Economic Environment - The company reported a challenging global economic environment in 2024, with ongoing geopolitical tensions and supply chain disruptions impacting recovery efforts[8]. - The company reported a decline in consumer confidence in China, influenced by the ongoing real estate debt crisis and the depreciation of the Renminbi against the US dollar[8]. - The company anticipates that the global economy in 2025 will be influenced by geopolitical tensions, trade relations, inflation, and rapid digital transformation[9]. Operational Strategy - The company aims to enhance operational efficiency by focusing on cost reduction and budget management, which is expected to improve profitability[9]. - The company plans to integrate artificial intelligence technology into its operations to adapt to the rapidly changing business environment and improve customer service[10]. - The company plans to leverage artificial intelligence and big data analytics to enhance service offerings and improve operational efficiency in response to market changes[20]. - The company is committed to strengthening post-loan management and optimizing collateral portfolios to enhance capital strength and risk management capabilities[9]. - The company emphasizes the importance of maintaining compliance and enhancing internal controls to manage risks effectively[9]. Financial Performance - Total revenue for the year ended December 31, 2024, was approximately HKD 18,863,000, a decrease of about HKD 17,370,000 compared to HKD 36,233,000 in 2023, primarily due to reduced interest income from short-term financing services in China[14]. - The expected credit loss provision for customer loans increased to approximately HKD 5,257,000, up about HKD 2,650,000 from HKD 2,607,000 in 2023, attributed to challenging market conditions in the short-term financing service sector in China[15]. - Administrative and other expenses decreased from approximately HKD 29,302,000 in 2023 to about HKD 23,172,000 in 2024, reflecting effective cost control measures implemented by the company[15]. - Financial costs decreased by approximately HKD 7,343,000 to about HKD 8,148,000 in 2024, down from HKD 15,491,000 in 2023, mainly due to the redemption of convertible bonds[16]. - The company recorded a pre-tax profit of approximately HKD 5,015,000 from short-term financing services, down from HKD 21,056,000 in 2023, primarily due to the significant revenue decline[19]. Debt and Cash Management - As of December 31, 2024, the company's debt-to-equity ratio was approximately 1.9, down from 2.2 in 2023, indicating improved financial stability[21]. - Cash and cash equivalents amounted to approximately HKD 72,243,000 as of December 31, 2024, down from HKD 93,183,000 in 2023, reflecting the need for ongoing cash flow management[21]. - The company anticipates utilizing internal cash flow and external fundraising activities to meet future cash flow requirements[21]. - The company issued new promissory notes amounting to HKD 13,650,000 to repay the outstanding principal of HKD 13,000,000 and a redemption premium of HKD 650,000 for the convertible bonds maturing on December 24, 2023[25]. - The company raised approximately HKD 7,800,000 from the placement of 15,640,000 shares at a price of HKD 0.5 per share, with a net amount of approximately HKD 7,500,000 after expenses[31]. Environmental and Social Responsibility - The company is committed to environmental and social responsibilities as part of its strategy to create value for stakeholders[48]. - The company aims to reduce greenhouse gas emissions and improve waste management as part of its environmental goals[49]. - The company has established a dedicated ESG working group to enhance transparency and accountability in its environmental, social, and governance practices[50]. - Stakeholder engagement is crucial for the company to identify significant ESG issues and set actionable goals[51]. - The company emphasizes compliance with environmental and social laws and regulations as part of its operational strategy[52]. Employee Management - The total number of employees as of December 31, 2024, is 39, unchanged from 2023[89]. - The employee turnover rate for 2024 is 15%, a significant decrease from 54% in 2023[96]. - The company has established employment policies that include equal opportunities and anti-discrimination measures, ensuring a fair workplace environment[86]. - The company provides competitive compensation and regularly reviews it to align with the job market[87]. - The company has implemented internal policies for employee training and development to enhance skills and knowledge[109]. Corporate Governance - The board of directors believes that sound corporate governance practices are essential for the company's sustainable development and the protection of stakeholder interests[140]. - The company has complied with all provisions of the corporate governance code as outlined in the GEM Listing Rules Appendix C1 during the fiscal year ending December 31, 2024[140]. - The board consists of six directors, including three executive directors and three independent non-executive directors[142]. - The company has established mechanisms to ensure the board can obtain independent opinions, enhancing its independence and effectiveness[151]. - The company is committed to providing transparent and timely financial information to stakeholders in accordance with GEM listing rules[185].

