Group 1 - The company has established a Real World Asset Tokenization Division to advance property asset tokenization efforts [1] - As of December 31, 2024, the company's investment property value is approximately HKD 31.51 billion [1] - Initial feasibility studies are being conducted on the Coolpad Building in Nanshan, Shenzhen, and the Coolpad Technology Ecological Park in Dongguan [1] Group 2 - If the pilot projects are successful, the company plans to expand its service model to assist more enterprises in exploring asset tokenization [1] - The company aims to promote the large-scale application of RWA technology in related industries [1]

Summary of Key Points Core Viewpoint - Multiple companies conducted share buybacks on July 17, 2025, with notable amounts and quantities involved, indicating a trend of companies returning capital to shareholders [1]. Group 1: Buyback Details - The largest buyback was executed by Green Bamboo Bio-B (02480), with a total of 316,600 shares repurchased for an amount of 6.8407 million [2]. - China Eastern Airlines (00670) repurchased 2.2 million shares for 6.4249 million, representing 1.825% of its total share capital [2]. - CIMC (02039) bought back 656,200 shares for 4.5029 million, accounting for 0.240% of its total share capital [2]. Group 2: Other Notable Buybacks - Mengniu Dairy (02319) repurchased 200,000 shares for 3.3682 million, which is 0.116% of its total share capital [2]. - China Xuyang Group (01907) bought back 1.04 million shares for 2.6279 million, representing 0.971% of its total share capital [2]. - Miniso (09896) repurchased 57,400 shares for 1.9974 million, which is 0.210% of its total share capital [2]. Group 3: Additional Companies - Other companies such as IGG (00799) and HYPEBEAST (00150) also participated in buybacks, with IGG repurchasing 246,000 shares for 1.0630 million and HYPEBEAST repurchasing 3,001,600 shares for 469,300 [2]. - The buyback activities reflect a broader strategy among these companies to enhance shareholder value and confidence in their financial health [1].

Core Viewpoint - Coolpad Group has announced a deep strategic partnership with Yingmu Technology, focusing on key technologies such as AI model lightweighting, virtual-physical interaction algorithms, multi-modal perception integration, and computational collaboration between AR devices and smartphones [1][3]. Group 1: Strategic Collaboration - The partnership will establish an "AI+AR Fusion Innovation Working Group" to accelerate the evolution of smart terminal forms [1]. - Coolpad will fully open its global online e-commerce platform, offline retail network, and operator resources to assist Yingmu Technology in market expansion [2]. - Joint global brand marketing activities are planned to create a significant presence for AI×AR smart glasses [2]. Group 2: Company Profiles - Coolpad Group is a well-known smart terminal manufacturer in China, actively expanding into the 5G and AIoT ecosystems [3]. - Yingmu Technology specializes in the development of AR smart glasses, possessing technological advantages in virtual-physical integration and human-computer interaction [3]. Group 3: Product Launches - Yingmu Technology is set to launch two AR glasses products, INMO GO 2 and INMO AIR 3, in November 2024, focusing on translation and light office scenarios [4]. - INMO GO 2 is the world's first AR glasses supporting streaming simultaneous interpretation, capable of online translation in 40 languages and offline voice recognition [5]. - INMO AIR 3 is the world's first 1080P all-in-one AR glasses, featuring a Sony 0.44-inch Micro OLED screen with a resolution of 1920×1080 [5].

Company Overview - Coolpad Group Limited, listed on the Hong Kong main board with stock code 02369.HK, was founded in 1993 and relies on strong independent R&D capabilities and a global layout to lead industry innovation in the digital age, providing consumers with continuously upgraded products and ecosystem services [2]. Financial Performance - As of December 31, 2024, Coolpad Group reported total operating revenue of 462 million yuan, representing a year-on-year increase of 62.46% [1]. - The company recorded a net profit attributable to shareholders of -234 million yuan, a year-on-year decrease of 14.13% [1]. - The gross profit margin stood at 14.48%, while the debt-to-asset ratio was 59.24% [1]. Market Performance - On June 26, the Hang Seng Index fell by 0.61%, closing at 24,325.4 points [1]. - Coolpad Group's stock price closed at 0.77 HKD per share, marking a 35.09% increase, with a trading volume of 352,400 shares and a turnover of 258,300 HKD, showing a volatility of 38.6% [1]. Valuation Metrics - Currently, there are no institutional investment ratings for Coolpad Group [1]. - The average price-to-earnings (P/E) ratio for the information technology equipment industry is 47.36 times, with a median of 3.22 times [1]. - Coolpad Group's P/E ratio is -0.93 times, ranking 57th in the industry, compared to other companies such as Changhong Jiahua (3.22 times), SIS INT'L (3.49 times), and others [1].

