Full Year 2023 Treasure Global Inc Earnings Call
Good day everyone and welcome to Global Treasurer Ang's fourth quarter and fiscal year 2023 conference call. At this time, participants are in a listen only mode. A question and answer session will follow management's remarks. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the conference over to Sophia Bashford, Senior Account Director Investor Relations for KCSA for introductions and the reading of the Safe Harbour Statement. Please go ahead.
Thank you operator. Good morning everyone and welcome to
Treasure Global's fourth quarter and fiscal year, 2023, results conference call. With us on today's call are Sam Tio's Chief Executive Officer, Michael Chan, Chief Financial Officer, and Jeremy Roberts in the Penn Director.
Before we begin, I would like to remind you that today's call contains that before booking statements from our management, made within the meaning of section 27A of the Security Act of 1933, as amended and section 21E of the Security Act of 1934, as amended concerning future events.
Words such as may, should, project, expect, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. Racial winger in existenceClass regulated
These statements are subject to numerous conditions, many of which are beyond the control of the company, including those that fall off in the risk-backed section of the company's form 10K for the year ended June 30, 2022, filed with the FCC.
Copsies of this document are available on the SSEs website at www.scc.gov. 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 a vision of changes off to the date of its call, except is required by law.
Now, it is my pleasure to introduce Sam Teo, CEO of TGL. Sam, please go ahead.
Thanks, Sophia. And thank you, everyone, for joining us today on our four quarter and fiscal year 2023 earning conference call for the period ended June 30th, 2023. I'm happy to be here with...
to provide an update on our business. Firstly, I will retract Treasure Grover and our Main Groove Driver followed by a review of specific highlights from the 4th quarter and subsequent to the quarter end.
I will then repeat our vision for growth and how we have.
the proper to achieve this
Our Chief Financial Officer, Michael Chan, will then discuss the financial highlights for our folk butter and fiscal year financial result. Following that, we will be happy to answer your question.
Threshold Grover or 3GL is a Malaysian solution.
Syllobic in-n-n-n-wet-teeth technology platform. We have a strong threat record of developing cutting-edge solutions for our customer base. And through our proprietary technology platform, we develop two primary technology solutions, recity and taste.
Definitely
Connect online e-commerce with offline physical retailers
Given our experience and success within the food and beverage industry, we established a third-growth driver to this year's S&FOODMBERRASH Master of franchise-all, which we launched as food-less. We believe.
opportunity to leverage our platform to reach a more expensive consumer base and are able to introduce new products and innovation which we expect to try our growth in the year ahead.
Before discussing the various new growth opportunities that we are now advancing, I will write.
The advancement that we made with Zestity and Case in fiscal 2033 and in the four quarter. Which has expanded our market footprint and helped our wish to new markets and customer segment.
Our first property product, the ZXCD-8, is a T
The CBI lifestyle meet with instant rebase and effort test per program. ZACITY, surfboard consumer and merchant to maximize radio creation and enhance the shopping experience. Today, we have been highly successful and we could be a large and growing number of impercepts.
gaining more than 2.6 million registered users and over 2000 merchants. We have achieved this growth through innovative enhancement and strategy partnership. In the fourth quarter, we integrated AI technology into our Z-City app with a user-friendly chatbot power bike.
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allowing us to offer consumer a more personalised and targeted reward as a student, our next chain. Personalised checkbox assistant, which we have named JoJo, when life in August for ZAC City user. And it's serving as a key market differentiator, positioning three treasure-cropored as a leader in the AI-driven e-commerce space.
Jojo used AI and deep learning to track user personal preferences to recommend idea promotion and products for them.
The added functionality is expected to enhance user retention and attract new customers to drive revenue growth, as well as early.
this subject. in love.
We secured a number of partnerships during the fourth quarter, which continue to be key to our organization.
All strategy. First, treasure, global, secure and exclusive partnership with ENOGY, the Health and Wellness brand. To expand the range of products available on e-commerce marketplace, ZX4, reaches house within the ZXCDF. These partnerships open a new market.
targeting the last and growing health and wellness industry. The new revenue stream for Enochi and other affiliate partner products sold on the Zesty Act is contributing to treasure global revenue growth. Margin expansion and PRAM present as the quantitative expansion of Moo.