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 4.1 million, a decrease of about 93.4% compared to RMB 62.9 million for the year ended December 31, 2023[13]. - The gross loss decreased by approximately 36.3% to RMB 38.9 million from RMB 61.1 million in the previous year[13]. - The net loss for the reporting period was approximately RMB 98.3 million, a slight decrease of about 1.1% from RMB 99.4 million in the previous year[13]. - Revenue from licensing television drama or web drama rights was approximately RMB 3.1 million, down about 92.7% from RMB 42.7 million in the previous year[17]. - Revenue from investment as a non-executive producer for television dramas or web dramas was approximately RMB 1.0 million, a decrease of about 93.4% from RMB 14.9 million in the previous year[17]. - Total revenue decreased by approximately 93.4% from about RMB 62.9 million for the year ended December 31, 2023, to about RMB 4.1 million for the year ended December 31, 2024, due to tightened procurement budgets and delayed broadcast schedules from TV stations and online video platforms[22]. - Revenue from licensing TV series or online dramas dropped by approximately 92.7% from about RMB 42.7 million in 2023 to about RMB 3.1 million in 2024, primarily due to procurement budget tightening and delayed broadcast schedules[24]. - Sales costs decreased by approximately 65.3% from about RMB 124.0 million in 2023 to about RMB 43.0 million in 2024, mainly due to reduced licensing costs and increased inventory write-downs[28]. - Other income decreased from RMB 1.075 million in 2023 to RMB 0.484 million in 2024, with government grants and interest income contributing to the decline[34]. - Other income and gains decreased by approximately 55.0% from about RMB 1.1 million for the year ended December 31, 2023, to about RMB 0.5 million for the year ending December 31, 2024, primarily due to a reduction in government subsidies[35]. - Sales and distribution expenses decreased by approximately 71.5% from about RMB 4.3 million for the year ended December 31, 2023, to about RMB 1.2 million for the year ending December 31, 2024, mainly due to a reduction in advertising and marketing expenses[36]. - Administrative expenses increased by approximately 2.6% from about RMB 14.4 million for the year ended December 31, 2023, to about RMB 14.7 million for the year ending December 31, 2024, primarily due to an increase in compensation and travel expenses[37]. - Financial asset impairment losses recorded were approximately RMB 31.0 million, mainly due to an increase in long overdue trade receivables from certain customers[38]. - Net loss decreased by approximately 1.1% from about RMB 994 million for the year ended December 31, 2023, to about RMB 983 million for the year ending December 31, 2024, with the net loss margin increasing from approximately -158.1% to -2,384.6%[42]. Business Strategy and Market Outlook - The company plans to adjust its business focus based on market trends and viewer habits, continuing to explore opportunities in television and web drama production and investment[14]. - The overall industry outlook remains challenging, prompting the company to seek new opportunities in the film and television industry[14]. - The company continues to expand its web drama production business in response to the growing popularity of web dramas[17]. - The company is negotiating with television stations regarding the broadcast schedule of a self-produced television drama, which was completed in April 2024[18]. - Six web dramas produced by the company are scheduled to air between April 2024 and March 2025[20]. - The company will maintain a cautious approach to project selection and cost control while exploring opportunities in online dramas and TV series[21]. - The company anticipates a challenging market environment due to economic instability and will closely monitor market conditions[21]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[80]. - The company has adopted the corporate governance code as a basis for its governance practices since its listing date, ensuring compliance with applicable rules[80]. - The board emphasizes the importance of a healthy corporate culture aligned with the company's vision and strategic goals[82]. - The board consists of 11 directors, including 6 executive directors and 4 independent non-executive directors, ensuring compliance with listing rules regarding independence[89]. - The company has established a written guideline for employees regarding securities trading to ensure compliance with insider trading regulations[86]. - The board has set up three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[87]. - The roles of the Chairman and CEO are clearly separated to ensure a balance of power and effective governance[93]. - The board has held meetings with independent non-executive directors to discuss company affairs without the presence of executive directors[94]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their compliance with independence guidelines[92]. - The board is responsible for strategic planning and oversight of the company's operations and financial performance[88]. - The company has established procedures for directors to seek independent professional advice at the company's expense[100]. - The company will review its board diversity policy annually to ensure its effectiveness[116]. Employee and Workplace Practices - As of December 31, 2024, the employee gender distribution is approximately 43.3% male and 56.7% female, reflecting the company's commitment to gender diversity[92]. - The company has a total of 30 full-time employees, consisting of 17 females and 13 males, and will continue to maintain at least one female employee[120]. - The employee turnover rate during the reporting period was zero, indicating no loss of staff[168]. - The company has implemented a five-day work week and provides various paid leave options, including maternity and paternity leave[173]. - The company provides comprehensive health insurance and social security benefits, including basic pension and medical insurance[173]. - The company organizes team-building activities and fitness programs to enhance employee cohesion and well-being[175]. - The company emphasizes equal employment opportunities, ensuring no discrimination based on race, gender, or other protected characteristics[170]. - The company actively recruits talent through partnerships with universities and recruitment agencies, hiring one new employee during the reporting period[170]. - The percentage of trained employees by gender is 50% male and 50% female, with 40% of senior management receiving training[178]. - The average training hours for employees are 35 hours per person for both male and female employees, with senior management receiving an average of 40 hours[178]. - The company conducted over 20 internal training sessions, focusing on areas such as television drama sales, script selection, and customer maintenance[177]. Environmental, Social, and Governance (ESG) Reporting - The annual ESG report covers the company's management policies and performance from January 1, 2024, to December 31, 2024, focusing on sustainable development[140]. - The ESG report will provide quantitative data on environmental and social aspects, with comparative data included in future reports[142]. - The report's scope remains consistent with the previous year, covering the company's overall performance in environmental, social, and governance areas[143]. - The report is prepared in accordance with the ESG reporting guidelines set by the Hong Kong Stock Exchange[144]. - The board of directors is responsible for the ESG strategy and reporting, ensuring effective risk management and internal control systems[147]. - The company aims to expand its production business in online dramas and films, responding to the growing popularity of these formats[148]. - Key ESG issues identified include product quality, intellectual property protection, customer relationship management, and employee management[150]. - The company has established a comprehensive ESG management system, enhancing its performance in environmental, social, and governance aspects[152]. - The company generated 8.2 tons of indirect greenhouse gas emissions in CO2 equivalent, with an intensity of 20.0 kg CO2 equivalent per 10,000 revenue[160]. - The total electricity consumption was 3,816 kWh, with an intensity of 9.3 kWh per 10,000 revenue, and gasoline consumption was 2,680 liters, with an intensity of 6.5 liters per 10,000 revenue[163]. - The company produced 1.2 kg of hazardous waste (selenium cartridges) and 82 kg of non-hazardous waste (paper), with intensities of 2.9 g and 200.0 g per 10,000 revenue respectively[160]. - The company has not experienced any environmental service incidents or received complaints, penalties, or sanctions related to environmental pollution during the reporting period[165]. - The company actively encourages employees to reduce the use of natural resources and promotes recycling initiatives[165]. - The company has implemented energy-saving measures, including the use of LED lights that save over 50% compared to traditional fluorescent lights[161]. - The company plans to further promote internal energy savings and adhere to green development principles in the future[161]. - The group is committed to continuing its environmental, social, and governance reporting annually to promote sustainable business growth[193].

