Cosmos Group Holdings Inc. reported a significant turnaround in its financial performance for the fiscal year ending December 31, 2024, achieving a net income of $4.7 million compared to a net loss of $77.3 million in the previous year. The company’s revenue from continuing operations was approximately $6,408, marking a 100% increase from zero in 2023, primarily driven by consultancy services in the arts and collectibles sector. However, revenue from discontinued operations saw a substantial decline of 98.6%, dropping to $51,266 from $3.7 million, largely due to the disposal of its lending segment.
The company’s current assets increased to $43,344 in 2024 from $8.8 million in 2023, while current liabilities decreased to $41.3 million from $65.5 million. This improvement in the balance sheet reflects a strategic shift following the divestiture of the lending business, which had previously burdened the company with high liabilities. The total stockholders’ deficit also improved, narrowing to $41.2 million from $46.8 million, indicating a positive trend in the company’s financial health.
In terms of strategic developments, Cosmos Group has focused on its online platform for the sale and distribution of arts and collectibles, leveraging blockchain technology and digital ownership tokens (DOTs). The company has also undergone significant organizational changes, including the resignation of former CEO Chan Man Chung and the appointment of Wong Nga Yin Polin as the new CEO in December 2024. The company’s operational focus is now on enhancing its arts and collectibles business, with plans for future growth through potential acquisitions and partnerships.
Operationally, Cosmos Group has reported a total of 262 shareholders as of December 31, 2024, with a notable concentration of ownership among a few major shareholders. The company has not paid dividends and does not anticipate doing so in the foreseeable future, as it aims to reinvest earnings into business expansion. The company’s workforce consists of three executive directors and 20 consultants, reflecting a lean operational structure aimed at maximizing efficiency.
Looking ahead, Cosmos Group Holdings Inc. acknowledges the need for additional funding to support its ongoing operations and expansion plans. The company has expressed reliance on financial support from shareholders and potential equity offerings to meet its capital requirements. The management has indicated that its ability to continue as a going concern is contingent upon improving profitability and securing necessary financing, highlighting the ongoing challenges and uncertainties in the evolving regulatory landscape in Hong Kong and the broader Chinese market.
About Cosmos Group Holdings Inc.
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