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spk02: Everyone, and welcome to Treasure Global Inc.' 's third quarter fiscal year 2024 earnings call. At this time, participants are on 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 call over to Sue Shaw. Chief Marketing Officer of Treasure Global Inc. for introduction and the reading of the Safe Harbor Statement.
spk03: Please go ahead. Ladies and gentlemen, please do remain online. The conference is due to resume shortly. Thank you.
spk02: Good day, everyone, and welcome to Treasure Global Inc.' 's third quarter fiscal year 2024 earnings call. At this time, participants are in a listen-only mode. 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 call over to Sue Schwa, Chief Marketing Officer of Treasure Global Inc., for introductions and the reading of the Safe Harbor Statement. Please go ahead.
spk01: Thank you, operator. Good morning, everyone, and welcome to Treasure Global's Third Quarter Fiscal Year 2024 Resort Conference Call. With us today, we have our Chief Executive Officer, Sam Teo. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from Treasure Bottles Management made within the meaning of Section 27A of the Security Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events. Works such as May should project, expect, intend, plan, believe, anticipate, hope, 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 sections of the company's Form 10-K for the year ended June 30, 2023 and subsequent following file with the SEC. Copies of this document is 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 Chiu, CEO of TJL. Sam, you may now begin.
spk00: Thanks, Sue. And good morning and thank you everyone for joining us today on our third quarter of fiscal 2024 earnings conference call. Covering the period ended March 31, 2024. I will start with the highlight of our third quarter business performance followed by our financial results. At Treasure Global, we maintain a positive outlook and grow steadily in this ever-changing macro environment. We are proud to say that we have developed a strategy that works in all conditions, allowing us to grow regardless of the situation. Our focus remains on delivering value to our customers and consumers, which ultimately enables us to drive sustainable growth for all our shareholders. Before I begin, I'm happy to announce the achievement of the new ZECITY Premium Store, which we've discussed last quarter. This addition has not only broadened our product portfolio but has also significantly boosted our gross profit margin. This growth perfectly aligns with our strategy vision and path forward. In this quarter, we have successfully filed an S3 and initiated an ATM offering, securing an aggregate offering price of up to US$2.99 million. This strategy financing effort has provided us with the necessary capital while maintaining flexibility and alignment with our growth strategy. The fund will be put toward driving forward our business initiative, fostering innovation, and ultimately creating more value for our shareholders. We will dive deeper into our AI initiative, market expansion efforts, and key achievements shortly. Additionally, we are pleased to further solidify our competitive advantage in the blockchain market and opening up new avenues for revenue expansion and portfolio growth. Our recent partnership as the exclusive provider of an AI blockchain wallet on Telegram places us at the forefront of innovation in the blockchain sector. This strategy decision not only expand our portfolio, but also reinforce our competitive edge by securing the first right of refusal. Furthermore, it's unlocked promising new business opportunity within the blockchain market. Let's now proceed to explore the highlight of our third quarter. In the third quarter of 2024, Thracia Global remained laser-focused on innovation, utilizing artificial intelligence to enhance product and foster better customer connection. Our AI initiative empowered us to anticipate customer needs, strengthen market share, and identify lucrative opportunities in high-profit sectors. Expanding on this AI enhancement success, we ventured into meta-platforms for our live shopping event. Utilizing AI power robot equipped with advanced language capability, we hosted events in multiple languages, breaking down language barriers and engaging thousands of viewers. With Malaysia e-commerce market projected to reach US$20.93 billion by 2029 and Meta platform boosting millions of active users, our presence of Meta represents a significant opportunity. The move to MetaLife opened up West Market with unparalleled reach and engagement potential. With its extensive user base and robust infrastructure, Meta Platform provides an ideal platform to showcase our product and engage with a global audience. By leveraging MetaLife, we aim to not only drive sales, but also enhance brand visibility and customer engagement on a scale previously unseen. Special global and AIO synergy have joined forces to revolutionize the AI landscape, capitalizing on the booming digital economy of Southeast Asia, with the Southeast Asia AI market expected to grow significantly at an anticipated annual rate of 17.83% by 2030. Our collaboration is strategically positioned for success. Our strategy alliance highlights our commitment to delivering innovative AI solutions and establish a state-of-the-art data center dedicated to AI application, catering to the evolving needs of businesses across various industries. By leveraging our creative expertise and resources, we aim to drive transformative changes in the Southeast Asian AI landscape, positioning ourselves as a key player in this dynamic market. We have taken a significant step forward by announcing a strategic partnership become the exclusive partner for an AI blockchain wallet on Telegram. These move forward further strengthen our competitive edge in the blockchain industry. Securing Treasure Global position as the leader in innovation with the global crypto wallet market projected to grow significantly. This collaboration position us for significant expansion. Treasure Global, strong focus on innovation and partnership put us ahead in the world of the new technology. We are dedicated to exploring and creating more advanced AI to grow our business. Another exciting development is our recent milestone, which we have secured a US dollar 2 million marketing contract with Satria Dunia Sundariyambahat. The objective is to showcase premium Korean beauty product using Jack City Advanced AI marketing engine. This strategy partnership marked a significant achievement for us as we expand ZCT's influence and capability in the beauty sector. By utilizing ZCT's state-of-the-art AI technology, we are well positioned to increase brand exposure and boost sales, thereby creating a new revenue stream for the company. Moving on, we have got more