```markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group reported unaudited H1 2025 results, showing a **4.5%** revenue increase to **RMB 516 million**, a turnaround to profit, and significant improvements in EBITDA and net profit margins Financial Performance Summary | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 516.0 | 493.8 | +4.5% | | Gross Profit | 131.5 | 135.6 | -3.0% | | EBITDA/(LBITDA) | 28.6 | (11.1) | N/A | | Profit/(Loss) for the Period | 2.5 | (43.6) | N/A | | Gross Margin | 25.5% | 27.5% | -2.0 percentage points | | EBITDA/(LBITDA) Ratio | 5.5% | (2.2%) | +7.7 percentage points | | Net Profit/(Loss) Margin | 0.5% | (8.8%) | +9.3 percentage points | | Return on Equity (LTM) | 1.2% | (21.7%) | +22.9 percentage points | | Basic Earnings/(Loss) Per Share | RMB 0.01 | (RMB 0.33) | N/A | [Condensed Consolidated Financial Information](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section presents the unaudited condensed consolidated financial statements for H1 2025, outlining the Group's financial performance and period-end financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2025, the Group's revenue grew to **RMB 516 million**, with operating activities turning from loss to a **RMB 2.5 million** profit, despite increased cost of sales and a slight decrease in gross profit Financial Data Table | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 515,996 | 493,797 | | Cost of Sales | (384,462) | (358,217) | | Gross Profit | 131,534 | 135,580 | | Operating Profit/(Loss) | 12,115 | (33,273) | | Profit/(Loss) Before Tax | 3,497 | (43,645) | | Profit/(Loss) and Total Comprehensive Profit/(Loss) for the Period | 2,524 | (43,645) | | Basic Earnings/(Loss) Per Share | 0.01 | (0.33) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets increased to **RMB 837 million** and total equity slightly grew, while net current liabilities improved but remained negative, indicating persistent liquidity pressure Financial Data Table | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 352,881 | 354,834 | | Current Assets | 484,249 | 439,007 | | Total Assets | 837,130 | 793,841 | | Total Equity | 217,043 | 214,519 | | Non-current Liabilities | 15,846 | 15,846 | | Current Liabilities | 604,241 | 563,476 | | Total Liabilities | 620,087 | 579,322 | | Net Current Liabilities | (119,992) | (124,469) | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides essential supplementary information, detailing the Group's background, financial statement preparation basis, accounting policy changes, financial risk management, segment information, and specific financial items [General Information](index=5&type=section&id=1%20General%20Information) Crayon Shin-chan Casual Food Group Co. Ltd. was incorporated in Bermuda, primarily producing and selling jelly, confectionery, beverages, and other snack foods, with its shares listed on the Hong Kong Stock Exchange Main Board - The Company was incorporated in Bermuda on May 4, **2004**, primarily engaged in the production and sale of jelly products, confectionery products, beverage products, and other snack foods[7](index=7&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=2%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared under IAS 34 on a going concern basis, despite current liabilities exceeding current assets, with the Board implementing measures to ensure continued operations - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard **34** 'Interim Financial Reporting'[8](index=8&type=chunk) - The Group recorded a net profit of approximately **RMB 2,524,000** as of June 30, **2025**, but its current liabilities exceeded its current assets by approximately **RMB 119,992,000**[8](index=8&type=chunk) - The Board believes that through bank borrowings, financial support from major shareholders, alternative external funding sources, cost control measures, and business restructuring plans, the Group will have sufficient working capital to continue as a going concern[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Changes in Accounting Policies](index=7&type=section&id=3%20Changes%20in%20Accounting%20Policies) This period's financial information first adopted new and revised IFRS accounting