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved a total revenue of RMB 24,270,499,000, representing a year-on-year decrease of 1.0%[11] - The company's net profit attributable to shareholders was RMB 1,677,600,000, reflecting a year-on-year decline of 11.5%[11] - The company's operating revenue decreased by 1% to RMB 24.27 billion, with a 12% reduction in profit attributable to shareholders, amounting to RMB 1.68 billion[22] - The total revenue for the previous year was RMB 24,519.4 million, indicating a slight decrease in overall performance year-over-year[27] - For the fiscal year ending December 31, 2024, the company's total revenue was RMB 24,270.5 million, a decrease of 1% compared to RMB 24,519.4 million in 2023[30] - The company's net profit attributable to shareholders for 2024 was RMB 6,246.2 million, down 4% from RMB 6,487.8 million in 2023[30] - The total revenue from water treatment services in China reached RMB 8.75 billion, with a gross margin of 57%[23] - The company's overseas water treatment services generated revenue of RMB 429.2 million, with a gross margin of 15%[23] - The water treatment services segment generated RMB 11,622.2 million in revenue, accounting for 47% of total revenue, with a profit attributable to shareholders of RMB 4,672.2 million, representing a 72% margin[26] - The construction of BOT water projects contributed RMB 2,616.0 million in revenue, with a gross profit margin of 17% and a profit attributable to shareholders of RMB 286.8 million[24] - The technology services and equipment sales segment reported revenue of RMB 2,549.4 million, with a gross profit margin of 42% and a profit attributable to shareholders of RMB 499.7 million[24] - The revenue from urban resource services was RMB 6,027.7 million, with a profit attributable to shareholders of RMB 108.5 million, reflecting a 2% margin[24] - The total revenue from sewage and reclaimed water treatment services was RMB 8,748.8 million, with a net profit attributable to shareholders of RMB 3,873.2 million[38] Strategic Focus and Development - The company is focusing on cash flow management and enhancing operational efficiency as part of its strategic transformation towards high-quality development[10] - The company is actively pursuing market expansion and technological innovation to support its strategic goals[12] - The company plans to focus on light asset transformation and deepen strategic changes in 2024, aiming to enhance operational efficiency[14] - The company has successfully secured over a hundred light-asset project contracts, contributing to the steady increase in the proportion of light-asset business[12] - The light-asset business is becoming a significant contributor to the company's overall performance, enhancing its "new content" and "gold content"[12] - The establishment of two technology platforms, Beikong Water Future Technology Co., Ltd. and Beikong Cloud Service Co., Ltd., aims to drive innovation and sustainable development[17] - The company is committed to integrating sustainable development principles into its long-term strategy, enhancing customer communication, and improving service quality[18] - The company has established a business strategy focused on "quality growth, valuable assets, cash profits, and capable organizations," aiming to enhance core capabilities such as quality delivery and smart operations[100] Governance and Corporate Structure - The board of directors is committed to maintaining high corporate governance standards to ensure transparency and protect shareholder rights[99] - The board consists of various members, including executive, non-executive, and independent directors, with a focus on compliance with corporate governance codes[103][104] - The board aims to ensure gender diversity and avoid a single-gender composition among its members[113] - The company has a board diversity policy in place since 2013, focusing on various factors such as gender, age, and professional experience for board member selection[111] - The board has appointed new directors to maintain a balance of experience and skills, with recent appointments made in February and June 2024[115] - The company has established four committees under the board to enhance governance practices[124] - The audit committee is responsible for overseeing the integrity of the company's financial statements and the relationship with the auditor[125] - The company has adopted a nomination policy outlining the selection criteria and procedures for new and reappointed directors[130] Risk Management and Compliance - The company has established a risk management framework consisting of "three lines of defense" to ensure effective risk management and internal controls[143] - The risk management department has implemented strict guidelines and procedures to monitor each investment unit, aiming to reduce risks and external impacts[146] - The company has taken corrective actions based on last year's findings and deficiencies in internal controls[147] - The audit committee reported no significant internal control deficiencies as of December 31, 2024, affirming the effectiveness of the group's risk management and internal control systems[149] - The group has established a whistleblowing policy to allow employees and stakeholders to report potential misconduct confidentially[151] - The group has implemented an anti-bribery and anti-corruption system to prevent fraudulent activities among employees[152] Shareholder Engagement and Communication - The company is committed to regular communication and reasonable disclosure of information to shareholders, utilizing various channels for effective engagement[162] - The board believes that effective investor relations play a crucial role in creating shareholder value and enhancing company transparency[163] - The company has actively taken measures to improve communication with shareholders and increase transparency as of the fiscal year ending December 31, 2024[165] - The company has established a dedicated email account for inquiries from shareholders or potential investors[162] - The company has a policy in place to solicit feedback from shareholders and institutional investors[162] Employee and Social Responsibility - The company emphasizes the importance of maintaining close relationships with employees, customers, and business partners to ensure sustainable development[138] - The company provides competitive compensation and benefits to employees based on their merits and performance[138] - The gender diversity ratio among employees is approximately 53% male and 47% female, indicating satisfactory gender diversity within the workforce[118] Financial Instruments and Debt Management - The total debt amounted to RMB 75,502,200,000, including bank and other borrowings of RMB 60,931,000,000 and corporate bonds of RMB 14,571,200,000[90] - The debt-to-equity ratio as of December 31, 2024, was 1.19, up from 1.18 as of December 31, 2023, primarily due to increased borrowings[91] - The company issued medium-term notes with an outstanding principal amount of RMB 1,000,000,000 at an annual interest rate of 4.49%, maturing in January 2029[199] - A wholly-owned subsidiary issued medium-term notes with an outstanding principal of RMB 2,000,000,000, maturing in March 2028 and March 2030, with interest rates of 3.43% and 3.98% respectively[199] - The company has outstanding medium-term notes of RMB 1,500,000,000 at an interest rate of 3.98%, maturing in April 2029[200]

