TGL

Good day, everyone and welcome to Treasure Global Inc.'s Third Quarter Fiscal Year 2024 Earnings Call. [Operator Instructions]. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the call over to Su Chuah, Chief Marketing Officer of Treasure Global, Inc. for introduction and the reading of the safe harbor statement. Please go ahead.

Thank you, operator. Good morning, everyone and welcome to Treasure Global's Third Quarter Fiscal Year 2024 Results Conference Call. With us today, we have our Chief Executive Officer, Sam Teo. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from Treasure Global's management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934, as amended, concerning future events, words such as may, should, project, expect, intend, plan, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. These 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 Form 10-K for the year ended June 30, 2023 and subsequent filings filed with the SEC. Copies of this document is available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law. Now it is my pleasure to introduce Sam Teo, CEO of TGL. Sam, you may now begin.

Thanks, Su. And good morning and thank you, everyone, for joining us today on our Third Quarter of Fiscal 2024 Earnings Conference Call covering the period ended March 31, 2024. I will start with the highlights of our third quarter business performance, followed by our financial results. At Treasure Global, we maintained a positive outlook and grow steadily in this ever-changing macro environment. We are proud to say that we have developed a strategy that work in all condition, allowing us to grow regardless of the situation. Our focus remains on delivering value to our customers and consumers, which ultimately enable us to drive sustainable growth for all our shareholders. Before I begin, I'm happy to announce the achievement of the new ZCITY Premium Store, which we've discussed last quarter. This addition has not only broadened our product portfolio but had also significantly boosted our gross profit margin. This growth perfectly aligns with our strategy vision and path forward. In this quarter, we have successfully filed and actually initiated an ATM offering, securing an aggregate offering price of up to $2.99 million. This strategic financing effort has provided us with the necessary capital while maintaining flexibility and alignment with our growth strategy. The fund will be put towards driving forward our business initiatives, fostering innovation and ultimately creating more value for our shareholders. We will dig deeper into our AI initiative, market expansion efforts and key achievements shortly. Additionally, we are pleased to further solidify our competitive advantage in the blockchain market and opening up new avenues for revenue expansion and portfolio growth. Our recent partnership as the exclusive provider of an AI forcing wallet on Telegram places us at the forefront of innovation in the blockchain sector. This strategic decision not only expands our portfolio but also reinforce our competitive edge by securing the first right of refusal. Furthermore, this unlock promising new business opportunity within the blockchain market. Let's now proceed to explore the highlights of our third quarter. In the third quarter of 2024, Treasure Global remained laser-focused on innovation, utilizing artificial intelligence to enhance product and foster better customer connection. Our AI initiatives empower us to anticipate customer needs, strengthen market share and identify lucrative opportunity in high-profit sector. Expanding on this AI enhancement success, we ventured into Meta platform for our live shopping event, utilizing AI power robot, equipped with advanced language capability, we hosted event in multiple language breaking down language barrier and engaging thousands of viewers. The Malaysian e-commerce market projected to reach $20.93 billion by 2029 and Meta platform boosting millions of active users. Our presence on Meta represents a significant opportunity. The move to Meta Live opens up West market with unparalleled user engagement potential. With this extensive user base and a robust infrastructure, Meta platform provides an ideal platform to showcase our products and engage with a global audience. By leveraging Meta Live, we aim to not only drive sales but also enhance brand visibility and customer engagement on the scale previously unseen. Treasure Global and AIO Synergy have joined force to revolutionize the AI landscape, capitalizing on the booming digital economy of Southeast Asia, with the Southeast Asia AI market expected to grow significantly at an anticipated annual rate of 17.83% by 2030. Our collaboration is strategically positioned for success. Our strategy [indiscernible] highlight our commitment to delivering innovative AI solutions and establish a state-of-the-art data center dedicated to AI application, catering to the evolving needs of businesses across various industries. By leveraging our collective expertise and resources, we aim to drive transformative changes in the Southeast Asian AI landscape, positioning our self as a key player in this dynamic market. We have taken a significant step forward by announcing a strategic partnership to become the exclusive partner for an AI blockchain model on Telegram. This move forward further strengthen our competitiveness in the blockchain industry, securing Treasure Global position as the leader in innovation with the global crypto wallet market projected to grow significantly. This collaboration