UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2024

 

Commission File No. 001-41678

 

VCI Global Limited

(Name of registrant)

 

B03-C-8 & 10, Menara 3A, KL Eco City, No.3 Jalan Bangsar, 59200
Kuala Lumpur, Malaysia

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F  ☒        Form 40-F  ☐

  

 

 

 

 

On August 19, 2024, VCI Global Limited (the “Company”) announced that its Board of Directors has approved a share repurchase program with authorization to purchase up to $10 million of the Company’s outstanding ordinary share (the “Repurchase Program”). The volume and timing of any repurchases will be subject to general market conditions, as well as the Company’s management of capital, other investment opportunities, and other factors. The Repurchase Program does not obligate the Company to repurchase any specific number of shares, and may be modified, suspended, or discontinued at any time at the Company’s discretion. A copy of the press release announcing the Repurchase Program is attached hereto as Exhibit 99.1 and incorporated herein by reference.

 

The information set forth in this Current Report on Form 6-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

EXHIBIT INDEX

 

Exhibit    Description
99.1   VCI Global Limited Press Release dated August 19, 2024

 

1

 

SIGNATURES

 

Pursuant to the requirements of the U.S. Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: August 22, 2024

 

  VCI Global Limited
   
  By: /s/ Victor Hoo 
  Name:  Victor Hoo
  Title: Director, Executive Chairman and
Chief Executive Officer

 

2

 

Exhibit 99.1

 

 

PRESS RELEASE

 

VCI GLOBAL ANNOUNCES 44% REVENUE GROWTH IN ITS FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2024; ANNOUNCES US$10 MILLION SHARE REPURCHASE PROGRAM OVER 2 YEARS

 

August 19, 2024 | Globe Newswire

 

KUALA LUMPUR, Malaysia, August 19, 2024 – VCI Global Limited (NASDAQ: VCIG) (Frankfurt: H0T) (“VCI Global,” “VCIG,” or the “Company”) a diversified holding company specializing in consulting, fintech, artificial intelligence (AI), robotics and cybersecurity, is proud to announce its unaudited financial results for the six months ended June 30, 2024 (the “Interim Results”) (the “Financial Results”).

 

Financial Highlights

 

VCI Global achieved an impressive total revenue of $13.7 million for the six months ended June 30, 2024, marking a 44% YoY growth.

 

Gross profit experienced a substantial YoY growth of 57%, reaching $12.9 million for the six months ended June 30, 2024.

 

Net income surged to $5.4 million for the six months ended June 30, 2024, reflecting a remarkable growth of 25%.

 

VCIG’s business strategy consultancy revenue experienced a remarkable 151% YoY surge, reaching $11.2 million for the six months ended June 30, 2024.

 

VCIG’s fintech segment revenue experienced an impressive 183% YoY growth, reaching $0.7 million for the six months ended June 30, 2024.

 

Authorization of a Share Repurchase Program

 

VCIG’s Board of Directors has authorized the implementation of a share repurchase program for up to US$10 million of the Company’s outstanding ordinary shares over the next two years (the “Repurchase Program”). Under the Repurchase Program, VCIG may repurchase for cash, from time to time, its ordinary shares through open market purchases pursuant to a Rule 10b-18 plan, in compliance with applicable securities laws and other legal requirements.

 

The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, through negotiated transactions off the market, in block trades, or through other legally permissible means. The timing and extent of any repurchases will be influenced by market conditions, the trading price of its ordinary share, and other factors. These repurchases will also adhere to restrictions relating to volume, price, and timing under applicable law. VCI Global expects to implement this Repurchase Program in a manner consistent with market conditions and the interests of the Company’s shareholders. VCIG’s Board of Directors will review the Repurchase Program periodically and may authorize adjustments to its terms and size accordingly.

 

 

 

 

 

“Our outstanding performance for the six months ended 2024 is a testament to the exceptional efforts and dedication of our team. We have successfully advanced our strategic initiatives and strengthened our position in the market. Looking ahead, we remain committed to leveraging our expertise to drive continued growth and deliver unparalleled value to our clients. Our focus remains on innovation and excellence, and we are excited about the opportunities that lie ahead as we build on this momentum for future success,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.

 

Financial Results

 

Revenue was $13.7 million for the six months ended June 30, 2024, representing a 44% YoY increase from $9.5 million for the six months ended June 30, 2023. This increase in revenue was primarily attributable to our ability to offer market-leading services that add value to clients through our business strategy consultancy service offerings and solutions.

