Global Engine Group Holding Limited Announces Financial Results for Fiscal Year 2024
Global Engine Group (GLE) reported financial results for fiscal year 2024, showing a 10.7% revenue increase to HKD49.5 million (US$6.3 million). The growth was primarily driven by cloud and data center managed services in Malaysia and Taiwan, which saw a 75.5% increase. However, telecommunications services revenue declined 61.9%. Gross profit decreased slightly by 0.8% to HKD7.3 million, with margin declining to 14.8%. Net income decreased 2.6% to HKD2.6 million. The company recently completed its IPO, raising total gross proceeds of US$9.2 million including the full exercise of the over-allotment option.
Global Engine Group (GLE) ha riportato i risultati finanziari per l'anno fiscale 2024, evidenziando un aumento dei ricavi del 10,7% a HKD49,5 milioni (US$6,3 milioni). La crescita è stata principalmente trainata dai servizi gestiti nel cloud e nei data center in Malesia e Taiwan, che hanno registrato un incremento del 75,5%. Tuttavia, i ricavi dei servizi di telecomunicazione sono diminuiti del 61,9%. Il profitto lordo è leggermente calato dello 0,8% a HKD7,3 milioni, con un margine in diminuzione al 14,8%. Il reddito netto è diminuito del 2,6% a HKD2,6 milioni. L'azienda ha recentemente completato la sua IPO, raccogliendo un totale di proventi lordi di US$9,2 milioni, incluso l'esercizio completo dell'opzione di over-allotment.
Global Engine Group (GLE) reportó los resultados financieros para el año fiscal 2024, mostrando un aumento de ingresos del 10.7% a HKD49.5 millones (US$6.3 millones). El crecimiento fue impulsado principalmente por los servicios gestionados de nube y centro de datos en Malasia y Taiwán, que experimentaron un incremento del 75.5%. Sin embargo, los ingresos por servicios de telecomunicaciones disminuyeron un 61.9%. El beneficio bruto disminuyó ligeramente un 0.8% a HKD7.3 millones, con un margen que cayó al 14.8%. El ingreso neto disminuyó un 2.6% a HKD2.6 millones. La compañía completó recientemente su IPO, recaudando un total de ingresos brutos de US$9.2 millones incluido el ejercicio completo de la opción de sobreasignación.
글로벌 엔진 그룹 (GLE)이 2024 회계연도 재무 결과를 보고하였으며, 수익 10.7% 증가로 HKD49.5백만 (US$6.3백만)을 기록했습니다. 성장은 주로 말레이시아와 대만의 클라우드 및 데이터 센터 관리 서비스에서 촉진되었으며, 75.5%의 증가를 보였습니다. 그러나, 통신 서비스 수익은 61.9% 감소했습니다. 총 이익은 HKD7.3백만으로 0.8% 소폭 감소하였고, 마진은 14.8%로 하락했습니다. 순이익은 HKD2.6백만으로 2.6% 감소했습니다. 회사는 최근 IPO를 완료하여, 전체 추가 할당 옵션의 완전한 실행을 포함하여 총 US$9.2백만의 총 매출을 달성했습니다.
Global Engine Group (GLE) a rapporté les résultats financiers pour l'exercice 2024, montrant une augmentation des revenus de 10,7% à HKD49,5 millions (US$6,3 millions). La croissance a été principalement entraînée par les services gérés de cloud et de centre de données en Malaisie et à Taïwan, qui ont connu une augmentation de 75,5%. Cependant, les revenus des services de télécommunications ont diminué de 61,9%. Le bénéfice brut a légèrement diminué de 0,8% pour atteindre HKD7,3 millions, avec une marge en baisse à 14,8%. Le bénéfice net a diminué de 2,6% à HKD2,6 millions. L'entreprise a récemment complété son introduction en bourse, levant un total de produits bruts de US$9,2 millions, y compris l'exercice intégral de l'option de surallocation.
