VCI Global Limited (NASDAQ:VCIG) ("VCI Global" or "the Company"), a
multi-disciplinary consulting group focusing on business and
technology, today announced its unaudited financial results for the
six months ended June 30, 2023 (the “Interim Results”) (the
“Announcement”).
Dato' Victor Hoo, Group Executive Chairman and
Chief Executive Officer of VCI Global, commented: “We are very
pleased with our results and progress now that we are a publicly
traded company. As we will illuminate on this call, VCI Global
demonstrated strong growth in our business strategy consultancy and
technology solutions segments and we are optimistic regarding the
remainder of 2023 and beyond”.
FINANCIAL RESULTS
Revenue was RM44.5 million
($9.5 million) for the six months ended June 30, 2023, representing
an increase of 108.0% YoY from RM21.4 million ($4.8 million) for
the six months ended June 30, 2022. The increase in revenues was
primarily attributable to higher demand across all of our business
segments.
- Revenue generated from
business strategy consultancy fee increased by 83.0% to
RM20.8 million ($4.5 million) for the six months ended June 30,
2023, compared to RM11.4 million ($2.6 million) for the six months
ended June 30, 2022. The increase was primarily a result of the IPO
services provided to the 4 clients from Malaysia and Singapore who
are currently undergoing the process of going public on Nasdaq,
which enhanced our reputation in this attractive market.
- Revenue generated from
technology development, solutions and consultancy
increased by 104.3% to RM19.7 million ($4.2 million) for the six
months ended June 30, 2023, compared to RM9.7 million ($2.2
million) for the six months ended June 30, 2022. The increase was
primarily a result from the development on financing management
system and e-commerce platform which we provided to the Fintech
industry.
- Revenue generated from
other services increased ten-fold to RM3.9 million ($0.8
million) for the six months ended June 30, 2023, compared to RM357
thousand ($81 thousand) for the six months ended June 30, 2022. For
the six months ended June 30, 2023, the Company added a new service
– financing service which contributed revenue of RM1.1 million
($240 thousand).
|
|
Six months endedJune 30,2023 |
|
|
Six months endedJune
30,2022 |
|
Change |
|
|
|
RM |
|
USD |
|
|
RM |
|
% |
|
Business strategy consultancy fee |
|
20,789,179 |
|
4,453,647 |
|
|
11,359,388 |
|
83.0 |
|
Technology Development,
Solutions and Consultancy |
|
19,733,018 |
|
4,227,387 |
|
|
9,657,906 |
|
104.3 |
|
Interest income |
|
1,118,641 |
|
239,645 |
|
|
- |
|
100.0 |
|
Others |
|
2,822,357 |
|
604,631 |
|
|
357,338 |
|
689.83 |
|
Total
revenue |
|
44,463,195 |
|
9,525,310 |
|
|
21,374,632 |
|
108.0 |
|
|
|
|
|
|
|
|
|
|
|
|
Other Income was RM1.1 million
($226 thousand) for the six months ended June 30, 2023, compared to
RM110 thousand ($25 thousand) for the six months ended June 30,
2022.
EBITDA of $4.49 million, or
47.2% of revenues, compared to $3.19 million, or 66% of revenues,
for the six months ended June 30, 2022. The increase in EBITDA for
the six months ended June 30, 2023 was primarily attributable to
the increase in our operating income.
Net Income for the six months
ended June 30, 2023 is $4.3 million, representing 37.6% increased
from $3.1 million for the six months ended June 30, 2022.
Cost of Services was RM6.0
million ($1.3 million) for the six months ended June 30, 2023,
representing an increase of 172.9% YoY from RM2.2 million ($503
thousand) for the six months ended June 30, 2022.
- Consultant fee
costs increased by 829.3% to RM5.7 million ($1.2 million)
for the six months ended June 30, 2023, compared to RM611 thousand
($139 thousand) for the six months ended June 30, 2022. The
increase in consultant fee cost was in line with the increase in
business consultancy revenue as the Company engages with more
professionals to serve its clients. The gross profit margin of
consultant income in term of consultant fee was 72.7% for the six
months ended June 30, 2023 compared to 94.6% for the six months
ended June 30, 2022.
- IT expenses were
RM181 thousand ($39 thousand) for the six months ended June 30,
2023, compared to RM1.5 million ($340 thousand) for the six months
ended June 30, 2022. The gross profit margin for Technology
Development, Solutions and Consultancy revenue and IT expenses
costs were 99.1% for the six months ended June 30, 2023, compared
to 84.5% for the six months ended June 30, 2022.
