Financial Performance - Revenue for the year ended December 31, 2024, was RMB 98,580, a decrease of 77.7% compared to RMB 440,550 in 2023[18] - Gross loss for 2024 was RMB (456), compared to a gross profit of RMB 83,827 in 2023[18] - Loss before tax for 2024 was RMB (70,426), a significant decline from a profit of RMB 34,456 in 2023[18] - Loss attributable to owners of the parent for 2024 was RMB (77,527), compared to a profit of RMB 25,493 in 2023[18] - The Group's revenue decreased by approximately 77.6% from approximately RMB440.6 million in 2023 to approximately RMB98.6 million in 2024[22] - The adjusted net loss was approximately RMB64.0 million in 2024, compared to an adjusted net profit of approximately RMB36.0 million in 2023[22] - The Group's net loss was approximately RMB77.5 million in 2024, compared to a net profit of approximately RMB25.5 million in 2023[40] - The Group's gross (loss)/profit decreased from approximately RMB83.8 million in 2023 to approximately RMB(0.5) million in 2024[40] - The Group's adjusted net loss in 2024 was approximately RMB64.0 million, compared to an adjusted net profit of approximately RMB36.0 million in 2023[102] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 252,053, down from RMB 350,769 in 2023[18] - Total equity decreased to RMB 205,437 in 2024 from RMB 268,377 in 2023, reflecting a decline of 23.4%[18] - Current liabilities decreased to RMB 46,391 in 2024 from RMB 81,465 in 2023, a reduction of 43.0%[18] - Non-current assets decreased to RMB 16,236 in 2024 from RMB 28,147 in 2023, a decline of 42.4%[18] - Total liabilities decreased to RMB 46,616 in 2024 from RMB 82,392 in 2023, a reduction of 43.4%[18] Revenue Breakdown - Revenue from data transmission and processing services for IoT applications decreased by approximately 80.8%, from approximately RMB380.3 million in 2023 to approximately RMB73.2 million in 2024[23] - Non-5G business revenue decreased by approximately 81.7% from approximately RMB350.7 million in 2023 to approximately RMB64.2 million in 2024[39] - The Group's 5G business revenue decreased from approximately RMB89.9 million in 2023 to RMB34.3 million in 2024[39] - Revenue from sales of telecommunication equipment decreased by approximately 56.4% from approximately RMB58.2 million in 2023 to approximately RMB25.4 million in 2024[64] - Revenue from data transmission and processing services decreased by approximately 80.8% from approximately RMB380.3 million in 2023 to approximately RMB73.2 million in 2024[85] - Non-5G network services revenue decreased by approximately 81.2% from approximately RMB342.3 million in 2023 to approximately RMB64.2 million in 2024[61] - Sales of 5G telecommunication equipment decreased by approximately 51.0% from approximately RMB51.8 million in 2023 to approximately RMB25.4 million in 2024[64] Operational Strategies - The decrease in revenue for 2024 was mainly due to clients delaying projects due to cash flow concerns and macroeconomic uncertainty[36] - The Group plans to strengthen independent research and development capabilities and actively study advanced technologies in the 5G era[26] - The Group aims to implement effective operational management policies and cost control measures to promote sustainable business development[26] - The Group plans to diversify its 5G private network industrial customers to include advanced manufacturing, transportation, environmental protection, and energy industries[46] - The Group will upgrade its industry data platform to incorporate AI and big data, extending its functions to cover industrial IoT applications[47] - The Group aims to strengthen risk management and control, enhance efforts to collect trade receivables, and ensure sufficient cash flow for operations[48] Innovation and Development - As of December 31, 2024, the Group had successfully registered 30 utility model patents, 23 patents for invention, one international PCT, and 90 copyrights in the PRC[73] - The Group's one-stop solution and diversified product portfolio are expected to help it stand out in the competitive IoT market[54] - R&D expenses increased by 40.3% from approximately RMB9.6 million in 2023 to approximately RMB13.5 million in 2024[93] - The Group's impairment losses on financial assets increased by approximately 194.2% from approximately RMB10.0 million in 2023 to approximately RMB29.4 million in 2024[96] Cash Flow and Financing - Cash and cash equivalents decreased from approximately RMB33.2 million as of December 31, 2023, to approximately RMB4.1 million as of December 31, 2024, primarily due to net cash used in operating activities of approximately RMB27.0 million[108] - Net cash flow used in operating activities was approximately RMB27.0 million in 2024, compared to approximately RMB39.5 million in 2023[122] - Net cash flow from investing activities amounted to approximately RMB5.7 million in 2024, down from approximately RMB50.4 million in 2023[123] - The net cash flow used in financing activities was approximately RMB2.2 million in 2024, compared to RMB33.0 million in 2023, primarily due to the repayment of bank loans amounting to RMB5.0 million[128] Market Outlook - The IoT market in China is expected to grow at a CAGR of approximately 13.3% from 2021 to 2026, reaching approximately RMB 5,466.0 billion in 2026[49] - The 5G-based IoT market is projected to grow at a CAGR of approximately 62.2% from 2021 to 2026, reaching approximately RMB 491.9 billion in 2026[49] - The private 5G network market in China is expected to reach approximately RMB 236.1 billion in 2026, with a CAGR of approximately 108.2% from 2021 to 2026[49] Leadership and Corporate Governance - The Group's CEO, Mr. Ray Chan, has a global audience of 200 million across various social media channels, including 56 million on Instagram and 40 million on Facebook[139] - Mr. Kevin Kwong has successfully driven the group's transition from Web2 to Web3, significantly enhancing business performance during his tenure at 9GAG[158] - The leadership team has over 20 years of experience in their respective fields, with expertise spanning traditional finance, centralized finance, and decentralized finance[161] - The Company aims to enhance investor relations and corporate governance functions under the leadership of Mr. Tony Liu[187] - The Company has expanded its senior management team to include experienced professionals with backgrounds in finance and investment banking[185] Company Background - The Company was incorporated in the Cayman Islands on August 25, 2021, and listed on the Main Board of the Stock Exchange on December 12, 2022, issuing 36,000,000 Shares at an offer price of HK$2.73 per Share, resulting in net proceeds of approximately HK$47.1 million[191] - The Group is a PRC provider of data transmission and processing services for IoT applications and telecommunication equipment, serving a broad range of industrial customers[193] - The Group generates revenue primarily from customized data transmission and processing services, with additional income from telecommunication equipment maintenance and consulting services[198]
迷策略(02440) - 2024 - 年度财报