Financial Performance - For the fiscal year ending December 31, 2024, total revenue was $13.457 million, a decrease of 37.5% from $21.504 million in 2023[5] - Gross profit for 2024 was $11.263 million, down 41.5% from $19.202 million in 2023[5] - Operating profit decreased to $6.428 million in 2024, compared to $12.534 million in 2023, reflecting a decline of 48.7%[5] - Net profit for the year was $544 thousand, significantly lower than $7.185 million in the previous year, marking a decrease of 92.4%[5] - Revenue from cross-border digital marketing services decreased to $11,515,000 in 2024, down 36.6% from $18,175,000 in 2023[14] - Revenue from SaaS-based digital marketing increased to $2,796,000 in 2024, up 93.4% from $1,450,000 in 2023[14] - Revenue from mainland China was $13,456,000 in 2024, a decline of 37.3% from $21,499,000 in 2023[15] - Pre-tax profit for 2024 was $581,000, a significant decrease of 93.1% from $8,458,000 in 2023[20] - Basic earnings per share for 2024 were $0.00068, down from $0.00958 in 2023[22] - Revenue decreased by 37.4% from $21.5 million in 2023 to $13.5 million in 2024, primarily due to intensified competition in digital marketing services[43] - Income from standardized digital marketing services fell by 42.8% from $9.8 million in 2023 to $5.6 million in 2024, attributed to increased competition[44] - Customized digital marketing service revenue dropped by 55.0% from $7.0 million in 2023 to $3.1 million in 2024, as demand shifted towards SaaS-based services[44] - Revenue from SaaS-based digital marketing services increased by 92.8% from $1.5 million in 2023 to $2.8 million in 2024, driven by the merger of customized and SaaS services[45] - Gross profit decreased by 41.3% from $19.2 million in 2023 to $11.3 million in 2024, with gross margin declining from 89.3% to 83.7%[47] - Net profit fell by 92.1% from $7.2 million in 2023 to $0.5 million in 2024, resulting in a net profit margin drop from 33.4% to 4.0%[53] Assets and Liabilities - Total assets as of December 31, 2024, were $257.987 million, an increase from $219.416 million in 2023, representing a growth of 17.6%[6] - Current liabilities rose to $234.080 million in 2024, compared to $194.698 million in 2023, indicating an increase of 20.2%[6] - The company's cash and cash equivalents increased to $34.393 million in 2024, up from $21.814 million in 2023, a growth of 57.5%[6] - The total equity attributable to shareholders was $30.095 million in 2024, slightly up from $29.518 million in 2023, reflecting a growth of 2.0%[7] - Trade receivables from third parties increased to $228,934,000 in 2024, up from $203,614,000 in 2023[24] - The amount of trade receivables under factoring arrangements was $126,112,000 in 2024, compared to $69,294,000 in 2023[24] - As of December 31, 2024, the total trade and other payables amounted to $129,032 thousand, a slight increase from $128,976 thousand in 2023[26] - The aging analysis of trade payables shows that $62,236 thousand is due within one month, compared to $52,784 thousand in 2023, indicating an 18.5% increase[27] - The total bank loans as of December 31, 2024, reached $102,558 thousand, significantly up from $61,022 thousand in 2023, representing a 68% increase[28] - Trade receivables increased from $203.6 million as of December 31, 2023, to $228.9 million as of December 31, 2024, driven by growth in cross-border e-commerce demand[54] - Bank loans rose from $61.0 million as of December 31, 2023, to $102.6 million as of December 31, 2024, to support increased capital needs due to higher total billings[56] - The debt-to-equity ratio increased from 206.7% as of December 31, 2023, to 340.8% as of December 31, 2024, primarily due to increased borrowings[59] - The debt-to-equity ratio increased from 132.8% as of December 31, 2023, to 226.5% as of December 31, 2024, primarily due to an increase in borrowings[60] Operational Insights - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[4] - The company provided services to over 3,000 marketing clients as of December 31, 2024, reflecting growth in demand for cross-border digital marketing services[38] - The proprietary SaaS platform, Powershopy, was launched in November 2021, enabling cross-border e-commerce merchants to establish and manage their independent online stores[39] - The company collaborates with 19 major global media publishers, including Meta, Google, and TikTok, enhancing its marketing reach[38] - The company’s revenue model for the cross-border e-commerce SaaS solution includes fixed monthly fees and commissions based on the gross merchandise volume (GMV) generated by clients[39] Financial Management and Governance - The company has no declared dividends for the year ending December 31, 2024, consistent with 2023, where no dividends were paid either[31] - The company has adopted a prudent financial management policy to ensure liquidity for daily operations and capital expenditures[63] - As of December 31, 2024, the total unused net proceeds from the IPO amounted to approximately HKD 58.0 million, with plans to upgrade the business and internal management systems and seek strategic partnerships or investment opportunities[68] - The expected timeline for utilizing the unused net proceeds for upgrading the business and internal management systems has been extended to the end of 2025[70] - No significant investments or acquisitions were made in subsidiaries, associates, or joint ventures as of December 31, 2024[66] - The company has no major foreign exchange risk as most of its monetary assets and liabilities are denominated in USD[65] - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2024[73] - The company has adopted the standard code for directors' securities trading as per the listing rules, confirming compliance for the year ending December 31, 2024[76] - The audit committee has reviewed the group's financial statements for the year ending December 31, 2024, ensuring consistency with the draft financial reports[77] - The annual general meeting is scheduled for June 26, 2025, with a suspension of share transfer registration from June 23 to June 26, 2025[78] - The annual report for the year ending December 31, 2024, will be published on the company's and the stock exchange's websites[79] Cost Management - Research and development costs for 2024 were $1,221,000, an increase from $1,134,000 in 2023[18] - Administrative expenses decreased from $5.0 million in 2023 to $4.1 million in 2024, due to the absence of IPO-related costs[49] - Interest expenses on bank loans rose from USD 4.1 million in 2023 to USD 6.0 million in 2024, indicating increased interest rate risk exposure[64] - As of December 31, 2024, bank loans secured by trade receivables amounted to USD 42.474 million, up from USD 1.470 million as of December 31, 2023[62] - The company has no significant contingent liabilities as of December 31, 2023, and December 31, 2024[61]
力盟科技(02405) - 2024 - 年度业绩