Financial Performance - In 2024, the company's total revenue decreased by approximately 34.9% to RMB 277.5 million, primarily due to consumer hoarding behavior and changes in purchasing power [8]. - The gross profit margin for 2024 was 76.1%, an increase from 75.2% in 2023, indicating a strong market position and premium branding [8]. - The company's revenue from DHA algae oil products contributed approximately 96.1% in 2024, compared to 94.7% in 2023, highlighting the product's significance in the revenue stream [15]. - The sales volume of DHA algae oil products in 2024 was 1,276 thousand units, with an average selling price of RMB 209.0 per unit [15]. - The sales volume of DHA algae oil products decreased from 1,918 thousand units in 2023 to 1,276 thousand units in 2024, reflecting market challenges [15]. - In the fiscal year 2024, the company's total revenue was approximately RMB 277.5 million, a decrease of 34.9% from RMB 426.5 million in fiscal year 2023 [16]. - Gross profit for fiscal year 2024 was approximately RMB 211.1 million, a decline of 34.2% year-over-year, with a gross margin of 76.1% compared to 75.2% in fiscal year 2023 [19]. - Other income increased to approximately RMB 17.5 million in fiscal year 2024 from RMB 13.5 million in fiscal year 2023 [20]. - Selling and distribution expenses were approximately RMB 90.6 million in fiscal year 2024, down from RMB 102.6 million in fiscal year 2023 [21]. - Profit attributable to owners decreased by 53.0% to approximately RMB 74.9 million in fiscal year 2024 from RMB 159.3 million in fiscal year 2023 [24]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency to create value for shareholders and the community [9]. - The company has a focus on corporate governance and compliance, as evidenced by the qualifications of its board members [46][49]. - The company is expanding its board with experienced professionals to enhance its governance structure [48]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests [130]. - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring diverse governance [71]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined responsibilities [158]. - Independent non-executive directors confirm their independence in writing, ensuring the board's independence is maintained [156]. - The audit committee, composed entirely of independent non-executive directors, is responsible for reviewing the integrity of the group's financial reporting and internal control systems [160]. - The company has adopted a board diversity policy, ensuring at least one female director is included, with two female directors currently serving [149]. - The company has established a remuneration committee to review the remuneration structure for directors and senior management [108]. Market Strategy and Growth - The company plans to enhance marketing efforts and brand awareness through online and offline channels to expand market coverage in the Chinese nutrition industry [9]. - The company is optimistic about the growth potential of the nutrition industry in China, particularly in the maternal and infant sector, driven by increasing health awareness and disposable income [14]. - The company aims to strengthen its sales and distribution network, particularly in regions with lower penetration rates in China [14]. - The company plans to enhance marketing efforts and expand its sales network into Hong Kong [137]. - The company is committed to expanding its business into new regions, although this expansion carries inherent risks and uncertainties [74]. - The company is strategically positioned for future growth with a focus on expanding its market presence and enhancing its operational efficiency [52]. Employee and Management Changes - The group employed 44 employees as of December 31, 2024, down from 46 in 2023, with employee costs approximately RMB 11.7 million compared to RMB 16.6 million in 2023 [34]. - The company has seen significant management changes, with Mr. An Yong currently serving as the general manager, bringing over 17 years of experience in the food industry [56]. - The financial management team includes Ms. Sun Mei, who has over 15 years of experience in accounting and financial management, currently serving as the financial manager since February 2014 [60]. - The company has appointed a new financial director and company secretary effective February 1, 2025, indicating a change in leadership [63]. - The company has confirmed that there are no major transactions, agreements, or contracts involving significant interests held by directors or related entities [118]. Risk Management - The company faces risks related to brand reputation, supplier concentration, and reliance on online sales channels, which could impact future performance [74]. - The company believes that its risk management and internal control systems are effective and adequate during the reporting period [174]. - The audit committee is responsible for overseeing the internal control procedures and ensuring compliance with regulatory requirements [173]. Shareholder Information - The board recommends a final dividend of RMB 0.05 per ordinary share for the year ended December 31, 2024, subject to approval at the 2025 Annual General Meeting [36]. - The company has approximately RMB 376.5 million available for distribution to shareholders as of December 31, 2023, down from RMB 410.1 million in 2022 [96]. - The company’s dividend declarations are subject to approval by shareholders at the annual general meeting and cannot exceed the amount recommended by the board [181]. - The company will hold its annual general meeting on May 30, 2025 [120]. Environmental, Social, and Governance (ESG) - The company is committed to implementing comprehensive ESG principles and practices [199]. - A sustainability working group has been established at the management level, consisting of senior management members to handle environmental, social, and governance matters [200]. - The company has conducted a materiality assessment to identify significant environmental and social issues impacting investors and stakeholders [197]. - The company’s environmental, social, and governance (ESG) report covers its performance in these areas during the reporting period from January 1, 2024, to December 31, 2024 [194]. - The report includes the overall environmental and social performance of the company’s DHA product series sold in mainland China, with operations conducted from four offices and warehouses totaling 3,917.88 square meters [195].