 

VCIG’s revenue generated from business strategy consultancy segment increased by 151% to $11.2 million for the six months ended June 30, 2024, compared to $4.5 million for the six months ended June 30, 2023. The gross profit margin of the business strategy consultancy revenue was 93% for the six months ended June 30, 2024, compared to 73% for the six months ended June 30, 2023.

 

The Company’s revenue generated from fintech segment increased by 183% to $0.7 million for the six months ended June 30, 2024, compared to $0.2 million for the six months ended June 30, 2023.

 

   For the Six Months Ended June 30 
   2024   2023   Change 
   USD   USD   % 
Business strategy consultancy fee   11,160,748    4,453,647    150.6%
Technology development, solutions and consultancy   1,748,959    4,227,387    (58.6)%
Interest income   677,086    239,645    182.5%
Others   139,908    604,631    (76.9)%
Total revenue   13,726,701    9,525,310    44.1%

 

Other Income for the six months ended June 30, 2024, was $104 thousand, reflecting a decrease of 54% compared to $226 thousand for the six months ended June 30, 2023.

 

 

2

 

 

EBITDA reached $5.7 million for the six months ended June 30, 2024, reflecting a 41% margin on revenue and a notable increase of 26%, compared to $4.5 million for the six months ended June 30, 2023. This surge was primarily driven by a rise in operating income.

 

Net Income amounted to $5.4 million for the six months ended June 30, 2024, reflecting a 39% margin on revenue and a significant 25% increase from $4.3 million for the six months ended June 30, 2023.

 

Cost of Services was $844 thousand for the six months ended June 30, 2024, representing a significant decrease of 35% from $1.3 million for the six months ended June 30, 2023.

 

Consultant fee costs significantly decreased by $481 thousand, or 40%, to $735 thousand for the six months ended June 30, 2024. These costs represent the expenses incurred by the Company for assisting its clients in engaging all the relevant professionals required during the listing process, including but not limited to legal counsel, auditors, financial consultants, and U.S. capital markets consultants. Such consultant fee payments are included and treated as part of our consultation services for clients during the IPO process.

 

IT expenses amounted to $9 thousand for the six months ended June 30, 2024, reflecting a significant decrease of 77% compared to $39 thousand for the six months ended June 30, 2023. The gross profit margin of the technology development, solutions and consultancy revenue was 99.5% for the six months ended June 30, 2024.

 

Training costs amounted to $10 thousand for the six months ended June 30, 2024, reflecting a 76% decrease compared to $41 thousand for the six months ended June 30, 2023.

 

Other cost of services amounted to $90 thousand for the six months ended June 30, 2024.

 

   For the Six Months Ended June 30 
   2024   2023   Change 
   USD   USD   % 
Consultant fee    734,589    1,216,000    (39.6)%
IT expenses   8,904    38,705    (77.0)%
Training costs   10,098    41,217    (75.5)%
Other   90,461    -    100.0%
Total   844,052    1,295,922    (34.9)%

 

 

3

 

 

Depreciation expenses amounted to $108 thousand for the six months ended June 30, 2024, reflecting an 84% increase from $59 thousand for the six months ended June 30, 2023. The increase was primarily due to acquisition of additional assets, such as new computers and accessories purchased for our newly joined employees during the first half of 2024.

 

Directors’ fees amounted to $2.3 million for the six months ended June 30, 2024, representing a 94% growth, compared to $1.2 million for the six months ended June 30, 2023. This increase was due to the rise in directors’ fees effective from January 2024. Additionally, in the prior period, the Company only began paying directors’ fees to the Board of Directors starting from April 2023, upon the Company’s listing on Nasdaq.

 

Operating Income increased to $5.6 million for the six months ended June 30, 2024, reflecting a remarkable increase of 26% compared to $4.4 million for the six months ended June 30, 2023.

 

As a result, profit for the period was $5.4 million for the six months ended June 30, 2024, marking a strong 25% increase compared to $4.3 million for the six months ended June 30, 2023.

 

Cash Position and Capital Allocation

 

Net cash used in operating activities was $4.1 million for the six months ended June 30, 2024, a slight increase of $0.5 million, from $3.7 million for the six months ended June 30, 2023. This figure consists of our profit before tax of $5.6 million and was adjusted for non-cash items, including $1.3 million for share-based payment for director fee, and the changes in operating assets and liabilities were $11.4 million of increase in trade and other receivables and $348 thousand of increase in trade and other payables.

 

Net cash used in investing activities was $4.6 million for the first six months ended June 30, 2024, significantly increase as compared to $2.8 million generated from the six months ended June 30, 2023. Cash used in or generated from investing activities was mainly due to a $5.7 million investment in Fintech Scion Limited as part of our professional fees and $1.9 million from the disposal of our shares in YY Group Holding Limited.

