Financial Performance - The Group recorded revenue from continuing operations of approximately RMB112.7 million for the year ended 31 December 2024, representing a decrease of approximately 11.0% compared to RMB126.7 million for the year ended 31 December 2023[6]. - The gross profit margin for the Group's products was approximately 8.0% in 2024, down from approximately 11.7% in the previous year[6]. - Total comprehensive loss attributable to owners of the Company decreased from approximately RMB812.8 million in 2023 to approximately RMB90.3 million in 2024, representing a decrease of approximately 88.9%[6]. - The Group's revenue from continuing operations decreased from approximately RMB126.7 million in 2023 to approximately RMB112.7 million in 2024, representing a decline of 11.8%[22][26]. - Loss attributable to owners of the Company decreased by 89.1% to approximately RMB88.4 million in 2024, compared to the previous year[22][26]. - Basic and diluted loss per share improved from RMB0.24 in 2023 to RMB0.02 in 2024[22][26]. - Revenue from clothing products in the PRC decreased from RMB83.6 million in 2023 to approximately RMB48.8 million in 2024, a decline of 41.7%[34][36]. - Sales quantities of clothing products dropped from approximately 1,691,000 pieces in 2023 to approximately 1,017,000 pieces in 2024, a decrease of 40%[34][36]. - Revenue from the elastic webbing segment increased to approximately RMB35.6 million in 2024 from RMB31.8 million in 2023, marking a growth of 11.9%[37][39]. - The digital marketing services segment, which commenced in the second half of 2023, contributed approximately RMB28.4 million in revenue for 2024, up from RMB11.3 million in 2023, reflecting a growth of 151.3%[38][39]. Cost and Expenses - The cost of sales decreased by 7.2% from approximately RMB111.9 million in 2023 to approximately RMB103.7 million in 2024, aligning with the decrease in turnover[42][43]. - Gross profits decreased from approximately RMB14.8 million (gross profit margin of 11.7%) in 2023 to approximately RMB9.0 million (gross profit margin of 8.0%) in 2024, primarily due to increased production costs for elastic webbings[46][47]. - Selling and distribution costs decreased by 28.5% from approximately RMB10.8 million in 2023 to approximately RMB7.7 million in 2024, due to reduced staff costs, logistics, and advertising expenses[54][58]. - General and administrative expenses increased by 25.1% from approximately RMB27.0 million in 2023 to approximately RMB33.8 million in 2024, mainly due to increased impairment losses and write-offs[60]. - Finance costs decreased by 14.9% from approximately RMB2.3 million in 2023 to approximately RMB1.9 million in 2024, attributed to the repayment of certain bank borrowings[61]. Cash Flow and Liquidity - Net cash used in operating activities amounted to RMB6.4 million in 2024, a significant improvement from RMB120.3 million in 2023[63]. - The Group's ability to continue as a going concern is under scrutiny due to material uncertainties affecting liquidity and cash flow[103]. - The Group's cash management policy is conservative, with cash and cash equivalents generally held in banks and primarily denominated in RMB and HKD[69]. Corporate Governance - The Company has adopted the Corporate Governance Code and has complied with applicable code provisions throughout the year, except for code provision C.1.8 regarding insurance cover for directors[137]. - All directors confirmed compliance with the Model Code for Securities Transactions during the year, ensuring adherence to standards regarding securities dealings[141]. - The Company will continue to review and enhance its corporate governance practices to meet the requirements of the Corporate Governance Code[139]. - The Board consists of six members, including three executive Directors and three independent non-executive Directors[148]. - The independent non-executive Directors represent at least one-third of the Board throughout the Period[149]. Share Capital and Fundraising - The company completed a placing of 200,000,000 shares at a price of HK$0.10 per share, raising net proceeds of approximately HK$19.79 million for general working capital[78]. - The proposed Capital Reorganisation aimed to reduce the par value of shares from HK$1.0 to HK$0.01, allowing greater flexibility for future share issues[120]. - The special resolution for the Capital Reorganisation was not passed, with less than 75% of votes in favor, impacting future fundraising activities[121]. - The Company is considering the feasibility of potential fundraising activities through new share issuance[112]. Employment and Workforce - The total workforce decreased to 165 employees as of December 31, 2024, down from 190 employees in the previous year, mainly due to the discontinuation of the fabrics business[93]. - Total staff costs for the year ended December 31, 2024, were approximately RMB30.2 million, compared to approximately RMB29.9 million in 2023[93]. Audit and Compliance - The Audit Committee reviewed the Directors' Action Plan to address the Audit Qualification, focusing on cash flow projections for at least 12 months from December 31, 2024[113]. - The adjustments related to the audit qualification have not been reflected in the consolidated financial statements for the year ended December 31, 2024[134]. - If the action plans are not achieved, the company may not be able to continue as a going concern, necessitating adjustments to asset values and liabilities[132].
满地科技股份(01400) - 2024 - 年度财报