FIRE ROCK(HK:01909)2025-04-24 23:01Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of HKD 140,591,000, representing an increase of 4.9% from HKD 134,927,000 in 2023[9]. - The gross profit for the same period was HKD 112,765,000, up from HKD 107,539,000 in 2023, indicating a gross margin improvement[9]. - The net profit for the year was HKD 1,853,000, a significant decrease from HKD 572,518,000 in the previous year, reflecting a challenging operating environment[9]. - Total revenue for the year ended December 31, 2024, was approximately HKD 140.6 million, an increase of approximately HKD 5.7 million or 4.2% from approximately HKD 134.9 million for the year ended December 31, 2023, driven mainly by increased revenue from the gaming operations and publishing segment[15]. - Gross profit for the year ended December 31, 2024, was approximately HKD 112.8 million, an increase of approximately HKD 5.3 million or 4.9% from approximately HKD 107.5 million for the year ended December 31, 2023, with a gross margin of approximately 80.2% compared to 79.7% in the previous year[18]. Assets and Liabilities - Total assets decreased to HKD 134,676,000 in 2024 from HKD 160,873,000 in 2023, while total liabilities remained relatively stable at HKD 20,682,000[10]. - The company's equity increased to HKD 113,994,000 in 2024 from HKD 140,321,000 in 2023, indicating a decline in overall financial health[10]. - As of December 31, 2024, the company's debt ratio was approximately 15.4%, an increase from 12.8% as of December 31, 2023[32]. Profitability and Returns - The return on equity (ROE) for 2024 was 1.6%, a significant drop from the previous year's 64.3%[11]. - The company reported a loss attributable to equity holders of approximately HKD 17.1 million for the year ended December 31, 2024, compared to a profit of approximately HKD 559.9 million for the year ended December 31, 2023, primarily due to one-time non-recurring income from the surrender of promissory notes recognized in the previous year[14][25]. Operational Costs - Research costs decreased to approximately HKD 9.0 million for the year ended December 31, 2024, down approximately HKD 10.8 million or 54.5% from approximately HKD 19.8 million for the year ended December 31, 2023, due to fewer projects in the research phase[21]. - Promotion costs for the year ended December 31, 2024, were approximately HKD 40.7 million, a decrease of approximately HKD 14.8 million or 26.7% from approximately HKD 55.5 million for the year ended December 31, 2023, primarily due to reduced advertising and promotional expenses[22]. - Administrative expenses increased to approximately HKD 43.3 million for the year ended December 31, 2024, up approximately HKD 11.6 million or 36.6% from approximately HKD 31.7 million for the year ended December 31, 2023, mainly due to increased depreciation and employee travel expenses[23]. Employee and Workforce - The total number of employees increased to 151 as of December 31, 2024, compared to 108 as of December 31, 2023[36]. - The total employee compensation for the year ended December 31, 2024, was approximately HKD 31.1 million, down from HKD 35.4 million in 2023[36]. - The employee turnover rate for the overall company is 20% in 2024, a significant decrease from 124% in 2023[141]. - The company has increased its full-time employees from 107 in 2023 to 151 in 2024, representing a growth of approximately 41%[141]. Governance and Compliance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[61]. - The audit committee is responsible for overseeing internal controls, financial disclosures, and the appointment of external auditors[78]. - The company has established a governance structure to integrate ESG principles into its management processes, with the board of directors responsible for overseeing ESG matters[113]. - The company has established a policy for employees to confidentially report concerns regarding financial reporting and internal controls[83]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's commitment to sustainable growth and details its management strategies, governance structure, and sustainability measures[106]. - The company has identified seven sustainable development goals that align with its business nature and vision, responding to the UN's call for global sustainability[116]. - The company is committed to reducing energy consumption and greenhouse gas emissions[117]. - The company has implemented measures to reduce environmental impact and actively fulfills social responsibilities, providing a safe work environment and competitive benefits for employees[112]. Community Engagement and Social Responsibility - The company donated a total of 300,000 Thai Baht (approximately 70,000 HKD) to three relief funds for flood-affected areas in Chiang Rai, Thailand[177]. - The company provided daily necessities and a V-shaped bottom boat to assist residents affected by the floods[177]. - The company supported approximately 120 households in remote villages near Bangkok by donating daily necessities worth about 150,000 Thai Baht (approximately 35,000 HKD)[181]. - The company initiated a donation program for a children's organization in Bangkok, encouraging employees to donate unused items for underprivileged children[183]. Technology and Innovation - The management is exploring new product development and technological advancements to enhance user engagement and market competitiveness[13]. - The company has established a professional technical team to ensure high-quality game development and continuous optimization[128]. - The company has implemented an innovative program to encourage creative game planning proposals, rewarding accepted ideas with bonuses to enhance employee engagement and innovation[163]. Risk Management - The company emphasizes the importance of effective risk management and internal control systems, regularly reviewed by the audit committee[49]. - The company is facing risks related to technological advancements and competition in the gaming industry[46][47]. - The board regularly reviews the effectiveness of the company's risk management system, including ESG-related risks, and develops corresponding response plans[115]. Executive Leadership - Mr. Zhou has over 15 years of experience in e-commerce and has been appointed as CEO of Firerock Capital Pte. Ltd. since January 2023, focusing on overseas business operations[195]. - Mr. Ke has been appointed as Executive Director and CTO effective March 1, 2025, with a monthly director's fee of SGD 12,000, bringing extensive experience in software engineering and game development[197]. - The company is expanding its overseas operations, leveraging the expertise of newly appointed executives in various sectors[195][197][199][200].