Industry Overview - The pharmaceutical industry showed resilience in 2024, achieving steady growth despite challenges such as weak global economic recovery and inflationary pressures [18]. - The accelerated aging of the domestic population and rising chronic disease incidence provided long-term growth momentum for the pharmaceutical industry [18]. - The pharmaceutical industry is expected to enter a high-quality development phase as industry concentration increases and innovation capacity is enhanced [23]. Company Leadership and Management - The company appointed Mr. An Meng as Chief Executive Officer on January 17, 2024, following the resignation of Ms. Li Qian [4]. - The company’s Chairman, Mr. An Meng, was appointed as Chief Executive Officer on January 17, 2024, indicating a leadership transition [172]. - Professor Zhu Quan, aged 85, continues to serve as an executive director and chief scientist, focusing on product research and development since joining in August 2006 [181]. - The management team includes experts with extensive backgrounds in both academia and the pharmaceutical industry, enhancing the company's strategic direction [185]. Financial Performance - In 2024, the Group recorded sales revenue of approximately RMB2.97 billion, representing an increase of approximately 14.6% over last year [24]. - Profit attributable to equity shareholders of the Company was approximately RMB0.91 billion, representing an increase of approximately 16.1% over last year [24]. - The Group's annual profit attributable to equity shareholders was RMB 910,458,000, representing an increase of approximately 16.1% compared to RMB 784,534,000 in 2023 [98]. - The average gross profit margin for 2024 was approximately 75.6%, an increase of 1.4 percentage points from 74.2% in 2023 [81]. - The Group's profit before taxation for 2024 was RMB 1,020,106,000, reflecting an 18.1% increase from RMB 863,703,000 in 2023 [77]. Sales and Revenue Growth - Sales revenue of the Consun Pharmaceutical Segment amounted to approximately RMB2.53 billion in 2024, representing a year-on-year increase of approximately 15.3% [28]. - Sales revenue of kidney medicines amounted to approximately RMB1.99 billion in 2024, representing a year-on-year increase of approximately 14.5% [28]. - The flagship product, Uremic Clearance Granules, achieved sales revenue of approximately RMB1.88 billion, representing a year-on-year increase of approximately 13.9% [28]. - Sales revenue of medical contrast medium was approximately RMB0.17 billion in 2024, representing a year-on-year increase of approximately 9.0% [33]. - The sales revenue of the Gynaecology and Paediatrics Department reached approximately RMB0.36 billion in 2024, representing a record high growth of approximately 23.3% year-on-year [35]. Research and Development - The State introduced policies to support R&D of new drugs and optimize the review process, promoting high-quality industry development [18]. - The Group entered into a patent and technology transfer agreement with China-Japan Friendship Hospital for "Astragalus Spike Granules" and established a project for new-drug research [44]. - The Group's R&D efforts led to the publication of 4 SCI papers, enhancing the academic evidence for kidney-related products [41]. - The Group's nephrology innovative drug SK-08 tablets entered phase I clinical trials ahead of schedule, while applications for SK-09 tablets and other drugs have been submitted [44]. - The Group established the "Consun – Dongda Innovation Research Center of Nephrology" to strengthen research and commercialization in kidney diseases [44]. Strategic Focus and Market Position - The company is focused on enhancing its core competitiveness through innovation and transformation in response to market pressures [18]. - The Group's strategic focus includes key areas such as nephropathy, imaging, gynecology, and pediatrics to consolidate market position [24]. - The Group's strategic focus for 2025 includes "Winning tough battles, deepening compliance, and enhancing services" to achieve high-quality development [66]. - The Group plans to increase investment in R&D and promote technological innovation to ensure market leadership in its products and services [67]. - The Group aims to leverage the growing health consumption trends to drive future growth in the pharmaceutical sector [18]. Compliance and Risk Management - The company aims to improve its compliance management system in 2025 to ensure adherence to laws and regulations across all business activities [68]. - Management continues to monitor key risk exposures, including operational, financial, and compliance risks, while adapting to national policy developments in the pharmaceutical industry [149]. - There were no significant non-compliance incidents with laws and regulations relevant to the Group's operations during the year ended December 31, 2024 [151]. Market Dynamics and Government Policies - Medical insurance cost control policies were deepened, expanding the scope of quantity procurement, which forced enterprises to innovate and improve competitiveness [18]. - The NHSA's efforts in 2024 include promoting fair and transparent inter-provincial drug pricing, which is expected to impact market dynamics [167]. - The Implementation Plan for Full-chain Support for the Development of Innovative Drugs was approved, emphasizing policy protection and optimizing evaluation mechanisms [156]. - The tenth batch of national centralized drug procurement was completed in December 2024, achieving a total of 500 drugs [163]. Operational Efficiency and Future Plans - The Group plans to enhance service quality and optimize customer experience through digital means in 2025 [72]. - The Group's operational policies include "Stabilizing Growth, Strengthening Compliance, and Training Internally" to ensure steady development [24]. - The construction of phase II of the production base in Xinjiang is progressing and is expected to be completed in Q1 2025, enhancing the production capacity of the Group's main products [56][58]. - In 2025, the Group aims to enhance operational efficiency and secure a favorable market position through precise market analysis and flexible strategic adjustments [66][67]. Employee and Financial Management - The total staff costs for the year ended December 31, 2024, were RMB 593,172,000, an increase from RMB 483,508,000 in 2023 [126]. - The Group hired a total of 3,164 employees as of December 31, 2024, compared to 3,127 employees in the previous year [126]. - The balance of inventories as of December 31, 2024, was RMB 289,677,000, a decrease of approximately 21.1% from RMB 367,087,000 as of December 31, 2023 [99]. - The Group's cash and bank balances as of December 31, 2024, were RMB 3,865,682,000, an increase of approximately 7.9% from RMB 3,583,204,000 as of December 31, 2023 [108].