Intelligent Group(INTJ) - 2024 Q4 - Annual Report

Revenue Performance - Total revenue for the year ended November 30, 2024, was HK$20,286,590 (US$2,607,363), a decrease of HK$252,628 or 1.2$20,539,218 in 2023[286]. - Financial PR services revenue constituted 51% of total revenues in 2024, down from 75% in 2023 and 92% in 2022, reflecting a significant decline due to clients adjusting their strategic positioning[288]. - Project-based financial PR services revenue increased by HK$4,883,105 or 187$2,607,555 in 2023 to HK$7,490,660 (US$962,748) in 2024, driven by increased demand for roadshow and listing ceremony services[290]. Expenses and Costs - Direct cost of revenues rose to HK$7,970,194 (US$1,024,381) in 2024, an increase of HK$3,464,711 or 77$4,505,483 in 2023, primarily due to higher staff costs and supplier procurement costs[293]. - Staff costs for the year ended November 30, 2024, amounted to HK$5,767,541 (US$741,282), up from HK$3,160,163 in 2023, indicating a significant increase in operational expenses[280]. - General and administrative expenses increased to HK$13,875,156 (US$1,783,324) in 2024, up from HK$8,623,437 in 2023, reflecting rising operational costs[286]. - Selling expenses increased significantly to HK$3,276,562 for the year ended November 30, 2023, up 243$957,546 in 2022[294]. - Entertainment expenses surged by HK$2,325,708, or 656$354,652 in 2022 to HK$2,680,360 in 2023, driven by increased capital market activities[295]. - Advertisement expenses rose by HK$52,414, or 185%, from HK$28,374 in 2022 to HK$80,785 in 2023, reflecting heightened advertising activities[298]. - Administrative expenses grew by HK$1,550,077, or 22$7,073,360 in 2022 to HK$8,623,437 in 2023, and further increased by 61$13,875,156 in 2024[304]. - Staff costs rose by HK$471,228, or 45$1,506,800 in 2023, and increased by 121% to HK$3,322,707 in 2024 due to recruitment and salary raises[305]. Financial Performance - The company experienced a net loss of HK$425,709 (US$54,715) for the year ended November 30, 2024, compared to a net income of HK$4,068,979 in 2023[286]. - The company’s income (loss) from operations for 2024 was a loss of HK$2,526,233 (US$324,688), compared to a profit of HK$4,133,736 in 2023[286]. - Provision for doubtful accounts increased by HK$1,614,945, or 299%, from HK$540,000 in 2022 to HK$2,154,945 in 2023, and further increased by 126% to HK$4,872,854 in 2024[311]. Assets and Liabilities - Current assets rose to HK$69,688,174 in 2024, up from HK$30,797,351 in 2023, with cash and cash equivalents increasing to HK$63,535,847[320]. - Working capital improved significantly to HK$64,576,951 in 2024, compared to HK$16,548,284 in 2023[320]. - Accounts receivable, net balance decreased by HK$3,062,378, or 56$5,420,540 as of November 30, 2023, to HK$2,358,162 (US$303,086) as of November 30, 2024[322]. - Prepayments and other receivables increased by HK$1,766,344, or 2,208$80,000 to HK$1,846,344 as of November 30, 2023, and 2024, mainly due to prepayment of a consultancy fee[324]. - Accruals and other payables increased by HK$1,125,289, or 746%, from HK$150,940 as of November 30, 2023, to HK$1,276,229 (US$164,029) as of November 30, 2024[325]. - Contract liabilities decreased by HK$1,391,183, or 92%, from HK$1,519,584 as of November 30, 2023, to HK$128,400 (US$16,503) as of November 30, 2024[326]. Cash Flow and Financing - Net cash used in operating activities for the year ended November 30, 2024, was HK$1,247,966, primarily due to a net loss of HK$425,709[333]. - Net cash provided by financing activities for the year ended November 30, 2024, was HK$48,580,126, primarily from HK$49,040,843 funds from issuance of ordinary shares[337]. - Cash and cash equivalents at the end of the year for 2024 were HK$63,535,847 (US$8,166,037), up from HK$25,296,811 in 2023[329]. Related Party Transactions - As of November 30, 2023, the amount due from Ms. Wai Lau is HK$1,556,765 (US$200,085), which is expected to be fully repaid by March 2025 to support business expansion[341]. - The total amount due to related parties as of November 30, 2023, is HK$7,536,359, which includes HK$6,358,430 owed to Ms. Wai Lau[341]. - The company made payments on behalf of Ms. Wai Lau totaling HK$9,093,124 (US$1,168,707) during the year[341]. Credit Risk and Liquidity - Provision for allowance for credit loss of accounts receivables was HK$3,890,793 for the year ended November 30, 2024[323]. - The company has no off-balance sheet arrangements that would affect its liquidity or capital resources[342]. - The Group adopts the current expected credit loss model (CECL) for estimating expected credit losses on accounts receivable[346]. - The company ensures sufficient liquidity to meet financial obligations for a period of 180 days under normal conditions[508]. - The exposure to foreign currency risk is minimal as HK$ is pegged to US$[506]. - The company does not require collateral from customers, minimizing credit risk exposure[503]. Outlook - The company plans to closely monitor economic conditions and market developments throughout 2025 and beyond, indicating a cautious outlook amid ongoing uncertainties[284].