Financial Performance - In 2024, the company's operating revenue reached RMB 529.4 billion, a year-on-year increase of 3.1%, with service revenue at RMB 482 billion, up 3.7%[22]. - EBITDA for 2024 was RMB 140.8 billion, reflecting a 2.9% year-on-year growth, while net profit increased by 8.4% to RMB 33 billion, with basic earnings per share at RMB 0.36[22]. - The total telecom business revenue for the year reached RMB 1.74 trillion, representing a year-on-year growth of 3.2%[57]. - The company's net profit attributable to shareholders was RMB 33.01 billion, reflecting an 8.4% increase year-on-year[84]. - Operating expenses totaled RMB 489.61 billion, an increase of 2.8% from 2023, constituting 92.5% of operating revenue[92]. Dividend Distribution - The company plans to distribute cash dividends amounting to approximately RMB 84.83 billion, with a proposed final dividend of RMB 0.0927 per share for the year 2024, which represents 72% of the net profit attributable to shareholders[5]. - The total dividend for 2024, including the interim dividend of RMB 0.1671 per share, amounts to RMB 0.2598 per share, totaling approximately RMB 23.774 billion, which represents 72% of the company's profit attributable to shareholders for the year[129]. - The proposed dividend distribution plan is pending approval at the 2024 annual general meeting[6]. - The final dividend is expected to be paid on or before July 18, 2025, following approval at the 2024 Annual General Meeting[130]. Strategic Focus and Development - The company is focused on expanding its digital information services, including cloud computing, big data, and artificial intelligence[2]. - The company is committed to transforming into a service-oriented, technology-driven, and secure enterprise, emphasizing the upgrade of digital infrastructure and high-quality development[21]. - The company aims to deepen international cooperation and innovation platform construction to foster a mutually beneficial ecosystem[78]. - The company is committed to building a service-oriented, technology-driven, and secure enterprise, focusing on cloud transformation and digital infrastructure development[118]. Risk Management - The company has outlined various risks in its report, including economic, policy environment adaptation risks, and technology innovation risks[8]. - Future strategic developments and operational plans are subject to known and unknown risks, which may lead to significant differences from the forward-looking statements made[7]. - The company acknowledges risks from economic and policy environments, emphasizing the need for adaptation and innovation to maintain high-quality development[121]. - The company is aware of uncertainties in international business expansion due to changing policies and geopolitical factors, and it plans to strengthen compliance and risk management[125]. Technological Advancements - The company is focusing on AI-driven innovations to enhance product and service offerings, aiming to meet new digital consumption demands[27]. - The company has accelerated the integration of AI capabilities into its customer service processes, with the proportion of intelligent customer service increasing by 13.5 percentage points by the end of 2023[29]. - The company has developed a fully integrated quantum computing platform, achieving significant breakthroughs in distributed reasoning and lossless transmission technologies[72]. - The company has established the largest quantum computing cluster in China and is actively advancing quantum metropolitan area networks in 16 key cities, with the Hefei quantum metropolitan area network recognized as a national digital China typical case[38]. Market Presence and Customer Engagement - The company is focused on enhancing its market presence through the integration of digital technologies and the expansion of its service offerings in the smart home sector[27]. - The number of terminal users on the Tianyi IoT platform has reached 630 million, supporting large-scale and reliable connections[47]. - The company has launched over 50 industry-specific large model applications across various sectors including government, emergency, and education[70]. - The company has launched over 45,000 industry application projects in sectors such as electricity, chemicals, and mining, enhancing its "5G + AI" integrated product system[74]. Corporate Governance - The company has maintained a dual structure of governance with a board of directors and a supervisory board, ensuring independent oversight of management activities[177]. - The company has been recognized for its corporate governance efforts, receiving multiple awards including the "Most Respected Company in Asia" for 14 consecutive years from Institutional Investor[180]. - The company emphasizes risk management and internal control systems, which include clear organizational structures and comprehensive risk assessments[176]. - The company has a dedicated investor relations department to facilitate communication with shareholders and investors, enhancing transparency[179]. Human Resources and Leadership - The company is currently led by a team with extensive experience in the telecommunications industry, including executives with backgrounds in engineering and management[189][191][194][196][199]. - The executive team includes professionals with significant experience in both financial management and telecommunications operations, indicating a strong leadership foundation[189][191][194][196][199]. - The company is committed to leveraging its resources and expertise to drive growth and innovation in the telecommunications sector[189][191][194][196][199]. - The management team has a proven track record in leading major telecommunications projects and initiatives, which is expected to contribute to future performance[189][191][194][196][199].

Financial Performance - Revenue decreased by 8.6% to RMB 1,851.5 million from RMB 2,025.2 million year-on-year[27] - Profit attributable to shareholders dropped by 38.9% to RMB 156.4 million, down from RMB 256.1 million[27] - Core profit attributable to shareholders decreased by 33.5% to RMB 157.2 million from RMB 236.5 million[27] - Basic earnings per share decreased by 38.9% to RMB 1.43 from RMB 2.34[27] - Total revenue for the fiscal year 2023 was RMB 202.5 billion, a 12.2% increase from RMB 180.3 billion in 2022[39] - Operating profit for 2023 was RMB 40.5 billion, up from RMB 34.9 billion in 2022, reflecting a 16.3% increase[39] - Net profit attributable to shareholders for 2023 was RMB 25.6 billion, compared to RMB 23.3 billion in 2022, marking a 9.8% increase[39] - The company's revenue for the audited year ending December 31, 2024, was RMB 185.15 billion, with a net profit attributable to shareholders of RMB 15.64 billion[78] Sales and Contracts - Contracted property sales amounted to RMB 3,106.9 million, a slight increase of 0.3% compared to RMB 3,098.1 million in the previous year[27] - The company achieved a contract property sales amount of RMB 310.69 billion, with a year-on-year growth of 0.3%, making it the only top ten real estate company in China to realize sales growth[73] - The average contracted sales price per square meter was RMB 27,047, representing a year-on-year increase of 16.6%[93] - The cumulative contract property sales amount for the Shenzhen Deep Bay project reached RMB 156.2 billion, with sales expected to commence in June 2024 and completion anticipated in 2026[120] - The cumulative contract property sales amount for the Shenzhen