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 6,759,320,000, representing a 74.3% increase compared to HKD 3,877,416,000 in 2023[7] - Gross profit for the same period was HKD 780,248,000, reflecting a 110.1% increase from HKD 371,346,000 in 2023[7] - The company reported a loss attributable to equity holders of HKD 1,382,983,000, which is a 43.4% improvement from a loss of HKD 2,444,888,000 in the previous year[7] - The loss attributable to the company's owners decreased to approximately HKD 1.383 billion in 2024 from HKD 2.445 billion in 2023[20] - The return on equity improved to -32.2% in 2024 from -38.1% in 2023, an increase of 5.9 percentage points[36] - The group recorded a net cash inflow from operating activities of approximately HKD 1.936 billion in 2024, a decrease from HKD 3.607 billion in 2023[40] Asset and Liability Management - Total assets decreased by 17.1% to HKD 40,560,000,000 from HKD 48,933,000,000 in 2023[7] - The debt ratio increased to 402.9%, up by 95 percentage points from 307.9% in 2023, indicating a higher level of leverage[7] - The group's total liabilities decreased to HKD 36,214,353,000 in 2024 from HKD 42,503,678,000 in 2023, a reduction of approximately 15%[66] - The net asset value as of December 31, 2024, was HKD 4,345,821,000, down from HKD 6,429,406,000 in 2023, representing a decline of about 32%[66] Operational Efficiency and Strategy - The company achieved a delivery rate of over 96% for major projects, outperforming the industry average[11] - The increase in revenue was primarily due to a higher total floor area sold compared to the previous year[20] - The group aims to enhance operational efficiency by improving brand strength, product value, and operational capabilities[17] - The group plans to closely monitor policy dynamics and market trends in 2025 to ensure cash flow safety through flexible rental and sales strategies[17] Project Development and Real Estate - The total signed floor area for the year reached approximately 314,000 square meters, an increase from 274,000 square meters in 2023[23] - The total delivered floor area for the year was approximately 310,000 square meters, up from 222,000 square meters in 2023[23] - The Shenzhen Yuehai City project has completed construction and is positioned as a multi-functional commercial complex themed around jewelry, with a completion date in August 2023[24] - The Guangzhou Yuehai Cloud Port City project has a total saleable area of approximately 726,990 square meters, with 506,000 square meters expected to be completed by 2028[22] Financial Stability and Debt Management - The company reduced interest-bearing debt by approximately HKD 34.09 billion in 2024, enhancing financial stability[11] - The total interest-bearing loans amounted to approximately HKD 20.451 billion as of December 31, 2024, down from HKD 23.860 billion in 2023[42] - The company has pledged assets worth approximately HKD 11.218 billion to secure bank loans as of December 31, 2024, compared to HKD 8.742 billion in 2023[43] Governance and Compliance - The company reported its audited financial statements for the year ending December 31, 2024[62] - The board of directors is composed of two executive directors, two non-executive directors, and three independent non-executive directors[172] - The company has complied with the Corporate Governance Code and received independence confirmation from three independent non-executive directors[180] - The audit committee consists of three independent non-executive directors, ensuring compliance with the listing rules regarding independence and qualifications[195] Employee and Stakeholder Engagement - As of December 31, 2024, the group employed 376 staff, a decrease from 568 staff in the previous year, with total employee compensation and provident fund contributions amounting to approximately HKD 141 million, down from HKD 292 million in 2023[50] - The company emphasizes customer satisfaction by regularly training sales personnel and conducting customer satisfaction surveys to enhance product quality and customer confidence[47] - The company aims to ensure at least one director of a different gender is present on the board at all times to maintain gender diversity[186] Environmental and Social Responsibility - The group adheres strictly to environmental protection regulations in construction, ensuring that new buildings meet national and local government energy-saving requirements[49] - The company is committed to sustainable development and integrates environmental protection, social responsibility, and corporate governance into its daily operations[171] Future Outlook - The government is expected to implement more proactive fiscal policies to support economic stability and growth in 2025[15] - The group has identified key projects in the Greater Bay Area, which are expected to benefit from the region's economic growth[16] - The company aims to enhance its competitive advantage in the Greater Bay Area real estate market by optimizing asset structure and strengthening capital operations[164]

Financial Performance - For the fiscal year ending December 31, 2023, the company's total revenue was approximately HKD 3,445,784,000, a decrease of 17% compared to the previous year[29]. - The profit attributable to shareholders for the year was approximately HKD 158,098,000, an increase of 14% from the previous year[30]. - The company's revenue for the year was approximately HKD 2,354,428,000, a decrease of 21% compared to the previous year[38]. - The interest and tax pre-profit was approximately HKD 151,721,000, down 8% year-on-year[38]. - Revenue for the year ended December 31, 2024, was HKD 3,445,784, a decrease of 16.8% compared to HKD 4,145,653 in 2023[185]. - Gross profit increased to HKD 649,069, up 3.8% from HKD 625,238 in the previous year[185]. - Net profit for the year was HKD 180,433, representing a 12.1% increase from HKD 160,892 in 2023[185]. - Basic earnings per share rose to HKD 27.53, compared to HKD 24.19 in the prior year, reflecting a growth of 9.7%[185]. Segment Performance - The construction materials segment accounted for 72% of total revenue in 2023, while metal products accounted for 28%[26]. - The metal products business generated revenue of approximately HKD 1,090,361,000, a decrease of about 7% year-on-year, but the profit before interest and tax increased by 45%[35]. - The construction materials delivery volume decreased, but the gross profit margin increased, indicating satisfactory performance despite challenges[39]. Operational Challenges - The company faced operational pressures in its core businesses, particularly in the Hong Kong construction materials sector, due to a challenging macroeconomic environment[30]. - The company is actively exploring maintenance and export markets to mitigate the impact of declining demand in the domestic market[35]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 2,919,328,000, while total liabilities were HKD 1,532,201,000[7]. - The company's net asset value increased to HKD 1,387,127,000 as of December 31, 2023[7]. - The current ratio as of December 31, 2024, was 2.04:1, an improvement from 1.67:1 the previous year[40]. - The total borrowings as of December 31, 2024, were approximately HKD 536,733,000, significantly reduced from HKD 906,133,000 the previous year[40]. - The net asset liability ratio as of December 31, 2024, was -0.04:1, compared to 0.18:1 the previous year, indicating a stronger financial position[41]. Corporate Governance - The company has maintained full compliance with the corporate governance code throughout the fiscal year ending December 31, 2024[52]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure[54]. - The company has implemented a code of conduct for directors' securities trading, confirming adherence to the standards set forth in the listing rules[53]. - All directors have participated in ongoing professional development to enhance their knowledge and skills relevant to their roles[56]. - The company has arranged for directors and senior management to have liability insurance[55]. - The board is committed to maintaining good corporate governance practices in compliance with the Hong Kong Stock Exchange's regulations[51]. Risk Management - The company emphasizes effective risk management as an integral part of its business strategy, with regular evaluations of potential risks and internal controls[76]. - The internal audit function regularly reviews the effectiveness of the risk management and internal control systems[77]. - The company has established guidelines for handling inside information, ensuring compliance with securities regulations[78]. Environmental, Social, and Governance (ESG) - The company is dedicated to environmental, social, and governance (ESG) efforts, actively contributing to community and environmental initiatives[85]. - The total direct and indirect carbon emissions for the fiscal year 2024 amounted to 1,748 tons of CO2 equivalent, a reduction of approximately 5.80% compared to 2023[96]. - The emissions per production unit for direct and indirect carbon emissions (Scope 1 and 2) totaled 0.0041 