Revenue Performance - Total revenue for the year ended December 31, 2023, was HK$49,121,839, representing a 30.0% increase from HK$37,772,821 in 2022[349] - Total revenue for the year ended December 31, 2024, decreased to HK$36,461,260 (approximately US$4,693,958), representing a 25.8% decrease from 2023[350] - Revenue from corporate financial communications services accounted for 79.7% of total revenue in 2023, down from 90.9% in 2022, while IPO financial printing services increased to 20.3% in 2023 from 9.1% in 2022[347] - Revenue from IPO financial printing services increased by 1.9 times to HK$9,988,560 in 2023 from HK$3,447,012 in 2022[353] - Revenue from IPO financial printing services decreased by 59.1% to HK$4,087,416 (US$526,207) in 2024 compared to 2023[354] Cost and Expenses - Cost of sales increased from HK$22,217,680 in 2022 to HK$25,238,821 in 2023, representing a 13.6% increase, primarily due to higher printing and translation costs[356] - Cost of sales decreased to HK$22,081,030 (US$2,842,673) in 2024, a 12.5% decrease from 2023, aligning with the decrease in total revenue[357] - General and administrative expenses increased by 1.3 times from approximately HK$10,862,255 in 2023 to HK$24,854,036 (US$3,199,665) in 2024, attributed to issuance expenses and professional services fees[372] - Selling and distribution expenses increased by 55.6% from approximately HK$4,530,134 in 2023 to HK$7,049,538 (US$907,545) in 2024, due to increased staffing and marketing expenses[387] - Translation costs decreased by 16.2% from approximately HK$9,484,376 in 2023 to HK$7,946,906 (US$1,023,070) in 2024, aligning with the decrease in total revenue[361] - Printing costs increased by 10.1% from approximately HK$4,920,419 in 2022 to HK$5,414,965 in 2023, driven by the successful completion of an IPO project[362] Profitability - Profit from operations for the year ended December 31, 2023, was HK$7,629,957, compared to a profit of HK$591,873 in 2022[344] - The company recorded a loss from operations of HK$16,058,998 for the year ended December 31, 2024[344] - Gross profit increased by 53.5% from approximately HK$15,555,141 in 2022 to HK$23,883,018 in 2023, with gross profit margin rising from 41.2% to 48.6%[367] - Gross profit decreased by 39.8% from approximately HK$23,883,018 in 2023 to HK$14,380,230 (US$1,851,285) in 2024, with gross profit margin falling to 39.4%[368] - Net profit for the year ended December 31, 2023 amounted to HK$7,079,243, while a net loss of HK$18,074,094 (US$2,326,826) is expected for 2024[400] Cash Flow and Financing - Cash and bank balances increased significantly from approximately HK$3,660,213 in 2023 to HK$42,222,014 (US$5,435,588) in 2024[402] - Net cash generated from operating activities was HK$7,112,687 in 2023, but net cash used in operating activities is projected to be HK$11,411,411 (US$1,469,086) in 2024[404] - The company generated net cash from financing activities of HK$51,177,252 (US$6,588,469) in 2024, primarily from the issuance of ordinary shares and convertible promissory notes[413] Liabilities and Capital Expenditures - Current liabilities were HK$37,029,852 in 2023, compared to HK$40,140,041 (US$5,167,557) in 2024, indicating a slight increase[402] - Capital expenditures were HK$466,834, HK$287,307, and HK$1,490,361 (US$191,866) for the years ended December 31, 2022, 2023, and 2024, respectively[416] Legal and Compliance - The Company is not currently involved in any material legal proceedings, investigations, or claims, but may face legal matters in the ordinary course of business[415] - The Company has no off-balance sheet arrangements that would affect its liquidity, capital resources, market risk support, or credit risk support[417] Accounting and Estimates - Significant accounting estimates include the allowance for expected credit loss of trade receivables and the fair value of embedded derivative liability on convertible promissory notes[421] - The estimates for expected credit loss are based on historical loss rates and future conditions affecting collectability[421] - The fair value of embedded derivative liability is estimated using a Monte Carlo simulation model, with key inputs including share price volatility and prevailing market interest rates[421] - Management cannot guarantee that accounting estimates will always be consistent with actual results, as actual results may differ from estimates[420] - The Company prepares its consolidated financial statements in conformity with International Financial Reporting Standards[420] - The Company does not have any research and development, patents, or licenses applicable at this time[418] Trends and Uncertainties - There are no known trends or uncertainties likely to materially affect net revenues, income, profitability, liquidity, or capital resources for the period from January 1, 2024, to December 31, 2024[419]
Powell Max Limited(PMAX) - 2024 Q4 - Annual Report