YY Group Reports Full-Year 2023 Financial Results
Rhea-AI Summary
YY Group (NASDAQ: YYGH) announced its full-year 2023 financial results, showcasing significant growth. Revenue reached $31.8 million, a 59% increase year-over-year, while gross profit rose to $3.7 million, up 42%. Key drivers include a 41% growth in cleaning services and a 94% surge in manpower outsourcing services. The company recorded an operating profit of $1.4 million and a net profit of $864,000. Costs escalated by $10.6 million due to higher manpower expenses. General and administrative expenses also grew by 31% to $3.8 million. YY Group completed its IPO, raising approximately $4.5 million, and expanded into Australia, Vietnam, and Cambodia. As of December 31, 2023, cash balances stood at $467,235, with a positive working capital of $4.2 million.
Positive
- Revenue increased by 59% to $31.8 million year-over-year.
- Gross profit rose by 42% to $3.7 million.
- Successfully completed IPO, raising approximately $4.5 million.
- Expanded into new markets: Australia, Vietnam, and Cambodia.
- Operating profit reached $1.4 million.
- Net profit amounted to $864,000.
- Cash balances were $467,235 with positive working capital of $4.2 million.
Negative
- Cost of revenue increased by 61%, totaling $28.1 million.
- General and administrative expenses rose by 31% to $3.8 million.
- Manpower costs significantly higher, contributing to increased overall costs.
News Market Reaction – YYGH
On the day this news was published, YYGH declined 15.96%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Revenue totaled
Gross Profit was
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
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 , a59% increase from$20.0 million , year-over-year - Cost of Revenue totaled
$28.1 million , a61% increase from$17.5 million , year-over-year - Gross Profit totaled
$3.7 million , a42% 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
Gross profit increased by
For the year ended December 31, 2023, we generated operating profit and net profit of
The total cost of revenue increased by
General and administrative expenses increased by
As of December 31, 2023, the Company had cash balances of
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 | ||||||||
| Note | 2023 | 2022 | ||||||
| (As revised2) | ||||||||
| USD | USD | |||||||
| Revenue | 14 | 31,772,286 | 20,022,529 | |||||
| Cost of revenue | 15 | (28,120,506 | ) | (17,450,131 | ) | |||
| Gross profit | 3,651,780 | 2,572,398 | ||||||
| Other income | 15 | 1,830,899 | 1,952,420 | |||||
| Selling and marketing expenses | 15 | (191,582 | ) | (325,678 | ) | |||
| General and administrative expenses | 15 | (3,846,367 | ) | (2,909,167 | ) | |||
| Other expenses | (27,781 | ) | (57,113 | ) | ||||
| Operating profit | 1,416,949 | 1,232,860 | ||||||
| Finance cost | 16 | (328,610 | ) | (329,370 | ) | |||
| Profit before tax | 1,088,339 | 903,490 | ||||||
| Income tax (expenses) benefit | 17 | (224,302 | ) | (142,150 | ) | |||
| Profit for the year | 864,037 | 761,340 | ||||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation differences - foreign operations | 7,301 | 26,931 | ||||||
| Total comprehensive income for the year | 871,338 | 788,271 | ||||||
| Profit (loss) attributable to: | ||||||||
| Equity owners of the Company | 852,334 | 761,628 | ||||||
| Non-controlling interests | 11,703 | (288 | ) | |||||
| Profit for the year | 864,037 | 761,340 | ||||||
| Total comprehensive income (loss) attributable to: | ||||||||
| Equity owners of the Company | 859,763 | 788,947 | ||||||
| Non-controlling interests | 11,575 | (676 | ) | |||||
| Total comprehensive income for the year | 871,338 | 788,271 | ||||||
| Basic earnings per share* | 13 | 0.02 | 0.02 | |||||
| Diluted earnings per share* | 13 | 0.02 | 0.02 | |||||
| YY GROUP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AS OF DECEMBER 31 2023 | ||||||
| 2023 | 2022 | |||||
| (As revised2) | ||||||
| USD | USD | |||||
| Operating activities | ||||||
| Profit for the year | 864,037 | 761,340 | ||||
| Adjustments for: | ||||||
| Depreciation of property and equipment (Note 9) | 122,695 | 213,206 | ||||
| Depreciation of right-of-use assets (Note 8) | 165,862 | 127,352 | ||||
| Finance Cost (Note 16) | 328,610 | 329,370 | ||||
| Loss on disposal of property and equipment | - | 48,395 | ||||
| Gain on lease termination | (860 | ) | - | |||
| Income tax expenses (benefit) (Note 17) | 224,302 | 142,150 | ||||
| 1,704,646 | 1,621,813 | |||||
| Changes in operating assets and liabilities: | ||||||
| Trade receivables | (1,636,577 | ) | (192,652 | ) | ||
| Trade and other payables | 879,705 | (89,769 | ) | |||
| Amount due to related parties | (285,927 | ) | (22,083 | ) | ||
| Prepayment and other assets | (182,850 | ) | (121,436 | ) | ||
| Cash provided by operations | 478,997 | 1,195,873 | ||||
| Interest paid | (308,651 | ) | (225,193 | ) | ||
| Income tax paid | (118,638 | ) | (75,736 | ) | ||
| Income tax refund | - | 40,329 | ||||
| Net cash provided by operating activities | 51,708 | 935,273 | ||||
| Investing activities | ||||||
| Purchase of property and equipment (Note 9) | (224,185 | ) | (112,113 | ) | ||
| Net cash used in investing activities | (224,185 | ) | (112,113 | ) | ||
| Financing activities | ||||||
| Issuance of Class A shares | - | 212,450 | ||||
| Issuance of a convertible loan | - | 743,273 | ||||
| Proceeds from guaranteed bank loans | 931,862 | 1,603,768 | ||||
| Repayment from a shareholder’s loan | 1,852,945 | - | ||||
| Loan to a shareholder | (1,146,464 | ) | (1,035,306 | ) | ||
| Loan to a related party | - | (25,167 | ) | |||
| Payment of lease liabilities | (178,040 | ) | (133,382 | ) | ||
| Payment of listing expenses | (439,513 | ) | - | |||
| Repayment of guaranteed bank loans | (550,426 | ) | (2,091,971 | ) | ||
| Net cash provided by (used in) financing activities | 470,364 | (726,335 | ) | |||
| Effect of foreign exchange of cash | 8,326 | (1,796 | ) | |||
| Net increase in cash | 306,213 | 95,029 | ||||
| Cash balances at beginning of year | 161,022 | 65,993 | ||||
| Cash balances at end of year (Note 5) | 467,235 | 161,022 | ||||
FAQ
What were YYGH's full-year 2023 revenues?
How did YYGH's gross profit change in 2023?
What was YYGH's operating profit for 2023?
How much net profit did YYGH make in 2023?
What were the primary drivers of YYGH's revenue growth in 2023?
How much did YYGH raise from its IPO?
Which new markets did YYGH expand into in 2023?
How did YYGH's cost of revenue change in 2023?
What were YYGH's General and Administrative expenses in 2023?
What was YYGH's cash balance at the end of 2023?
