YY Group Reports Full-Year 2023 Financial Results

Revenue totaled $31.8 million, a 59% increase year-over-year

Gross Profit was $3.7 million, a 42% increase year-over-year

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 59% and 42% year-over-year, respectively,” said Mike Fu, Founder and Chief Executive Officer of YY Group. “With our recent IPO on the Nasdaq and expansion into new countries, we continue to successfully execute our strategic plan, to grow the Company and create value for our shareholders.”

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, a 59% increase from $20.0 million, year-over-year
• Cost of Revenue totaled $28.1 million, a 61% increase from $17.5 million, year-over-year
• Gross Profit totaled $3.7 million, a 42% 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 $11.8 million or approximately 59%, from $20.0 million for the year ended December 31, 2022, to $31.8 million for the year ended December 31, 2023. Total revenues increased due to an approximately 41% increase in cleaning services and an approximately 94% increase in manpower outsourcing services.

Gross profit increased by $1.1 million, from $2.6 million to $3.7 million or approximately 42% primarily due to the increase in gross profit from both cleaning and manpower services.

For the year ended December 31, 2023, we generated operating profit and net profit of $1.4 million and $864,000, respectively.

The total cost of revenue increased by $10.6 million or 61%, from $17.5 million for the year ended December 31, 2022, to $28.1 million for the year ended December 31, 2023. The approximately 61% 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 hourly charging rate of casual labors, increase in customers demand and orders fulfilled as a result of expansion of business.

General and administrative expenses increased by $937,200, or approximately 31%, from $2.9 million for the year ended December 31, 2022, to $3.8 million for the year ended December 31, 2023, mainly due to an increase in staff expenses resulted from increased number of employees and administrative expenses to support expanded business.

As of December 31, 2023, the Company had cash balances of $467,235, current assets of $10.2 million and current liabilities of $6.0 million, which resulted in a positive working capital of $4.2 million.

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
[e-mail]

U.S. Investor Contact
Jack Perkins
KCSA Strategic Communications
[e-mail]

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