Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 604,164,000, an increase from RMB 559,045,000 in 2023, representing an 8.0% growth[16]. - The gross profit for the year was RMB 255,805,000, slightly down from RMB 259,728,000 in the previous year, indicating a decrease of 1.1%[16]. - The company recorded a loss before tax of RMB 1,016,000 compared to a profit of RMB 26,085,000 in 2023, marking a significant decline[16]. - The loss for the year amounted to RMB 2,049,000, contrasting with a profit of RMB 25,011,000 in the prior year[16]. - The adjusted profit for the year, excluding IPO intermediaries fees, was RMB 14,916,000, down from RMB 36,709,000 in 2023, reflecting a decrease of 59.5%[16][18]. - The loss per share attributable to ordinary equity holders was RMB (0.65) cents, compared to earnings of RMB 8.72 cents per share in the previous year[16]. - The overall revenue for the year ended December 31, 2024, increased by 8.1% to RMB604.2 million from RMB559.0 million in 2023, mainly due to growth in digital marketing and other digital content services[47]. Revenue Breakdown - Over 90.0% of the company's revenue is generated from advertising services provided under online reading platform services and digital marketing services[3][6]. - In 2024, revenue from digital marketing services achieved RMB337.0 million, reflecting a year-on-year growth of 16.7%[29]. - Revenue from online games publishing services decreased to RMB6.1 million, representing a year-on-year decline of 41.8%[33]. - Revenue from other digital content services increased to RMB19.2 million, marking a year-on-year growth of 79.0%[34]. - Revenue from online reading platform services decreased by 2.9% from RMB248.9 million in 2023 to RMB241.8 million in 2024, primarily due to a reduction in advertisement placements and a focus on promoting free reading[48]. - Revenue from digital marketing services increased by 16.7% from RMB288.8 million in 2023 to RMB337.0 million in 2024, driven by efforts to expand services and improve advertising platform efficiency[49]. - Revenue from online games publishing services fell by 41.8% from RMB10.6 million in 2023 to RMB6.1 million in 2024, attributed to unsatisfactory performance of newly launched games overseas[50]. - Other digital content services achieved revenue of RMB19.2 million in 2024, marking a 79.0% year-over-year growth[36]. Expenses and Costs - Cost of sales increased by 16.4% from RMB299.3 million for the year ended December 31, 2023, to RMB348.4 million for the year ended December 31, 2024[54]. - Gross profit decreased by 1.5% from RMB259.7 million for the year ended December 31, 2023, to RMB255.8 million for the year ended December 31, 2024[59]. - Gross profit margin decreased from 46.5% for the year ended December 31, 2023, to 42.3% for the year ended December 31, 2024[59]. - Selling and distribution expenses increased by 20.4% from RMB153.7 million for the year ended December 31, 2023, to RMB185.0 million for the year ended December 31, 2024[69]. - Administrative expenses increased by 69.5% from RMB25.6 million for the year ended December 31, 2023, to RMB43.3 million for the year ended December 31, 2024[70]. - R&D expenses decreased by 4.0% from RMB37.6 million for the year ended December 31, 2023, to RMB36.1 million for the year ended December 31, 2024[71]. Assets and Liabilities - Total assets increased by 34.7% from RMB 505.4 million as of December 31, 2023, to RMB 680.8 million as of December 31, 2024, while total liabilities increased by 86.4% from RMB 126.1 million to RMB 235.1 million[82]. - Trade receivables increased by 39.0% from RMB 161.5 million as of December 31, 2023, to RMB 224.6 million as of December 31, 2024, mainly due to increased revenue from digital marketing services[89]. - Current assets increased by 43.7% from RMB 399.9 million as of December 31, 2023, to RMB 574.7 million as of December 31, 2024, while current liabilities increased by 89.9% from RMB 121.7 million to RMB 231.2 million[88]. - Cash and cash equivalents amounted to RMB160.8 million as of December 31, 2024, representing an increase of 80.6% from RMB89.1 million as of December 31, 2023, primarily due to proceeds from the Global Offering and increased bank borrowings[112]. - Interest-bearing bank and other borrowings increased by 127.4% to RMB193.1 million as of December 31, 2024, up from RMB84.9 million as of December 31, 2023, driven by working capital needs for business expansion[113]. - The