 

Net cash generated from financing activities amounted to $8.6 million for the six months ended June 30, 2024, representing an increase of $5.2 million from $3.3 million for the six months ended June 30, 2023. This increase was mainly due to $8.8 million in proceeds from the At-The-Market Offering (ATM), private placements, warrant exercises, and follow-on public offerings.

 

Cash and cash equivalents amounted to $1.2 million for the six months ended June 30, 2024, representing a decrease of 62%, compared to $3.3 million for the six months ended June 30, 2023. The Company believes this amount, along with planned actions, will be sufficient to fund operations for at least the next 12 months. To improve liquidity, the Company plans to enhance the collection of outstanding receivables totaling $30.1 million as of June 30, 2024, and reduce general and administrative expenses.

 

 

4

 

 

About VCI Global Limited

 

VCI Global is a diversified holding company. Through its subsidiaries, it focuses on consulting, fintech, AI, robotics, and cybersecurity. Based in Kuala Lumpur, Malaysia, our main operations are centered in Asia, with significant visibility across Asia Pacific, the United States, Europe, and the Middle East. VCIG primarily offers consulting services in capital markets, real estate, AI, and technology. In technology businesses, the Company operates a proprietary financing platform that serves companies and individuals, as well as a secured messaging platform serving governments and organizations. We also invest, incubate, accelerate, and commercialize businesses and technologies in AI and robotics.

 

For more information on the Company, please log on to https://v-capital.co/. 

 

Cautionary Note Regarding Forward-Looking Statements

 

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators, future regulations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the “Risk Factors” section of the Annual Report on 20-F of the Company for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (“SEC”) on April 30, 2024, and its subsequent SEC filings. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

 

CONTACT INFORMATION:

 

For media queries, please contact:

 

VCI Global Limited

enquiries@v-capital.co

 

 

 

View original content:

https://www.globenewswire.com/en/news-release/2024/08/19/2932096/0/en/VCI-Global-Announces-44-Revenue-Growth-in-Its-Financial-Results-for-the-Six-Months-Ended-June-30-2024-Announces-US-10-Million-Share-Repurchase-Program-Over-2-Years.html

 

 

5

 

 

Financial Tables

 

VCI Global Limited and Its Subsidiaries

Interim Condensed Consolidated Statements of Financial Position

 

   As of
June 30,
2024
(Unaudited)
   As of
December 31,
2023
(Audited)
 
   USD   USD 
ASSETS        
         
Non-current assets        
Financial assets measured at fair value through other comprehensive income   9,407,260    8,360,497 
Financial assets measured at fair value through profit and loss   15,814    15,861 
Property and equipment   798,309    696,865 
Right-of-use of assets   184,790    262,337 
Intangible assets   1,661,734    1,024,316 
Loan receivables   8,318,386    4,619,070 
Deferred tax assets   72,002    74,009 
Total non-current assets   20,458,295    15,052,955 
           
Current assets          
Trade and other receivables   30,105,568    6,308,063 
Loan receivables   4,990,001    3,350,889 
Cash and bank balances   1,244,958    1,010,455 
Income tax asset   -    - 
Total current assets   36,340,527    10,669,407 
           
Total assets   56,798,822    25,722,362 
           
LIABILITIES AND EQUITY          
           
Current liabilities          
Trade and other payables   4,457,488    4,223,722 
Warrant liabilities   1,614,286    428,025 
Lease liabilities   135,395    154,788 
Bank and other borrowings   150,031    147,577 
Income tax payable   149,701    54,739 
Total current liabilities   6,506,901    5,008,851 
           
Non-current liabilities          
Lease liabilities   56,250    118,749 
Bank and other borrowings   36,132    53,455 
Amount due to related parties   -    283,346 
Total non-current liabilities   92,382    455,550 
           
Total liabilities   6,599,283    5,464,401 

 

 

6

 

 

VCI Global Limited and Its Subsidiaries

Interim Condensed Consolidated Statements of Financial Position (Unaudited)

 

   As of
June 30,
2024
(Unaudited)
   As of
December 31,
2023
(Audited)
 
   USD   USD 
Capital and reserves        
Share capital   36,374,551    9,589,508 
Capital reserve   1,384,838    1,423,433 
Fair value reserve   (1,132,440)   365,389 
Translation reserve   1,163,566    587,526 
Retained earnings   13,674,424    9,183,823 
Attributable to equity owners of the Company   51,464,939    21,149,679 
Non-controlling interests   (1,265,400)   (891,718)
Total equity   50,199,539    20,257,961 
Total equity and liabilities   56,798,822    25,722,362 

