Financial Performance - For the fiscal year ending December 31, 2024, revenue decreased by approximately 93.4% to approximately RMB 4.1 million from approximately RMB 62.9 million for the fiscal year ending December 31, 2023[4] - Gross loss for the fiscal year ending December 31, 2024, decreased by approximately 36.3% to approximately RMB 38.9 million from approximately RMB 61.1 million for the fiscal year ending December 31, 2023[4] - Net loss for the fiscal year ending December 31, 2024, decreased by approximately 1.1% to approximately RMB 98.3 million from approximately RMB 99.4 million for the fiscal year ending December 31, 2023[4] - Basic and diluted loss per share for the fiscal year ending December 31, 2024, was approximately RMB 9.48 cents compared to RMB 9.58 cents for the fiscal year ending December 31, 2023[4] - The group recorded a total loss of RMB 98,316,000 for the year ending December 31, 2024, with a net cash outflow from operating activities of RMB 18,154,000[14] - The group reported a pre-tax loss of RMB 98,137,000 in 2024, slightly improved from a loss of RMB 99,162,000 in 2023[37] - Total revenue for the reporting period was approximately RMB 4.1 million, a decrease of about 93.4% compared to RMB 62.9 million in the previous year[49] Assets and Liabilities - Total non-current assets decreased to RMB 975 thousand from RMB 6,204 thousand as of December 31, 2023[7] - Current assets decreased to RMB 99,055 thousand from RMB 198,396 thousand as of December 31, 2023[7] - Current liabilities decreased to RMB 18,879 thousand from RMB 26,266 thousand as of December 31, 2023[7] - Total equity decreased to RMB 78,273 thousand from RMB 176,431 thousand as of December 31, 2023[7] - Trade receivables at the end of the reporting period amounted to RMB 167.7 million, down from RMB 179.5 million in the previous year[12] - The impairment loss provision for trade receivables increased to RMB 157.6 million, up from RMB 126.7 million in the previous year, reflecting an increase in overdue receivables[43] - The expected credit loss rate for trade receivables over three years was 100%, with a total expected credit loss of RMB 134.8 million[45] - Current assets net value decreased from RMB 172.1 million in 2023 to RMB 80.2 million in 2024, with cash and bank balances dropping from RMB 42.7 million to RMB 20.7 million[76] Revenue Sources - All revenues for the year were generated from customers located in mainland China, with all non-current assets also situated in mainland China[23] - In 2024, revenue from major customers accounted for 10% or more of the group's total revenue, with Customer 1 generating RMB 2,399,000 and Customer 2 RMB 593,000[24] - Total revenue for 2024 was RMB 4,123,000, a significant decrease from RMB 62,914,000 in 2023, primarily due to a drop in customer contract revenue from RMB 42,682,000 to RMB 3,133,000[25] - Revenue from granting broadcasting rights for TV dramas or web series was approximately RMB 3.1 million, down 92.7% from RMB 42.7 million year-on-year[49] - The net income from investment as a non-executive producer for TV dramas or web series was approximately RMB 1.0 million, a decrease of 93.4% from RMB 14.9 million in the previous year[49] - Revenue from non-copyright share investments in web series was zero for 2024, compared to approximately RMB 5.3 million in the previous year[59] - The company primarily generated net licensing fees from web series "Anti-Fraud Police" and "Pearl River Family" for the year ending December 31, 2024[58] Expenses and Costs - Sales costs decreased by approximately 65.3% from about RMB 124.0 million in 2023 to about RMB 43.0 million in 2024, mainly due to reduced licensing costs and increased inventory write-downs[60] - Other income and gains decreased by approximately 55.0% from about RMB 1.1 million in 2023 to about RMB 0.5 million in 2024, primarily due to reduced government subsidies[67] - Sales and distribution expenses decreased by approximately 71.5% from about RMB 4.3 million in 2023 to about RMB 1.2 million in 2024, mainly due to reduced advertising and marketing expenses[68] - Administrative expenses increased by approximately 2.6% from RMB 144.4 million in 2023 to RMB 147.4 million in 2024, primarily due to increased compensation and travel expenses[69] - Financing costs decreased from RMB 346,000 in 2023 to RMB 243,000 in 2024, reflecting a reduction in interest expenses[34] - Financial asset impairment losses recorded were approximately RMB 31.0 million, mainly due to an increase in long-term overdue trade receivables from certain customers[70] Dividends and Shareholder Actions - The board of directors did not recommend the payment of a final dividend for the fiscal year ending December 31, 2024[4] - The group did not declare or pay any dividends in 2024, consistent with 2023[38] - A major shareholder has confirmed financial support to ensure the group has sufficient cash flow for operations[14] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring compliance and enhancing accountability[94] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024[100] - The company has established risk management procedures to address significant risks related to its business, with an effective internal control system confirmed by the board[104] - No significant deficiencies in internal controls or risk management have been identified, and the company believes its current internal control system is effective and adequate[107] - The company has implemented a whistleblowing policy to encourage employees to report any misconduct in a safe and confidential environment[107] - The company has adopted a written guideline for employees regarding securities trading to comply with the standards set forth in the listing rules[98] Future Outlook - Future market conditions are expected to remain challenging, prompting the company to adopt a cautious approach to project selection and cost control[52] - The company is expanding its web series production business in response to the growing popularity of online dramas[49] - Six web series are scheduled for release between April 2024 and March 2025, contributing to future revenue streams[50] Meeting and Reporting - The annual general meeting is scheduled for May 30, 2025, with a notice to be published in accordance with the company's articles of association and listing rules[101] - The company will publish its annual results announcement on the Hong Kong Stock Exchange and its website, with printed versions available upon request[102] - The board has received confirmations regarding the effectiveness of the risk management and internal control systems from management[105]
新石文化(01740) - 2024 - 年度业绩