Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 120,028,000, representing an increase of 9.6% compared to HKD 109,968,000 in 2023[12] - The cost of sales for 2024 was HKD 100,308,000, which is an increase of 19.7% from HKD 83,792,000 in 2023[12] - Gross profit for 2024 decreased to HKD 19,720,000, down 24.8% from HKD 26,176,000 in 2023[12] - The company incurred a loss before tax of HKD 18,776,000 in 2024, compared to a profit of HKD 3,711,000 in 2023[12] - The net loss for the year 2024 was HKD 17,510,000, compared to a profit of HKD 2,202,000 in 2023[12] - The gross profit decreased by HKD 6,456,000 or 24.7% to HKD 19,720,000, with the gross margin dropping approximately 7.4 percentage points to about 16.4%[24] - The company recorded a loss attributable to owners of HKD 17,510,000 for the fiscal year 2024, compared to a profit of HKD 2,202,000 for the fiscal year 2023, indicating a significant decline in performance[35] Assets and Liabilities - Total non-current assets decreased to HKD 18,919,000 in 2024 from HKD 20,540,000 in 2023[12] - Current assets slightly decreased to HKD 159,680,000 in 2024 from HKD 161,275,000 in 2023[12] - The company's net assets decreased to HKD 125,272,000 in 2024 from HKD 146,602,000 in 2023[12] - Cash and cash equivalents at the end of 2024 were HKD 78,823,000, down from HKD 80,497,000 at the end of 2023[12] - The debt-to-equity ratio as of December 31, 2024, was 22.6%, up from 14.2% as of December 31, 2023, indicating increased leverage[37] Cash Flow - The company reported a cash outflow from operating activities of HKD 5,774,000 in 2024, compared to an outflow of HKD 2,758,000 in 2023[12] - The net cash used in operating activities increased to approximately HKD 5,774,000 in fiscal year 2024 from approximately HKD 2,758,000 in fiscal year 2023, primarily due to a significant increase in deposits, prepayments, and other receivables[36] Revenue Segments - The functional knitted fabric, clothing, and yarn sales segment generated revenue of approximately HKD 110,238,000, an increase of HKD 423,000 or 0.4% compared to the previous fiscal year[19] - The cloud computing and internet traffic services segment reported revenue of approximately HKD 9,790,000, a significant increase of HKD 9,637,000 or 6,298.7% from the previous fiscal year[20] Expenses - Other income rose by HKD 388,000 or 16.3% to HKD 2,767,000, primarily from bank interest, government grants, and miscellaneous income[25] - Selling and distribution expenses increased by approximately HKD 892,000 or 17.4% to about HKD 6,007,000[27] - Administrative and other expenses rose by HKD 5,587,000 or 33.5% to HKD 22,263,000, mainly due to increased employee salaries and rent expenses[29] - Trade receivables impairment losses increased by approximately HKD 2,774,000 or 174.6% to HKD 4,363,000, attributed to expected credit losses from significant customers[30] Strategic Initiatives - The company plans to expand its presence in the artificial intelligence sector and enhance its cloud computing platform to drive future growth[21] - The company plans to change its name to "WebX International Holdings Company Limited" effective June 20, 2024, indicating a strategic shift towards computing power and information technology[57] - The company is committed to ongoing performance reviews and salary assessments to attract and retain talented employees, particularly in sales roles[60] - The company has been actively involved in acquiring new subsidiaries over the past year, reflecting its strategic focus on expanding into new technology sectors[57] Governance and Compliance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills, experience, and diversity[87] - The independent non-executive directors confirmed their independence in writing according to GEM Listing Rules, ensuring that the interests of all shareholders are adequately considered[89] - The company maintains high standards of business ethics and corporate governance, with regular training to reinforce necessary standards and regulations[83] - The company has implemented an anti-corruption policy and reporting policy to enhance internal fairness awareness[83] - The board confirmed that the risk management and internal control systems are effective and adequate for the fiscal year 2024[128] Risk Management - The company is monitoring foreign exchange risks closely, particularly due to transactions denominated in currencies other than HKD, such as RMB and USD[51] - The board and audit committee are responsible for evaluating and determining the nature and extent of risks the group is willing to accept to achieve strategic objectives, ensuring effective risk management and internal control systems are implemented[130] - The risk assessment process includes identifying risks through discussions with management and determining existing controls while analyzing the consequences and probabilities of risks[134] Shareholder Relations - The company encourages shareholders to attend the Annual General Meeting and ensures that the chairman and auditors are present to address any questions raised by shareholders[142] - The company will hold its 2025 Annual General Meeting on June 20, 2025, and will continue to strengthen communication and relationships with shareholders and investors[143] - The board confirmed the effectiveness of the communication policy with shareholders and will continue to review it annually[150] Employee Relations - The total employee cost for the fiscal year 2024 was HKD 15,611,000, compared to HKD 14,068,000 for the fiscal year 2023, reflecting an increase of approximately 11%[60] - The company currently employs 73 staff members as of December 31, 2024, up from 66 employees a year earlier, representing a growth of approximately 10.6%[60] - The company emphasizes maintaining effective communication and good relationships with employees, suppliers, customers, and other stakeholders to achieve its immediate and long-term goals[168] Board Activities - The board of directors held a total of 5 meetings in the fiscal year ending December 31, 2024, with attendance rates for individual directors ranging from 60% to 100%[94] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with a clear written scope of authority[98] - The remuneration committee held four meetings during the fiscal year ending December 31, 2024, discussing and reviewing various matters before making recommendations to the board[118] Shareholder Interests - The company has adopted a dividend policy since January 1, 2019, which is reviewed annually by the remuneration committee[152] - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[159] - As of December 31, 2024, the company's distributable reserves amounted to approximately HKD 49.61 million, a decrease from HKD 56.03 million in 2023[165]
智云国际控股(08521) - 2024 - 年度业绩