Full year revenue of $7.99 million

Campaign-based marketing services revenue grew 12.7% yoy to $4.40 million

Revenue of campaign-based marketing services in HK SAR grew 105.7% to $2.16 million

Expects FY24 revenue to increase by 20% driven by growth in cross regional brand partnership, AI-enabled digital content and recovery in social commerce

Announces share repurchase program with authorization to purchase up to 500,000 of the Company's Class A Ordinary Shares

HONG KONG, April 30, 2024 (GLOBE NEWSWIRE) -- VS Media Holdings Limited (NASDAQ:VSME) ("VS Media" or the "Company") today announced its financial results for the fiscal year ended December 31, 2023.

"Fiscal 2023 was a challenging year as our business was negatively impacted by weakened market sentiment, decrease in client spending and the temporary suspension of our social commerce business," said Ivy Wong, Founder and CEO of VS Media. "That said, we believe the worst is behind us. As 2024 continues to unfold, we expect strong growth in our top line and profit margin driven by cross-regional brand partnership, AI-enabled digital content, and recovery in social commerce. We are confident that some of the strategic partnerships and new market entry that we have announced recently will start to pay off commercially this year."

2023 Financial Summary

Revenue was $7.99 million, compared to $9.03 million in the prior year;
Overall campaign-based marketing services revenue grew 12.7% yoy to $4.40 million;
Revenue of campaign-based marketing services in Hong Kong grew by 105.7% to $2.16 million as compared to $1.05 million in the prior year;
Gross profit was $1.64 million, compared to $2.28 million in the prior year;
Net loss was $6.59 million, compared to $3.52 million in the prior year; and
Operating cash flow was $7.24 million, compared to $2.05 million in the prior year.

During fiscal year 2023, VS Media recorded revenue of $7.99 million compared to revenue of $9.03 million in the prior year. The decrease in revenue was mainly attributable to decreased revenue from the Company's Optimization-Based Marketing Services and Social Commerce businesses. The decrease was a result of weakened market sentiment, change in service mix as the company recalibrated internal resource to focus on higher margined Campaign-based marketing services in Hong Kong and the Company's strategy to temporarily suspend its Social Commerce business to optimize resources allocation.

Gross Profit for the year was $1.64 million compared to $2.28 million in the prior year. The overall decrease in gross margin to 20.5% was due to the abovementioned factors.

The Company reported a net loss of $6.59 million for the year, mainly due to listing related one-time expenses.

2024 Financial Guidance

VSME expects its business activities to recover due to cross-regional brand partnership, artificial intelligence -enabled digital content, and resumption of social commerce business in mid-year.
As a result, the management expects revenue to growth by 20% year-over-year compared to the fiscal year 2023 and to achieve positive net margin.

Share Repurchase Program

VS Media today announces that its Board of Directors approved a 10b-18 share repurchase program with authorization to purchase up to 500,000 of the Company's Class A Ordinary Shares. This plan is effective immediately for up to a one-year period.

Under the share repurchase program, the Company may repurchase its Class A Ordinary Shares from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans, intended to qualify under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.

The timing, manner, price, and total amount of any share repurchases under the share repurchase program are determined by the Company at its discretion through various factors, including but not limited to business, economic and market conditions, corporate, legal and regulatory requirements, prevailing stock prices, trading volume, and other considerations. The share repurchase program may be modified, suspended or discontinued at any time and the Company is not obligated to acquire any amount of stock. The Company expects to utilize its existing cash and cash equivalents to fund any repurchases under the share repurchase program.

"As market sentiment stabilizes in 2024, I am pleased with the momentum that we've seen across our business segments so far and will remain hyper focused on adding value between brands and creators to grow our marketing services on the one hand and resuming our social commerce business on the other. The announcement of share buyback demonstrates confidence in our business fundamentals and our commitment to shareholders,"

"VS Media continues to leverage our extensive capabilities in digital marketing and content creation. We are well-positioned to capitalize on emerging trends and opportunities related to digital marketing. In addition, VS Media's commitment to fostering talent and empowering content creators positions us as a catalyst for innovation and creativity in the digital space. By cultivating partnerships and investing in leading technologies, we are poised to drive growth, expand reach, and unlock new revenue potential in the years to come," said VS Media CEO Ivy Wong.

