Economic Outlook - In 2024, the global GDP growth rate is estimated at approximately 3.1%, lower than pre-pandemic levels, with developed economies showing weak growth and emerging markets like India and Southeast Asia performing relatively strong [17]. - The U.S. economy's full-year GDP growth rate was approximately 2.5%, supported by consumption and labor markets, although high interest rates dampened business investments [17]. - The Euro area experienced a growth rate of only 0.7%, with major industrial countries like Germany falling into technical recessions due to energy price fluctuations and a shrinking manufacturing industry [17]. - The OECD predicts global economic growth of 3.2% in 2024, with emerging economies in Asia, particularly China, being major contributors [56]. - The US economy is expected to perform best among G7 countries in 2024, driven by strong consumer spending despite high borrowing costs [57]. - In 2024, China's GDP growth rate is projected to be 5%, aligning with the official target set during the National People's Congress [60]. - Hong Kong's economy is expected to grow moderately by 2.5% in 2024, following a growth of 3.2% in 2023 [61]. - The global public debt is expected to exceed US$100 trillion in 2024, accounting for 93% of global GDP, posing risks to long-term economic stability [55]. Company Performance and Strategy - Cybernaut International Holdings Company Limited has adhered to a strategic direction of seeking changes while maintaining stability, resulting in steady development across various businesses [16]. - The company expressed gratitude to shareholders, customers, employees, and partners for their trust and support during a challenging year [16]. - The management discussion and analysis section of the annual report provides insights into the company's performance and strategic initiatives [6]. - The company plans to continue focusing on market expansion and new product development to adapt to the changing economic landscape [16]. - The financial performance for the year ending December 31, 2024, will be detailed in the annual report, which complies with the Hong Kong Stock Exchange regulations [2]. - The company has undergone changes in its executive team, with resignations and new appointments in key positions [7]. - The company is committed to enhancing corporate governance and maintaining transparency in its operations [6]. Money Lending Business - In 2024, the money lending business in Hong Kong faced a "coexistence of challenges and opportunities" amid economic volatility and high interest rates, indicating potential for growth if compliance, technology, and risk management are balanced [25]. - Demand for personal loans remained stable, driven by high inflation and living costs, with specific demographic groups like new immigrants and freelancers relying on licensed money lenders [27]. - The financing gap for SMEs widened as banks tightened credit, making it more difficult for them to obtain traditional loans, leading to increased demand for alternative financing solutions [28]. - The bad debt rate is rising due to deteriorating repayment capabilities of borrowers amid an economic slowdown, posing a risk to the lending business [34]. - The money lending subsidiary, Time Credit Limited, primarily generated revenue through first mortgage property loans, focusing on high-net-worth clients [66]. - The money lending business revenue decreased by approximately 10.4% to RMB18.3 million for the year ended December 31, 2024, down from RMB20.4 million in 2023, attributed to a reduction in loan applications and new loans granted [74]. Technology and Market Trends - The smartphone penetration rate in Hong Kong is over 7 million users, indicating a saturated market, with a prolonged replacement cycle now exceeding 3 years [35]. - 5G users accounted for 70% in 2024, driving demand for applications such as cloud gaming and AR/VR, presenting opportunities for e-commerce growth [35]. - The emergence of digital loan platforms like WeLend and Monexo has compressed the space for traditional small finance companies, increasing competition in the lending market [30]. - Regulatory trends indicate potential tightening, with increased scrutiny on debt collection and anti-money laundering requirements, raising compliance costs for lenders [30]. - The mobile phone e-commerce market in Hong Kong has entered a "zero-sum competition" phase, relying on new technologies and sustainable consumption trends for growth [41]. - Supply chain and geopolitical risks, including the Sino-U.S. technology war, may impact chip supply and mobile phone import prices [45]. Financial Performance - The Group recorded a gross profit of approximately RMB19.3 million for the year ended December 31, 2024, with a gross profit margin of approximately 20.7%, compared to RMB22.7 million and a margin of 20.3% in 2023 [88]. - The Group's loss for the year ended December 31, 2024, was approximately RMB44.9 million, compared to a loss of approximately RMB22.9 million in the previous year, with loss per share increasing from RMB0.53 to RMB0.90 [106]. - Administrative expenses increased by approximately 13.1% from RMB27.0 million in 2023 to RMB30.6 million in 2024, mainly due to higher adjusted salaries and legal fees [96]. - The Group's finance costs were approximately RMB37.3 million for the year ended December 31, 2024, reflecting a decrease due to changes in the terms of promissory notes [97]. - The total equity of the Group as of December 31, 2024, was approximately RMB81.8 million, a decrease from approximately RMB120.5 million in 2023 [113]. - The Group's asset-liability ratio was approximately 53%, up from 48% in 2023 [122]. - The Group's cost of sales decreased by approximately 16.8% from RMB88.9 million in 2023 to approximately RMB73.9 million in 2024, mainly due to decreased revenue from both the money lending and internet businesses [87]. Legal and Compliance Matters - The Group has not provided any guarantees to companies outside of the Group nor is it involved in any current material legal proceedings as of December 31, 2024 [131]. - The company confirmed compliance with all requirements under Chapter 14A of the Listing Rules regarding related party transactions, which were fully exempt from shareholders' approval [198]. - VT Zero Limited, a wholly-owned subsidiary, is involved in litigation claiming approximately HK$26.23 million for outstanding sales proceeds and HK$36.93 million for late remittance payments [125]. - The trial for the litigation against VT Zero is scheduled for early July 2026, with the court having dismissed the Plaintiff's applications for interim payment [129].
赛伯乐国际控股(01020) - 2024 - 年度业绩