2023 Q4 Form 20-F Financial Statement

#000121390024047264 Filed on May 29, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022 Q4
Revenue $16.94M $16.94M $8.513M
YoY Change 99.03% 99.03%
Cost Of Revenue $11.56M $11.56M $4.310M
YoY Change 168.14% 168.14%
Gross Profit $5.387M $5.387M $4.203M
YoY Change 28.17% 28.17%
Gross Profit Margin 31.8% 31.8% 49.37%
Selling, General & Admin $2.108M $2.108M $1.750M
YoY Change 20.51% 11.87%
% of Gross Profit 39.14% 39.14% 41.63%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $116.8K $233.7K $129.6K
YoY Change -9.87% 34.9%
% of Gross Profit 2.17% 4.34% 3.08%
Operating Expenses $2.342M $2.342M $1.923M
YoY Change 21.8% 24.27%
Operating Profit $3.045M $3.045M $2.280M
YoY Change 33.54% 31.34%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $3.045M $3.045M $2.280M
YoY Change 33.54% 33.54%
Income Tax $607.2K $607.2K $362.6K
% Of Pretax Income 19.94% 19.94% 15.9%
Net Earnings $2.438M $2.438M $1.918M
YoY Change 27.13% 27.13%
Net Earnings / Revenue 14.39% 14.39% 22.53%
Basic Earnings Per Share $0.09
Diluted Earnings Per Share $0.08 $0.09 $0.07
COMMON SHARES
Basic Shares Outstanding 27.00M shares 27.00M shares
Diluted Shares Outstanding 27.00M shares

Balance Sheet

Concept 2023 Q4 2023 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $134.4K $134.4K
YoY Change -38.2%
Cash & Equivalents $134.4K $134.4K $217.4K
Short-Term Investments
Other Short-Term Assets $869.5K $869.5K
YoY Change 48.35%
Inventory $153.2K $153.2K $2.072M
Prepaid Expenses $274.4K
Receivables $5.973M $5.973M $33.38K
Other Receivables $0.00 $0.00
Total Short-Term Assets $7.130M $7.130M $2.979M
YoY Change 139.32% 139.32%
LONG-TERM ASSETS
Property, Plant & Equipment $134.5K $175.0K $368.2K
YoY Change -63.46% -60.17%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $44.25K $44.25K
YoY Change 222.29%
Total Long-Term Assets $219.2K $219.2K $453.0K
YoY Change -51.61% -51.61%
TOTAL ASSETS
Total Short-Term Assets $7.130M $7.130M $2.979M
Total Long-Term Assets $219.2K $219.2K $453.0K
Total Assets $7.349M $7.349M $3.432M
YoY Change 114.12% 114.12%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $0.00 $200.6K
YoY Change -100.0%
Accrued Expenses $466.1K $466.1K
YoY Change 309.75%
Deferred Revenue
YoY Change
Short-Term Debt $777.9K $777.9K
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.396M $2.396M $902.6K
YoY Change 165.51% 165.51%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $0.00
YoY Change -100.0%
Total Long-Term Liabilities $0.00 $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.396M $2.396M $902.6K
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $2.396M $2.396M $920.3K
YoY Change 160.38% 160.38%
SHAREHOLDERS EQUITY
Retained Earnings $4.309M $1.871M
YoY Change 130.32%
Common Stock $2.700K $2.700K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.953M $4.953M $2.512M
YoY Change
Total Liabilities & Shareholders Equity $7.349M $7.349M $3.432M
YoY Change 114.12% 114.12%

Cashflow Statement

Concept 2023 Q4 2023 2022 Q4
OPERATING ACTIVITIES
Net Income $2.438M $2.438M $1.918M
YoY Change 27.13% 27.13%
Depreciation, Depletion And Amortization $116.8K $233.7K $129.6K
YoY Change -9.87% 34.9%
Cash From Operating Activities -$232.1K -$863.6K -$97.83K
YoY Change 137.29% -818.12%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $29.73K
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 -$29.73K
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 185.9K $780.6K -64.10K
YoY Change -390.03% 35.3%
NET CHANGE
Cash From Operating Activities -232.1K -$863.6K -97.83K
Cash From Investing Activities 0.000 -29.73K
Cash From Financing Activities 185.9K $780.6K -64.10K
Net Change In Cash -46.23K -$83.03K -191.7K
YoY Change -75.88% -138.44%
FREE CASH FLOW
Cash From Operating Activities -$232.1K -$863.6K -$97.83K
Capital Expenditures $0.00 $29.73K
Free Cash Flow -$232.1K -$863.6K -$127.6K
YoY Change 81.98% 139.29%

