Treasure Global Inc Expands into FMCG & E-Commerce with 51% Stake in Tien Ming Distribution, Unlocking USD116 Million in Revenue Potential
Rhea-AI Summary
Treasure Global Inc (NASDAQ: TGL) has acquired a 51% controlling stake in Tien Ming Distribution through its subsidiary VWXYZ Venture, marking a strategic expansion into Malaysia's FMCG and e-commerce markets. The acquisition leverages Tien Ming's exclusive fulfillment partnership with F&N, targeting 10% of F&N's USD1.16 billion annual sales.
The company projects USD116 million in revenue over the next three years through the distribution of leading household brands including 100PLUS, F&N SEASONS, and Magnolia. The expansion taps into Malaysia's FMCG market, which is expected to reach USD159 billion by 2033 with a CAGR of 3.66% from 2025 to 2033.
The initial investment is RM500,000 (USD110,000), with plans for additional investments up to RM3,000,000 (USD660,000) based on performance. Treasure Global has secured majority board control to ensure strategic alignment and growth execution.
Positive
- Projected USD116 million revenue over three years
- Secured 51% controlling stake in Tien Ming Distribution
- Access to F&N's USD1.16 billion annual sales network
- Expansion into Malaysia's growing FMCG market (CAGR 7.95% 2023-2027)
- Low initial investment of USD110,000 for majority control
Negative
- Additional investment of up to USD660,000 required
- Revenue projections dependent on capturing 10% of F&N's sales
News Market Reaction – TGL
On the day this news was published, TGL declined 17.71%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Strategic Expansion into Malaysia’s USD159 Billion FMCG Industry & High-growth E-commerce Market.
Projected USD116 Million Revenue Over Three Years Through Integration with F&N’s USD1.16 Billion Annual Sales.
Strengthening Treasure Global’s Logistics and Digital Commerce Capabilities Through Tien Ming Distribution.
NEW YORK and KUALA LUMPUR, Malaysia, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Treasure Global Inc. (NASDAQ: TGL) (“Treasure Global” or the “Company”), a technology-driven digital commerce and fintech solution provider, today announced the strategic acquisition of a
The acquisition positions Treasure Global to capture
Expanding into Malaysia’s High-Growth FMCG & E-commerce Markets
According to Statista, Malaysia’s FMCG market is projected to grow at a compound annual growth rate (CAGR) of
This acquisition presents significant growth opportunities for Treasure Global and its investors by expanding revenue streams through integration into Malaysia’s largest F&B supply chains. By strengthening the company’s logistics, fulfillment, and digital commerce capabilities, Treasure Global can enhance operational efficiency and improve service delivery. This, in turn, reinforces its competitive edge in the market and supports its long-term growth strategy. Furthermore, the acquisition positions Treasure Global for regional scalability across Southeast Asia, leveraging its expanded infrastructure and expertise to drive sustained expansion and maximize shareholder value.
Unlocking USD116 Million in Revenue Growth Potential
Treasure Global anticipates generating USD116 million in revenue over the next three years by strategically leveraging its direct participation in Fraser & Neave Holdings Bhd (F&N)’s USD1.16 billion annual sales, capturing
Operational Synergies and Competitive Advantages
- Fulfillment & Logistics Excellence: Tien Ming Distribution provides warehousing, fulfilment, and delivery service for F&N Life, ensuring efficient nationwide distribution.
- Scalability Across Digital & Physical Channels: Treasure Global integrates proprietary e-commerce technology with Tien Ming’s logistics infrastructure to enhance efficiency and customer experience.
- Majority Board Control: Treasure Global has secured a majority of board seats, ensuring strategic alignment and growth execution.
- Investment Structure: With an initial investment of RM500,000 (approximately USD110,000), Treasure Global plans for additional investments of up to RM3,000,000 (approximately USD660,000) or more, subject to future performance and strategic needs
“This acquisition marks a pivotal moment in Treasure Global’s growth strategy, integrating us into Malaysia’s booming FMCG and e-commerce industries. By combining Tien Ming Distribution’s proven logistics network and its partnership with F&N with our digital commerce expertise, we are positioned to scale operations significantly. Our projected USD116 million revenue opportunity highlights the long-term financial impact of this strategic move, creating substantial value for Treasure Global and our investors,” said Carlson Thow, CEO of Treasure Global Inc.
About Tien Ming Distribution Sdn Bhd:
Tien Ming Distribution specializes in logistics and e-commerce, serving as the strategic fulfillment partner for F&N Life, enabling efficient distribution of F&N’s products across Malaysia. The company also operates TM Grocer, an innovative online grocery platform that caters to Malaysian consumers with a focus on convenience, reliability, and diverse product offerings. Together, these capabilities position Tien Ming Distribution as a key player in Malaysia’s growing e-commerce and FMCG sectors.
About Fraser & Neave Holdings Bhd:
F&N is a market leader in Malaysia's fast-moving consumer goods (FMCG) sector, with a heritage spanning more than a century. Its diverse product portfolio includes iconic brands such as 100PLUS, F&N SEASONS, and Magnolia. F&N reported RM5.25 billion (approximately USD1.16 billion) in revenues for fiscal 2024, underscoring its leadership in Malaysia’s FMCG industry.
About Treasure Global:
Treasure Global is a leading Malaysian solutions provider, specializing in the development of innovative technology platforms that drive digital transformation. Its flagship product, the ZCITY Super App, integrates e-payment solutions with customer rewards, fostering a seamless digital ecosystem. As of November 2024, ZCITY Super App has attracted over 2.9 million registered users, positioning Treasure Global as a key player in Malaysia’s digital economy.
Visit treasureglobal.co for more information.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect the Company’s current expectations, assumptions, and projections about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements typically include terminology such as “anticipates,” “believes,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” or similar expressions.
Factors that could cause actual results to differ materially include, without limitation, the Company’s ability to expand its e-commerce platform, customer acceptance of new products and services, changes in economic conditions affecting its operations, the impact of global health crises, supply chain disruptions, competition, and regulatory risks related to data privacy and security. These risks, along with other factors, are discussed in more detail in the Company’s filings with the U.S. Securities and Exchange Commission.
The forward-looking statements in this press release speak only as of the date hereof. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
FAQ
What is the projected revenue for TGL from the Tien Ming Distribution acquisition?
How much did TGL invest to acquire 51% of Tien Ming Distribution?
What percentage of F&N's sales is TGL targeting through this acquisition?
What is the growth projection for Malaysia's FMCG market where TGL is expanding?
Which major brands will TGL distribute through the Tien Ming acquisition?