positions us for significant expansion. Treasure Global strong focus on innovation and partnership puts us ahead in the world of the new technology. We are dedicated to exploring and creating more advanced AI to grow our business. Another exciting development is our recent milestone, in which we have secured a $2 million marketing contract with Satria Dunia Sdn Bhd. The objective is to showcase premium Korean beauty products using ZCITY advanced AI marketing engine. This strategic partnership marked a significant achievement for us as we expand ZCITY influence and capability in the beauty sector. By utilizing the ZCITY's state-of-the-art AI technology, we are well positioned to increase brand exposure and boost sales, thereby creating a new revenue stream for the company. Moving on, we have got more exciting news about ZCITY. We are talking with the Shanghai Guangxi Chamber of Commerce about running the Malaysia Pavilion. This is a big deal because this is a chance to sell great Malaysian products on huge platforms like Taobao and [indiscernible]. With China online shopping market growing fast and over 1.4 billion potential customer, this is an opportunity for us. This move fits perfectly with our goal to make digital shopping better and grow in new markets. As I mentioned earlier, the launch of ZCITY Premium Store has surpassed the expectations since inception, leveraging advanced AI tools, the premium store not only exceeded sales expectation but also significantly enhanced our user engagement. In just 4 months, the premium store has sold over 6,000 Bill Saver Bonanza Packs. This notable sales achievement highlight the platform effectiveness in driving transactions and enhancing gross profit stream. ZCITY has gained valuable insight into user spending habits and preferences, enabling the premium store to offer highly personalized package tailored to individual user needs and preferences. As a result, the premium store has significantly contributed to our gross profit growth, reflecting its strategic importance in driving business expansion and profitability for Treasure Global. In addition to the success of the ZCITY Premium Store. We also made strides in the gaming sector by launching 10 exciting mini games integrated with our AI Game Creator in ZCITYs 3D World. These mini games not only enhance the gaming experience for users but also position us to access the rapidly growing global gaming market, which is projected to reach a revenue of $212 billion by 2026. Through in-game purchases, virtual goods and AI-driven marketing strategy, ZCITY 3D World is poised to become a dynamic digital marketplace, capturing a significant share of the booming global gaming industry. And we are proud to share our significant achievement in this quarter, a notable win at the MARKETING-INTERACTIVE Asia eCommerce Awards 2023, where ZCITY has been honored to have won the silver trophy for best e-commerce solution. This recognition highlights our excellence in the fast-changing landscape of online shopping. This achievement demonstrates our firm commitment to innovation and delivering topnotch solution that caters to the ever-changing mix of our online customer. This quarter, we showcased our dedication to staying ahead of the curve, expanding our reach and putting our customers first. Moving forward, we are dedicated to driving growth, seizing opportunity and delivering value to our shareholders. Next, I will now share our financial results for the third quarter of fiscal year 2024. For the third quarter, our gross profit reached [$217,000], marking a substantial increase of 47% compared to the same period last year. This notable improvement is primarily attributable to our ongoing initiatives and optimizing spending and capitalizing on higher profit margin stream. While our total revenue for the quarter were $1.6 million compared to $6.7 million for the second quarter of fiscal year 2024, reflecting a decrease of approximately 76%. It is important to view this figure in the context of our strategy shift towards higher-margin business channel and long-term value creation. We are pleased to announce a substantial decrease in our net losses, approximately $1.7 million compared to approximately $2.9 million in the third quarter of fiscal year 2023. This strategic positive shift was primarily driven by our focus on optimizing cost management, including reduction in selling and administrative expenses. Our disciplined approach to cost management and operational efficiency has enabled us to achieve significant improvement in our bottom line compared to the previous year despite the challenging market condition. As of March 31, 2024, our cash balance was approximately $0.3 million compared to a cash balance of approximately $4.1 million as of March 31, 2023. This position is expected to strengthen following future sales of ATM share. ZCITY had over 2.69 million registered users and over 2,027 registered merchants as of March 31, 2024. Quarterly active users for the quarter ending March 31, 2024, were 41,455, a total of 0.19 million transactions were transfected by our registered users in the quarter ended March 31, 2024. Despite the decline in quarterly active users and paid users compared to our previous quarter, we remain confident in the long-term growth potential of ZCITY, especially as we continue to enhance its features and offering to meet the evolving mix of our users and merchants. In summary, our financial results for the third quarter demonstrate significant improvement in gross profit, reduction in net losses and