Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 551,062,000, a decrease of 9.5% from RMB 609,301,000 in 2023[2] - Gross profit for the same period was RMB 106,227,000, down 29.0% from RMB 149,319,000 in 2023[2] - Operating profit decreased to RMB 38,828,000, a decline of 55.2% compared to RMB 86,692,000 in 2023[3] - Net profit for the year was RMB 9,709,000, a significant drop of 85.9% from RMB 68,671,000 in 2023[3] - Basic and diluted earnings per share were RMB 0.02, down from RMB 0.14 in 2023[3] - Pre-tax profit for the year ended December 31, 2024, is RMB 23,503,000, a decrease of 66.5% from RMB 70,010,000 in 2023[23] - Basic earnings per share for the year ended December 31, 2024, is RMB 9,709,000, significantly lower than RMB 68,592,000 in 2023[25] - The company's total revenue decreased from RMB 609.3 million in 2023 to RMB 551.1 million in 2024, a reduction of RMB 58.2 million, primarily due to a decline in revenue from digital solution services[50] - Revenue from digital solution services dropped significantly from RMB 107.9 million in 2023 to RMB 40.4 million in 2024, a decrease of RMB 67.5 million, mainly due to a reduction in the number of integrated solution and software solution projects[52] - The gross profit decreased from RMB 149.3 million in 2023 to RMB 106.2 million in 2024, a decline of RMB 43.1 million, consistent with the revenue decrease[55] - The overall gross margin fell from 24.5% in 2023 to 19.3% in 2024, a decrease of 5.2 percentage points, primarily due to reduced revenue and gross profit from higher-margin digital solution services[55] - Net profit for the year dropped from RMB 68.7 million to RMB 9.7 million, mainly due to reduced revenue from digital solution services and increased tax expenses[63] Cash Flow and Assets - Cash and cash equivalents increased to RMB 134,963,000 from RMB 81,540,000 in 2023, representing a growth of 65.5%[4] - Cash used in operating activities was approximately RMB 103.1 million, attributed to pre-tax profit adjustments and changes in working capital[64] - Cash generated from financing activities amounted to approximately RMB 301.3 million, driven by bank loans and shareholder contributions[65] - Current assets increased to RMB 333.2 million from RMB 36.3 million, mainly due to an increase in contract assets of RMB 234.9 million[66] Contract Assets and Liabilities - The company reported a significant increase in contract assets to RMB 961,682,000, up 32.3% from RMB 726,829,000 in 2023[4] - The total expected revenue from existing digital solution service contracts as of December 31, 2024, is RMB 872,000, down from RMB 1,274,000 in 2023[18] - Contract assets related to telecommunications infrastructure services increased to RMB 961,271,000 in 2024 from RMB 726,435,000 in 2023, a growth of 32.3%[29] - The contract liabilities related to performance obligations increased to RMB 6,905,000 in 2024 from RMB 4,795,000 in 2023, a growth of 44.1%[33] Expenses and Costs - The company’s employee costs for the year ended December 31, 2024, are RMB 26,744,000, slightly down from RMB 27,084,000 in 2023[20] - Administrative expenses rose from RMB 38.5 million to RMB 45.4 million, mainly due to an increase in expected credit loss provisions of RMB 7.5 million[58] - The company incurred a tax expense of RMB 13,794,000 for the year ended December 31, 2024, compared to RMB 1,339,000 in 2023, indicating a significant increase in tax liabilities[22] Investments and Financing - The fair value of investment properties as of December 31, 2024, is RMB 38,712,000, compared to RMB 26,407,000 in 2023, reflecting a 46.5% increase[27] - Interest income from bank deposits for the year ended December 31, 2024, is RMB 441,000, up from RMB 180,000 in 2023, representing a 145% increase[19] - As of December 31, 2024, the company had total bank borrowings of RMB 373.5 million, an increase from RMB 347.5 million in 2023[41] - Bank borrowings due within one year amounted to RMB 373,476,000 as of December 31, 2024, compared to RMB 347,458,000 in 2023, indicating a 7.2% increase[40] - The company has violated its loan covenants based on its balance sheet ratios as of December 31, 2024[43] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as its own governance code post-listing, ensuring high standards of corporate governance to protect shareholder interests[81] - The company has confirmed compliance with the standard code of conduct for securities trading by directors from the listing date to December 31, 2024[83] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2024, ensuring compliance with relevant accounting standards and regulations[89] - The group's auditor, KPMG, has confirmed that the financial figures in the performance announcement for the year ending December 31, 2024, are consistent with the final consolidated financial statements[90] Strategic Plans and Future Outlook - The company plans to use part of the funds raised from the IPO for acquisitions or investments in companies providing digital solution services to expand its business scale and market share[77] - The net proceeds from the listing are planned to be utilized as follows: 63.0% for strategic acquisitions (RMB 89.4 million), 15.5% for preliminary costs of service projects (RMB 22.0 million), and 17.3% for enhancing R&D capabilities (RMB 24.6 million)[85] - The company has actively explored various strategic acquisition opportunities since the listing date but has not yet identified suitable service providers for digital solutions[85] - The expected timeline for utilizing the remaining net proceeds has been updated to 2025 due to unforeseen circumstances and delays in smart city developments[85] - The board believes that extending the timeline for utilizing the net proceeds will not significantly adversely affect the group's existing business and operations[87] Employee and Shareholder Information - As of December 31, 2024, the group employed 218 employees, down from 257 employees as of December 31, 2023, with total employee costs amounting to RMB 26.7 million, a decrease from RMB 28.3 million in 2023[78] - The company did not declare or pay any dividends for the year ending December 31, 2024[44] - The board does not recommend the distribution of any final dividend for the year ending December 31, 2024[80] - The company has adopted a stock option plan on June 17, 2024, to attract and retain suitable personnel as a long-term incentive, but no options have been granted or agreed to be granted as of the announcement date[79]
中赣通信(02545) - 2024 - 年度业绩