Time Horizon project reached RMB 45.8 billion, with sales starting in September 2023 and expected completion in 2024[122] - The company’s Shanghai project set a national record with a sales amount of RMB 196.5 billion on its opening day, totaling RMB 387.3 billion in cumulative contract property sales by December 2024, with completion expected in 2025[131] Land Acquisition and Reserves - Total land reserves decreased by 21.2% to 4,255,000 square meters from 5,403,000 square meters[27] - New land reserves added were 416,000 square meters, down 45.5% from 764,000 square meters[27] - The company has acquired 22 land parcels in 12 cities with a total purchase amount of RMB 80.61 billion, leading the industry in land acquisition[81] - The company acquired land in key cities with a total investment amount of RMB 636.2 billion, accounting for 91.4% of the total land acquisition, with RMB 511.6 billion in first-tier cities alone, representing 73.5% of the equity land price[100] - The total land reserve of the company's subsidiaries (excluding China Overseas Hong Kong) is 28.77 million square meters, with an equity construction area of 25.43 million square meters as of December 31, 2024[104] Financial Ratios and Debt Management - The interest coverage ratio fell to 2.8 times from 3.9 times, a decline of 1.12 times[27] - Net gearing ratio improved to 29.2% from 38.7%, a reduction of 9.53 percentage points[27] - The net debt ratio improved to 38.7% in 2023 from 42.9% in 2022, indicating better financial health[41] - The company maintained a debt-to-asset ratio of 55.8% and a net gearing ratio of 29.2%, reflecting a strong financial position[81] - The group’s total borrowings amounted to RMB 241.56 billion, with 11.8% due within one year[196] Dividends - The interim dividend was reduced by 14.3% to HKD 0.30 from HKD 0.35, and the final dividend decreased by 33.3% to HKD 0.30 from HKD 0.45[27] Market Position and Recognition - The company was rated A- by S&P Global, reflecting strong financial performance and governance[54] - The company was recognized as the top real estate developer in China for delivery capability in 2023 by CRIC[44] - The company’s market share in first-tier cities reached the top three, with sales in Shanghai amounting to RMB 70.45 billion, contributing to 60.6% of total sales from its series of companies[79] Commercial Property Development - The company’s commercial property revenue increased by 12.1% year-on-year, reaching RMB 7.13 billion, with a total operational area increase of 300,000 square meters[79] - The company is actively expanding its commercial property operations, with a focus on diverse product offerings and strategic urban positioning[170] - The company reported a total of 123 operational commercial projects, with a combined area of 758,000 square meters[174] - The shopping center business achieved a rental income growth of 34.6% year-on-year, reaching RMB 2.26 billion, with overall occupancy at a high level of 95%[177] Strategic Initiatives and Future Plans - The company aims to launch a series of "Good Houses" in major cities like Beijing and Shanghai by 2025, capitalizing on the opportunity for greater value creation[86] - The company plans to enhance its market presence in first and second-tier cities in mainland China through strategic property development[118] - The company is focusing on developing mixed-use projects in key urban areas, enhancing its market presence and product offerings[133] - The company is focusing on integrating supply chain resources to enhance service capabilities and reduce costs, aiming for a win-win ecosystem in the building materials industry[190]

Financial Performance - Revenue for 2024 reached RMB 5,492,205,000, a 20.5% increase from RMB 4,558,524,000 in 2023[9] - EBITDA for 2024 was RMB 1,174,537,000, compared to RMB 135,845,000 in 2023, marking a significant recovery[9] - The company reported a net loss of RMB 1,389,745,000 for 2024, an improvement from a loss of RMB 1,696,788,000 in 2023[9] - The company's operating revenue for 2024 was approximately RMB 5,492,205,000, a year-on-year increase of 20.5%[23] - Aviation revenue amounted to RMB 2,667,662,000, reflecting a growth of 27.2% year-on-year, while non-aviation revenue was RMB 2,824,543,000, up 14.7%[23] - The company's annual net loss for the fiscal year ending December 31, 2024, was RMB 1,389,745,000, representing an improvement of approximately 18.1% from the previous year's loss[139] - The company's operating expenses for 2024 were RMB 5,856,756,000, a decrease of about 1.0% from the previous year despite rising costs due to increased business volume[127] - The company's depreciation and amortization expenses decreased by approximately 2.6% to RMB 1,509,409,000 due to adjustments in the estimated useful life of certain assets[134] Operational Highlights - The company operated 51 airlines at Beijing Capital Airport by the end of 2024, serving 227 destinations across 54 countries and regions[12] - In 2024, the total number of aircraft takeoffs and landings at Beijing Capital Airport reached 433,572, an increase of 14.2% year-on-year[19] - Passenger throughput for the year was 67,367,428, representing a growth of 27.4% compared to the previous year[19] - Cargo and mail throughput totaled 1,443,286 tons, marking a 29.3% increase year-on-year[19] - The international passenger throughput saw a significant increase of 103.0%, reaching 12,549,141[129] Strategic Initiatives - The introduction of upgraded fast-line products in collaboration with major airlines improved operational efficiency[18] - New differentiated services such as "Home Away from Home" and "Worry-Free Flight Delay" were launched to improve customer experience[18] - The company plans to continue enhancing service quality and operational efficiency in 2025[16] - The company aims to expand its international route network and enhance its competitive position in the global aviation market[29] - The company is committed to sustainable development by increasing the proportion of renewable energy at Beijing Capital Airport[29] Governance and Leadership - The company appointed a new board of directors on June 20, 2023, with terms lasting until the 2025 annual general meeting[100] - The company announced the appointment of Han Zhiliang as the new general manager and Li Zhiyong as the chief financial officer on June 20, 2023[100] - The board of directors includes members with backgrounds in finance and management, which may contribute to sound financial decision-making[105] - The company has a strong leadership team with diverse backgrounds in law, finance, and engineering, enhancing its operational capabilities[115][116][117][118][119][120] Compliance and Risk Management - The company has a strict compliance framework to adhere to significant laws and regulations impacting its operations[39] - The company has implemented a risk management and internal control system to mitigate legal and reputational risks[39] - The company confirms that all related party transactions comply with the relevant regulations under the listing rules, ensuring fair pricing and terms[83] Shareholder Information - The company reported a cumulative loss of RMB 4,380,344,000 as of December 31, 2024, with no distributable reserves available for dividends[48] - The company has not declared any final dividends for the fiscal year ending December 31, 2024[54] - As of December 31, 2024, the total issued share capital of the company is 4,579,178,977 shares, with H shares accounting for 1,879,364,000 shares and domestic shares for 2,699,814,977 shares[84] Employee and Workforce - The total number of employees decreased to 1,516 in 2024 from 1,542 in 2023[146] - The company has a total of 1,018 male employees, accounting for approximately 67.2%, and 498 female employees, accounting for about 32.8%[160] Future Outlook - The management remains optimistic about future growth prospects as the aviation industry continues to recover post-pandemic[127] - The company plans to continue focusing on cost reduction measures while enhancing operational efficiency in the coming year[127] - The company will continue to explore merger and acquisition opportunities to achieve diversification and growth[113]