Global Engine Group (GLE) meldete die Finanzergebnisse für das Geschäftsjahr 2024 und verzeichnete einen Umsatzanstieg von 10,7% auf HKD49,5 Millionen (US$6,3 Millionen). Das Wachstum wurde hauptsächlich durch Cloud- und Datenzentrum-Managed Services in Malaysia und Taiwan angetrieben, die einen Anstieg von 75,5% verzeichneten. Die Einnahmen aus Telekommunikationsdiensten hingegen sanken um 61,9%. Bruttogewinn fiel leicht um 0,8% auf HKD7,3 Millionen, wobei die Marge auf 14,8% zurückging. Nettogewinn sank um 2,6% auf HKD2,6 Millionen. Das Unternehmen hat kürzlich seinen Börsengang (IPO) abgeschlossen und insgesamt Bruttoerlöse von US$9,2 Millionen einschließlich der vollständigen Ausübung der Überzeichnungsoption erzielt.
- Revenue increased 10.7% to HKD49.5 million
- Cloud services revenue grew 75.5% to HKD41.4 million
- Successfully completed IPO raising US$9.2 million gross proceeds
- Net income decreased 2.6% to HKD2.6 million
- Gross profit margin declined from 16.5% to 14.8%
- Telecommunications services revenue dropped 61.9%
- General and administrative expenses increased 5.5%
Insights
The financial results reveal mixed performance. While revenue grew by
The recent IPO raising
The company's strategic shift toward cloud and data center managed services aligns with industry trends, but faces intense competition from established players. The
The focus on AI, automation and advanced analytics for service delivery enhancement is important but requires substantial investment. Given the company's relatively small size, successful execution of these initiatives while maintaining profitability will be challenging. The Southeast Asian market expansion strategy offers growth potential but demands significant resources for market penetration and partnership building.
HONG KONG, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Global Engine Group Holding Limited (the “Company” or “GLE”), a Hong Kong-headquartered integrated solutions provider in information communication technologies (“ICT”), today announced the financial results for the fiscal year ended June 30, 2024.
Key Fiscal Year 2024 Financial Metrics:
- Revenue increased by HKD4.8 million, or
10.7% , to HKD49.5 million (US$6.3 million ) for the year ended June 30, 2024 from HKD44.7 million for the year ended June 30, 2023. - Gross profit decreased slightly by
0.8% to HKD7.3 million (US$0.9 million ) in 2024 from HKD7.4 million in 2023. Gross margin also declined by 1.7 percentage points year-on-year from16.5% in 2023 to14.8% in 2024. - Net income was HKD2.6 million (US
$0.3 million ) for the year ended June 30, 2024, decreased by2.6% from HKD2.7 million in 2023.
Mr. Andrew Lee, CEO, Chairman and Director of the Company commented: “In fiscal year 2024, our Company achieved notable revenue growth, increasing by
“Our cost of revenues increased to HKD42.1 million (US
“Looking ahead, we are implementing several strategic initiatives to drive further growth and enhance our competitive edge. We plan to explore new markets across Southeast Asia, focusing on regions with rising demand for cloud and data center managed services. Investments in technology and innovation will be prioritized, enabling us to enhance service delivery through advanced data analytics, artificial intelligence, and automation.”
“To support our growth ambitions, we aim to strengthen partnerships with leading technology providers and local businesses, diversifying our service portfolio with tailored managed services and consulting offerings. Additionally, we will intensify our marketing efforts to enhance brand awareness and position ourselves as a leader in cloud solutions. Recognizing that our workforce is key to success, we will enhance talent development programs to attract and retain top talent. Through these initiatives, we are confident in our ability to drive sustainable growth and deliver substantial value to our stakeholders in the coming years.”
Financial Results for Fiscal 2024
Revenues
Revenue rose by HKD4.8 million, or
The company provides cloud and data center managed services, including business planning, technical consulting, and managed services like remote network support and monitoring. The growth in these services was driven by increased revenue in Malaysia and Taiwan.