Clinical Development and Innovation - KN035 (Envafolimab) has been commercialized since November 2021 and received registration in Macau for treating unresectable or metastatic MSI-H/dMMR adult solid tumor patients in 2024[6]. - KN026 is undergoing three Phase III clinical trials in China, with breakthrough therapy designation granted for HER2-positive gastric cancer patients who failed first-line treatment[7]. - JSKN003, a dual-target HER2 ADC, is in three Phase III clinical trials and has received breakthrough therapy designation for platinum-resistant ovarian cancer, with potential milestone payments up to RMB 3.08 billion[7]. - JSKN033, the world's first subcutaneous ADC combination therapy, has received ethics approval in Australia and is in I/II clinical trials for HER2-expressing advanced solid tumors[8]. - KN046, a bispecific antibody targeting PD-L1 and CTLA-4, has multiple ongoing clinical trials in China, the US, and Australia, with recent publications in major journals[8]. - Three clinical studies for the HER2 bispecific antibody KN026 are progressing positively, focusing on second-line GC/GEJ and first-line HER2-positive breast cancer[14]. - The ongoing clinical studies for JSKN016 are exploring multiple indications and treatment regimens, demonstrating the company's commitment to innovation[16]. - The JSKN033, a high-concentration combination formulation of ADC and immune checkpoint inhibitors, is the first subcutaneously administered ADC drug to enter clinical trials[16]. - Encouraging PFS and OS benefits were reported in a Phase II clinical trial of KN046 combined with albumin-bound paclitaxel for advanced triple-negative breast cancer, with results published in Nature Communications in February 2024[34]. - JSKN003 demonstrated promising initial anti-tumor activity and good tolerability in a Phase I clinical trial for advanced/metastatic solid tumors, presented at the AACR annual meeting in April 2024[35]. - JSKN003 was granted CDE approval to initiate a Phase III clinical trial for treating platinum-resistant recurrent epithelial ovarian cancer in December 2024[36]. - JSKN033's I/II clinical trial for advanced metastatic malignancies received CDE approval for IND application in December 2024[36]. - KN046 combined with lenvatinib showed promising results in a Phase II clinical study for advanced unresectable or metastatic HCC, published in Nature Communications in February 2025[37]. Financial Performance - The company achieved a significant year-on-year revenue growth of 192.58%, marking its first annual financial profit[18]. - The company reported a revenue of RMB 640,083,000 for the year ending December 31, 2024, representing a significant increase from RMB 218,774,000 in 2023, which is a growth of approximately 192%[32]. - Gross profit for the same period was RMB 579,767,000, up from RMB 163,537,000 in 2023, indicating a gross margin improvement[32]. - The company reported a total comprehensive income for the year ended December 31, 2024, was RMB 166.3 million, compared to a total comprehensive loss of RMB 211.4 million for the previous year[43]. - The company recorded a profit of RMB 166.3 million for the year ended December 31, 2024, compared to a loss of RMB 210.6 million in 2023[56]. - The company achieved a profit before tax of RMB 166,342,000, a turnaround from a loss of RMB 210,593,000 in the previous year[32]. - The gross margin improved to 65%, up from 60% in the previous year, due to cost optimization measures[22]. - The company plans to invest $50 million in research and development over the next two years to accelerate innovation[26]. - The company provided an optimistic outlook, projecting a revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion[25]. Market Expansion and Strategic Initiatives - The global first subcutaneous PD-(L)1 inhibitor, KN035, is expanding its market presence with registration in Macau and development in the Asia-Pacific and Middle East regions[14]. - The company is actively integrating global resources to enhance its international presence and accelerate value transformation through collaborations with leading pharmaceutical companies[18]. - The company is expanding its market presence in Europe, with plans to establish a new distribution center in Germany by mid-2024[27]. - A strategic acquisition of a biotech firm was announced, which is expected to enhance the company's R&D capabilities and product pipeline[24]. - The company has maintained a focus on strategic partnerships and potential acquisitions to enhance its competitive position in the industry[32]. Corporate Governance and Leadership - The company has a strong leadership team with key figures like Ms. Liu, who has extensive experience in human resources and supply chain management, and has been with the group since October 2018[84]. - The board includes independent directors with significant industry experience, such as Dr. Guo, who has been a professor at Nanjing University since May 1999[88]. - The company is committed to maintaining high standards of governance with independent directors overseeing board activities[88]. - The board believes that having the same person serve as both chairman and CEO is beneficial for the company's operations and management[102]. - The company has adopted the principles and code provisions of the corporate governance code as its governance standard[100]. - The company has appointed new independent non-executive directors to enhance board oversight and independent judgment[95]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[105]. - The company has established a policy for insider information to comply with the Securities and Futures Ordinance and Listing Rules[104]. - The company has adopted the standard code of conduct as per the Listing Rules Appendix C3, with no reported violations during the reporting period[104]. Employee and Corporate Culture - The company aims to make tumors controllable and treatable diseases, focusing on employee-centric culture and continuous innovation[97]. - The company has strengthened its cultural framework and requires all new employees to participate in onboarding training to understand corporate culture and policies[97]. - The company has a zero-tolerance policy for discrimination based on gender, age, race, nationality, and disability, and aims for improved diversity by 2025[135]. - As of December 31, 2024, the total number of employees is 420, with 45% male (189) and 55% female (231)[134]. - The age distribution of employees shows that 26% (109) are aged 18-30, 72% (301) are aged 31-50, and 2% (10) are over 50[134]. Risk Management and Compliance - The board of directors is responsible for risk management and internal control systems, which are reviewed annually for effectiveness[143]. - The company emphasizes a culture of risk awareness among employees, integrating risk management into strategic and operational processes[144]. - The company has established a whistleblowing policy to address employee concerns confidentially and anonymously[144]. - The board has implemented an anti-corruption policy as part of the corporate governance framework, emphasizing the commitment to ethical business practices[147]. - The company has no significant contingent liabilities or pending litigation that could adversely affect its business or financial condition as of December 31, 2024[77]. Research and Development - The company is continuously improving its biopharmaceutical research and development technology platforms, enhancing its core competitiveness[18]. - The company has established a differentiated and internationally competitive product matrix covering ADC, bispecific antibodies, and other advanced fields[14]. - The company has maintained stable business relationships with major suppliers for approximately six years[170]. - The company has a commitment to high corporate governance standards to protect shareholder interests and enhance company value[99].

