Revenue Increases to $8.25 Million Scalable Infrastructure in Place to Drive Transformative 2025 Hong Kong, April 14, 2025 (GLOBE NEWSWIRE) -- VS MEDIA Holdings Limited (Nasdaq: VSME), a leading digital media and social commerce company in the global Creator Economy, today issued its year-end business update and announced the filing of its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC). The report is available on the SEC’s webs ...

Advertising Industry and Market Dynamics - The advertising industry in HK SAR, Taiwan, and Singapore is highly competitive, with increased competition leading to potential price reductions and smaller profit margins [64]. - Revenue is primarily derived from Brand clients' advertising budgets, which are influenced by macro-economic factors and industry trends [65]. - The company faces uncertainties in the advertising industry, including competition and changing governmental policies that could affect operations [73]. - The ability to adapt to rapidly changing technologies is vital; failure to do so may lead to losing Brand clients [74]. - The public image of the company and its Brand clients is important; negative feedback could adversely affect business operations [75]. - The company may face significant competition in the Social Commerce market, which could affect profitability and growth prospects [95]. - The revenue and growth of the Social Commerce industry are sensitive to market trends, which could adversely impact the company's financial condition if consumer spending decreases [114]. - The company faces high levels of competition in the Marketing Services and Social Commerce industries in HK SAR, which may impact its business operations [145]. Financial Performance and Risks - As of December 31, 2024, the company reported a working capital deficit of $933,247 and an accumulated deficit of $28,501,074 [90]. - The net cash used in operating activities for the year ended December 31, 2024, was $1,487,388 [90]. - The company plans to raise approximately $2,000,000 to fund operations for the next 12 months through private placement or financial borrowings [91]. - The company faces significant credit risk in collecting accounts receivables from Brand clients, which could adversely affect its liquidity [81]. - Revenue from Marketing Services is subject to seasonal fluctuations, with higher revenue typically recorded in the fourth quarter [93]. - The company has raised substantial doubt about its ability to continue as a going concern due to accumulated deficits and cash outflows [90]. - The company may not be able to obtain additional capital in a timely manner or on acceptable terms, which could adversely affect its financial condition [92]. - The company may face liquidity gaps due to mismatches in payment timing between Creator clients and suppliers, potentially leading to higher funding requirements [115]. Business Model and Client Relationships - The business model is project-based, leading to non-recurring revenue, making it essential to retain existing clients and attract new ones [77]. - Maintaining good relationships with Creators is crucial for business growth, as their engagement is not exclusive and can impact revenue [67]. - The success of Marketing Services depends on the volume of viewer traffic to Creators' social media channels, which is critical for attracting audiences [76]. - The company relies on maintaining relationships with existing Creators and attracting new Creators for future growth [96]. - Revenue growth is dependent on the ability to execute business strategies effectively, which requires significant managerial, financial, and human resources [97]. Regulatory and Compliance Challenges - The company operates in a regulated industry in HK SAR, which may incur ongoing compliance costs and risks of penalties for non-compliance [126]. - The company is subject to evolving laws and regulations regarding cybersecurity and data protection, with potential adverse effects on operations if compliance is not maintained [130]. - The company may need to divert resources to comply with increased regulatory scrutiny, potentially impacting its operational focus [146]. - The company is subject to various laws regarding competition in HK SAR, and any failure to comply could adversely affect its business and financial condition [145]. Operational and Strategic Initiatives - The company has developed two business models: Marketing Services and Social Commerce, aimed at supporting Creators and Brands [250]. - The Marketing Services model assists Brands in developing content strategies and helps Creators monetize their influence through advertising revenue [251]. - The Social Commerce model involves purchasing products from Brands and reselling them to Creators to facilitate their eCommerce businesses [253]. - Future strategies include expanding the Brand portfolio and Social Commerce business, and extending geographical reach in Asia and North America [259]. - The company plans to develop a systematic Creator incubation program to discover and grow more Creators, particularly in the Asia Pacific region [259]. - The company is selectively pursuing strategic alliances and acquisition opportunities to support future business growth [259]. Corporate Governance and Shareholder Matters - The dual-class voting structure allows holders of Class A Ordinary Shares one vote per share, while Class B Ordinary Shares holders have 18 votes per share, with Amazing Grace Limited owning 45.32% of the aggregate voting power [175]. - Significant shareholders have considerable influence over corporate matters, including electing directors and approving major transactions, which may limit the ability of other shareholders to influence decisions [178]. - The company is classified as a controlled company under Nasdaq rules, which may result in a board of directors that lacks a majority of independent directors, affecting investor perception [214]. - The company lacks experience in managing a U.S.-listed company, which may adversely affect its business, financial condition, and results of operations [197]. Legal and Litigation Risks - The company may face litigation risks due to increased visibility from public disclosures, which could harm its business and operating results [218]. - Legal processes may be difficult to enforce due to the company's incorporation in the British Virgin Islands and operations primarily in HK SAR, Taiwan, and Singapore [185]. - The company is exposed to potential claims related to product liability and intellectual property rights, which could incur substantial costs [109][111]. Internal Control and Audit Matters - The company identified material weaknesses in its internal control over financial reporting, including a lack of qualified accounting personnel and resources [223]. - The company plans to hire more qualified accounting personnel and engage an external consulting firm to improve its internal control and compliance with Sarbanes-Oxley requirements [223]. - The company's financial statements for the fiscal year ended December 31, 2022, were audited by WWC, P.C., and for the fiscal years ended December 31, 2024 and 2023, by Assentsure PAC [151]. Market and Economic Factors - Macroeconomic factors, including GDP growth and consumer spending patterns, could materially affect the company's business and financial condition [123]. - Political and social unrest in HK SAR could adversely impact the company's business operations and financial condition [121]. - The currency peg system in HK SAR may change, affecting the company's financial statements and cash flows if the exchange rate fluctuates significantly [125]. - The Chinese government has increased supervision of Chinese firms listed offshore, which may negatively impact the company's operations and securities value [146].