Summary of Key Points Core Viewpoint - On June 12, 24 Hong Kong-listed companies conducted share buybacks totaling 9.0657 million shares, with a total buyback amount of 570 million HKD, indicating a strong trend in share repurchase activity among these companies [1][2]. Group 1: Company Buyback Details - Tencent Holdings repurchased 975,000 shares for a total of 500 million HKD, with a highest price of 518.000 HKD and a lowest price of 508.000 HKD, bringing its total buyback amount for the year to 30.535 billion HKD [1][2]. - AIA Group repurchased 650,000 shares for 44.9605 million HKD, with a highest price of 69.600 HKD and a lowest price of 68.750 HKD, accumulating a total buyback amount of 12.627 billion HKD for the year [1][2]. - J&T Express-W bought back 1.15 million shares for 7.765 million HKD, with a highest price of 6.780 HKD and a lowest price of 6.690 HKD, totaling 269.17 million HKD in buybacks for the year [1][2]. Group 2: Buyback Volume Rankings - The highest number of shares repurchased on June 12 was by Zhou Hei Ya, which bought back 1.621 million shares, followed by China Xuyang Group with 1.322 million shares and J&T Express-W with 1.15 million shares [1][2]. - In terms of buyback amounts, Tencent Holdings led with 500 million HKD, followed by AIA Group with 44.9605 million HKD, and J&T Express-W also featured prominently [1][2].

Financial Performance - For the year ended December 31, 2024, the company's revenue was HKD 499,332,000, representing a 62.3% increase from HKD 307,363,000 in 2023[11] - The company reported a loss before tax of HKD 250,514,000 for 2024, compared to a loss of HKD 234,015,000 in 2023[11] - The company's net asset value decreased to HKD 1,799,933,000 in 2024 from HKD 2,091,674,000 in 2023[11] - The group reported a total revenue of approximately HKD 499.33 million for the year ended December 31, 2024, representing a 62.5% increase from HKD 307.36 million in 2023[24] - The gross profit for the year was approximately HKD 72.32 million, with a gross margin of 14.48%, down from 34.95% in 2023, primarily due to low-margin hardware products[26] - The company recorded a pre-tax loss of approximately HKD 250.51 million for the year, compared to a loss of approximately HKD 234.02 million for the year ended December 31, 2023[36] - The company recorded an income tax expense of approximately HKD 1.64 million for the year, compared to an income tax credit of approximately HKD 13.02 million for the previous year[36] - The company recorded a net loss attributable to the company's owners for the fiscal year of HKD (252,158,000), compared to HKD (220,931,000) in the previous year, indicating a 14.1% increase in losses[123] - The group reported a loss of HKD 252,158,000 for the year ended December 31, 2024[188] Product Development and Market Expansion - The company launched the Coolpad Y70Lite and the Daguang 3 series smartphones in collaboration with China Mobile, with the Daguang 3 featuring naked-eye 3D technology[16] - The company expanded its product line to include over ten categories such as cloud tablets, smart wearables, and smart health devices in 2024[17] - The company has established partnerships with over ten cross-border platforms, including SHEIN, TikTok, and AliExpress, to enhance its market reach[16] - The company is focusing on expanding its product line to include smart wearables, smart education, smart home, security, and health care, integrating AI, IoT, and cloud computing technologies[52] - The company plans to enhance its smartphone product line by integrating AI technology and optimizing user experience, aiming for a comprehensive transformation into a diversified ecosystem[52] - The company has completed the deep integration with the AI model "DeepSeek," enhancing product intelligence and user experience, particularly in emerging markets[53] Digital Currency and Cryptocurrency Business - The company is actively exploring opportunities in the Web 3.0 digital currency business starting from the second half of 2023[4] - Revenue from cryptocurrency business surged to HKD 97.68 million, a significant increase of 1,043.8% compared to HKD 8.54 million in the previous year[24] - The group plans to acquire a cryptocurrency mining hosting service company by 2025 to enhance its digital currency operations and achieve vertical integration[21] - The company has deployed servers in North America with an effective computing power of 1,504,800 TH/s, accumulating approximately 187.32 BTC by the end of 2024[18] - The company intends