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately HKD 51,900,000, representing a 74.8% increase from HKD 29,688,000 in 2023[9] - The net loss for the year was approximately HKD 16,111,000, compared to a loss of HKD 12,567,000 in 2023, primarily due to increased administrative expenses related to business expansion[9] - The company's revenue increased by 74.8% from HKD 29,688,000 for the year ended December 31, 2023, to HKD 51,900,000 for the current year[44] - The net asset value improved from HKD 42,579,000 as of December 31, 2023, to HKD 48,220,000 as of December 31, 2024, indicating enhanced financial stability[44] - The company recorded an operating loss despite the revenue growth, highlighting ongoing challenges in operational efficiency[44] Assets and Liabilities - Total assets as of December 31, 2024, were approximately HKD 64,275,000, up from HKD 57,913,000 in 2023[17] - Total liabilities increased to approximately HKD 16,055,000 as of December 31, 2024, from HKD 15,334,000 in 2023, mainly due to an increase in trade and other payables[17] - The net current assets as of December 31, 2024, were approximately HKD 40,612,000, compared to HKD 34,283,000 in 2023[18] - The cash and cash equivalents as of December 31, 2024, were approximately HKD 22,906,000, down from HKD 37,986,000 in 2023[18] - The debt-to-asset ratio as of December 31, 2024, was 15.6%, compared to 17.3% in 2023[18] Capital Expenditures and Funding - The group has committed capital expenditures of approximately HKD 4,107,000 as of December 31, 2024, up from HKD 3,695,000 in 2023[22] - The net proceeds from the 2023 placement amounted to approximately HKD 7,080,000, fully utilized for general working capital[25] - The total amount raised from the 2024 rights issue was approximately HKD 19,780,000, with a net amount of about HKD 17,400,000 allocated for energy-saving projects and general working capital[26] - The net proceeds from the 2024 placement were approximately HKD 4,560,000, intended for the electric vehicle charging business[29] - The company plans to use approximately HKD 8,000,000 from the 2024 rights issue for existing and new energy-saving projects[26] Share Capital and Options - The total number of shares increased to 203,446,544 as of December 31, 2024, compared to 113,028,363 shares in 2023, following the completion of a rights issue and a placement of new shares[19] - The share placement price for the 2024 placement was set at HKD 0.138 per share, with the closing price on October 25, 2024, being HKD 0.152[29] - The new share option plan was adopted on June 2, 2023, and is valid for ten years, expiring on June 1, 2033[85] - The maximum number of shares that can be issued upon exercise of all options under the new plan is capped at 10% of the issued shares as of the date of shareholder approval[88] - The company aims to attract and retain talented employees through the share option plan, which includes various eligible participants[85] Governance and Management - The board of directors includes experienced professionals with extensive backgrounds in finance and engineering, enhancing governance and strategic oversight[40] - The company has not appointed a chairman or chief executive officer, with roles shared among four executive directors[126] - The board consists of seven members, including four executive directors and three independent non-executive directors[128] - The company has adhered to the corporate governance code throughout the year, with some deviations noted[120] - The board is responsible for evaluating the effectiveness of the group's internal control and risk management systems[162] Risk Management - The management has identified operational risks that cannot be completely eliminated, emphasizing the need for effective risk management strategies[48] - Credit risk assessments are conducted for loan financing, including background checks on potential clients and evaluation of repayment sources[49] - The company has a structured approach to managing operational risks through standard operating procedures and internal controls[48] - The group faces credit risk despite conducting credit assessments, with monthly monitoring of loan repayment status by the finance department[51] - The board believes that the risk management and internal control systems are reasonable and effective for the current year[166] Environmental and Social Responsibility - The company aims to integrate environmental and social goals into its business operations and decision-making processes[184] - The board is responsible for overseeing environmental, social, and governance matters and regularly reviews related risks and performance[187] - The company is committed to ethical business practices and aims to provide a safe and healthy work environment for employees[181] - The company focuses on providing energy-efficient solutions through the design and implementation of ultra-high-performance device control systems[189] - The company continues to advocate for energy-saving and water-saving behaviors as part of its overall environmental management agenda[200] Employee and Operational Metrics - The total employee cost for the year was approximately HKD 8,992,000, an increase from about HKD 6,616,000 in 2023, with a total of 27 employees as of December 31, 2024[24] - The number of employees rose from 20 in 2023 to 27 in 2024, leading to a decrease in energy consumption intensity per employee by 10%[190] - Greenhouse gas emissions intensity per employee increased by 209%, from 0.43 tons CO2 equivalent in 2023 to 1.33 tons CO2 equivalent in 2024[192] - The company encourages employees to use electronic documents instead of paper, resulting in an increase in paper consumption per employee from approximately 5.50 kg in 2023 to about 14.87 kg in the current year[196] - The company promotes water conservation practices among employees, although specific water usage data is not available due to the nature of its office operations[197]

