Good day, everyone, and welcome to Treasure Global Inc's fourth quarter and fiscal year 2023 conference call. At this time, participants are on a listen-only mode. A question and answer session will follow management's remarks. This conference call is being recorded. A replay of today's call will be available on the investor relations section of TGL's website and will remain posted there for the next 30 days. I will now hand the conference over to Sophia Bashford, Senior Account Director, Investor Relations for KCSA, for introductions and the reading of the safe harbor statement. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Treasure Global's fourth quarter and fiscal year 2023 results conference call. With us on today's call are Sam Teo, Chief Executive Officer; Michael Chan, Chief Financial Officer; and Jeremy Roberts, Independent Director. Before we begin, I would like to remind you that today's call contains certain forward-looking statements from our management, made within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21A of the Securities and Exchange Act of 1934, as amended, concerning future events. Words such as may, should, project, expect, intends, plans, believes, anticipates, hopes, estimates, and variations of such words and similar expressions are intended to identify forward-looking statements.
These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the Company's Form 10-K for the year ended June 30, 2022, filed with the SEC. Copies of this document are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. The company undertakes no obligation to update these statements for revisions or changes after the date of this call, except as required by law. Now, it is my pleasure to introduce Sam Teo, CEO of TGL. Sam, please go ahead.
Thanks, Sophia, and thank you, everyone, for joining us today on our fourth quarter and fiscal year 2023 earnings conference call for the period ended June 30, 2023. I'm happy to be here with... to provide an update on our business. Firstly, I will recap Treasure Global and our main growth driver, followed by a review of specific highlights from the fourth quarter and subsequent to the quarter end. I will then recap our vision for growth and how we have the tools to achieve this. Our Chief Financial Officer, Michael Chan, will then discuss the financial highlights for our fourth quarter and fiscal year financial results. Following that, we'll be happy to answer your question. Treasure Global or TGL is a Malaysian solutions innovative technology platform.
We have a strong track record of developing cutting-edge solutions for our customer base, and through our proprietary technology platform, we developed two primary technology solutions, ZCITY and TAZTE. They are providing an online e-commerce with offline physical retailers. Given our experience and success within the food and beverage industry, we established a third growth driver to this year as a food and beverage master franchisor, which we launched as Foodlink. We believe the opportunity to leverage our platform to reach a more expansive consumer base and are able to introduce new products and innovation, which we expect to drive our growth in the year ahead.
Before discussing the various new growth opportunities that we are now advancing, I will recap the advancements that we made with ZCITY and TAZTE in fiscal 2023 and in the fourth quarter, which have expanded our market footprint and helped grow our reach to new markets and customer segments. Our first proprietary product, the ZCITY app, is a digital ecosystem that simplifies lifestyle needs with instant rebates and actual cashback program. ZCITY serves both consumer and merchant to maximize value creation and enhance the shopping experience. To date, we have been highly successful in recruiting a large and growing number of users, gaining more than 2.6 million registered users and over 2,000 merchants. We have achieved this growth through innovative enhancement and strategic partnerships.
In the fourth quarter, we integrated AI technology into our ZCITY app with a user-friendly chatbot powered by engine and ChatGPT, allowing us to offer consumers a more personalized and targeted reward experience. Our next-gen personalized chatbot assistant, which we have named Jojo, went live in August for ZCITY users and is serving as a key market differentiator, positioning Treasure Global as a leader in the AI-driven e-commerce space. Jojo uses AI and deep learning to check user personal preferences to recommend ideal promotion and products for them. The added functionality is expected to enhance user retention and attract new customers to drive revenue growth, as well as a spending pattern. We secured a number of partnerships during the fourth quarter, which continues to be key to our strategy.
First, Treasure Global secured an exclusive partnership with enogy, a health and wellness brand, to expand the range of products available on e-commerce marketplace, Zstore, which is housed within the ZCITY app. This partnership opened a new market, targeting the large and growing health and wellness industry. The new revenue stream for enogy and other affiliate partner products sold on the ZCITY app is contributing to Treasure Global revenue growth, margin expansion, and brand presence as we continue to expand through our mal-. In July, Treasure Global collaborated with the Malaysian Ministry of Domestic Trade and Cost of Living for the launch of the Pakej RAHMAH program, which offer various financial saving initiatives, reducing the cost of living for lower-income group, including university students. As part of this, ZCITY offered a comprehensive package of living essential e-voucher on the app for items such as petrol, food, and bills.