tons of CO2 equivalent, a decrease of about 4.65% from 2023[96]. - The company has implemented various energy efficiency measures contributing to the reduction in carbon emissions[96]. - The company has established a sustainability committee led by the board to oversee environmental, social, and governance (ESG) initiatives[87]. - The sustainability framework is integrated into daily operations and is a key focus area for the company[89]. Employee and Labor Practices - The company has a total of 1,483 employees as of December 31, 2024, with compensation based on performance and industry standards[42]. - The employee turnover rate improved to 14% in 2024, down from 20% in 2023[105]. - A total of 1,292 employees (87%) received training during the reporting period, with an average training time of 47 hours per employee, totaling approximately 60,000 hours of training[114]. - The company has a strong commitment to labor rights, with no reported incidents of child or forced labor during the reporting period[119]. Community Engagement - The group has committed to extending its educational support program for underprivileged students in Tianjin for another five years[133]. - The volunteer team has expanded, reflecting the group's commitment to community engagement and support[131]. - The group made charitable donations totaling approximately HKD 227,000 during the year[164]. Financial Commitments and Dividends - The company reported a mid-term dividend of HKD 0.025 per share, totaling approximately HKD 14,360,000[144]. - The proposed final dividend is HKD 0.04 per share, amounting to around HKD 22,975,000, subject to shareholder approval[144]. - The total capital expenditure for property, plant, and equipment during the year was approximately HKD 126,149,000[145]. - As of December 31, 2024, the company's distributable reserves amounted to HKD 445,560,000, an increase from HKD 380,086,000 in the previous year[147]. Audit and Compliance - Deloitte has audited the company's consolidated financial statements and will be proposed for reappointment at the upcoming annual general meeting[167]. - The audit report indicates that the overall financial statements are free from material misstatement due to fraud or error[179]. - The audit procedures included evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures[180].

Financial Performance - The company reported a loss of approximately HKD 37,100,000 due to impairment losses on trade receivables and loans during the year, impacting overall performance[6]. - The company's revenue for the year ending December 31, 2024, is projected to be approximately HKD 25,500,000, representing a 26% increase from HKD 20,224,000 in 2023[19]. - The pre-tax loss for 2024 is expected to be around HKD 31,289,000, an increase of 33% from HKD 23,489,000 in 2023[19]. - Net loss for 2024 is projected at HKD 31,666,000, compared to HKD 24,388,000 in 2023, marking a 30% increase[19]. - The group reported a total of zero dividends for the year ending December 31, 2024, consistent with 2023[98]. - The company did not recommend any final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[163]. - The company has not declared any interim dividend for the six months ending June 30, 2024, similar to the previous year[164]. Revenue and Income Sources - Interest income from margin financing services increased by approximately 21% to HKD 11,900,000 in 2024, up from HKD 9,800,000 in 2023[25]. - Interest income from securities collateral lending services decreased by about 5% to HKD 17,700,000 in 2024, down from HKD 18,700,000 in 2023[25]. - Interest income from lending and other secured loans was approximately HKD 5,900,000 in 2024, a decrease of about 34% from HKD 8,900,000 in 2023[31]. - The total interest income for 2024 was approximately HKD 17,749,000, with a deduction of HKD 7,800,000, compared to HKD 18,697,000 and HKD 14,000,000 in 2023[63]. - The group's total revenue for the year ended December 31, 2024, was approximately HKD 25,500,000, an increase of about 26% compared to HKD 20,200,000 in 2023[59]. Impairment and Credit Losses - The net impairment loss for trade receivables and loans was HKD 37,100,000 in 2024, up from HKD 28,000,000 in 2023, representing a 32% increase[69]. - The impairment losses related to trade receivables and loans amounted to approximately HKD 37.1 million, with HKD 16.7 million from margin customers and HKD 20.4 million from lending customers[96]. - The write-off amount for the three bankrupt clients was approximately HKD 54,000,000 during the year[29]. - The total amount of loans written off from four clients who declared bankruptcy was approximately HKD 59,800,000[32][33]. - The expected credit loss model indicates that the company has confirmed a net impairment loss of HKD 37,100,000, with HKD 16,700,000 attributed to margin customers' trade receivables[69]. Operational Strategies - The company is actively exploring opportunities in the virtual asset industry, including assessing potential upgrades for a virtual asset trading platform license[9]. - The company plans to establish a joint venture to operate a digital asset business related to virtual real estate by December 2024[9]. - The company is focusing on enhancing operational efficiency and building stronger relationships with clients to ensure sustainable growth[10]. - The company aims to balance risk and return in managing its lending portfolio while improving its market positioning[7]. - The company is committed to diversifying its service offerings while cautiously developing new business opportunities[7]. Corporate Governance and Management - The company has adopted a board diversity policy, emphasizing the importance of gender diversity and sustainable development, with the appointment of Ms. Liu Yundi as an executive director on December 12, 2024[123]. - The audit committee, composed of three independent non-executive directors, held three meetings in the fiscal year to review and assess the group's risk management and internal control functions[124]. - The company emphasizes the importance of a robust corporate governance structure to ensure effective management and operations[115]. - The board believes that the current governance model allows for swift decision-making and operational efficiency in a changing environment[115]. - The company has established a credit committee to handle all credit-related matters, composed of senior management and directors[67]. Share Capital and Dividends - The company reported a total issued share capital of approximately 406,070,100 shares after a rights issue that raised about HKD 30,460,000[161]. - The total number of issued shares has increased to 487,280,100 following the placement[196]. - The company has completed a placement of 81,210,000 shares at a price of HKD 0.176 per share, raising approximately HKD 14,290,000 after deducting commissions and expenses, which will be used for general working capital[196]. - The company has not purchased, sold, or redeemed any of its listed shares during the fiscal year ending December 31, 2024[168]. Employee and Staff Management - Employee benefit expenses decreased by approximately 22% to about HKD 6,900,000 in 2024, down from approximately HKD 8,900,000 in 2023, primarily due to a director's departure[64]. - The company recorded an employee turnover rate of 23% in 2024, down from 38% in 2023, with 5 employees leaving and 11 new hires added[131]. - The group employed 16 new staff in 2024, increasing total employees to 27 from 16 in 2023[108]. Legal and Compliance Matters - The company has initiated legal actions against clients who have defaulted on loans, with further legal proceedings planned for January 25, 2025[40]. - The company has taken further steps to recover debts, including sending formal demand letters and engaging legal counsel for professional advice[91]. - All independent non-executive directors confirmed their independence as of December 31, 2024, in compliance with listing rules[122].

