Financial Performance - In FY2024, the Group reported revenue of approximately HK$648.0 million, a decrease of approximately HK$63.1 million or 9.7% compared to FY2023[14]. - Profit for the year decreased by 77.8% to approximately HK$1.0 million for FY2024 from approximately HK$4.5 million for FY2023[14]. - Revenue for FY2024 decreased to approximately HK$648.0 million, down 9.7% from HK$717.6 million in FY2023, primarily due to a decline in Enterprise IT solutions revenue[55]. - Revenue from Professional IT services decreased by approximately HK$89.7 million or 23.6% due to the completion of several large contracts in FY2023[62]. - Revenue from distribution and resale decreased by approximately HK$5.4 million or 2.2% from approximately HK$251.0 million for FY2023 to approximately HK$245.6 million for FY2024[68]. - Revenue from Managed services increased by approximately HK$24.1 million or 87.0%, contributing to the overall revenue growth in high-profit businesses[62]. - The cost of sales and services decreased by approximately HK$78.7 million or 13.1% to approximately HK$523.2 million for FY2024 from approximately HK$601.9 million for FY2023[70]. - Other income increased by approximately HK$9.2 million or 112.2% to approximately HK$17.4 million for FY2024 from approximately HK$8.2 million for FY2023, primarily due to increased government grants for R&D activities and income from a partnership agreement in Macau[76][79]. Business Strategy and Development - The Group is enhancing its business model by expanding its product range and improving solution integration capabilities to capitalize on digital transformation and AI advancements[15]. - The Group continues to expand its footprint in the Greater Bay Area, leveraging policy benefits and initiatives such as cross-border data flow pilots and tax incentives[21]. - The Group anticipates stable growth in its traditional IT solutions business driven by investments from non-gaming operators in Macau and the government's push for economic diversification away from gaming[25][32]. - The Group's strategy includes scaling SaaS subscription services to diversify revenue streams from technology licensing[40]. - The Group is focusing on expanding Managed services and IT maintenance and consultancy services in Macau and Hong Kong, anticipating steady revenue contributions from these services[61]. - The Group plans to enhance R&D in core AI technologies, focusing on industry-specific solutions such as AI-driven risk control systems for financial institutions and AI-powered footfall analytics for smart retail[43][42]. Research and Development - A dedicated R&D team specializing in AI and large language models was established in Macau, achieving breakthrough progress in developing foundational large language models and BCI applications[16]. - The Group registered 26 software copyrights and 57 patents related to AI and BCI technologies as of December 31, 2024, showing significant growth from 17 copyrights and 31 patents in the previous year[45]. - The Group plans to invest in R&D for technologies such as multi-agent information security alert analysis to enhance competitive advantage and boost revenue[64]. - Research and development expenses increased by approximately HK$8.4 million or 84.0% to approximately HK$18.4 million for FY2024, driven by investments in BCI technologies and the establishment of a new R&D team in Macau[82][86]. Market Opportunities - The digital transformation wave and rapid advancements in the AI industry present significant opportunities, particularly in Macau, Hong Kong, and the PRC[22]. - Investments by Macau gaming operators in non-gaming sectors and intelligent transformation are expected to drive steady growth in the traditional Enterprise IT solutions business[22]. - The demand for IT solutions is expected to rise significantly as local enterprises plan to increase investments in IT infrastructure renovation and new IT upgrade projects in response to digital transformation trends[30][32]. - The Macau SAR government's "1+4" diversification strategy aims to enhance Macau's role in integrated tourism and leisure while promoting emerging industries, which will increase the demand for IT solutions[32]. - The increasing integration of IT elements in traditional industries, such as tourism and gaming, is expected to create new business opportunities for the Group[32]. Governance and Leadership - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[132]. - The Group has been actively involved in talent cultivation through a scholarship and internship awards program launched in May 2019[139]. - The Group's leadership team includes individuals with advanced degrees and certifications, enhancing their expertise in their respective fields[150]. - The Group's executives have been recognized for their contributions, with Mr. Ng awarded as Guangdong-Hong Kong-Macao Greater Bay Area Outstanding Young Entrepreneur in 2023[153]. - The Group's management structure includes roles dedicated to sales, application development, and innovation and R&D[189]. Financial Position - As of December 31, 2024, cash and cash equivalents increased to approximately HK$85.9 million from approximately HK$28.7 million as of December 31, 2023, mainly due to decreased pledged deposits and cash inflow from operations[93][97]. - The gearing ratio as of December 31, 2024, was approximately 4.4%, with total borrowings increasing to approximately HK$14.7 million from approximately HK$11.1 million in the previous year[98]. - The Group's total borrowings as of December 31, 2024, were approximately HK$14.7 million, up from HK$11.1 million as of December 31, 2023, with a capital debt ratio of about 4.4% compared to 3.3% in the previous year[103]. - Total staff costs incurred by the Group for FY2024 were approximately HK$136.9 million, an increase from approximately HK$112.1 million for FY2023[110]. - The Group employed a total of 341 employees as of December 31, 2024, compared to 287 employees as of December 31, 2023[110]. Community Engagement - The Group's commitment to community service is demonstrated by its executives' involvement in local advisory committees[153].
博维智慧(01204) - 2024 - 年度财报