
|
|
(439,332 |
) |
Total operating expenses |
|
|
(2,081,262 |
) |
|
|
(2,672,405 |
) |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,918,628 |
) |
|
|
(2,635,312 |
) |
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
|
|
|
Other income, net |
|
|
28,400 |
|
|
|
14,325 |
|
Interest expense |
|
|
(47,849 |
) |
|
|
(41,785 |
) |
Unrealized holding gain on marketable securities |
|
|
60,172 |
|
|
|
- |
|
Amortization of debt discount |
|
|
(238,882 |
) |
|
|
(998,076 |
) |
Total other expense, net |
|
|
(198,159 |
) |
|
|
(1,025,536 |
) |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(2,116,787 |
) |
|
|
(3,660,848 |
) |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
(14,925 |
) |
|
|
(11,500 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(2,131,712 |
) |
|
|
(3,672,348 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss) |
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
43 |
|
|
|
(135,276 |
) |
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
$ |
(2,131,669 |
) |
|
$ |
(3,807,624 |
) |
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.26 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
19,051,153 |
|
|
|
13,909,851 |
|
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
Treasure Global (NASDAQ:TGL)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Treasure Global (NASDAQ:TGL)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024