to pursue upstream acquisitions in the digital currency sector in 2025, targeting companies that provide cryptocurrency mining hosting services[55] Operational Efficiency and Cost Management - The sales and distribution expenses decreased to approximately HKD 30.17 million, a reduction of 15.5% from HKD 35.70 million in the previous year[27] - Administrative and other operating expenses increased by 9.7% to approximately HKD 298.84 million, but as a percentage of total revenue, it decreased from 88.89% in 2023 to 59.85% in 2024[28] - Operating expenses increased by 9.37% to approximately HKD 298.84 million, while the percentage of operating expenses to total revenue decreased from 88.89% to 59.85%[35] Corporate Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[60] - The company held four board meetings during the year, but did not hold an annual general meeting due to delays in the annual performance review[68] - The chairman and CEO roles are currently held by Mr. Chen Jia Jun, with the board believing this structure does not harm the balance of power between the board and management[63] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring they provide unbiased judgment on company matters[66] - The company has established three committees: the nomination committee, the remuneration committee, and the audit committee, each with specific responsibilities[71] - The company has mechanisms in place for internal controls and checks to ensure clear responsibilities between the board and management[59] - The remuneration committee evaluated the performance and compensation of directors and senior management, holding two meetings with full attendance[72] - The audit committee conducted three meetings, reviewing the company's financial performance and internal control systems, with all members present[76] - The nomination committee held two meetings, recommending the reappointment of directors for the upcoming annual general meeting[77] Shareholder Communication and Dividend Policy - The company emphasizes the importance of effective communication with shareholders and provides information through its website and the stock exchange[95] - The company maintains a stable and sustainable dividend policy, considering current business conditions, future income, and financial status[97] - The company does not recommend the payment of any final dividend for the fiscal year, considering its operational needs[120] - The company has not made any changes to its articles of association during the year[101] Legal and Compliance Matters - The company faced civil lawsuits from suppliers demanding repayment of overdue accounts totaling RMB 4,368,000 (approximately HKD 4,648,000)[33] - There were no legal proceedings related to corruption against the company or its employees during the year[99] - The company has established a whistleblowing policy to maintain high standards of integrity and ethics, allowing employees and stakeholders to report misconduct confidentially[100] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, particularly those affecting its operations in mainland China, Hong Kong, and the United States[140] Employee and Workforce Management - Employee costs for the year amounted to approximately HKD 105.35 million, an increase from HKD 97.33 million in 2023[178] - The group had 225 employees as of December 31, 2024, down from 299 employees in 2023[178] Related Party Transactions and Shareholder Structure - The largest shareholder, Mr. Chen Jiajun, holds 3,131,355,500 shares, representing approximately 19.12% of the issued share capital[165] - The company has confirmed that all related party transactions comply with the pricing principles and have been approved by the board[162] - The independent auditor has issued an unqualified opinion on the company's related party transactions, confirming adherence to the relevant agreements[162] Risk Management - The company has identified key risks including profit risk, supply chain management risk, and cost growth risk, which may impact its financial condition and development prospects[117] - The board is responsible for the risk management and internal control systems, which are designed to manage foreign exchange risks and provide reasonable assurance against material misstatements or losses[84] Audit and Financial Reporting - The group’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of its financial position[188] - The independent auditor's report highlighted significant uncertainties regarding the group's ability to continue as a going concern[188] - The audit committee consists of three independent non-executive directors who reviewed the group's annual performance[170]

