Financial Performance - Revenue for the year ended December 31, 2024, was RMB 0.20 million, a decrease of 99.67% compared to RMB 61.37 million in 2023[3] - Gross profit for the same period was RMB 0.09 million, down 98.89% from RMB 8.09 million in 2023, with a gross margin of 47.21%, up from 13.18%[3] - The net loss for the year was RMB 55.71 million, an increase of 237.64% from RMB 16.50 million in 2023[3] - Basic and diluted loss per share was RMB (0.23), compared to RMB (0.07) in the previous year, reflecting a 228.57% increase in loss per share[3] - The group reported a net loss attributable to shareholders of RMB 55,709,000 for the year ended December 31, 2024, compared to a loss of RMB 16,502,000 for the year ended December 31, 2023, representing an increase in loss of 237.5%[27] - Revenue decreased by 99.68% from approximately RMB 613.7 million for the year ending December 31, 2023, to approximately RMB 0.197 million in the reporting period, primarily due to domestic economic slowdown and real estate industry defaults[37] - Gross profit fell by 98.85% from approximately RMB 8.09 million to approximately RMB 0.093 million, while the gross profit margin increased from 13.18% to 47.21% due to rising costs[37] - The company's annual loss increased by 174% from approximately RMB 16.5 million to approximately RMB 45.21 million, mainly due to significant impairment of financial assets[38] Assets and Liabilities - Total assets less current liabilities amounted to RMB (702.42 million) as of December 31, 2024, compared to RMB (646.63 million) in 2023[6] - Current liabilities net amounted to RMB (743.08 million) as of December 31, 2024, compared to RMB (699.26 million) in 2023[6] - The company reported a net loss of approximately RMB 55.71 million for the year ending December 31, 2024, with current liabilities and total liabilities at approximately RMB 743.08 million and RMB 703.68 million, respectively[33] - The debt-to-asset ratio at the end of the reporting period was 1,219.04% (2023: 792.53%), primarily due to the full provisioning of trade receivables and contract assets[45] Cash Flow and Receivables - Trade receivables significantly decreased to RMB 3.44 million from RMB 23.59 million in 2023, indicating potential cash flow issues[6] - Trade receivables decreased to RMB 40,806,000 in 2024 from RMB 758,468,000 in 2023, indicating a reduction of 94.6%[29] - Cash and cash equivalents decreased to approximately RMB 7.03 million at the end of the reporting period from RMB 10.23 million as of December 31, 2023, due to debt defaults and inability to secure new external financing[39] - Trade receivables decreased from approximately RMB 235.9 million to approximately RMB 34.4 million, attributed to improved collection management[40] Financial Management and Restructuring - The company has taken measures to improve liquidity and financial conditions, indicating ongoing concerns about its ability to continue as a going concern[14] - The group has been actively negotiating with creditors to restructure debts and reduce outstanding payables, aiming to improve financial stability[16] - The company is undergoing a debt restructuring process, with a bankruptcy restructuring application submitted to the Shenzhen Intermediate People's Court, which has been accepted[53] - The group aims to become a leading international provider of green decoration integrated services and is actively seeking new investors to mitigate debt and liquidity risks[52] Dividends and Capital Management - The board of directors did not recommend any final dividend for the years ended December 31, 2024, and 2023[28] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2024 (2023: none)[64] Auditor and Reporting - The audit committee has reviewed the accounting principles and discussed risk management and internal controls related to the financial reporting for the year ending December 31, 2024[65] - The group's auditor confirmed that the preliminary announcement aligns with the audited consolidated financial statements for the year ending December 31, 2024[66] - The annual performance announcement has been published on the Hong Kong Stock Exchange website and the company's website, with the annual report to be sent to shareholders as required[68] Industry Context - The construction and decoration industry is facing significant operational challenges, but there are opportunities for growth as government policies towards the real estate sector improve[35]
爱得威建设集团(06189) - 2024 - 年度业绩