Exhibit 99.1
YY Group Holding Limited
(Incorporation in British Virgin Islands)
Unaudited First Half 2024 Financial Results
Revenue
We generate revenue primarily from (i) cleaning services, and (ii) manpower outsourcing services. Cleaning services include professional cleaning and janitorial services provided to our customers. Manpower outsourcing services consist of sourcing of casual labor to meet our customers’ needs mainly via the YY App. Our total revenues increased by $5,600,445 or approximately 41.0%, from $13,659,047 for the six months ended June 30, 2023, to $19,259,492 for the six months ended June 30, 2024.
The following table sets forth our revenue by service categories for the periods indicated.
| For the six months ended June 30, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| USD | % of revenue | USD | % of revenue | |||||||||||||
| Cleaning | 11,372,886 | 59.1 | % | 8,382,570 | 61.4 | % | ||||||||||
| Manpower outsourcing | 7,886,606 | 40.9 | % | 5,276,477 | 38.6 | % | ||||||||||
| Total revenue | 19,259,492 | 100.0 | % | 13,659,047 | 100.0 | % | ||||||||||
During the six months ended June 30, 2024 and 2023, cleaning services accounted for approximately 59.1% and 61.4% of the total revenue, respectively, while manpower outsourcing services accounted for approximately 40.9% and 38.6% of the total revenue, respectively. Total revenue increased by 41.0%, from $13,659,047 for the six months ended June 30, 2023, to $19,259,492 for the six months ended June 30, 2024, due to an approximately 35.7% increase in cleaning services from $8,382,570 for the six months ended June 30, 2023, to $11,372,886 for the six months ended June 30, 2024, and an approximately 49.5% increase in manpower outsourcing services from $5,276,477 for the six months ended June 30, 2023 to $7,886,606 for the six months ended June 30, 2024. Total revenue for the six months ended June 30, 2024 reflects a negative currency translation impact of $169,751. Revenue from cleaning services increased by approximately 35.7% due to higher demand by our customers in the hospitality and public sectors after the COVID-19 pandemic. Revenue from manpower outsourcing services increased significantly by approximately 49.5%, primarily due to the increase in demand of manpower service in both Singapore and Malaysia market. Revenue increased by $2,610,129 for the six months ended June 30, 2024 compared with that of six months ended June 30, 2023, due to an approximately 43.1% increase in the Singapore market and 56.9% increase in the Malaysia market.
Cost of revenue
The cost of revenue primarily consists of cleaning material cost, repair and maintenance cost, labor cost and logistics costs. Cleaning material, repair and maintenance of cleaning machinery, labor and logistics costs are directly associated with our provision of cleaning services, while labor cost is mainly associated with our provision of manpower outsourcing services. The total cost of revenue increased by $5,013,505, or approximately 42.2%, from $11,868,313 for the six months ended June 30, 2023, to $16,881,818 for the six months ended June 30, 2024.
The following table sets forth our cost of revenue by service categories for the periods indicated.
| For the six months ended June 30, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| USD | % of revenue | USD | % of revenue | |||||||||||||
| Cleaning | (10,282,219 | ) | (53.4 | )% | (7,685,579 | ) | (56.3 | )% | ||||||||
| Manpower | (6,599,599 | ) | (34.3 | )% | (4,182,734 | ) | (30.6 | )% | ||||||||
| Total cost of revenue | (16,881,818 | ) | (87.7 | )% | (11,868,313 | ) | (86.9 | )% | ||||||||
The approximately 42.2% overall increase in cost of revenue is primarily driven by an increase in manpower cost incurred in both cleaning services and manpower outsourcing services, primarily due to an increase in customers demand and orders fulfilled as a result of expansion of business. This was consistent with the increase of revenue during the year. On the other hand, the percentage increase in our total cost of revenue was higher than the percentage increase in total revenue, which was mainly due to the increase in hourly charging rate of casual labors during the six months.