Group 1: Financial Performance - The company reported a revenue of HKD 499 million for the year ending December 31, 2024, representing a year-on-year increase of 62.46% [1] - The loss attributable to shareholders was HKD 252 million, which widened by 14.13% compared to the previous year [1] - The loss per share was HKD 1.54 [1] Group 2: Product Development and Partnerships - In 2024, the company collaborated with China Mobile to launch the Coolpad Y70Lite and the Daguang 3 series smartphones, with the Daguang 3 series featuring naked-eye 3D technology [1] - The company co-founded the Naked-eye 3D Industry Alliance and the Terminal Intelligent Body Alliance with China Mobile to promote the development and market application of naked-eye 3D technology [1] - New smartphone models such as Cool50 and Cool60 were introduced on e-commerce platforms [1] Group 3: International Expansion - The company experienced rapid expansion in overseas markets in 2024, focusing on high-growth global markets and covering mid-to-low price segments [2] - The company successfully entered over 20 countries or regions, including the Middle East, Eastern Europe, Asia, and Latin America [2] - The company developed distribution channels through offline agents and expanded its presence on over ten cross-border e-commerce platforms, including SHEIN, TIKTOK, and Lazada [2] Group 4: Product Ecosystem and Diversification - The company is committed to diversifying its ecosystem products, with a product line that includes cloud tablets, mobile accessories, smart wearables, health monitoring devices, smart security products, and more [2] - The company offers a wide range of over ten product categories to provide consumers with diverse choices [2] Group 5: Research and Development - The company has a strong technical foundation with significant technology accumulation and patent authorizations [3] - In 2024, the company focused on differentiated products, emphasizing the application of AI and 3D technology in its offerings [3] - The company actively supports the OpenHarmony community, contributing over 400,000 lines of core code and integrating OpenHarmony advantages into its COOLOS system for improved user experience [3]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 499,332,000, representing a 62.46% increase from HKD 307,363,000 in 2023[4] - The company reported a loss before tax of HKD 250,514,000 for 2024, which is a 7.05% increase compared to a loss of HKD 234,015,000 in 2023[4] - Loss attributable to owners of the company for the year was HKD 252,158,000, reflecting a 14.13% increase from HKD 220,931,000 in the previous year[4] - The company reported a comprehensive loss of HKD 301,304,000 for the year, compared to HKD 239,450,000 in 2023, indicating a worsening overall financial performance[6] - The group recorded a net loss of HKD 252 million for the year ending December 31, 2024, with a net current liability of HKD 657 million[11] - The group reported a pre-tax loss of HKD 85,090,000 for 2024, compared to a pre-tax loss of HKD 14,646,000 in 2023, indicating a significant increase in losses[38] - The company reported a total liability of HKD 2,615,813,000, up from HKD 2,344,279,000 in the previous year[30] - The group recorded a pre-tax loss of approximately HKD 250.51 million for the year, compared to a loss of HKD 234.02 million in the previous year[68] Revenue Breakdown - The mobile phone segment generated revenue of HKD 311,803,000, up 49.7% from HKD 208,432,000 in the previous year[34] - Cryptocurrency business revenue surged to HKD 97,684,000, compared to HKD 8,539,000 in 2023, marking an increase of 1,044.5%[34] - Rental income for the year was HKD 89.8 million, slightly down from HKD 90.4 million in 2023[12] - Revenue from government grants and subsidies increased to HKD 20,344,000 in 2024 from HKD 2,699,000 in 2023, reflecting a growth of approximately 653%[37] Assets and Liabilities - Total non-current assets as of December 31, 2024, amounted to HKD 3,969,875,000, slightly down from HKD 3,992,460,000 in 2023[7] - Current assets totaled HKD 445,871,000, a marginal increase from HKD 443,493,000 in the previous year[7] - The company’s total liabilities decreased from HKD 1,553,821,000 in 2023 to HKD 1,103,367,000 in 2024, indicating improved financial stability[7] - The total assets as of December 31, 2024, amounted to HKD 