Cryptocurrency Mining Industry - The cryptocurrency mining industry is experiencing a critical turning point with the upcoming Bitcoin halving event, leading to a significant reduction in miner revenues and necessitating upgrades in technology and operational models[11]. - The company is optimistic about the future of the cryptocurrency mining industry, expecting improvements in efficiency and sustainability as the ecosystem matures[12]. - The company aims to diversify its revenue streams and maintain market competitiveness through the optimization of its mining operations[12]. Web3.0 Development - The company plans to invest a significant portion of the funds raised from the recent placement into the development of Web3.0 products, which represent a new stage in internet development[14]. - The company believes that the growing market demand for Web3.0 services remains unsaturated, positioning itself as a pioneer in capturing potential market share[13]. - The company has initiated research and development activities related to blockchain and Web 3.0 applications and infrastructure[35]. Data Center Operations - The company has successfully optimized its data center in Indiana, resulting in reduced power costs and stable cash flow, with no major incidents reported throughout the year[12]. - The establishment of a data center is expected to effectively position and set up operations for the analysis platform and DEX aggregator, expanding the company's business scale[13]. - The data center services generated revenue of approximately HKD 56,000,000, an increase of about HKD 34,000,000 compared to the same period in 2023, primarily due to the contribution from the new US data center[19]. Financial Performance - The company recorded total revenue of approximately HKD 58,100,000 for the year, an increase of HKD 32,900,000 compared to HKD 25,200,000 in the previous year[36]. - The company reported a loss of approximately HKD 13,100,000 for the year, a reduction of 57.2% from a loss of HKD 30,600,000 in the previous year[40]. - The lending business generated revenue of approximately HKD 2,100,000, a decrease of HKD 1,100,000 from HKD 3,200,000 in the previous year[38]. Lending Operations - The lending business recorded interest income of approximately HKD 1,800,000 for the year, with total revenue from the lending business amounting to about HKD 2,100,000[23]. - The company has implemented internal control measures to ensure risk management in its lending activities, safeguarding the interests of the company and its shareholders[24]. - The company has established a credit risk assessment process to evaluate potential clients' credit ratings, repayment ability, and overall credit risk[25]. Corporate Governance - The company emphasizes values such as innovation, sustainability, integrity, responsibility, and collaboration in its business operations[79][80][81]. - The management has committed to improving corporate governance practices and ensuring compliance with the GEM Listing Rules[77][78]. - The board consists of six members, with three independent non-executive directors, exceeding the GEM listing rule requirement of one-third[87]. Risk Management - The board is responsible for ensuring a robust internal control and risk management system to protect shareholder investments and the group's assets[131]. - The risk management policy provides a framework for identifying and assessing significant business, operational, financial, and compliance risks[133]. - The internal control system aims to protect assets from misappropriation and unauthorized disposal, managing operational risks[135]. Shareholder Communication - The company maintains effective communication with shareholders through various channels, ensuring timely and equal access to information[149]. - The board encourages shareholder participation in the annual general meeting, providing an opportunity for questions and discussions[147]. - The company supports corporate governance principles that encourage shareholder engagement and participation[147]. Employee and Director Compensation - Total compensation for directors and the CEO was approximately HKD 2,700,000 for the year ending December 31, 2024, up from HKD 2,000,000 in 2023[60]. - The company continues to provide employee compensation packages in line with market practices and past performance, including mandatory provident fund and medical insurance[60]. - The company employed a total of 36 employees as of December 31, 2024, compared to 18 employees in 2023[60]. Legal and Regulatory Compliance - The company continues to comply with relevant laws and regulations affecting its business operations[170]. - The company has faced various risks related to legal and regulatory compliance, particularly as it expands operations in Hong Kong and the United States, which may affect its reputation and legal liabilities[158]. - The company has not faced any environmental claims, lawsuits, penalties, or disciplinary actions during the year[168].
加幂科技(08198) - 2024 - 年度财报