Financial Performance - The company achieved a total revenue of approximately RMB 644.5 million in 2024, representing a year-on-year growth of about 1.5%[13]. - The profit attributable to shareholders was approximately RMB 154.5 million, a decrease of about 9.7% year-on-year, with earnings per share of RMB 0.1525[13]. - The company declared a final dividend of HKD 0.083 per share, with a total annual dividend of HKD 0.131 per share, resulting in a payout ratio of approximately 80%[13]. - The company's gross profit for the fiscal year was approximately RMB 297.9 million, a decrease of about 10.7% year-on-year, with a gross margin of 46.2%[64]. - Revenue from entrusted management services was approximately RMB 426.5 million, accounting for 66.2% of total revenue, with a year-on-year increase of about 5.0%[62]. - Revenue from brand and management output services decreased by approximately 34.0% to RMB 95.7 million, representing 14.8% of total revenue[62]. - Revenue from leasing services increased by approximately 46.3% to RMB 122.3 million, accounting for 19.0% of total revenue[62]. - Other income for the fiscal year was approximately RMB 37.0 million, a decrease of about 13.4% due to lower bank interest income[66]. - Selling expenses increased by approximately 30.7% to RMB 26.4 million, primarily due to increased marketing activities for new projects[70]. - Administrative expenses were approximately RMB 75.4 million, remaining relatively stable compared to the previous year[71]. - The group's profit for the year ending December 31, 2024, was approximately RMB 148.4 million, a decrease of about 8.6% compared to RMB 162.3 million for the year ending December 31, 2023[75]. Operational Strategy - The company is focusing on the Greater Bay Area and Yangtze River Delta as core development regions, enhancing brand influence and competitiveness[14]. - New projects are being prepared, such as the Shenzhen Guangming Star River COCO City, to expand the commercial footprint[14]. - The company is committed to optimizing project quality, enhancing operational standards, and introducing innovative business formats[15]. - The Shenzhen Futian Star River COCO Park has introduced numerous first-store brands, improving space utilization and creating a high-quality shopping environment[15]. - The group aims to enhance its digital management platform to improve data-driven decision-making and provide precise marketing tools for merchants[21]. - The group has implemented a comprehensive digital management system, integrating ERP, smart cash register, and business intelligence analytics to support merchants[16]. - The group has strengthened its operational capabilities, achieving double-digit growth in sales and foot traffic through innovative IP events[17]. - The group plans to optimize its member service system to enhance member satisfaction and loyalty, targeting high-end members with personalized services[23]. - The group is exploring partnerships with technology companies to apply AI, big data, and IoT in commercial real estate, enhancing core competitiveness[21]. - The group has adopted a strategy of integrating public and private domains to create a more influential business ecosystem[16]. - The company aims to solidify its benchmark position in the Greater Bay Area by expanding market share at the Shenzhen Futian Star River COCO Park, targeting cross-border consumers[53]. - A diversified leasing strategy will be adopted to enhance brand appeal and market influence, aiming to reduce vacancy rates and increase overall rental income[54]. - The company will focus on operational efficiency and asset value enhancement, ensuring steady growth in rental income and sales performance through refined management strategies[55]. Market Presence - The company operates 53 commercial property projects across 21 cities in China, with a total contracted building area of approximately 2.7 million square meters[4]. - The company has 27 operational retail commercial properties, with a total operational building area of approximately 1.6 million square meters[4]. - The revenue from the Greater Bay Area was RMB 476.4 million, accounting for 73.9% of total revenue, while the total revenue for the year was RMB 644.5 million[41]. - The average occupancy rate for retail commercial properties was 92.4% as of December 31, 2024, slightly down from 92.8% in 2023[48]. - The average occupancy rate for COCO Park was 93.8%, while COCO City and iCO had an occupancy rate of 90.7%[48]. Governance and Management - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors as of the report date[94]. - The company emphasizes the importance of good corporate governance practices to enhance investor confidence and accountability[111]. - The company has complied with the corporate governance code principles as per the Hong Kong Stock Exchange listing rules, with some exceptions noted[111]. - The company has a strong management team with diverse backgrounds in finance, project management, and corporate governance[108][109]. - The company has established a mission to create urban prosperity through business intelligence, focusing on customer-centric opportunities and competitive products[130]. - The company has committed to adhering to corporate governance codes and listing rules in the future[113]. - The audit committee held four meetings during the year ending December 31, 2024, reviewing the company's governance policies and financial reporting systems[134]. - The remuneration committee conducted two meetings in the year ending December 31, 2024, to discuss and review the remuneration policies for directors and senior management[137]. - The nomination committee held two meetings in the year ending December 31, 2024, to review the nomination policies and assess the independence of non-executive directors[140]. - The company has established a nomination policy to ensure the selection of suitable candidates for the board, focusing on integrity, experience, and diversity[141]. Risk Management - The company has adopted a three-tier risk management approach to identify, assess, and manage various types of risks[158]. - The audit committee has reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2024, covering financial, operational, and compliance monitoring[160]. - No significant control deficiencies or weaknesses were identified during the reporting period, and the existing risk management and internal control systems are deemed reasonable and effective[160]. - The company has implemented a strict anti-corruption policy to identify and address bribery and corruption issues, applicable to all employees and related third parties[160]. - An independent internal audit consultant has been appointed to assist the board and audit committee in identifying and monitoring the company's risk and internal control matters[159]. - The company is committed to continuous evaluation of the risk register and considers the likelihood and impact of identified risks in various operational areas[159]. Employee and Social Responsibility - The company employed a total of 954 employees as of December 31, 2024, up from 901 employees in 2023[178]. - The company has implemented various employee social security plans, including housing provident fund, pension, medical insurance, and unemployment insurance[180]. - The employee gender ratio as of December 31, 2024, was 66% male to 34% female, reflecting the company's commitment to diversity[178]. - The gender ratio among the company's workforce, including senior management, is 66:34 as of December 31, 2024, indicating achieved gender diversity[148]. Future Outlook - The company is committed to a "cost-effectiveness year" in 2025, focusing on quality improvement and resource optimization for long-term development[18]. - The company aims to become a leader in the business operation management industry in China, focusing on excellence, sustainable value, and win-win cooperation[130]. - The company is focused on adapting to changes in the commercial operation management industry to meet evolving market demands[175].