gearing ratio increased to 43.3% as of December 31, 2024, compared to 22.4% as of December 31, 2023[114]. Strategic Initiatives - The company is committed to continuously improving its AI-based recommendation technology, which is foundational to its business operations[4]. - The Easou Recommendation Engine has been successfully applied in four scenarios, with plans to explore additional business opportunities[4]. - The company aims to achieve diversified monetization through synergy across its various business lines, leveraging its user base and digital content[5]. - The company plans to focus on overseas markets for game publishing and seek high-quality overseas game opportunities[21]. - The company will continue to invest in AIGC technologies and explore their application in various fields such as literary creation and advertising[28]. - The company is exploring recommendation services for short drama content to expand its application scenarios[32]. - The company plans to enhance the Easou AI Recommendation Engine by leveraging large model technology and multimodal feature fusion strategies in 2025[39]. - The company aims to expand overseas markets, focusing on high-quality translated and original short dramas targeting European and American users[42]. - In 2025, the company expects to launch no less than four new games in overseas markets, focusing on light games with in-app advertising as a monetization method[43]. - The company will continue to explore recommendation scenarios for digital music, videos, and e-commerce to achieve new business growth points[46]. Corporate Governance and Structure - The Group's executive team includes Mr. Wang Xi as CEO, Mr. Chen Jun as CFO, and Mr. Zhao Lei as COO, each with extensive experience in management and finance[139][144][148]. - The Company was incorporated in the Cayman Islands on February 9, 2022, and its shares were listed on the Main Board of the Stock Exchange on June 7, 2024[170]. - The Board did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[173]. - The Group's operations are primarily managed in the PRC, with most income and expenses denominated in RMB[128]. - The Group has no future plans for significant investment and capital assets as of the date of the annual report[135]. - The Group's major business activities include digital reading recommendation services, digital marketing services, and online game publishing services[176]. - The Company recognizes the importance of integrating environmental, social, and governance (ESG) values into its corporate strategies[187]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ended December 31, 2024[129]. - The Group will continue to monitor exchange rates and enhance risk management measures[133]. - The Group has foreign investments in US dollars but no foreign currency borrowings[132]. Future Outlook - The company is enhancing its R&D capabilities with a focus on improving its technological capability in the Easou Recommendation Engine, investing 15.0% of net proceeds, amounting to HK$6.1 million, with an expected utilization by the fourth quarter of 2027[195]. - The company aims to expand its user base on its online reading platform services, targeting a 10.0% increase, which corresponds to HK$4.1 million, with no unutilized balance expected by the third quarter of 2026[196]. - The company is optimizing the application depth of its Easou Recommendation Engine in online reading platform services, allocating 5.0% of net proceeds, equating to HK$2.0 million, with an expected utilization by the third quarter of 2026[196]. - The company plans to relaunch its online games publishing services in overseas markets, utilizing 15.0% of net proceeds, which is HK$6.1 million, with an expected utilization by the third quarter of 2026[197]. - The company is expanding its collaboration with content providers, targeting a 10.0% increase, which corresponds to HK$4.1 million, with an expected utilization by the third quarter of 2026[196]. - The company is increasing its investment in equipment to improve hardware support capabilities, allocating 15.0% of net proceeds, amounting to HK$6.1 million, with an unutilized balance of HK$6.1 million[195]. - The company is establishing cooperative relationships with new media channels to strengthen cooperation depth and attract more traffic, allocating 10.0% of net proceeds, equating to HK$4.1 million, with no unutilized balance expected[196].
宜搜科技(02550) - 2024 - 年度财报