Core Insights - VS Media has successfully integrated ST Meng PTE LTD, MLink Limited, and the CRUUSH platform, enhancing its capabilities in creator-driven commerce and accelerating revenue growth and profitability [1][5][6] Group 1: Strategic Acquisitions and Integrations - The acquisition of a 21% stake in ST Meng PTE LTD has allowed VS Media to incorporate its sourcing and distribution expertise into its supply chain, improving procurement efficiency and reducing costs [2] - MLink Limited's integration has unlocked new contracts in luxury, hospitality, and entertainment sectors, enhancing VS Media's digital marketing and influencer-driven services [3] - The CRUUSH platform has shown early success in influencer-led e-commerce, utilizing AI for influencer matching and real-time analytics, leading to higher engagement and sales conversion rates [4] Group 2: Business Model and Revenue Growth - With the integration of MLink and CRUUSH, along with ST Meng's capabilities, VS Media operates a more scalable and diversified business model, strengthening its global reach [5] - The company is exploring further strategic acquisitions in North America and Southeast Asia to enhance its cross-border e-commerce capabilities [5] - CEO Ivy Wong emphasized that the synergies from these acquisitions are driving sustained profitability and long-term shareholder value [6]

Core Insights - VS Media is focused on accelerating growth, expanding global reach, and strengthening profitability to enhance long-term shareholder value [1] Growth Strategies - The company's growth strategies in 2025 are centered around three key pillars: building proprietary product IPs, increasing profit margins, and expanding global influence [3][7] - By developing its own product IPs, VS Media anticipates reducing product costs and enhancing profitability [4] Strategic Acquisitions - VS Media has made several strategic acquisitions to bolster its capabilities: - Acquired 21% of ST Meng PTE LTD, enhancing product sourcing capabilities with reported revenues of approximately USD 6.25 million and a net profit of approximately USD 1.26 million for the thirteen months ended December 31, 2024 [5] - Acquired 100% of MLink Limited, a full-service agency in Macau, to expand its presence and revenue opportunities in the region [5] - Acquired the CRUUSH platform, which integrates influencer marketing with e-commerce, leveraging AI-driven analytics [5] Enhanced Product Sourcing - The company aims to diversify and strengthen its product sourcing channels through partnerships and acquisitions, enabling it to secure exclusive products and improve supply chain efficiency [5][8] Collaborations and Logistics Optimization - VS Media plans to collaborate with manufacturers and brands to develop unique products, thereby creating proprietary intellectual properties [5] - The company intends to enhance logistics efficiency by integrating its platform with strategic partnerships or acquisitions of logistics companies [6] Global Partnerships - VS Media is focused on collaborating with global Multi-Channel Networks (MCNs) and media companies to broaden its global fanbase and expand international audience reach [12]

Group 1 - VS Media (NASDAQ:VSME) stock is experiencing significant pre-market trading activity, with over 12.4 million shares traded, far exceeding its daily average of approximately 312,000 shares [1] - The stock's movement is occurring without any news from VS Media, including a lack of press releases or SEC filings, indicating that the rally may be driven by speculative trading [1] - VSME is classified as a penny stock, with a prior closing price of 73 cents and a market capitalization of $2.365 million, which contributes to its volatility [1][2] Group 2 - As of Thursday morning, VSME stock has increased by 86.3%, highlighting the potential for rapid price changes in penny stocks [2] - The volatility of penny stocks can lead to unpredictable price movements, often influenced by speculative traders or retail investors engaging in pump and dump schemes [2]