Financial Performance - The company's revenue for 2024 increased by 11.32% compared to 2023, reaching HKD 3,841,472,000[6] - The net loss for the year was HKD 83,853,000, compared to a net loss of HKD 1,765,000 in 2023[6] - The loss attributable to shareholders was HKD 53,307,000, a significant decline from a profit of HKD 4,047,000 in 2023[6] - The basic loss per share for the year was HKD 1.73 cents, compared to earnings of HKD 0.13 cents per share in 2023[6] - The company's revenue for the year ended December 31, 2024, was HKD 3,841,472,000, an increase of 11.32% compared to HKD 3,450,954,000 in 2023[16] - The net loss for the year was HKD 83,853,000, a significant increase from a net loss of HKD 1,765,000 in 2023[16] - The loss attributable to shareholders was HKD 53,307,000, a substantial change from a profit of HKD 4,047,000 in 2023[17] - The basic loss per share was HKD 0.0173, compared to a basic earnings per share of HKD 0.0013 in 2023[18] Dividend Policy - The company decided not to recommend a final dividend for 2024, consistent with the previous year[7] - The company will not recommend a final dividend for the year 2024, consistent with the previous year[19] - The company’s dividend policy reflects the board's opinion on the financial and cash flow status, with no guarantee of specific dividend payments in any designated period[90] Business Strategy and Operations - The company is focusing on optimizing business and product structures to respond to market competition and demand[8] - New capacity construction projects at Nantong Kangyuan Circuit Technology Co., Ltd. are progressing smoothly, with the integrated circuit packaging plant completed and entering trial production[9] - The company plans to develop a five-year strategic plan to enhance core competitiveness and sustainable development capabilities[12] - The company will continue to optimize resource allocation and improve management efficiency[11] - The company plans to continue expanding its customer base and exploring new business opportunities while optimizing production quality and cost management[25] Financial Position - As of December 31, 2024, total assets decreased by 2.07% to HKD 14,281,314,000 compared to HKD 14,583,284,000 in 2023[31] - The company's equity attributable to shareholders decreased by 3.47% to HKD 7,154,386,000 from HKD 7,411,477,000 at the end of 2023[32] - Non-current liabilities decreased by 4.58% to HKD 3,515,843,000, while current liabilities increased by 15.52% to HKD 1,649,182,000[33] - The administrative expenses for 2024 were HKD 401,471,000, an increase of 1.64% compared to the previous year[35] - Cash and cash equivalents as of December 31, 2024, amounted to HKD 1,497,130,000[38] - The company has unprovided capital commitments of approximately HKD 437,360,000 for the acquisition of fixed assets as of December 31, 2024[39] Employee and Management - The company has a total of 7,009 employees distributed across mainland China, Hong Kong, and Vietnam as of December 31, 2024[42] - The board of directors for the company in 2024 includes executive directors Wang Hui (Chairman), Zhou Limin (Chairman), and Song Shuqing (President), along with non-executive directors and independent non-executive directors[46] - The term for non-executive directors, including independent non-executive directors, is two years, subject to rotation and re-election as per the company's articles of association[47] - The company appointed three independent non-executive directors in 2024, including Luo Zhenbang, Chen Jingru, and Xue Lan, with no financial, business, or familial relationships among them[48] - The company has 8 board members in 2024, consisting of 6 male and 2 female directors, all holding university degrees and various professional qualifications[65] Governance and Compliance - The board of directors is responsible for determining the company's goals, strategies, policies, and risk management, while management is authorized to manage daily operations[51] - The company has established various committees under the board, including the Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee, each with specific responsibilities[56] - The company has adopted a code of conduct for securities trading by directors and employees, prohibiting trading during specified periods before financial results announcements[49] - The company has implemented internal controls and risk management systems to monitor financial and governance conditions effectively[53] - The company has established a reporting policy to allow stakeholders to anonymously report any suspicious or improper behavior[163] Environmental, Social, and Governance (ESG) - The company emphasizes the importance of stakeholder communication and has conducted an ESG stakeholder engagement survey to assess current ESG performance, identifying key issues such as "product quality," "product safety," and "product innovation" as the top three priorities[95] - The board recognizes the significance of setting measurable ESG performance targets to ensure sustainable growth and corporate responsibility, particularly in managing energy and water consumption, emissions, and waste[98] - The company aims to align its sustainability strategies with industry best practices and stakeholder expectations, addressing challenges such as market changes and regulatory requirements[98] - The company has established various management systems for environmental protection, including energy management and waste management protocols, in compliance with local regulations[111] - The company has achieved ISO 14001 environmental management system certification to minimize its operational impact on the environment and natural resources[130] Community Engagement and Social Responsibility - The company actively engages in community service and encourages employee participation in social initiatives[159] - The community investment metrics included 80 participants contributing 7 hours in charitable activities[159] - Community investment resources were allocated, focusing on areas such as education, health, and culture[172] Product Quality and Customer Satisfaction - The company emphasizes product and service quality, ensuring compliance with relevant regulations and standards throughout the production process[153] - A comprehensive product quality inspection mechanism is in place, covering incoming materials, manufacturing processes, and outgoing products to enhance market competitiveness[155] - The company has implemented a customer feedback mechanism to promptly address product complaints and enhance customer satisfaction[148] - The total number of product complaints received in 2024 was 601, an increase from 513 in 2023, primarily related to product appearance[157] - The company achieved a 0% recall rate for products sold or shipped due to safety and health reasons in both 2023 and 2024[158] Innovation and Research - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[177] - New product launches are expected to contribute an additional $300 million in revenue over the next fiscal year[180] - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $200 million allocated for potential deals[179] Market Performance and Outlook - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $1.875 billion[179] - Market expansion plans include entering three new international markets by Q3 2024, targeting a 10% increase in global market share[178]