The initiative showcased ZCITY's cutting-edge digital ecosystem and attract new, so supporting this important social program. In September, we collaborate with the Borderland Music Festival to provide the first cashless and ticketing platform-powered music festival in Malaysia, powered by the ZCITY app. ZCITY gained significant exposure during the event, ticketing solution, as well as penetrating the new market of Sarawak. Treasure Global also charge fees for each ticket sold, providing a new revenue generation opportunity for the company. Moving now to TAZTE, our second proprietary solution, which we were proud to launch during fiscal. TAZTE is a transformational digital food and beverage management system, providing merchant with a one-stop management and automated solution to digitalize their businesses. TAZTE allow food and beverage merchant to streamline their operations, improving operation efficiency and saving.
While just the revenue stream are historically low margin, TAZTE offer an opportunity to generate higher gross margin for Treasure Global through increasing user engagement and stickiness. TAZTE is a product that merchant have come to rely on for their business needs to stop using TAZTE. TAZTE currently offer digitalized processes, including online menus, ordering, e-payment, transaction recording with online payment or QR Digital Payment technology. TAZTE, smart food and beverage system also provide a digital queue system proven to reduce staff labor and will offer a private domain of delivery services to access multiple dedicated delivery partner. We are now excited to announce that we are currently developing TAZTE 2.0, which is expected to be launched within the next month. This upgrade is functionality on both the merchant and customer side.
The additional functionality will provide a complete solution offering, including merchant supply chain management and upstream purchasing, which we believe will significantly attract merchant to the platform. It will also provide a friendly interface for customer and merchant in a larger console version. Since its launch, TAZTE has received positive feedback from users, as well as very growing the number of merchants and users. For the market source feedback, suggest that merchant who have adopted TAZTE in transaction and basket value, as well as an increase in user stickiness, with customer returning more often. Treasure Global has been focused on expanding TAZTE throughout Malaysia and also to new markets. In July, Treasure Global signed a standing agreement with the Malaysia Retail Chain Association for TAZTE to become the exclusive partner as the recommended digital food and beverage management solution to its member in Malaysia.
Now, TAZTE is the MRCA preferred food and beverage system, and it is recommended to its member to subscribe as TAZTE merchant. The MRCA has over more than 40,000 outlets. Another key partnership, which has helped drive the growth of Treasure Global network, and food and beverage provider in our partnership with Boost Credit, a leading regional full-spectrum fintech player. We signed a memorandum of understanding with Boost to leverage their digital financing solution, which include working capital financing, invoice financing, and supply chain financing to further strengthen the TAZTE program. As we expanded further into the food and beverage industry through development of TAZTE, we identified a significant opportunity, which now form the third growth driver for Treasure Global. We made a strategy decision to become a master franchisor in Southeast Asia for popular restaurant chains, while also recruiting them to our TAZTE platform.
Under the subsidiary name, Foodlink, that Treasure Global has established to house food and beverage master franchisor activity. We will manage all brand and related intellectual property through lease, ownership, or joint venture agreement with brands that we secure partnership with. We will also provide food and beverage consulting, including market and product optimization, as well as supply chain monetization. By executing, Treasure Global aim to become the largest food and beverage chain without owning any physical bricks-and-mortar outlets. This unique business model allows Treasure Global to establish synergy with our technology solution, deepening our position in the food and beverage industry. Not only can we strategically grow our TAZTE user base as we adopt it into new restaurant, additionally, we are securing a new revenue stream for monthly licensing fee and startup fee.
In addition, we believe this strategy will help us to expand the use of our innovative solution more rapidly, as well as to capture data on vital component of supply chain to better understand, improve, and innovate our current solution and future solutions. We have already made progress in our execution, signing licensing agreement, Asia brand. In May, we signed a licensing agreement with Morganfield's, a restaurant chain specializing in comfort food and American-style barbecue. The agreement granted Treasure Global an exclusive worldwide license to grant sub-licensee to use Morganfield's trademark for the restaurant business. Morganfield's will also adopt TAZTE in the nine franchisee in Malaysia, China, and Singapore, accelerating the rollout of TAZTE across the region.
