Financial Performance - For the year ended December 31, 2024, the Group achieved a revenue increase of approximately RMB 22.3 million or 8.70%, totaling approximately RMB 278.2 million compared to the previous year[15]. - The Group's profit for the year ended December 31, 2024, decreased by approximately RMB 0.3 million or 1.3%, amounting to RMB 20.1 million, primarily due to increased subcontracting charges[15]. - Revenue for 2024 increased to RMB 278,223,000 from RMB 255,959,000 in 2023, representing a growth of approximately 8.9%[27]. - Other income rose significantly to RMB 4,020,000 in 2024, compared to RMB 1,834,000 in 2023, marking an increase of 119.5%[27]. - Operating profit decreased to RMB 20,876,000 in 2024 from RMB 23,961,000 in 2023, a decline of about 8.7%[27]. - Profit before tax for 2024 was RMB 21,916,000, slightly down from RMB 23,083,000 in 2023, reflecting a decrease of 5.1%[27]. - Profit for the year attributable to equity holders of the Company was RMB 20,140,000 in 2024, compared to RMB 20,397,000 in 2023, a decrease of 1.3%[27]. - Employee benefit expenses increased to RMB 19,357,000 in 2024 from RMB 17,124,000 in 2023, an increase of 13.1%[27]. - Subcontracting charges rose to RMB 186,868,000 in 2024, up from RMB 153,847,000 in 2023, indicating an increase of 21.5%[27]. - The Group's net profit margin decreased from approximately 8.0% for the year ended 31 December 2023 to approximately 7.2% for the year ended 31 December 2024[95]. Market Opportunities and Challenges - The ICT industry in the PRC is undergoing significant digital transformation, presenting both opportunities and challenges due to market saturation and intensified competition[19]. - The Company plans to optimize and enhance its ICT integration services and software development to capitalize on digital transformation opportunities[20]. - There is significant demand for ICT infrastructure construction in overseas markets, particularly in developing countries, which provides expansion opportunities for the Company[19]. - Increased customer demands for service quality and technological innovation are raising expectations for the Company's comprehensive capabilities[19]. - The Company acknowledges challenges in international trade environments, cultural differences, and technical barriers that may impact overseas expansion efforts[19]. - The Group faces challenges in international expansion due to uncertainties in the trade environment and cultural differences, despite significant demand for ICT infrastructure in developing countries[48]. Strategic Initiatives - The Group aims to delve deeper into emerging areas such as the third-generation Internet and artificial intelligence to deliver long-term value for shareholders[20]. - The Group aims to enhance its ICT integration services and explore opportunities in digital transformation, including third-generation internet and artificial intelligence[27]. - The management expresses confidence in creating long-term value for shareholders through ongoing improvements and strategic initiatives[24][26]. - The Group will continue to focus on providing telecommunication network support services, including maintenance and engineering services[29][34]. Corporate Governance and Leadership - The Group's successful listing has also strengthened its internal control functions and promoted its image as a well-organized establishment to the public[14]. - The Group issued 125,000,000 shares at HK$1.00 each, resulting in net proceeds of approximately HK$60.6 million (equivalent to approximately RMB 56.0 million) after deducting underwriting commissions and related expenses[125]. - The Company has adopted various policies to ensure compliance with the Corporate Governance Code, with a noted deviation regarding the roles of the Chairman and CEO being held by the same individual[194]. - The Company recognizes the importance of high corporate governance standards to enhance corporate value and accountability[193]. - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[198]. Financial Position and Utilization of Proceeds - Cash and cash equivalents increased to approximately RMB105.0 million as at 31 December 2024, representing an increase of approximately 341.2% compared to RMB23.8 million as at 31 December 2023[99]. - The current ratio improved to approximately 2.4 as at 31 December 2024, compared to approximately 1.9 as at 31 December 2023[98]. - Total bank borrowings amounted to approximately RMB31.8 million as at 31 December 2024, up from RMB20.0 million in 2023[105]. - The gearing ratio decreased to 20.8% as at 31 December 2024, compared to 32.9% as at 31 December 2023[108]. - The Group plans to utilize the net proceeds from the share issuance as previously disclosed, with no changes to the intended use or expected implementation timeline[129]. - 20.5% of net proceeds (approximately RMB 11.5 million) allocated to finance initial funding needs for future ICT integration projects, with an expected full utilization by the end of 2027[131]. - 34.6% of net proceeds (approximately RMB 19.4 million) designated for pursuing new research and development undertakings, expected to be fully utilized by the end of 2027[131]. - 19.8% of net proceeds (approximately RMB 11.1 million) aimed at expanding manpower