4,415,746,000, a slight decrease from HKD 4,435,953,000 in 2023[30] - The group’s net asset value decreased to HKD 1,799,933 thousand in 2024 from HKD 2,091,674 thousand in 2023[8] Cost and Expenses - Gross profit for the year was HKD 72,319,000, down from HKD 107,416,000 in 2023, indicating a decline in gross margin[5] - The cost of sales increased to HKD 337,587,000 in 2024, up from HKD 188,699,000 in 2023, representing an increase of about 79%[38] - The company experienced a significant increase in financing costs, rising from HKD 8,004,000 in 2023 to HKD 40,803,000 in 2024[5] - The group’s employee benefit expenses, including director remuneration, increased to HKD 105,345,000 in 2024 from HKD 97,330,000 in 2023, reflecting an increase of about 8%[38] - Administrative and other operating expenses increased by 9.37% to approximately HKD 298.84 million, while the percentage of these expenses to total revenue decreased from 88.89% to 59.85%[59] Cash Flow and Liquidity - As of December 31, 2024, the group had cash and cash equivalents of HKD 65 million, raising doubts about its ability to continue as a going concern[11] - The cash and cash equivalents at the end of the reporting period amount to HKD 65,145,000, an increase from HKD 63,547,000 in 2023, showing a growth of 2.5%[52] - The total trade receivables increased to HKD 97,209,000 in 2024, compared to HKD 70,422,000 in 2023, which is an increase of about 38%[44] Strategic Initiatives - The group is actively seeking opportunities in the Web 3.0 digital currency business starting from the second half of 2023[9] - The group is reassessing its business strategy in light of potential opportunities from the fifth-generation wireless system market[16] - The group is considering measures to enhance control over production costs and expenses to achieve profitability and positive cash flow[16] - The group intends to pursue upstream acquisitions in the digital currency sector in 2025, targeting companies involved in cryptocurrency mining and custody services to enhance operational efficiency and reduce costs[90] Market and Product Development - The company launched the Coolpad Y70 Lite and the Daguang 3 series smartphones in collaboration with China Mobile, with the Daguang 3 series supporting naked-eye 3D technology[79] - The company focuses on differentiated products, emphasizing the application of AI and 3D technology, and has launched multiple smartphones supporting naked-eye 3D functionality[82] - The group intends to expand its product line to include smart wearables, smart education, smart home, security, and health sectors, leveraging AI, IoT, and cloud computing technologies[86] Governance and Compliance - The company has not held an annual general meeting due to the delay in completing the annual performance review for the year ending December 31, 2023[107] - The chairman and CEO roles are currently held by the same individual, which the board believes does not impair the balance of rights and powers between the board and management[105] - The group has adopted a securities trading and conduct code in compliance with the listing rules[97]

Revenue Performance - Total revenue for the six months ended June 30, 2024, was HKD 252.3 million, an increase of 47.1% compared to HKD 171.5 million for the same period in 2023[7]. - The revenue from mobile phone sales and related accessories was HKD 155.1 million, accounting for 61.5% of total revenue, up from HKD 109.5 million or 63.9% in the previous year[13]. - Revenue from cryptocurrency business was HKD 41.2 million, which was not present in the same period last year[13]. - The total rental income for the period was HKD 43.4 million, contributing 17.2% to total revenue, down from HKD 48.5 million or 28.3% in the previous year[13]. - The group recorded a total of HKD 289.4 million in segment revenue for the six months ended June 30, 2024[130]. - The cryptocurrency segment generated revenue of HKD 41.2 million, while the mobile phone segment generated HKD 167.6 million, and property investment contributed HKD 43.4 million, totaling HKD 252.3 million in external revenue[130]. Profit and Loss - The company reported a pre-tax loss of HKD 90.6 million, a decrease of 25.4% from a loss of HKD 121.4 million in the prior year[7]. - Net loss attributable to shareholders was HKD 90.2 million, down 23.0% from HKD 117.1 million in the previous year[7]. - Basic and diluted loss per share improved to HKD 0.55, a 36.0% reduction from HKD 0.86 in the same period last year[7]. - The