YY Group Holding Limited’s Revenue Hits US$41M in 2024, Driven by Demand and Market Expansion

Rhea-AI Summary

YY Group Holding (NASDAQ: YYGH) reported its financial results for FY2024, achieving revenue of US$41.1 million and a gross profit of US$5.26 million, up 44% year-on-year. The company completed its IPO in April 2024, raising US$4.5 million in gross proceeds.

The company recorded an operating loss of US$4.14 million, primarily attributed to a one-time, non-cash share-based compensation expense of US$5.16 million related to the 2023 Share Incentive Plan. YY Group maintained a working capital position of US$5.5 million, with cash balances of US$836,907 and total assets of US$15.4 million.

Key developments include the launch of YY Smart Tech, focusing on IoT, AI, and software solutions, along with expanded presence across Southeast Asia, Europe, and Middle Eastern markets. The company secured new contracts in hospitality, logistics, and healthcare sectors.

Positive

• 44% year-on-year increase in gross profit to US$5.26 million
• Successful IPO raising US$4.5 million in gross proceeds
• Total assets increased to US$15.4 million from US$10.7 million year earlier
• Positive working capital position of US$5.5 million
• Geographic expansion with new contract wins in multiple sectors

Negative

• Operating loss of US$4.14 million
• Low cash balance of US$836,907 relative to operations
• One-time share-based compensation expense of US$5.16 million impacting profitability

Insights

Financial Analyst

YY Group's financial results reveal a revenue of $41.1 million for 2024, showcasing significant operational momentum. The 44% year-over-year increase in gross profit to $5.26 million demonstrates improving operational efficiency despite maintaining stable margins.

The reported operating loss of $4.14 million requires context - it's primarily attributed to a one-time, non-cash share-based compensation expense of $5.16 million related to their IPO. Excluding this accounting adjustment, their underlying operations appear stable.

Their balance sheet shows mixed signals. While total assets increased substantially from $10.7 million to $15.4 million and working capital sits at a positive $5.5 million, the cash position of $836,907 is relatively thin for a public company with their operational scale. This cash-to-revenue ratio of approximately 2% could create potential liquidity constraints if growth initiatives require significant capital outlay beyond their current resources.

The successful $4.5 million IPO provides some financial runway, but their capital allocation strategy will be crucial for sustainable growth given their current cash position. The company hasn't disclosed revenue growth percentages, making it difficult to assess momentum, although expansion into new markets suggests positive trajectory.

Business Strategy Consultant

YY Group is executing a three-pronged growth strategy focused on geographic expansion, technology development, and service diversification. Their establishment of YY Smart Tech demonstrates commitment to technology-driven services, leveraging IoT and AI to enhance their workforce solutions - a critical differentiator in the highly competitive facility management sector.

Their market expansion strategy appears methodical, with particular emphasis on Southeast Asia, Europe, and Middle Eastern markets. This regional diversification reduces dependency on any single market while capitalizing on cross-border synergies. The company has strategically focused on high-value verticals including hospitality, logistics, and healthcare - sectors with consistent facility management needs and higher contract values.

The integration of technology into traditional facility management services represents an important evolution, potentially transforming a traditionally low-margin business into a higher-margin technology-enabled service model. However, the cash reserves raise questions about their ability to fund substantial R&D initiatives while simultaneously pursuing geographic expansion.

Their IPO structure, which included significant equity issuance to employees and executives, demonstrates commitment to talent retention while preserving cash. This approach aligns with long-term growth objectives but may dilute shareholder value if not accompanied by proportional financial performance. For a technology-oriented workforce solutions provider, achieving sustainable competitive advantage will require balancing growth investments with financial discipline.

Singapore, April 08, 2025 (GLOBE NEWSWIRE) -- YY Group Holding Limited (NASDAQ: YYGH) (“YY Group”, “YYGH”, or the “Company”), a leading provider of innovative on-demand workforce solutions and integrated facility management (IFM), today reported promising financial results for the full year ended December 31, 2024, underscoring consistent growth and meeting milestones across key business segments.

Financial Highlights
In 2024, YY Group delivered robust performance across its business segments, reflecting continued execution of strategic priorities and growing demand across key markets.

