Financial Performance - Revenue for the year 2024 was $13.764 million, a decrease of 49% compared to $27.255 million in 2023[4] - Loss attributable to the company's owners was $(48.128) million, representing a 22% increase from $(39.566) million in the previous year[4] - Total assets decreased by 27% to $79.803 million from $108.949 million in 2023[4] - The current ratio decreased to 0.25 from 0.4 in the previous year, indicating a decline in liquidity[4] - Basic loss per share increased to 3.21 cents from 2.63 cents in 2023[4] - The gross profit for 2024 was approximately $2.2 million, down from about $2.8 million in 2023[12] - The annual loss for 2024 was $48 million, an increase of 22% from the $40 million loss in 2023[12] - The company's sales revenue for the year ending December 31, 2024, was approximately $13.76 million, a decrease of 49.5% compared to $27.26 million in 2023[32] - The sales of health products amounted to $13.25 million in 2024, showing a slight increase of 1.79% from $13.02 million in 2023[32] - The cost of sales for the company decreased by approximately 52.5% to about $11.6 million in 2024, down from approximately $24.4 million in 2023[35] - The iron ore sales generated no revenue in 2024, compared to $8.6 million in 2023, primarily due to market uncertainties[34] - 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[40] - As of December 31, 2024, the group had a capital deficiency of approximately $167.5 million, compared to $119.9 million as of December 31, 2023[41] - The net 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[47] - The company has a total of approximately $193.26 million in debts owed to the ultimate holding company, banks, and other borrowings[126] Operational Strategy - The company continued to invest in R&D and market expansion in the plant stem cell business, enhancing product efficacy and competitiveness[11] - The company aims to diversify applications of plant stem cell products in health, beauty, and pharmaceuticals to expand market coverage[11] - The company plans to establish a global R&D center and collaborate with renowned research institutions to focus on key technological breakthroughs in plant stem cell technology[22] - The company aims to install 10,000 vending machines nationwide to enhance market reach for its functional health products[16] - The company plans to open over 50 plant stem cell health management centers across the country in 2025 to provide personalized health solutions[22] - The company is actively seeking strategic investors to optimize production processes and enhance cash flow for future recovery[21] - The company plans to establish a production base and sales channels for functional health products based on plant stem cell research, expected to generate significant operating cash flow by 2025[123] Environmental Commitment - The company is committed to sustainable development, implementing environmental measures to ensure efficient resource use and reduce carbon emissions[11] - 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[142] - The total air emissions are minimal due to the limited scale of mining and production activities, with no recorded data for the fiscal year 2024[143] - The group is committed to integrating sustainable development concepts into daily operations and continuously seeks opportunities to improve performance and reduce environmental impact[141] - The company has adhered to all relevant laws and regulations regarding waste management, with no significant non-compliance incidents reported in fiscal years 2024 and 2023[154] - The company has committed to a paperless operation system by promoting the use of technology in communications and encouraging double-sided printing[155] Employee and Governance - As of December 31, 2024, the company employed 40 employees, down from 45 in 2023, with total employee costs, including director remuneration, approximately 1.3 million dollars[62] - The company has a comprehensive support policy for pregnant employees, ensuring they can return to their original positions after maternity leave[166] - There were no reported injury cases in fiscal years 2024 and 2023, indicating a safe working environment[168] - The company emphasizes a competitive compensation policy to retain talent, adjusting salaries annually to meet market standards[165] - The company has established an audit committee, nomination committee, and remuneration committee to oversee specific matters, with most members being independent non-executive directors[86] - The board of directors consists of three executive directors and three independent non-executive directors as of December 31, 2024[78] - The company has implemented measures to address the "unable to express opinion" issue raised by auditors, focusing on improving its financial situation and operational cash flow[125] Risk Management - The company has established a robust risk management framework since 2016, following the COSO framework for effective risk management[101] - The main risk identified for 2024 is the potential decrease in business due to economic recession or political instability, particularly affecting iron ore sales[103] - The audit committee has reviewed the internal control and risk assessment reports, confirming the effectiveness of the internal control system[107] - The risk register is maintained to track identified risks and actions taken to mitigate them, with annual evaluations of risks based on their likelihood and potential impact[105] Market Trends - 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[24] - The health supplement market in China reached a scale of 387.9 billion yuan in 2023, with a year-on-year growth of 29.78%, and is expected to grow to 506.7 billion yuan by 2028, reflecting a 19.59% increase[27] - The per capita disposable income of urban residents in China increased from 19,000 yuan in 2010 to 52,000 yuan in 2023, supporting the growth of the health supplement market[27] - The aging population in China, with those aged 60 and above increasing from 185 million (13.7%) in 2011 to 297 million (21.1%) in 2023, is expected to drive future demand in the health industry[28] Corporate Governance - The company has a policy regarding the health and safety of its products and services, ensuring compliance with relevant laws and regulations[189] - The company has implemented policies to prevent child labor and forced labor, with measures in place to review recruitment practices[189] - The group has fully complied with the Personal Data (Privacy) Ordinance and other relevant laws to protect the rights of employees, customers, and business partners[178] - The group maintains a clear policy against corruption and has established a confidential reporting channel for employees and external stakeholders to report unethical behavior[179]
恩典生命科技(02112) - 2024 - 年度财报