AGBA Group (AGBA) investor relations material

Executive summary

• AGBA Group Holding Limited reported a net loss of $19.4 million for the six months ended June 30, 2024, a 14% improvement from the $22.7 million loss in the same period last year, driven by lower operating expenses despite a significant revenue decline.

• Total revenue for the first half of 2024 was $12.6 million, down 56% year-over-year, mainly due to a sharp drop in commission income from the Distribution Business amid economic recession and outward migration in Hong Kong.

• The company continues to face substantial liquidity risks, with a working capital deficit of $35.6 million and cash and cash equivalents of $1.8 million as of June 30, 2024.

• Management is actively seeking additional capital through debt and equity offerings and is focused on controlling expenditures and expanding revenue streams.

Financial highlights

• Revenue for the six months ended June 30, 2024, was $12.6 million, compared to $28.4 million in the prior year period.

• Net loss for the six months ended June 30, 2024, was $19.4 million, compared to $22.7 million in the prior year period.

• Operating expenses decreased 47% year-over-year to $28.2 million, primarily due to lower commission, legal, and professional fees.

• Cash used in operating activities was $14.2 million for the first half of 2024, compared to $19.3 million in the prior year.

• Earnings per share (basic and diluted) for the six months ended June 30, 2024, was $(0.26), compared to $(0.36) in the prior year.

Outlook and guidance

• Management expects continued operating losses in the near term as investments in business growth persist.

• The company is focused on expanding its Distribution and Platform businesses and is seeking new capital to support operations and growth.

• There is no assurance that additional funding will be available on acceptable terms or sufficient to sustain operations.