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 jason.phua@yygroupholding.com
U.S. Investor Contact Jack Perkins KCSA Strategic Communications YYGroup@kcsa.com
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
