Business Performance - The company achieved a GMV of $1.3 billion for its self-built e-commerce platform MARTOP within two years, focusing on the ASEAN market[9]. - The blockchain business, in collaboration with Poly Culture Technology, generated a total GMV of over 2.4 billion RMB in 2024 from digital asset services[13]. - The company has transitioned from big data algorithm marketing to AI algorithm marketing, significantly enhancing its overseas e-commerce GMV[12]. - The group’s revenue for the year ended December 31, 2024, was HKD 113.31 million, a decrease of 97.77% compared to HKD 5,083.99 million in 2023[17]. - The gross profit for the same period was HKD 1.05 million, down 99.77% from HKD 459.57 million in 2023[17]. - The net loss attributable to shareholders for the year was HKD 1,068.48 million, an increase of 36.26% from HKD 784.17 million in 2023[17]. - The company reported a net loss margin of 942.97% for 2024, compared to 15.42% in 2023, reflecting a significant decline[17]. - The overseas e-commerce sales revenue was HKD 32.80 million, a decrease of 99.29% from HKD 4,587.90 million in 2023[19]. - The group recorded a net loss of HKD 1,107,321,000 and negative operating cash flow of HKD 54,538,000 for the year ended December 31, 2024[196]. Technological Advancements - The AIGC technology has been successfully applied in film production, with the film "Another Hopeful Day" winning the "Best Small and Medium Budget Story Film" award at the 37th China Golden Rooster Awards[14]. - The establishment of a mixed-ownership reform company with Poly Culture has allowed the company to leverage AI and blockchain technologies in the cultural industry[9]. - The company has made significant investments in AI capabilities, completing the development of its proprietary AI model knowledge base[10]. - The company is leveraging its AI model development capabilities in the field of AI mental healthcare, contributing to innovative healthcare solutions[23]. - The company has successfully completed its first data asset entry work by the end of 2024, marking a significant achievement as the first state-owned cultural enterprise to do so, enhancing its competitive advantage in the digital entertainment sector[29]. - The company has integrated AIGC technology into film production, significantly reducing costs while improving efficiency and quality, with notable success in the short film market[32]. - The company is actively developing AIGC applications, integrating advanced algorithm marketing into local markets to capture opportunities in Southeast Asia[50]. Strategic Partnerships and Collaborations - The company has established a strategic partnership with JD Technology Group to create a leading AI blockchain platform in China[13]. - The "Kongjian" platform, developed in collaboration with Poly Culture and JD Technology Group, serves as a digital asset service platform for the film and entertainment industry, focusing on customer value and consumption insights[27]. - The company has partnered with Minsheng Bank to create a co-branded credit card in the cultural sector, promoting the integration of finance and culture[34]. - The company has signed a strategic cooperation agreement with Hainan Publishing and Distribution Group to enhance short drama production capabilities[37]. - The company has secured initial cooperation agreements with multiple local governments for cultural tourism projects, including the Yangxi Cultural City project[38]. - The group has initiated multiple cooperation projects in film and entertainment content incubation, online promotion, and digital asset business with state-owned enterprises[72]. Financial Management and Capital Structure - The company is actively seeking strategic investors and partners to inject new capital and assets to improve financial performance[10]. - The company plans to complete the construction of its AI application service system and achieve business profitability by 2025, enhancing customer experience and expanding market reach[43]. - The company's capital-to-debt ratio increased to 49.02% as of December 31, 2024, compared to 15.66% as of December 31, 2023, indicating a significant rise in leverage[105]. - The current ratio decreased from 7.75 times as of December 31, 2023, to 1.86 times as of December 31, 2024, reflecting a tighter liquidity position[106]. - The company believes it has sufficient financial resources to repay due debts within the next twelve months[196]. - The company had no significant investments or acquisitions during the reporting period, indicating a conservative approach to capital allocation[100]. Governance and Corporate Structure - The company has adopted a corporate governance code to ensure high standards of governance and protect shareholder interests[144]. - The board consists of experienced individuals who regularly meet to discuss business matters affecting the company[145]. - The company has established a board diversity policy to achieve diversity goals[147]. - The company emphasizes the importance of a robust risk management and internal control system for achieving long-term goals[197]. - The board of directors is responsible for ensuring effective risk management and internal control systems to protect assets and shareholder interests[198]. - The company has established a "three lines of defense" risk management model to clarify responsibilities and reporting processes[199]. Employee Incentives and Development - The company adopted a share incentive plan on June 21, 2021, to motivate directors and employees, with no shares granted under the plan in the last 12 months[110][111]. - The company adopted the "Leisure International Share Incentive Plan" on September 28, 2023, aimed at incentivizing certain directors and employees to contribute to the group's ongoing operations and development[118]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[183]. - The employee count as of December 31, 2024, was 70, with over 58.6% engaged in R&D, technology, and operations, highlighting a focus on innovation and operational efficiency[109].
乐享集团(06988) - 2024 - 年度财报