In July , Treasure Global collaborated with the Malaysian Ministry of Domestic Check and Cost of Living for the launch of the Backage Rama program, which offers various financial saving initiatives, reducing the cost of living for lower income groups, including chose health and safety in the case of zoo, Jo.
As part of this, Zest City offers a comprehensive package of living essential e-vouchers on the app for items such as petrol, food and meals.
The initiative showcased Zacity's cutting-edge digital ecosystem and attracts new users.
so supporting this important social program.
In September , we collaborate with the modern music festival to provide the first castes and ticketing platform, Power Music Festival Imolation, Power Balazac City Act.
The city gained significant exposure during the event.
ticketing solution as well as penetrating the new market of Salawa. Treasure Global also charged fees for each ticket so providing a new revenue generation opportunity for the company.
Moving now to taste, our second proprietary solution which we were proud to launch during biscuit
Case is a transformation, digital foot embarrassment system, providing merchant with a one-stop management and automated solution to teach it a lot, they are distances.
Tastes, I love food and beverage, much to the street line, their operations, improve the operation if you can see it.
Serving. While just the revenue stream, a historically low margin, please offer an opportunity to generate higher cross margin for Trisha Grover through increasing user engagement and stickiness.
This is a product that merchant have come to really on for their business needs.
to stop using face face currently offer digital life processes including email use ordering a payment transaction recording with online payment or QR digital payment technology
Please, Smart Food Embarrassed System also provides a D-Violence Q system
proven to reduce staff labour and will offer a private domain of delivery services to access multiple dedicated delivery partners.
We are now excited to announce that we are currently developing Taste 2.0, which is expected to be launched within the next month. This upgrade is...
functionality on both the merchant and customer side. The additional functionality will provide a complete solution of a link, including merchant supply chain management and upstream purchasing, which we believe will significantly attract merchant to the platform. It will also provide a
friendly interface for customer and merchant in a larger console version. Since its launch, this has received positive feedback from user as well as staring growing the number of merchants and users. For the market source feedback, such as the merchant who has adopted this.
in transaction and bar stay radio as well as an increase in user stickiness with customer returning more often. Treasure Grober has been focused on expanding case throughout Malaysia and also to new markets. In July , Treasure Grober signed a...
Standing agreement with the Malaysia Retail Train Association for Peace to become the exclusive partners as the recommended digital food and beverage management solution to its members in Malaysia. Now...
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And it is recommended to his member to subscribe as taste matured. The MRC has over.
Ing more than four thousand out.
Another key partnership, wish has helped drive the growth of treasure, global network.
Chert and Food Embaraged Collider in our partnership with Boost Credit, a leading regional food spectrum feed that prayer, beside a memorandum of understanding with boost to leverage their digital financing solution, which includes working capital financing in moist financing and supply chain financing to further strengthen the taste of red.
As we expanded further into the food and beverage industry, through the development of the case.
We identified a significant opportunity which now fund the third growth driver for treasure global. We made the strategy decision to become a master franchise shop in Southeast Asia for popular restaurant chains while also recruiting them to our taste platform.
Under the subsidiary name, footly, that Precious Global had established to house foot and beverage master French Assault Activity.
We will manage our brand.
and related intellectual property truly, ownership on German agreement with brands that we secure partnership with. We will also provide for a bearish consulting.
including market and product optimization as well as supply chain monetization. But as a QDF.
Treasurer Global ends to become the larger food and beverage chain without owning any physical prints and mortar outlets. This union business model allows Treasurer Global to establish synergy with our technology solution depending on our position in the food and beverage industry.
Not only can we strategically grow our taste user based as we adopt it into new restaurant. Additionally, we are securing a new revenue stream for monthly licensing fee and start-up fee. In addition, we believe this strategy will help us to expand the use of our innovative solution more rapidly as well as to capture data on vital components of supply chain to better understand, improve and innovate our current solution and future solutions.
We have already made progress in our execution signing license agreement.
Asia brand. It may recite a licensing agreement with Morgan Field. A restaurant changed specializing in comfort food and American start barbecue.
licensed to grant subject licenses
Use Morgan Field Hofist Checkmark for the restaurant business
Muggeville will also adopt a place in the 9th FNIC in Malaysia, China and Singapore. Estuarating the roll-out of pace across the region. Not only will the pace be adopted into the existing 9th FNIC.
