Reverse Prior-Year Nine-Month Net Loss of $5.0 Million to Modest Net ProfitKUALA LUMPUR, Malaysia, May 15, 2025 (GLOBE NEWSWIRE) -- Treasure Global Inc. (NASDAQ: TGL) (“Treasure Global” or the “Company”), a leading e-commerce platform operator, today announced its financial results for the third quarter ended March 31, 2025. Key Financial Highlights Revenue for the third quarter was $0.67 million, a 58% decrease from $1.60 million in the third quarter of fiscal 2024, but increased by 121% quarter-over-quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM_________ to________ COMMISSION FILE NUMBER 001-4147 Treasure Global Inc (Exact name of registrant as specified in its charter) Delaware 36-4965082 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 (State or o ...

Scalable Rollout Targets USD2 to 4 Million in Recurring Annual Revenue Within First YearKUALA LUMPUR, Malaysia, April 16, 2025 (GLOBE NEWSWIRE) -- Treasure Global Inc. (NASDAQ: TGL) (“Treasure Global” or the “Company”), is pleased to announce an exclusive strategic partnership with Mezzofy (Hong Kong) Limited (“Mezzofy”), a market leader in digital coupon management solutions. Under this agreement, Treasure Global becomes the sole distributor of Mezzofy’s platform in Malaysia, positioning the Company to cap ...

KUALA LUMPUR, Malaysia, April 16, 2025 (GLOBE NEWSWIRE) -- Treasure Global Inc. (NASDAQ:TGL) ("Treasure Global" or the "Company"), is pleased to announce an exclusive strategic partnership with Mezzofy (Hong Kong) Limited ("Mezzofy"), a market leader in digital coupon management solutions. Under this agreement, Treasure Global becomes the sole distributor of Mezzofy's platform in Malaysia, positioning the Company to capture approximately USD2 to 4 million in recurring annual revenue within the first 12 mont ...

Core Insights - Treasure Global Inc. (TGL) is launching a strategic initiative to develop an advanced AI cloud infrastructure in Malaysia, capable of supporting AI models with up to one trillion parameters, making it one of the most powerful AI computing environments in Southeast Asia [1][2][3] Group 1: Strategic Initiative - The initiative marks a significant milestone in TGL's expansion into enterprise-grade AI infrastructure, facilitating the development of large language models, computer vision systems, and generative AI applications [2] - The AI cloud platform's development has begun, with phased deployment planned throughout 2025 [2] Group 2: Technological Capabilities - The platform will utilize advanced GPU clusters optimized for large-scale, multi-modal AI workloads, built on DeepSeek's technology, providing high-performance computing for training trillion-parameter models [3] - The global AI infrastructure market is projected to reach USD 60.23 billion in 2025, with a compound annual growth rate (CAGR) of 26.60% from 2025 to 2034 [4] Group 3: Market Demand and Applications - Malaysia is emerging as a regional hub for digital innovation, addressing the growing demand for scalable computing infrastructure across various sectors, including finance, healthcare, education, and logistics [4][11] - TGL's AI cloud platform aims to enhance access to high-performance AI capabilities across multiple sectors [5] Group 4: Partnerships and Agreements - TGL has secured a USD 16 million service agreement with V Gallant Sdn Bhd, redirecting a significant portion of the capital commitment towards the AI cloud platform's design and deployment [5][6] - The agreement is effective through December 2025, with both parties focused on accelerating TGL's role in Southeast Asia's AI infrastructure landscape [6] Group 5: Company Vision - The CEO of TGL emphasized the commitment to building world-class infrastructure to support the shift toward AI-native enterprises, aiming to create long-term value for customers and shareholders [7] - TGL is recognized as a key player in Malaysia's digital economy, with its flagship product, the ZCITY Super App, attracting over 2.9 million registered users as of November 2024 [8]

KUALA LUMPUR, Malaysia, March 24, 2025 (GLOBE NEWSWIRE) -- Treasure Global Inc. (NASDAQ:TGL) ("Treasure Global" or the "Company"), a Nasdaq-listed technology company, today announced a strategic initiative to develop and deploy an advanced artificial intelligent (AI) cloud infrastructure in Malaysia. This new platform will be capable of supporting AI models up to one trillion parameters, positioning it among the most powerful AI computing environments in Southeast Asia. This initiative represents a signific ...

