Financial Performance - Revenue for the year ended December 31, 2024, was $13.764 million, a decrease of 49% compared to $27.255 million in 2023[6] - Loss attributable to owners of the company was $(48.128) million, representing a 22% increase from $(39.566) million in the previous year[6] - Total assets decreased by 27% to $79.803 million from $108.949 million in 2023[6] - Trade receivables fell by 34% to $59.239 million compared to $89.523 million in 2023[6] - The gross profit for 2024 was approximately $2.2 million, down from about $2.8 million in 2023[14] - The annual loss for 2024 was $48 million, an increase of 22% from the $40 million loss in 2023[14] - The company's sales revenue for the year ended December 31, 2024, was $13.76 million, a decrease of 49.5% compared to $27.26 million in 2023[34] - The sales cost for the year ended December 31, 2024, was approximately $11.6 million, a decrease of 52.5% from about $24.4 million in 2023[37] - Gross profit for the year ended December 31, 2024, was approximately $2.2 million, a decrease from approximately $2.8 million for the year ended December 31, 2023, primarily due to insufficient sales of iron ore and electronic products[38] - The group recorded a loss of approximately $48.2 million for the year ended December 31, 2024, compared to a loss of approximately $39.6 million in 2023, with the increase mainly attributed to higher impairment losses on financial assets[42] Business Operations and Strategy - The company continued to invest in research and development, focusing on plant stem cell products to enhance market competitiveness[13] - The company aims to expand the application of plant stem cell products in health, beauty, and pharmaceutical sectors[13] - The company plans to launch innovative plant stem cell traditional Chinese medicine products to meet the growing market demand for high-quality health products[17] - The company aims to install 10,000 vending machines in high-traffic areas to reach a broader consumer base for its functional health products[18] - The plant stem cell business has become one of the company's most important revenue sources, with significant growth momentum expected to continue in the second half of the year[17] - Future strategies include enhancing technology research, market expansion, and sustainable operations to maintain competitive advantages globally[13] - In 2025, the company plans to open over 50 plant stem cell health management centers nationwide to provide personalized health solutions[24] Market Trends and Industry Insights - The health industry in China is projected to reach a market value of 16 trillion yuan by 2030, driven by rising health awareness and consumption upgrades[26] - The Chinese health supplement market reached 387.9 billion yuan in 2023, growing by 29.78% year-on-year, and is expected to reach 506.7 billion yuan by 2028, with a CAGR of 19.59%[29] - The per capita disposable income of urban residents increased from 19,000 yuan in 2010 to 52,000 yuan in 2023, supporting the growth of the health supplement market[29] - The aging population in China, with those aged 65 and above reaching 14.27% in 2023, is expected to drive future demand for health products[30] Financial Position and Liabilities - Current liabilities increased from approximately $134.4 million as of December 31, 2023, to approximately $182.5 million as of December 31, 2024, primarily due to a decrease in trade receivables and an increase in notes payable[49] - The company has approximately $193.26 million in outstanding payments to the ultimate holding company, banks, and other borrowings, while cash and cash equivalents totaled only about $248,000[128] - The ultimate holding company has agreed not to demand repayment of approximately $60 million due by December 31, 2024, until the company's financial situation allows[125] - Independent third-party lenders have agreed not to demand repayment of approximately $18.34 million in principal and $9.74 million in interest due by December 31, 2024, until the company's financial situation allows[125] Governance and Compliance - The board of directors consists of three executive directors and three independent non-executive directors, ensuring accountability and transparency in governance[80] - The company has established an audit committee, nomination committee, and remuneration committee to oversee specific matters, with most members being independent non-executive directors[88] - The audit committee reviewed the audited financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations[89] - The company has a diversity policy in place for evaluating potential board candidates, considering factors such as gender, age, and professional experience[97] - The company has established a robust risk management framework since 2016, following the COSO framework for effective risk management[103] Environmental and Social Responsibility - The company emphasizes sustainable development and environmental measures in its production processes[13] - The group complies with all relevant environmental protection laws and regulations, with no confirmed non-compliance incidents or complaints reported for the fiscal year 2024[144] - The group is committed to integrating sustainable development concepts into daily operations and continuously seeks opportunities to improve performance and reduce environmental impact[143] - The total greenhouse gas emissions for fiscal year 2024 amounted to 68,098.82 kg, a substantial increase of 194.5% compared to 23,126.59 kg in fiscal year 2023[159] - The company has implemented measures to reduce energy consumption, including using energy-saving facilities and turning off unused lighting and appliances[154] Employee and Workplace Practices - The company employed 40 employees as of December 31, 2024, a decrease of 11.1% from 45 employees in 2023[164] - The number of male employees decreased from 32 in 2023 to 22 in 2024, while female employees increased from 13 to 18 during the same period[164] - Employee turnover rates for fiscal year 2024 are as follows: under 30 years old at 15.00%, 31 to 50 years old at 65.00%, and over 51 years old at 20.00%[167] - The company has implemented policies to ensure a safe and healthy work environment, including regular safety inspections and fire drills[172] - The company has not reported any workplace injuries in fiscal years 2024 and 2023[170] Community Engagement and Ethical Practices - The group encourages employee participation in community service to contribute to a more sustainable and harmonious society[183] - The group has established a confidential reporting channel for employees and external stakeholders to report unethical behavior[181] - The group actively participates in industry initiatives to combat corruption and financial crimes, maintaining clear policies against such practices[181]
恩典生命科技(02112) - 2024 - 年度业绩