OCFT(OCFT)2025-04-24 10:48Revenue Performance - Revenue from continuing operations decreased by 36.2% to RMB2,248.1 million for the year ended December 31, 2024, down from RMB3,521.6 million in 2023[47]. - Implementation revenue decreased by 20.4% to RMB664.1 million, while transaction-based and support revenue decreased by 41.0% to RMB1,583.98 million[47]. - Revenue for the year ended December 31, 2024, was RMB2,248.1 million, a decline of 36.3% compared to RMB3,521.6 million in 2023[95]. - For the year ended December 31, 2024, the Group's total revenue decreased to RMB 2,292,398, down from RMB 3,667,508 in 2023, representing a decline of approximately 37.5%[120]. - Revenue from the cloud services platform significantly decreased to RMB 618,088 in 2024 from RMB 1,245,952 in 2023, primarily due to the cessation of relevant services by subsidiaries of Ping An Insurance[125]. Profitability and Losses - Gross profit from continuing operations decreased by 39.3% to RMB804.5 million, with a gross margin of 35.8% compared to 37.7% in 2023[49]. - Loss from continuing operations increased to RMB704.7 million for the year ended December 31, 2024, compared to RMB220.1 million in 2023[70]. - The net loss for the year from continuing operations increased to RMB704.7 million in 2024, compared to a loss of RMB220.1 million in 2023, reflecting a deterioration in financial performance[95]. - The total comprehensive loss for the year was RMB 335,999,000 in 2023, which worsened to RMB 409,477,000 in 2024, indicating an increase of 22%[100]. - Loss from continuing operations attributable to owners of the Company increased from RMB 211,342,000 in 2023 to RMB 669,176,000 in 2024, representing a significant rise of 216%[149]. - Basic and diluted loss per share for continuing operations rose from RMB 0.19 in 2023 to RMB 0.61 in 2024, indicating a 221% increase[149]. Expenses - Research and development expenses decreased by 46.5% to RMB510.9 million, reflecting a decrease in personnel costs[50]. - Selling and marketing expenses decreased by 26.6% to RMB177.3 million, attributed to reduced personnel and advertising costs[51]. - General and administrative expenses decreased by 18.7% to RMB305.1 million, primarily due to lower labor and workplace expenses[52]. - Total costs for revenue, research and development, selling and marketing expenses, and general and administrative expenses decreased from RMB 3,767,515,000 in 2023 to RMB 2,436,899,000 in 2024, representing a reduction of about 35.4%[132]. Cash Flow and Liquidity - Net cash used in operating activities was RMB276.8 million, while net cash generated from investing activities was RMB1,106.3 million[72]. - As of December 31, 2024, cash and cash equivalents increased to RMB1,947.9 million from RMB1,379.5 million as of December 31, 2023, representing a growth of 41.3%[75]. - The Company reported a net cash used in operating activities of RMB 648,461,000 in 2023, which improved to RMB 276,849,000 in 2024, indicating a reduction of 57%[101]. - Net cash generated from investing activities significantly increased from RMB 318,634,000 in 2023 to RMB 1,106,256,000 in 2024, marking a growth of 276%[101]. - The company had no significant liquidity risk and sufficient working capital as of December 31, 2024[76]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB8,068.4 million, a significant increase from RMB3,967.3 million as of December 31, 2023[97]. - Total current liabilities rose to RMB 5,073,078,000 in 2023 from RMB 1,439,693,000 in 2022, reflecting an increase of 253%[98]. - The Company’s total liabilities increased to RMB 5,120,566,000 in 2023 from RMB 1,463,309,000 in 2022, representing an increase of 250%[98]. - The Group's total liabilities for 2024 were RMB 1,463,309 for continuing operations, with segment liabilities for Technology Solutions at RMB 1,463,309[122]. - Trade receivables decreased from RMB 779,458,000 in 2023 to RMB 582,068,000 in 2024, a decline of 25%[163]. Impairments and Provisions - Goodwill impairment of RMB131.9 million was recognized in 2024 due to the strategic discontinuation of cloud services and challenging market conditions[57]. - The Group recognized an impairment loss against goodwill of RMB 131,901,000 in 2024, reflecting challenges in the Technology Solution segment[156]. - The impairment loss allowance for trade receivables increased from RMB 68,789,000 in 2023 to RMB 75,533,000 in 2024, showing a rise of 10%[163]. Corporate Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period, except for provisions C.2.1 and C.6.2[169]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed full compliance by all directors during the reporting period[173][174]. - The audit committee has reviewed the unaudited annual results for the year ended December 31, 2024, and met with the independent auditor, PricewaterhouseCoopers[175]. Discontinued Operations - The company reported a loss after income tax from discontinued operations of RMB 151,373,000 in 2023, which improved to a profit of RMB 209,499,000 in 2024 following the sale of subsidiaries[147]. - The total comprehensive income from discontinued operations improved from a loss of RMB 141,249,000 in 2023 to a gain of RMB 233,969,000 in 2024[147]. - The cash consideration received from the sale of subsidiaries in 2024 was RMB 839,087,000, resulting in a net cash inflow of RMB 723,171,000 after accounting for cash and bank balances disposed of[148]. Future Outlook - The Group's revenue growth rate is projected to decline between -10% to -13% in 2023 and -25% to 10% in 2024, indicating a challenging market environment[161]. - The Group is currently assessing the implications of adopting IFRS 18, which is expected to impact the presentation and disclosure of financial statements starting January 1, 2027[112].