Not only will TAZTE be adopted into their existing nine franchisees, have the opportunity to grant sub-licensing to third parties to open additional Morganfield's restaurants in the region that will also adopt TAZTE. Most recently, we secure a license agreement with fast-growing Malaysian food and beverage brand, Abe Yus. Granting Treasure Global the exclusive sub-licensing to third parties to use its trademarks under the agreement. Treasure Global likes to grant sub-licensing to any third party to open additional Abe Yus businesses in Malaysia. As the master franchisor, Treasure Global will manage brand and raw material supply. In addition, all the Abe Yus food and beverage outlets will be obligated to adopt TAZTE across all their businesses. Again, Treasure Global will gain additional revenue stream from monthly licensing fees, startup fees for new locations, and management.
Abe Yus food and beverage group of businesses, including the high-selling curry puff from Grab-and-Go Food Hub, as well as the Abe Yus volume street food kiosk, Abe Yus Cafe Restaurant, and the Abe Yus Mart, B2C online e-service. The chain currently has 12 outlets operating across Malaysia, with plan to open 35 outlets by the end of 2023, and 300 outlets to be opened over the next 5 years in the country. In addition, Abe Yus plan to Southeast Asian market in the future. Clearly, Treasure Global has significant opportunity for Foodlink, and we are focused on increasing gross margins from the ongoing development of each of these business channel. To talk about our significant market opportunity, both in Malaysia, specifically, and more broadly in Southeast Asia, particularly Indonesia. Our domestic market of Malaysia has a growing population and solid near-term economy, economic growth outlook.
Malaysia recorded a strong post-pandemic recovery in 2022, and according to the IMF, Malaysia GDP growth is expected to maintain an average annual rate of 4.5% for the next five years, including 2023. It's a strong macroeconomy, including a track record of fiscal prudence and credible monetary policy framework, have contributed to the stabilized macro environment. Importantly, Malaysia has a very high rate of digital connectivity. We have a population of the Malaysia, of which 94% are internet user. Looking at our registered user, we have only penetrated 7.3% of our addressable market domestically for ZCITY, which is made up of digitally connected consumer.
For TAZTE, in the F&B industry in Malaysia, there were more than 220,000 small-to-medium food and beverage business owners in Malaysia in 2021, and the market has been growing at an annual rate of 5.1% since 2015. We are confident that TAZTE is needed, an automated solution for the sector. The expansion opportunity, which include entry into other Southeast Asian market, which has much larger population and similar demographic, are significant. In our roadmap, we plan to tap into our neighboring country, such as Indonesia, Thailand, Vietnam, and Japan for regional expansion. As we have already announced, we are targeting Indonesia first, which has 10 times the population of Malaysia, but similar demographic and language to Malaysia.
With both Malaysia and Indonesia being multi-ethnic and multi-society, there is the opportunity for several seasonal marketing campaign throughout the year around the various religious holiday and festival. We have already taken significant steps to enter the Indonesian market. Recently, we announced the company has signed to form an e-commerce venture in Indonesia with Harmoni Pagi Dunia (HPD). Treasure Global will hold a 70% major stake in HPD, and Treasure Global will grant HPD exclusive right to promote and operate its proprietary app, ZCITY. The letter of intent marked the beginning of the company expansion into the Indonesian market, aligning with our strategy to grow internationally with innovative local partners. The venture will provide Treasure Global and its proprietary app, ZCITY, with a network of 200,000 merchants and data of 5 million users within the several industry in Indonesia.
The Indonesian market has a substantial internet user base of 213 million, out of a population of 276 million, from opportunity for expansion of Treasure Global total addressable market. We have also made a stretch in developing new product to further expand our addressable market segment. In July, we announced a collaboration agreement with VCI Global to develop our travel platform as a new offering for traveler in Malaysia. The platform serves as a high-tech portable concierge app, offering real-time recommendation for travel planning, dining, exploring, and seamless booking for flight, hotel, and car rentals. This also include advanced translation function to break down language barriers. Treasure Global and VCI Global will share ownership and profit from this collaboration, positioning the company to tap into the post-pandemic travel boom, expected to contribute significantly to the Malaysia by 2025.
To sum up, we are proud of the progress we have achieved over the recent. Now, I will pass the call to Michael, who will review our financial results in greater detail.
Thank you, Sam, and good morning, everyone. Today, I will review our financial result for the fourth quarter and fiscal year ended June 30, 2023, compared to the same period in 2022. Total revenue for the fiscal year ended June 30, 2023, was $69 million, compared with $79.7 million for the fiscal year 2022. For the fourth quarter, total revenue was $15.1 million, compared to $16.2 million for the same period last year. Our revenue year-over-year were down because of our change in focus to increasing margin business channels, such as TAZTE. ZCITY revenue stream are historically low margin, while TAZTE offer a new avenue for growth with stronger margin.