• Revenue grew to US$41.1 million, driven by the successful scale-up of on-demand workforce solutions across new and existing markets, continued regional expansion, and sustained growth in the Group’s integrated facility management business as a stable core segment.
• Gross profit increased by approximately 44% year-on-year to US$5.26 million, supported by greater business scale and disciplined execution, with gross margins remaining stable.
• In April 2024, the Group completed its initial public offering, raising gross proceeds of US$4.5 million and strengthening its capital base for geographic expansion, technology development, and organizational growth.
• The company recorded an operating loss of US$4.14 million, primarily due to a one-time, non-cash share-based compensation expense of US$5.16 million. This expense, which relates to the 2023 Share Incentive Plan, reflects the issuance of equity awards to employees, executives, and advisors as part of the Company’s IPO and aligns long-term interests with shareholders, without affecting cash flow.

Excluding this item, underlying operational performance remained stable and in line with management expectations. As of December 31, 2024, YY Group maintained a positive working capital position of US$5.5 million, with cash balances of US$836,907 and total assets of US$15.4 million, up from US$10.7 million a year earlier.

Bar chart illustration of YY Group Revenue & Gross Profit

Milestones and Strategic Initiatives in 2024

• Launched YY Smart Tech, a subsidiary focused on accelerating innovation in Internet of Things (IoT), Artificial Intelligence (AI), and software solutions, enabling digital transformation across all service lines.
• Expanded presence across the global market, with particularly strong momentum in Southeast Asia, Europe and Middle Eastern markets. Operational foundations laid over the past two years translated into meaningful revenue growth in 2024.
• YY Group strengthened its regional position through new contract wins in the hospitality, logistics, and healthcare sectors.
  
  

Outlook for 2025
Looking ahead to 2025, YY Group remains committed to driving sustainable growth and operational excellence. Our focus will be on expanding our technology capabilities, increasing our market share in Southeast Asia, and continuing to deliver innovative solutions to our clients.

“2024 was a year of disciplined execution and strategic progress,” said Mike Fu, CEO of YY Group. “As we look ahead, we are committed to deepening our technology leadership, expanding into new geographies, and delivering long-term value for our shareholders and stakeholders.”

The full Annual Report and audited financial statements for FY2024 will be available on YY Group Holding website from April 8, 2025.

About YY Group Holdings Limited:
YY Group Holding Limited (Nasdaq: YYGH) is a Singapore-headquartered, technology-enabled platform providing flexible, scalable workforce solutions and integrated facility management (IFM) services across Asia and beyond. The Group operates through two core verticals: on-demand staffing and IFM, delivering agile, reliable support to industries such as hospitality, logistics, retail, and healthcare.

Leveraging proprietary digital platforms and IoT-driven systems, YY Group enables clients to meet fluctuating labor demands and maintain high-performance environments. In addition to its core operations in Singapore and Malaysia, the Group maintains a growing presence in Southeast Asia, Europe, and the Middle East

Listed on the Nasdaq Capital Market, YY Group is committed to service excellence, operational innovation, and long-term value creation for clients and shareholders.

For more information on the Company, please log on to https://yygroupholding.com/.

Investor Contact

Phua Zhi Yong, Chief Financial Officer, YY Group

jason.phua@yygroupholding.com

Mark Niu, Chief Strategy Officer, YY Group

mark.niu@yygroupholding.com

FAQ

What was YY Group Holdings (YYGH) revenue and gross profit for 2024?

YYGH reported revenue of US$41.1 million and gross profit of US$5.26 million, with gross profit increasing 44% year-on-year.

How much did YYGH raise in their April 2024 IPO?

YYGH raised US$4.5 million in gross proceeds from their initial public offering in April 2024.

What caused YYGH's operating loss in 2024?

The US$4.14 million operating loss was primarily due to a one-time, non-cash share-based compensation expense of US$5.16 million related to the 2023 Share Incentive Plan.

What are YYGH's expansion plans and new initiatives announced in 2024?

YYGH launched YY Smart Tech for IoT and AI solutions, expanded into Southeast Asia, Europe, and Middle Eastern markets, and secured new contracts in hospitality, logistics, and healthcare sectors.

What is YYGH's current financial position as of December 2024?

YYGH has a working capital position of US$5.5 million, cash balances of US$836,907, and total assets of US$15.4 million.