Financial Performance - For the year ended December 31, 2024, the group's revenue was approximately RMB 21.9 million, a decrease of about RMB 3.5 million or 13.7% compared to RMB 25.4 million for the year ended December 31, 2023[4] - The group's gross profit margin decreased from approximately 16.4% for the year ended December 31, 2023, to approximately -9.8% for the year ended December 31, 2024[4] - The loss for the year ended December 31, 2024, was approximately RMB 17.8 million, a reduction of RMB 66.8 million compared to a loss of RMB 84.6 million for the year ended December 31, 2023[4] - Basic loss per share for the year ended December 31, 2024, was approximately RMB 0.06, compared to RMB 0.38 for the year ended December 31, 2023[4] - For the fiscal year ending December 31, 2024, the total reported segment revenue was RMB 21,948,000, compared to RMB 25,424,000 for the fiscal year ending December 31, 2023, reflecting a decrease of approximately 13.7%[23][24] - The adjusted EBITDA for the fiscal year 2024 was RMB 612,000, significantly lower than RMB 8,151,000 in 2023, indicating a decline of approximately 92.5%[25] - The company reported a net loss before tax of RMB 17,814,000 for 2024, an improvement from a loss of RMB 77,785,000 in 2023[25][28] - The company recognized a loss of RMB 1,082,000 for impairment of prepaid supplier payments in 2024, down from RMB 4,254,000 in 2023, showing a decrease of approximately 74.6%[25][26] - The total other income for 2024 was RMB 200,000, a decrease from RMB 588,000 in 2023, reflecting a decline of approximately 66.0%[26] - The company incurred financial expenses of RMB 171,000 in 2024, down from RMB 885,000 in 2023, representing a reduction of approximately 80.7%[25][28] - The group's gross loss for the year was approximately RMB 2.2 million, with a gross loss margin of 9.8%, down from a gross profit margin of 16.4% in 2023[48] Revenue Breakdown - For the year ending December 31, 2024, the total revenue before agency fees was RMB 28,516,000, a decrease of 19.6% from RMB 35,504,000 in 2023[17] - Revenue from traditional offline media advertising services was RMB 10,903,000, down 35.5% from RMB 16,915,000 in 2023[16] - Online media advertising services generated revenue of RMB 3,843,000, a decrease of 31.3% from RMB 5,601,000 in 2023[16] - Revenue from public relations, marketing activities, and other services increased to RMB 7,202,000, up 147.0% from RMB 2,908,000 in 2023[16] - The revenue from immediate recognition of contracts was RMB 11,254,000 for 2024, compared to RMB 4,242,000 for 2023, indicating an increase of approximately 165.5%[23][24] Assets and Liabilities - The total current assets increased to RMB 57.84 million for the year ended December 31, 2024, from RMB 26.28 million for the year ended December 31, 2023[7] - The total current liabilities decreased to RMB 23.62 million for the year ended December 31, 2024, from RMB 40.58 million for the year ended December 31, 2023[7] - The company's equity increased to RMB 34.87 million as of December 31, 2024, compared to a deficit of RMB 14.30 million as of December 31, 2023[7] - Trade receivables decreased to RMB 82,795,000 in 2024 from RMB 106,292,000 in 2023, a decline of approximately 22%[36] - The impairment loss on trade receivables was reduced to RMB 80,479,000 in 2024 from RMB 95,102,000 in 2023, indicating an improvement in collection efforts[36] - Total other receivables, deposits, and prepayments increased to RMB 51,447,000 in 2024 from RMB 1,416,000 in 2023, reflecting a substantial growth in these assets[38] - Trade payables decreased to RMB 4,179,000 in 2024 from RMB 11,918,000 in 2023, a decrease of approximately 65%[41] Shareholder and Dividend Information - A major shareholder has committed to provide financial support of RMB 15 million to ensure the group's continued operation for at least 18 months from the date of the financial statements[9] - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[4] - The group did not recommend any dividend payments for the year ending December 31, 2024, consistent with 2023[33] - The board has resolved not to recommend the payment of a final dividend for the year, consistent with 2023[68] Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee internal audit functions and financial reporting processes[76] - The company has complied with the corporate governance code throughout the year ending December 31, 2024[71] - The company has adopted trading regulations for directors in accordance with GEM Listing Rules, ensuring compliance throughout the year[74] - The company has applied the principles and provisions of the corporate governance code as part of its governance practices[70] Future Outlook and Strategic Initiatives - The group plans to consolidate traditional outdoor and community media business opportunities while exploring new media operations and innovative technologies such as AIGC[45] - The group aims to expand into Web3, virtual digital assets, and metaverse technology applications to derive new industrial business opportunities[50] - The company is currently assessing the impact of upcoming financial reporting standards that will take effect in 2025 and 2026, with no significant impact expected on the consolidated financial statements[13] - There are currently no plans for significant investments or capital assets in the future[67] - The company has not purchased, sold, or redeemed any of its listed securities during the year[73] - The company has requested a suspension of trading of its shares on GEM pending the publication of its annual results for the year ending December 31, 2024[78] Employee and Operational Metrics - As of December 31, 2024, the group had 36 full-time employees, a decrease from 43 in 2023, with total compensation amounting to RMB 8.6 million, down from RMB 10.0 million in 2023[64] - The total employee costs, including directors' remuneration, decreased to RMB 8,618,000 in 2024 from RMB 10,021,000 in 2023, a reduction of approximately 14.0%[28] - The group's sales expenses for the year were approximately RMB 2.2 million, a decrease from RMB 4.3 million in 2023[51] - The group's administrative expenses increased to approximately RMB 9.1 million from RMB 8.6 million in 2023[52]
天泓文创(08500) - 2024 - 年度业绩