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Agape ATP Corporation (ATPC+7.55%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing a decrease in total revenue to $1,322,747 from $1,431,088 in the previous year. This decrease is attributed to a significant decline in the network marketing business, partially offset by new revenue streams in wellness and green energy.
Cost of revenue increased to $563,599, representing 42.6% of sales, compared to 34.6% in the previous year. The increase is due to inventory write-downs and higher costs associated with new business operations.
The company reported a gross profit of $759,148, down from $936,572 in the previous year, with the decline attributed to lower sales and increased costs.
Selling expenses decreased significantly to $162,712 from $629,003, primarily due to reduced promotional activities in the network marketing business.
Net loss for the year was $2,486,044, compared to $2,109,935 in the previous year. The increase in net loss is due to higher general and administrative expenses and lower revenue.
Agape ATP Corporation had working capital of $1,656,571 as of December 31, 2024, with cash and cash equivalents amounting to $2,040,243.
The filing outlines the company's strategy to diversify into renewable energy, with the formation of ATPC Green Energy Sdn. Bhd. and plans to develop a digital wellness platform.
The report also highlights the company's exposure to risks, including reliance on major suppliers, changes in consumer preferences, and regulatory compliance in Malaysia.
Agape ATP Corporation acknowledges material weaknesses in its internal controls over financial reporting and outlines plans to address these issues, including hiring additional accounting personnel and enhancing internal audit functions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Agape ATP Corporation annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.