Treasure Global Reports Second Quarter Fiscal Year 2024 Results

Increased Registered Users to Over 2.68 Million as of December 31, 2023

Reported Gross Profit of Approximately $0.35 Million for Second Quarter Fiscal 2024, up 48% Year-Over-Year

Closed $4.0 Million Public Offering and Signed Agreement to Retire Convertible Debt Notes

Hosted First-Ever AI Robot for TikTok Live Commerce in Malaysia

Announced Collaboration with AIO Synergy Solutions on Development of Data Center for AI Applications

NEW YORK and KUALA LUMPUR, Malaysia, Feb. 14, 2024 (GLOBE NEWSWIRE) -- 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 15^th 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 [phone] (International)
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1654371&tp_key=065b94 ...

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 [phone] (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 Inc
Treasure 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 Statements
This 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 Contact
Erika Kay
KCSA Strategic Communications
[e-mail]

Malaysian Investor Contacts
[e-mail]

Media Contact
Sue Chuah, Chief Marketing Officer
Treasure Global Inc
[e-mail]

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 Months Ended December 31,								For the Six Months Ended 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.