standards, primarily IAS 21 (Revised) on lack of exchangeability, with no significant impact on the Group's interim financial statements - The Group first applied International Accounting Standard **21** (Revised) 'Lack of Exchangeability'[16](index=16&type=chunk) - This amendment had no significant impact on the condensed consolidated interim financial information and annual consolidated financial statements[17](index=17&type=chunk) [Financial Risk Management](index=8&type=section&id=4%20Financial%20Risk%20Management) The Group faces market risks (including currency and interest risk), credit risk, and liquidity risk, with no significant changes in risk management since year-end - The Group is exposed to market risks (including currency risk and interest risk), credit risk, and liquidity risk[18](index=18&type=chunk) - There have been no significant changes in the risk management department or any risk management policies since the year-end[19](index=19&type=chunk) [Segment Information](index=8&type=section&id=5%20Segment%20Information) The Group manages and assesses performance across four operating segments: jelly, confectionery, beverage, and other snack foods, with all operations, assets, liabilities, and capital expenditures located in China [Operating Segments](index=8&type=section&id=5.1%20Operating%20Segments) The chief operating decision-maker evaluates operating segment performance based on product categories (jelly, confectionery, beverages, other snack foods), focusing on segment revenue and results - The Group is principally engaged in the production and sale of jelly products, confectionery products, beverage products, and other snack foods[20](index=20&type=chunk) - The chief operating decision-maker assesses operating segment performance by product category, including jelly products, confectionery products, beverage products, and other snack foods[21](index=21&type=chunk) [Geographical Information](index=9&type=section&id=5.2%20Geographical%20Information) All of the Group's operating activities are conducted in China, therefore no geographical information is presented - All of the Group's operating activities are conducted in China, thus no geographical information is presented[23](index=23&type=chunk) [Major Customer Information](index=9&type=section&id=5.3%20Major%20Customer%20Information) For the six months ended June 30, 2025, Customer A contributed over **10%** of the Group's revenue, reaching **RMB 80,679 thousand**, an increase from the prior year Financial Data Table | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | 80,679 | 70,653 | [Segment Results for the Six Months Ended June 30, 2025](index=10&type=section&id=5.4%20Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) In H1 2025, jelly products were the primary revenue source, contributing **RMB 471 million** with a gross profit of **RMB 122 million**, leading to total reportable segment results of **RMB 60.43 million** and a profit for the period of **RMB 2.524 million** Financial Data Table | Segment | Revenue (RMB thousand) | Cost of Sales (RMB thousand) | Gross Profit/(Loss) (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 470,686 | (348,643) | 122,043 | 56,057 | | Confectionery Products | 25,676 | (20,582) | 5,094 | 2,213 | | Beverage Products | 1,112 | (1,578) | (466) | (622) | | Other Snack Foods | 18,522 | (13,659) | 4,863 | 2,782 | | **Total Segments** | **515,996** | **(384,462)** | **131,534** | **60,430** | Financial Data Table | Reconciliation Item | Amount (RMB thousand) | | :--- | :--- | | Reportable Segment Results | 60,430 | | Corporate Income | 4,062 | | Corporate Expenses | (52,377) | | Operating Profit | 12,115 | | Profit Before Tax | 3,497 | | Profit for the Period | 2,524 | [Segment Results for the Six Months Ended June 30, 2024](index=12&type=section&id=5.5%20Segment%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202024) In H1 2024, jelly products were also the main revenue source, but confectionery product revenue exceeded H1 2025, with total reportable segment results of **RMB 14.945 million** and a loss for the period of **RMB 43.645 million** Financial Data Table | Segment | Revenue (RMB thousand) | Cost of Sales (RMB thousand) | Gross