 

 

7

 

 

VCI Global Limited and Its Subsidiaries

Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

   Six months
ended
June 30,
2024
   Six months
ended
June 30,
2023
 
   USD   USD 
Revenue   13,033,862    9,525,310 
Revenue – related party   692,839    - 
Total revenue   13,726,701    9,525,310 
Other income   104,172    225,992 
Cost of services   (844,052)   (1,295,922)
Depreciation   (108,235)   (58,790)
Directors’ fees   (2,262,483)   (1,164,477)
Employee benefits expenses   (1,633,475)   (1,664,608)
Impairment allowance on trade receivables   (78,110)   - 
Rental expenses   (57,059)   (32,124)
Legal and professional fees   (748,571)   (315,736)
Finance cost   (6,102)   (3,401)
Other operating expenses   (2,530,143)   (785,912)
Profit before income tax   5,562,643    4,430,332 
Income tax expense   (175,189)   (134,138)
Profit for the period   5,387,454    4,296,194 
Other comprehensive income/(loss):          
Currency translation arising from consolidation   -    272,678 
Fair value adjustment on financial assets measured at fair value through other comprehensive income   (1,173,700)   - 
Transfer upon disposal of equity instruments   (1,487,922)   - 
Total comprehensive income for the period   2,725,832    4,568,872 
           
Profit attributable to:          
Equity owners of the Company   5,916,519    4,542,382 
Non-controlling interests   (529,065)   (246,188)
Total   5,387,454    4,296,194 
           
Total comprehensive income attributable to:          
Equity owners of the Company   3,254,897    4,815,060 
Non-controlling interests   (529,065)   (246,188)
Total   2,725,832    4,568,872 

 

 

8

 

 

VCI Global Limited and Its Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows (Unaudited)

 

   Six months
ended
June 30,
2024
   Six months
ended
June 30,
2023
 
   USD   USD 
Operating activities        
Profit before income tax   5,562,643    4,430,332 
Adjustments for:          
Impairment allowance of trade receivables   78,110    - 
Reversal on impairment allowance of trade receivable   (13,649)   - 
Bad debt written-off   189    - 
Unrealised foreign exchange (gain)/loss   (20,182)   172,498 
Depreciation of property and equipment   37,802    24,792 
Depreciation of ROU   70,433    33,998 
Share based payment – Director fees   1,265,377    - 
Gain on disposal of investment   -    (167,167)
Interest expense   6,102    3,401 
Interest income   (799)   (202)
Operating cash flow before movement in working capital   6,986,026    4,497,652 
Trade and other receivables   (5,758,606)   (8,615,611)
Loan receivables   (5,632,631)   - 
Trade and other payables   348,285    546,538 
Cash used in operations   (4,056,926)   (3,571,421)
Interest received   -    - 
Income tax paid   (78,742)   (109,073)
Net cash used in operating activities   (4,135,668)   (3,680,494)
           
Investing activities          
Purchase of property and equipment   (158,289)   (138,375)
Purchase of intangible assets   (665,191)   - 
Interest received   799    202 
Acquisition of financial assets measured at fair value through other comprehensive income   (5,700,000)   - 
Proceeds from disposal of financial assets measured at fair value through other comprehensive income   1,910,350    2,913,530 
Net cash (used in)/ generated from investing activities   (4,612,331)   2,775,357 
           
Financing activities          
Proceeds from issuance of share capital   6,471,433    - 
Proceeds from initial public offering, net of issuance costs   -    3,739,990 
Proceeds from following public offering, net of issuance costs   2,314,050    - 
Interest paid   (6,102)   (3,401)
Repayment of other borrowings   (16,433)   (21,665)
Advance to related parties   (275,663)   (336,113)
Repayment of operating lease   (67,461)   (34,142)
Contribution from non-controlling interest   131,206    - 
Net cash generated from financing activities   8,551,030    3,344,669 

 

 

9

 

 

VCI Global Limited and Its Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows (Unaudited)

 

   Six months
ended
June 30,
2024
   Six months
ended
June 30,
2023
 
   USD   USD 
Net (decrease)/ increase in cash and cash equivalents   (196,969)   2,439,532 
Effect of foreign exchange   431,472    (11,702)
Cash and bank balances at beginning of the period   1,010,455    856,058 
Cash and bank balances at end of the period   1,244,958    3,283,888 

 

 

10

 

 


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