Recent Developments

In February 2024, VS Media entered into a strategic investment in Los Angeles-based creative venture studio MeeshQ. The investment comes as part of a partnership connecting MeeshQ's globally renowned talents and creators with VSME's emerging local brands in Asia Pacific. The partnership brings future opportunities for brand sponsorship, product venture and other commercial opportunities, as well as helping talents launch their own products in the Asia Pacific region. MeeshQ and VSME plan to launch a number of global ventures in 2024 with high-profile American contemporary talents such as Mike Tyson and Dennis Rodman in Asia Pacific. VS Media will be MeeshQ's exclusive partner in the region.

Additionally, in February 2024, VS Media partnered with global entertainment company The Pinkfong Company and fine dining provider King Parrot Group to launch a VS Lounge in Hong Kong's Central Waterfront. The event series successfully ran from February 2, 2024through February 25, 2024, at the Central Waterfront, spanning across the Lunar New Year and Valentine's Day as an all-day family-oriented event. The event demonstrated the Company's ability in collaborating with top tier content creators with customers in online and offline settings.

In October 2023, VS Media announced its expansion into Macau, further solidifying its presence in the Asian market. The strategic move into Macau allows VS Media to leverage its vast experience in digital marketing, influencer engagement, and content creation to support Macau businesses in promoting their offerings to a global audience. With a robust network of talented content creators, VS Media consistently delivers impactful campaigns that resonate with target audiences, driving brand awareness and engagement.

About VS Media

VS Media Holdings Limited (NASDAQ:VSME) manages a network of leading digital creators across Asia Pacific that powers content-driven social commerce and offers local and effective marketing services to brands. Founded in 2013, VSME partners with over 1,500 creators and over 1,000 brands to promote and merchandise their products and services. The Company is currently growing internationally across Hong Kong, China, Taiwan, Singapore, and beyond. For more information, visit https://www.vs-media.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, for example, statements about potential activity under share repurchase plan. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are also based on assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. The Company undertakes no obligation to update or revise publicly any 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 other filings with the SEC.

Contact information:

VS Media Holdings Limited

ir@vs-media.com

VS MEDIA HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS (Currency expressed in United States Dollars ("US$"), except for number of shares)
	As of December 31,
	2023			2022
ASSETS
CURRENT ASSETS
Cash and equivalents	$	1,500,148		$	820,570
Accounts receivable, net		2,131,371			1,917,732
Deposits, prepayments and other receivables, net		6,358,344			4,545,591
Due from related parties		1,799			7,254
Total current assets		9,991,662			7,291,147

NON-CURRENT ASSETS
Plant and equipment, net		19,609			27,123
Intangible assets, net		37,333			57,865
Deposit paid for acquisition of intangible assets		-			115,601
Right-of-use assets, net		34,143			100,589
Total non-current assets		91,085			301,178

TOTAL ASSETS	$	10,082,747		$	7,592,325

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Bank loans - current	$	1,587,680		$	1,628,048
Other borrowings - current		432,241			-
Accounts payable		1,837,795			1,036,790
Due to related parties		90,589			504,837
Loan – related parties		1,295,287			1,231,327
Receipt in advance		139,341			59,069
Lease liabilities		34,143			66,604
Accruals and other payables		264,532			779,840
Total current liabilities		5,681,608			5,306,515

NON-CURRENT LIABILITIES
Other borrowings – non-current		208,116			632,737
Lease liabilities – non-current		-			33,985
Total non-current liabilities		208,116			666,722

TOTAL LIABILITIES		5,889,724			5,973,237

Commitments and contingencies

SHAREHOLDERS' EQUITY
Class A ordinary shares, unlimited authorized shares, no par value, 20,000,000 shares and nil issued and outstanding as of December 31, 2023 and 2022, respectively		8,047,695			-
Class B ordinary shares, unlimited authorized shares, no par value, 2,000,000 shares and nil issued and outstanding as of December 31, 2023 and 2022, respectively		-			-
Ordinary shares, no par value, nil and 20,000,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively		-			20

Additional paid in capital		17,075,568			16,213,997
Accumulated other comprehensive income		277,912			18,781
Accumulated deficit		(21,208,152	)		(14,613,710	)
Total shareholders' equity		4,193,023			1,619,088

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	10,082,747		$	7,592,325

VS MEDIA HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Currency expressed in United States Dollars ("US$"), except for number of shares)
	For the years ended December 31,
	2023			2022			2021
Revenue, net	$	7,991,103		$	9,028,187		$	10,944,753
Cost of revenue		6,351,394			6,743,205			8,662,313

Gross profit		1,639,709			2,284,982			2,282,440

Operating expenses
Marketing expenses		218,895			70,154			189,033
General and administrative expenses		6,973,526			3,858,561			2,164,206