Gross profit
For the six months ended June 30, 2024 and 2023, our gross profit was $2,377,674 and $1,790,734 respectively, and our gross profit margins were approximately 12.3% and 13.1%, respectively. Our gross profit increased by $586,940, or approximately 32.8% primarily due to the increase in gross profit from both cleaning and manpower services. Our gross profit margin deteriorated by approximately 0.7% primarily due to an increase in cost of the cleaning staffs and hourly charging rate for the casual labor, where as our service charges to our customers did not increase to the same extent as the cost increase over the same period, as we balanced the decision to pass on the cost increase to our customers and the opportunity to secure contracts with our customers that were seeing strong recovery in their business due to easing of COVID-19 restrictions.
Other income
Other income primarily consisted of government grants. Other income increased by $969,886, or approximately 399.0%, from $243,050 for the six months ended June 30, 2023, to $1,212,936 for the six months ended June 30, 2024. The increase was mainly due to an increase in government grant received under progressive wage credit scheme which provides transitional wage support for employers, which was received in May 2024 and no such government grant for the six months ended June 30, 2023. It helps them adjust to upcoming mandatory wage increases for lower-wage workers and voluntarily raise wages for this group. The scheme aims to uplift low-wage workers and support businesses in their efforts to raise wages beyond the mandatory annual increments outlined by the Ministry of Manpower.
Selling and marketing expenses
Selling and marketing expenses primarily include expenses related to advertising, marketing and branding activities. Selling and marketing expenses increased by $43,148, or approximately 47.5%, from $90,829 for the six months ended June 30, 2023, to $133,977 for the six months ended June 30, 2024. The increase was primarily due to the increase in cost of advertising on social media after our initial public offering, completed on April 24, 2024.
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General and administrative expenses
General and administrative expenses consisted primarily of salary and welfare expenses, rental expenses, depreciation, professional service fees, office expenses, transportation and other administrative expenses. General and administrative expenses increased by $721,783, or approximately 38.4%, from $1,879,980 for the six months ended June 30, 2023, to $2,601,763 for the six months ended June 30, 2024, mainly due to an increase in staff expenses resulted from increased number of employees and administrative expenses to support expanded business in different regions.
Other expenses
Other expenses primarily consisted of late charges and fines, loss on disposal of property and equipment. Other expenses increased by $15,653, from $10,376 for the six months ended June 30, 2023, to $26,029 for the six months ended June 30, 2024.
Finance costs
Finance costs primarily consisted of accrued interest from guaranteed bank loans, convertible loan and hire purchase, interest expenses from lease liabilities and interest expenses on account receivables factoring. Finance costs increased by $29,105, or approximately 18.0% from $162,037 for the six months ended June 30, 2023, to $191,142 for the six months ended June 30, 2024. The increase was primarily due to the Company signed a new office lease agreement for the following 5 years, whose rental was much higher than the previous office, leading to an increase of interest expense from lease liability.
Profit for the first half of 2024
As a result of the foregoing, we had a profit of $601,986 for the six months ended June 30, 2024, an increase of $738,505, or approximately 541.0%, from a loss of $136,519 for the six months ended June 30, 2023.
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 with 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 raises and the hiring of additional staff. The Company also expanded its marketing expenditures to maintain the market share. Following the IPO, the Company has reduced its use of AR factoring which is typically used to hedge the cash flow associated with account receivable. The reduction has resulted in an increase in accounts receivable. Concurrently, the Company engaged more subcontractors to support its business expansion, resulting in shorter payment terms. Additionally, the company made prepayments for IT enhancement costs and consultation fees which contributed to the overall increase in operating outflows during this period.
ABOUT US
At YY Group Holding, we are driven by a vision to shape futures and revolutionize industries. Our journey began with a mission to bridge the gap between talent and opportunity. Over the years, we have transformed into a premier talent acquisition and technology solutions conglomerate, operating across Singapore, Malaysia, and Thailand. Today, we stand as pioneers, serving job seekers, employers, and businesses with cutting-edge solutions that redefine how we connect and thrive.
