Global Engine Group Holding Limited Announces Financial Results for Fiscal Year 2024
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 from 16.5% in 2023 to 14.8% in 2024.
Net income was HKD2.6 million (US$0.3 million) for the year ended June 30, 2024, decreased by 2.6% 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 10.7% to reach HKD49.5 million (US$6.3 million), up from HKD44.7 million in the previous year. This growth was largely fueled by our expanding cloud and data center managed services, particularly in Malaysia and Taiwan, where demand continues to rise. While we saw a decline in revenue from telecommunications and consultancy services, mainly due to the completion of specific projects in Hong Kong last year and that the Company targets to focus more on markets outside of Greater China such as Southeast Asia, we remain optimistic about our strategic focus on cloud solutions, which reflects our efforts to diversify our offerings and penetrate new markets."
"Our cost of revenues increased to HKD42.1 million (US$5.4 million), primarily driven by higher subcontracting expenses linked to an uptick in project volume. As a result, gross profit slightly decreased by 0.8% to HKD7.3 million (US$0.9 million), resulting in a gross profit margin of 14.8%. This decline can be attributed to our competitive pricing strategies aimed at capturing market share."
"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 10.7% to HKD49.5 million (US$6.3 million) for the year ended June 30, 2024, up from HKD44.7 million in 2023.
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
$23.6
$41.4
$17.8
75.5%
Telecommunication, consultancy and related services
$21.1
$8.1
($13.0)
(61.9)%
Total revenues
$44.7
$49.5
$4.8
10.7%
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$5.4 million), up HKD4.8 million from HKD37.3 million in 2023, primarily due to increased subcontracting expenses from more projects.
Gross Profit
Consequently, gross profit for the year ended June 30, 2024, was HKD7.3 million (US$0.9 million), a slight decrease of 0.8% from HKD7.4 million in 2023. Gross profit margin fell to 14.8%, or down 1.7%, from 16.5% the previous fiscal year, attributed to our offering competitive pricing to enter new markets.
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 5.5% from HKD4.2 million in fiscal year 2023 to HKD4.5 million (US$573,766) in fiscal year 2024. This increase was primarily due to increases in salaries and employee benefits from a larger workforce in fiscal 2024, partially offset by a HKD132,411 (US$16,958) decrease in legal and professional fees related to the company's initial public offering in the U.S.
Net income
As a result of the above discussed, the Company recorded a net income of HKD2.6 million (US$332,403) for the year ended June 30, 2024, representing a decrease of HKD69,586, or 2.6%, from a net income of HKD2.7 million for the year ended June 30, 2023.
Recent development:
On September 23, 2024, the Company completed its initial public offering and raised gross proceeds of US$8 million before deducting underwiring discounts and other offering expenses.
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$1.2 million, in addition to the previously announced IPO gross proceeds of US$8 million, for total gross proceeds of US$9.2 million raised in its initial public offering before deducting underwriting discounts and offering expenses.
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 Phone: +86 13811768599 +1 628 283 9214
GLOBAL ENGINE GROUP HOLDING LIMITEDCONSOLIDATED 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
