Top Wealth : Announces Financial Results for the First Half of Fiscal Year 2024 Form 6 K

About this update from Top Wealth Group Holding Limited

Top Wealth Group Holding Limited Announces Financial Results for the First Half of Fiscal Year 2024 Top Wealth Group Holding Limited ("TWG" or the "Company") (Nasdaq: TWG) is an offshore holding company incorporated in the Cayman Islands with no material operations of its own. Through its Hong Kong operating subsidiary, the Company engaged in the trading of caviar in Hong Kong. The Company today announced its unaudited financial results for the six months ended June 30, 2024 ("First Half 2024"). First Half of Fiscal Year 2024 Financial Results For the six months ended June 30, 2024 2023 Change USD USD USD % Sales $ 4,398,690 $ 6,966,288 (2,567,598 ) (36.86 ) Cost of sales (2,076,190 ) (4,185,773 ) (2,109,583 ) (50.40 ) Gross profit 2,322,500 2,780,515 (458,015 ) (16.47 ) Other income 88 12 76 633.33 Selling expenses (779,767 ) (64,916 ) (714,851 ) 1,101.19 Administrative expense (2,103,855 ) (895,026 ) (1,208,829 ) 135.06 (Loss) profit before income tax (561,034 ) 1,820,585 (2,381,619 ) (130.82 ) Income tax credit (expense) 92,571 (361,287 ) 453,858 (125.62 ) (Loss) profit and total comprehensive (loss) income for the year (468,463 ) $ 1,459,298 (1,927,761 ) (132.10 ) Revenue Revenue decreased by 36.86% from $6,966,288 for the six months ended June 30, 2023 to $4,398,690 for the six months ended June 30, 2024. The decrease was primarily due to our Christmas promotion in fiscal year 2003 that the revenue decrease in the January to March 2024, 3 months after the 2023 Christmas promotion. Cost of sales Cost of sales decreased by 50.40% from $4,185,773 for the six months ended June 30, 2023 to $2,076,190 for the six months ended June 30, 2024. The decrease ratio was more than the decrease in revenue, indicating a higher gross margin. The increase in gross margin is due to increase in sales price after 2023 Christmas promotion. Selling expense Selling expense increased by 1,101% from $64,916 for the six months ended June 30, 2023 to $779,767 for the six months ended June 30, 2024. The increase was mainly due to increase in advertising expenses and subcontracting charges for promotional events that we promote our caviar brand in the process of IPO. - 1 - Administrative expense Administrative expense increased by 135.06 % from $895,026 for the six months ended June 30, 2023 to $2,103,855 for the six months ended June 30, 2024. The increase was mainly due to increase in listing expenses. Income tax (credit) expense Our income tax changed from $361,287 expense for the six months ended June 30, 2023 to $92,571 credit for the six months ended June 30, 2024. The change was primarily due to an increase in deferred tax asset for the loss during the First Half 2024. Cash Flows Net cash used in operating activities was $6,908,057 in the six months ended June 30, 2024, compared to $631,484 in the six months ended June 30, 2023. The increase was mainly due to increase in prepayments to supplier to secure our supplies of caviar. Net cash provided by financing activities was $ 6,778,691 in the six months ended June 30, 2024, compared to net cash provided by financing activities of $ 594,673 in the six months ended June 30, 2023. This change was primarily due to the receipt of IPO net proceeds. About Top Wealth Group Holding Limited The Company is an offshore holding company incorporated in the Cayman Islands with no material operations of its own. Through its Hong Kong operating subsidiary, the Company engaged in the trading of caviar. For more information, please visit the Company's website at https://www.imperialcristalcaviar.com . Forward-Looking Statements All statements other than statements of historical fact in this announcement are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC. For more information, please contact: Top Wealth Group Holding Limited Phone: +852 3615 8567 Email: [email protected] - 2 - Top Wealth Group Holding Limited Unaudited interim condensed consolidated balance sheets (Amounts expressed in US dollars ("$") except for numbers of shares and par value) June 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 4,984 $ 134,350 Accounts receivable 2,746,320 5,972,736 Inventories 1,669,074 