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YY GROUP HOLDING LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2024 AND DECEMBER 31, 2023
| As of | ||||||||
June 30, 2024 (Unaudited) | December 31, 2023 | |||||||
| USD | USD | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | 1,078,169 | 467,235 | ||||||
| Trade receivables | 7,659,452 | 7,037,942 | ||||||
| Prepayment and other current assets | 2,884,052 | 2,667,166 | ||||||
| Amount due from related parties | 52,995 | 31,298 | ||||||
| Total Current Assets | 11,674,668 | 10,203,641 | ||||||
| Non-current assets: | ||||||||
| Right-of-use assets | 920,383 | 78,434 | ||||||
| Property and equipment, net | 353,548 | 368,621 | ||||||
| Prepayment, non-current | 54,060 | 18,656 | ||||||
| Deferred tax assets | 6,597 | 738 | ||||||
| Total Non-current assets | 1,334,588 | 466,449 | ||||||
| Total Assets | 13,009,256 | 10,670,090 | ||||||
| Currents Liabilities: | ||||||||
| Trade and other payables | 2,932,139 | 2,996,636 | ||||||
| Amount due to a related party | 86,006 | 67,521 | ||||||
| Lease liabilities, current | 194,302 | 69,135 | ||||||
| Loans and borrowings, current | 2,441,714 | 2,856,491 | ||||||
| Total Current Liabilities | 5,654,161 | 5,989,783 | ||||||
| Non-current Liabilities: | ||||||||
| Loans and borrowings, non-current | 276,826 | 523,607 | ||||||
| Lease liabilities, non-current | 745,347 | 15,187 | ||||||
| Warranty liability | 29,756 | - | ||||||
| Total Non-Current Liabilities | 1,051,929 | 538,794 | ||||||
| Total Liabilities | 6,706,090 | 6,528,577 | ||||||
| Equity | ||||||||
| Share Capital* | 5,280,406 | 3,564,150 | ||||||
| Reserves | (136,673 | ) | 20,667 | |||||
| Retained earnings | 1,147,039 | 545,797 | ||||||
| Equity attributable to owners of the Company | 6,290,772 | 4,130,614 | ||||||
| Non-controlling interests | 12,394 | 10,899 | ||||||
| Total equity | 6,303,166 | 4,141,513 | ||||||
| Total liabilities and equity | 13,009,256 | 10,670,090 | ||||||
| * | The shares and per share information are presented on a retroactive basis to reflect the reorganization. |
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YY GROUP HOLDING LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
| For the six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| USD | USD | |||||||
| Revenue | 19,259,492 | 13,659,047 | ||||||
| Cost of revenue | (16,881,818 | ) | (11,868,313 | ) | ||||
| Gross profit | 2,377,674 | 1,790,734 | ||||||
| Other income | 1,212,936 | 243,050 | ||||||
| Selling and marketing expenses | (133,977 | ) | (90,829 | ) | ||||
| General and administrative | (2,601,763 | ) | (1,879,980 | ) | ||||
| Other expenses | (26,029 | ) | (10,376 | ) | ||||
| Change in fair value of warrant liability | 55,125 | - | ||||||
| Operating profit | 883,966 | 52,599 | ||||||
| Finance cost | (191,142 | ) | (162,037 | ) | ||||
| Profit/(loss) before tax | 692,824 | (109,438 | ) | |||||
| Income tax expenses | (90,838 | ) | (27,081 | ) | ||||
| Profit/(loss) for the period | 601,986 | (136,519 | ) | |||||
| Other comprehensive loss | ||||||||
| Foreign currency translation differences- foreign operations | (79,383 | ) | (36,819 | ) | ||||
| Total comprehensive income/(loss) for the period | 522,603 | (173,338 | ) | |||||
| Profit/(loss) attributable to: | ||||||||
| Equity owners of the Company | 601,242 | (141,322 | ) | |||||
| Non-controlling interests | 744 | 4,803 | ||||||
| Profit/(loss) for the period | 601,986 | (136,519 | ) | |||||
| Total comprehensive income/(loss) attributable to: | ||||||||
| Equity owners of the Company | 521,108 | (178,356 | ) | |||||
| Non-controlling interests | 1,495 | 5,018 | ||||||
| Total comprehensive income/(loss) for the period | 522,603 | (173,338 | ) | |||||
| Basic earnings/(loss) per share* | 0.016 | (0.004 | ) | |||||
| Diluted earnings/(loss) per share* | 0.016 | (0.004 | ) | |||||
| Weighted average number of shares | ||||||||
| Basic | 38,506,507 | 38,300,000 | ||||||
| Diluted | 38,506,507 | 38,300,000 | ||||||
| * | The shares and per share information are presented on a retroactive basis to reflect the reorganization. |
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