Profit (RMB thousand) | Reportable Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jelly Products | 429,157 | (309,758) | 119,399 | 13,604 | | Confectionery Products | 56,183 | (41,570) | 14,613 | 1,693 | | Beverage Products | 1,860 | (1,623) | 237 | (200) | | Other Snack Foods | 6,597 | (5,266) | 1,331 | (152) | | **Total Segments** | **493,797** | **(358,217)** | **135,580** | **14,945** | Financial Data Table | Reconciliation Item | Amount (RMB thousand) | | :--- | :--- | | Reportable Segment Results | 14,945 | | Corporate Income | 4,993 | | Corporate Expenses | (53,211) | | Operating Loss | (33,273) | | Loss Before Tax | (43,645) | | Loss for the Period | (43,645) | [Other Income](index=14&type=section&id=6%20Other%20Income) The Group's H1 2025 other income totaled **RMB 3.984 million**, a decrease from **RMB 4.831 million** in the prior year, mainly due to reduced rental and miscellaneous income, despite a significant increase in government grants Financial Data Table | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Rental Income | 1,291 | 1,825 | | Government Grants | 835 | 105 | | Miscellaneous Income | 2,418 | 2,994 | | Loss on Sale of Scraps | (560) | (93) | | **Total** | **3,984** | **4,831** | [Net Other Gains](index=14&type=section&id=7%20Net%20Other%20Gains) The Group's H1 2025 net other gains amounted to **RMB 78 thousand**, primarily from exchange gains, a decrease from **RMB 162 thousand** in the prior year Financial Data Table | Gain Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Exchange Gain | 78 | 162 | | **Total** | **78** | **162** | [Net Finance Costs](index=15&type=section&id=8%20Net%20Finance%20Costs) The Group's H1 2025 net finance costs were **RMB 8.618 million**, a decrease from **RMB 10.372 million** in the prior year, mainly due to reduced interest expense on bank borrowings Financial Data Table | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | (8,638) | (10,140) | | Total Finance Costs | (8,659) | (10,501) | | Interest Income from Bank Deposits | 41 | 129 | | **Net Finance Costs** | **(8,618)** | **(10,372)** | [Profit/(Loss) Before Tax](index=15&type=section&id=9%20Profit%2F%28Loss%29%20Before%20Tax) This section lists major expense items affecting profit/loss before tax, including cost of inventories sold, advertising and promotion expenses, staff costs, and depreciation, with a notable decrease in advertising and promotion expenses Financial Data Table | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 306,411 | 295,322 | | Advertising and Promotion Expenses | 27,873 | 59,510 | | Staff Costs (Salaries and Bonuses) | 55,997 | 60,071 | | Depreciation of Property, Plant and Equipment | 14,106 | 13,986 | | Net Provision for Expected Credit Losses | 1,143 | 6,911 | [Taxation](index=16&type=section&id=10%20Taxation) The Group incurred income tax expense of **RMB 973 thousand** in H1 2025, primarily from PRC corporate income tax, with no tax provision for Hong Kong, Bermuda, and BVI due to absence of assessable profits Financial Data Table | Taxation Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax - PRC Enterprise Income Tax | 973 | – | | **Total** | **973** | **–** | - PRC Enterprise Income Tax is provided at a rate of **25%**, while no tax provision is made for Hong Kong, Bermuda, and the British Virgin Islands due to the absence of assessable profits[41](index=41&type=chunk)[42](index=42&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=11%20Earnings%2F%28Loss%29%20Per%20Share) The Group's H1 2025 basic earnings per share were **RMB 0.01**, a significant improvement from a loss of **RMB 0.33** per share in the prior year, with diluted EPS being the same as basic EPS due to no potential ordinary shares Financial Data Table | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 2,524 | (43,645) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 218,416 | 132,898 | | Basic Earnings/(Loss) Per Share (RMB per share) | 0.01 | (0.33) | - There were no potential ordinary shares in issue for the six months ended June 30, **2025** and **2024**, thus diluted earnings/(loss) per share are the same as basic earnings/(loss) per share[45](index=45&type=chunk) [Dividends](index=17&type=section&id=12%20Dividends) The