Greenpro Capital(US:GRNQ)2024-11-13 13:43Revenue Performance - Total revenue for Q3 2024 was $539,699, a decrease of 49.6% from $1,070,972 in Q3 2023, primarily due to a decline in business services revenue [124]. - Business services revenue decreased to $521,765 in Q3 2024 from $1,043,360 in Q3 2023, attributed to fewer completed listing service obligations [125]. - Rental revenue fell to $17,934 in Q3 2024 from $27,612 in Q3 2023, a decrease of 35% due to the distribution of 40% of real estate properties to non-controlling interest [126]. - Total revenue for the nine months ended September 30, 2024, was $1,559,272, down 32.5% from $2,309,592 in the same period of 2023 [137]. - Related party service revenue for the nine months ended September 30, 2024, totaled $347,570, down from $1,232,526 in 2023, representing a decline of approximately 72% [158]. Operating Costs and Losses - Total operating costs and expenses were $1,012,972 in Q3 2024, down from $1,207,517 in Q3 2023, reflecting a decrease of 16.1% [127]. - Loss from operations increased to $473,273 in Q3 2024 compared to $136,545 in Q3 2023, driven by reduced revenue [128]. - Net loss for Q3 2024 was $330,320, compared to a net loss of $120,994 in Q3 2023, indicating a worsening financial position [135]. - Net loss for the nine months ended September 30, 2024, was $1,168,983, contrasting with a net income of $6,563,458 in the same period of 2023, primarily due to the absence of significant reversals of impairments [149]. - The Company incurred a net loss of $1,168,983 for the nine months ended September 30, 2024, contributing to an accumulated deficit of $37,707,535 [181]. Cash Flow and Financial Position - As of September 30, 2024, the cash balance was $1,027,513, down from $2,223,197 on December 31, 2023, indicating a decrease of $1,195,684 [180]. - Net cash used in operating activities was $1,191,874 for the nine months ended September 30, 2024, compared to $1,293,574 in 2023, showing a decrease of approximately 8% [184]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was $333,265, compared to a net cash used of $14,710 for the same period in 2023 [186]. - Net cash used in financing activities increased from $66,763 in 2023 to $183,533 in 2024, primarily due to advances to related parties of $180,994 [187]. Expenses and Adjustments - General and administrative expenses decreased to $868,333 in Q3 2024 from $978,023 in Q3 2023, a reduction of 11.3% [133]. - Related party G&A expenses increased to $122,127 for the nine months ended September 30, 2024, compared to $90,407 in 2023, reflecting an increase of approximately 35% [162]. - Non-cash adjustments for the nine months ended September 30, 2023, totaled $7,106,692, mainly from the reversal of impairment of other investments of $6,882,000 [185]. Future Outlook - The company expects revenue from business services and real estate segments to slightly decline in the coming months due to expiring tenancies and potential lower rental rates [137]. - Future minimum rental payments under a non-cancellable operating lease in Hong Kong are approximately $44,554, with $24,518 due in 2024 and $20,036 in 2025 [156]. Cybersecurity Management - The company has integrated cybersecurity risk management into its overall risk management framework to enhance decision-making processes [188]. - The company conducts thorough security assessments of all third-party providers before engagement and maintains ongoing monitoring to ensure compliance with cybersecurity standards [189]. - The company has not encountered cybersecurity challenges that materially impaired its operations or financial standing [190]. - As a smaller reporting company, the company is not required to provide certain market risk disclosures [191]. Non-controlling Interest - For the nine months ended September 30, 2024, the net loss attributable to non-controlling interest was $10,543, a decrease from $17,820 in the same period of 2023, representing a reduction of approximately 41% [152]. - The Company acquired the remaining 40% shares of FWIL on April 15, 2024, making it a wholly owned subsidiary, which eliminated profit or loss attributable to non-controlling interest [151].