TMCnet News

YY Group Reports Full-Year 2023 Financial Results
[May 14, 2024]

YY Group Reports Full-Year 2023 Financial Results


Revenue totaled $31.8 million, a 59% increase year-over-year

Gross Profit was $3.7 million, a 42% increase year-over-year

SINGAPORE, May 14, 2024 (GLOBE NEWSWIRE) -- YY Group Holding Limited (NASDAQ: YYGH) (“YY Group”, “YYGH”, or the “Company”), a data and technology-driven company that specializes in creating enterprise intelligent labor matching services and smart cleaning solutions, today announced its financial results for the full year ended December 31, 2023.

“We are pleased to report growing revenues and increased gross profits for 2023, up 59% and 42% year-over-year, respectively,” said Mike Fu, Founder and Chief Executive Officer of YY Group. “With our recent IPO on the Nasdaq and expansion into new countries, we continue to successfully execute our strategic plan, to grow the Company and create value for our shareholders.”

Full Year 2023 and Subsequent Operational Highlights:

  • Completed initial public offering of 1,125,000 Class A Ordinary Shares at $4.00 per share, for aggregate gross proceeds of approximately $4.5 million
  • Expanded into Australia, Vietnam and Cambodia hotel and hospitality markets

Full Year 2023 Financial Highlights:
All numbers below as of December 31, 2023

  • Revenue totaled $31.8 million, a 59% increase from $20.0 million, year-over-year
  • Cost of Revenue totaled $28.1 million, a 61% increase from $17.5 million, year-over-year
  • Gross Profit totaled $3.7 million, a 42% increase from $2.6 million, year-over-year
  • Operating profit and net profit of $1.4 million and $864,000, respectively

Total revenues increased by $11.8 million or approximately 59%, from $20.0 million for the year ended December 31, 2022, to $31.8 million for the year ended December 31, 2023. Total revenues increased due to an approximately 41% increase in cleaning services and an approximately 94% increase in manpower outsourcing services.

Gross profit increased by $1.1 million, from $2.6 million to $3.7 million or approximately 42% primarily due to the increase in gross profit from both cleaning and manpower services.

For the year ended December 31, 2023, we generated operating profit and net profit of $1.4 million and $864,000, respectively.

The total cost of revenue increased by $10.6 million or 61%, from $17.5 million for the year ended December 31, 2022, to $28.1 million for the year ended December 31, 2023. The approximately 61% overall increase in cost of revenue is primarily driven by an increase in manpower cost incurred in both cleaning services and manpower outsourcing services, primarily due to an increase in hourly charging rate of casual labors, increase in customers demand and orders fulfilled as a result of expansion of business.

General and administrative expenses increased by $937,200, or approximately 31%, from $2.9 million for the year ended December 31, 2022, to $3.8 million for the year ended December 31, 2023, mainly due to an increase in staff expenses resulted from increased number of employees and administrative expenses to support expanded business.

As of December 31, 2023, the Company had cash balances of $467,235, current assets of $10.2 million and current liabilities of $6.0 million, which resulted in a positive working capital of $4.2 million.

About YY Group Holding Limited
YY Group Holding Limited is a Singapore-based company dedicated to redefining digital interactions and creating impactful connections in the ever-evolving digital landscape. Rooted in innovation and a commitment to user-centric experiences, YY Circle leverages cutting-edge technology to foster engagement, collaboration, and community building.
For more information, please visit https://yygroupholding.com/.

Forward Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to the proposed initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, 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 preliminary prospectus for the Company's offering filed with the SEC. Copies of these documents are available on the SEC's website, www.sec.gov. 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:
Singapore Investor Contact
Phua Zhi Yong, Chief Financial Officer
YY Group
[email protected]

U.S. Investor Contact
Jack Perkins
KCSA Strategic Communications
[email protected]


        
YY GROUP, CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31 2023
 
  Note 2023 2022 
  (As revised2) 
    USD USD 
Assets       
Current assets:       
Cash 5 467,235 161,022 
Trade receivables 6 7,037,942 4,155,737 
Prepayment and other current assets 7 2,667,166 425,649 
Amount due from related parties 18 31,298 457,312 
Total Current Assets   10,203,641 5,199,720 
        
Non-current assets:       
Right-of-use assets 8 78,434 210,651 
Property and equipment, net 9 368,621 278,866 
Prepayment, non-current 7 18,656 - 
Deferred tax assets 17 738 78,545 
Total Non-current assets   466,449 568,062 
        