Company's Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, **2025** (**2024**: nil)[46](index=46&type=chunk) [Trade Receivables](index=18&type=section&id=13%20Trade%20Receivables) As of June 30, 2025, total trade receivables were **RMB 163 million**, a slight decrease from year-end 2024, with a general credit period of **180 days** and most amounts due within **30 days** Financial Data Table | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Less than 30 days | 156,605 | 155,418 | | 31 to 90 days | 3,752 | 6,410 | | 91 to 180 days | 2,371 | 3,661 | | **Total** | **162,728** | **165,489** | - The Group's revenue credit period is generally **180 days**[47](index=47&type=chunk) - The provision for expected credit losses on trade receivables is **RMB 56,026,000**[47](index=47&type=chunk) [Trade and Other Payables](index=19&type=section&id=14%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to **RMB 145 million**, mainly due to higher trade payables and bills payable, with supplier credit periods generally ranging from **30 to 60 days** Financial Data Table | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 69,321 | 39,560 | | Bills Payable | 10,000 | – | | Accrued Expenses | 17,509 | 13,751 | | Loan from a Director | 3,853 | – | | Other Payables and Accruals | 40,975 | 51,564 | | **Total** | **145,178** | **107,076** | - The credit period granted by suppliers generally ranges from **30 to 60 days**[49](index=49&type=chunk) - The Company has drawn **RMB 3,853,000** from a loan facility with Executive Director Mr. Zheng Yulong, bearing a fixed annual interest rate of **2%**[48](index=48&type=chunk) [Bank Borrowings](index=20&type=section&id=15%20Bank%20Borrowings) As of June 30, 2025, the Group's total bank borrowings were **RMB 458 million**, all secured and repayable on demand or within one year Financial Data Table | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured Bank Borrowings | 458,090 | 456,400 | | Unsecured Bank Borrowings | – | – | | **Total Bank Borrowings** | **458,090** | **456,400** | | Carrying amount of bank borrowings repayable: On demand or within one year | 458,090 | 456,400 | [Events After the Reporting Period](index=20&type=section&id=16%20Events

Group 1 - The article discusses the transformation of traditional snack brands in Fujian, China, as they adapt to the challenges posed by e-commerce and changing consumer preferences [3][5][6] - It highlights the shift from traditional distribution channels to online platforms, particularly the role of Pinduoduo in enabling these brands to reach new consumer segments [10][14][19] - The article emphasizes the importance of data-driven decision-making in product development, allowing brands to quickly respond to consumer preferences and market trends [10][11][18] Group 2 - The case studies of brands like La Pi Xiu and You Chen illustrate how these companies have successfully leveraged Pinduoduo's support policies, such as "hundred billion subsidies" and "thousand billion support," to enhance their market presence [11][14][18] - The article notes that the collaboration with Pinduoduo has allowed these brands to reduce operational costs and improve their product offerings, leading to significant sales growth [11][19] - It concludes that the combination of established brand heritage and new e-commerce strategies is crucial for the revival and growth of these traditional snack brands in a competitive market [19]

Group 1 - The company Crayon Shin-chan Foods (01262.HK) announced that it will hold a board meeting on August 29, 2025 [1] - The meeting will review and approve the group's interim results for the six months ending June 30, 2025, and discuss the proposal for an interim dividend distribution, if any [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，且表明不會就因本公佈全部 或任何部份內容或因倚賴該等內容而引致之任何損失承擔任何責任。 董事局會議召開通告 蠟筆小新休閒食品集團有限公司（「本公司」）之董事局（「董事局」）謹此宣佈， 本公司將於2025年8月29日（星期五），舉行董事局會議，藉以（其中包括），(i)批 准本公司及其附屬公司截至2025年6月30日止六個月之中期業績及其公告；及 (ii)考慮派發中期股息之建議（如有）。 承董事局命 蠟筆小新休閒食品集團有限公司 主席 LABIXIAOXIN SNACKS GROUP LIMITED 鄭育煥 香港，2025年8月18日 蠟筆小新休閒食品集團有限公 司 （於百慕達註冊成立的有限公司） （股份代號：1262） 於本通告日期，董事局包括八位成員，鄭育龍先生、鄭育雙先生、鄭育煥先生 及吳瓊瑤女士為執行董事；李鴻江先生為非執行董事；及李標先生、鍾有棠先 生及蘇清棟先生， 太平紳士 為獨立非執行董事。 ...

