Financial Performance - The company's audited revenue for the year ended December 31, 2024, was RMB 1,055.6 million, a decrease of 11.1% compared to RMB 1,186.99 million in 2023[9]. - The gross profit for the same period was RMB 413.0 million, down 16.6% from RMB 495.5 million, resulting in a gross margin of 39.1%[9]. - The net loss attributable to equity holders of the company was RMB 127.0 million, compared to a loss of RMB 96.9 million in the previous year[9]. - Total revenue decreased by 11.1% to RMB 1,055.6 million for the year ended December 31, 2024, compared to RMB 1,187.0 million in 2023[28]. - SaaS and marketing services revenue fell by 20.2% to RMB 333.7 million, driven by a reduction in sales leads from 794,761 to 633,769[30]. - Revenue from the interior design and construction business decreased by 8.8% to RMB 665.2 million, down from RMB 729.7 million in the previous year[31]. - The company reported an adjusted net loss attributable to equity holders of RMB 93.9 million, compared to a loss of RMB 36.0 million in the prior year[23]. Sales and Marketing - The number of sales leads decreased to 633,769, a decline of 20.3% from 794,761 in 2023[10]. - Revenue from SaaS and marketing services was RMB 333.7 million, down 20.2% year-on-year, primarily due to the reduction in sales leads[16]. - The average revenue per sales lead for SaaS and marketing services remained stable at RMB 527, slightly up from RMB 526 in 2023[10]. Cost Management - The company continues to implement cost-saving strategies to support its operations during this economic cycle[17]. - Sales costs decreased by 7.1% from RMB 691.5 million to RMB 642.6 million, mainly due to reduced costs in the interior design and construction business[34]. - Selling and marketing expenses decreased by 3.0% from RMB 430.0 million to RMB 417.1 million, reflecting efforts in cost control and efficiency improvement[39]. - Administrative expenses decreased by 15.3% from RMB 75.9 million to RMB 64.3 million, primarily due to reduced wages and benefits[40]. - Research and development expenses decreased by 24.0% from RMB 37.1 million to RMB 28.2 million, mainly due to a reduction in wages and benefits[41]. Cash Flow and Financial Position - Cash and cash equivalents stood at RMB 119.2 million, with time deposits of RMB 745.9 million and restricted cash of RMB 82.7 million as of December 31, 2024[23]. - The net cash used in operating activities for the year ended December 31, 2024, was RMB 66.3 million, an improvement from RMB 247.4 million in the previous year[51]. - The net cash generated from investing activities was RMB 73.6 million, primarily due to the sale of financial assets valued at RMB 182.6 million[53]. - The net cash used in financing activities was RMB 148.9 million, mainly due to loan repayments of RMB 217.6 million[54]. - Accounts receivable and other receivables increased by 27.4% to RMB 219.3 million as of December 31, 2024, from RMB 172.2 million as of December 31, 2023[55]. - Accounts payable and other payables rose by 37.2% to RMB 574.0 million as of December 31, 2024, from RMB 418.3 million as of December 31, 2023[56]. - Total borrowings decreased by 49.6% to RMB 107.1 million as of December 31, 2024, from RMB 212.8 million as of December 31, 2023[57]. - The company's leverage ratio was 12.1% as of December 31, 2024, down from 20.6% as of December 31, 2023[60]. Governance and Management - The company adheres to strict corporate governance principles, promoting high ethical standards, transparency, and accountability to strengthen shareholder trust[95]. - The board consists of nine directors, including three independent non-executive directors, ensuring a diverse range of business experience and expertise[98]. - The roles of Chairman and CEO are currently held by Mr. Deng Huajin, which the board believes ensures consistent internal leadership and effective strategic planning[99]. - The company has established procedures for the appointment, re-election, and removal of directors, enhancing governance practices[103]. - The board is responsible for strategic planning and major investment decisions, while daily management is delegated to senior management[97]. Risk Management - The company has established a robust, comprehensive, and technology-driven risk management system to effectively manage and mitigate inherent business risks[138]. - The board of directors is responsible for the company's risk management and internal control systems, which are deemed sufficient and effective[140]. - The company has implemented a whistleblowing policy to provide a secure and confidential mechanism for reporting concerns regarding financial reporting and internal controls[141]. - An anti-corruption policy has been established to prevent corruption and bribery within the company, with internal reporting channels available for employees[142]. Environmental, Social, and Governance (ESG) - The company has been publishing its Environmental, Social, and Governance (ESG) reports annually since 2018, addressing stakeholder concerns regarding sustainable development[149]. - The reporting period for the ESG report covers January 1, 2024, to December 31, 2024, encompassing the company's main businesses[150]. - The report is prepared in accordance with the ESG Reporting Guidelines set by the Hong Kong Stock Exchange[151]. - The board emphasizes the importance of ESG performance for the long-term stability and development of the company, establishing an effective ESG governance mechanism[155]. - The company has identified 17 key ESG issues through a substantiality assessment process, prioritizing them based on their importance to stakeholders and alignment with the company's development[163]. Supplier Management - The company has established a robust supplier management system, including strict qualification review and performance evaluation processes to ensure quality control from the source[194]. - The supplier evaluation process includes a comprehensive scoring system based on five dimensions: integrity, sales, orders, delivery, and quality, with regular assessments to ensure compliance and performance[195]. - The company requires suppliers to provide essential qualification documents, such as business licenses and product testing reports, to ensure compliance with standards[195]. - The company focuses on building a sustainable supply chain that strengthens safety and environmental standards[197].
齐屹科技(01739) - 2024 - 年度财报