Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 104,023,000, a decrease of 13.5% compared to RMB 120,205,000 in 2023[11]. - Gross profit for 2024 was RMB 45,578,000, down 17.3% from RMB 55,145,000 in the previous year, resulting in a gross margin of 43.8%[11]. - The company reported a net loss of RMB 75,510,000 for 2024, compared to a net loss of RMB 47,313,000 in 2023, reflecting a net loss margin of 72.6%[11]. - Cash and cash equivalents decreased by 36.9% to RMB 77,321,000 from RMB 122,620,000 in 2023[11]. - Total assets declined by 28.0% to RMB 208,808,000 from RMB 289,857,000 in the previous year[11]. - Revenue from the overall APM system solutions decreased by approximately 21.1% from RMB 48.7 million for the year ending December 31, 2023, to RMB 38.4 million for the year ending December 31, 2024[18]. - Revenue from software development services decreased by approximately 17.8% from RMB 51.0 million to RMB 41.9 million during the same period[19]. - Revenue from embedded hardware and standard APM software sales decreased by approximately 54.5% from RMB 5.5 million to RMB 2.5 million[21]. - Other income and gains decreased from approximately RMB 9.3 million to RMB 6.0 million, primarily due to reductions in government subsidies and bank interest income[23]. - Selling and distribution expenses decreased by approximately 21.2% from RMB 29.2 million to RMB 23.0 million[24]. - R&D costs decreased by approximately 17.0% from RMB 38.9 million to RMB 32.3 million[25]. - The company recorded a loss attributable to owners of approximately RMB 75.1 million for the year ending December 31, 2024, compared to a loss of RMB 47.2 million for the year ending December 31, 2023[28]. - The total equity of the company as of December 31, 2024, was approximately RMB 164.6 million, a decrease from RMB 242.1 million as of December 31, 2023[32]. - The company’s capital expenditure for the year ended December 31, 2024, was approximately RMB 4.2 million, down from RMB 18.8 million in 2023[36]. Business Strategy and Market Environment - The company is focusing on developing Central Bank Digital Currency (CBDC) products and enhancing Application Performance Management (APM) solutions, with plans to expand CBDC services globally[12][13]. - The economic environment has led to a cautious approach from clients regarding new investments, impacting contract signings and project delivery timelines[13]. - The company aims to convert discussions with local financial institutions into revenue-generating opportunities, despite current challenges in the macroeconomic landscape[12]. - The company is actively promoting its products to other telecommunications and broadcasting companies to increase project numbers and reduce reliance on one-time project revenues[45]. - The company is expanding its business to China's second and third largest telecommunications groups and the broadcasting industry, leveraging similar network architectures and technologies[44]. - The company is focusing on diversifying its customer base, including small and medium-sized enterprises, to effectively reduce risks associated with reliance on a single major customer[44]. - The company is increasing the proportion of recurring services in its projects to strengthen its revenue stability[45]. - The company is actively expanding its customer base, including small and medium enterprises and overseas markets, to mitigate seasonal impacts on its business[45]. Shareholder and Governance Matters - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with no final dividend for the year ending December 31, 2023[61]. - The company has established a dividend policy to distribute dividends semi-annually, subject to profitability and cash flow considerations[102]. - The major shareholder, International Business Digital Technology Group Limited, holds 479,110,000 shares, representing 62.88% of the total shares[91]. - The company confirms that at least 25% of its total issued share capital is held by the public as of the report date[97]. - The board of directors consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[120]. - The company is committed to high standards of corporate governance and has adhered to all relevant codes and principles during the reporting period[115]. - The independent non-executive directors have confirmed their independence in writing, ensuring compliance with Listing Rule 3.13[125]. - The company has established a shareholder communication policy to provide balanced and easily understandable information to shareholders[177]. - Shareholders can submit inquiries and concerns to the board in writing, ensuring their voices are heard[181]. Risk Management and Compliance - The company has mechanisms in place to ensure compliance with disclosure regulations regarding inside information[171]. - The board has a responsibility to ensure effective risk management and internal control systems, which have been reviewed annually[169]. - The company has engaged an independent external consultant for an internal control review, which has been completed as of the report date[169]. - The company has not experienced any significant labor disputes with employees during the fiscal year ending December 31, 2024, and maintains good relations with staff[98]. - The company has complied with relevant laws and regulations during the fiscal year ending December 31, 2024, including intellectual property laws[105]. Audit and Financial Reporting - The independent auditor, Ernst & Young, has issued an opinion that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[183]. - The audit committee assists the board in overseeing the financial reporting process of the group[194]. - The auditor's responsibility is to reasonably ensure that the consolidated financial statements are free from material misstatement due to fraud or error[195]. - The audit procedures include testing the aging of trade receivables and contract assets, as well as evaluating the expected credit loss rate considering historical cash collections and market conditions[190]. - The overall presentation, structure, and content of the consolidated financial statements, including disclosures, are assessed for fair representation of relevant transactions and events[197]. Employee and Diversity Initiatives - The company is considering implementing stock option plans to enhance employee loyalty and reduce turnover in its R&D department[44]. - The employee gender ratio in the workplace is approximately 2:8 (female to male) as of December 31, 2024, with efforts to create a diverse and supportive work environment[155]. - The company aims to improve gender diversity on the board, currently having one female director out of five, and is actively seeking suitable candidates[151]. - The Nomination Committee reviews the board's structure, size, composition, and diversity annually, ensuring the effectiveness of the diversity policy[149][154].
国际商业数字技术(01782) - 2024 - 年度财报