Financial Performance - Total revenue for 2024 was RMB 359,790 thousand, a decrease of 35.8% year-on-year[10]. - Profit attributable to owners of the parent for 2024 was RMB 20,164 thousand, a significant decline of 78.0% year-on-year[10]. - Gross profit for 2024 was RMB 254,217 thousand, down from RMB 416,175 thousand in 2023[7]. - The company's net profit dropped significantly by 75.8% from RMB 80,129 thousand in 2023 to RMB 19,408 thousand in 2024, with the profit attributable to shareholders decreasing by 78.0% to RMB 20,164 thousand[15]. - Revenue decreased by 35.8% from RMB 560,406 thousand in 2023 to RMB 359,790 thousand in 2024, primarily due to a decline in GMV of digital goods transactions[32]. - Revenue from digital goods-related services fell by 52.6% from RMB 438,072 thousand in 2023 to RMB 207,831 thousand in 2024, attributed to a significant drop in GMV[34]. - Revenue from value-added services increased by 52.4% from RMB 53,783 thousand in 2023 to RMB 81,949 thousand in 2024, driven by the expansion of partnered brands[34]. - Entertainment segment revenue decreased by 53.7% from RMB 250,974 thousand in 2023 to RMB 116,297 thousand in 2024, due to changes in brand policies and marketing expenses[35]. - Game segment revenue declined by 17.0% from RMB 78,006 thousand in 2023 to RMB 64,714 thousand in 2024, resulting from supply chain integration[36]. - Communication segment revenue dropped by 69.9% from RMB 17,241 thousand in 2023 to RMB 5,183 thousand in 2024, due to adjustments in agency policies[37]. - Life services segment revenue decreased by 27.6% from RMB 121,560 thousand in 2023 to RMB 88,037 thousand in 2024, linked to collaboration adjustments with channel clients[37]. - Corporate welfare segment revenue fell by 7.6% from RMB 92,625 thousand in 2023 to RMB 85,559 thousand in 2024, due to optimization of business structure[37]. - Adjusted profit attributable to the parent company decreased from RMB 99,962 thousand in 2023 to RMB 26,163 thousand in 2024[31]. - Operating profit declined from RMB 98,920 thousand in 2023 to RMB 29,702 thousand in 2024, reflecting overall revenue challenges[31]. - The company's GMV for 2024 was RMB 9,244,575 thousand, down 44.1% from RMB 16,537,286 thousand in 2023, with notable declines across all segments[17]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 1,764,025 thousand, slightly up from RMB 1,762,633 thousand in 2023[8]. - Current assets increased to RMB 1,705,900 thousand in 2024 from RMB 1,675,642 thousand in 2023[8]. - Total liabilities decreased to RMB 482,521 thousand in 2024 from RMB 505,281 thousand in 2023[8]. - Cash and cash equivalents stood at RMB 310,442 thousand, ensuring stable operating capital for the company[16]. - Total debt as of December 31, 2024, was RMB 482,521 thousand, down from RMB 505,281 thousand in 2023, with interest-bearing debt including bank loans of RMB 170,710 thousand[68]. - As of December 31, 2024, the company has no net debt, with cash and cash equivalents exceeding interest-bearing borrowings, making the capital debt ratio not applicable[73]. - The company has no assets pledged or mortgaged as of December 31, 2024[74]. Operational Strategy - The company is focused on digital transformation and enhancing operational efficiency for its clients[11]. - The company plans to focus on the restaurant, tea, coffee, and film industries in 2024, aiming to leverage digital transformation and expand partnerships with local brands[18][19]. - The company has streamlined its team structure and implemented independent management for subsidiaries to improve operational efficiency and risk management[13]. - The company emphasized cost control and business structure optimization to enhance competitiveness in response to the significant profit decline[15]. - The company is committed to optimizing operational management and continuously innovating to create long-term value for stakeholders[29]. Market and Client Base - The company has established a broad influence in various industries, including banking, internet, and telecommunications[11]. - The client base continues to expand with new clients from emerging industries such as automotive manufacturing and fast-moving consumer goods[11]. - The company has established itself as a leading service provider in the live streaming of digital gaming products, collaborating with top 30 gaming companies and producing over 100 live streaming cases[24]. Governance and Compliance - The company maintains a high standard of corporate governance practices as detailed in the annual report's corporate governance report[199]. - The board of directors includes experienced executives with over 10 years of management experience in the IT industry[81][83]. - The independent non-executive directors have extensive backgrounds in finance and management, contributing to the company's governance[85][87]. - The audit committee, along with auditors, has reviewed the company's audited consolidated financial statements for the year ending December 31, 2024[192]. - The company has complied with the corporate governance code provisions, except for a deviation noted in the responsibilities of the chairman and CEO[200]. Shareholder Information - The total equity held by Mr. Fu Xi amounts to 155,946,850 shares, representing approximately 38.16% of the company's issued share capital[128]. - Mr. Zhang Yuguo holds a total equity of 47,238,066 shares, which is about 11.56% of the company's issued share capital[128]. - Mr. Zhao Bihao's total equity is 17,101,333 shares, accounting for approximately 4.18% of the company's issued share capital[128]. - FuXi Limited holds a beneficial interest of 141,094,800 shares, representing approximately 34.53% of the issued share capital[134]. - Zhangyuguo Holdings has a beneficial interest of 45,999,600 shares, accounting for about 11.26% of the issued share capital[134]. - Luzhi Holdings owns 52,492,800 shares, which is approximately 12.85% of the issued share capital[134]. Future Outlook - The company aims to leverage digital transformation opportunities and explore new e-commerce scenarios to drive business growth in 2025[28]. - The board's decision on dividend payments will depend on operational performance, cash flow, financial condition, future business prospects, and regulatory restrictions[104]. - The company has not identified suitable acquisition targets for potential business and asset acquisitions, which may delay the planned use of funds[110]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection and resource conservation, implementing various measures to reduce energy consumption and carbon emissions[107]. - The company is actively involved in social responsibility initiatives through its employee public welfare fund, promoting sustainable development[88]. - The company has taken steps to ensure compliance with environmental laws and regulations, with no known violations during the reporting period[108].

Lease Receivables - As of December 31, 2024, the total book value of lease receivables is approximately HKD 2.63 billion, down from HKD 3.58 billion as of December 31, 2023[2]. - The book value of trade receivables under operating leases is approximately HKD 123,000, a decrease from HKD 728,000 as of December 31, 2023[2]. - The book value of lease receivables pledged as collateral for asset-backed securities is approximately HKD 2.14 billion, compared to HKD 3.06 billion as of December 31, 2023[2]. Bank Borrowings - The collateral for bank borrowings amounts to approximately HKD 2.29 billion, down from HKD 3.09 billion as of December 31, 2023[2]. Auditor's Remuneration - The auditor's remuneration disclosed in the consolidated performance notes is HKD 2,039,000[2].