Total Assets   10,670,090 5,767,782 
        
Currents Liabilities:       
Trade and other payables 10 2,996,636 2,013,743 
Amount due to related parties 18 67,521 74,292 
Lease liabilities, current 11 69,135 147,474 
Loans and borrowings, current 11 2,856,491 1,279,314 
Total Current Liabilities   5,989,783 3,514,823 
        
Non-current Liabilities:       
Loans and borrowings, non-current 11 523,607 503,286 
Convertible notes – liability component 11 - 736,129 
Lease liabilities, non-current 11 15,187 71,895 
Total Non-current Liabilities   538,794 1,311,310 
Total Liabilities   6,528,577 4,826,133 
        
Equity       
Share Capital* 12 3,564,150 1,228,037 
Reserves 12 20,667 20,825 
Retained earnings (accumulated deficit)   545,797 (306,537
Equity attributable to owners of the Company   4,130,614 942,325 
        
Non-controlling interests   10,899 (676)
Total equity   4,141,513 941,649 
        
Total liabilities and equity   10,670,090 5,767,782 




 
YY GROUP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AS OF DECEMBER 31 2023
 
  Note 2023  2022 
    (As revised2) 
    USD  USD 
Revenue 14 31,772,286  20,022,529 
Cost of revenue 15 (28,120,506) (17,450,131)
Gross profit   3,651,780  2,572,398 
         
Other income 15 1,830,899  1,952,420 
Selling and marketing expenses 15 (191,582) (325,678)
General and administrative expenses 15 (3,846,367) (2,909,167)
Other expenses   (27,781) (57,113)
Operating profit   1,416,949  1,232,860 
         
Finance cost 16 (328,610) (329,370)
Profit before tax   1,088,339  903,490 
Income tax (expenses) benefit 17 (224,302) (142,150)
Profit for the year   864,037  761,340 
Other comprehensive income (loss)        
Foreign currency translation differences - foreign operations   7,301  26,931 
Total comprehensive income for the year   871,338  788,271 
         
Profit (loss) attributable to:        
Equity owners of the Company   852,334  761,628 
Non-controlling interests   11,703  (288)
         
Profit for the year   864,037  761,340 
         
Total comprehensive income (loss) attributable to:        
Equity owners of the Company   859,763  788,947 
Non-controlling interests   11,575  (676)
Total comprehensive income for the year   871,338  788,271 
         
Basic earnings per share* 13 0.02  0.02 
         
 Diluted earnings per share*  13 0.02  0.02 



 
YY GROUP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AS OF DECEMBER 31 2023
       
  2023  2022 
    (As revised2) 
  USD  USD 
Operating activities      
Profit for the year 864,037  761,340 
Adjustments for:      
Depreciation of property and equipment (Note 9) 122,695  213,206 
Depreciation of right-of-use assets (Note 8) 165,862  127,352 
Finance Cost (Note 16) 328,610  329,370 
Loss on disposal of property and equipment -  48,395 
Gain on lease termination (860) - 
Income tax expenses (benefit) (Note 17) 224,302  142,150 
  1,704,646  1,621,813 
Changes in operating assets and liabilities:      
Trade receivables (1,636,577) (192,652)
Trade and other payables 879,705  (89,769)
Amount due to related parties (285,927) (22,083)
Prepayment and other assets (182,850) (121,436)
Cash provided by operations 478,997  1,195,873 
Interest paid (308,651) (225,193)
Income tax paid (118,638) (75,736)
Income tax refund -  40,329 
Net cash provided by operating activities 51,708  935,273 
       
Investing activities      
Purchase of property and equipment (Note 9) (224,185) (112,113)
Net cash used in investing activities (224,185) (112,113)
       
Financing activities      
Issuance of Class A shares -  212,450 
Issuance of a convertible loan -  743,273 
Proceeds from guaranteed bank loans 931,862  1,603,768 
Repayment from a shareholder’s loan 1,852,945  - 
Loan to a shareholder (1,146,464) (1,035,306)
Loan to a related party -  (25,167)
Payment of lease liabilities (178,040) (133,382)
Payment of listing expenses (439,513) - 
Repayment of guaranteed bank loans (550,426) (2,091,971)
Net cash provided by (used in) financing activities 470,364  (726,335)
Effect of foreign exchange of cash 8,326  (1,796)
Net increase in cash 306,213  95,029 
Cash balances at beginning of year 161,022  65,993 
Cash balances at end of year (Note 5) 467,235  161,022 


[ Back To TMCnet.com's Homepage ]