Total operating expenses		7,192,421			3,928,715			2,353,239

Loss from operations		(5,552,712	)		(1,643,733	)		(70,799	)

Other income (expense)
Share-based compensation		(861,551	)		-			-
Other income		103,006			43,342			53,159
Interest income		7,560			2			-
Interest expense		(290,745	)		(206,842	)		(193,738	)
Total other expense, net		(1,041,730	)		(163,498	)		(140,579	)

Loss before income tax		(6,594,442	)		(1,807,231	)		(211,378	)

Provision for income taxes		-			-			-

Loss from continuing operations		(6,594,442	)		(1,807,231	)		(211,378	)

Discontinued operations:
Loss from discontinued operations		-			(11,798	)		(21,246	)
Gain on disposal		-			5,344,229			-

NET (LOSS) INCOME	$	(6,594,442	)	$	3,525,200		$	(232,624	)

Other comprehensive (loss) income
Foreign currency translation adjustment		259,131			591,294			(123,182	)
Total comprehensive (loss) income	$	(6,335,311	)	$	4,116,494		$	(355,806	)

Loss per share from continuing operations - Basic and diluted	$	(0.33	)	$	(0.09	)	$	(0.01	)
Income (loss) per share from discontinued operations – Basic and diluted	$	-		$	0.27		$	(0.00	)
(Loss) income per share – Basic and diluted	$	(0.33	)	$	0.18		$	(0.01	)
Weighted average number of ordinary shares outstanding - basic and diluted		20,000,000			20,000,000			20,000,000

VS MEDIA HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Currency expressed in United States Dollars ("US$"))
	For the years ended December 31,
	2023			2022			2021
							(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss from continuing operations	$	(6,594,442	)	$	(1,807,231	)	$	(211,378	)
Loss from discontinued operations		-			(11,798	)		(21,246	)
Share-based compensation		861,551			-			-
Depreciation and amortization		97,263			94,599			76,022
Write off accounts receivable		-			5,321			-
Write off inventories		-			369			1,713
Expected credit loss allowance		-			204,000			57,000
Inventories		-			8,778			65,386
Accounts receivable		(213,639	)		479,236			(295,850	)
Deposits, prepayments and other receivables		(1,812,753	)		(1,130,984	)		(75,220	)
Deposit paid for acquisition of intangible assets		115,601			(114,938	)		-
Receipt in advance		80,272			9,748			(663,709	)
Accounts payable		801,005			(247,422	)		47,352
Accruals and other payables		(515,308	)		557,662			(303,978	)
Operating lease liabilities		(66,446	)		(66,683	)		(50,568	)
Net cash used in operating activities – continuing operations		(7,246,896	)		(2,019,343	)		(1,374,476	)
Net cash (used in) provided by operating activities – discontinued operations		-			(27,614	)		5,510
Net cash used in operating activities		(7,246,896	)		(2,046,957	)		(1,368,966	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of plant and equipment		(2,810	)		-			(40,586	)
Proceeds from disposal of subsidiaries		-			2,174,025			-

Net cash (used in) provided by investing activities		(2,810	)		2,174,025			(40,586	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans		-			383,127			601,479
Repayment of short-term bank loans		(40,368	)		-			-
Proceeds from other borrowings		-			629,109			-
Proceeds from IPO offering		8,047,695			-			-
Promissory notes payable		-			(1,584,735	)		115,483
Loan from a shareholder		-			71,716			71,716
Proceeds from allotment of ordinary shares		-			500,000			-
Repayments (to) from related parties		(350,288	)		(379,093	)		27,835
Advances from related parties		5,455			-			668,287

Net cash provided by (used in) financing activities – continuing operations		7,662,494			(379,876	)		1,484,800
Net cash provided by (used in) financing activities – discontinued operations		-			6,993			(15,403	)
Net cash provided by (used in) financing activities		7,662,494			(372,883	)		1,469,397

Net increase (decrease) in cash and cash equivalents		412,788			(245,815	)		59,845
Effect of foreign currency translation on cash and cash equivalents		266,790			280,796			(127,759	)
Cash and cash equivalents, beginning of year		820,570			785,589			853,503

Cash and cash equivalents, end of year	$	1,500,148		$	820,570		$	785,589

Supplemental cash flow information:
Interest income received	$	7,560		$	2		$	-
Interest paid	$	290,745		$	206,842		$	193,738
Listing fee paid	$	185,799		$	1,031,485		$	-

VS MEDIA Announces Fiscal Year 2023 Financial Results