Financial Performance - For the fiscal year ending December 31, 2025, CMON Limited reported total revenue of $9,907,433, a decrease of 73.5% compared to $37,353,249 in 2024[4]. - The cost of sales for the same period was $9,169,709, resulting in a gross profit of $737,724, down 95.9% from $17,997,494 in the previous year[4]. - The operating loss for the year was $21,170,860, compared to an operating loss of $2,559,878 in 2024, indicating a significant decline in operational performance[4]. - The net loss attributable to the owners of the company was $19,913,968, a substantial increase from $3,047,341 in the prior year, reflecting a 553.5% rise in losses[5]. - The company reported a loss of $8,055,658 in 2025, compared to a profit of $35,646 in 2024, indicating a substantial shift in financial performance[22]. - The total comprehensive loss attributable to equity holders increased from approximately $3.0 million for the year ended December 31, 2024, to approximately $19.9 million for the year ended December 31, 2025[42]. - The company's basic and diluted loss per share for the year was $(0.36), compared to $(0.05) in 2024, indicating a worsening financial position[5]. - The company's employee costs totaled approximately $2.8 million for the year ending December 31, 2025, down from approximately $4.0 million in 2024, with a reduction in the number of employees from 81 to 42[72]. Assets and Liabilities - Total assets decreased to $4,766,250 from $5,278,537 in 2024, while total liabilities increased to $11,660,251 from $9,633,617, resulting in a net (liabilities)/assets position of $(3,592,002)[6][7]. - The total non-current assets decreased from $18,485,283 in 2024 to $3,122,496 in 2025, reflecting a decline of approximately 83%[20]. - As of December 31, 2025, the company's total assets were approximately $8.8 million, with total liabilities of approximately $12.4 million, primarily consisting of current liabilities[62]. - The company had a net current liability of $6,894,001 and a net liability of $3,592,002[100]. - The company's asset-liability ratio was approximately 140.6% as of December 31, 2025, compared to approximately 47.6% as of December 31, 2024[75]. Revenue Sources - Revenue from North and South America dropped to $2,119,388 in 2025 from $15,699,195 in 2024, a decrease of about 87%[15]. - Revenue from the North American market dropped to about 21.4% of total revenue, down from approximately 42% the previous year, reflecting a strategic shift towards Asia[40]. - Revenue from the U.S. market decreased to approximately 21.4% of total revenue for the year ending December 31, 2025, down from about 42% the previous year, indicating a strategic shift towards Asia[85]. - The company shipped crowdfunding projects contributing approximately $0.2 million in revenue for the year ending December 31, 2025, compared to approximately $20.0 million in 2024, with successfully launched but unshipped crowdfunding projects amounting to approximately $3.2 million for 2025[70]. Cost Management - The cost of goods sold was $5,963,431 in 2025, down from $13,093,441 in 2024, showing a reduction of about 54%[26]. - The company reported a decrease in employee benefits expenses from $4,018,198 in 2024 to $2,844,420 in 2025, a reduction of about 29%[26]. - Sales and distribution expenses decreased from approximately $7.2 million to about $4.8 million, mainly due to a decline in sales[54]. - General and administrative expenses reduced from approximately $13.5 million to about $9.3 million, largely due to a decrease in game development expenses[55]. Strategic Initiatives - CMON Limited plans to raise approximately HKD 9.8 million through a placement of 10,320,000 shares at a price of HKD 0.9500 per share to support its operational funding needs[11]. - The company is implementing a restructuring plan to reduce cash outflows from operating activities, aiming for improved financial stability[11]. - The company aims to focus on fulfilling commitments to supporters and plans to resume crowdfunding activities in the second half of 2026 with new works from existing game series[44]. - The company is strategically shifting its focus to distribution in Asia, which has become its largest market, while North America and Europe have seen significant declines[49]. - The company has begun evaluating the impact of new and revised International Financial Reporting Standards but has not yet determined if they will significantly affect its operating performance and financial position[13]. Shareholder Information - No dividends were recommended by the board for the year ending December 31, 2025, consistent with 2024[27]. - The board does not recommend a final dividend for the year ending December 31, 2025, consistent with the previous year[86]. - The total number of shares outstanding increased from 51,600,000 to 61,920,000 post-transaction, with public shareholders holding 34.28% of shares[92]. - Major shareholders' ownership percentages decreased post-transaction, with Huang Cheng'an's share dropping from 24.09% to 20.08%[92]. Audit and Compliance - The audit committee reviewed the accounting policies and internal controls related to the financial reporting for the year ended December 31, 2025[96]. - The independent auditor, Zhonghui Anda CPA Limited, was appointed to audit the consolidated financial statements for the year ended December 31, 2025[99]. - The annual report for the year ended December 31, 2025, will be published on the company's website and sent to shareholders in due course[101].
CMON(01792) - 2025 - 年度业绩