Financial Performance - The company's operating revenue for 2024 was CNY 1,356,346,670.03, representing a 2.95% increase from CNY 1,317,495,782.20 in 2023[18]. - The net profit attributable to shareholders for 2024 improved significantly to a loss of CNY 43,699,833.39, a 92.29% reduction in loss compared to CNY 566,861,510.82 in 2023[18]. - The net cash flow from operating activities for 2024 was CNY 43,872,797.18, down 67.50% from CNY 134,992,577.56 in 2023[18]. - The total assets at the end of 2024 were CNY 2,420,182,877.14, a decrease of 16.20% from CNY 2,888,081,988.80 at the end of 2023[18]. - The net assets attributable to shareholders increased by 16.10% to CNY 492,269,498.07 in 2024 from CNY 424,013,364.43 in 2023[18]. - The company reported a total of CNY 267,726,386.47 in non-recurring gains and losses for 2024, compared to a loss of CNY 11,009,135.80 in 2023[23]. - The first quarter of 2024 saw operating revenue of CNY 193,609,052.43, with a net profit of CNY 216,912,792.77, while subsequent quarters reported losses[21]. - The company achieved a total operating income of approximately 1.356 billion RMB, representing a year-on-year increase of 2.95%, while the net profit attributable to shareholders was a loss of 44 million RMB, a 92.29% reduction in losses compared to the previous year[28]. Business Operations - The company reported a significant change in its business scope, now including the production and sales of various oil machinery and related products[15]. - The company operates in the energy equipment industry, which is influenced by global economic growth, oil and gas prices, and exploration expenditures[25]. - The company has seen a recovery in demand for oil and gas equipment and services due to sustained high international oil prices[25]. - The company's main products, including oil pipes and casings, accounted for approximately 90.73% of total revenue, with overseas sales revenue increasing by over 25% year-on-year[27]. - The company completed the sale of Shouguang Baolong and Weihai Baolong shares, generating an investment income of approximately 260 million RMB, which contributed to the net profit for 2024[28]. - The company has established a strong sales network and plans to develop four new overseas market regions and acquire 30 new customers in 2024[33]. - The company has undertaken over 80 national and provincial-level research projects and has established several innovation platforms, enhancing its R&D capabilities in energy equipment[30]. Research and Development - The company has developed a series of special-purpose products with independent intellectual property rights, which are widely used in domestic and international oil fields[31]. - The company has established a hydrogen energy R&D base in collaboration with China University of Petroleum (Beijing) to advance hydrogen energy equipment development[30]. - The company completed the development of large-diameter thin-walled high-strength pipeline technology, enhancing its competitiveness in the market[49]. - The company completed the development of high-strength steel grade Q125 for deep and ultra-deep oil applications, enhancing competitiveness in the high-grade casing product line[50]. - The company has developed pipeline products for hydrogen transport that meet high-pressure requirements, establishing a foundation for entering the emerging hydrogen energy market[50]. - The company is participating in national hydrogen demonstration projects to deepen cooperation with hydrogen equipment manufacturers, laying the groundwork for expanding the new energy supply chain[50]. Cost Management - The company has reduced its three major expenses by 35.61% year-on-year, significantly improving cost control and operational efficiency[28]. - Material costs for pipe products increased by 13.30% to ¥922,084,291.34, representing 78.92% of total costs[43]. - Sales expenses decreased by 9.73% to ¥16,842,360.97 compared to the previous year[49]. - Management expenses saw a significant reduction of 47.86%, totaling ¥118,952,881.37, primarily due to the sale of a subsidiary[49]. - Financial expenses decreased by 15.35% to ¥96,614,115.45, attributed to a reduction in financing amounts[49]. - R&D expenses decreased by 17.39% to ¥29,309,446.94, mainly due to reduced R&D investments[49]. Market Strategy - The company plans to strengthen market research and optimize product structure to enhance competitiveness and adapt to market demand changes[80]. - The company will focus on high-value product orders and expand marketing channels to boost sales in key markets[80]. - The company is actively seeking additional financing to alleviate cash flow pressure, optimizing debt structure and reducing high-interest debt rates[82]. - The company has implemented a strong overseas strategy, expanding its market presence in over 50 countries, including new orders in Kazakhstan, Vietnam, Ecuador, and Egypt[83]. Governance and Compliance - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[99]. - The supervisory board is composed of 3 members, including 1 employee representative, fulfilling legal obligations for oversight of major company matters[100]. - The company emphasizes transparency in information disclosure, adhering to relevant laws and regulations, and ensuring equal access to information for all shareholders[101]. - A fair and transparent performance evaluation and incentive mechanism for directors and senior management has been established[102]. - The company maintains independence in assets, personnel, finance, organization, and business from controlling shareholders and actual controllers[105]. Personnel Changes - The company experienced several resignations and appointments among its board members and senior management, including the resignation of the chairman on May 10, 2024, due to job relocation[115]. - Significant personnel changes include the retirement of Yao Youling and the resignation of Li Zhixin due to personal reasons[116]. - The company is undergoing a leadership transition with multiple new appointments and retirements scheduled throughout 2024[116]. - The company will see a change in its financial director on November 21, 2024, as part of a scheduled rotation[115]. Risk Management - The company has established a risk management system to monitor, assess, and manage various risks associated with its activities[194]. - Market risks are significant due to the cyclical nature of the energy equipment manufacturing industry, influenced by global economic growth and oil price fluctuations[86]. - The company is monitoring raw material price volatility to control manufacturing costs and adjust product pricing accordingly[87]. - Increasing safety and environmental regulations pose a risk, leading to higher compliance costs for the company[88]. - The company is closely watching exchange rate fluctuations to mitigate potential impacts on operational performance[89]. Future Outlook - The company anticipates a stable increase in oil and gas production, maintaining crude oil output above 200 million tons by 2025, supporting upstream exploration and development investments[78]. - The oil and gas industry is expected to maintain a favorable outlook, with supply-demand fundamentals driving international oil price stability[78]. - The company aims to enhance its position as an internationally recognized energy equipment manufacturer and service provider by 2025[79].