Financial Performance - The net profit attributable to shareholders for 2024 is RMB 316,500 thousand according to Chinese accounting standards, and RMB 310,980 thousand according to International Financial Reporting Standards[4]. - The company's net sales for 2024 were RMB 74,282.30 million, a decrease of 7.23% compared to RMB 80,077.76 million in 2023[18]. - The pre-tax profit for 2024 was RMB 423.32 million, a significant recovery from a loss of RMB 1,655.41 million in 2023[18]. - The net profit attributable to shareholders for 2024 was RMB 310.98 million, compared to a loss of RMB 1,346.15 million in 2023[18]. - The company reported a basic earnings per share of RMB 0.029 for 2024, recovering from a loss of RMB 0.125 in 2023[18]. - The total revenue for the company was RMB 87.06 billion, a decrease of 6.32% compared to the previous year[64]. - The company's operating profit for 2024 was RMB 0.49 billion, a significant increase of RMB 18.02 billion compared to an operating loss of RMB 1.753 billion in 2023[78]. - The net profit attributable to shareholders of the parent company for 2024 was RMB 316,500 thousand, a turnaround from a loss of RMB 1,405,876 thousand in 2023[91]. - The financial income net amount was RMB 194.56 million in 2024, slightly down from RMB 238.68 million in 2023[74]. Dividends and Shareholder Information - The proposed final dividend for 2024 is RMB 0.02 per share, subject to approval at the annual general meeting[4]. - The final dividend for H-share shareholders is expected to be paid around July 24, 2025, with a record date of July 1, 2025[5]. - The company plans to suspend H-share transfer registration from June 26 to July 1, 2025, to confirm the rights to receive the final dividend[7]. - The total number of ordinary shareholders increased to 86,462 by the end of the reporting period, up from 83,161[42]. - The company plans to cancel 124,058,000 H-shares, reducing the total issued shares to 10,675,227,500[40]. Operational Performance - The company achieved a net cash flow from operating activities of RMB 7,740.45 million in 2024, a significant increase of 859.17% from RMB 806.996 million in 2023[22]. - The net cash flow from operating activities increased significantly to RMB 7.74 billion, a rise of 859.17% compared to RMB 806.996 million in 2023[89]. - The company processed a total of 13.35 million tons of crude oil in 2024, a year-on-year decrease of 5.48%[64]. - The sales volume of refined products was 9,450.52 thousand tons in 2024, down from 9,747.76 thousand tons in 2023, indicating a decrease of about 3.1%[73]. - The company produced over 60 different products, primarily refining and chemical products, with refining products accounting for 66.46% of total sales[31][36]. Risk Management and Compliance - The company has detailed potential risks in the management discussion and analysis section of the board report[9]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors[8]. - The report indicates no related party transactions among the major shareholders, ensuring compliance with regulations[43]. - The company has improved its governance structure and compliance, achieving a leading position in ESG ratings within the industry[68]. - The company has not faced any major litigation or arbitration matters during the reporting period[177]. Environmental and Safety Initiatives - The company has made significant progress in safety production and environmental protection, with VOCs concentration decreasing by 9.90% to an average of 65.14 micrograms per cubic meter[67]. - The company has maintained a 100% compliance rate for wastewater discharge and hazardous waste disposal in 2024[199]. - The company has been recognized as a "Green Enterprise" by Sinopec for 2022 and continues to uphold environmental management certifications[198]. - The company has successfully created 45 grassroots units for green initiatives, achieving a cultivation rate of 91.80%[198]. Future Plans and Strategic Focus - The company aims to enhance product quality and variety while strengthening new product development and market expansion[18]. - The company plans to continue improving operational efficiency to achieve its goal of becoming a "domestically leading, world-class" energy and chemical company[16]. - The company is focusing on green and low-carbon transformation to promote high-quality development[18]. - The company plans to implement comprehensive safety and environmental responsibility measures to ensure high-quality development[120]. - The company will focus on the development of high-end new materials and renewable energy technologies to transition from fossil fuels to a mixed energy structure[119]. Shareholder Structure and Major Shareholders - The largest shareholder, China Petroleum & Chemical Corporation, holds 5,459,455,000 shares, representing 51.14% of total shares[43]. - The controlling shareholder, China Petroleum & Chemical Corporation, is involved in various sectors including oil, natural gas, and chemical production, with a focus on renewable energy and hydrogen business[47]. - The overall shareholding structure remains stable, with no significant exits among the top ten shareholders[46]. - The company has engaged in related party transactions with Sinopec Group and its affiliates, with a maximum annual transaction limit of RMB 2 billion for financial services from January 1, 2024, to December 31, 2025[182]. Research and Development - Research and development expenses for 2024 were RMB 1.74 billion, a decrease from RMB 1.87 billion in 2023[82]. - The company emphasizes research and development innovation as a key strategy for growth[142]. - The company is focusing on the development of high-end new materials and fine chemicals, with ongoing projects in carbon fiber and thermoplastic composite materials[121].

Financial Performance - The Group recorded revenue of approximately RMB 242.9 million in 2024, down by 1.2% compared to RMB 245.8 million in 2023[15] - Gross profit for 2024 was RMB 43.9 million, with a gross profit margin of 18.1%, compared to 19.2% in 2023[10] - Profit attributable to shareholders of the Company was approximately RMB 2.0 million in 2024, down from RMB 3.7 million in 2023[15] - Total revenue decreased by about 1.2%, from approximately RMB245.8 million in 2023 to about RMB242.9 million in 2024[36] - Gross profit decreased by approximately 6.8%, from about RMB47.1 million in 2023 to about RMB43.9 million in 2024[37] - Gross profit margin decreased from about 19.2% in 2023 to about 18.1% in 2024[37] - Other income decreased from approximately RMB 4.1 million for the year ended 31 December 2023 to approximately RMB 4.0 million for the year ended 31 December 2024, a decline of about 3.1%[43] - Financial costs decreased from approximately RMB 9.4 million for the year ended 31 December 2023 to approximately RMB 7.5 million for the year ended 31 December 2024, a decrease of about 20.1%[46] - Profit for the year decreased from approximately RMB 3.7 million for the year ended 31 December 2023 to approximately RMB 2.0 million for the year ended 31 December 2024[48] Assets and Liabilities - Total assets increased to RMB 623.6 million in 2024, up from RMB 528.9 million in 2023[12] - Total liabilities rose to RMB 376.0 million in 2024, compared to RMB 283.5 million in 2023[12] - Cash and cash equivalents increased from approximately RMB 67.5 million as at 31 December 2023 to approximately RMB 95.5 million as at 31 December 2024[49] - Bank and other loans increased from approximately RMB 102.1 million as at 31 December 2023 to approximately RMB 163.7 million as at 31 December 2024[56] - Inventory decreased from approximately RMB 60.6 million as at 31 December 2023 to approximately RMB 53.1 million as at 31 December 2024, a decrease of about 12.3%[58] Sales and Market Outlook - The heavy truck sales volume for 2024 was 902,000 units, a decrease of 1% compared to 2023[15] - The heavy truck industry is expected to scale between 900,000 and 1 million vehicles in 2025[19] - The passenger vehicle market is anticipated to grow, particularly for self-owned brand vehicles, supported by relevant policies[19] - The heavy truck business sector is expected to generate sales of around RMB150-180 million in 2025, accounting for about 40% of total sales[25] - The passenger car business sector is projected to generate sales of about RMB200-250 million in 2025, accounting for about 60% of total sales[25] Operational Efficiency and Strategy - The Company is focusing on factory-based operations and independent research to enhance product specialization and efficiency[16] - The company aims to enhance competitiveness through the implementation of the TES management system[20] - The Group plans to promote the "TES" (Tianrui Excellence Management System) to standardize group management and complete the digitalization of the Company's system[89] - The Group will maintain its market share and expand into external markets by promoting parallel operations in passenger cars and commercial vehicles[88] Employee and Management Information - As of December 31, 2024, the Group had 321 full-time employees, a decrease from 361 in 2023, with total staff costs approximately RMB 42.0 million, reflecting a 5.6% increase compared to RMB 39.8 million in 2023[77] - The Group emphasizes employee training and offers competitive remuneration packages to retain elite employees, reviewing these packages annually[83] - The