I have the opportunity to grant some licensee to the party to open additional Moghavi restaurant in the region that we also adopt. Most recently, we secured a license agreement with fast-crowing Malaysian food and beverage brand. I'll be used. I'm here.
Sublicency to the party to use his tradmaks under the agreement.
Treasure Grober flies to Grand Sublicency to any party to open additional ABA use businesses in Malaysia. As the Master Fence I saw, Treasure Grober will manage brand.
Enrol materials supply in addition. All the Arbe use food and beverage outlets will be optically to adopt, taste, across all their businesses. Again, treasure Grover will get additional revenue stream for monthly licensing fees, star fees for new locations.
management. Abbe used food and beverage group of businesses including the high selling curry puff from Greg and Go food cart as well as the Abbe used volume street food kiosk, Abbe used cafe restaurant and Abbe used B2C online e-commerce.
The chain currently has shaft outlet operating across Malaysia with plan to open the five outlet by the end of 2023 and 300 outlets to be opened over the next fire in the country.
In addition, other use brain to us.
in the Southeast Asian market in the future. Thank you very much for joining us today.
And we are focused on increasing gross margins for the ongoing development of each of these business channels.
We will talk about our significant market opportunity both in Malaysia, specifically a more broadly in Southeast Asia particularly Indonesia. Our domestic market of Malaysia has a growing population and solid near-term economy growth outlook.
Malaysia recorded a strong post pandemic recovery in 2022, at according to the IMF. Malaysia GDP growth is expected to maintain an average annual rate of 4.5% for the next five years, including 2023. It's a strong macroecon.
The work, including a track record of fiscal prudence and credible monetary policy framework, has contributed to the stabilized macro environment. Importantly, Malaysia has a very high rate of digital connectivity. We have a population of the...
of which 94% are internet users. Looking at our registered users, we have only penetrated 7.3% of our addressable market domestically for that city.
which is the makeup of a digitally connected consumer.
P I F T
In the F&B industry in Malaysia, there were more than 220,000 small to medium food and beverage business owners in Malaysia in the year 2021. And the market has been growing at an annual rate of 5.1% since 2015. We are confident that K&A will be able to produce more than 1,000 products in the world.
in automated solution for the sector. The expansion opportunity which include entry into other Southeast Asian market, which has much larger population similar demographic as significant.
In our roadmap, we plan to take into our neighboring countries such as Indonesia, Thailand, Vietnam, and Japan for regional expansion. As we have already announced, we are targeting Indonesia first, which has 10 times the population of Malaysia, but similar demographic and language to Malaysia. With both Malaysia and Indonesia being multi-technique and multi-
Right? That is the opportunity for several seasonal marketing campaign throughout the year around the valus religious holiday and festival. We have already taken significant step to enter the Indonesian market.
Recently we announced the company has filed
to form an e-commerce venture in Indonesia with Harmony Party Dunya, HPD. Tresher Grover will hold a 70% major state in HPD, and Tresher Grover will grant HPD My Foundation for Economic Equations
Yeah.
The letter of intent marks the beginning of the company expansion into the Indonesian market aligning with our strategy to grow internationally with innovative local partners.
The venture will provide treasure global and is provided at ZACID with F.
Network of through 100,000 merchants and data of 5 million users within the serverless industry in Indonesia.
The Indonesian market has a substantial internet user base of 213 million out of a population of 276 million from
for expansion of Trasian Global Doctor and Respiral Market.
We have also made a straight in developing new product to further expand our addressable market segment.
In July , we announced a collaboration agreement with VCIGrober to develop
Power Travel Platform as a new offering for travelers in Malaysia. The platform serves as a high-tech, portable, concierge, as offering real-time recommendations for travel planning, dining, exploring, and seamless booking for flight, hotel, and car renders.
This also includes advanced translation function to break down language barriers. Treasure Global and VCI Global will share ownership and profit from this collaboration.
positioning the company to tap into the post and dynamic travel bomb aspect to contribute significantly to the Malay.
by 2025. To sum up, we are proud of the progress we have achieved over the recent...
our business further. Now I will pass the call to Michael who will review our financial results in greater detail.
