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spk03: Ladies and gentlemen, thank you for standing by. Treasure Global, Inc. will present their call in just a moment. Please continue to stand by. Treasure Global, Inc. will begin in just a few moments. Thank you. Thank you. Thank you. Thank you. Thank you. Greetings and welcome to Treasure Global Inc. Fiscal Year 2022 Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Allison Soss, Senior Vice President, KCSA. Thank you. You may begin.
spk00: Thank you, Operator. Good morning, everyone, and welcome to Treasure Global's fiscal year 2022 results conference call. With us on today's call are Sam Teo, Chief Executive Officer, Dalvin Chan, Chief Financial Officer, and Jeremy Roberts, Independent Director. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management made within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934 as amended, including with respect to the company's recent IPO and the anticipated use of the net proceeds, as well as concerning future events. Words such as may, should, rejects, expects, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factor section of the company's registration statement and the final perspectives for the company's initial public offering filed with the SEC. Copies of these documents are available on the SEC's website at www.sec.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 revisions or changes after the date of this call, except as required by law. Now, it is my pleasure to introduce Sam Teo, CEO of TGI. Sam, please go ahead.
spk01: Thanks, Edison. And thank you everyone for joining us today on our fiscal year 2022 earnings conference call. I would like to start by saying we are extremely happy to have you all here. With the filing of our annual report, we are one step closer to regaining full compliance with the NASDAQ after having overcome a disappointing situation with our audit process, which is the reason for our delay. As this is our first earnings conference call as a public company, before reviewing the highlights of the fiscal year 2022 and providing you with an update of the subsequent months, I would like to talk a little bit about who we are, our history, our accomplishments and how we have positioned the business for future growth. Afterward, our Chief Financial Officer, Javin Chan, will review the highlights of our fiscal year financial results. Following that, we will be happy to take your questions. Treasure Global It's an innovative online to offline e-commerce platform business model, bringing together the world of online e-commerce and offline physical retailers, widening the consumer choice and rewarding loyalty while growing our revenue potential. We provide seamless payment solutions for consumers and merchants with instant repay and effect cashback program. Our vision is to develop a portfolio of reading digital platforms for use throughout Southeast Asia and Japan. We started the company in 2020 and successfully launched our proprietary product, the ZCT app, in Malaysia in June of the same year. ZCT is a powerful, unique and integrated app that simplifies the e-payment experience for consumers while at the same time allowing them to earn rewards. ZyCity serves both consumers and merchants in ways that concurrently maximize value creation and enhance the shopping experience. Our growing customer and merchant database will ultimately provide a valuable insight into customer behavior and engagement. As of November 30, 2022, ZyCity had over 2.3 million registered users and 234,000 monthly active users. We are at the beginning of our journey with significant growth opportunities ahead. Through the application of our proprietary developed AI technology, we can offer consumers a more personalized and targeted reward offering and experience. 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 margin for our business. When you consider natural growth opportunity in our home market and our regional expansion plan, we feel very excited about our future. Taking a closer look at our total addressable market, Our domestic market of Malaysia has a growing population and solid near-term economic growth outlook. Along with Southeast Asia more broadly, Malaysia has experienced strong consistent economic performance with growth in GDP, income per capita, and importantly, digital connectivity. We have 33 million population in Malaysia and 90% are internet users as of November 2022. We managed to capture 7% to become Zaxity user, meaning to say they are 93% untapped market. This has been achieved despite Malaysia's strict COVID-19 lockdown of its borders and businesses for two years, which was only lifted in April of 2022. TGI has built and proven its infrastructure in Malaysia. In our roadmap, we plan to tap into neighboring countries such as Indonesia, Japan, Vietnam, Philippines, Thailand as part of our regional expansion. Our intention is to target Indonesia first, which has 10 times the population of Malaysia, but similar demographic and language to Malaysia, with both Malaysia and Indonesia being multi-ethnic and multi-religious society. There is the opportunity for several seasonal marketing campaigns throughout the year around the various religious holidays and festivals. To continue to capture market share, we have implemented a strategy marketing strategy. become a well-recognized brand in only a short period of time because we have established partnerships with numerous top brands that boost Jack City brand awareness and image. Our marketing collaboration allowed us to leverage local strategy partners, including Tash & Go and GrabPay, to accelerate Jack City user acquisition. This is made possible because Jack City is seen as an aggregator rather than a competitor. Recently, TGI announced a partnership with the Reading Retail Petroleum Company in Malaysia to run a marketing campaign in which Zaxity provides users with the chance to win six months of complimentary fuel when they spend through the Zaxity apps. Since the campaign launch, we are seeing this activation drive traffic to our platform and also incentivize