Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 551.062 million, a decrease of 9.5% compared to RMB 609.301 million in 2023[7]. - The operating profit for 2024 was RMB 38.828 million, down 55.2% from RMB 86.692 million in 2023[7]. - The net profit for the year was RMB 9.709 million, a significant decline of 85.8% from RMB 68.671 million in 2023[7]. - The company's revenue decreased from RMB 609.3 million in 2023 to RMB 551.1 million in 2024, a reduction of RMB 58.2 million, primarily due to a decline in digital solution services revenue by RMB 67.5 million[22]. - Gross profit decreased from RMB 149.3 million in 2023 to RMB 106.2 million in 2024, a decline of RMB 43.1 million, aligning with the decrease in revenue[25]. - The gross margin fell by 5.2 percentage points from 24.5% in 2023 to 19.3% in 2024, mainly due to a significant drop in revenue and gross profit from digital solution services[26]. - Administrative expenses increased from RMB 38.5 million in 2023 to RMB 45.4 million in 2024, an increase of RMB 6.9 million, primarily due to higher expected credit loss provisions[29]. - The company's pre-tax profit decreased from RMB 70.0 million in 2023 to RMB 23.5 million in 2024, a reduction of RMB 46.5 million, mainly attributed to the decline in digital solution services revenue[32]. - The group's annual profit decreased from RMB 68.7 million to RMB 9.7 million, a reduction of approximately 85.8% due to a decline in revenue from digital solution services and an increase in income tax expenses[34]. Market Expansion and Development - The company successfully expanded its market presence by entering five new provinces in China, bringing its total coverage to 28 provinces, municipalities, and autonomous regions[9]. - The company increased its R&D investment in areas such as 5G network optimization, IoT, big data, and artificial intelligence, focusing on developing proprietary digital solutions[11]. - The company plans to focus on 6G communication technology and computing power infrastructure development to enhance its market competitiveness in the future[13]. IPO and Financial Position - The net proceeds from the IPO, amounting to approximately HKD 141.9 million, are expected to support the company's business development and competitive advantages[8]. - The total assets as of December 31, 2024, were RMB 1,401.560 million, compared to RMB 1,161.354 million in 2023, indicating a growth in asset base[7]. - The company reported a significant increase in current assets, reaching RMB 1,309.068 million in 2024, up from RMB 1,067.437 million in 2023[7]. - The group's net cash used in investing activities was approximately RMB 144.9 million, mainly due to cash outflows of RMB 139.8 million for settling amounts payable to shareholders and RMB 5.6 million for the purchase of property, plant, and equipment[35]. - The net cash generated from financing activities was approximately RMB 301.3 million, driven by bank borrowings of RMB 373.0 million and shareholder contributions of RMB 127.7 million[36]. - The group's cash and cash equivalents increased to RMB 135.0 million as of December 31, 2024, up from RMB 81.5 million, attributed to shareholder contributions and proceeds from the IPO[38]. Governance and Management - The company aims to optimize its governance structure and improve operational efficiency to ensure effective use of funds and higher returns for shareholders[13]. - The company has undergone changes in its board of directors, with several resignations effective March 21, 2025[68]. - The company appointed new independent non-executive directors in June 2024, enhancing its governance structure[64]. - The company has established a stock option plan effective from June 17, 2024, valid for a period of 10 years, with approximately 9 years and 3 months remaining as of the report date[112]. - The purpose of the stock option plan is to attract and retain top talent, providing additional incentives for eligible participants to contribute to the company's success[113]. - The board consists of nine directors, including six executive directors and three independent non-executive directors, ensuring a balance of skills and experience[162]. - The company has adopted a corporate governance code post-listing to ensure compliance and transparency in operations[154]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[154]. Employee and Leadership - As of December 31, 2024, the group employed 218 employees, with total employee costs amounting to RMB 26.7 million, a decrease from RMB 28.3 million in the previous year[51]. - Liu Haoqiong serves as the chairman and executive director, with over 20 years of experience in the telecommunications infrastructure industry[53]. - The company is focused on expanding its market presence and enhancing its operational strategies through experienced leadership[53][54][56][60][62]. - The management team comprises individuals with extensive backgrounds in telecommunications, finance, and corporate governance, ensuring robust oversight and strategic direction[53][54][56][60][62]. Compliance and Risk Management - The company has not identified suitable acquisition opportunities in the digital solution service sector and plans to take a cautious approach in utilizing the net proceeds[87][89]. - There were no significant violations of applicable laws and regulations during the reporting period[81]. - The company has maintained the public float required by listing rules since its listing date[141]. - The audit committee has reviewed the financial statements for the year ended December 31, 2024, and confirmed compliance with applicable accounting standards and regulations[148]. - The company has implemented strict internal procedures regarding anti-bribery, anti-corruption, and anti-fraud to enhance long-term sustainable performance[155]. Shareholder Information - The top five customers accounted for 97.1% of total revenue, with the largest customer contributing 60.4%[83]. - The top five suppliers represented 72.0% of total procurement costs, with the largest supplier accounting for 21.3%[83]. - The company has no distributable reserves available for dividend payments as of December 31, 2024[94]. - The board does not recommend the payment of any final dividend for the year ending December 31, 2024, consistent with 2023[75].
中赣通信(02545) - 2024 - 年度财报