- Training costs
were RM192 thousand ($41 thousand) for the six months ended June
30, 2023, compared to NIL for the six months ended June 30,
2022.
- Other cost of
services was NIL for the six months ended June 30, 2023,
compared to RM110 thousand ($25 thousand) for the six months ended
June 30, 2022.
|
|
Six months ended June 30, 2023 |
|
Six months ended June 30, 2022 |
|
|
Change |
|
|
|
RM |
|
USD |
|
RM |
|
|
% |
|
Consultant fee |
|
5,676,167 |
|
1,216,000 |
|
610,797 |
|
|
829.30 |
|
|
IT expenses |
|
180,669 |
|
38,705 |
|
1,495,966 |
|
|
(87.92 |
) |
|
Training costs |
|
192,398 |
|
41,217 |
|
- |
|
|
N.A. |
|
|
Others |
|
- |
|
- |
|
110,166 |
|
|
N.A. |
|
|
Total |
|
6,049,234 |
|
1,295,922 |
|
2,216,929 |
|
|
172.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation was RM274 thousand
($59 thousand) for the six months ended June 30, 2023, compared to
RM11.2 thousand ($2.5 thousand) for the six months ended June 30,
2022. The increase was primarily due to additional assets acquired,
such as new computer and accessories purchased for the Company’s
employees who joined during the first half of the year 2023.
Directors’ fees increased to
RM5.4 million ($1.2 million) for the six months ended June 2023,
compared to RM141 thousand ($32 thousand) for the six months ended
June 30, 2022, as the Company started to pay fixed director fees to
its Board of Directors in VCI Global Limited after successfully
listing on Nasdaq in April 2023.
Operating Income increased by
RM6.6 million ($1.4 million) for the six months ended June 30,
2023, compared to RM14 million ($3 million) for the six months
ended June 20,2022 mainly due to other operating expense which
comprise of increase of marketing expenses by RM759 thousand ($163
thousand) to reach out to more customers and create brand
awareness, increase of office expenses by RM575 thousand ($123
thousand) as bigger offices require higher maintenance and
cleaning, and increase of legal and professional fees included
audit fees and legal compliance fees by RM1.4 million ($290
thousand) after initial public offering.
As a result of the above, profit for the
period was RM20 million ($4.3 million) for the six months
ended June 30, 2023, compared to RM13.8 million ($3.1 million) for
the six months ended June 30, 2022.
Basic and Diluted earnings per
share was RM0.55 ($0.12) for the six months ended June 30,
2023, compared to RM0.40 ($0.09) for the six months ended June 30,
2022.
CASH POSITION AND CAPITAL
ALLOCATION
Net cash used in operating
activities was RM17.2 million ($3.7 million) for the six
months ended June 30, 2023, compared to RM642 thousand ($146
thousand) for the six months ended June 30, 2022. The increase in
net cash used in operating activities is primarily due to an
increase in the use of cash of RM40 million related to trade and
other receivables. These increases in cash used in operating
activities were offset in part by an increase of RM780 thousand in
the gain of disposal of investment.
Net cash generated by investing
activities was RM13 million ($2.8 million) for the six
months ended June 30, 2023, compared to RM178 thousand ($40
thousand) used in investing activities for the six months ended
June 30, 2022. Cash generated by investing activities was mainly
due to the proceeds from disposal of investment in Treasure Global
Inc.
Net cash generated from financing
activities was RM15.6 million ($3.3 million) for the six
months ended June 30, 2023, compared to RM589 thousand ($134
thousand) used in financing activities for the six months ended
June 30, 2022. Cash provided by financing activities for the six
months ended June 30, 2023 was primarily related to RM17.5 million
($3.7 million) in proceeds from issuance of share capital.
Cash and cash equivalents was
RM15 million ($3.3 million) as of June 30, 2023, compared to RM4
million as of June 30, 2022.
H1 2023 Results Conference Call and Replay
Information
VCI Global will discuss its first half results
for the period ended June 30, 2023 in its conference call on
October 4, 2023, at 8:30 am ET and 8:30 pm Malaysia Time. A
simultaneous live webcast of the call will be available on the
company's Investor Relations website at
https://ir.v-capital.co/press_release/.
What: Date of VCI Global 1H 2023 Financial
Results and Q&A WebcastWhen: Wednesday,
October 4, 2023Time: 8:30 a.m. Eastern Time / 8:30
p.m. Malaysia TimeWebcast: Conference call
registration
link: https://register.vevent.com/register/BI32821ec0a11c4c70ad83caf1a61b071d
Approximately 24 hours after the Q&A session, an archived
version of the webcast will be available on the Company's website
for approximately two weeks thereafter.
