INFINITIES TECH(HK:01961)2025-04-29 09:48Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased by RMB 5.4 million or 2.0% to approximately RMB 258.5 million from RMB 263.9 million in the previous fiscal year[12]. - Gross profit for the same period fell by RMB 5.5 million or 14.4% to approximately RMB 32.7 million, primarily due to a decline in gross profit contribution from the mobile gaming business[12]. - The net loss for the fiscal year 2024 was approximately RMB 50.9 million, a decrease from the net loss of RMB 53.8 million in fiscal year 2023, primarily due to an increase in other income and gains of approximately RMB 10.9 million and a reduction in research and development expenses of approximately RMB 7.9 million[13]. - The company reported a total revenue of RMB 153,568,000 for the fiscal year 2024[91]. - The company incurred a net loss of RMB 25,469,000 during the same period[91]. - The gross profit decreased by RMB 5.5 million or 14.4% to approximately RMB 32.7 million in fiscal year 2024, primarily due to a decline in gross profit contribution from the mobile gaming business[133]. - The company reported a net loss of approximately RMB 50.9 million for fiscal year 2024, compared to a net loss of RMB 53.8 million in fiscal year 2023, indicating a narrowing of losses[133]. Assets and Equity - Non-current assets increased significantly to RMB 134.4 million in 2024 from RMB 38.9 million in 2023, indicating a strong investment in long-term assets[7]. - Current assets also rose to RMB 416.2 million in 2024 from RMB 189.3 million in 2023, reflecting improved liquidity and operational capacity[7]. - Total assets reached RMB 550.6 million in 2024, a substantial increase from RMB 228.2 million in 2023, showcasing overall growth in the company's financial position[7]. - The total equity increased to RMB 179.3 million in 2024 from RMB 116.5 million in 2023, indicating a stronger capital base[7]. Business Development and Strategy - The company has expanded into AI application development and related services, enhancing its technological capabilities and product offerings[10]. - The company aims to integrate AI technology into its existing business lines to improve user engagement and operational efficiency[10]. - The company plans to leverage the wave of artificial intelligence technology to enhance digital entertainment services, focusing on mobile game development, digital media development, and overseas market expansion[14]. - By 2025, the company aims to deepen its integration of artificial intelligence technology into mobile games and digital media, enhancing user experience and engagement[15]. - The company continues to explore new business models and opportunities in response to trends in the domestic internet market[11]. Market Performance - The mobile gaming segment experienced a revenue decline of approximately RMB 70.5 million, while the digital media segment saw an increase of about RMB 88.8 million[12]. - The number of paying players decreased by 74.5% from 1,833.8 thousand in 2023 to 468.4 thousand in 2024[138]. - Average monthly paying users dropped by 74.5% from 152.8 thousand in 2023 to 39.0 thousand in 2024[138]. - Mobile game revenue fell by 48.3% from approximately RMB 146.0 million in 2023 to approximately RMB 75.5 million in 2024[140]. Funding and Financial Management - The company has raised approximately RMB 88.18 million from the first share placement, with all funds allocated for game product and AI product development, game sector expansion, digital media sector expansion, and working capital[34]. - The net proceeds from the second placement as of December 31, 2024, amounted to RMB 25.32 million, fully utilized for R&D, game expansion, and working capital[35]. - The net proceeds from the third placement raised approximately RMB 12.96 million on March 28, 2024, and were fully utilized by December 31, 2024[36]. - The company has incurred loans from subsidiaries amounting to approximately RMB 3.2 million and interest-bearing loans of RMB 3.0 million during the fiscal year 2024[30]. - The company has adopted a prudent cash and financial management policy to minimize funding costs and enhance cost control[155]. Corporate Governance - The board of directors has committed to maintaining high standards of corporate governance and has appointed a female director to enhance gender diversity on the board[163]. - The company has established formal and informal channels for independent non-executive directors to express their opinions, including regular board evaluations and closed-door meetings with the chairman[178]. - The company has implemented internal control and risk management systems, with the senior management team responsible for monitoring the budget adopted by the board[171]. - The company is committed to compliance with listing rules, having appointed independent non-executive directors to meet the requirements[174]. - The board has confirmed that corporate governance is a shared responsibility among directors, including compliance with legal and regulatory requirements[192]. Shareholder Information - As of December 31, 2024, Mr. Wang Le holds a 61.39% stake in the company through Infinities Global, which is controlled by him and his associates[44]. - Major shareholders include Ms. An Fenghua and Infinities Cayman, each holding 450,776,711 shares, representing 61.39% of total shares[46]. - The company has no provisions for preemptive rights in its articles of association or under Cayman Islands law[38]. - The shareholders have pledged their shares according to the equity pledge agreement, which has been registered with the relevant Chinese regulatory authorities[85]. Compliance and Legal Matters - The company has complied with relevant laws and regulations that significantly impact its operations during the fiscal year 2024[23]. - The company is closely monitoring developments in Chinese laws and regulations to ensure compliance and maintain control by Chinese investors[94]. - The company may face risks related to contractual arrangements that may not be enforceable under Chinese law[102]. - The company has taken measures to ensure compliance with contractual arrangements and has received exemptions from strict adherence to certain listing rules[106].