Greenpro Capital(GRNQ) - 2023 Q4 - Annual Report

Revenue Performance - Total revenue for the year ended December 31, 2023, was $3,477,664, a decrease from $3,673,997 in 2022, primarily due to no real estate sales in 2023 compared to $840,036 from three units sold in 2022 [112]. - Service revenue increased to $3,379,596 in 2023 from $2,725,466 in 2022, driven by business consulting and advisory services [113]. - Rental revenue decreased to $98,068 in 2023 from $108,495 in 2022, with expectations for stable rental income moving forward [114]. - Related party service revenue increased to $1,425,577 in 2023 from $665,203 in 2022, representing a growth of approximately 114% [124]. - Related party service revenue accounted for 38% of total service revenue in 2023, up from 17% in 2022 [124]. Operating Costs and Expenses - Total operating costs and expenses decreased to $4,980,842 in 2023 from $5,192,500 in 2022, contributing to a reduced loss from operations of $1,503,178 compared to $1,518,503 in 2022 [116]. - General and administrative expenses rose to $4,409,264 in 2023 from $4,168,997 in 2022, with expectations for continued increases as the company expands [120]. - Cost of service revenue increased to $534,965 in 2023 from $404,077 in 2022, primarily due to employee compensation and related costs [117]. - Cost of rental revenue decreased to $36,613 in 2023 from $46,083 in 2022, reflecting lower associated costs [118]. Net Income and Other Income - Net income for the year ended December 31, 2023, was $1,049,699, a significant recovery from a net loss of $6,262,188 in 2022, attributed to increased service revenue and reversal of impairment [122]. - The company recorded net other income of $2,559,706 in 2023, compared to a net other expense of $4,741,329 in 2022, mainly due to a reversal of impairment of other investments [121]. - The company recorded a reversal of impairment of related party investment of $6,882,000 in 2023, compared to $0 in 2022 [125]. Cash Flow and Financial Position - Net cash used in operating activities decreased to $1,594,718 in 2023 from $2,402,769 in 2022, a reduction of approximately 34% [132]. - Cash balance decreased to $2,223,197 as of December 31, 2023, down from $3,911,535 in 2022, a decline of 43% [131]. - Amounts due from related parties increased to $750,860 in 2023 from $265,772 in 2022, representing a growth of approximately 182% [126]. - Deferred revenue from related parties decreased to $157,500 in 2023 from $849,400 in 2022, a decline of approximately 81% [127]. - The company incurred an accumulated deficit of $36,549,095 as of December 31, 2023 [131]. - The company did not issue any shares of Common Stock during 2023, maintaining 7,575,813 shares outstanding [132]. Impairment and Investments - Impairment of related party investments rose to $4,982,000 in 2023 from $4,208,029 in 2022, indicating an 18% increase [124]. - The company has no significant off-balance sheet arrangements that could materially affect its financial condition as of December 31, 2023 [123].