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Agape ATP (ATPC) - 2024 Q4 - Annual Report
ATPCAgape ATP (ATPC)2025-03-31 18:26

Revenue Performance - Total revenue for the year ended December 31, 2024 decreased by 108,341,orapproximately7.6108,341, or approximately 7.6%, compared to 2023, with network marketing revenue dropping by 259,072, or approximately 65.4%[158] - Revenue from the provision of complementary health therapies increased by 87,622,orapproximately8.587,622, or approximately 8.5%, during the same period[159] - The company launched new revenue streams in wellness and wellbeing lifestyle and green energy, contributing 64,854 in revenue[159] Cost and Expenses - Cost of revenue for 2024 amounted to 563,599,representingapproximately42.6563,599, representing approximately 42.6% of revenue, an increase of 69,083, or approximately 14.0% from 2023[161] - Gross profit for 2024 was 759,148,withagrossmarginofapproximately57.4759,148, with a gross margin of approximately 57.4%, down from 936,572 and 65.4% in 2023[163] - Selling expenses for 2024 significantly decreased by 466,291,orapproximately74.1466,291, or approximately 74.1%, totaling 162,712 compared to 629,003in2023[166]Generalandadministrativeexpensesincreasedby629,003 in 2023[166] - General and administrative expenses increased by 768,858, or approximately 32.4%, totaling 3,134,874in2024duetohigherexecutivesalariesandNasdaqlistingfees[168]NetLossandCashFlowNetlossfortheyearendedDecember31,2024was3,134,874 in 2024 due to higher executive salaries and Nasdaq listing fees[168] Net Loss and Cash Flow - Net loss for the year ended December 31, 2024 was 2,486,044, an increase of 376,109,orapproximately17.8376,109, or approximately 17.8%, compared to the previous year[171] - Working capital as of December 31, 2024 was 1,656,571, a decrease from 4,113,614in2023[172]Netcashusedinoperatingactivitiesfor2024was4,113,614 in 2023[172] - Net cash used in operating activities for 2024 was 2,726,215, compared to 2,001,823in2023[173]NetcashusedinfinancingactivitiesfortheyearendedDecember31,2024was2,001,823 in 2023[173] - Net cash used in financing activities for the year ended December 31, 2024 was 11,856, primarily for the reduction of finance lease liability[177] - Net cash provided by financing activities for the year ended December 31, 2023 was 5,398,037,consistingofproceedsfromissuanceofcommonstockof5,398,037, consisting of proceeds from issuance of common stock of 5,501,520, cash used for shares repurchased of 93,889,andreductionoffinanceleaseliabilityof93,889, and reduction of finance lease liability of 9,594[177] Inventory and Credit Management - The company recognized an inventory write-down of 7,081fortheyearendedDecember31,2024,comparedto7,081 for the year ended December 31, 2024, compared to 0 for 2023[181] - The allowance for expected credit loss increased to 32,857fortheyearendedDecember31,2024,from32,857 for the year ended December 31, 2024, from 542 in 2023[185] - Credit risk is primarily associated with accounts receivable, which the company mitigates through ongoing credit evaluations and short collection terms[214] - The company does not generally require collateral from customers, relying instead on credit evaluations[214] - The need for an allowance for doubtful accounts is evaluated based on specific customer credit risk, historical trends, and other relevant information[214] Accounting and Financial Reporting - The company adopted ASU 2014-09 for revenue recognition, which requires identifying performance obligations and recognizing revenue when control of goods and services transfers to customers[188] - The company derives revenues from sales contracts recognized when control of skin care, health, and wellness products is transferred to customers[191] - The company provides products and services for sustainability and energy savings, recognizing revenue based on the percentage of cost incurred[198] - The adoption of recent accounting standards has no material impact on the consolidated financial statements for the year ended December 31, 2024[211] Foreign Currency and Risk Management - The majority of the company's revenues are denominated in Malaysian Ringgit, while expenses are in Malaysian Ringgit, U.S. Dollar, and Hong Kong Dollar[212] - The company does not currently hedge exposures denominated in foreign currencies or use derivative financial instruments[212] - The value of the company's Common Stock may be affected by the foreign exchange rates between U.S. Dollar and Malaysian Ringgit, and U.S. Dollar and Hong Kong Dollar[213]