Financial Performance - The company recorded revenue of approximately HKD 41,485,000 for the year, a decrease of about 15.7% compared to HKD 49,228,000 in the previous year[12] - Gross profit for the year was approximately HKD 22,398,000, with a gross margin of 54.0%, an increase from 45.8% in the previous year[12] - The loss attributable to equity holders for the year was approximately HKD 37,634,000, compared to a loss of HKD 20,876,000 in the previous year, primarily due to fair value losses on investment properties increasing from HKD 5,536,000 to HKD 20,617,000[12] - The group's revenue for 2024 is approximately HKD 41,485,000, a decrease of 15.7% from HKD 49,228,000 in 2023, mainly due to reduced sales of computer hardware and software[48] - The total cost of sales and services for 2024 is approximately HKD 19,087,000, a decrease of 28.4% from HKD 26,660,000 in 2023, attributed to reduced transactions in computer hardware and software[49] - The group's gross profit for 2024 is approximately HKD 22,398,000, a slight decrease of about HKD 170,000 from HKD 22,568,000 in 2023[50] - Other income and gains for the fiscal year ending December 31, 2024, is approximately HKD 1,031,000, down from HKD 3,472,000 in 2023, primarily due to a decrease in other interest income[51] - Selling and distribution expenses for 2024 are approximately HKD 1,580,000, a significant decrease from HKD 8,990,000 in 2023, as there were no related expenses this year[52] - Administrative expenses for 2024 are approximately HKD 34,076,000, a decrease of 12.6% from HKD 38,979,000 in 2023, due to reduced advertising and legal costs[53] - The fair value loss of the investment portfolio as of December 31, 2024, is approximately HKD 202,000, compared to a gain of HKD 29,000 in 2023[54] - The loss attributable to owners of the company in 2024 was approximately HKD 37,634,000, an increase from HKD 20,876,000 in 2023, primarily due to the increase in fair value loss of investment properties[57] - As of December 31, 2024, the group's cash and bank balances decreased to approximately HKD 5,371,000 from HKD 11,595,000 as of December 31, 2023[58] - Total borrowings as of December 31, 2024, were approximately HKD 60,740,000, down from HKD 65,033,000 in 2023, with a debt-to-equity ratio of 0.25[58] Strategic Initiatives - The company strategically focused on technological advancements in cloud computing, Web 3.0, and artificial intelligence to meet evolving customer demands[13] - The company acquired Popsible Limited, which provides IT and public relations services aligned with customer strategic goals, broadening revenue sources[13] - The company emphasized the importance of innovative solutions amid rapid digital transformation across industries[13] - The company has established a joint venture to promote sustainable changes in the ESG sector in Dubai[14] - The company has formed strategic partnerships with Masary Capital to establish business relationships in the UAE and the broader GCC region[14] - The company plans to leverage technological advancements and the growing demand for digital transformation across industries, focusing on AI, cybersecurity, and machine learning for future growth[46] Audit and Compliance - The independent auditor expressed a qualified opinion due to insufficient audit evidence regarding the service agreements[18] - The company has implemented remedial measures to address internal control deficiencies identified during the audit process[23] - The management has made efforts to provide all available information for the audit, but was unable to supply all requested documents[22] - The company anticipates that the audit opinion will be removed from the financial statements for the fiscal year ending December 31, 2025, as the basis for the opinion will be addressed in the consolidated financial statements for that year[27] - The company will continue to comply with applicable GEM listing rules and ensure proper handling of audit opinions in future financial statements[27] Share Capital and Stock Options - The company plans to issue 12,353,000 subscription shares at HKD 6.31 each, which represents approximately 16.86% of the existing issued share capital[36] - The expected total proceeds from the subscription are approximately HKD 77,950,000, with net proceeds estimated at HKD 77,750,000 after expenses[38] - 70% of the net proceeds from the subscription will be allocated for general operating funds in the UAE, while 30% will be used for general operating funds in Hong Kong[38] - The company has granted a total of 23,900,000 stock options under the 2012 Stock Option Plan as of May 13, 2021, and an additional 16,360,000 stock options on June 16, 2022[110] - A total of 267,562 stock options have expired during the year, leaving 3,835,213 stock options available for issuance, which represents 5.23% of the total shares issued as of the report date[113] - The 2012 Stock Option Plan allows for a maximum of 34,314,132 stock options to be granted, equivalent to 10% of the total shares issued as of November 5, 2021[113] - The exercise period for the stock options granted on May 13, 2021, and June 16, 2022, is set for 10 years, expiring on May 12, 2031, and June 15, 2032, respectively[115] - The company has established a 2023 stock option plan to reward selected qualified individuals for their contributions to the group's growth and development[108] - The total number of stock options that have lapsed or been canceled is 267,562[121] Corporate Governance - The company has a commitment to high standards of business ethics and corporate governance, with policies communicated to all employees[156] - The company encourages stakeholder engagement through various channels to balance the interests of customers, suppliers, and employees[145] - The board consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors[158] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM listing rules[162] - The board has implemented a diversity policy, considering factors such as gender, age, and professional experience to enhance board diversity[185] - The company is committed to maintaining gender diversity in its workforce and will continue to recruit more female talent[192] - The board is currently seeking new independent non-executive directors based on candidates' experience and GEM listing rules[173] Employee and Management Information - The total employee benefit expenses for the year ended December 31, 2024, were approximately HKD 24,216,000, compared to HKD 21,744,000 in 2023[67] - The group employed 70 staff as of December 31, 2024, an increase from 61 in 2023[67] - The remuneration for a senior management member (excluding directors) ranges from HKD 0 to HKD 550,000 for the year[181] - No director has waived any remuneration for the year ending December 31, 2024[109] - The remuneration committee will review and recommend compensation for newly appointed directors and senior management[183]
中国信息科技(08178) - 2024 - 年度财报