Group 1 - VS Media Holdings Limited has amended the effective date for its reverse stock split to June 18, 2024, due to an unexpected delay in obtaining regulatory clearances [1] - The company initially planned for the reverse split to take effect after the close of business on June 17, 2024, with trading on a split-adjusted basis starting on June 17, 2024 [1] Group 2 - VS Media Holdings Limited manages a network of over 1,500 digital creators and collaborates with more than 1,000 brands across the Asia Pacific region [2] - The company was founded in 2013 and is expanding its operations internationally, including markets such as Hong Kong, China, Taiwan, and Singapore [2]

Company Overview - VS Media Holdings Limited (NASDAQ: VSME) is a leader in managing a global network of digital creators, focusing on content-driven social commerce and effective marketing services for brands [2] - The company was founded in 2013 and has partnered with over 1,500 creators and more than 1,000 brands, expanding its operations internationally across regions such as Hong Kong, China, Taiwan, and Singapore [2] Recent Developments - The company announced a change in the effective date for its reverse stock split, now set for June 18, 2024, due to an unexpected delay in obtaining necessary regulatory clearances [1] - Initially, the reverse stock split was planned to take effect after the close of business on June 17, 2024, with trading on a split-adjusted basis expected to begin on the same day [1]

Core Points - VS Media Holdings Limited plans to implement a 1-for-7 share combination of its Class A and Class B ordinary shares, effective June 17, 2024 [1][2] - The objective of the share combination is to regain compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintain its listing on the Nasdaq Capital Market [2] - The share combination was approved by the Company's board of directors on June 5, 2024, and by its shareholders on June 10, 2024 [3] Company Overview - VS Media Holdings Limited manages a network of leading digital creators across the Asia Pacific region, focusing on content-driven social commerce and effective marketing services for brands [4] - The Company was founded in 2013 and partners with over 1,500 creators and more than 1,000 brands to promote and merchandise products and services [4] - VS Media is currently expanding its operations internationally, including markets in Hong Kong, China, Taiwan, and Singapore [4]

Core Insights - VS Media Holdings Limited (VSME) reported a strong financial performance with nearly $8 million in revenue for fiscal year 2023 and anticipates a 20% revenue growth year-over-year for fiscal year 2024 [2][3] - The company has initiated a share repurchase program to buy back up to 500,000 Class A Ordinary Shares, reflecting confidence in its long-term business fundamentals [3] - Recent strategic investments and partnerships, including a collaboration with MeeshQ and The Pinkfong Company, aim to expand VSME's market presence and enhance revenue opportunities [3][4] Financial Performance - VSME achieved a 12.7% increase in campaign-based marketing, showcasing growth in its creator and brand base [2] - The company expects business activities to recover, driven by cross-regional brand partnerships and the resumption of social commerce [2] Strategic Developments - In February 2024, VSME made a strategic investment in MeeshQ, connecting global talents with local brands in Asia Pacific, and plans to launch ventures featuring high-profile talents [3] - VSME partnered with The Pinkfong Company and King Parrot Group to launch a family-oriented event in Hong Kong, demonstrating its ability to collaborate with top-tier content creators [4] - The company expanded into Macau, signing marketing services deals with major local entities to enhance brand awareness and engagement [5] Company Overview - Founded in 2013, VSME manages a network of over 1,500 digital creators and 1,000 brands across Asia Pacific, focusing on content-driven social commerce and effective marketing services [7]

Core Insights - VS Media Holdings Limited (VSME) reported a strong financial performance with nearly $8 million in revenue for fiscal year 2023 and anticipates a 20% revenue growth for fiscal year 2024 [2][3] - The company is actively expanding its market presence through strategic partnerships and investments, including a collaboration with MeeshQ and a new venture in Macau [3][5] Financial Performance - VSME achieved a 12.7% increase in campaign-based marketing [2] - The company expects a revenue growth of 20% year-over-year for fiscal year 2024 [2] Strategic Initiatives - The Board of Directors approved a share repurchase program allowing the purchase of up to 500,000 Class A Ordinary Shares [3] - VSME entered a strategic investment in MeeshQ, connecting global talents with local brands in Asia Pacific [3] - A partnership with The Pinkfong Company and King Parrot Group led to the launch of a family-oriented event in Hong Kong [4] Market Expansion - VSME expanded into Macau, enhancing its presence in the Asian market and signing marketing service deals with major local entities [5] - The company is leveraging its experience in digital marketing and influencer engagement to support Macau businesses [5] Future Outlook - VSME is confident in its long-term business fundamentals and looks forward to continued growth and success in 2024 and beyond [6]