YY Group Holding Limited Announces Unaudited First Half 2024 Financial Results

SINGAPORE, Sept. 10, 2024 (GLOBE NEWSWIRE) — YY Group Holding Limited (NASDAQ: YYGH) (“YY Group”, “YYGH” or the “Company”), a provider of data-driven and technology-enabled staffing solutions for the hotel and hospitality industry as well as commercial cleaning and janitorial services, today announced its financial and operating results for the six months ended June 30, 2024, as well as recent business developments.

“We are delighted with the strong growth and operational achievements in the first half of 2024,” said Fu Xiaowei, CEO of YY Group Holding Limited. “Our successful IPO and expansion into Australia and Vietnam underscore our commitment to expanding our international presence. We look forward to delivering sustainable value to our shareholders as we continue our growth.”

Financial highlights for the first half of 2024

• Total turnover: Increase of 41.0% to $19,259,492 for the six months ended June 30, 2024, compared to $13,659,047 during the same period in 2023.
• Gross profit: Increase of 32.8% to $2,377,674, compared to $1,790,734 for the six months ended June 30, 2023.
• YY Application Indicators: Downloads and active users increased by 33.8% and 43.2%, respectively, with total downloads reaching 464,595 and active users reaching 152,650 as of June 30, 2024.
• User Engagement: The number of daily, weekly and monthly active users increased significantly by 177.2%, 158.5% and 158.5%, respectively, with daily active users reaching 4,316, weekly active users reaching 9,271 and monthly active users reaching 25,066.

YY Group’s impressive financial performance reflects its sustained growth across its platform and the success of its global expansion efforts.

Business developments

• Closing of the initial public offering (IPO)
  On April 22, 2024, YY Group Holding Limited (the “Company”) completed its initial public offering by issuing 1,125,000 Class A common shares at a public offering price of $4.00 per share, for total gross proceeds of approximately $4.5 million before deducting underwriting discounts, commissions and other offering expenses.

  On April 24, 2024, the Company also issued a warrant to the underwriter, US Tiger Securities Inc., granting it the right to purchase 56,250 shares of the Company’s Class A common stock. This warrant will expire on April 22, 2027.

• Expansion in Australia
  On 14 June 2023, YY Circle (AU) Pty Ltd (“YY Circle (AU)”) was incorporated in New South Wales, Australia as a private company limited by shares.

  On January 12, 2024, Mr. Samuel Nicolas Astbury, former director of YY Circle (AU) transferred 100% of the shares to Mr. Andrew Dvash.

  On March 1, 2024, Mr. Andrew Dvash, who is a director of YY Circle (AU), transferred 95% of the shares to the Group CEO, Mr. Fu Xiaowei.

  On May 1, 2024, Mr. Fu Xiaowei transferred all shares to the Company. YY Circle (AU) became a majority-owned subsidiary, with the remaining 5% of the Company held by Andrew Dvash.

• Expansion in Vietnam
  On February 6, 2024, YY Circle (Vietnam) Company Limited (“YY Circle (VN)”) was incorporated in Vietnam as a limited liability company with multiple members by shares. YY Circle (VN) commenced operations on February 6, 2024 and is mainly engaged in providing labor outsourcing services to our clients through the YY App. YY Circle (VN) is majority-owned by our subsidiary YY Circle (SG), with the remaining 5% of the company held by Tran Hai Lan, who is a director of YY Circle (VN).

Balance Sheets and Cash Flows

As of June 30, 2024, the Company had $1,078,169 in cash. Net cash used in operating activities for the six months ended June 30, 2024 was $2,649,324 compared to net cash provided by operating activities of $303,146 for the six months ended June 30, 2023. The movement of $2,952,470 in operating activities was primarily attributable to several key factors. First, there was an increase in operating expenses, driven by higher salaries and wages resulting from annual increases and the hiring of additional staff. The Company also increased its marketing expenses to maintain its market share. Following the IPO, the Company reduced its use of AR factoring which is typically used to hedge cash flows associated with accounts receivable. This reduction resulted in an increase in accounts receivable. At the same time, the Company hired more subcontractors to support its business expansion, resulting in shorter payment terms. In addition, the Company made advance payments for IT enhancement costs and consulting fees, which contributed to the overall increase in operating cash flows during this period.

About Us

At YY Group Holding, we are driven by a vision to shape the future and revolutionize industries. Our journey began with a mission to bridge the gap between talent and opportunity. Over the years, we have grown into a leading talent acquisition and technology solutions conglomerate, operating in Singapore, Malaysia, and Thailand. Today, we are pioneers, serving job seekers, employers, and businesses with cutting-edge solutions that redefine the way we connect and thrive.

Caution Regarding Forward-Looking Statements:
This press release contains forward-looking statements that are subject to various risks and uncertainties. These statements include statements regarding the Company’s ability to develop its business and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “targets,” “believes,” “hopes,” “potential” or similar words. Actual results may differ materially from those described in these forward-looking statements due to a number of factors, including, without limitation, the Company’s ability to operate profitably, customer acceptance of new products, the effects of the spread of the coronavirus (COVID-19) and future actions by authorities in countries where the Company has supply chain partners, demand for the Company’s products and the economic condition of the Company’s customers, the impact of competitive products and pricing, successful management and general economic conditions and other risk factors detailed in the Company’s filings with the U.S. Securities and Exchange Commission (SEC). The forward-looking statements contained in this press release are made as of the date of this press release and the Company assumes no obligation to update any forward-looking statements contained in this press release, except in accordance with applicable law.

Investor Relations Contact

Phua Zhi Yong
Financial Director
YY Holding Group
[email protected]