Business Expansion and Operations - The company has expanded its interior decoration engineering business to Macau, China, and Singapore since 2005, 2017, and 2021 respectively[3]. - The company has undertaken multiple large-scale interior decoration projects across Hong Kong, Macau, Singapore, and China, ensuring timely completion within budget[3]. - The company is involved in the manufacturing of interior decoration materials in China and engages in procurement and distribution in international markets[3]. - The company has established a strong presence in the interior decoration sector, being one of the leading contractors in the region[3]. - The company completed 46 interior decoration projects with a total contract value of HKD 4,488.9 million, showcasing strong client confidence in the company's ability to maintain high-quality project standards[18]. - The interior decoration business generated revenue of HKD 5,992.4 million, an increase of HKD 542.1 million or 9.9% year-on-year[36]. - The total contract value of completed interior decoration projects was HKD 4,488.9 million, with HKD 1,414.7 million recognized as revenue during the year[36]. - The group completed a total of 46 interior decoration projects, including 15 in Hong Kong, 4 in Macau, 1 in Singapore, and 26 in China[36]. Financial Performance - The company's revenue for the year was HKD 5,996.8 million, an increase from HKD 5,461.3 million in the previous year, representing an increase of approximately 9.8%[17]. - The net profit for the year was HKD 320.8 million, slightly down from HKD 330.3 million in the previous year, indicating a decrease of about 4.5%[17]. - Basic and diluted earnings per share were HKD 0.1486, compared to HKD 0.1530 in the previous year, reflecting a decrease of approximately 2.9%[17]. - The gross profit rose by HKD 104.0 million or 14.9% to HKD 800.2 million, with a gross profit margin increasing to 13.3% from 12.7% in the previous year[42]. - The gross profit from the interior decoration business increased by HKD 114.1 million or 16.4% to HKD 810.9 million, with a gross profit margin of 13.5%[37]. - The group reported a net profit of HKD 320.8 million, a decrease of HKD 9.5 million or 2.9% from HKD 330.3 million in the previous year[44]. Corporate Governance - The company emphasizes corporate governance and compliance with the relevant regulations and codes[4]. - The company has a diversified board of directors with recent changes, including the appointment of new independent non-executive directors in 2024[5]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[84]. - The company continues to integrate effective corporate governance elements into its management structure and internal procedures[79]. - The company has maintained high levels of corporate governance and has established policies and procedures to comply with the principles of the corporate governance code[81]. - The company has established mechanisms to ensure the board receives independent views and opinions, including consultations with external professional advisors[90]. - The company has adopted a standard code of conduct for securities trading, confirming compliance throughout the year[83]. - The board has delegated daily operations to the executive directors and management, while retaining approval rights for major strategic decisions[88]. Economic Outlook and Market Conditions - Hong Kong's GDP is expected to grow by 2.5% in 2024, with a nominal value of completed construction projects reaching HKD 77.8 billion, a year-on-year increase of 9.4%[31]. - Macau's GDP is projected at MOP 403.3 billion for 2024, with a real growth of 8.8%, and gaming revenue expected to reach MOP 226.8 billion, a year-on-year increase of 23.9%[32]. - Singapore's GDP is anticipated to grow by 4.4% in 2024, with the construction industry showing a growth of 4.5% driven by major infrastructure projects[33]. - In China, the real estate development investment is projected to decline by 10.6% to CNY 10,028 billion in 2024, with residential property investment down by 10.5%[33]. - The Hong Kong government plans to lift residential property sales restrictions starting February 28, 2024, to stabilize the real estate market[22]. - Macau's government is implementing multiple policies to enhance tourism, including expanding the "Individual Visit" scheme to 59 cities in China[22]. - The company remains optimistic about the positive impact of Singapore's economic outlook on the interior decoration industry[24]. - The company will closely monitor national policies and market developments in China to adjust its business strategies accordingly[25]. Risk Management and Compliance - The company has established a comprehensive risk management framework to address key environmental, social, and governance factors, including energy consumption and environmental pollution[146]. - The risk management team conducts annual assessments of risks impacting business objectives, scoring and prioritizing them based on likelihood and impact[125]. - The company has a policy in place to ensure timely public disclosure of inside information, maintaining confidentiality until such disclosure is appropriate[127]. - The company has established an audit committee to review financial statements and provide recommendations regarding the appointment and dismissal of external auditors[99]. - The audit committee has reviewed the risk management and internal control systems, as well as the financial reporting system[101]. - The board monitors compliance with legal and regulatory requirements, ensuring adherence to governance policies[124]. Employee and Community Engagement - The company emphasizes employee development through on-the-job training, external training, and onboarding training[199]. - The company has established a comprehensive training mechanism tailored to employees' entry time and job nature[199]. - The company actively engages in community service and charitable activities, enhancing its social responsibility profile[152]. - The company focuses on maintaining strong labor relations and promoting mental health through various employee engagement activities[157]. - The company has implemented measures to ensure fair handling of personal data, requiring customer consent for data collection[157]. - The company has established a zero-tolerance policy towards misconduct, reinforcing its commitment to ethical business practices[160]. Sustainability and Environmental Responsibility - The company has obtained ISO 45001 certification for occupational health and safety, demonstrating its commitment to providing a safe working environment[157]. - The company has established a dedicated environmental and safety management committee to assist management in addressing related challenges[147]. - The company has identified 34 key environmental, social, and governance (ESG) issues relevant to its operations through stakeholder engagement[152]. - The importance assessment matrix ranked issues based on their impact on business activities and stakeholder concerns, guiding the company's sustainability efforts[157]. - The company has set sustainability goals and action plans for 2024, which have been achieved and reviewed by management[145].

Financial Performance - The operating revenue was approximately RMB 84.064 billion, an increase of 2.1% compared to last year[7]. - The profit attributable to shareholders was approximately RMB 5.123 billion, a decrease of 6.8% year-on-year[11]. - Basic and diluted earnings per share were RMB 4.07, down 6.7% from the previous year[11]. - The board proposed a final dividend of HKD 0.77 per share, with a total annual dividend of HKD 1.62, representing a year-on-year increase of 1.25%[11]. - The total assets reached RMB 209.752 billion, an increase of 2.6% compared to last year[19]. - The average financing cost decreased to 3.2% from 3.7% in the previous year[19]. - The current ratio improved to 0.80 from 0.74[19]. - The EBITDA reached a historical high, driven by operational efficiency improvements and high electricity prices[10]. - The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was approximately RMB 14.21 billion, reflecting a 1.3% increase compared to the previous year[26]. - Shareholders' profit attributable to the company was RMB 5.12 billion, which is a 5.0% increase when excluding last year's one-time items[26]. Business Segments Performance - The total annual sales volume of natural gas in Beijing reached 23.8 billion cubic meters, up 2.1% from 23.3 billion cubic meters in 2023[23]. - The LNG distribution volume increased by 43.5% to 3.3 billion cubic meters, while international trade volume of LNG rose by 50.0% to 2.4 billion cubic meters[23]. - The total design treatment capacity of water services at the end of the period was 43.74 million tons per day, slightly down by 0.5% from the previous year[23]. - The total sales volume of Yanjing Beer reached 4.004 million kiloliters, a 1.6% increase from 3.94 million kiloliters in 2023[23]. - The water business generated a