in project management to support anticipated business growth, with full utilization expected by the end of 2026[131]. - 5.4% of net proceeds (approximately RMB 3.0 million) allocated for financing sales and marketing funding needs for manpower and marketing activities, expected to be fully utilized by the end of 2026[131]. - 12.9% of net proceeds (approximately RMB 7.2 million) set aside for repaying part of bank borrowings, with no applicable timeline for full utilization[131]. - 6.8% of net proceeds (approximately RMB 3.8 million) for general working capital, expected to be fully utilized by the end of 2025[131]. - As of the report date, unutilized net proceeds amount to approximately RMB 32.9 million[131]. - Unutilized net proceeds have been placed as bank balances with licensed banks in Hong Kong[133]. - The Directors are not aware of any material change to the planned use of the net proceeds as of the report date[132]. - The total allocation of net proceeds amounts to 100%, with actual utilization reported at approximately RMB 56.0 million[131]. Leadership Appointments and Experience - Mr. Li Shihua was appointed as Executive Director on September 26, 2024, and is also the chairman of the investment committee[148]. - Mr. Li has extensive investment experience, having served as investment vice president at Silkroad Goldenbridge Capital Management Limited from July 2023 to March 2024[149]. - Mr. Qian Fenglei was appointed as Executive Director on February 11, 2025, and has a background in managing investment companies across various sectors[150]. - Mr. Lin Qihao, appointed as Non-executive Director on September 14, 2021, has over 24 years of experience in the electronic technology industry[153]. - Dr. Leung Kwong Sak was appointed as Independent Non-executive Director on December 15, 2023, and serves on multiple committees including the audit committee[155]. - Dr. Leung has over 40 years of experience in computer science and engineering, serving in various academic roles at the Chinese University of Hong Kong[161]. - Mr. Wong has over 30 years of experience in auditing and accounting, currently serving as an independent non-executive director and chairman of multiple committees[165]. - Ms. Dan holds a bachelor's degree in laws and French and a master's degree in laws, currently serving as an independent non-executive director[172]. - Mr. Wong has been the sole proprietor of Eddy Wong & Co. since May 1994, and has served as an independent non-executive director for several listed companies[165]. - Ms. Dan is a senior partner at Beijing Dacheng Law Offices and has held various legal positions since 2013[173]. - Mr. Wong has been involved with companies that faced significant financial challenges, including a winding-up petition against China All Access for HK$1,451,584,773.03[165]. - Dr. Leung was awarded the title of emeritus professor by CUHK in August 2018, reflecting his distinguished academic career[161]. - Ms. Dan has been active in legal mediation and arbitration, serving as a commercial mediator and arbitrator since 2021[173]. - Mr. Wong has been an independent non-executive director of Sun Hing Vision Group Holdings Limited since September 2004[165]. - Dr. Leung's academic contributions include serving as a chair professor until July 2018 and as a research professor until July 2021[161]. - Ms. Chen Shenmao has been appointed as the vice general manager and financial controller of the Group since December 2023, overseeing finance, administration, and human resources[176]. - Mr. Li Fei, aged 39, is the general manager of Guangdong Jingwei Infinite IoT Technology Co., Ltd., responsible for software development of wireless communication products and business expansion in cloud computing and IoT[180]. - Mr. Xian Zhigang has been serving as the director of research and development and general manager of Zhuhai New Technology Research Institute since 2016 and 2025 respectively, with 16 years of experience in communication and R&D[184]. - The Group's financial management is led by Ms. Chen, who has over 20 years of experience in accounting and finance, recognized as a senior accountant in May 2020[179]. - The Company has a focus on expanding its cloud computing and IoT business under Mr. Li's leadership, leveraging his extensive experience in communication applications[182]. - The Group's R&D efforts are managed by Mr. Xian, who has been recognized as a System Architecture Designer by relevant authorities in November 2019[185]. - The Company aims to enhance its software product offerings through the management of the Research Institute, which is overseen by Mr. Xian[184]. - Ms. Chen's role includes supervising the financial functions of the Group, ensuring effective financial control and administration[176]. - The Group's strategic direction includes a commitment to innovation in wireless communication technologies and software development[180]. - The leadership team is composed of experienced professionals with significant expertise in their respective fields, contributing to the Company's growth and market expansion[179]. - Mr. Siu Chun Pong Raymond appointed as Company Secretary on May 17, 2024, with over 18 years of experience in corporate finance and regulatory compliance[189].
经纬天地(02477) - 2024 - 年度财报