Investor Presentation and Supplemental Financial
Information
VCI Global has made available on its website a
presentation designed to accompany the discussion of VCIG’s results
and future outlook, along with certain supplemental financial
information and other data. Interested parties may access this
information through the VCI Global Investor Relations website
at (insert link)
About VCI Global Limited
VCI Global is a multi-disciplinary consulting
group with key advisory practices in the areas of business and
technology. The Company provides business and boardroom strategy
services, investor relation services, and technology consultancy
services. Its clients range from small-medium enterprises and
government-linked agencies to publicly traded companies across a
broad array of industries. VCI Global operates solely in Malaysia,
with clients predominantly from Malaysia, but also serves some
clients from China, Singapore, and the US.
For more information on the Company, please log
on to https://v-capital.co/.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking
statements that are subject to various risks and uncertainties.
Such statements include statements regarding the Company's ability
to grow its business and other statements that are not historical
facts, including statements which may be accompanied by the words
"intends," "may," "will," "plans," "expects," "anticipates,"
"projects," "predicts," "estimates," "aims," "believes," "hopes,"
"potential" or similar words. Actual results could differ
materially from those described in these forward-looking statements
due to certain factors, including without limitation, the Company's
ability to achieve profitable operations, customer acceptance of
new products, the effects of the spread of Coronavirus (COVID-19)
and future measures taken by authorities in the countries wherein
the Company has supply chain partners, the demand for the Company's
products and the Company's customers' economic condition, the
impact of competitive products and pricing, successfully managing
and, general economic conditions and other risk factors detailed in
the Company's filings with the United States Securities and
Exchange Commission. The forward-looking statements contained in
this press release are made as of the date of this press release,
and the Company does not undertake any responsibility to update the
forward-looking statements in this release, except in accordance
with applicable law.
CONTACT INFORMATION:
Issued by ICR Imej Jiwa Communications
Sdn Bhd on behalf of VCI Global Limited
For media queries, please contact:
Imej Jiwa Communications Sdn
Bhd
Chris Chuah
Email: chris@imejjiwa.com
Investor Relations
Michael BowenEmail: Vciglobal.IR@icrinc.com
Financial Tables
Interim condensed consolidated statements of financial
position
|
As of June 30, 2023
(Unaudited) |
|
|
As
ofDecember 31,2022(Audited) |
|
|
RM |
|
|
USD |
|
|
RM |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
Financial assets measured at fair value through other comprehensive
income |
|
7,002,234 |
|
|
|
1,500,082 |
|
|
|
12,819,747 |
|
Financial assets measured at
fair value through profit and loss |
|
76,044 |
|
|
|
16,291 |
|
|
|
72,295 |
|
Property and equipment |
|
2,081,771 |
|
|
|
445,976 |
|
|
|
1,551,579 |
|
Right-of-use of assets |
|
555,445 |
|
|
|
118,992 |
|
|
|
714,143 |
|
Deferred initial public
offering expense |
|
- |
|
|
|
- |
|
|
|
6,564,162 |
|
Deferred tax assets |
|
339,650 |
|
|
|
72,763 |
|
|
|
339,650 |
|
Total non-current assets |
|
10,055,144 |
|
|
|
2,154,104 |
|
|
|
22,061,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables |
|
55,983,342 |
|
|
|
11,993,261 |
|
|
|
15,759,533 |
|
Amount due from related
parties |
|
- |
|
|
|
- |
|
|
|
7,000 |
|
Cash and bank balances |
|
15,328,861 |
|
|