strengthened financial position despite the decrease in overall revenue. We remain committed to executing our strategic initiatives and delivering value to our shareholders in the quarter ahead. We are also happy to say that we are expecting good standing with NASDAQ. This achievement reflects our commitment to upholding the highest standards of corporate governance and transparency. By meeting NASDAQ's mandatory requirement for listing, we demonstrate our dedication to operating it according with regulatory standard. This positions us to manage and grow our business more productively and will also encourage investor interest, improving the marketability of our common stock to an even broader base of investors. Looking forward, I have a positive outlook on the development showcased in our quarter 3 fiscal year 2024 highlights. Our unwavering focus on innovation and market expansion has led to significant products. In recent months, we have strategically taken intentional step to reallocate resources away from lower margin offering like our e-voucher product despite the anticipated short-term impact on results. We recognize this move as essential for long-term gain. This strategic move is aimed to enhance our working capital and rearranging our strategy branding towards reducing dependency on such offering. By doing so, we can channel our resources into the development of high-margin solution, empowering us to capture higher margins and drive sustained growth. As we navigate through fiscal 2024, our focus remains squarely on innovation and the development of products and services that promise more profitable growth, with an unwavering dedication to excellence and a keen eye on emerging trends, we are well positioned to capitalize on the diverse opportunities that lie ahead. Thank you again everyone for joining us on today's call and for your continued support. This concludes our prepared remarks. I will now ask the operator to close the line. Thank you and have a great day.

Thank you for joining today. I will now close the lines.

Good day, everyone, and welcome to Treasure Global Inc.'s Second Quarter of Fiscal Year 2024 Conference Call. At this time, all participants are in a listen-only mode. This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the call over to Erika Kay, Vice President, Investor Relations at KCSA for instructions and the reading of the safe harbor statement. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Treasure Global's second quarter fiscal 2024 results conference call. With us on today's call are Sam Teo, Chief Executive Officer; Michael Chan, Chief Financial Officer; and Jeremy Roberts, Independent Director. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from Treasure Global's management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended, concerning future events. Words such as may, should, project, expect, intend, plan, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. These 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 Form 10-K for the year ended June 30, 2023, and subsequent filings filed with the SEC. Copies of this document are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law. Now it is my pleasure to introduce Sam Teo, CEO of TGL. Sam, please go ahead.

Thanks, Erika, and thank you, everyone, for joining us today on our second quarter of fiscal 2024 earnings conference call for the period ended December 31, 2023. I'm pleased to be with you today to update you on the progress that we are making toward Treasure Global business strategy and to provide you with our results for the quarter. Before I review sort of the exciting innovation that we announced during the quarter, I want to update you on some steps that we took that we believe will help Treasure Global to achieve our growth and enhance shareholder value. This action which has centered on our ability to leverage new cutting edge artificial intelligence capability, further our strategy to be a leading innovator in our region, create new opportunity for profitable growth. We believe this action has made us a stronger company and will lead to a new state of growth for Treasure Global. Supporting our operation growth in the second quarter, we announced a public offering, raising $4 million, less fees and expenses. We used a portion of the fund to retire the remaining $2.1 million of convertible notes. This action help us to fortify our financial position and to optimize our capital structure, freeing up funds so that we can continue to develop new innovative products and services for customers. And shift our focus to higher margin businesses. Much of Treasure Global success is built on our ability to innovate. Throughout the quarter, we announced several initiatives that utilize artificial intelligence or AI to enhance our product offering and to engage more meaningful with our customer. Through our use of AI, we have been able to anticipate shifts in consumer demand, which has led to increases in market share for our businesses. This effort has allowed us to identify new business opportunity and allow us to focus our growth on our higher-margin product. On our last call, we announced that we have developed an AI robot through the acquisition of AI technology of Tencent and that we believe this will transform the e-commerce landscape on TikTok by offering dynamic interactive shopping experience for customers across the region. This innovative approach to product marketing has been successful as it captured the attention of the TikTok community and create a unique shopping experience for