Mon, Sep 30, 8:33 PM (81 days ago)
Treasure Global Inc. (TGL) reported a significant decline in financial performance for the fiscal year ended June 30, 2024, with total revenues dropping by 68.2% to approximately $22.1 million, primarily due to a 68.9% decrease in product and loyalty program revenue. The company incurred a net loss of approximately $6.6 million, compared to a loss of $11.7 million in the previous year, reflecting improved gross profit margins from 0.8% to 3.7%. Operating expenses also decreased by 36% to $6.9 million, driven by reduced marketing expenditures. Despite recent capital raises, including a $3.6 million public offering, TGL faces substantial liquidity concerns, with cash reserves dropping to $200,013 and an accumulated deficit of $38 million. The company has expressed doubt about its ability to continue as a going concern, necessitating potential equity financing and support from related parties. Key risk factors include a highly competitive e-commerce environment, reliance on third-party services, and regulatory compliance challenges. The company plans to focus on enhancing its ZCITY app and expanding its user base while navigating these risks.