Financial Performance - The company achieved a total revenue of RMB 276.7 million for the year ended December 31, 2024, representing a year-on-year growth of 22.4%[9] - The company reported a net loss attributable to equity holders of RMB 44.4 million for the year ended December 31, 2024[7] - The total equity decreased to RMB 482.6 million from RMB 525.9 million in the previous year[8] - For the fiscal year ending December 31, 2024, the company's gaming operations generated approximately RMB 238.8 million, an increase of about 36.7% from RMB 174.7 million in the previous year, primarily driven by the successful launch of the HTML5 game "一步两步" on August 1, 2024[27] - The company reported a net loss of RMB 46.1 million for the year ended December 31, 2024, compared to a profit of RMB 52.2 million in the previous year[34] - The company experienced a significant decrease in licensing and intellectual property-related income, dropping 52.7% to RMB 13.2 million due to the transition of "God's Path 3" to self-operation[36] - Other income and gains decreased by approximately 30.9% from RMB 22.3 million for the year ended December 31, 2023, to RMB 15.4 million for the year ending December 31, 2024, primarily due to a drop in investment income from RMB 7.2 million to RMB 1.2 million[40] Game Development and Launches - The successful launch of the HTML5 game "Step by Step" on August 1, 2024, significantly contributed to the company's performance[9] - Three new games were launched in 2024, including two HTML5 games and one virtual reality game, enhancing the company's product portfolio[10] - The game "Step by Step" quickly gained popularity, ranking in the top ten of the WeChat mini-game sales chart by December 2024[10] - The existing game series "Xianxian Dao" continued to generate stable revenue across online and mobile platforms, demonstrating ongoing popularity[10] - The daily active users (DAU) for the game "Defend the Carrot 4," launched in 2022, recorded moderate growth, indicating its sustained appeal[10] - The company plans to launch multiple new HTML5 games in 2025, alongside the anticipated release of the console game "Neon Abyss 2," expected to diversify revenue sources[14] - The company plans to launch multiple new HTML5 games in 2025, continuing to invest in the game "一步两步" to maintain its momentum since its release[22] - The company launched several new games including "一步两步", "Let's Plane", and "野人快跑" during the fiscal year ending December 31, 2024[93] User Engagement and Market Trends - The advertising revenue from "Defend the Carrot 4" grew by 22.2% compared to 2023, indicating sustained user engagement and advertiser interest[15] - As of December 31, 2024, the company reported approximately 235.7 million registered users for its RPG mobile and online games, with 173.4 million in online games and 62.3 million in mobile games[28] - The average Monthly Active Users (MPU) for online games decreased by 16.7% to 5,000 from 6,000 in the previous year, while mobile RPG games saw a 47.9% drop from 94,000 to 49,000[30] - Player satisfaction rating showed that approximately 92.31% of users rated their experience as 4 or above on a scale of 1 to 5, based on feedback from 7,975 users[190] Intellectual Property and Licensing - The blind box themed around "Defend the Carrot" achieved significant success, highlighting the commercial value of the company's intellectual property[10] - The company has expanded the "Defend the Carrot" IP into non-gaming applications, introducing 6 new product lines, bringing the total to 13 by the end of the year[16] - A limited edition of the golden "Defend the Carrot" collectible sold out within 5 minutes, setting a record for the fastest-selling licensed merchandise[16] - The company launched a total of 48 licensed products, focusing on lifestyle and office supplies, with many items experiencing multiple restocks due to high demand[17] Regulatory and Compliance - Key risks include strict regulatory oversight in the online gaming industry and the need to manage growth effectively to sustain business performance[18] - The company has established a game content review team to ensure compliance with relevant laws and regulations, focusing on player health and safety[20] - The company emphasizes compliance with various laws and regulations impacting its operations, including the Personal Information Protection Law and the Data Security Law of the People's Republic of China[85] Environmental, Social, and Governance (ESG) - The company is committed to sustainable development and has established a governance framework