Financial Performance - The group reported a contracted sales amount of approximately RMB 2.179 billion, a decrease of about 56.3% year-on-year, with a contracted area of approximately 33,070 square meters, down 48.3% compared to the previous year[10]. - The group's revenue for the reporting period was approximately RMB 11.986 billion, with property development revenue accounting for approximately RMB 11.973 billion[10]. - The gross profit for the group was approximately RMB 1.181 billion, with property development gross profit contributing approximately RMB 1.167 billion[10]. - The net loss for the group was approximately RMB 1.304 billion, with the attributable net loss to equity holders of the company being approximately RMB 1.622 billion[10]. - The basic loss per share for the company was approximately RMB 0.27, and the board resolved not to declare a final dividend for the year ended December 31, 2024[10]. - The company reported a contracted sales amount of approximately RMB 217.9 million, a decrease of about 56.3% compared to the same period last year[24]. - The total revenue for the reporting period was approximately RMB 1,198.6 million, an increase of about 299.0% year-on-year, with property development revenue contributing approximately RMB 1,197.3 million, up by about 301.5%[24]. - The net loss attributable to equity holders was approximately RMB 162.2 million, an increase of about 6.9% compared to the previous year, primarily due to increased interest expenses and impairment of recoverable land costs[24]. - The company will not declare a final dividend for the year ending December 31, 2024[18]. - The distributable reserves of the group as of the reporting period amount to RMB 4.593 billion, a decrease from RMB 7.890 billion as of December 31, 2023[125]. Land and Property Development - As of the end of the reporting period, the total land reserve area reached approximately 2,173,365 square meters, with an average cost of land reserve at approximately RMB 875.6 per square meter[10]. - The total land reserve area at the end of the reporting period was approximately 2,173,365 square meters[17]. - The total completed building area of the group is approximately 3,282,916 square meters, with land reserves totaling about 2,173,365 square meters[29]. - The group has approximately 192,908 square meters of completed but unsold building area and 842,232 square meters of properties under development[29]. - The planned total building area for future development is approximately 1,138,225 square meters[30]. - The group retains ownership of strategic commercial properties to generate stable income, with investment properties totaling about 21,613 square meters[29]. - The total area of completed projects is 1,246,880 square meters, with a total construction area of 3,282,916 square meters[37]. - The company has a total of 1,221,811 square meters of attributable construction area across its projects[39]. - The company is developing the Beigu Nian project, which has a total area of 139,169 square meters planned for completion by May 2026[41]. - The company is expanding its commercial projects, including the Shining Center in Jinzhong, with a planned area of 3,461 square meters expected to be completed by December 2025[41]. Market Outlook and Strategy - The real estate market in China is gradually stabilizing, with a focus on risk control and project profitability in land acquisition strategies[13][14]. - For 2025, the real estate market is expected to enter a more rational and healthy development phase, with a focus on improving housing supply and demand structure[19]. - The company plans to focus on inventory reduction and expanding the improvement housing market as its core strategic direction for 2025[21]. - The company aims to enhance product competitiveness by optimizing product structure and increasing the application of new materials and intelligent technologies[21]. - The company will actively seek diversified financing channels and strategic partners to strengthen the stability of its capital chain[21]. - The company will continue to focus on the high-end improvement housing market to meet consumer demand for high-quality living environments[22]. Operational Challenges and Responses - The company is actively responding to industry changes, with sales performance facing significant challenges but overall risks remaining within controllable limits[15]. - The company is increasing investment in research and development to enhance product and service upgrades, focusing on digital transformation and personalized living experiences[14]. Corporate Governance and Compliance - The company emphasizes high standards of corporate governance and has adhered to all applicable codes during the reporting period[161]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balance of expertise in financial accounting and corporate governance[170]. - The company has established mechanisms to ensure the board receives independent views and opinions, promoting a culture of open communication[177]. - The company has a dedicated legal department to ensure compliance with laws and regulations, maintaining good relationships with regulatory bodies[105]. - The audit committee has fulfilled its corporate governance responsibilities and reported to the board during the reporting period[194]. Employee and Supplier Relations - The company emphasizes the importance of employee satisfaction and development through appropriate compensation and comprehensive evaluation plans[108]. - The company maintains good relationships with suppliers and has signed strategic cooperation agreements to ensure quality construction and material supply[110]. - The company encourages gender balance among employees, with a male-to-female ratio of approximately 60% to 40%[180]. Financing and Investment Activities - The company completed the sale of a 51% stake in Jinzhong Development for a total consideration of RMB 100.6 million, recognizing an investment gain of RMB 33.8 million[71]. - The company agreed to acquire a 16.1074% stake in Sichuan Chenxing for RMB 45.0 million, which will become a wholly-owned subsidiary[72]. - The company plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, with internal resources and bank loans expected to meet funding needs[77]. Shareholder Information - The board aims to maintain a stable and sustainable dividend policy to provide returns to shareholders[112]. - The company has decided not to declare a final dividend for the year ending December 31, 2024, similar to the previous year[116]. - The company has not entered into any stock-linked agreements during the reporting period[121]. - The company has not granted any stock options under the stock option plan during the reporting period[149].

