Financial Performance - The group's revenue decreased from approximately HKD 717.6 million in the fiscal year 2023 to approximately HKD 648.0 million in the fiscal year 2024, representing a decline of about 9.7%[3] - Net profit for the year decreased from approximately HKD 4.5 million in the fiscal year 2023 to approximately HKD 1.0 million in the fiscal year 2024, a decline of about 77.8%[3] - Basic earnings per share attributable to shareholders decreased from approximately HKD 0.90 in the fiscal year 2023 to approximately HKD 0.19 in the fiscal year 2024, a decrease of about 78.9%[3] - Total revenue for 2024 was HKD 648,012,000, a decrease of 9.7% from HKD 717,595,000 in 2023[21] - Net profit for 2024 was HKD 952,000, a significant decrease from HKD 4,502,000 in 2023[27] - Distribution and resale revenue decreased by approximately HKD 5.4 million or 2.2% to about HKD 245.6 million due to a reduction in orders from Hong Kong distributors[47] - Revenue from enterprise IT solutions decreased by approximately HKD 63.1 million or 13.8% to about HKD 393.1 million for the fiscal year 2024[45] - Professional IT services revenue declined by approximately HKD 89.7 million or 23.6%, while managed services revenue increased by approximately HKD 24.1 million or 87.0%[45] Assets and Liabilities - The group's cash and cash equivalents amounted to approximately HKD 85.9 million as of December 31, 2024, compared to approximately HKD 28.7 million as of December 31, 2023[3] - Total assets increased slightly from approximately HKD 583.4 million in 2023 to approximately HKD 585.7 million in 2024[6] - Total equity decreased from approximately HKD 336.0 million in 2023 to approximately HKD 335.9 million in 2024[6] - Trade and other payables decreased from approximately HKD 190.9 million in 2023 to approximately HKD 178.2 million in 2024[6] - Trade receivables from customer contracts were HKD 165,176,000 in 2024, down from HKD 181,513,000 in 2023[29] - Trade payables decreased to HKD 155,092,000 in 2024 from HKD 174,165,000 in 2023[30] - The group's total borrowings as of December 31, 2024, were approximately HKD 14.7 million, up from HKD 11.1 million on December 31, 2023, resulting in a capital debt ratio of 4.4% compared to 3.3% in the previous year[61] Research and Development - Research and development expenses increased from approximately HKD 10.0 million in the fiscal year 2023 to approximately HKD 18.4 million in the fiscal year 2024[4] - R&D expenses increased by approximately HKD 8.4 million or 84.0% to about HKD 18.4 million, driven by investments in BCI technology and the establishment of a new R&D team focused on AI and large language models[54] - Other income rose by approximately HKD 9.2 million or 112.2% to about HKD 17.4 million, primarily due to increased government grants related to R&D activities[51] - The group has registered 26 software copyrights and 57 patents related to AI and brain-machine interaction technology as of the announcement date[38] Market and Strategic Initiatives - The group has expanded its footprint to the Greater Bay Area since 2021, providing IT solutions and services to local markets including Macau, Hong Kong, and China[33] - The group anticipates increased demand for IT solutions and related products as local enterprises plan to invest more in IT infrastructure innovation and upgrades due to economic transformation and digitalization in the Greater Bay Area, Hong Kong, and Macau[33] - The Macau government has emphasized the importance of diversifying the economy and has introduced support policies for technology companies, which will enhance the demand for IT solutions in various emerging industries[34] - The group is focusing on developing customized IT products and solutions, including AI-driven intelligent operations, to optimize resource allocation and improve profitability[36] - The group plans to upgrade its collaboration model to a full-cycle "system integration + data services" partnership, expanding into intelligent network system management and cross-regional data solutions[36] - The group expects that the demand for IT solutions will increase due to the commitments made by six gaming operators in Macau to invest in non-gaming sectors over the coming years[33] - The Macau government’s "2024 Policy Address" reinforces the strategy of diversified development, which will further increase the influence of IT elements in business operations[34] - The group aims to leverage opportunities from the digital transformation and extensive application of technology to drive business growth in the coming years[35] - The group is integrating augmented reality (AR), virtual reality (VR), and digital twin technologies to create immersive experiences and enhance customer engagement[36] - The group plans to enhance core AI technology development and establish diversified competitive advantages, focusing on industry-specific solutions in fintech, smart retail, and government technology[37] - The group is collaborating with local partners to develop localized solutions in areas such as industrial IoT and digital healthcare, leveraging opportunities from the central government's policies[42] Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[79] - The audit committee has reviewed the annual performance for the fiscal year 2024 and confirmed that the financial statements fairly reflect the company's financial position[80] - The company has complied with the corporate governance code, except for a deviation regarding the roles of the chairman and CEO being held by the same individual[75] - The board believes that the current management structure is effective and has established sufficient checks and balances despite the deviation from the corporate governance code[76] - The company plans to continue reviewing its governance structure to assess the necessity of separating the roles of chairman and CEO[76] Dividends and Shareholder Information - The company did not declare or recommend any dividends for both 2024 and 2023 fiscal years[26] - The group has not proposed any final dividend for the fiscal year 2024, compared to no dividend in fiscal year 2023[72] - The annual performance announcement for the fiscal year 2024 will be published on the Hong Kong Stock Exchange website and the company's website[82] - The annual report will include all information required by the listing rules and will be sent to shareholders in due course[82] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[84]
博维智慧(01204) - 2024 - 年度业绩