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Financial Results for Fiscal 2024

Revenues

Revenue rose by HKD4.8 million, or 10.7% to HKD49.5 million (US$6.3 million) for the year ended June 30, 2024, up from HKD44.7 million in 2023.

The company provides cloud and data center managed services, including business planning, technical consulting, and managed services like remote network support and monitoring. The growth in these services was driven by increased revenue in Malaysia and Taiwan.

However, revenue from telecommunications, consultancy and related services declined due to the completion of specific projects in Hong Kong in the previous fiscal year, with no similar projects undertaken for the year ended June 30, 2024.

The following table presented the Company’s revenues disaggregated by service lines for the years ended June 30, 2024 and 2023:

Cost of Revenues

Cost of revenues includes expenses for consultants, employee compensation, and other third-party costs related to revenue-generating activities. For the year ended June 30, 2024, cost of revenues totaled HKD42.1 million (US$5.4 million), up HKD4.8 million from HKD37.3 million in 2023, primarily due to increased subcontracting expenses from more projects.

Gross Profit

Consequently, gross profit for the year ended June 30, 2024, was HKD7.3 million (US$0.9 million), a slight decrease of 0.8% from HKD7.4 million in 2023. Gross profit margin fell to 14.8%, or down 1.7%, from 16.5% the previous fiscal year, attributed to our offering competitive pricing to enter new markets.

General and administrative expenses

General and administrative expenses consisted primarily of motor car expenses, IT expenses, depreciation, legal and professional fees, accounting fee, director’s fee, salaries and employee benefits and others.

General and administrative expenses rose by 5.5% from HKD4.2 million in fiscal year 2023 to HKD4.5 million (US$573,766) in fiscal year 2024. This increase was primarily due to increases in salaries and employee benefits from a larger workforce in fiscal 2024, partially offset by a HKD132,411 (US$16,958) decrease in legal and professional fees related to the company's initial public offering in the U.S.

Net income

As a result of the above discussed, the Company recorded a net income of HKD2.6 million (US$332,403) for the year ended June 30, 2024, representing a decrease of HKD69,586, or 2.6%, from a net income of HKD2.7 million for the year ended June 30, 2023.

Recent development:

On September 23, 2024, the Company completed its initial public offering and raised gross proceeds of US$8 million before deducting underwiring discounts and other offering expenses.

On October 18, 2024, the Company closed the sale of an additional 300,000 ordinary shares, pursuant to the full exercise of the underwriter’s over-allotment option granted in connection with its initial public offering. As a result, it has raised gross proceeds of US$1.2 million, in addition to the previously announced IPO gross proceeds of US$8 million, for total gross proceeds of US$9.2 million raised in its initial public offering before deducting underwriting discounts and offering expenses.

About Global Engine Group Holding Limited
Global Engine Group Holding Limited is an integrated solutions provider that operates via a wholly-owned subsidiary incorporated in Hong Kong to deliver (i) ICT solution services which include the cloud platform deployment, IT system design and configuration, maintenance, data center colocation and cloud services; (ii) technical services which include the technical development, support, and outsourcing services for data center and cloud computing infrastructure, mobility and fixed network communications, as well as IoT projects; and (iii) project management services which enhances productivity and collaboration management and enables successful implementations and adoption of solutions for customers, to drive business outcomes and innovation for its customers. GLE’s target customer groups include: (i) small to medium-sized telecom operators and ICT service providers seeking expansion in Hong Kong and the South East Asian market; (ii) data center and cloud computing services providers; and (iii) Internet-of-things (“IoT”) solutions providers. For more information, please visit: www.globalengine.com.hk; ir.globalengine.com.hk/.

Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These forward-looking statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

* Giving retroactive effect to the 16,000-for-1 share split effected on October 18, 2022.

* Giving retroactive effect to the 16,000-for-1 share split effected on October 18, 2022.