Our goal is to focus on higher-margin revenue channels, increasing user engagement and stickiness by providing our users with new products, and in the case of TAZTE, a product that merchants come to rely on for their business needs. Gross profit for the year 2023 was $0.52 million, up from $0.48 million for the fiscal year ended June 30, 2022, showing that initiatives to grow gross profit have already started to work. As Sam mentioned, ZCITY had over 2.6 million registered users and over 2,000 registered merchants as of September 24, 2023. Quarterly active users for the quarter ending June 30 were 378,414, while paid users were up by 4.3%.
A total of 1.4 million transactions by our registered users were transacted over the year to June 30, 2023. Our net loss of approximately for the fiscal year 2023 remained the same compared to fiscal year 2022. As of June 30, 2023, our cash balance was approximately $4.6 million, compared to a cash balance of approximately $1.8 million as of June 30, 2020. Active user retention rate was up 280% year-over-year, and 41% of paid users transacted three or more times in a quarter, which is an increase of approximately 24% year-over-year. Importantly, the quality of ZCITY user has improved, where we see paid users transaction frequency in our ZCITY app.
We recorded approximately 1.4 million total transactions by registered users in the fourth quarter fiscal year 2023. As we have already discussed, we are laser-focused on increasing gross profit and margin. The measures, so far, are already working, and we expect this to increase going forward as we roll out TAZTE further. Now I will turn the call back to Sam to discuss the market opportunity and growth vision.
Thanks, Michael. Treasure Global has made great headway so far. Through our key product, ZCITY, we are now looking to the future and the next stage of delivering on our growth plan of expanding further into the food and beverage industry in Malaysia through TAZTE, as well as Southeast Asia more broadly. We are focused on increasing through fiscal 2024 by increasing user engagement through new products and services development, such as TAZTE, to generate higher profit and margin. We are at the beginning of our journey with significant growth opportunity ahead. Through the application of our proprietary technology, we can offer consumers more personalized and experience. As we continue to grow and refine how we analyze our customer data, we will continue to develop strategies to increase engagement and develop products and services that generate higher margins for our business.
This concludes our prepared remarks. Now I would like to open the call for questions. Operator, please go ahead.
Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. Today's first question is coming from M. Marin. Please go ahead.
Thank you. Good morning. I'm wondering about, you know, you mentioned during your prepared remarks, you talked a little bit about some of the agreements you've already formulated within the food and beverage sector. And I think, you know, some of those agreements are also designed to facilitate your own expansion as those food and beverage operators expand themselves. Can you talk a little bit about, you know, how you see that playing out over time, and whether any of those companies, either Morganfield's or another, Abe Yus, whether they've announced any expansion plans recently? Thank you.
Thanks very much, Marla, for your question. I think it's those agreements, both Morganfield's and Abe Yus, are mutual benefit to both of us. We're riding on their coattails as they expand, and we're helping them expand with TAZTE, which lowers the cost of sort of signing up additional franchisees, and we get benefits from that side as well. So it's mutually beneficial as they expand and as we expand as well. And I think the other thing I would add is, as more of these groups sign up via Foodlink, it also just increases the market, broader market awareness of sort of TAZTE within the wider Malaysian food and beverage market.
Sam, do you want to add any comments, just specifically in terms of Abe Yus and their expansion plans or Morganfield's and their expansion plans near term?
Yeah. Hi, Jeremy. So, basically for Morganfield's, Abe Yus, so the, we are starting in Malaysia. So as you're sharing just now, so we are just start for this year. So coming that we will continue to, to, especially for Abe Yus, that we are targeted for this is 30 outlet. Sure, that we will adopt TAZTE together, so in order that we can be the, we can be saying that we can digitize the businesses and we can get more the users engagement and stickers on the TAZTE platform.
Does that answer your question, Marla?
It does. Thank you very much.
Thank you. At this time, I'd like to turn the floor back over to Mr. Sam Teo for closing comments.
Okay. Thank you again to everyone for joining us on today's call. We are grateful to our investors for their ongoing support and interest in Treasure Global. We look forward to updating you on our progress in the coming quarter. Thank you, and have a great day.
Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.