Thank you Sam and good morning everyone.
Today I will review our financial results for the fourth quarter and fiscal year ended June 30, 2023, compared to the same period in 2022.
Cultural revenue for the fiscal year ended June 30, 2023 vs 69th.
Compared with 79.7 million for fiscal year 2022.
For the fourth quarter, total revenue was 15.1 million, compared to 16.2 million for the same period last year.
Our revenue year-over-year were down because of our change in focus to increasing
managing business channel such as this
ZCT revenue streams are historically low margins, while PACE offers a new avenue for growth with stronger margins.
Our goal is to focus on higher margin revenue channels, increasing user engagement and stickiness by pro.
our user with new products and in the case of case a product that merchant come to rely on for their business needs
Gross profit for the year 2023 was 0.52 million, up from 0.48 million for the fiscal year ended June 30, 2022.
Showing that, initiated to grow, gross profit have already started to grow.
As Sam mentioned, ZCT had over 2.6 million registered users and over 2000 registered merchants as of September 24, 2023.
quarterly active users for the quarter ending June 30th
were 378,414 while paid users were up by 4.3%.
A total of 1.4 million transactions by our registered users were transacted over the years to June 30, 2023.
Our NetLock of Th black crossing year we
Year 2020 remained the same compared to fiscal year 2022. As of June 30th, 2023, our cash balance was approximately 4.6 million compared to a cash balance of approximately 1.8 million as of June 30th, 2020.
Active user retention rate was up 280% year over year and 41% of paid users transacted three or more times in a quarter, which is an increase of approximately 24% year over year.
Importantly, the quality of ZCT users has improved. When we see PEG users perform a test based on their needs,
Infections frequency in our ZCTM. We recorded approximately 1.4 million total transaction by a registered user in the fourth quarter fiscal year, 2023.
As we have already discussed, we are laser focused on increasing gross profit and margin.
are already working and we expect this to increase going forward as we roll out case further. Now I will turn the call back to Sam to discuss the market opportunities and growth vision.
Thanks, Micah. Treasure Global has made great headway in stable all card exchanges with our content and set-up.
So far, through our key product density, we are now looking to the future and the next stage of delivery on our growth plan of expanding further into the food and beverage industry in Malaysia through taste and fooding as well as Southeast Asia more broadly. We are focused on increasing.
through fiscal 2024 by increasing user engagement through new products and services development such as PACE to generate higher profit and margin.
We are at the beginning of our journey with significant growth opportunities ahead, through the application of our proprietary team.
we can offer consumers more personalized
As we continue to grow and refine how we analyze our customer data, we will continue to develop strategies to increase engagement and develop products and services that generate higher margins for our business.
This conflict will be prepared in March. Now I would like to open the call for questions. Operator please go ahead. Operator please go ahead.
Thank you. The floor is now open for questions. If you would like to ask a question, please press star 1 on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. Today's first question is coming from M. Marin. Please go ahead.
Thank you.
Good morning. I'm wondering about, you know, you mentioned during your prepared remarks, you talked a little bit about some of the agreements you've already formulated within the food and beverage sector. And I think, you know, some of those agreements are also designed to facilitate your own expansion as those food and beverage operators expand themselves. Can you talk a little bit about, you know, how you see that playing out over time and whether any of those companies, either Morgan Feld or another Abu Dhabi youth, whether they've announced any expansion plans recently? Thank you.
Thanks very much Marla for your question.
And we get benefits from that side as well. So it's mutually beneficial as they expand and as we expand as well. And I think the other thing I would add is as more of these groups sign up via food link, it also just increases the market, broader market awareness of sort of taste within the wider Malaysian food and beverage market. Sam, do you want to add any comments just specifically in terms of abay use and their expansion plans or Morganfield's near time?
Yeah, hi Jeremy. So basically for MOGA Fair, I've been used so we are starting in Malaysia. So as you're sharing just now, so we are just staff for this year. So coming that we will continue to especially for our use that we are targeted for these 30 outlets, sure that we adopt TASTE together so in order that we can be saying that we can digitalize the businesses and we can get more users engagement is to get on the TASTE platform.