FIRE ROCK(HK:01909)2025-03-26 12:04Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was approximately HKD 140.6 million, representing an increase of about 4.2% compared to HKD 134.9 million in 2023[4] - The group's gross profit for the fiscal year was approximately HKD 112.8 million, reflecting a growth of about 4.9% from HKD 107.5 million in the previous year[4] - The net profit for the year was approximately HKD 1.9 million, a significant decrease from HKD 572.5 million in 2023[4] - Total revenue for 2024 was HKD 140,591,000, a decrease of 3.2% from HKD 134,927,000 in 2023[25] - Game operation and publishing revenue increased to HKD 140,572,000 in 2024, up from HKD 131,905,000 in 2023, representing a growth of 6.3%[25] - The company reported a loss attributable to owners of approximately HKD 17,065,000 for 2024, compared to a profit of HKD 559,911,000 in 2023[29] - The company reported a loss attributable to equity holders of approximately HKD 17.1 million for the year ending December 31, 2024, compared to a profit of approximately HKD 559.9 million for the year ending December 31, 2023, primarily due to one-time non-recurring income recognized in the previous year[41] Dividends and Equity - The board of directors did not recommend the payment of a final dividend for the fiscal year ending December 31, 2024[4] - The company did not recommend any final dividend for the years ended December 31, 2024 and 2023[28] - The group's total equity decreased to HKD 113.99 million from HKD 140.32 million in 2023[6] Assets and Liabilities - Total assets less current liabilities amounted to HKD 114.8 million, down from HKD 142.6 million in 2023[6] - The group's total assets decreased from HKD 160,873 thousand in 2023 to HKD 134,676 thousand in 2024, a decline of approximately 16.3%[22] - The total liabilities remained relatively stable, with a slight increase from HKD 20,552 thousand in 2023 to HKD 20,682 thousand in 2024[22] - Cash and cash equivalents decreased to approximately HKD 53.6 million as of December 31, 2024, a decrease of approximately HKD 31.9 million or 37.3% from approximately HKD 85.5 million as of December 31, 2023, primarily due to dividend payments to a non-controlling interest in a subsidiary in Thailand[56] Expenses - Research costs for the year were approximately HKD 9.0 million, down from HKD 19.8 million in the previous year[5] - The total tax expense for 2024 was HKD 17,173,000, an increase of 107.9% from HKD 8,271,000 in 2023[27] - The group's depreciation and amortization expenses increased from HKD 2,264 thousand in 2023 to HKD 3,110 thousand in 2024, an increase of approximately 37.4%[21] - Promotional costs decreased to approximately HKD 40.7 million for the year ending December 31, 2024, a reduction of approximately HKD 14.8 million or 26.7% from approximately HKD 55.5 million for the year ending December 31, 2023, primarily due to reduced advertising and promotional expenses[50] - Administrative expenses increased to approximately HKD 43.3 million for the year ending December 31, 2024, an increase of approximately HKD 11.6 million or 36.6% from approximately HKD 31.7 million for the year ending December 31, 2023, mainly due to increased depreciation and travel expenses[51] Employee and Compensation - The total employee compensation for the year ended December 31, 2024, is approximately HKD 31.1 million, down from HKD 35.4 million in 2023[62] - The company has a total of 151 employees as of December 31, 2024, compared to 108 employees as of December 31, 2023[62] Strategic Initiatives - The company plans to implement a share consolidation, merging every 20 shares into 1 share, to be voted on at a special general meeting on March 27, 2025[40] - The company plans to establish a new team in Southeast Asia specifically for the development of online and mobile games to strengthen its market position in Indonesia and other Southeast Asian regions[41] - The company aims to focus resources on game development and publishing to enhance its core business and reduce reliance on gaming operations, with plans to launch new games in the coming year[41] Risk Management and Governance - The company faces significant risks including the inability to keep up with technological advancements, which may lead to decreased competitiveness and market share loss[74] - The company anticipates intense competition from both domestic and international rivals, as well as other entertainment forms, necessitating continuous upgrades and optimization of existing games[75] - The company's operations are subject to multiple government regulations, and any administrative changes could impact market conditions and operational performance[76] - The audit committee is responsible for reviewing the company's risk management and internal control systems to ensure their effectiveness[77] - The company has adopted corporate governance principles to protect shareholder interests and enhance corporate value and accountability[83] Compliance and Reporting - The audit committee has reviewed the financial statements for the fiscal year ending December 31, 2024, ensuring compliance with applicable accounting standards and sufficient disclosure[86] - The annual report for the fiscal year ending December 31, 2024, will be published and sent to shareholders in due course, containing all information required by listing rules[88]