revenue of RMB 24.27 billion, with attributable profit to Beijing Holdings of RMB 690 million, reflecting the company's strategic transformation and operational efficiency[35]. - The environmental segment achieved a domestic revenue of RMB 2.357 billion, with a pre-tax profit of RMB 609 million, and the overseas EEW GmbH reported a revenue of RMB 6.864 billion, up 19.1% year-on-year, with a pre-tax profit increase of 35.0%[36]. - The beer business recorded a revenue of RMB 12.76 billion, a year-on-year increase of 3.5%, and a pre-tax profit of RMB 1.555 billion, up 62.7%[38]. Strategic Initiatives - The company plans to enhance its business layout, value creation, mechanism reform, and talent aggregation as part of its "Four High Grounds" strategy for sustainable development[28][30]. - The company aims to optimize its asset management and improve operational efficiency through various capital operations, including restructuring and innovative financing channels[30]. - The company plans to accelerate investment in emerging businesses, focusing on national strategic emerging industries and combining independent cultivation with mergers and acquisitions[40]. - The company aims to strengthen its core functions and competitiveness, ensuring a high-quality development trajectory amid a complex global macro environment[39]. - The company is committed to achieving carbon peak by 2030 and has established a leadership group for carbon neutrality initiatives[101]. - The company is actively promoting low-carbon innovation and has implemented specific measures for emissions reduction across its business segments[101]. Corporate Governance and Management - Beijing Enterprises Holdings Limited is listed on the Hong Kong Stock Exchange and has received high investment-grade ratings, including AAA from domestic agencies and A from Fitch[46]. - The company emphasizes high standards of corporate governance as a core foundation for sustainable development, implementing a governance mechanism that includes a professional board committee and risk management framework[136]. - The board consists of eight members, including four executive directors and four independent non-executive directors, ensuring a balanced governance structure[142]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance decision-making effectiveness[146]. - The company prioritizes ESG management, regularly reviewing sustainable development strategies to improve environmental, social, and governance performance[147]. Risk Management - The company faces regulatory risks, including price controls on core businesses like gas and water, which may impact profit margins if upstream costs rise without corresponding price adjustments[190]. - Environmental policy tightening may increase operational costs for the company's environmental services, which rely on government subsidies[191]. - The company is exposed to market risks, including LNG procurement price fluctuations influenced by international energy markets, which could erode profits if costs cannot be fully passed to end users[195]. - Increased competition in the water and environmental sectors from state-owned and private enterprises may pressure the company's market share and profitability[196]. - The company is experiencing a slowdown in demand growth due to saturation in urbanization in Beijing and surrounding areas, relying on external acquisitions for growth[198]. - High leverage pressure exists as the company has significant debt from acquisitions, which could increase repayment burdens if interest rates rise[199]. Employee and Community Engagement - The company has approximately 30,000 employees and regularly reviews its compensation policies based on performance and market conditions[98]. - The group reported a total donation of approximately RMB 4.59 million for public welfare projects during the year[80]. - The company is committed to providing a safe and equitable work environment for employees, fostering personal and professional growth[78].

Business Performance - At the end of 2024, CR Gas's portfolio consisted of 276 city gas projects across 25 provinces, including 15 provincial capitals and 76 prefecture-level cities, with an annual gas sales volume of approximately 39.9 billion cubic meters and 60.62 million customers[8][12]. - The total connectable population reached 99.98 million households, indicating significant market penetration and growth potential[12]. - The Group's total natural gas sales volume increased by 2.9% year-on-year to 39.91 billion cubic meters, with revenue rising by 1.4% to HK$102.68 billion[23]. - The annual gas sales volume of 39.9 billion cubic meters reflects a robust demand for natural gas in the regions served by CR Gas[12]. - The total gas sales volume rose by 2.9% from 38.78 billion m³ to 39.91 billion m³[72]. - The total number of newly connected residential users in 2024 was 2.693 million[77]. - The Group's gas sales volume from 2008 to 2024 is projected to grow at a compound annual growth rate (CAGR) of 23.45%[43]. - The Group's natural gas consumption is projected to grow at a CAGR of 12.5% from 2000 to 2024, while production is expected to grow at 9.64%[34]. Strategic Initiatives - CR Gas aims to leverage favorable operating conditions to expand through both organic and external growth, enhancing its position as a leader in the gas industry[10]. - The company is committed to delivering safe and reliable clean energy while providing efficient services to customers, contributing to sustainable performance for shareholders[10]. - The Group's focus on urban gas core business development has solidified its leading position in the market[31]. - The Group's proactive exploration of the gas value chain and customer base aims to identify new business opportunities[20]. - The Group plans to adhere to a "1+2+N" business strategy in 2025, focusing on clean energy development and enhancing its natural gas resource pool[65]. Financial Performance - The Group achieved a turnover of HK$102.68 billion in 2024, representing a year-on-year increase of 1.4%[53]. - Profit for the year decreased by 18.6% to HK$5,748,294 from HK$7,058,886 in 2023[123]. - The attributable profit to the owners of the Company decreased by 21.7% to HK$4.09 billion compared to HK$5.22 billion in the previous year[137]. - Operating profit declined by 15.9% to HK$7.74 billion, and cash generated from operations fell from HK$10.16 billion in 2023 to HK$7.00 billion in 2024[71]. - The overall gross profit margin was 17.8%, a decrease of 0.4 percentage points compared to the previous year, primarily due to a reduction in the share of revenue from gas connection from 10.8% to 9.0%[53]. - The average gas tariff decreased to RMB 3.42 per cubic meter from RMB 3.50 in 2023[130]. - The Group's debt to capitalisation ratio improved to 26.4% from 29.5% in 2023[126]. Operational Efficiency - The Group's operational strategy includes a commitment to professional development opportunities for employees, fostering a skilled workforce to support its growth objectives[10]. - The management team is focused on improving operational efficiency to achieve sustainable organic growth[74]. - Benchmarking initiatives have been implemented across all business sectors to enhance performance and identify gaps[82]. - The Group has 84 regional centers to manage daily operations of city gas projects, enhancing service and operational efficiency[86]. - Centralized procurement accounted for 85.54% of total material procurement expenditure by the end of 2024, leading to cost reductions while ensuring quality[89]. Environmental and Social Responsibility - The Chinese government emphasizes the promotion of green and low-carbon development, which aligns with CR Gas's strategy to enhance operational efficiency and provide clean energy solutions[9][10]. - The Group's ESG rating was maintained at A by MSCI, reflecting its commitment to sustainable development and compliance with environmental standards[49]. - As of the end of 2024, the Group's carbon dioxide emission intensity decreased by 61.28% and comprehensive energy consumption per RMB 10,000 of revenue decreased by 35.59% compared to the end of 2020[118]. - Total charitable donations amounted to HK$3,103,600, with cumulative volunteer services of 74,100 persons/times in 2024[119]. Governance and Management - The Group is committed to enhancing its corporate governance standards by adopting best practices and a Corporate Governance Handbook[58]. - The Group's management team consists of professionals with significant expertise in financial, legal, commercial, and engineering disciplines[108]. - The Group has established 6 audit centers nationwide to enhance audit and risk control functions[112]. - Mr. WANG Gaoqiang has over 30 years of experience in corporate finance, internal audit, internal control, risk management, and corporate governance[183]. - Ms. GE Lu has over 30 years of experience in the pharmaceutical industry, specializing in supply chain management and logistics management[188].