Group 1 - The company expects to achieve a net profit of approximately RMB 2 million for the six months ending June 30, 2025, compared to a net loss of RMB 43.6 million for the same period in 2024 [1] - The increase in net profit is attributed to advertising and promotional expenses incurred during the six months ending June 30, 2025, as well as a reduction in expected credit loss provisions compared to the same period in 2024 [1]

蜡笔小新食品(01262)发布公告，预期截至2025年6月30日止6个月本集团将取得除税后溢利约人民币200 万元，而2024年同期则为除税后亏损人民币4360万元。有关除税后溢利增加归因于截至2025年6月30日 止6个月所产生的广告及推广开支以及预期信贷亏损拨备较2024年同期为减少。 ...

格隆汇8月4日丨蜡笔小新食品(01262.HK)发布公告，预期截至2025年6月30日止6个月集团将录得除税后 溢利约人民币200万元，而2024年同期则为除税后亏损人民币4360万元。有关除税后溢利增加归因于截 至2025年6月30日止6个月所产生的广告及推广开支以及预期信贷亏损拨备较2024年同期为减少。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，且表明不會就因本公佈全部 或任何部份內容或因倚賴該等內容而引致之任何損失承擔任何責任。 LABIXIAOXIN SNACKS GROUP LIMITED 蠟筆小新休閒食品集團有限公 司 （於百慕達註冊成立的有限公司） 正面盈利預告 蠟筆小新休閒食品集團有限公司 主席 鄭育煥 （股份代號：1262） 本公佈乃由蠟筆小新休閒食品集團有限公司（「本公司」，連同其附屬公司統稱 「本集團」）根據香港法例第571章證券及期貨條例第XIVA部及香港聯合交易 所有限公司證券上市規則第13.09條而作出。 本公司董事局（「董事局」）謹此知會本公司股東（「股東」）及潛在投資者，根 據董事局現時可得資料及對本集團未經審核管理賬目的初步審閱，預期截至 2025年6月30日止6個月本集團將錄得除稅後溢利約人民幣200萬元，而2024年 同期則為除稅後虧損人民幣4,360萬元。有關除稅後溢利增加歸因於截至2025 年6月30日止6個月所產生的廣告及推廣開支以及預期信貸虧損撥備較2024年 同期為減少。 1 本公司尚未落實本集團截 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 蠟筆小新休閒食品集團有限公司 (於百慕達註冊成立的有限公司) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01262 | 說明 | 蠟筆小新食品 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 USD | | 0.001 | USD | | 500,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 500,000,000 USD | | 0.001 | USD | | 500,000 | 本月底法定/註冊股 ...

