Company Overview

Greenpro Capital Corp. (the “Company” or “Greenpro”) was incorporated in the State of Nevada on July 19, 2013. The company provides cross-border business solutions and accounting outsourcing services to small and medium-sized businesses located in Asia, with an initial focus on Hong Kong, China, and Malaysia. Greenpro provides a range of services as a package solution to its clients, which it believes can help clients reduce business costs and improve revenues.

In addition to its business solution services, Greenpro also operates a venture capital business through Greenpro Venture Capital Limited, an Anguilla corporation. This venture capital business has two main segments:

1. Establishing a business incubator for start-up and high-growth companies to support them during critical growth periods, which includes providing education and support services.

2. Investing in selected start-up and high-growth companies, primarily located in Southeast Asia and East Asia, which may generate significant returns for the company.

Another venture capital business segment focuses on the rental and sale of commercial properties.

One of Greenpro’s Labuan subsidiaries, Green-X Corp., was approved and compliant with the requirements of the Labuan Financial Services Authority in 2022 to establish a platform under Part IX of the Labuan Financial Services and Securities Act 2010. This platform allows security token issuers to offer their tokens for subscription and trading by investors through the Green-X digital asset exchange platform. The platform’s operations and related documents have been certified as Shariah-compliant.

Results of Operations

During the years ended December 31, 2024, and 2023, Greenpro principally operated in three regions: Hong Kong, China, and Malaysia. The company derived revenues from the provision of business services, digital platform services and trading of digital assets, and leasing or trading of commercial properties.

A summary of Greenpro’s revenues and cost of revenues is provided in the table below:

Comparison of the years ended December 31, 2024, and 2023:

Total Revenues Total revenue was $3,496,405 and $3,477,664 for the years ended December 31, 2024, and 2023, respectively. The increase was mainly due to the $327,802 in revenue generated from the company’s new digital platform and trading of digital assets business segment in 2024.

Service Business Revenue Revenue from the provision of business services was $3,091,903 and $3,379,596 for the years ended December 31, 2024, and 2023, respectively. This revenue was derived principally from business consulting, advisory, company secretarial, accounting, and financial analysis services. The company expects this segment to recover slightly as it explores new markets.

Digital Revenue Revenue from digital platforms and trading digital assets was $327,802 and $0 for the years ended December 31, 2024, and 2023, respectively. This new revenue stream was derived from the digital platform service ($195,881) and trading of digital assets ($131,921) in 2024.

Real Estate Business Rental revenue was $76,700 and $98,068 for the years ended December 31, 2024, and 2023, respectively. This revenue was derived from leasing properties in Hong Kong and Malaysia. The company expects its rental income to be stable going forward.

There was no revenue generated from the sale of real estate properties in 2024 or 2023. The company will continue to purchase and sell commercial properties as opportunities arise, so revenue and costs from property sales are expected to fluctuate.

Total Operating Costs and Expenses Total operating costs and expenses were $4,465,683 and $4,980,842 for the years ended December 31, 2024, and 2023, respectively. This includes cost of service revenue, cost of digital revenue, cost of rental revenue, and general and administrative (G&A) expenses.

The loss from operations decreased from $1,503,178 in 2023 to $969,278 in 2024, mainly due to an increase in gross profit from the digital business ($279,307) and a decrease in G&A expenses ($370,021).

Cost of Business Services Revenue The cost of revenue for the provision of business services was $355,120 and $534,965 for the years ended December 31, 2024, and 2023, respectively. This primarily consists of employee compensation, payroll benefits, company formation costs, and other professional fees directly related to the services rendered.

Cost of Digital Revenue The cost of revenue for the digital platform services and trading of digital assets was $48,495 and $0 for the years ended December 31, 2024, and 2023, respectively. This includes the cost of technical advisory and IT support for the blockchain-based services.

Cost of Rental Revenue The cost of rental revenue was $22,825 and $36,613 for the years ended December 31, 2024, and 2023, respectively. This includes government charges, repairs, maintenance, property management fees, insurance, depreciation, and other administrative costs. The decrease was mainly due to 40% of the real estate properties owned by the company’s subsidiary Forward Win International Limited being distributed to the noncontrolling interest in April 2024.

General and Administrative Expenses General and administrative (G&A) expenses were $4,039,243 and $4,409,264 for the years ended December 31, 2024, and 2023, respectively. The decrease of $370,021 was mainly due to a $494,696 reduction in the provision for credit losses, offset by an $83,170 increase in employee salaries and allowances. The company expects G&A expenses to increase slightly as it develops its digital platform and digital banking businesses.

Other Income or Expenses Net other income was $247,890 and $2,559,706 for the years ended December 31, 2024, and 2023, respectively. In 2024, this included gains on disposal of investments and real estate, offset by impairment charges. In 2023, the net other income was mainly due to the reversal of impairment charges on other investments and notes receivable.

Net Loss Attributable to Noncontrolling Interests The company recorded net losses attributable to noncontrolling interests of $10,543 and $23,886 for the years ended December 31, 2024, and 2023, respectively. This represents the share of net loss allocated to the 40% noncontrolling interest in the company’s subsidiary Forward Win International Limited, prior to the company acquiring the remaining 40% interest in April 2024.

Net Income (Loss) The company recorded a net loss of $725,827 for the year ended December 31, 2024, compared to net income of $1,049,699 for the year ended December 31, 2023. The 2023 net income was mainly due to the reversal of impairment charges that did not occur in 2024.

Off-Balance Sheet Arrangements The company has no significant off-balance sheet arrangements as of December 31, 2024.

Contractual Obligations The company’s contractual obligations as of December 31, 2024 include an operating lease for office space in Hong Kong and a finance lease for a vehicle in Malaysia.

Related Party Transactions Greenpro has various transactions with related parties, including service revenue, digital revenue, cost of service revenue, general and administrative expenses, other income, interest income, gains/losses on disposal of investments, and impairment of investments. The company also has amounts due to and from related parties on its balance sheet.

Liquidity and Capital Resources As of December 31, 2024, the company had $1,124,818 in cash, down from $2,223,197 at the end of 2023. The company believes it has sufficient cash to meet its anticipated working capital needs for the next 12 months. However, the company’s ability to continue as a going concern is dependent on improving profitability and obtaining additional financial support from shareholders.

The company used $1,360,454 and $1,594,718 in net cash from operating activities in 2024 and 2023, respectively. Net cash provided by investing activities was $601,277 in 2024, compared to net cash used of $94,640 in 2023. Net cash used in financing activities was $208,768 and $5,968 in 2024 and 2023, respectively.

Overall, Greenpro’s financial performance in 2024 showed some improvement compared to 2023, with a reduction in operating losses. However, the company continues to face challenges and uncertainty around its ability to achieve sustained profitability and positive cash flow. Successful execution of its digital platform and venture capital strategies will be critical to the company’s future success.