viewer by providing a platform that can answer customer query, provide product details and offer personalized recommendation. This new way of shopping was expected to not only drive increased revenue for ZCITY’, our e-commerce subsidiary, but has set new standard in the Live Commerce industry. Later in the quarter, we made history by hosting a first event as ZCITY’ became the first business in Malaysia to conduct a Live Commerce section on TikTok. This well-attended event that was co-hosted by human and an AI robot surpass Internet expectation with over 6,400 viewers participating in the section because of the potential of this innovative technology in reshaping the way consumers interact with brand. We demonstrated our ability to enhance consumer shopping experience, leading to more consumer engagement and approximately 1,100 purchasers. The event was significantly forward for digital shopping experience. Because of it's popularity, Tiktok Live Commerce provides a significant opportunity for Treasure Global to diversify our revenue stream and showcase product on ZCITY in a more innovative and engaging manner. Tiktok stated as the world highest traffic. Live Commerce Platform met it's ideal state for ZCITY to unveil our groundbreaking technology and to showcase ZCITY products and services. Throughout the quarter, we continue to look for a new way to reach consumers and to push the traditional boundary of e-commerce. Following the success of our First Live Commerce Event, we hosted another event on Meta Platform with an AI robot equipped with advanced language capability to engage with thousands of viewers in multiple language, breaking down language barrier and enhancing accessibility. This successful event set into lucrative market that are reshaping the future of e-commerce, with Malaysia e-commerce market projected to reach USD 20.9 billion by 2029. Treasure Global is strategically positioned to play alone in this anticipated exponential growth. In the second quarter, we unveiled a new ZCITY premium store, offering an enriched user experience with diverse package, including top brand for our strategic partner, creating a robust and diversified offering for user, powered by our cutting-edge technology the ZCITY store offer innovative features such as personalized recommendation, AI-driven discount and real-time transaction tracking, providing users with an unparalleled and seamless shopping experience. The Premium Store enables drive transaction as well as increased gross profit for Treasure Global. We also announced the launch of 10 mini games in ZCITY 3D World, powered by Treasure Global AI Game Creator. We incorporated an AI Power Game Creator within the ZCITY 3D world so that users can customize and play the 10 games, integrated mini games. This strategy move not only enhance the gaming experience for users, but also position ZCITY to assess the rapidly growing $212 billion global gaming market by offering in-game purchases and virtual goods. Our entrance into gaming aligned with our commitment to diversifying our revenue stream. I'm proud to say that our reputation for innovation has been recognized. During the quarter Treasure Global ZCITY received a silver trophy for best e-commerce solution and marketing interactive Asia e-commerce award 2023. The award recognized our commitment to accelerate in the dynamic landscape of digital commerce. Finally, we recently announced that we have entered into strategic alliance with AIO synergy, a pioneering IT services developer company. Through this collaboration, we are focused on reshaping the landscape of AI by working towards the development of next-generation AI solution and developing an exclusive state of the art data center creator specifically for AI application, which will serve as a hub for cutting-edge AI data analytics and the creation of AI-generated human experience. The initial focus of this partnership is on the Malaysian market, where both Treasure Global and AIO synergy are committed to providing transformative AI solution to businesses across our various industries. We expect to capitalize on the Southeast Asian AI market projected growth and leverage the region burgeoning interest and investment in AI. This collaboration not only a milestone for the 2 companies, but it is also a significant step towards fostering innovation and technology accelerate in the Southeast Asian region at an opportune plan. Throughout the first half of our fiscal year 2024, we have demonstrated our commitment to developing innovative products and advancing new market opportunity through strategic partnership. We continue to make progress on our key priority, growing our addressable market and developing innovative new revenue generation opportunity. We have clearly established ourselves as leader in AI e-commerce and continue to release innovative services offering, which are increasing user engagement. I believe this opportunity has positioned Treasure Global to deliver continued growth and innovation and allowed us to pursue higher margin activity. In closing, I am pleased with the progress that we have met on our business strategy, and I am excited about the opportunity ahead for Treasure Global. We continue to prove ourselves as the leading innovator in the region, positioning us to continue add new customers and attract more partner and investor. I believe we are well positioned for the future, and we will continue to innovate and generate more profitable growth. I will now pass the call over to Michael to discuss our financial results in greater detail.