Core Insights - Treasure Global Inc. reported its financial results for Q2 2025, highlighting a strategic shift towards higher-margin operations despite a significant year-over-year revenue decline [1][3][9] Financial Performance - Revenue for Q2 2025 was $0.30 million, a 46% increase from $0.21 million in Q1 2025, but a 96% decline from $6.71 million in Q2 2024 [9] - Gross profit was $0.22 million, up 30% from $0.17 million in Q1 2025, with a gross profit margin of 74%, compared to 83% in Q1 2025 and 5% in Q2 2024 [9] - Net loss narrowed to $0.23 million, reflecting a 76% improvement from $0.95 million in Q1 2025 and an 81% improvement from $1.20 million in Q2 2024 [9] Management Commentary - The CEO emphasized the company's focus on enhancing profitability and operational efficiency, noting a 46% quarter-over-quarter revenue increase and improved cost efficiencies [3] - The CFO highlighted a 76% reduction in net loss compared to the previous quarter and an increase in gross profit margin to 74%, indicating effective cost optimization efforts [4] Operational Updates - The company is advancing a new digital commerce initiative to expand its ecosystem and drive value creation, leveraging technology-driven solutions [5] - Treasure Global is expanding its e-commerce marketplace, allowing businesses to list and fulfill products directly, which supports revenue growth [6] - Following the acquisition of Tien Ming Distribution, the company aims to enhance fulfillment and logistics operations, integrating this acquisition into its supply chain strategy [7] Business Outlook - In the next quarter, the company plans to continue its transformation strategy by enhancing digital commerce initiatives, expanding the e-commerce marketplace, and strengthening logistics through Tien Ming Distribution [10] - The company remains focused on optimizing its business model, diversifying revenue streams, and enhancing operational efficiency [10] Company Overview - Treasure Global is a technology-driven solutions provider specializing in e-commerce, fintech, and digital transformation, with over 2.9 million registered users as of December 2024 [11]

Financial Performance - Revenues for the three months ended December 31, 2024, were $301.9 million, a significant increase from $6.7 million in the same period of 2023[16]. - Gross profit for the six months ended December 31, 2024, was $396.1 million, compared to $508.2 million for the same period in 2023[16]. - Net loss for the three months ended December 31, 2024, was $232.3 million, compared to a net loss of $1.2 billion in the same period of 2023[16]. - Net loss for the six months ended December 31, 2024, was $1,183,039 compared to a loss of $3,331,226 for the same period in 2023, representing a 64.5% improvement[20]. - The company reported a gross profit margin of approximately 74.2% for the three months ended December 31, 2024[16]. - The company experienced an unrealized holding gain on marketable securities of $460.2 million for the three months ended December 31, 2024[16]. - The Company reported a recurring loss from operations of approximately $1.3 million for the six months ended December 31, 2024, and an accumulated deficit of approximately $39.0 million as of the same date[30]. - The Company incurred a loss before income tax of $222,892 for the three months ended December 31, 2024, compared to a loss of $1,193,508 for the same period in 2023[187]. Assets and Equity - Total assets increased to $19.1 billion as of December 31, 2024, compared to $4.3 billion as of June 30, 2024[14]. - Total stockholders' equity reached $18.4 billion as of December 31, 2024, up from $3.4 billion as of June 30, 2024[14]. - Total stockholders' equity as of December 31, 2024, was $18,402,141, an increase from $3,686,710 as of December 31, 2023[18]. - Cash and cash equivalents increased to $258.6 million as of December 31, 2024, from $200.0 million as of June 30, 2024[13]. - Total intangible assets, net as of December 31, 2024, were $14,239,294, a significant increase from $3,130,936 as of June 30, 2024, reflecting a growth of approximately 353%[125]. Cash Flow and Expenses - Cash used in operating activities for the six months ended December 31, 2024, was $1,582,518, a decrease from $3,089,366 in the prior year[20]. - Research and development expenses for the six months ended December 31, 2024, totaled $80.3 million, down from $220.6 million in the same period of 2023[16]. - Research and development expenses for the three months ended December 31, 2024, were $33,136, down from $138,236 in the same period of 2023[85]. - Advertising costs for the three months ended December 31, 2024, were $29,167, significantly lower than $393,306 in the same period of 2023[83][84]. - The company incurred stock-based compensation expenses of $140,000 for the six months ended December 31, 2024[20]. - The Company recognized $70,000 and $140,000 in stock-based compensation expense for the three and six months ended December 31, 2024, respectively[186]. Revenue Recognition - The company recognized revenue from product sales on a gross basis, as it is primarily responsible for fulfilling the promise to provide specified goods[70]. - The company adopted ASU 2014-09 for revenue recognition, which requires identifying performance obligations and determining when revenue should be recognized[67]. - E-voucher revenue for the three months ended December 31, 2024, was $13,510, compared to $6,031,180 for the same period in 2023, indicating a decline[80]. - Health care products, computer products, and food and beverage products revenue for the three months ended December 31, 2024, was $244,903, down from $421,935 in 2023[80]. - Member subscription revenue for the three months ended December 31, 2024, was $5,161, a decrease from $148,205 in the same period of 2023[80]. Stock and Financing Activities - The company raised $2,457,390 from the issuance of common stock in a market offering during the six months ended December 31, 2024[20]. - The Company issued 15,440,299 shares of common stock for software development, valued at $10,800,000[20]. - The Company issued 3,566,668 shares of common stock to investors for an aggregate amount of $1,177,000 at a negotiated purchase price of $0.33 per share[35]. - The Company received aggregated net proceeds of approximately $3.5 million from the November 2023 Offering, which included 371,628 shares of common stock and 14,000,000 pre-funded warrants[31]. - The Company executed a 1-for-70 reverse stock split on February 27, 2024, affecting all shares and per share amounts retroactively[150]. Risks and Concerns - The Company has significant doubt about its ability to continue as a going concern due to recurring losses and insufficient funds to meet working capital requirements[36]. - The Company has cumulative net operating losses of $9,679,252 in the United States, which can offset future taxable income[188]. - The Company has cumulative net operating losses in Malaysia amounted to $22,190,004, which can be carried forward for up to ten years to offset future taxable income[191]. - The company did not incur any interest and penalties related to uncertain tax positions for the six months ended December 31, 2024[193]. Customer and Vendor Concentration - For the three months ended December 31, 2024, one customer accounted for approximately 74.9% of total revenues, a significant increase from the previous year where no customer exceeded 10%[194]. - For the six months ended December 31, 2024, one customer represented about 44.4% of total revenues, compared to no customer exceeding 10% in the same period of the previous year[195]. - Two vendors accounted for approximately 69.5% and 25.5% of total purchases for the three months ended December 31, 2024, indicating a concentration in supplier relationships[196]. - As of December 31, 2024, three vendors accounted for approximately 46.7%, 20.9%, and 15.1% of total accounts payable, highlighting vendor concentration risks[198].