|
3,283,888 |
|
|
|
3,995,995 |
|
Total current assets |
|
71,312,203 |
|
|
|
15,277,149 |
|
|
|
19,762,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
81,367,347 |
|
|
|
17,431,253 |
|
|
|
41,824,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
6,395,343 |
|
|
|
1,370,068 |
|
|
|
10,408,318 |
|
Bank and other borrowings |
|
682,410 |
|
|
|
146,192 |
|
|
|
783,542 |
|
Lease liabilities |
|
162,837 |
|
|
|
34,884 |
|
|
|
322,208 |
|
Income tax payable |
|
1,833,795 |
|
|
|
392,852 |
|
|
|
1,716,794 |
|
Total current liabilities |
|
9,074,385 |
|
|
|
1,943,996 |
|
|
|
13,230,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
Bank and other borrowings |
|
309,331 |
|
|
|
66,268 |
|
|
|
309,331 |
|
Lease liabilities |
|
422,751 |
|
|
|
90,566 |
|
|
|
422,751 |
|
Amount due to related
parties |
|
2,017,705 |
|
|
|
432,251 |
|
|
|
3,586,646 |
|
Total non-current
liabilities |
|
2,749,787 |
|
|
|
589,085 |
|
|
|
4,318,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
11,824,172 |
|
|
|
2,533,081 |
|
|
|
17,549,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
37,069,050 |
|
|
|
7,941,269 |
|
|
|
13,127,427 |
|
Capital reserve |
|
6,532,560 |
|
|
|
1,399,465 |
|
|
|
6,532,560 |
|
Currency translation
reserve |
|
1,272,834 |
|
|
|
272,678 |
|
|
|
- |
|
Retained earnings |
|
27,459,238 |
|
|
|
5,882,566 |
|
|
|
6,255,851 |
|
Attributable to equity owners
of the Company |
|
72,333,682 |
|
|
|
15,495,978 |
|
|
|
25,915,838 |
|
Non-controlling interests |
|
(2,790,507 |
) |
|
|
(597,806 |
) |
|
|
(1,641,324 |
) |
Total
equity |
|
69,543,175 |
|
|
|
14,898,172 |
|
|
|
24,274,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and
liabilities |
|
81,367,347 |
|
|
|
17,431,253 |
|
|
|
41,824,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interim condensed
consolidated statements of comprehensive
income (unaudited)
|
Six months endedJune 30,
2023 |
|
|
Six monthsended June
30,2022 |
|
|
RM |
|
|
USD |
|
|
RM |
|
Revenue |
|
44,463,195 |
|
|
9,525,310 |
|
|
15,931,394 |
|
Revenue – related party |
|
- |
|
|
- |
|
|
5,443,238 |
|
Total revenue |
|
44,463,195 |
|
|
9,525,310 |
|
|
21,374,632 |
|
Other income |
|
1,054,906 |
|
|
225,992 |
|
|
109,802 |
|
Fair value adjustment on
financial assets measured at fair value through profit and
loss |
|
- |
|
|
- |
|
|
1,679,842 |
|
Cost of services |
|
(6,049,234 |
) |
|
(1,295,922 |
) |
|
(2,216,929 |
) |
Depreciation |
|
(274,425 |
) |
|
(58,790 |
) |
|
(11,203 |
) |
Directors’ fees |
|
(5,435,664 |
) |
|
(1,164,477 |
) |
|
(141,000 |
) |
Employee benefits
expenses |
|
(7,770,225 |
) |
|
(1,664,608 |
) |
|
(4,807,371 |
) |
Impairment allowance on trade
receivables |
|
- |
|
|
- |
|
|
(183,546 |
) |
Rental expenses |
|
(149,951 |
) |
|
(32,124 |
) |
|
(156,673 |
) |
Legal and professional
fees |
|
(1,473,823 |
) |
|
(315,736 |
) |
|
(117,377 |
) |
Finance cost |
|
(15,875 |
) |
|
(3,401 |
) |
|
(8,685 |
) |
Other operating expenses |
|
(3,668,557 |
) |
|
(785,912 |
) |
|
(1,474,666 |
) |
Profit before income
tax |
|
20,680,347 |
|
|
4,430,332 |
|
|
14,046,826 |
|
Income tax expense |
|
(626,143 |
) |
|
(134,138 |
) |
|
(283,648 |
) |
Profit for the
period |
|
20,054,204 |
|
|
4,296,194 |
|
|
13,763,178 |
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
Exchange differences on
translating foreign operations |
|
1,272,834 |
|
|
272,678 |
|
|
- |
|
Fair value adjustment on
financial assets measured at fair value through other comprehensive
income |
|
- |
|
|
- |
|
|
(4,199,770 |
) |
Total comprehensive
income for the period |
|
21,327,038 |
|
|
4,568,872 |
|
|
9,563,408 |
|
|
|
|
|
|
|
|
|
|
|
Profit attributable
to: |
|
|
|
|
|
|
|
|
|
Equity owners of the
Company |
|
21,203,387 |
|
|
4,542,382 |
|
|
13,568,156 |
|
Non-controlling interests |
|
(1,149,183 |
) |
|
(246,188 |
) |