Thank you, Sam, and good morning, everyone. Today, I will review our financial results for the second quarter of fiscal year 2024 ended December 31, 2023, compared to the same period in 2022. For the second quarter, total revenue was $6.7 million compared to $20.4 million for the same period last year. Revenue were down year-over-year as we continue to achieve our focus to growing our higher-margin business channel, including TAZTE as well as new higher-margin offerings for ZCITY’. As we discussed last quarter, TAZTE offering offered higher margin plus increased user engagement and stickiness by providing merchants with the product that they come to rely on for their business needs. As Sam mentioned, we are also focused on growing our ZCITY’s products through our utilization of AI lead to increased revenue at higher margins. We believe these actions will translate into increased revenue and higher margin for the company in the long term. Gross profit for the second quarter of fiscal 2024 was approximately $346,000, up from $234,000 compared to the same period last year, demonstrating that the initiative to grow gross profit that we implemented have already started to work. Our net loss of approximately $1.2 million for the second quarter of fiscal year 2024, compared to approximately $2 million in the second quarter of fiscal year 2023. As of December 31, 2023, our cash balance was approximately $1.2 million, compared to a cash balance of approximately $4.7 million as of December 31, 2022. As Sam mentioned, ZCITY’ had over 2.68 million registered users and over 2,027 registered merchant as of December 31, 2023. The quarterly active user for the quarter ending December 31, 2023, were 156,979, while paid users were down by 64%. A total of $0.58 million transaction were transacted by our registered user over the current quarter. As we have mentioned, we remain laser focused on increasing gross profit and margins. The measures we have introduced so far are already working, and we expect further improvement going forward as we continue to expand TAZTE and add higher-margin solutions for ZCITY. Now I will turn the call back to Sam to highlight our growth strategy.

Thanks, Michael. I'm excited about the opportunity ahead for Treasure Global. We have made significant progress on our business strategy and remain a leading innovator in the region. The success of our growth initiatives has allowed us to add new customers and attract new partner and investor who support our business. We raised fund and retire our convertible notes, putting us on strong footing for the future. I believe we are well positioned for the future and remain focused on achieving profitable growth. As part of this focus over the last five months, you have seen us intentionally move away from our lower-margin solution like our e-voucher products. While this naturally lead us to a decrease in growth of registered users and active user. This move strategically allows us to reserve more working capital so that we can invest in developing our TAZTE, smart food and beverage system. Our one-stop solution for food and beverage outlet and in our ZCITY’ solution that utilize AI, allowing us to leverage this technology to capture higher margin. As we move through fiscal 2024, you will see us continue to innovate and develop new products and services with a focus on solutions that will generate more profitable growth. Thank you again to everyone for joining us on today's call and for your continued support. This concludes our prepared remarks. I will now ask the operator to close the line. Thank you, and have a great day.

Thank you for joining today. I will now close the line.

Good day, everyone, and welcome to Treasure Global Inc.'s First Quarter of Fiscal Year 2024 Results Conference Call. [Operator Instructions] This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of TGL's website and will remain posted there for the next 30 days. I will now hand over -- hand the call over to Sophia Bashford, Senior Account Director, Investor Relations at KCSA for introductions and the reading of the safe harbor statement. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Treasure Global's First Quarter Fiscal 2024 Results Conference Call. With us on today's call are Sam Teo, Chief Executive Officer; Michael Chan, Chief Financial Officer; and Jeremy Roberts, Independent Director. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from Treasure Global's management made within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities and Exchange Act of 1934 as amended, concerning future events. Words such as may, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. These 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 Form 10-K for the year ended June 30, 2023, and subsequent filings filed with the SEC. Copies of this document are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements through revisions or changes after the date of this call, except as required by law. Now it is my pleasure to introduce Sam Teo, CEO of TGL. Sam, please go ahead.