Financial Performance - The company's operating revenue for Q1 2025 was RMB 36,026,452 thousand, representing an increase of 11.04% compared to RMB 32,443,160 thousand in the same period last year[8]. - Net profit attributable to shareholders for Q1 2025 surged to RMB 543,799 thousand, a remarkable increase of 550.21% from RMB 83,635 thousand in Q1 2024[8]. - The net profit excluding non-recurring gains and losses for Q1 2025 was RMB 523,091 thousand, up 132.42% from RMB 225,066 thousand in the previous year[8]. - Basic and diluted earnings per share for Q1 2025 were both RMB 0.0971, reflecting an increase of 670.63% from RMB 0.0126 in the same period last year[8]. - The company reported a gross profit margin of approximately 10.5% in Q1 2025, up from 8.5% in Q1 2024[56]. - Total comprehensive income for Q1 2025 was RMB 870,592, compared to RMB 81,567 in Q1 2024[58]. Cash Flow - Cash flow from operating activities for Q1 2025 was RMB 5,521,122 thousand, a significant improvement of 381.39% compared to a cash outflow of RMB (1,962,086) thousand in Q1 2024[8]. - Cash inflow from operating activities for Q1 2025 was RMB 14,443 million, slightly down from RMB 14,978 million in Q1 2024, representing a decrease of 3.6%[67]. - Cash outflow from operating activities for Q1 2025 was RMB 68,473 million, compared to RMB 73,901 million in Q1 2024, a decrease of 7.4%[67]. - Net cash flow used in operating activities for Q1 2025 was RMB (54,030) million, an improvement from RMB (58,923) million in Q1 2024[67]. - Cash inflow from investment activities for Q1 2025 was RMB 5,703,135 million, up from RMB 4,159,140 million in Q1 2024, an increase of 37.1%[67]. - Net cash flow used in investment activities for Q1 2025 was RMB (1,394,090) million, significantly improved from RMB (4,184,061) million in Q1 2024[67]. - Cash inflow from financing activities for Q1 2025 was RMB 7,250,000 million, down from RMB 11,900,000 million in Q1 2024, a decrease of 39.5%[69]. - Net cash flow from financing activities for Q1 2025 was RMB 2,198,838 million, a decrease of 63.7% compared to RMB 6,059,948 million in Q1 2024[69]. - The ending cash and cash equivalents balance for Q1 2025 was RMB 1,457,670 million, down from RMB 4,638,811 million in Q1 2024, a decrease of 68.7%[69]. - The company reported a cash inflow from the recovery of investments of RMB 5,642,090 million in Q1 2025, compared to RMB 4,067,400 million in Q1 2024, an increase of 38.7%[67]. Assets and Liabilities - Total assets as of March 31, 2025, were RMB 175,505,381 thousand, showing a slight increase of 0.43% from RMB 174,752,236 thousand at the end of the previous year[9]. - Current liabilities decreased to RMB 78,180,383 thousand from RMB 80,856,808 thousand, a reduction of 3.31%[44]. - Total liabilities rose to RMB 108,794,864 thousand, compared to RMB 106,732,434 thousand, marking an increase of 1.93%[46]. - Shareholders' equity decreased to RMB 66,710,517 thousand from RMB 68,019,802 thousand, a decline of 1.92%[48]. - Long-term borrowings increased to RMB 22,106,369 thousand from RMB 19,377,598 thousand, representing a growth of 14.14%[46]. - The total current assets increased to RMB 34,180,045 thousand from RMB 32,138,513 thousand, reflecting a growth of 6.36%[50]. Business Segments - In the logistics sector, container sales reached 531,200 TEU, a year-on-year increase of approximately 7.44% from 494,400 TEU[29]. - Refrigerated container sales surged to 36,400 TEU, up about 291.40% from 9,300 TEU in the previous year[29]. - The company sold a total of 29,800 vehicles in the first quarter, a year-on-year increase of 1.12%, generating operating revenue of RMB 4.591 billion[30]. - The clean energy segment saw a significant revenue increase of 33.4% year-on-year to RMB 4.342 billion, with the offshore clean energy business revenue soaring by 80.0% to RMB 1.306 billion[34]. - The group’s cold chain logistics business maintained its industry-leading market position while expanding into pharmaceutical cold chain and industrial temperature control sectors, achieving breakthroughs in market research and business exploration[37]. - CIMC Anrui's revenue in Q1 2025 increased by 24.2% year-on-year to RMB 5.765 billion, driven by efficient delivery capabilities and a robust order backlog, with total orders on hand amounting to approximately RMB 28.309 billion[34]. Shareholder Information - The number of common shareholders was 119,505 for A-shares and 29 for H-shares[21]. - The top shareholder, Hong Kong Central Clearing, holds 58.56% of shares, totaling 3,157,699,079[22]. Government and Regulatory - The company received government subsidies amounting to RMB 78,324 thousand during the reporting period[15]. - The company has implemented retrospective adjustments to its financial statements due to changes in accounting policies, affecting the operating costs and sales expenses for Q1 2024[10][12]. - The company has not undergone an audit for the Q1 2025 report[70].