exciting news about ZCT. We are talking with the Shanghai Guangxi Chamber of Commerce about running the Malaysia Pavilion. This is a big deal because it is a chance to sell great Malaysian products on huge platforms like Taobao and Douyin. With China's live shopping market growing fast and over 1.4 billion potential customers, this is an opportunity for us. This move fits perfectly with our goal to make digital shopping better and grow in new markets. As I mentioned earlier, the launch of Just City Premium Store has surpassed the expectations since inception. Ravaging advanced AI tools, the premium store not only exceeded sales expectations but also significantly enhanced our user engagement. In just four months, the premium store has sold over 6,000 bills several bonanza packs. This notable self-achievement highlights the platform's effectiveness in driving transactions and enhancing gross profit streams. Zaxity has gained valuable insight into users' spending habits and preferences. enabling the premium store to offer highly personalized packages tailored to individual user needs and preferences. As a result, the premium store has significantly contributed to our gross profit growth, reflecting each strategy important in driving business expansion and profitability for Thresher Global. In addition to the success of the Zaxity Premium Store, we also made strides in the gaming sector by launching 10 exciting minigames integrated with our AI game creator in Zaxity 3D World. These minigames not only enhance the gaming experience for users, but also position us to access the rapidly growing global gaming market, which is projected to reach a revenue of US$312 billion by 2026. Through in-game purchaser, virtual goods, and AI-driven marketing strategy, Jazz City 3D World is poised to become a dynamic digital marketplace, capturing a significant share of the booming global gaming industry. And we are proud to share our significant achievement in this quarter. The notable win at the Marketing Interactive Asia E-Commerce Award 2023, where Jazz City has been honored to have won the Silver Trophy for Best eCommerce Solution. This recognition highlights our excellence in the fast-changing landscape of online shopping. This achievement demonstrates our firm commitment to innovation and delivering top-notch solutions that cater to the ever-changing needs of our online customers. This quarter, we showcased our dedication to staying ahead of the curve, expanding our reach and putting our customers first. Moving forward, we are dedicated to driving growth, sizing opportunities, and delivering value to our shareholders. Next, I will now share our financial results for the third quarter of fiscal year 2024. For the third quarter, our gross profit reached US$217,000, marking a substantial increase of 47% compared to the same period last year. This notable improvement is primarily attributable to our ongoing initiative and an optimizing spending and capitalizing on higher profit margin stream. While our total revenue for quarter was USD 1.6 million, compared to USD 6.7 million for the second quarter of fiscal 2024, reflecting a decrease of approximately 76%. It is important to view this figure in the context of our strategy shift toward higher-margin business channel and long-term value creation. We are pleased to announce a substantial decrease in our net losses, approximately US$1.7 million compared to approximately US$2.9 million in the third quarter of fiscal year 2023. This strategy positive shift was primarily driven by our focus on optimizing cost management, including reduction in selling and administrative expenses. Our disciplined approach to cost management and operational efficiency has enabled us to achieve significant improvement in our bottom line compared to the previous year, despite the challenging market conditions. As of March 31, 2024, our cash balance was approximately US$0.3 million compared to a cash balance of approximately US$4.1 million as of March 31, 2023. This position is expected to strengthen following future sales of ATM shares. Zaxity had over 2.69 million registered users and over 2,027 registered merchants as of March 31, 2024. Quarterly active users for the quarter ending March 31, 2024 were 41,455. A total of 0.19 million transactions were transacted by our registered users in the quarter ended March 31, 2024. Despite the decline in quarterly active users and paid users compared to the previous quarter, we remain confident in the long-term growth potential of Zaxity. especially as we continue to enhance its features and offering to meet the evolving needs of our users and merchants. In summary, our financial results for the third quarter demonstrate significant improvement in gross profit, reduction in net losses, and strengthened financial position despite the decrease in overall revenue. We remain committed to executing our strategy initiative and delivering value to our shareholders in the quarter ahead. We are also happy to say that we are back in good standing with Nasdaq. This achievement reflects our commitment to upholding the highest standard of corporate governance and transparency. By meeting Nasdaq's maintenance requirements for listing, we demonstrate our dedication to operating in accordance with regulatory standards. This forces us to manage and grow our business more productively, and we also encourage investors interest, improving the market ability of our common stock to an even broader range of investors. Looking forward, I have a positive outlook on the development showcase in our Q3 fiscal year 2024 highlight. Our unvarying focus on innovation and market expansion has led to significant progress. In recent months, We have strategically taken intentional steps to reallocate resources away from lower-margin offerings like our eVoucher product, despite the anticipated short-term impact on results. We recognize this move as essential for long-term gain. This strategy move is aimed to enhance our working capital and reorienting our strategy branding toward reducing dependency on such offerings. By doing so, we can channel our resources into the development of high-margin solutions, empowering us to capture higher margins and drive sustained growth. As we navigate through Physical 2024, our focus remains squarely on innovation and the development of products and services that promise more profitable growth. With an unwavering dedication to excellence and a keen eye on emerging trends, we are well-positioned to capitalize on the diverse opportunity that lies ahead. Thank you again to everyone for joining us on today's call and for your continuous support. This concludes our prepared remarks. I will now ask the operator to close the line.
spk03: Thank you and have a great day. Thank you for joining today. I will now close the lines.
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