overall gross profit for the reporting period was HKD 53.5 million, down from HKD 67.8 million in the same period of 2023, resulting in a gross margin of 21.2% compared to 39.5%[14]. - The total comprehensive loss for the period was HKD 133,988,000, a decrease of 21.4% from HKD 170,483,000 in the prior year[104]. - The company reported a net loss of HKD 133,988 thousand for the six months ended June 30, 2024, compared to a net loss of HKD 170,500 thousand for the same period in 2023, showing an improvement in loss by about 21.4%[110]. Assets and Liabilities - Non-current assets as of June 30, 2024, were HKD 3,918.7 million, slightly down from HKD 3,992.5 million at the end of 2023[8]. - Current assets increased to HKD 652.4 million from HKD 443.5 million at the end of 2023[8]. - The company's total liabilities increased to HKD 1,390,859 thousand as of June 30, 2024, compared to HKD 790,458 thousand at the end of 2023, reflecting a rise of approximately 76%[108]. - The company's net asset value decreased to HKD 1,962,402 thousand from HKD 2,091,674 thousand, indicating a decline of about 6.2%[108]. - The company reported cash and cash equivalents of HKD 138,348,000, an increase from HKD 63,547,000 at the end of 2023[106]. - The company’s current liabilities totaled HKD 1,217,862,000, down from HKD 1,553,821,000 at the end of 2023[106]. Financing and Investments - The company raised new bank and other borrowings amounting to HKD 630,719 thousand during the first half of 2024, compared to HKD 221,488 thousand in the same period of 2023, indicating a significant increase in financing activities[115]. - The group secured bank financing of RMB 430 million (approximately HKD 462 million) during the period, with unused bank credit totaling RMB 357 million (approximately HKD 384 million) as of June 30, 2024[119]. - The company has not made any significant investments or acquisitions that account for 5% or more of its total asset value as of June 30, 2024[42][43]. - The company did not conduct any equity fundraising activities during the six months ending June 30, 2024, and has not detailed any major investment or capital asset plans for the coming year[50]. Operational Developments - The company is actively exploring opportunities in the Web 3.0 cryptocurrency business starting in the second half of 2023[2]. - The company has diversified its product line to include over ten categories, such as smart wearables, smart health devices, and smart home security products[32]. - The company plans to enhance its smartphone development and integrate AI technology into its product offerings, focusing on the elderly market with 5G non-smartphones[36]. - The company aims to expand its product line to include smart tablets and smartwatches while deepening its presence in key overseas markets[36]. - The company launched the Cool50 and Cool60 smartphones on e-commerce platforms and partnered with China Mobile to release the Coolpad Y70Lite[30]. Management and Governance - The company has established a three-member independent audit committee to oversee financial reporting and compliance matters[50]. - The company’s management has discussed the accounting policies and internal controls during the review of the interim results[50]. - The company has not held an annual general meeting due to delays in the annual performance review, affecting compliance with corporate governance codes[85]. - The company plans to hold an annual general meeting at an appropriate time to address director retirements and re-elections[86]. Shareholder Information - As of June 30, 2024, the total issued shares amount to 16,381,007,955[66]. - Chairman Chen Jia Jun holds a direct beneficial interest in 3,131,355,500 shares, representing approximately 19.12% of the total issued share capital[65]. - Jeffrey Steven YASS holds 1,333,340,000 shares, accounting for approximately 8.14% of the total issued share capital[65]. - The average number of issued ordinary shares increased to 16,381,007,955 for the six months ended June 30, 2024, from 13,651,007,955 for the same period in 2023[144]. Future Outlook - The company has not provided specific guidance or outlook for future performance in the upcoming periods[50]. - The board is reassessing its business strategy in light of potential opportunities in the 5G market and aims to strengthen partnerships with various channel business partners[124]. - The company continues to monitor global factors affecting the cryptocurrency market to assess investment risks and opportunities[37].