users to keep spending through our apps. We have also partnered with two well-known local banks. Zaxity is being recognized as their strategy partner for all of their joint rewards campaigns. We are confident that by partnering with these market leaders, we can continue to boost Zaxity brand awareness and increase the conversion of users. In addition, we look to partner to enhance our platform. In October, we signed an MOU with iPay88. a reading regional payment gateway provider in Southeast Asia. Through our agreement IP88, it's providing e-commerce and retail payment solutions for Zaxity not only in Malaysia, but also additional Southeast Asian countries including Indonesia, Thailand, and the Philippines, driving our regional expansion. IP88 also offers features such as recurring payment solution and buy now, pay later, which we have the opportunity to leverage in the future. Now, returning to our growing platform. We have developed our first product in our solution strategy. PACE, an innovative digital food and beverage management system providing merchants with a one-stop touchless management and automated solution to digitalize their business which will modernize the F&B industry in Malaysia which strengthens our ecosystem. We begin beta testing back in Zoom with a select group of merchants And at the end of August, we launched the open beta version. I'm pleased to say we have seen early encouraging metrics from the taste beta version in terms of both increasing user engagement and order frequency. We believe it has the potential to strengthen our ecosystem by improving engagement and stickiness between user and merchant through taste and be a key differentiator for us. As a result, I am excited to inform you that we will be publicly launching the taste in the next few weeks. Further announcements will be made over the coming weeks. Currently, the F&B vertical is full of inefficiency and taste has been designed to address this, thereby making operations is more efficient and cutting costs for merchants. Taste has automated solutions for all F&B business and customer needs, from e-menus, ordering, and e-payment, connecting merchants and users to speed up every process. Users in the ZyCity platform will be trafficked to Taste. Therefore, merchants will also benefit from the growing TGI user base of over 2.3 million registered users, providing them with data to learn about customer demographics, spending habits, purchase trend and more. This will allow them to identify opportunity to increase sales or optimize offering. So, taste is let merchant make smarter decision with data and see how their business is performing from their mobile devices, anyway, anytime. Looking at the F&B S&E data in Malaysia, There were more than 220,000 F&B business owners in Malaysia in 2021. This market is growing gradually with the annual growth rate of 5.1% since 2015. We are aiming to become the ultimate solution market leader in F&B industry. ZECITY has huge potential for us to grow and build. And most importantly for TGI, PACE will increase the profit margin expansion for Zaxity. They will be charged on monthly GNV to the merchants and full-size onto used PACE. Turning to our fiscal year 2022 financial results, I increased revenue where $79.7 million for the fiscal year 2022. a 468% increase compared to $14 million for the fiscal year 2021. We have six main revenue streams that created an outstanding achievement in a short period of time. Firstly, eVoucher sales. This has been our main revenue driver for this year, 2022, and offers users essential and lifestyle consumption vouchers, such as eWallet Reload, PetroCard, Shopping Voucher, and extra. The eVoucher offering has been one of the company's key strategies to acquire and active users. With our wide range product, Sirius, ZCT is now aiming to diversify user consumption to other higher-margin revenue streams. By introducing Z-Membership, ZCT is generating better cash flow and close profit by providing members with exclusive rewards for future repeat in-app consumption. And our Z-Store is Malaysia's first platform providing a group buy function to our users. By gathering bundle orders, Zev City is able to offer a better price to our users, with anticipated higher sales volume in the future. We expect to grow this revenue stream through 2023. Next, bill payment. I believe most of us pay our utility bills online every month. Today, with Jack City, you can pay bills at your fingertips and enjoy an instant rebate. We are confident that this feature is able to enhance retention of our users by continuously using Jack City. And importantly, we earn commissions with every transaction made. As previously discussed, our next revenue stream will be TASTE, an end-to-end solution to fully digitalize the whole F&B management system. An additional revenue stream covers FIAC commission, advertisement income, and others. Turning to our business highlight, on August 10, 2022, we successfully priced our IPO and the next morning began to track on the NASDAQ capital market under the symbol TGL. we generate gross proceeds of $9.2 million through the offering, which includes the full exercise of the underwriter over allotment options. This was a key milestone for TGI to provide us with important capital to support our growth. Speaking of growth, In terms of registered users, we surpassed more than 2.3 million registered users in November 2022, a tremendous milestone to achieve in just over two years. In terms of both active users and paid users, we continue to witness enhanced rates of conversion of registered users. With conversion rate of 14% and 9% respectively, we feel this indicates a positive market reaction as users become more familiar with our brand, and more importantly, the quality of Zaxity users has improved, where we see paid users increasing their transaction frequency in our Zaxity app. The proportion of users transacting three times or more has increased from 4.6% to 13.6%, which is equivalent to a 3-4% increase. Now, I will pass the call on to Jaywin, who will review our financial results in greater detail.