Group's leadership includes individuals with extensive experience in their respective fields, ensuring informed decision-making and strategic direction[110] Corporate Governance - The company has complied with the Corporate Governance Code for the year ended December 31, 2024, with a noted deviation regarding the roles of chairman and CEO being held by the same individual[130] - The Board of Directors consists of three committees: Audit Committee, Remuneration Committee, and Nomination Committee, overseeing various aspects of the company's affairs[132] - The Company has appointed three Independent Non-executive Directors, representing more than one-third of the Board, ensuring compliance with Listing Rules[152] - The Company has established a formal procedure for formulating remuneration policies for Directors and senior management[170] - The Company ensures that none of the Directors determine their own remuneration, maintaining transparency in the remuneration process[163] - The Company has adopted a Board Diversity Policy to enhance performance quality by considering diversity in age, cultural background, ethnicity, and professional experience[183] Board Meetings and Attendance - The Board is responsible for developing and monitoring corporate governance policies and ensuring compliance with legal and regulatory requirements[140] - The Board of Directors is required to hold at least four meetings each year to ensure effective governance[197] - Attendance records indicate that all current Directors participated in the Annual General Meeting, with varying attendance in committee meetings[196] - The attendance record of Directors at Board and committee meetings is documented, ensuring accountability and governance[189]

Industry Competition and Market Trends - The catering industry faced intensified competition in 2024, requiring companies to have a profound understanding of industry development patterns to achieve solid returns[19]. - The intense competition in the catering industry has led to a decline in same-store sales and profit margins, increasing corporate losses[34]. - The Group aims to stabilize existing business and explore new growth opportunities despite intense competition in the catering sector[98]. Business Development and Strategy - Best Food Group has seen positive results from its business development model focused on investment and operational empowerment, particularly through franchise operations and digital user engagement[20]. - The Group aims to consolidate existing restaurant operations while expanding its franchise network to adapt to regional dining demands across China[21]. - Best Food is exploring new growth opportunities by leveraging industry resources to establish a closed-loop business model, driving corporate innovation and performance[22]. - The Group's commitment to its business development model emphasizes investment and operational empowerment as key to future success[23]. - Best Food's strategic focus includes both consolidating existing operations and exploring new business avenues to drive growth[22]. Financial Performance - The annual report was presented for the year ended December 31, 2024, highlighting the Group's strategic directions and operational achievements[18]. - The Group's total system sales for 2024 reached RMB3,526 million, a 6.1% increase compared to 2023[33]. - Revenue for 2024 decreased by 22.3% to RMB474 million from RMB610.6 million in 2023[41]. - Revenue from restaurant operations fell by 33.6% to RMB213.2 million, while delivery business revenue decreased by 21.0% to RMB168.6 million[41]. - The Group recorded a loss attributable to equity holders of approximately RMB 241.8 million for the year ended December 31, 2024, compared to a loss of approximately RMB 151.7 million for the year ended December 31, 2023[59]. - The adjusted loss for the year was RMB 76.5 million for 2024, compared to RMB 51.5 million for 2023[67]. Cost Management - Raw material costs decreased by 14.4% to RMB199.3 million, with raw material costs as a percentage of revenue increasing from 38.1% to 42.0%[42]. - Employee benefit expenses decreased by 17.5% to RMB144.1 million, with expenses as a percentage of revenue rising from 28.6% to 30.4%[47]. - Online platform service charges and delivery fees decreased by 14.3% to RMB33.6 million, while their percentage of delivery revenue increased from 18.4% to 19.9%[46]. - Depreciation of right-of-use assets decreased from RMB 70.6 million for the year ended December 31, 2023, to RMB 55.7 million for the corresponding period of 2024, a decline of 21.1%[53]. - Other asset depreciation and amortization decreased from RMB 22.6 million for the year ended December 31, 2023, to RMB 16.8 million for the corresponding period of 2024, a decline of 25.7%[54]. - Property rental and related expenses decreased from RMB 18.3 million for the year ended December 31, 2023, to RMB 14.7 million for the corresponding period of 2024, a decline of 19.7%[55]. - Other expenses decreased by 12.7% from RMB 59.0 million for the year ended December 31, 2023, to RMB 51.5 million for the corresponding period of 2024[56]. Asset Management and Impairment - As of December 31, 2024, the Group recognized right-of-use assets amounting to RMB 95.3 million, down from RMB 149.0 million as of December 31, 2023, mainly due to restaurant closures[71]. - The impairment loss on investments in associates for the year ended December 31, 2024, was approximately RMB 71 million, significantly higher than RMB 1.9 million in the corresponding period of 2023, representing a substantial increase[74][79]. - The net book amount of the Group's trademarks decreased by 25.1% from RMB 373.0 million as of December 31, 2023, to RMB 279.5 million as of December 31, 2024, due to an impairment loss of RMB 93.5 million recognized in 2024[76][80]. - An impairment loss of RMB 93.5 million on trademarks was recorded for the year ended December 31, 2024, based on the higher of fair value less costs of disposal and value in use assessments[84]. Corporate Governance and Management - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2024[145]. - The Board comprises three executive directors and three independent non-executive directors, with independent directors representing more than one-third of the Board[148]. - The Company has a share award scheme in place to incentivize employees and recognize their contributions since November 11, 2019[140]. - The Board is collectively responsible for promoting the Company's success through strategic decisions and oversight of performance[162][167]. - Independent non-executive Directors play a crucial role in ensuring effective corporate governance[170][175]. Employee and Operational Insights - The Group had a workforce of approximately 1,582 employees as of December 31, 2024, a decrease from about 1,779 employees in 2023[139]. - The Company has established food safety risk assessment and control mechanisms across various operations, including procurement and restaurant operations[136]. - The Company plans to adopt a more prudent restaurant opening strategy and introduce meal sets to enhance value for customers in response to potential declines in sales[138]. Financial Position and Ratios - The Group's total deficit as of December 31, 2024, was RMB 220.2 million, compared to total equity of RMB 46.8 million as of December 31, 2023[99]. - The current ratio was 0.17 as of December 31, 2024, down from 0.68 as of December 31, 2023[102]. - The Group's gearing ratio increased to 152% as of December 31, 2024, compared to 92% as of December 31, 2023[129]. - The net cash to equity ratio as of December 31, 2024, was -0.002, a significant decrease from 0.53 as of December 31, 2023[109]. - The Group's debt-to-equity ratio was 152%, up from 92% on December 31, 2023[133]. Investments and Market Position - The Group's significant investments include a 17.16% stake in Yujian Xiaomian valued at RMB 56.7 million and a 25.03% stake in Tianshuilai valued at RMB 54.3 million as of December 31, 2024[116]. - Yujian Xiaomian has expanded to over 300 stores nationwide, focusing on first-tier and new first-tier cities[117]. - Tianshuilai operates over 200 stores, primarily in first-tier and new first-tier cities, with a focus on premium dining experiences[118]. - The Group has established a multi-brand investment matrix to enhance value and investment returns across diverse catering categories[119].