Financial Performance - In 2023, Coolpad Group Limited reported revenue of HKD 307,363,000, a slight increase of 2% from HKD 299,208,000 in 2022[11] - The company recorded a pre-tax loss of HKD 234,015,000, an improvement from a loss of HKD 629,430,000 in the previous year[11] - The net asset value decreased to HKD 2,091,674,000 from HKD 2,236,477,000 in 2022, reflecting a decline of approximately 6.5%[11] - Gross profit for the year was HKD 107.42 million, with a gross margin of 34.95%, a significant improvement from a gross loss of HKD 52.77 million in the previous year[27] - The company reported a loss before tax of HKD 234.02 million, a 62.82% improvement from a loss of HKD 629.43 million in the previous year[30] - The company recorded a net loss attributable to the owners of the company for the year was HKD (220,931,000), compared to a loss of HKD (625,450,000) in 2022, indicating a significant reduction in losses[128] - The company reported a total loss from discontinued operations of HKD (220,992,000) for the year, which includes losses from previous years[128] Revenue Sources - Revenue from mobile phone sales and related accessories was HKD 181.32 million, accounting for 58.99% of total revenue, showing a slight increase from HKD 180.73 million (60.40%) in the previous year[25] - The company generated HKD 8.54 million in revenue from cryptocurrency operations, which was not applicable in the previous year[24] - The company aims to enhance its mobile business through the development of new sales and marketing strategies, with a focus on e-commerce channels[42] Market Trends - The global smartphone shipment in 2023 was 1.17 billion units, a year-on-year decline of 3.2%, marking the lowest annual shipment in a decade[15] - The company reported a monthly increase in sales during the fourth quarter, indicating a recovery trend following the launch of new products[47] - The global smartphone shipment volume is expected to recover in Q4 2023, with the company aiming to capitalize on this trend to achieve profitability[53] Product Development and Innovation - Coolpad has expanded its business to dozens of countries, focusing on high-growth markets in Southeast Asia, Eastern Europe, the Middle East, and Latin America[15] - New product series such as "Daguang," "Fengshang," and "Cool" have been launched to enhance market share, targeting both entry-level 5G and senior-friendly smartphones[15] - The company is integrating AI voice assistants and large language models into its COOLOS operating system, improving system performance and user experience[16] - The company aims to expand its product line around AI+5G, targeting the elderly consumer market, which is becoming a new growth area due to China's aging population[52] Cost Management - Selling and distribution expenses decreased by 49.85% to HKD 35.70 million, representing 11.62% of total revenue, down from 23.79% in the previous year[28] - Administrative and other operating expenses were reduced by 43.08% to HKD 273.23 million, accounting for 88.89% of total revenue, down from 160.43% in the previous year[29] Corporate Governance - The company has established a risk management and internal control system aimed at managing risks rather than eliminating them, providing reasonable assurance against significant misstatements or losses[85] - The board has established three committees: nomination committee, remuneration committee, and audit committee, each with specific responsibilities[68] - The company is committed to compliance with legal and regulatory requirements, as well as corporate governance policies[68] Shareholder Engagement - The company emphasizes effective communication with shareholders and provides at least 21 days' notice for the annual general meeting[101] - The board of directors does not recommend the payment of any final dividend for the year, considering the company's operational needs[125] Employee and Management Information - The group reported an employee cost of approximately HKD 97.33 million for the year, down from HKD 218.69 million in 2022, with a total of 299 employees as of December 31, 2023[183] - The company has a total of five senior management members, with two earning between HKD 1,000,000 and HKD 1,000,000, three earning between HKD 1,000,001 and HKD 2,000,000[72] Legal and Compliance Issues - The company failed to comply with the listing rules regarding timely financial reporting, specifically the annual results announcement and annual report publication, which violated rules 13.46(2)(a) and 13.49(1) of the listing rules[84] - The company has a zero-tolerance policy towards corruption and conducts regular compliance reviews of its business and management practices[103] Future Outlook - The company aims to focus on the development of AI interaction and optimization of large language models in 2024, alongside promoting domestic hardware platforms for 5G mobile phones[17] - The company plans to improve its rental income from properties by advancing the construction of projects in Shenzhen and Dongguan[52]