AGBA (US:AGBA)2024-08-14 20:06Financial Performance - Total revenues for Q2 2024 were $4.921 million, a decrease of $12.450 million or 71.67% compared to $17.371 million in Q2 2023 [254]. - The Distribution Business accounted for 83.21% of total revenue in Q2 2024, down from 92.14% in Q2 2023, with a revenue drop of $11.911 million or 74.42% [255]. - Life insurance revenue decreased by $11.384 million or 74.83%, from $15.214 million in Q2 2023 to $3.830 million in Q2 2024 [256]. - Total revenues decreased by US$15.9 million, or 55.78%, for the six months ended June 30, 2024, compared to the same period in 2023 [277]. - The Distribution Business contributed 83.57% of total revenue for the six months ended June 30, 2024, with a significant revenue decrease of US$15.2 million, or 59.09% [278]. - Life insurance revenue decreased by US$14.2 million, or 59.03%, for the six months ended June 30, 2024, compared to the same period in 2023 [279]. - The Platform Business contributed 16.43% of total revenue for the six months ended June 30, 2024, with a revenue decrease of US$0.7 million, or 24.89% [280]. Operating Expenses - Total operating expenses were $12.659 million, a reduction of $15.105 million or 54.40% from $27.764 million in Q2 2023 [254]. - Commission expenses fell by $10.668 million or 89.02%, from $11.984 million in Q2 2023 to $1.316 million in Q2 2024 [259]. - Personnel and benefit expenses increased by $0.176 million or 3.32%, from $5.302 million in Q2 2023 to $5.478 million in Q2 2024 [263]. - Legal and professional fees decreased by $3.837 million or 68.83%, from $5.575 million in Q2 2023 to $1.738 million in Q2 2024 [265]. - Total other general and administrative expenses increased by US$0.4 million, or 40.06%, for the three months ended June 30, 2024, compared to the same period in 2023 [268]. - Loss from operations decreased by US$2.7 million, or 25.55%, for the three months ended June 30, 2024, primarily due to a decrease in operating expenses of US$15.1 million [269]. - Personnel and benefit costs decreased by US$2.8 million for the six months ended June 30, 2024, compared to the same period in 2023 [286]. - Legal and professional fees decreased by US$1.4 million, or 45.17%, for the six months ended June 30, 2024, compared to the same period in 2023 [289]. - Loss from operations decreased by US$9.4 million, or 37.54%, for the six months ended June 30, 2024, compared to the same period in 2023 [292]. Net Loss and Cash Flow - The net loss for Q2 2024 was $11.369 million, an increase of $0.784 million or 7.41% compared to a net loss of $10.585 million in Q2 2023 [254]. - Net loss increased by US$0.7 million, or 6.89%, for the three months ended June 30, 2024, mainly due to an increase in other expenses of US$3.4 million [274]. - Net cash used in operating activities for the six months ended June 30, 2024 was US$14.2 million, a decrease from US$19.3 million for the same period in 2023 [310]. - The company reported a negative operating cash flow of US$14.2 million for the six months ended June 30, 2024 [298]. - Net loss decreased by US$3.2 million, or 14.25%, for the six months ended June 30, 2024, compared to the same period in 2023 [297]. Business Segments - The Company generated $10.5 million in commission from the Distribution Business for the six months ended June 30, 2024, indicating a focus on expanding its distribution footprint and partnerships in Mainland China [239]. - The Platform Business operates under the "OnePlatform" brand, offering 1,204 products from 95 insurance providers and 1,151 products from 54 asset management fund houses, showcasing a comprehensive range of financial services [241]. - The Fintech Business includes investments in Tandem Money Limited ($16.8 million), CurrencyFair Limited ($5.7 million), and Goxip Inc. ($305,000), reflecting a diverse portfolio aimed at leading the fintech investment sector [244]. - The Healthcare Business, through a 4% stake in HCMPS, serves over 500 corporate clients and more than 300,000 scheme members, emphasizing its significant market presence in Hong Kong and Macau [246]. - JFA, under HCMPS, operates a network of over 700 healthcare service providers, including 340 general practitioners and 273 specialist doctors, facilitating over 380,000 annual patient visits [248]. - The Company aims to transform JFA into the best medical care institution in Asia by 2025, focusing on technology and data analytics to enhance patient care and operational efficiency [249]. - The Distribution Business has built a market-leading financial advisors channel with approximately 670 financial advisors as of June 30, 2024, organized into 15 sales teams [234]. - The Company is investing in technological and operational infrastructure to support its financial consultants, ensuring compliance with regulatory requirements [236]. - The Platform Business leverages decades of experience to provide a full-service platform for banks and financial institutions, enhancing its competitive edge in the market [240]. - The Company anticipates sales volumes in the Distribution Business to return to pre-pandemic levels, particularly with the reopening of the Mainland border [239]. Capital and Financing - The company intends to raise additional capital through various debt and equity offerings to support operations and growth strategy [319]. - The company is committed to purchasing 100% equity interest in Sony Life Financial Advisers Pte. Ltd. for a cash consideration of approximately US$1.88 million, with the closing date extended to July 31, 2024 [320]. - As of June 30, 2024, the cash balance was US$1.8 million for working capital use [298]. - Total current assets increased to US$51.8 million as of June 30, 2024, up 102% from US$25.6 million as of December 31, 2023 [308]. - Total current liabilities rose to US$87.3 million, an increase of 82.58% from US$47.8 million as of December 31, 2023 [308]. - The working capital deficit increased to US$35.6 million as of June 30, 2024, up US$13.4 million or 60.16% from US$22.2 million as of December 31, 2023 [309]. - Net cash provided by investing activities for the six months ended June 30, 2024 was US$2.6 million, compared to US$4.5 million for the same period in 2023 [314]. - Net cash provided by financing activities for the six months ended June 30, 2024 was US$8.5 million, a significant increase from a net cash used of US$5.3 million in the same period in 2023 [315]. - The company reported an accumulated deficit of approximately US$85.0 million as of June 30, 2024 [316].