for environmental, social, and governance (ESG) issues[99] - The company has established an Environmental, Social, and Governance (ESG) working group to coordinate ESG initiatives across various departments, including R&D and operations[100] - The company has set environmental targets related to greenhouse gas emissions, waste management, energy consumption, and water resource management, with management reviewing progress at least annually[100] - The company aligns its vision with the United Nations Sustainable Development Goals (SDGs) and has developed specific strategies and targets for seven relevant SDGs[102] - The company emphasizes responsible operations, innovation, and community contributions as part of its strategic goals[103] - The company has committed to community service and educational sponsorships as part of its social responsibility initiatives[84] Employee and Workplace - The company has a total of 381 employees as of December 31, 2024, an increase from 334 in 2023, with 100% being full-time employees[111] - Employee turnover rate for 2024 is 19%, down from 33% in 2023, indicating improved employee retention[116] - The company provided a total of 1,379 training hours in 2024, slightly up from 1,375 hours in 2023[161] - The company has established a reward mechanism linked to individual performance, enhancing employee motivation and retention[119] - The company emphasizes diversity and equal opportunity in its hiring and evaluation processes, with no complaints regarding workplace inequality reported this year[120] Waste and Resource Management - The company reported a total waste generation of 564.26 tons in 2024, an increase from 535.56 tons in 2023, with a waste generation density of 76.62 kg/m²[180] - The total amount of waste recycled was 281.13 tons in 2024, up from 242.68 tons in 2023[180] - The company achieved a greenhouse gas emission reduction, with total emissions of 372.41 tons CO2 equivalent in 2024, down from 517.02 tons in 2023[177] - The company has implemented energy-saving measures to reduce unnecessary energy consumption and improve energy efficiency[175] - The company has installed dual-flush systems in restrooms to promote water conservation, contributing to a reduction in overall water usage[184]

AI Product Development and Market Trends - The company has developed five AI products, including the AI Enterprise Assistant and AI Knowledge Assessment System, which have gained recognition from industry clients[8]. - The global generative AI market is projected to reach nearly $150 billion by 2027, with a compound annual growth rate (CAGR) of 85.7%[8]. - The company aims to focus on AI and data strategies, with a projected CAGR of 86.2% for generative AI investments in China over the next five years[8]. - The company has successfully implemented the AI Knowledge Assessment System in key educational institutions, aiming for nationwide promotion[8]. - The existing AI products have successfully integrated with the DeepSeek R1/V3 671B large language model, positioning the company among leading models like ChatGPT and Claude 3[13]. - The company aims to develop customized GenAI applications to meet industry demands, enhancing operational performance and creating greater shareholder value[14]. - The company has made significant advancements in GenAI, developing multiple tools and achieving breakthrough applications, particularly in the retail and education sectors[17][20]. - The partnership with Tencent Cloud aims to create a generative AI ecosystem, accelerating the intelligent upgrade of industries[19]. Strategic Partnerships and Collaborations - The company has established strategic partnerships with well-known domestic toy companies and key educational institutions to expand its AI solutions[8]. - The company is focusing on AI hardware innovation and plans to collaborate with major global and Chinese computing service providers to launch the DeepSeek integrated solution, enhancing AI service capabilities[12]. - The group plans to deepen collaboration with leading hardware and software manufacturers like DeepSeek and NVIDIA to enhance GenAI technology applications[28]. - In December 2024, the group signed a cooperation agreement with Huawei Kunpeng to develop solutions based on Kunpeng native development, contributing to the digital transformation of various industries[23]. Financial Performance and Revenue Growth - The group's revenue for the year ending December 31, 2024, was approximately RMB 1,132.6 million, an increase of about RMB 317.2 million or approximately 38.9% compared to RMB 815.3 