Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 84.6 million, a decrease of 34.0% or RMB 43.5 million compared to RMB 128.1 million for the year ended December 31, 2023[4]. - The company reported a loss of RMB 10.7 million for the year ended December 31, 2024, compared to a loss of RMB 7.3 million for the year ended December 31, 2023[4]. - Online business revenue was RMB 83.8 million, down 33.8% year-over-year, with online retail sales contributing RMB 79.4 million, a decrease of 32.2%[4]. - Offline business revenue decreased to RMB 0.8 million, a decline of 50.0% compared to the previous year[4]. - The gross profit for the year was RMB 39.7 million, down from RMB 67.5 million in the previous year, reflecting a significant decline in profitability[5]. - The loss attributable to equity holders of the company was RMB 10.0 million for the year ended December 31, 2024, compared to RMB 8.2 million in the previous year[6]. - The basic and diluted loss per share for the year was RMB 1.79, compared to RMB 1.47 in the previous year[6]. - Revenue decreased to approximately RMB 84,588,000 due to a strategic change in business operations starting April 2024, resulting in an increased net loss compared to the previous year[14]. - Total revenue for the group from external customers in China (excluding Hong Kong) was RMB 84,588 thousand in 2024, down from RMB 128,109 thousand in 2023, a decrease of about 33.9%[29]. - The group reported a pre-tax loss of RMB 44,592 thousand in 2024, down from RMB 60,102 thousand in 2023, indicating a reduction of approximately 25.8%[33]. - The company reported a basic loss attributable to equity holders of RMB 10,013,000 in 2024, compared to RMB 8,249,000 in 2023, reflecting an increase of approximately 21.4%[38]. Assets and Liabilities - The company's total assets decreased from RMB 41.9 million in 2023 to RMB 28.4 million in 2024, indicating a reduction in asset base[7]. - Current liabilities decreased from RMB 43.7 million in 2023 to RMB 33.5 million in 2024, showing a reduction in short-term obligations[7]. - As of December 31, 2024, the group had current liabilities of approximately RMB 5,147,000 and capital deficiency of approximately RMB 11,588,000[14]. - The group has bank borrowings classified as current liabilities amounting to RMB 16,767,000, with RMB 11,112,000 being revolving bank loans[14]. - The total bank borrowings decreased to RMB 16,767,000 in 2024 from RMB 18,133,000 in 2023, reflecting a decline of about 7.5%[46]. - The group’s designated non-current assets in China (excluding Hong Kong) decreased to RMB 2,016 thousand in 2024 from RMB 4,699 thousand in 2023, a decrease of approximately 57.1%[29]. - The group’s total assets decreased to approximately RMB 334 million (2023: approximately RMB 491 million), while total equity fell to a loss of approximately RMB 116 million (2023: loss of approximately RMB 38 million)[81]. Cash Flow and Financing - The group reported a net loss of approximately RMB 10,689,000 for the year ending December 31, 2024, with operating cash income of approximately RMB 1,433,000[14]. - Cash and bank balances as of December 31, 2024, were approximately RMB 8,168,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[14]. - The board believes that the group will have sufficient cash resources to meet operational funding and financial obligations for the next eighteen months[15]. - Cash and cash equivalents increased to RMB 8,168,000 in 2024 from RMB 7,445,000 in 2023, representing a growth of about 9.7%[44]. - The company reported a cash balance of approximately RMB 4,250,000 in 2024, up from RMB 2,394,000 in 2023, indicating a significant increase[44]. - The group has unutilized bank financing totaling RMB 35,188,000 as of December 31, 2024, and new loans from shareholders amounting to RMB 2,516,000 to support operations[16]. - The group is negotiating with banks to renew existing financing or refinance if necessary[16]. Operational Strategies and Risks - Management is focusing on online marketing, collaborating with major e-commerce providers, and exploring brand licensing to improve profitability and control operating costs[14]. - The company faced significant risks including potential penalties from failing to renew the ELLE brand licensing agreement and operational challenges on third-party e-commerce platforms[66]. - The company identified several operational risks that could impact performance, including market competition and changing consumer behavior[65]. - The group continues to focus on online marketing through live streaming to enhance customer experience and is adopting new AI tools to strengthen marketing efforts[85]. - The group anticipates challenges in 2024 due to weakened consumer demand and purchasing power, with a cautious outlook for 2025[85]. Employee and Operational Costs - The group’s total employee costs decreased to RMB 8,893 thousand in 2024 from RMB 9,790 thousand in 2023, a decline of about 9.1%[33]. - The total employee cost for the year ended December 31, 2024, was RMB 89 million (2023: RMB 98 million)[87]. - Administrative and other operating expenses slightly decreased by RMB 0.4 million or 2.9% to approximately RMB 13.2 million, mainly due to reduced employee costs[78]. - The group employed 38 staff as of December 31, 2024 (2023: 49 staff)[87]. Dividends and Shareholder Information - The company did not recommend the distribution of a final dividend for the year ended December 31, 2024[4]. - The group did not declare or pay any dividends for the year ended December 31, 2024, consistent with 2023[37]. - The company’s total issued and paid-up ordinary shares remained at 560 million, with a par value of HKD 0.01 per share[55]. - The average number of ordinary shares for calculating basic loss per share remained unchanged at 560,000,000 for both 2024 and 2023[38]. Compliance and Reporting - The independent auditor's report confirms that the consolidated financial statements of the company as of December 31, 2024, reflect a true and fair view of the group's financial position and performance[99]. - There are significant uncertainties regarding the company's ability to continue as a going concern, as highlighted in note 2.1 of the consolidated financial statements[101]. - The company will issue its 2024 annual report to shareholders in due course, which will be available on the Stock Exchange and the company's website[102]. - The announcement is made in compliance with the GEM listing rules, ensuring that all information provided is accurate and complete[104].
森浩集团(08285) - 2024 - 年度业绩