Facts In Submission

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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0in"></td><td style="width: 0.5in; text-align: left"><b>1.</b></td><td style="text-align: justify"><b>General information and basis of operation</b></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Top Wealth Group Holding Limited is a limited liability company incorporated in incorporated in the Cayman Islands. Top Wealth Group Holding Limited together with its subsidiaries are defined as the “Company”. As of the date of this report, the Company immediate and ultimate parent company is Winwin Development Group Limited (“Winwin”). As of the date of this report, Winwin is 90% owned by Mr. Wong Kim Kwan Kings and 10% owned by Mr. Chong Kin Fai. As of the date of this report, details of the Company and its subsidiaries are as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-indent: -0.125in; padding-left: 0.125in; border-bottom: Black 1.5pt solid; text-align: left; width: 29%"><span style="font-size: 10pt"><b>Name of entity</b></span></td> <td style="padding-bottom: 1.5pt; text-align: center; width: 1%"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center; width: 22%"><span style="font-size: 10pt"><b>Date of incorporation</b></span></td> <td style="padding-bottom: 1.5pt; text-align: center; width: 1%"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center; width: 24%"><span style="font-size: 10pt"><b>Holding company </b></span></td> <td style="padding-bottom: 1.5pt; text-align: center; width: 1%"><b> </b></td> <td style="border-bottom: Black 1.5pt solid; text-align: center; width: 22%"><span style="font-size: 10pt"><b>Nature of business</b></span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-size: 10pt">Top Wealth Group Holding Limited</span></td> <td> </td> <td><span style="font-size: 10pt">February 1, 2023</span></td> <td> </td> <td><span style="font-size: 10pt">Winwin Development Group Limited</span></td> <td> </td> <td><span style="font-size: 10pt">Investment holding</span></td></tr> <tr style="vertical-align: top; "> <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-size: 10pt">Top Wealth (BVI) Group Limited</span></td> <td> </td> <td><span style="font-size: 10pt">January 18, 2023</span></td> <td> </td> <td><span style="font-size: 10pt">Top Wealth Group Holding Limited</span></td> <td> </td> <td><span style="font-size: 10pt">Investment holding</span></td></tr> <tr style="vertical-align: top; background-color: rgb(204,238,255)"> <td style="text-indent: -0.125in; padding-left: 0.125in"><span style="font-size: 10pt">Top Wealth Group (International) Limited</span></td> <td> </td> <td><span style="font-size: 10pt">September 22, 2009 </span></td> <td> </td> <td><span style="font-size: 10pt">Top Wealth (BVI) Group Limited</span></td> <td> </td> <td><span style="font-size: 10pt">Trading of caviar</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On March 21, 2023, the Company acquired 100% interest in Top Wealth (BVI) Group Limited (“Top Wealth BVI”), a company incorporated in the British Virgin Islands, at a nominal value of US$10 from the shareholders of Winwin. On March 24, 2023, the Company, through Top Wealth BVI, acquired 100% interest in the Top Wealth Group (International) Limited (“Top Wealth International”), a company incorporated and operating in Hong Kong, at a nominal consideration of US$10 from the shareholders of Winwin.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On April 28, 2023, 650 ordinary shares were issued at par value.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On October 12, 2023, in contemplation of Company’s initial public offering, the Company further issued 26,999,250 ordinary shares in aggregate to its shareholders at par value, on a pro rata basis proportional to the shareholders’ existing equity interests (collectively refers as the “Pro Rata Share Issuance”), which have been treated as share split. After the Pro Rata Share Issuance, 27,000,000 Ordinary Shares are issued and outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As of December 31, 2023, the Company’s shareholders were as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify; border-bottom: Black 1.5pt solid"><b>Name of shareholder</b></td><td style="padding-bottom: 1.5pt"><b> </b></td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Percentage<br/> of interest</b></td><td style="padding-bottom: 1.5pt"><b> </b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: justify">Winwin Development Group Limited</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">74.67</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Beyond Glory Worldwide Limited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Keen Sky Global Limited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.93</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">State Wisdom Holdings Limited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.93</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Snow Bear Capital Limited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.33</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: justify">Mercury Universal Investment Limited</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.54</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Greet Harmony Global Limited</span></td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.20</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Top Wealth International have been trading Caviar. During the periods covered in these consolidated financial statements, the control of the entities has remained consistent, with Top Wealth Group Holding Limited always exercising control. Consequently, the combination has been considered as a corporate restructuring (“Reorganization”) of entities under common control. In compliance with ASC 805-50-45-5, the entities under common control are presented on a combined basis for all periods during which they were under common control. The current capital structure is retroactively reflected in prior periods as if it had existed at that time.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The consolidation of Top Wealth Group Holding Limited and its subsidiaries has been accounted for at historical cost and prepared as if the aforementioned transactions had been effective from the beginning of the first period presented in the accompanying consolidated financial statements.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><b>Use of Estimates</b>—The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the recorded amounts of assets, liabilities, shareholders’ equity, revenues and expenses during the reporting period, and the disclosure of contingent liabilities at the date of the consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">On an ongoing basis, management reviews its estimates and if deemed appropriate, those estimates are adjusted. The most significant estimates include allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property and equipment, valuation allowance for deferred tax assets, accruals for potential liabilities and contingencies. Actual results could vary from the estimates and assumptions that were used.</p>
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EntityAddressPostalZipCode
00000
CY2023 dei Entity Central Index Key
EntityCentralIndexKey
0001978057

Files In Submission

Name View Source Status
0001213900-24-047264-index-headers.html Edgar Link pending
0001213900-24-047264-index.html Edgar Link pending
0001213900-24-047264.txt Edgar Link pending
0001213900-24-047264-xbrl.zip Edgar Link pending
ea0205990-20f_topwealth.htm Edgar Link pending
ea020599001ex1-1_topwealth.htm Edgar Link pending
ea020599001ex11-2_topwealth.htm Edgar Link pending
ea020599001ex12-1_topwealth.htm Edgar Link pending
ea020599001ex12-2_topwealth.htm Edgar Link pending
ea020599001ex13-1_topwealth.htm Edgar Link pending
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ea020599001ex8-1_topwealth.htm Edgar Link pending
ex1-1_001.jpg Edgar Link pending
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Financial_Report.xlsx Edgar Link pending
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MetaLinks.json Edgar Link pending
FilingSummary.xml Edgar Link unprocessable
ea0205990-20f_topwealth_htm.xml Edgar Link completed
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report.css Edgar Link pending
Show.js Edgar Link pending
twg-20231231.xsd Edgar Link pending
twg-20231231_def.xml Edgar Link unprocessable
twg-20231231_lab.xml Edgar Link unprocessable
twg-20231231_pre.xml Edgar Link unprocessable
twg-20231231_cal.xml Edgar Link unprocessable