However, revenue from telecommunications, consultancy and related services declined due to the completion of specific projects in Hong Kong in the previous fiscal year, with no similar projects undertaken for the year ended June 30, 2024.
The following table presented the Company’s revenues disaggregated by service lines for the years ended June 30, 2024 and 2023:
| For the years ended June 30 | |||||||||||
| In million HKD, except percentage change | 2023 | 2024 | Change | Change | |||||||
| Revenues | HKD | HKD | HKD | % | |||||||
| Cloud services and data center managed services | |||||||||||
| Telecommunication, consultancy and related services | ( | (61.9)% | |||||||||
| Total revenues | |||||||||||
Cost of Revenues
Cost of revenues includes expenses for consultants, employee compensation, and other third-party costs related to revenue-generating activities. For the year ended June 30, 2024, cost of revenues totaled HKD42.1 million (US
Gross Profit
Consequently, gross profit for the year ended June 30, 2024, was HKD7.3 million (US
General and administrative expenses
General and administrative expenses consisted primarily of motor car expenses, IT expenses, depreciation, legal and professional fees, accounting fee, director’s fee, salaries and employee benefits and others.
General and administrative expenses rose by
Net income
As a result of the above discussed, the Company recorded a net income of HKD2.6 million (US
Recent development:
On September 23, 2024, the Company completed its initial public offering and raised gross proceeds of US
On October 18, 2024, the Company closed the sale of an additional 300,000 ordinary shares, pursuant to the full exercise of the underwriter’s over-allotment option granted in connection with its initial public offering. As a result, it has raised gross proceeds of US
About Global Engine Group Holding Limited
Global Engine Group Holding Limited is an integrated solutions provider that operates via a wholly-owned subsidiary incorporated in Hong Kong to deliver (i) ICT solution services which include the cloud platform deployment, IT system design and configuration, maintenance, data center colocation and cloud services; (ii) technical services which include the technical development, support, and outsourcing services for data center and cloud computing infrastructure, mobility and fixed network communications, as well as IoT projects; and (iii) project management services which enhances productivity and collaboration management and enables successful implementations and adoption of solutions for customers, to drive business outcomes and innovation for its customers. GLE’s target customer groups include: (i) small to medium-sized telecom operators and ICT service providers seeking expansion in Hong Kong and the South East Asian market; (ii) data center and cloud computing services providers; and (iii) Internet-of-things (“IoT”) solutions providers. For more information, please visit: www.globalengine.com.hk; ir.globalengine.com.hk/.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These forward-looking statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
| GLOBAL ENGINE GROUP HOLDING LIMITED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HKD | HKD | US$ | ||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash | $ | 6,245,104 | $ | 8,406,293 | $ | 1,076,584 | ||||||
| Accounts receivable, net | 8,716,167 | 17,130,587 | 2,193,894 | |||||||||
| Prepayment and deposits | 202,538 | 345,756 | 44,281 | |||||||||
| Prepaid tax | 722,140 | 168,199 | 21,541 | |||||||||
| Total current assets | 15,885,949 | 26,050,835 | 3,336,300 | |||||||||
| Property and equipment, net | 1,003,038 | 677,094 | 86,715 | |||||||||
| Right-of-use assets | 353,807 | - | - | |||||||||
| Deferred IPO costs | 4,226,062 | 5,587,622 | 715,600 | |||||||||
| Total non-current assets | 5,582,907 | 6,264,716 | 802,315 | |||||||||
| Total assets | $ | 21,468,856 | $ | 32,315,551 | $ | 4,138,615 | ||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Current liabilities | ||||||||||||
| Account payables | $ | 5,584,927 | $ | 12,838,317 | $ | 1,644,189 | ||||||
| Accrued expenses and other payables | 12,000 | 3,542,000 | 453,620 | |||||||||
| Amount due to a related party | 18,623 | 2,422 | 310 | |||||||||
| Amount due to a director | 32,451 | 39,591 | 5,070 | |||||||||
| Operating lease obligation, current portion | 370,181 | - | - | |||||||||
| Contract liabilities | 3,892,087 | 1,739,130 | 222,728 | |||||||||
| Total current liabilities | 9,910,269 | 18,161,460 | 2,325,917 | |||||||||
| Total liabilities | 9,910,269 | 18,161,460 | 2,325,917 | |||||||||
| Commitment and contingencies | ||||||||||||
| Shareholders’ equity | ||||||||||||
| Ordinary shares, US | 7,766 | 7,766 | 1,000 | |||||||||
| Shares subscription receivable | (7,666 | ) | (7,666 | ) | (987 | ) | ||||||
| Retained earnings | 11,558,487 | 14,153,991 | 1,812,685 | |||||||||
| Total shareholders’ equity | 11,558,587 | 14,154,091 | 1,812,698 | |||||||||
| Total liabilities and shareholders’ equity | $ | 21,468,856 | $ | 32,315,551 | $ | 4,138,615 | ||||||
* Giving retroactive effect to the 16,000-for-1 share split effected on October 18, 2022.
