Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB128.6 million, an increase of approximately 41.3% compared to RMB91.0 million for the year ended December 31, 2023[19]. - Gross profit for the year ended December 31, 2024, was approximately RMB102.1 million, reflecting an increase of approximately 38.3% from RMB73.8 million for the year ended December 31, 2023[19]. - Profit attributable to owners of the Company for the year ended December 31, 2024, was approximately RMB31.9 million, a significant increase of approximately 94.5% compared to RMB16.4 million for the year ended December 31, 2023[19]. - The digital marketing services business achieved revenue of approximately RMB 24.1 million in 2024, a significant increase from approximately RMB 6.6 million in the same period in 2023, accounting for approximately 18.7% of the Group's total revenue[25][36]. - Revenue from mobile charges and mobile data usage top-up services increased from approximately RMB 84.4 million for the year ended December 31, 2023, to approximately RMB 104.5 million for the year ended December 31, 2024[24][27]. - Cost of revenue increased by approximately 42.4% to approximately RMB 23.5 million for the year ended December 31, 2024, from approximately RMB 16.5 million for the year ended December 31, 2023[37][39]. - Distribution and selling expenses rose by approximately 65.0% to approximately RMB 16.5 million for the year ended December 31, 2024, compared to approximately RMB 10.0 million for the year ended December 31, 2023[42]. - Other income (net) decreased by approximately 1.4% to approximately RMB 7.1 million for the year ended December 31, 2024, from approximately RMB 7.2 million for the year ended December 31, 2023[41]. - The overall gross profit margin slightly decreased to approximately 79.4% for the year ended December 31, 2024, from approximately 81.1% for the year ended December 31, 2023[40]. - Research and development expenses rose by approximately 58.2% to approximately RMB12.5 million for the year ended 31 December 2024, up from approximately RMB7.9 million for the year ended 31 December 2023[49]. - Finance costs increased by approximately 45.5% to approximately RMB3.2 million for the year ended December 31, 2024, compared to approximately RMB2.2 million for the year ended December 31, 2023[50]. Operational Efficiency and Strategy - The management optimized the cost structure and adopted more precise marketing strategies, contributing to the increase in overall gross profit[19]. - The transaction amount of digital marketing services increased significantly compared to the previous year, driving revenue growth[19]. - The Group continues to solidify its strengths in core business and deploy diversified digital equity business to drive revenue growth[18]. - The Group is implementing measures to enhance operational efficiency and maintain profitability amid a complex market environment[18]. - The overall macroeconomic recovery was slower than expected, yet the digital marketing services business showed strong growth[18]. - The Group's strategy includes reducing costs and enhancing efficiency to cope with market volatility[18]. - The Group expects the proportion of new businesses to continue increasing in the coming years as new customer projects are launched in 2025[26]. - The launch of the DeepSeek model in January 2025 is anticipated to enhance AI application popularity and drive business growth through strengthened technical solution capabilities[29][31]. Cash Flow and Financial Position - Net cash used in operating activities was approximately RMB123.7 million for the year ended December 31, 2024, compared to net cash from operating activities of approximately RMB117.1 million for the year ended December 31, 2023[62]. - As at 31 December 2024, cash and cash equivalents were approximately RMB50.8 million, down from approximately RMB89.8 million as at 31 December 2023[59]. - Total borrowings increased to approximately RMB122.0 million as at 31 December 2024, compared to approximately RMB30.0 million as at 31 December 2023[63]. - The current ratio was approximately 2.3 as at 31 December 2024, down from approximately 3.3 as at 31 December 2023[59]. - Net current assets increased to approximately RMB313.6 million as at 31 December 2024, compared to approximately RMB281.6 million as at 31 December 2023[59]. - Trade receivables from mobile top-up service decreased from approximately RMB132.8 million for the year ended 31 December 2023 to approximately RMB113.8 million for the year ended 31 December 2024, a decrease of about 14.3%[67]. - Trade receivables turnover days increased to 5.96 days for the year ended 31 December 2024 from 5.77 days for the year ended 31 December 2023[68]. - The amount of impairment loss recognized for trade receivables increased from approximately RMB66,000 for the year ended 31 December 2023 to approximately RMB1.3 million for the year ended 31 December 2024[69]. - The gearing ratio increased to approximately 39.5% as at 31 December 2024 from approximately 10.7% as at 31 December 2023 due to increased borrowings[74]. - Capital expenditures remained stable at approximately RMB1.5 million for the years ended 31 December 2023 and 2024[75]. - The Group did not have any significant capital commitments or material investments as at 31 December 2024[83][89]. Human Resources and Corporate Governance - The Group had a total of 156 