Core Insights - Treasure Global Inc. has acquired a 51% controlling stake in Tien Ming Distribution, marking a strategic expansion into Malaysia's fast-growing FMCG and e-commerce markets [2][3][5] - The acquisition is expected to generate USD116 million in revenue over the next three years by leveraging Tien Ming Distribution's partnership with Fraser & Neave Holdings Bhd (F&N) [6][8] - Malaysia's FMCG market is projected to grow at a CAGR of 7.95% from 2023 to 2027, reaching approximately USD159 billion by 2033 [4] Company Overview - Treasure Global is a technology-driven digital commerce and fintech solution provider, focusing on innovative technology platforms that drive digital transformation [11] - The company’s flagship product, the ZCITY Super App, integrates e-payment solutions with customer rewards, attracting over 2.9 million registered users as of November 2024 [11] Market Dynamics - F&N is one of Malaysia's largest food and beverage conglomerates, with reported revenues of RM5.25 billion (approximately USD1.16 billion) for fiscal 2024 [10] - Tien Ming Distribution specializes in logistics and e-commerce, serving as the strategic fulfillment partner for F&N, and operates TM Grocer, an online grocery platform [9] Strategic Benefits - The acquisition allows Treasure Global to capture 10% of F&N's annual sales, enhancing its operational efficiency and competitive edge in the FMCG and e-commerce sectors [3][5] - By integrating advanced digital commerce technology with F&N's distribution network, the company aims to drive substantial revenue growth [3][5] Financial Projections - The anticipated revenue growth of USD116 million will be driven by the distribution of leading household brands such as 100PLUS, F&N SEASONS, and Magnolia [6] - The company plans to invest an initial RM500,000 (approximately USD110,000) with potential additional investments of up to RM3,000,000 (approximately USD660,000) based on future performance [7]

