Intelligent Hotel Group Ltd. SEC 10-K Report

Intelligent Hotel Group Ltd., formerly known as YCQH Agricultural Technology Co., Ltd., has released its 2024 10-K report, detailing significant changes in its business operations and financial performance. The company, incorporated in Nevada in 2019, has transitioned from bio-carbon-based fertilizer trading to exploring new strategic directions, including potential acquisitions in the hotel, cinema, green energy, and automotive industries. This report highlights the company's financial and operational performance, strategic initiatives, and the challenges it faces as it seeks to realign its operations with long-term growth objectives.

Financial Highlights

• Total Revenue: $246,466, reflecting a significant decrease of 52% compared to $510,235 for the year ended December 31, 2023, primarily due to the company’s decision to shut down its online business since April 30, 2024.
• Gross Profit: $96,482, a decline from $440,316 in 2023, with the overall gross margin decreasing from 86% to 39%, indicating reduced pricing power and increased costs in a competitive e-commerce environment.
• Income/(Loss) from Operation Before Income Tax: $(47,081), compared to an operating income of $6,847 for the year ended December 31, 2023, primarily reflecting the substantial contraction across all former business segments.
• Net Income/(Loss): $(59,275), compared to a net income of $9,989 in 2023, highlighting the impact of decreased revenue and increased cost burdens.
• Net Loss Per Share, Basic and Diluted: $0.00, consistent with the previous year, reflecting the overall financial performance and loss incurred.

Business Highlights

• Company Overview: Intelligent Hotel Group Ltd. has ceased operations in its previous segments, including BCBF trading, online retail, and beauty products trading, and is actively seeking new business opportunities that align with long-term growth objectives.
• Revenue Segments: In 2024, the company generated revenue from online retailing, which accounted for 100% of total revenue, while the BCBF and beauty products segments contributed 0% due to the cessation of these operations.
• Geographical Performance: The company's operations are primarily based in China, with revenue generated from this region. The company is exploring opportunities in other industries within China, such as hotel management and private cinema operations.
• Future Outlook: The company is formulating a diversified development strategy to potentially enter new industries by the end of 2025. Agreements of intent have been reached with hotel management and cinema operators, though no formal contracts have been executed yet.
• Employee Structure: The company employs five individuals, with roles divided among management, sales, marketing, after-sales service, and accounting, finance, and internal operations.
• Strategic Dispositions: The company disposed of its subsidiary SCQC in April 2025 as part of a strategic plan to streamline operations and focus on new business activities.

Strategic Initiatives

• Strategic Initiatives: Intelligent Hotel Group Ltd. is actively exploring new strategic directions and evaluating acquisition and investment opportunities across several industries to realign its operations with long-term growth objectives. The company has ceased all activities in its historical business lines, including BCBF, online retail, and beauty trading sectors, to focus on these new strategic initiatives.
• Capital Management: The company did not engage in any equity repurchases during the fiscal year ended December 31, 2024. It has not paid any cash dividends since its inception and currently has no plans to do so, as the board intends to retain all earnings for business use. The company has a working capital deficit of $281,771 and relies on financial support from its controlling shareholder to maintain operations. Additionally, the company realized cash provided by financing activities amounting to $53,016, primarily consisting of advances from a director.
• Future Outlook: The company faces substantial doubt about its ability to continue as a going concern due to its net loss, accumulated deficit, and working capital deficit. However, it plans to improve profitability and acquire funding through public offerings. If public funding is insufficient, the company will rely on financial support from its controlling shareholder. The company is also involved in a legal dispute with Sichuan Aima, which remains unresolved and could impact future financial conditions.

Challenges and Risks

• Operational Challenges: The company faces challenges in executing its business plan due to the lack of a stable revenue-generating business and may require substantial capital to support due diligence, fund potential acquisitions, and cover ongoing expenses.
• Risk Factors: The company faces significant risks related to its ability to secure adequate capital. Without sufficient financing, the company may be forced to delay, modify, or abandon elements of its business plan, including potential acquisitions. High capital costs or unfavorable financing terms could adversely impact the company's financial condition and strategic flexibility. Additionally, global market and economic conditions, such as rising inflation, interest rate volatility, and geopolitical instability, may adversely affect the company's operational performance and financial results. These factors could reduce the availability of viable business opportunities and impact the company's ability to raise capital or execute strategic plans.
• Management’s Discussion and Analysis: The company reported a significant decrease in revenue for the year ended December 31, 2024, primarily due to the shutdown of its online business. The gross profit margin also declined significantly, reflecting reduced pricing power and increased costs in a competitive e-commerce environment. The company recorded an operating loss for the year, highlighting the financial challenges it faces. Management acknowledges the need for substantial capital to support due diligence efforts, fund potential acquisitions, and cover ongoing operating expenses. The company's ability to continue as a going concern is dependent on improving profitability and acquiring funding through public offerings or financial support from its controlling shareholder.
• Market Risk: The company is exposed to foreign currency exchange rate fluctuations, as most of its revenues and operating expenses are denominated in Renminbi. Existing and potential future restrictions on currency exchange may limit the company's ability to utilize revenues generated in Renminbi to fund business activities outside China. This exposure to foreign exchange risk could adversely affect the company's financial results.

SEC Filing: Intelligent Hotel Group Ltd. [ YCQH ] - 10-K - Jul. 17, 2025