Revenue and Profitability - The group's revenue increased by 251.9% from HKD 38,267,000 in the previous year to HKD 134,680,000 in the current year, primarily due to increased rental income from investment properties and new construction services[17]. - Profit for the year was HKD 2,565,000, compared to HKD 2,182,000 in the previous year, indicating a positive growth trend[29]. - The company reported a net profit of HKD 2,565,000 for the year ending December 31, 2024, compared to HKD 2,509,000 in the previous year, reflecting a growth of approximately 2.2%[175]. - Operating profit for 2024 was HKD 26,489,000, compared to HKD 10,706,000 in 2023, reflecting an increase of 147%[171]. - The company reported a basic and diluted earnings per share of HKD 0.05 for 2024, down from HKD 0.09 in 2023[171]. Rental Income - Rental income from investment properties in Hong Kong rose by 11% to HKD 7,096,000, up from HKD 6,398,000, driven by higher average rental income per apartment[18]. - The group generated HKD 81,887,000 in rental income from approximately 240 leased properties in China, a significant increase from zero in the previous year, as leasing arrangements commenced in April 2024[18]. - The company has a stable rental income from the leasing agreement, ensuring cash flow for the Silicon Valley Industrial Park[34]. Construction Services - Construction services revenue increased by HKD 23,108,000, attributed to the establishment of a new business segment in the current year[20]. - The company has expanded into construction services to diversify its offerings and create additional value, leveraging its expertise and industry relationships[15]. - The company aims to enhance property management and related services to stimulate future revenue and profit growth[34]. Financing and Costs - Financing costs surged by 186.0% to HKD 23,704,000 from HKD 8,289,000, primarily due to increased interest payments on lease liabilities in China[28]. - The company incurred financing costs of HKD 23,704,000 in 2024, compared to HKD 8,289,000 in 2023, which is an increase of 186%[171]. - Employee costs decreased by 20.8% to HKD 16,562,000 from HKD 20,922,000, mainly due to a reduction in workforce[23]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to HKD 1,075,264,000, compared to HKD 598,619,000 in 2023, indicating an increase of 79.5%[172]. - The outstanding bank loans amount to HKD 144,000,000 as of December 31, 2024, down from HKD 160,000,000 in 2023[30]. - The asset-liability ratio as of December 31, 2024, is 106%, a significant decrease from 179% in 2023[39]. - Current liabilities decreased from HKD 388,801,000 in 2023 to HKD 263,395,000 in 2024, a reduction of 32.3%[172]. Shareholder and Governance - The company did not recommend a final dividend for the year ending December 31, 2024[54]. - The company's available distributable reserves as of December 31, 2024, were zero, unchanged from the previous year[62]. - The company has received written confirmation from its controlling shareholder for continued financial support for at least twelve months[36]. - The company’s board of directors includes Mr. Huang Binghuang, who holds 60.01% of the company's shares, amounting to 3,812,395,735 ordinary shares[70]. Compliance and Regulations - The company has complied with all relevant laws and regulations in Bermuda, Hong Kong, mainland China, and the British Virgin Islands for the year ending December 31, 2024[51]. - The company has complied with corporate governance codes and is not aware of any violations of applicable laws and regulations[126]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance throughout the year[101]. Audit and Financial Reporting - The consolidated financial statements for the year ending December 31, 2024, will be audited by the appointed auditor, C.P.A. Limited[96]. - The company is responsible for preparing financial statements that are true and fair in accordance with the Hong Kong Financial Reporting Standards[162]. - The audit report provides reasonable assurance that the financial statements are free from material misstatement due to fraud or error[164]. Sustainability and Development - The company has made progress in sustainable development while seeking business growth, optimizing energy and resource efficiency, and promoting environmental protection[50]. - The company is committed to maintaining gender diversity and equality among its employees and senior management[124]. Future Outlook - The company plans to implement cost-reduction measures to improve its financial position and cash flow[182]. - The company has received assurance from its controlling shareholder to provide sufficient funds to meet its upcoming liabilities[182].

Financial Performance - The company recorded revenue of approximately HKD 429.3 million for the fiscal year 2024, a decrease of about HKD 67.3 million or 13.6% compared to HKD 496.6 million for the fiscal year 2023[15]. - The company recorded a net profit of approximately HKD 43.2 million for fiscal year 2024, a decrease of about HKD 13.8 million or 24.3% compared to approximately HKD 57.0 million in fiscal year 2023[23]. - Gross profit increased by approximately HKD 7.6 million or 7.1% to about HKD 114.5 million for the fiscal year 2024, with a gross margin of 26.7% compared to 21.5% in fiscal year 2023[18]. - Total revenue for the year ended December 31, 2024, was HKD 429,312,000, a decrease of 13.5% compared to HKD 496,631,000 in 2023[138]. - Net profit for the year was HKD 43,190,000, down 24.1% from HKD 57,003,000 in the previous year[138]. - Basic and diluted earnings per share decreased to HKD 4.3 from HKD 5.7, representing a decline of 24.6%[138]. - The total comprehensive income for the year 2024 was HKD 43,140 thousand, down from HKD 56,958 thousand in 2023, representing a decline of approximately 24.5%[142]. Revenue Sources - Design and construction projects accounted for approximately HKD 404.7 million, representing 94.3% of total revenue, while maintenance and repair services generated about HKD 24.6 million, accounting for 5.7% of total revenue[15]. - The five largest customers accounted for approximately 93.2% of the total revenue, with the largest single customer contributing 62.9%[99]. - The company is strategically focusing on maintenance and repair projects to diversify its project portfolio and maintain stable revenue sources[17]. Project Management and Operations - The company successfully completed several notable projects, including the Kai Tak Sports Park and CLP Headquarters, which received high praise from developers and general contractors[8]. - The company is set to complete the façade contract for the West Kowloon commercial development project under Sun Hung Kai Properties by June 2025, further enhancing its position in the Hong Kong façade market[9]. - The company has not secured any major new projects following the completion of current projects expected by August 2025, indicating a limited project pipeline[9]. - The company is closely monitoring the recovery of the construction industry and will cautiously handle project bidding due to the current market conditions and intense competition[9]. - The construction industry continues to face significant pressure due to reduced project demand and intense competition, impacting overall revenue and future opportunities[8]. Financial Management - The board has resolved to declare an interim dividend and a special dividend for the fiscal year 2024, but has not recommended a final dividend to maintain reasonable financial reserves[9]. - The company is committed to prudent financial management while exploring strategic opportunities to enhance business growth and operational resilience[14]. - As of December 31, 2024, the company had no bank borrowings, resulting in a debt-to-equity ratio of zero[26]. - Cash and cash equivalents increased to approximately HKD 222.7 million as of December 31, 2024, up by about HKD 166.8 million from approximately HKD 55.9 million as of December 31, 2023[26]. - The company declared a special dividend of HKD 40,120 thousand for the year 2024, in addition to interim dividends totaling HKD 20,060 thousand[142]. Governance and Compliance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[46]. - The company has adopted the corporate governance code and has complied with its provisions during the 2024 fiscal year, except for the separation of roles between the chairman and CEO[47]. - The independent non-executive directors have complied with the relevant regulations as of the report date[50]. - The company has established a reliable supplier and subcontractor base with over 25 years of operational history, ensuring quality control[39]. - The company has a robust governance framework, with independent directors providing oversight and strategic guidance[113]. Risk Management - The company’s operations are subject to overall economic and market risks, which could significantly impact project profitability and financial performance[42]. - The risk management committee conducted a risk assessment in 2024, identifying key risks recorded in a risk register[64]. - The company believes its risk management and internal control systems are effective and adequate[65]. Cash Flow and Assets - The cash generated from operating activities for 2024 was HKD 183,254 thousand, an increase of approximately 35.2% from HKD 135,514 thousand in 2023[144]. - The net cash from investing activities in 2024 was HKD 89,388 thousand, a significant recovery from a net cash outflow of HKD 79,484 thousand in 2023[145]. - The company's total equity decreased to HKD 276,990,000 from HKD 313,567,000, a decline of 11.6%[139]. - The company's cash and cash equivalents increased significantly from HKD 55,939 thousand at the beginning of 2023 to HKD 222,715 thousand by the end of 2024, marking an increase of approximately 297.5%[145]. Accounting and Financial Reporting - The financial statements are prepared using the historical cost method, except for certain financial instruments measured at fair value[149]. - The financial statements are presented in Hong Kong dollars (HKD), which is also the functional currency of the company[151]. - The group is responsible for preparing consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[129]. - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[120]. - The company has established accounting policies for recognizing revenue and other income, ensuring compliance with relevant financial reporting standards[184].