Thanks, Sophia, and thank you, everyone, for joining us today for our First Quarter of Fiscal 2024 Earnings Conference Call for the period ended September 30, 2023. I'm pleased to speak to you today to provide an update on Treasure Global business before covering our first quarter operational highlights. I want to discuss some of the exciting recent innovation we have announced to our key revenue stream as well as new market opportunity post quarter end, which we are confident will drive revenue and build value for shareholders. We have continued to prove our capability as a dynamic technology solutions company that is able to follow shift in consumer demand to ensure we are in [indiscernible] with recent market trends, helping to further drive market share. Firstly, our [indiscernible] of the ZCITY app, a unique digital ecosystem that transform and simplify the e-payment experience for consumer, while also allowing them to earn reward. In October, we announced the introduction of an artificial intelligent robot through acquisition of AI technology of Tencent. The robot can contact [ extended ] our live commerce section on TikTok with users of our ZCITY app and can demonstrate products and services in real time on the TikTok platform. This innovative approach to marketing not only capture the attention of the TikTok community, but also create a dynamic and immersive shopping experience for users. The robot can answer query, provide product [indiscernible] and offer personalized recommendation, ensuring that every customer interaction is paired to that mix. It's ability to operate for extended hour on TikTok made it a game changer in the live commerce arena, allowing for unparalleled reach and engagement. We believe this development will not only drive significant revenue growth for ZCITY but also set new standards in the live commerce industry. TGL, [ will ] TikTok Live Commerce as a significant opportunity to diversify our revenue stream and showcase product on ZCITY in an innovative and engaging manner. TikTok status as the world highest traffic live commerce platform, make it the idea stage for ZCITY to unveil this groundbreaking technology. With millions of active user daily. TikTok provide an incomparable platform to showcase ZCITY product and services, reaching a global audience like never before. We also recently announced the launch of a merchant AI engine for ZCITY that can tell a highly personalized e-voucher deal for user, collaborating with Boost, the regional full-spectrum fintech arm of Axiata. Treasure Global will leverage Boost's expensive network of over 600,000 merchant spending diverse industry. The AI engine will redefine ZCITY offering of e-voucher deal by creating and deploying super deal e-voucher directly within the ZCITY app, within the ZCITY user community. The e-voucher deal will undergo a sophisticated personalization process, ensuring there is [indiscernible] with the specific user that is being targeted. This will drive ZCITY user base growth significantly and spread presence in the region while generating anticipated revenue growth. This personalization will draw from user behavior, spending pattern, preferences and transaction history, setting a new center for targeted marketing and value delivery. Furthermore, the rich data insights derived from user interaction and preferences will empower Treasure Global to further optimize its offering, driving additional revenue through targeted marketing campaigns and expanded merchant partnership. Next, for our second period, TAZTE. In October, we released TAZTE 2.0, which is an upgrade to our transformational digital food and beverage management system. TAZTE provide merchants with a one-stop management and automated solution to digitalize their businesses, allowing food and. [Audio Gap] particular. We believe TAZTE provide a significant opportunity to drive further margin and profit growth for Treasure Global, which is a major focus for us. TAZTE will increase user stickiness and engagement. As the merchant, increase become reliant on the system for their business needs. This upgrade is focused on increasing functionality on both the merchant and customer side. Treasure Global has been focused on expanding TAZTE throughout Malaysia and also to new markets which we are confident 2.0 will have to do. The additional functionality will provide a complete solution offering, including merchant supply chain management and upstream purchasing, which we expect to attract merchants to the platform. It will also provide a more user-friendly interface for customer and merchant in a larger consolidated version. Thirdly, through our strategy to become a master franchisor, Treasure Global and to become the largest food and beverage chain, without owning any physical brick-and-mortar outlets. Under the subsidiary named Foodlink, we will manage brand loyalty and related intellectual property through lease, ownership or joint venture agreement with brands that we secure partnership with. Just last week, we announced that Abe Yus, a popular Malaysia food and beverage business under our umbrella of brands, is expanding its supply plan to distribute its best-selling curry puffs to the world's largest convenience store. This marked a significant milestone in diversifying the group product offering channels and extending its distribution reach. The first phase of expansion will focus on supplying the high selling curry puffs to 250 convenience stores in Malaysia. Subsequent phase, we encompass additional store location and introduce more products, signifying notable expansion into the food and beverage market, stepping into a new revenue stream through the extensive level of convenience store. To the brand we are acquiring into Foodlink, we will also provide food and beverage consulting, including market and product optimization as well as supply chain monetization. This unique business model allow Treasure Global to establish synergy with our technology solution, deepening our position in the food and beverage industry in Southeast Asia. Now we can be strategically grow our [indiscernible] user base as we adopt it into new restaurants. Additionally, we are securing a new revenue stream from monthly licensing fee and [ stock profit ]. And lastly, in a complementary move, we are unveiled a significant development this month that will help grow further into the new market of health and wellness. We announced a partnership with Malaysia leading Healthcare Group, UCSI Hospital, to promote the Malaysian Wellness Healthcare Tourism Program, ZCITY’s enogy, an e-commerce provider of health and wellness products are available in our ZCITY app, will spearhead health tourism and stem cell therapy with UCSI Hospital in the Indonesian, Hong Kong and China markets. We believe that this partnership will support