Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 20,576,000, representing an increase of 8.66% compared to HKD 18,938,000 in 2023[5] - The gross profit for the same period was HKD 4,919,000, with a gross margin of approximately 23.9%[5] - The net loss for the year was HKD 27,273,000, compared to a net loss of HKD 25,673,000 in 2023, indicating a 6.23% increase in losses[5] - The group reported a total loss before tax of HKD 27,496,000 in 2024, compared to a loss of HKD 25,732,000 in 2023[29] - The company reported a loss before tax of HKD 27,496,000 for the year ended December 31, 2024, compared to a loss of HKD 25,732,000 in 2023[41] - The company reported a loss attributable to equity holders of approximately HKD 27,300,000 for the year ended December 31, 2024, compared to a loss of HKD 25,700,000 in 2023, indicating a decline in performance[103] Revenue Breakdown - Financial services segment revenue increased to HKD 10,457,000 in 2024 from HKD 11,435,000 in 2023, a decrease of 8.5%[29] - Corporate consulting segment revenue rose to HKD 5,512,000 in 2024 from HKD 4,025,000 in 2023, an increase of 37.0%[26] - Digital business segment revenue was HKD 4,607,000 in 2024, compared to HKD 3,478,000 in 2023, reflecting a growth of 32.4%[29] - The financial services segment generated revenue of approximately HKD 10,500,000 for the year ended December 31, 2024, down from HKD 11,400,000 in 2023, a decrease of about 7.89%[104] - The company recorded revenue of approximately HKD 5,500,000 from its corporate consulting business for the year ended December 31, 2024, compared to HKD 4,000,000 in 2023[111] - Digital business revenue was approximately HKD 4,600,000 for the year ended December 31, 2024, up from HKD 3,500,000 in 2023, but incurred a segment loss of approximately HKD 14,800,000[112] Expenses and Costs - Operating and administrative expenses decreased to HKD 25,196,000 from HKD 32,266,000, reflecting a reduction of 22%[5] - The company reported a decrease in employee costs to HKD 11,398,000 in 2024 from HKD 14,166,000 in 2023[39] - The company’s financing costs increased slightly to HKD 12,967,000 in 2024 from HKD 12,575,000 in 2023[38] - The total other payables and accrued expenses increased to HKD 11,679,000 in 2024 from HKD 7,355,000 in 2023, marking a rise of 59%[71] Assets and Liabilities - Total assets decreased to HKD 36,401,000 from HKD 56,713,000, a decline of 35.8%[7] - Current assets dropped to HKD 18,427,000 from HKD 28,752,000, a decrease of 35.9%[7] - The group reported a significant reduction in non-current liabilities from HKD 78,321,000 to HKD 2,197,000, a decrease of 97.2%[8] - Total liabilities reduced to HKD 15,438,000 in 2024 from HKD 91,517,000 in 2023, a decrease of 83.1%[30] - The company has unutilized tax losses of approximately HKD 73,156,000 as of December 31, 2024, compared to HKD 60,566,000 in 2023, which can be used to offset future profits[41] Cash Flow and Liquidity - The group reported a net loss of approximately HKD 27,273,000 and an operating cash outflow of about HKD 11,668,000 for the year ending December 31, 2024[11] - The board has taken measures to alleviate liquidity pressure, including deferring a loan of approximately HKD 9,776,000 from a director for over twelve months[12] - The board believes that, considering the planned measures, the group will have sufficient operating funds to meet its financial obligations for at least the next twelve months[13] Corporate Actions and Strategy - The company is focused on expanding its digital business and financial services, aiming for growth in these sectors in the upcoming year[9] - The group plans to focus on core financial business and actively explore other potential business activities, significantly reducing budgets for non-core areas[12] - The company is refocusing on its core financial operations and exploring potential business opportunities that align with its strategic priorities, particularly in AI technology and digital transformation[119] - The company is strategically considering diversification into the US market to expand its client base and potentially increase revenue sources in the financial services sector[120] Governance and Compliance - The company maintains a commitment to good corporate governance and compliance with applicable laws and regulations, with no significant violations reported during the year[144] - The executive director is Mr. Wang Hsien-Shuo, who serves as the Chairman and CEO[150] Shareholder Information - The company did not declare any dividends for the year ended December 31, 2024, consistent with 2023[42] - The company has no significant contingent liabilities as of December 31, 2024, consistent with 2023[136] Convertible Bonds and Securities - The total outstanding amount of convertible bonds decreased from HKD 77,931,000 in 2023 to zero in 2024, indicating a complete redemption[77] - The company issued perpetual convertible securities with a principal amount of HKD 101,000,000, convertible at a price of HKD 0.10 per share, allowing for the issuance of up to 1,010,000,000 shares[94][96] - The company plans to offset all outstanding principal amounts of the convertible bonds with the issuance of perpetual convertible securities by November 27, 2024[91] Market and Economic Conditions - The company anticipates continued demand for corporate governance services from Hong Kong listed companies due to increasing global emphasis on corporate governance[121] - The offsetting mechanism for mandatory provident fund contributions will be abolished on May 1, 2025, affecting the calculation of long service payments[74]
声扬集团(08163) - 2024 - 年度业绩