10-K: Greenpro Capital Corp. Reports Annual Results: Focus on Digital Assets and International Expansion

Greenpro Capital Corp.'s 2024 annual report highlights a strategic shift towards digital assets and expansion in Southeast Asia, amidst ongoing financial challenges.

Summary

• Greenpro Capital Corp. reported a net loss of $725,827 for the year ended December 31, 2024, and an accumulated deficit of $37,264,379.
• The company's independent auditor has raised substantial doubt about its ability to continue as a going concern.
• Revenue increased slightly to $3,496,405 in 2024 from $3,477,664 in 2023, driven by new digital revenue streams.
• The company is focusing on security token offerings (STOs) and expanding corporate finance services in Asia.
• Green-X Corp., a subsidiary, is expanding blockchain initiatives in Indonesia and plans to implement a BIMP-EAGA digital wallet.
• The company is actively managing cybersecurity risks and has integrated cybersecurity risk management into its broader risk management framework.
• The company has 48 employees as of April 9, 2025, located in Malaysia, China, and Hong Kong.
• The company is pursuing a future development plan that includes security token offerings, expansion of corporate finance services, and ADAQ development.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While there's some revenue growth and strategic initiatives, the net loss, auditor's concern about going concern, and various risk factors weigh heavily on the sentiment.

Positives

• Total revenue increased slightly to $3,496,405 in 2024, driven by digital revenue of $327,802.
• The company is expanding its blockchain initiatives through Green-X Corp., including a strategic agreement with Pondok Pesantren Darul Fiqhi.
• The company acquired Global Business Hub Limited (GBHL) to develop a digital banking business in Malaysia.
• The company sold 200,000 shares of Agape ATP Corporation for $180,000 and all remaining 40,000 Agape shares for $127,697.
• The company is focusing on security token offerings (STOs) and expanding corporate finance services in Asia.

Negatives

• Greenpro Capital Corp. reported a net loss of $725,827 for the year ended December 31, 2024.
• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has an accumulated deficit of $37,264,379.
• The company made a full impairment of $82,000 for the investment in New Business Media Sdn. Bhd. due to NBMSBs failure to provide updated financial statements for evaluation.
• The company made a full impairment of $900 for the investment in Global Leaders Corporation due to its continuous losses and stockholders deficit.
• The company made a full impairment of $150 for the investment in Jocom Holdings Corp. due to its continuous losses and stockholders deficit.
• The company made a full impairment of $225 for the investment in Ata Global Inc. due to its failure to provide updated financial statements for evaluation.
• The company made a full impairment of $200 for the investment in catTHIS Holdings Corp. due to its continuous loss and stockholders deficit.
• The company made a full impairment of $600 for the investment in ACT Wealth Academy Inc. due to its failure to provide updated financial statements for evaluation.
• The company made a full impairment of $550 for the investment in Best2bid Technology Corp. due to its failure to provide updated financial statements for evaluation.

Risks

• The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company faces significant competition in the business advisory services market.
• The company's revenue is dependent on the prices of crypto assets and the volume of transactions conducted on its platform.
• The company is subject to the risks of international operations, including political and economic instability in Southeast Asia and East Asia.
• The company's shares may be delisted and prohibited from trading in the United States under the Holding Foreign Companies Accountable Act (HFCAA).
• The company may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law.
• The company's Hong Kong and China subsidiaries may be subject to a variety of laws and other obligations regarding cyber security and data protection.

Future Outlook

The company plans to focus on security token offerings (STOs), expand corporate finance services, develop ADAQ as an acceleration platform, and enhance wealth management portfolio development.

Industry Context

The company operates in a competitive industry, facing competition from established law firms, consulting service providers, and accounting firms. The company is focusing on a niche market of small and medium-sized businesses.

Legal Proceedings

• Millennium Fine Art Inc. (MFAI) filed a Complaint against the Company, alleging breach of contract, special damages and promissory estoppel, and seeks sixty-six million dollars ($66,000,000) in damages, specific performance by the Company according to the terms of the Contract, and MFAIs attorneys fees and costs.

Related Party Transactions

• Related party service revenue totaled $364,336 and $1,425,577 for the years ended December 31, 2024, and 2023, respectively.
• Related party digital revenue totaled $21,000 for the year ended December 31, 2024.
• Related party G&A expenses totaled $149,817 and $122,880 for the years ended December 31, 2024, and 2023, respectively.
• Related party other income was $47,635 and $47,609 for the year ended December 31, 2024, and 2023, respectively.
• Related party interest income was $5,073 for the year ended December 31, 2024.
• Gain on disposal of related party investments was $324,917 for the year ended December 31, 2024.
• Impairment of related party investments was $87,425 and $4,982,000 for the years ended December 31, 2024, and 2023, respectively.
• Loss on disposal of a related party investment was $100 for the year ended December 31, 2024.
• Amounts due from related parties were $954,184 and $750,860 as of December 31, 2024, and 2023, respectively.
• Amounts due to related parties were $57,497 and $389,274 as of December 31, 2024, and 2023, respectively.

Stakeholder Impact

• Shareholders face the risk of stock delisting and potential loss of investment.
• Employees may be affected by the company's financial instability.
• Customers may experience disruptions in service due to the company's financial challenges.
• Suppliers and creditors face the risk of non-payment due to the company's financial difficulties.

Next Steps

• The company will continue its focus on security token offering (STO).
• The company plans to further expand its corporate finance services business.
• The company intends to strengthen the development of ADAQ as an acceleration platform.
• The company looks forward to enhancing our strategic development in wealth management, fund management and asset management businesses.

Key Dates

Keywords

Greenpro Capital Corp, digital assets, security token offering, corporate finance, blockchain, financial results, Southeast Asia, Green-X Corp, financial statements, going concern, Asia, investment