spk02: Thank you, Sam. And good morning, everyone. Today, I will review our financial results for the fiscal year ended June 30, 2022, compared to the same periods in 2021. Total revenue for the fiscal year ended June 30, 2022 was $79.7 million, up 468% from $14 million for the fiscal year 2021. This is primarily due to our six key ZCT revenue streams consisting of both consumer-facing and merchant-facing revenue that Sam highlighted earlier. As Sam mentioned, ZCity has over 2.3 million registered users, 234,000 monthly active users as of November 2022. We have experienced significant growth in users and consistent growth in revenue from users over the past 12 months. Quarterly active user for the quarter ended June 30, 2022 were up by 28%, while pay user were up by 39%. A total of 3.9 million transactions by our registered user were transacted over the year to June 30, 2022. Gross profit for the fiscal year 2022 were $480,000 up from $140,000 as of June 30th, 2021. We are focused on increasing our gross profit through fiscal year 2023 by increasing the user engagement through our new product and services development such as TAFE to generate higher profit and margin. Our net loss was approximately $11.7 million for the fiscal year 2022 compared to $7.9 million for the fiscal year 2021. As of June 30, 2022, our cash balance was approximately $1.8 million compared to cash balance of approximately $2.8 million as of June 30, 2021. Subsequent to the end of our fourth fiscal quarter, we completed an initial public offering of 2.3 million shares of common stock at public offering price of $4 per share. The total net proceeds from this offering, including the full exercise of the underwriter over-allotment option, was approximately $8.2 million after deducting the underwriting discount, commission, and other offering expenses. Upon the completion of IPO, TGI completed a full conversion of convertible note payables net of unamortized discount to equity of the loan facility. This allowed TGI to strengthen its balance sheet. Now, I will pass the call back to Sam to discuss our strategy growth plan.
spk01: Thanks, Jerry. TGI is very proud of the progress we have made so far in growing as an innovative e-commerce company. This has shown in our revenue growth achieved over the last year, even despite COVID restrictions, but we are focused on growing our gross profit through fiscal 2023. We are looking to the future and the next stage of delivering on our growth plan of expanding further into Southeast Asia region and Japan. we will continue to increase the number of product lines and services to enhance user engagement and stickiness. In order to generate higher margin and to reach a wider market, we continue to improve and enhance our platform services and functionality by introducing more features and offering to increase translation frequency like taste. We plan to form strategy partnership with more top-tier brands and enhance the existing offer by acquiring new technologies if they fit strategically with our platform. We also want to expand our IT team to continue development of our app and user experience in order to build more sophisticated digital technology and maintain our competitive edge. This is a very exciting time for Treasure Global as we execute upon our strategy paradigm as a public company. And we are grateful for the interest from all who have joined us today. With a strong balance sheet, Year-on-year growth momentum, a large total addressable market, and a robust regional expansion strategy. TGI is well-placed for future growth. This concludes our prepared remarks, and now I would like to open the call for questions. Operator, please go ahead.
spk03: Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press stop 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Ladies and gentlemen, This concludes our question and answer session. I'll turn the floor back to Mr. Teo for any final comments.
spk01: Okay, thanks. I would like to thank everyone again for joining us on today's call. We are grateful to our investors for their ongoing support and interest in TGI. We look forward to having follow-up conversations with many of you and to updating you on our progress. Thank you and have a great day.
spk03: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.
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