153,209 Prepayments 7,472,306 274,417 Deposits paid 595,063 595,063 Other receivables 717,304 - Total current assets 13,205,051 7,129,775 Non-current assets Property, plant and equipment, net 72,658 134,538 Right-of-use assets - operating lease 7,659 40,421 Deferred tax assets 136,819 44,248 Total non-current assets 217,136 219,207 Total assets $ 13,422,187 $ 7,348,982 Current liabilities Accrued expenses and other payables 221,412 425,673 Operating lease liabilities - current 7,659 40,421 Amount due to a related party 160,089 160,089 Borrowings 369,469 777,893 Current income tax payable 992,270 992,270 Total current liabilities 1,750,899 2,396,346 Commitments and contingencies Shareholders' equity Common stock, $0.0001 par value; 500,000,000 shares authorized, 29,000,000 shares issued and outstanding as of June 30, 2024 and 27,000,000 shares issued and outstanding as of December 31, 2023 2,900 2,700 Additional paid-in capital 7,827,930 641,015 Retained earnings 3,840,458 4,308,921 Total shareholders' equity 11,671,288 4,952,636 Total liabilities and equity 13,422,187 $ 7,348,982 - 3 - Top Wealth Group Holding Limited Unaudited interim condensed consolidated statements of operation and other comprehensive income (Amounts expressed in US dollars ("$") except for numbers of shares and par value) For the six months ended June 30, 2024 2023 Sales $ 4,398,690 $ 6,966,288 Cost of sales (2,076,190 ) (4,185,773 ) Gross profit 2,322,500 2,780,515 Other income 88 12 Selling expenses (779,767 ) (64,916 ) Administrative expense (2,103,855 ) (895,026 ) (Loss) profit before income tax (561,034 ) 1,820,585 Income tax credit (expense) 92,571 (361,287 ) (Loss) profit and total comprehensive (loss) income for the year (468,463 ) $ 1,459,298 (Loss) earnings per share: Ordinary shares, - basic and diluted $ cents (1.68) $ cents 5.40 Weighted average shares outstanding used in calculating basic and diluted (loss) earnings per share Ordinary shares, - basic and diluted 27,802,198 27,000,000 - 4 - Top Wealth Group Holding Limited Unaudited interim condensed consolidated statements of changes in equity (Amounts expressed in US dollars ("$") except for numbers of shares and par value) Common stock outstanding Amount Additional paid-in capital Retained earnings Total Balance as of January 1, 2023 * 27,000,000 $ 2,700 $ 638,326 $ 1,870,826 $ 2,511,852 Pro Rata Share Issuance deemed as share split - - 2,699 - 2,699 Deemed capital reduction in reorganisation - - (10 ) - (10 ) Profit and total comprehensive income for the period - - - 1,459,298 1,459,298 Balance as of June 30, 2023 27,000,000 $ 2,700 $ 641,015 $ 3,330,124 $ 3,971,140 Balance as of January 1, 2024 27,000,000 $ 2,700 $ 641,015 $ 4,308,921 $ 4,952,636 Issuance of common stock - 200 7,186,915 - 7,187,115 Loss and total comprehensive loss for the period - - - (468,463 ) (468,463 ) Balance as of June 30, 2024 29,000,000 $ 2,900 $ 7,827,930 $ 3,840,458 $ 11,671,288 - 5 - Top Wealth Group Holding Limited Unaudited interim condensed consolidated statements of cash flows (Amounts expressed in US dollars ("$") except for numbers of shares and par value) For the six months ended June 30, 2024 2023 Cash flows from operating activities Net (loss) profit $ (468,463 ) $ 1,459,298 Adjustments for:- Depreciation of property, plant and equipment 61,880 116,830 Deferred tax credit (92,571 ) (12,505 ) Changes in operating assets and liabilities: Accounts receivable 3,226,416 (764,789 ) Inventories (1,515,865 ) (1,944,124 ) Prepayments (7,197,889 ) - Other receivables (717,304 ) - Accounts payable - (5,256 ) Accrued expenses and other payables (204,261 ) 136,526 Amounts due with related parties - 8,744 Current income tax payable - 373,792 Net cash used in operating activities (6,908,057 ) (631,484 ) Cash flows from financing activities Proceeds from borrowings - 594,683 Repayment of borrowings (408,424 ) - Deemed capital reduction on reorganisation (10 ) Proceeds from issuance of shares 7,187,115 - Net cash provided by financing activities 6,778,691 594,673 Net decrease in cash and cash equivalents (129,366 ) (36,811 ) Cash and cash equivalents at beginning of period 134,350 217,384 Cash and cash equivalents at end of period $ 4,984 $ 180,573 - 6 -

View stock analysis, news, and events for Top Wealth Group Holding Limited