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 revenue before agency fees was RMB 28,516,000, a decrease from RMB 35,504,000 in 2023, representing a decline of approximately 19%[17]. - The adjusted EBITDA for 2024 was RMB 612 thousand, significantly lower than RMB 8,151 thousand in 2023, indicating a decline of approximately 92.5%[25]. - The company reported a net loss before tax of RMB 17,814 thousand for 2024, compared to a loss of RMB 77,785 thousand in 2023, showing an improvement of approximately 77%[25]. - The company reported a basic loss per share of RMB 17,814,000 in 2024 compared to a loss of RMB 84,647,000 in 2023, showing a significant reduction in losses[34]. Revenue Breakdown - Revenue from traditional offline media advertising services was RMB 10,903,000 in 2024, down from RMB 16,915,000 in 2023, indicating a decrease of about 35%[16]. - Online media advertising services generated revenue of RMB 3,843,000 in 2024, compared to RMB 5,601,000 in 2023, reflecting a decline of approximately 31%[16]. - Revenue from public relations, marketing activities, and other services increased significantly to RMB 7,202,000 in 2024 from RMB 2,908,000 in 2023, marking an increase of about 147%[16]. - For the fiscal year ending December 31, 2024, the total reported segment revenue was RMB 21,948 thousand, a decrease from RMB 25,424 thousand in 2023, representing a decline of approximately 13.3%[23][24]. Assets and Liabilities - The total current assets increased to RMB 57.84 million for the year ended December 31, 2024, compared to 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 total equity attributable to shareholders increased to RMB 34.87 million for the year ended December 31, 2024, compared to a deficit of RMB 14.30 million for the year ended 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 liabilities for trade and other payables decreased to RMB 11,079,000 in 2024 from RMB 19,260,000 in 2023, a decrease of approximately 43%[41]. Operational Changes - The company launched a new goods trading business during the fiscal year, although it has not yet generated any revenue[15]. - The new goods trading business has been identified as a new operating segment for the company following its launch[20]. - The group plans to consolidate traditional outdoor and community media business while exploring opportunities in social short videos, new media operations, and AIGC innovative technology resources[45]. - The group aims to expand into Web3, virtual digital assets, and metaverse technology applications to derive new industrial business opportunities[50]. 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 to enhance transparency and accountability[70]. Dividends and Financial Support - The board does not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[4]. - The company plans to secure financial support of RMB 15 million from a major shareholder to ensure operational continuity for at least 18 months from the date of the financial statements[9]. - The company did not recommend any dividend payments for the year ending December 31, 2024, consistent with 2023[33]. Employee and Cost Management - Employee costs, including directors' remuneration, decreased from RMB 10,021 thousand in 2023 to RMB 8,618 thousand in 2024, a reduction of approximately 14%[28]. - 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]. - Media costs decreased to RMB 11,615,000 in 2024 from RMB 16,471,000 in 2023, a reduction of approximately 29%[30]. - The cost of public relations, marketing activities, and other services increased significantly to RMB 9,716,000 in 2024 from RMB 1,777,000 in 2023, representing a growth of over 435%[30]. Other Financial Metrics - The total financial expenses decreased from RMB 885 thousand in 2023 to RMB 171 thousand in 2024, a reduction of approximately 80.7%[28]. - The company recognized a gain of RMB 66 thousand from the sale of property, plant, and equipment in 2024, compared to a loss of RMB 788 thousand in 2023[25][27]. - The impairment loss on property, plant, and equipment increased from RMB 226 thousand in 2023 to RMB 299 thousand in 2024, an increase of approximately 32.3%[25]. - The company reported a net impairment loss reversal of RMB 14,658 thousand in 2024, compared to a loss of RMB 62,955 thousand in 2023, indicating a significant improvement[25]. Shareholder Actions - The group issued 36 million new shares and 216 million new shares through placement and rights issue, respectively, during the year[59]. - The average number of ordinary shares outstanding increased to 322,395,511 in 2024 from 224,324,324 in 2023, reflecting a dilution effect from the rights issue completed in August 2024[34]. - The company has not purchased, sold, or redeemed any of its listed securities during the year[73]. Future Outlook - The company is currently assessing the potential impact of upcoming financial reporting standards that are not yet effective, 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 made significant prepayments for goods trade amounting to RMB 35,701,000 in 2024, which was not present in 2023, indicating a strategic move to secure inventory[38].
天泓文创(08500) - 2024 - 年度业绩