| GLOBAL ENGINE GROUP HOLDING LIMITED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| For the years ended June 30, | ||||||||||||||||
| 2022 | 2023 | 2024 | 2024 | |||||||||||||
| HKD | HKD | HKD | US$ | |||||||||||||
| Revenues | ||||||||||||||||
| Cloud services and data center managed services | ||||||||||||||||
| Third parties’ revenue | $ | 35,636,864 | $ | 15,112,472 | $ | 39,604,258 | $ | 5,072,072 | ||||||||
| Related parties’ revenue | 11,975,000 | 8,475,000 | 1,800,000 | 230,524 | ||||||||||||
| Telecommunication, consultancy and related services | ||||||||||||||||
| Third parties’ revenue | 4,507,677 | 21,096,677 | 8,046,176 | 1,030,464 | ||||||||||||
| Related parties’ revenue | 2,500,000 | - | - | - | ||||||||||||
| Total revenues | 54,619,541 | 44,684,149 | 49,450,434 | 6,333,060 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Third parties’ cost of revenues | 37,694,232 | 36,097,137 | 40,980,168 | 5,248,283 | ||||||||||||
| Related parties’ cost of revenues | 2,991,456 | 1,198,545 | 1,140,000 | 145,998 | ||||||||||||
| 40,685,688 | 37,295,682 | 42,120,168 | 5,394,281 | |||||||||||||
| Gross profit | 13,933,853 | 7,388,467 | 7,330,266 | 938,779 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative expenses | 4,468,484 | 4,244,637 | 4,480,135 | 573,766 | ||||||||||||
| Total operating expenses | 4,468,484 | 4,244,637 | 4,480,135 | 573,766 | ||||||||||||
| Income from operations | 9,465,369 | 3,143,830 | 2,850,131 | 365,013 | ||||||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense | (1,550 | ) | (34,551 | ) | (10,367 | ) | (1,328 | ) | ||||||||
| Other income | 39,974 | 23,403 | 52,807 | 6,763 | ||||||||||||
| Total other income (expenses), net | 38,424 | (11,148 | ) | 42,440 | 5,435 | |||||||||||
| Income before income tax | 9,503,793 | 3,132,682 | 2,892,571 | 370,448 | ||||||||||||
| Income tax expense | 1,342,379 | 467,592 | 297,067 | 38,045 | ||||||||||||
| Net income | $ | 8,161,414 | $ | 2,665,090 | $ | 2,595,504 | $ | 332,403 | ||||||||
| Weighted average number of ordinary shares | ||||||||||||||||
| Basic and diluted* | 16,000,000 | 16,000,000 | 16,000,000 | 16,000,000 | ||||||||||||
| Earnings per share | ||||||||||||||||
| Basic and diluted* | $ | 0.510 | $ | 0.167 | $ | 0.162 | $ | 0.021 | ||||||||
* Giving retroactive effect to the 16,000-for-1 share split effected on October 18, 2022.