|
195,022 |
|
Total |
|
20,054,204 |
|
|
4,296,194 |
|
|
13,763,178 |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income attributable to: |
|
|
|
|
|
|
|
|
|
Equity owners of the
Company |
|
22,476,221 |
|
|
4,815,060 |
|
|
9,368,386 |
|
Non-controlling interests |
|
(1,149,183 |
) |
|
(246,188 |
) |
|
195,022 |
|
|
|
21,327,038 |
|
|
4,568,872 |
|
|
9,563,408 |
|
|
|
|
|
|
|
|
|
|
|
Interim condensed
consolidated statements of cash
flows (unaudited)
|
Six months endedJune 30,
2023 |
|
|
Six monthsendedJune
30,2022 |
|
|
RM |
|
|
USD |
|
|
RM |
|
Operating activities |
|
|
|
|
|
|
|
|
|
Profit before income tax |
|
20,680,347 |
|
|
4,430,332 |
|
|
14,046,826 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
Impairment allowance on trade
receivable |
|
- |
|
|
- |
|
|
183,546 |
|
Unrealized foreign exchange
loss |
|
805,197 |
|
|
172,498 |
|
|
- |
|
Depreciation of property and
equipment |
|
115,727 |
|
|
24,792 |
|
|
11,203 |
|
Depreciation of right-of-use
of assets |
|
158,698 |
|
|
33,998 |
|
|
- |
|
Fair value adjustment on
financial assets measured at fair value through profit and
loss |
|
- |
|
|
- |
|
|
(1,679,842 |
) |
Gain on disposal of
investment |
|
(780,319 |
) |
|
(167,167 |
) |
|
- |
|
Gain on disposal of property
and equipment |
|
- |
|
|
- |
|
|
(1,891 |
) |
Interest expense |
|
15,875 |
|
|
3,401 |
|
|
8,685 |
|
Interest income |
|
(942 |
) |
|
(202 |
) |
|
(22 |
) |
Operating cash flow before
movement in working capital |
|
20,994,583 |
|
|
4,497,652 |
|
|
12,568,505 |
|
Trade and other
receivables |
|
(40,216,809 |
) |
|
(8,615,611 |
) |
|
(8,629,924 |
) |
Trade and other payables |
|
2,551,187 |
|
|
546,538 |
|
|
(4,804,822 |
) |
Cash used in operations |
|
(16,671,039 |
) |
|
(3,571,421 |
) |
|
(866,241 |
) |
Interest received |
|
- |
|
|
- |
|
|
22 |
|
Income tax paid |
|
(509,142 |
) |
|
(109,073 |
) |
|
224,626 |
|
Net cash used in
operating activities |
|
(17,180,181 |
) |
|
(3,680,494 |
) |
|
(641,593 |
) |
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(645,919 |
) |
|
(138,375 |
) |
|
(33,896 |
) |
Proceeds from disposal of
property and equipment |
|
- |
|
|
- |
|
|
11,706 |
|
Interest paid |
|
- |
|
|
- |
|
|
- |
|
Interest received |
|
942 |
|
|
202 |
|
|
- |
|
Acquisition of financial
assets measured at fair value through profit and loss |
|
- |
|
|
- |
|
|
(156,120 |
) |
Proceeds from disposal of
financial assets measured at fair value through other comprehensive
income |
|
13,600,066 |
|
|
2,913,530 |
|
|
- |
|
Net cash generated
from / (used in) investing activities |
|
12,955,089 |
|
|
2,775,357 |
|
|
(178,310 |
) |
|
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of
shares |
|
- |
|
|
- |
|
|
2,615,477 |
|
Proceeds from initial public
offering, net of issuance costs |
|
17,457,899 |
|
|
3,739,990 |
|
|
- |
|
Interest paid |
|
(15,875 |
) |
|
(3,401 |
) |
|
- |
|
Repayments of other
borrowings |
|
(101,132 |
) |
|
(21,665 |
) |
|
(54,781 |
) |
Repayment of advances to
related parties |
|
(1,568,941 |
) |
|
(336,113 |
) |
|
(3,149,847 |
) |
Repayment of operating
leases |
|
(159,371 |
) |
|
(34,142 |
) |
|
- |
|
Net cash generated
from / (used in) financing activities |
|
15,612,580 |
|
|
3,344,669 |
|
|
(589,151 |
) |
|
|
|
|
|
|
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents |
|
11,387,488 |
|
|
2,439,532 |
|
|
(1,409,054 |
) |
Effect of currency translation
on cash and cash equivalents |
|
(54,622 |
) |
|
(11,702 |
) |
|
- |
|
Cash and bank balances at
beginning of the period |
|
3,995,995 |
|
|
856,058 |
|
|
3,122,947 |
|
Cash and bank balances
at end of the period |
|
15,328,861 |
|
|
3,283,888 |
|
|
1,713,893 |
|
VCI Global (NASDAQ:VCIG)
Historical Stock Chart
From May 2024 to Jun 2024
VCI Global (NASDAQ:VCIG)
Historical Stock Chart
From Jun 2023 to Jun 2024