INFINITIES TECH(HK:01961)2025-03-31 04:01Financial Performance - Revenue for the fiscal year ending December 31, 2024, decreased by 2.0% to approximately RMB 258.5 million from RMB 263.9 million in the previous fiscal year[8]. - Gross profit for the same period fell by 14.4% to approximately RMB 32.7 million, down from RMB 38.2 million[8]. - Net loss for the fiscal year 2024 was approximately RMB 50.9 million, an improvement from a net loss of RMB 53.8 million in fiscal year 2023[9]. - The decrease in net loss was primarily due to an increase in other income and net gains of approximately RMB 10.9 million and a reduction in research and development expenses by approximately RMB 7.9 million[9]. - Revenue for the fiscal year ending December 31, 2024, is projected to be RMB 258,478 thousand, a decrease of 2.0% compared to RMB 263,880 thousand for the previous year[15]. - The gross profit margin decreased by 14.4%, from RMB 38,197 thousand to RMB 32,679 thousand[15]. - The company reported a total of RMB 258,478,000 in revenue from customer contracts in 2024, slightly lower than RMB 263,880,000 in 2023, marking a decrease of around 2%[59]. - The group reported a pre-tax loss of RMB 51,015,000 for the year, compared to a loss of RMB 53,320,000 in the previous year, indicating a slight improvement[65]. Expenses and Costs - Administrative expenses increased by 23.2%, from RMB 37,578 thousand to RMB 46,294 thousand[15]. - Mobile game revenue decreased significantly from approximately RMB 146.0 million to approximately RMB 75.5 million, a reduction of RMB 70.5 million or 48.3% due to intense competition and insufficient promotional effectiveness[16]. - Research and development expenses decreased by 30.5%, from RMB 25,863 thousand to RMB 17,967 thousand[15]. - Employee benefits expenses increased to RMB 23,666 million from RMB 16,715 million, reflecting a rise of approximately 41%[61]. - The cost of sales for the year was RMB 225,799 million, slightly up from RMB 225,683 million in the previous year[61]. Income and Gains - Other income and gains increased significantly by 472.5%, from RMB 2,300 thousand to RMB 13,168 thousand[15]. - Other income for the year was CNY 13,168,000, significantly higher than CNY 2,300,000 from the previous year, marking an increase of over 471%[38]. - The company reported a foreign exchange gain of CNY 3,496,000 for the year, compared to CNY 2,837,000 in the previous year, an increase of about 23.2%[39]. Market and Strategic Focus - The company plans to leverage artificial intelligence technology to enhance its digital entertainment services and improve user experience[10]. - The company aims to increase investment in mobile game development, digital media development, and overseas market expansion[11]. - The company will continue to explore the integration of artificial intelligence technology with its business operations to create innovative product offerings[11]. - The company plans to strengthen mobile game development and actively expand into overseas markets through collaborations with well-known intellectual property and gaming companies[12]. - The company is focusing on improving its operational efficiency and exploring potential mergers and acquisitions to strengthen its market position[54]. Shareholder and Governance - No final dividend is recommended for the fiscal year ending December 31, 2024[6]. - The company established an audit committee to review and supervise the financial reporting system and internal controls[80]. - The audit committee consists of three members, all independent non-executive directors, ensuring appropriate professional qualifications[80]. - The company has adhered to all applicable corporate governance rules during the period from January 1, 2024, to March 27, 2025, except for the requirement regarding board gender diversity, which was addressed by appointing a female non-executive director on March 28, 2025[84]. Assets and Liabilities - Cash and cash equivalents as of December 31, 2024, totaled approximately RMB 3.9 million, down from RMB 37.2 million as of December 31, 2023, mainly due to a decline in business cash recovery ability[28]. - The total liabilities for current liabilities rose to RMB 353,972,000 from RMB 104,516,000 year-over-year[40]. - The company reported a significant increase in trade receivables, reaching RMB 152,689,000 from RMB 84,753,000[40]. - Trade payables amounted to RMB 129,731,000, compared to RMB 59,275,000 in the previous year[69]. Future Outlook - Future guidance indicates a cautious outlook, with expectations of gradual recovery in revenue as new products are launched and market conditions improve[54]. - The company plans to enhance its market expansion strategies and invest in new product development to counteract declining revenues[54].