Financial Performance - The Group recorded a revenue of approximately HK$294,721,000 for the year ended 31 December 2024, representing an increase of approximately 56.4% compared to the re-stated revenue of HK$188,400,000 for 2023[20]. - Gross profit for the year amounted to approximately HK$11,507,000, down from HK$17,677,000 in 2023[21]. - The total comprehensive loss attributable to equity holders of the Company was approximately HK$24,799,000, an improvement from HK$36,829,000 in 2023[21]. - The environmental maintenance business generated revenue of approximately HK$132,607,000 in 2024, a decline from HK$161,419,000 in 2023, attributed to a lack of new project bids[52]. - The environmental maintenance business recorded a segment loss of approximately HK$42,811,000 in 2024, compared to a segment loss of approximately HK$10,053,000 in 2023, primarily due to a provision for loss allowance in trade receivables amounting to approximately HK$29,783,000[53]. - The trading business achieved revenue of approximately HK$73,613,000 in 2024, a significant increase from HK$26,981,000 in 2023, representing a growth of approximately 173%[60]. - The trading business turned around to a segment profit of approximately HK$33,959,000 in 2024, compared to a loss of approximately HK$2,281,000 in 2023[61]. - The media advertising and marketing business generated revenue of approximately HK$88,501,000 since its inception in June 2024[58]. - The media advertising and marketing business incurred a segment loss of approximately HK$79,408,000 due to a sluggish market in the second half of 2024[59]. Assets and Liabilities - Current assets increased to HK$588,688,000 in 2024 from HK$448,082,000 in 2023, reflecting a growth of approximately 31.4%[15]. - Total assets rose to HK$977,508,000 in 2024, compared to HK$588,504,000 in 2023, marking an increase of approximately 66.1%[15]. - Current liabilities increased significantly to HK$446,850,000 in 2024 from HK$130,943,000 in 2023, representing a growth of approximately 241.5%[15]. - Non-current assets increased to HK$388,820,000 in 2024 from HK$140,422,000 in 2023, indicating a growth of approximately 176.5%[15]. - The net assets of the Group decreased to HK$348,414,000 in 2024 from HK$431,042,000 in 2023, a decline of approximately 19.2%[15]. Business Operations - The environmental maintenance business is expanding into regions such as Xinjiang, Hebei, and Inner Mongolia, indicating strategic market expansion efforts[22]. - The Group plans to explore business opportunities in high growth industries in China to generate stable income and long-term value for shareholders[29]. - The Group started the media advertising and marketing business in May 2024, primarily distributing advertisements for a PRC cinema chain[74]. - The Group's media advertising business has expanded to offline consumer scene marketing in shopping malls and cinemas, addressing customer pain points in attracting customers and improving conversion rates[124]. - The commercial closed loop of "precise marketing – driving traffic to store – consumer decision-making" has been established as an industry benchmark for digital services in offline scenarios[128]. Cash Flow and Capital Management - As of 31 December 2024, the Group's cash and cash equivalents were approximately HK$210,486,000, a decrease of 14.2% from approximately HK$245,234,000 as of 31 December 2023[86]. - Capital expenditure for the year was approximately HK$440,201,000, primarily used in the media advertising and marketing business[95]. - The Group's strategy remains to lower the gearing ratio to an acceptable level, maintaining a net cash position as of 31 December 2024[96]. Shareholder Information - The Group's reserves available for distribution to shareholders amounted to approximately HK$386,110,000 as of 31 December 2024[168]. - No dividends were recommended for the year ended 31 December 2024[160]. - The Board will review the dividend policy periodically and may amend it at its discretion[166]. Corporate Governance - Mr. Yu Kin Man Duncan has over 25 years of experience in accounting, financial management, and corporate finance[152]. - Mr. Yu was appointed as the company secretary and chief financial officer of the Company in December 2016[152]. - Mr. Wong Sincere served as an independent non-executive director of Bank of Gansu Co., Ltd from August 2017 to October 2023[151]. - Mr. Wong Sincere has extensive experience in cross-border acquisitions and commercial transactions[147]. - The Company did not make any charitable donations during the year[169]. Disposals and Acquisitions - The Group disposed of its medical devices business for RMB22,500,000, resulting in a gain on disposal of approximately HK$26,723,000[44]. - A proposed disposal of the property leasing business is set at a consideration of HK$77,525,000 (equivalent to RMB71,788,700), pending certain conditions[45]. - The Group completed the disposal of a 90% equity interest in Shanghai Umitai Medical Technology Co. Ltd for a consideration of RMB22,500,000 on 1 August 2024[102]. - The Group's disposal group will no longer be treated as subsidiaries, and their financial results will not be consolidated with the Group's results following the completion of the disposal agreement[110].