additional revenue growth from new marketing and strategy alliances within the wellness tourism industry. This partnership will deliver a substantial new revenue stream from wellness healthcare tourism package and commission earned on health screening, exclusive sales and the upselling of enogy health care product and [indiscernible] stem cell therapy offering that Treasure Global will earn a commission on. Treasure Global expect a projected 100% overall gross profit growth every month from this partnership. As I have discussed above, we are consistently developing innovative products that complement our existing propriety offering, ZCITY and TAZTE, as well opening up new market opportunity. In particular, we have cemented our leadership position in the AI-driven e-commerce space with our major business peers as well as new market opportunity. We strongly believe we are well positioned to deliver value, innovation and growth. I would like to discuss the operational highlight in the first quarter of 2024, which show how we are executing upon our strategy plan and further growing our user base and addressable market size. Presently, the number of ZCITY user has further growth to over 2.66 million as for November 6, 2023. In the first quarter, we successfully integrated AI technology into our ZCITY app with a user-friendly chatbot, powered by our data analytics engine and ChatGPT. The next gen was on the light chatbot assistant, which we have named Jojo, went live in August for ZCITY user. Jojo uses AI and deep learning to track user personal preferences to recommend idea promotion and products for them. This allows ZCITY to offer consumer a more personalized and targeted reward experience. The enhanced functionality is expected to drive user retention and attract new customer to further grow revenue, while at the same time allowing merchants to capture expanded data on user behavior and spending pattern. During the beta phase, we gained a significant insight through market testing, showcasing strong user engagement and interest in the new features. This collected data will get us in refining strategy, improving user experience and providing merchant with variable insight into user behavior and spending pattern. During the quarter, we announced the company has signed a letter of intent to form an e-commerce venture in Indonesia with Harmoni Bagi Dunia or HBD. Under the agreement, Treasure Global will hold a 70% major stake in HBD and Treasure Global will grant HBD exclusive right to promote and operate ZCITY in Indonesia. The LOI marked the significant milestone of our expansion into the Indonesian market, aligning with our strategy to grow internationally with innovative local partner. The venture will provide Treasure Global and its proprietary app, ZCITY, with access to an extensive network of 200 merchants and data of 5 million users within the several industry in Indonesia. The Indonesian market has a substantial internet user base of 213 million out of a population of 276 million, providing a large opportunity for growing our total addressable market. In July, we announced a partnership agreement with VCI Global to develop an AI-powered travel platform as a new offering for traveler in Malaysia. Treasure Global and VCI Global will share ownership and profit from this collaboration, positioning the company to tap into the post pandemic travel bump, expected to contribute significance to the Malaysian digital economy by 2025. The offering will provide a high-tech portable concierge that can suggest real-time recommendation for travel, for flight, hotel and car rentals. It also offer advanced translation function to break down language barrier. During the quarter, Treasure Global signed an agreement with the Malaysia Retail Chain Association for TAZTE to become its exclusive partner as the recommended digital food and beverage management solution to its member in Malaysia. TAZTE is now the MRCA-preferred food and beverage system of choice, and it is recommended to its member to subscribe as TAZTE merchants. The MRCA has over 500 merchant members across Malaysia, representing more than 40 outlet, our second proprietary solution, which we were proud to launch during fiscal 2023. TAZTE provide an opportunity for Treasure Global to generate higher gross margin through increasing user engagement and stickiness. TAZTE is a product that merchant has come to realize for their business needs, making them less likely to stop using TAZTE . TAZTE continues to receive positive feedback from user as well as growing the number of merchants and users. In particular, observational feedback suggest that merchants who have adopted TAZTE has seen an increase in transaction and basket ratio as well as an increase in user retention and stickiness. TAZTE continued to enhance user engagement on the platform, achieving remarkable milestone in the current quarter. TAZTE has achieved a notable 1.5x increase in the gross merchandise value, or GMV, and continue to have a 2x growth in total transaction and 2.5x increase in monthly transaction user. This showcase the platform sustainably in driving both user activity, transaction volume and GMV. Next, we have also continued to secure several partnership during the first quarter, which are centered to our growth and strategy -- marketing strategy. In July, we announced a partnership with the Ministry of Domestic Trade and Cost of Living for the launch of the Package Rahmah program, which offer various financial saving initiative, reducing the cost of living for a lower income group, including the youth and university student. For the program, ZCITY offer package of living essential e-voucher on the app for either such as petrol, food and bills. The initiative demonstrated ZCITY leading digital ecosystem and attract new users, while also supporting this important social program. And finally in September, we collaborated with the Borderland Music Festival in Sarawak to offer the first cashless and ticketing platform-powered music festival in Malaysia, powered through the ZCITY app. Treasure Global also charge fees for the each ticket sold, providing a new revenue generation opportunity for the company as a result of the festival, ZCITY will see significant exposure during the [indiscernible] as a leader in ticketing solution as well as penetrating the new market of [indiscernible]. To sum up. We are pleased with the progress that we have met recently to progress our strategic propriety, grow our addressable market and develop innovative new revenue generation opportunity. We have established our leadership position in the area of AI e-commerce and continue to release innovative service offering, which are increasing user and [ cash ]. I will now pass the call over to Michael to discuss our financial results in greater detail.