| GLOBAL ENGINE GROUP HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| For the years ended June 30, | ||||||||||||||||
| 2022 | 2023 | 2024 | 2024 | |||||||||||||
| HKD | HKD | HKD | US$ | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income | $ | 8,161,414 | $ | 2,665,090 | $ | 2,595,504 | $ | 332,403 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Depreciation of property and equipment | 188,753 | 326,261 | 325,944 | 41,743 | ||||||||||||
| Amortization of right-of-use assets | 325,651 | 402,063 | 353,807 | 45,312 | ||||||||||||
| Provision for expected credit losses | - | - | 99,775 | 12,778 | ||||||||||||
| Deferred offering costs | - | 277,759 | - | - | ||||||||||||
| Change in operation assets and liabilities | ||||||||||||||||
| Accounts receivable | 1,957,627 | (7,539,058 | ) | (8,514,195 | ) | (1,090,403 | ) | |||||||||
| Prepayment and deposits | (3,317,058 | ) | 3,556,643 | (143,218 | ) | (18,342 | ) | |||||||||
| Contract assets | 955,105 | - | - | - | ||||||||||||
| Prepaid tax | - | (722,140 | ) | 553,941 | 70,943 | |||||||||||
| Account payables | 1,147,675 | 4,437,252 | 7,253,390 | 928,933 | ||||||||||||
| Income tax payable | (1,347,483 | ) | (242,225 | ) | - | - | ||||||||||
| Contract liabilities | (637,789 | ) | (2,106,124 | ) | (2,152,957 | ) | (275,727 | ) | ||||||||
| Operating lease obligation | (326,355 | ) | (384,985 | ) | (370,181 | ) | (47,409 | ) | ||||||||
| Net cash provided by operating activities | 7,107,540 | 670,536 | 1,810 | 231 | ||||||||||||
| Cash flow from investing activities: | ||||||||||||||||
| Purchases of property and equipment | (1,483,088 | ) | (28,397 | ) | - | - | ||||||||||
| Net cash used in investing activities | (1,483,088 | ) | (28,397 | ) | - | - | ||||||||||
| Cash flow from financing activities: | ||||||||||||||||
| Payments of IPO costs | (3,204,829 | ) | (1,298,992 | ) | (1,361,560 | ) | (174,372 | ) | ||||||||
| Proceeds (repayment) of amount due to a director | (359,910 | ) | (158,277 | ) | 7,140 | 914 | ||||||||||
| Proceeds (repayment) of amount due from/to related parties | 3,706,968 | 1,049,199 | (16,201 | ) | (2,075 | ) | ||||||||||
| Collection of payment on behalf of a customer | - | - | 3,530,000 | 452,083 | ||||||||||||
| Dividend payments | (1,500,000 | ) | - | - | - | |||||||||||
| Net cash (used in) provided by financing activities | (1,357,771 | ) | (408,070 | ) | 2,159,379 | 276,550 | ||||||||||
| Change in cash | 4,266,681 | 234,069 | 2,161,189 | 276,781 | ||||||||||||
| Cash, beginning of the year | 1,744,354 | 6,011,035 | 6,245,104 | 799,803 | ||||||||||||
| Cash, end of the year | $ | 6,011,035 | $ | 6,245,104 | $ | 8,406,293 | $ | 1,076,584 | ||||||||
| Supplemental cash flow information | ||||||||||||||||
| Cash paid for income tax | $ | 2,689,863 | $ | 1,431,957 | $ | - | $ | - | ||||||||
| Cash received from tax refund | $ | - | $ | - | $ | 256,874 | $ | 32,898 | ||||||||
| Cash paid for interest expense | $ | 1,550 | $ | 5,535 | $ | 1,049 | $ | 134 | ||||||||
| Non-cash activities: | ||||||||||||||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 1,084,738 | $ | - | $ | - | $ | - | ||||||||
FAQ
What was GLE's revenue growth in fiscal year 2024?
How much did GLE raise in its IPO in September 2024?
What was GLE's net income for fiscal year 2024?