Financial Performance - In 2024, China Foods achieved a revenue of approximately RMB 21.492 billion, with total operating profits reaching RMB 1.866 billion, marking a steady business expansion and record-high profits[33]. - The total assets of China Foods increased by 8.5% from 2023 to 2024, amounting to RMB 17,598 million[9]. - The asset-liability ratio improved by 1.8 percentage points from 2023 to 2024, indicating better financial health[9]. - In 2024, China Foods achieved a revenue of approximately RMB 21.492 billion and an operating profit of RMB 1.866 billion, marking a historical high in profitability[36]. - The overall revenue per unit increased by RMB 1.59, and the price per unit of the main packaging rose by RMB 1.27, leading to a gross profit margin increase of 2.6 percentage points[49]. - The gross profit margin improved by 2.6 percentage points year-on-year, driven by a decrease in procurement prices of major raw materials, except for white sugar[76]. - The average product prices increased, leading to overall revenue remaining largely unchanged year-on-year despite a decrease in sales volume in 2024[109]. - Other income, gains, and losses decreased by 51% year-on-year from RMB 328.4 million in 2023 to RMB 161.9 million in 2024, primarily due to a one-off gain recorded in the previous year[111]. - Income tax expense amounted to RMB 444 million, representing a decrease of 3% compared to 2023[118]. - The company expects aluminum costs to rise in 2025 due to reduced raw material supply, prompting a focus on product structure upgrades and business portfolio optimization to improve gross profit margin[108]. Business Operations and Strategy - The company initiated the construction of a new plant in Shaanxi on January 30, 2024, to support its production capacity[12]. - A specialized operation for production and sales in the Beijing-Tianjin-Hebei region commenced on December 25, 2024, aimed at improving efficiency and profitability[26]. - The innovative business of China Foods reached a scale of RMB 2.5 billion, with smart retail machines generating monthly revenue exceeding RMB 100 million for four consecutive months[54]. - The scale of COFCO Yuexiang Club's omni-channel marketing business exceeded RMB 1 billion, with DTC channel revenue increasing by 88%[54]. - The company plans to deepen the Dingsheng Programme with Coca-Cola to optimize product mix and pricing strategies, aiming for simultaneous growth in scale and profitability[60]. - The company aims to improve customer experience and operational efficiency through restructuring efforts in 2024, focusing on brand, marketing, and supply chain[69]. - The company is committed to achieving sustainable high-quality development and creating long-term value for shareholders through its dual-track strategy of "reshaping + innovation"[62]. - The company is focused on enhancing its market position through strategic appointments and leveraging the extensive experience of its directors[159]. Market and Consumer Trends - The contribution of consumption expenditure to economic growth in 2024 was 44.5%, indicating a strong recovery in consumer confidence and household income[43]. - The Chinese government's focus on boosting domestic consumption is expected to benefit China Foods in 2025, with an emphasis on service and quality consumption[35]. - The Chinese government's policies in 2025 aim to stimulate domestic consumption, which is expected to further boost economic growth and domestic demand[55]. - The sparkling drinks category maintained the highest market share, with new packaging introduced, including a 248 ml pocket bottle[78]. - The "Coca-Cola Creations" platform launched a limited-edition sparkling beverage in collaboration with Oreo, appealing to Generation Z consumers[79]. - The juice category saw improvements in average price, gross profit margin, and profit margin, with a refreshed brand strategy for "Minute Maid"[82]. Corporate Governance and Leadership - The company is committed to high standards of corporate governance to safeguard the interests of shareholders, investors, customers, and staff[186]. - The company complied with all applicable Code Provisions of the Corporate Governance Code throughout the year ended December 31, 2024, except for Code Provision C.2.1 regarding the separation of the roles of chairman and chief executive[188]. - The company promotes a corporate culture focused on consumer-centric values, innovation, and sustainable development[193]. - The board is responsible for formulating overall strategies and policies, reviewing financial performance, and supervising management's performance[198]. - The company has adopted a code for securities transactions by relevant employees, ensuring compliance with the Model Code throughout the year[195]. - The company has a diverse leadership team with expertise in various fields, including finance, quality management, and operational strategy, which supports its growth objectives[161]. Employee and Operational Metrics - The Group employed 17,533 staff as of December 31, 2024, down from 18,889 in 2023[134]. - The Group has established comprehensive policies for employee recruitment, remuneration, and training to ensure sustainable development[136]. - The proportion of controllable business revenue remains at approximately 90% of the overall business, with significant growth in the number of direct service clients[96]. - The company has approximately 10,000 salespersons, with nearly 90% of business coming from controllable customer orders[66]. Environmental and Social Responsibility - In 2024, China Foods activated the "Clean Drinking Water in 24 Hours" emergency mechanism 30 times, delivering 924,496 bottles of drinking water to disaster-stricken areas[22]. - The company received 63 national and provincial-level honorary awards in 2024, with all plants recognized for their water and energy-saving efforts[29]. - The company emphasizes quality improvement, efficiency enhancement, and green operations as part of its business philosophy[193].