Financial Performance - The company reported revenue of RMB 866.7 million for the year ending December 31, 2024, representing a 13.4% increase compared to RMB 764.4 million in 2023[12]. - The gross profit for 2024 was RMB 234.6 million, compared to RMB 218.9 million in 2023, indicating a recovery in profitability[10]. - The company recorded a loss before tax of RMB 93.5 million for 2024, an improvement from a loss of RMB 104.8 million in 2023[10]. - The net loss for the year ended December 31, 2024, was RMB 93.5 million, a decrease from a net loss of RMB 104.8 million for the year ended December 31, 2023, primarily due to increased sales through convenience stores and e-commerce channels[17]. - The group recorded continuous revenue growth for four consecutive years leading up to December 31, 2024, indicating a recovery in consumer demand for leisure food products post-COVID-19[47]. - The company reported a basic and diluted loss per share of RMB 0.53 for 2024, compared to RMB 0.79 in 2023, reflecting a reduction in loss per share[194]. Revenue Growth Drivers - Sales of jelly products, confectionery, and other snacks increased by 14.1%, 8.2%, and 54.6% respectively, contributing to overall revenue growth[12]. - The group's revenue for the year ended December 31, 2024, increased by approximately 13.4% to RMB 866.7 million, driven by sales growth in jelly products, confectionery, and other snacks[16]. - Revenue from jelly products increased by approximately 14.1% to RMB 759.2 million for the year ended December 31, 2024[19]. - Revenue from other snacks increased by approximately 54.6% to RMB 12.5 million, driven by strong sales through convenience stores and e-commerce channels[22]. Asset and Liability Management - Total assets decreased to RMB 793.8 million in 2024 from RMB 810.9 million in 2023, reflecting a continued decline in asset values[11]. - Total equity fell to RMB 214.5 million in 2024 from RMB 222.6 million in 2023, indicating a decrease in shareholder value[11]. - The company’s total liabilities were RMB 579.3 million in 2024, slightly down from RMB 588.3 million in 2023[11]. - Current liabilities exceeded current assets by approximately RMB 124,469,000 as of December 31, 2024[179]. Operational Efficiency - Operating loss decreased to RMB 73,259,000 in 2024 from RMB 82,058,000 in 2023, indicating improved operational efficiency[194]. - Trade receivables decreased significantly to RMB 165,489,000 in 2024 from RMB 238,741,000 in 2023, indicating improved collection efforts[196]. - The number of distributors decreased by 40.3% to 435 as of December 31, 2024, due to a strict evaluation of sales performance and financial status of distributors[18]. Sales and Marketing Strategies - The company has expanded new sales channels, including sales through major snack chain convenience stores and e-commerce on platforms like Douyin, positively impacting sales recovery post-COVID-19[12]. - The management is optimistic about the recovery of consumer sentiment in China, which is expected to further boost sales in the upcoming periods[12]. - The company aims to continue leveraging new sales channels to enhance market presence and drive future growth[12]. Cost Management - Sales and distribution expenses increased by approximately 53.5% to RMB 168.6 million, attributed to higher logistics service frequency and increased advertising costs in e-commerce channels[24]. - Administrative expenses rose by approximately 16.3% to RMB 115.3 million, mainly due to the expansion of the snack chain convenience store operations team and inflation-related cost increases[25]. Capital Expenditures - Capital expenditures for the year ended December 31, 2024, amounted to RMB 40.7 million, mainly for upgrading production lines at various manufacturing plants[17]. - Capital expenditures for the year ended December 31, 2024, amounted to RMB 40.7 million, primarily for upgrading production lines[30]. Corporate Governance - The company has adhered to all provisions of the Corporate Governance Code for the year ending December 31, 2024, with no deviations reported[68]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[73]. - The roles of the Chairman and the CEO are held by different individuals to maintain independence and balanced judgment[76]. - The company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[75]. Risk Management - The company has established a risk management framework to identify, assess, and manage significant risks, with senior management conducting annual risk assessments[107]. - The audit committee reviews the effectiveness of the risk management and internal control systems at least once a year, covering all major control measures[107]. - The company acknowledges operational risks due to internal processes and external events, with ongoing assessments to manage these risks[51]. Employee and Gender Diversity - As of December 31, 2024, the group had approximately 860 employees, a decrease from about 1,200 employees in 2023, with total salary expenses amounting to RMB 113.7 million for the year[44]. - The company has a gender diversity ratio of 52.7% male and 47.3% female among its total employees, including senior management[96]. - The company continues to promote gender diversity through recruitment and development opportunities for female employees[96]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to strengthen investor relations and enhance understanding of business performance and strategy[113]. - The annual general meeting for the year ending December 31, 2024, is scheduled for June 19, 2025[113]. - The company has adopted a dividend policy aimed at allowing shareholders to participate in profits while retaining sufficient reserves for future growth[120].