full-time employees as of December 31, 2024, an increase from 124 employees as of December 31, 2023[98]. - Total staff costs, including Directors' remuneration, were approximately RMB 51.8 million for the year ended December 31, 2024, compared to approximately RMB 36.6 million for the year ended December 31, 2023, representing an increase of 41.5%[98]. - The Directors did not recommend the payment or declaration of a final dividend for the year ended December 31, 2024, consistent with the previous year[97]. - The Group emphasizes competitive remuneration and has been actively recruiting and promoting employees based on merit and development potential[98]. - Training opportunities are provided to employees to enhance their qualifications and equip them with necessary skills[98]. - The Group's strategic planning and management are overseen by its honorary chairman, who has over 18 years of experience in information technology-related industries[107]. - The Group's executive team includes individuals with extensive backgrounds in telecommunications and finance, contributing to its strategic direction[101][102]. - The Group has been focusing on performance-based remuneration packages, including share options for eligible participants[98]. - The Group's management believes that employees are one of its most important assets, highlighting the importance of human capital in its operations[98]. Board and Governance Structure - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended December 31, 2024[136]. - The Board emphasizes the importance of good corporate governance to safeguard shareholder interests and enhance accountability[135]. - All directors confirmed compliance with the Model Code for Securities Transactions during the year ended December 31, 2024[137]. - The Board currently comprises eight Directors, including three executive Directors, two non-executive Directors, and three independent non-executive Directors[143]. - The roles of Chairman and Chief Executive Officer are separated, with Mr. Zhou Jinhuang as Chairman and Mr. Guan Heng as CEO, ensuring clear division of responsibilities[148]. - The Company has complied with the Listing Rules regarding the appointment of independent non-executive Directors, maintaining at least three such Directors on the Board[153]. - The Board is responsible for the leadership and control of the Company, overseeing strategic decisions and performance, while delegating day-to-day management to the CEO and senior management[155]. - The Company adheres to high standards of corporate governance, continuously optimizing its governance structure to enhance its governance level[140]. - The Company actively fulfills its social responsibilities, aiming for high-quality and sustainable development to create value for shareholders, customers, employees, and society[142]. - The Board has established various committees to delegate responsibilities and ensure effective governance[155]. - The Company has received written annual confirmations of independence from all independent non-executive Directors, affirming their compliance with independence guidelines[154]. - The Company emphasizes the importance of corporate culture as a support for long-term development and good corporate governance[138]. - The Board comprises eight Directors, ensuring a diverse mix of gender, age, background, knowledge, and skills[168]. - As of December 31, 2024, the Board consists of seven male directors and one female director, reflecting a commitment to gender diversity[171]. - The Group's workforce gender ratio is 50% male and 50% female as of December 31, 2024, indicating a balanced approach to diversity[172]. - The Company has adopted a Board Diversity Policy to enhance diversity through various measurable factors, including gender, age, and professional qualifications[165]. - The Nomination Committee will review the Board diversity policy annually to ensure its effectiveness[167]. - The Board meets at least four times a year, with advance notice of at least 14 days for regular meetings to ensure all Directors can attend[174]. - Directors have access to all Company information and can seek independent professional advice at the Company's expense[161]. - The Company has arranged appropriate insurance cover for Directors' liabilities in respect of legal actions against them[163]. - Minutes of board meetings are kept in detail, including decisions made and concerns raised by Directors[176]. - The Articles of Association require Directors to abstain from voting on transactions in which they have a material interest[177]. - The Company held an annual general meeting and an extraordinary general meeting during the year ended 31 December 2024[183]. - All Directors attended training sessions on duties and obligations of directors of companies listed on the Stock Exchange in 2024[187]. - Each executive Director has a service contract with a specific term of three years, subject to termination with three months' notice[195]. - The Chairman met with non-executive Directors and independent non-executive Directors without executive Directors present to discuss pertinent issues[184]. - All Directors are subject to retirement by rotation at least once every three years[196]. - The Nomination Committee is responsible for reviewing Board composition and monitoring the appointment and succession planning of Directors[197].
银盛数惠(03773) - 2024 - 年度财报