Thank you, Sam, and good morning, everyone. Today, I will review our financial results for the first quarter of fiscal year 2024 ended September 30, 2023 compared to the same period in 2022. For the first quarter, total revenue of $13.5 million compared to $15.6 million for the same period last year. Revenue were down year-over-year as we shifted our focus to growing our higher-margin business channel such as TAZTE. While ZCITY revenue stream are historically low margin, we are focused on growing TAZTE, which as Sam has explained, offer a new avenue for growth with a stronger margin. In addition to focusing on higher-margin revenue channel, we also intend to increase user engagement and stickiness by providing our user with new products and in the case of TAZTE, a product that merchants come to rely on for their business needs. We believe this objective will lead to increased revenue growth for the company in the long term. Gross profit for the first quarter of fiscal 2024 was approximately $163,000, up from $37,000 compared to the same period last year, demonstrating that the initiative to grow gross profit that we implemented have already started to work. Our net loss of approximately $2.1 million for the first quarter of fiscal year 2024 compared to approximately $3.7 million in the first quarter of fiscal year 2023. As of September 30, 2023, our cash balance was approximately $2.6 million compared to a cash balance of approximately $7 million as of September 30, 2022. As Sam mentioned, ZCITY have over 2.66 million registered users and over 2,026 registered merchants as of November 6, 2023. Quarterly active user for the quarter ending September 30, 2023 were 187,180 while paid users were up by 4.7%. The total of 1.33 million transactions were transacted by our registered users over the current quarter and quarter-to-date of fiscal year 2024, with paid user transacting 3 or more times in the quarter. As we have mentioned, we remain laser focused on increasing gross profit and margin. The measure we have introduced so far are already working, and we expect further improvement going forward as we continue to roll out this and other revenue-generating initiatives. Now I will turn the call back to Sam to highlight our growth strategy.

Thanks, Michael. Treasure Global is pleased with the progress we have achieved over recent quarter to grow our business domestically. We are now focused on further expansion, looking at executing on the next stage of our growth plan of moving into Indonesia and Southeast Asia more broadly. As I have discussed, we have taken several steps to develop new products to further expand our addressable market segment as well as enter new markets altogether. Travel and health and wellness are examples of sectors that we have recently launched partnership venture into. Our domestic market of Malaysia has a growing population and solid near-term economic growth outlook. Our broader expansion opportunity are significant, which include entry into other Southeast Asian markets such as Indonesia, Thailand, Vietnam and Japan with much larger population and similar demographics. Particularly Indonesia, which we have already made headway into penetrating, has 10x the population of Malaysia. Treasure Global continue to develop innovative offerings to complement our core platform, which have cemented Treasure Global as a leader in the AI-driven e-commerce space. We are also focused on growing our gross profit through fiscal 2024 by increasing user engagement through new products and services development, which we are confident will generate higher profit and margin. Thank you again to everyone for joining us on today's call, and thank you, particularly to our investors for their continued support. We look forward to providing further updates soon. This concludes our prepared remarks. I will now ask the operator to close line. Thank you, and have a great day.

Thank you. So ladies and gentlemen, thank you for joining us today. I will now close the lines.