User Engagement and Growth - As of September 30, 2024, the company recorded 2,704,482 registered users and 25,216 active users on the ZCITY platform, reflecting a growth rate of approximately 2.0% in registered users but a decline of 38.3% in active users over the last five quarters [226]. - The company experienced a decrease in the number of new registered users, with only 3,293 new users in the quarter ending September 30, 2024, compared to 102,752 in the previous year [226]. - As of September 30, 2024, the total registered users on the ZCITY platform reached 2,704,482, with only 25,216 active users, resulting in an active user rate of 0.9% [230]. - The active user churn rate improved to 18.3% by September 30, 2024, while the retention rate increased to 81.7% [231]. Financial Performance - Total revenues for the three months ended September 30, 2024, decreased by approximately $13.3 million or 98.5% to $207,371 compared to $13,463,895 for the same period in 2023 [233]. - Product and loyalty program revenue dropped by approximately $13.1 million or 99.4% to $81,745 for the three months ended September 30, 2024, primarily due to a strategic decision to streamline the product line [235]. - Transaction revenue increased by 113.2% to approximately $43,080 for the three months ended September 30, 2024, driven by a partnership with Creditlab Sdn. Bhd. [236]. - Member subscription revenue decreased by 52.3% to approximately $82,546 for the three months ended September 30, 2024, attributed to a slowdown in acquiring new customers [237]. - Total cost of revenue decreased by approximately $13.3 million or 99.7% to $35,199 for the three months ended September 30, 2024, in line with the decrease in revenue [239]. - Gross profit for the three months ended September 30, 2024, amounted to approximately $172,172, reflecting an increase of approximately $9,538 or 5.9% compared to the same period in 2023 [240]. Expenses and Cash Flow - Selling expenses decreased by approximately $0.7 million or 89.8% to $78,000 for the three months ended September 30, 2024, due to reduced marketing and promotion expenses [244]. - General and administrative expenses decreased by approximately $0.4 million or 36.2% to $800,000 for the three months ended September 30, 2024, primarily due to lower salary and professional fee expenses [245]. - Other expense, net decreased by approximately $71,000 to $0.1 million for the three months ended September 30, 2024, primarily due to a decrease in amortization of debt discount [248]. - Provision for income taxes decreased to approximately $11,391 for the three months ended September 30, 2024, from $14,925 in 2023 [249]. - Net cash used in operating activities was approximately $976,319 for the three months ended September 30, 2024, compared to $1,916,603 in 2023 [258]. - Net cash used in investing activities was approximately $1.5 million for the three months ended September 30, 2024, primarily due to a collaboration deposit [263]. - Net cash provided by financing activities was approximately $2.5 million for the three months ended September 30, 2024, mainly from the issuance of common stock [264]. Strategic Initiatives - The company successfully launched the ZCITY App in Malaysia in June 2020, which aims to become the top rewards and loyalty platform in Malaysia and expand its reach in Southeast Asia and Japan [202]. - The company is integrating credit services into the ZCITY App through a partnership with Credilab Sdn Bhd, aiming to enhance user engagement and overall credit services offering [217]. - The company has partnered with Octagram Investment Limited to develop mini-game modules for the ZCITY App, enhancing interactive features and user engagement [218]. - The company is developing a Live Streaming Platform enhanced by AI Digital Human Solutions in partnership with V Gallant Sdn Bhd, scheduled for completion by December 31, 2025 [219]. - The company is developing a Smart Campus System at ELMU University, focusing on optimizing electricity usage, expected to be fully deployed within 12 months from the contract's commencement date [216]. Financial Health and Concerns - Management expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and insufficient funds to meet obligations [257]. - As of September 30, 2024, cash and cash equivalents were approximately $73,000, down from $0.2 million as of June 30, 2024 [253]. - The November 2023 Offering generated approximately $3.5 million in net proceeds after underwriting discounts [254]. - The company recorded a material weakness in internal control over financial reporting due to inadequate U.S. GAAP expertise among the current accounting staff [288]. - The company lacks a functional internal audit department, which is a material weakness in internal control over financial reporting [288]. - The company has not identified any changes in internal control over financial reporting that materially affected its internal control during the quarter ended September 30, 2024 [290]. Other Financial Metrics - The company recorded a provision for estimated credit losses of $243, down from $1,100 as of June 30, 2024 [269]. - For the three months ended September 30, 2024, the company recorded an unrealized holding loss on marketable securities of approximately $128,000, compared to an unrealized holding gain of approximately $60,000 for the same period in 2023 [275]. - Stock-based compensation for the three months ended September 30, 2024 amounted to $70,000, while there was no stock-based compensation incurred for the same period in 2023 [281]. - The estimated retail price per point for the loyalty program is based on actual historical retail prices, and changes in redemption rates affect the contract liability [278]. - The company issued 14,000,000 Pre-Funded Warrants in connection with the November 2023 Offering, with $1,398,600 allocated to the Pre-Funded Warrants recorded as additional paid-in capital [285]. - Deferred tax assets are recognized only if it is probable that taxable profit will be available against which deductible temporary differences can be utilized [279].