million for the year ending December 31, 2023[30]. - The net profit for the year was approximately RMB 8.0 million, an increase of about 31.7% compared to RMB 6.1 million for the previous year[41]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[200]. - The company provided a forward guidance of 10% revenue growth for Q4 2023, projecting revenues between $1.3 billion and $1.4 billion[200]. Cost and Expense Management - The sales cost increased from approximately RMB 716.2 million to approximately RMB 1,020.3 million, reflecting an increase of about RMB 304.1 million or approximately 42.5%[31]. - Gross profit rose from approximately RMB 99.1 million to approximately RMB 112.3 million, an increase of about RMB 13.2 million or approximately 13.3%, while the gross margin decreased from 12.2% to 9.9%[32]. - Research and development expenses increased from approximately RMB 35.7 million to approximately RMB 40.0 million, reflecting a growth of about 12.1%[36]. Market Expansion and Customer Diversification - The company is actively expanding its overseas business as Chinese clients accelerate their internationalization efforts[17]. - The company aims to enhance marketing efforts to attract new customers across various regions in China while providing more flexible services to retain existing customers[75]. - The company is focusing on diversifying its customer base to reduce reliance on a major customer[76]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and compliance with environmental laws and regulations[81]. - The report adheres to the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring transparency and accuracy in the disclosed data[141]. - The company aims to foster stakeholder relationships through transparent engagement and by addressing their concerns in sustainability strategies[149]. - The total greenhouse gas emissions for the reporting period amounted to 154.68 tons of CO2 equivalent, an increase from 136.08 tons in the previous year, with a density of 0.67 tons per employee compared to 0.54 tons[161]. - The company aims to reduce energy consumption in office and operational activities to enhance energy efficiency as part of its greenhouse gas reduction commitment[161]. Employee Management and Training - The group employed 231 staff as of December 31, 2024, down from 253 staff as of December 31, 2023, with total employee benefit expenses for the year amounting to approximately RMB 51.6 million[54]. - The overall employee turnover rate is 35%, down from 40% in 2023, indicating a decrease of 5 percentage points[192]. - The company provided a total of 3,890 training hours to 228 employees, with 99% of employees receiving training, averaging 16.84 hours per employee[198]. - Female employees represent approximately 40% of the total workforce, highlighting the company's commitment to gender diversity[189]. Corporate Governance and Compliance - The company has complied with relevant laws and regulations that significantly impact its business and operations for the year ending December 31, 2024[82]. - The independent auditor, Ernst & Young, audited the consolidated financial statements for the fiscal year ending December 31, 2024[136]. - The company has a policy for indemnification of directors against liabilities incurred in the course of their duties, subject to applicable laws[114].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 12,242,889 thousand, representing an increase from RMB 10,971,109 thousand in 2023, but a decrease from RMB 12,844,822 thousand in 2022[17]. - Gross profit for 2024 was RMB 1,520,400 thousand, with a gross margin of 12.4%, down from 12.8% in 2023 and 14.3% in 2022[17]. - Net profit attributable to equity holders of the company was RMB 153,412 thousand in 2024, slightly down from RMB 154,942 thousand in 2023[17]. - Total assets increased to RMB 24,124,161 thousand in 2024, compared to RMB 23,522,431 thousand in 2023[17]. - Total liabilities rose to RMB 20,780,805 thousand in 2024, up from RMB 20,396,627 thousand in 2023[17]. - The equity-to-debt ratio improved to 53.96% in 2024 from 55.27% in 2023, indicating a stronger capital structure[17]. - The company's total profit for 2024 was RMB 224.8 million, a slight decrease of 0.16% from RMB 225.1 million in the previous year[59]. - Net profit increased by 1.93% to RMB 209.5 million in 2024, compared to RMB 205.6 million in the same period last year[61]. - The company's capital expenditure as of December 31, 2024, was RMB 1,261.8 million, significantly higher than RMB 297.1 million as of December 31, 2023[63]. Market Expansion and Contracts - In 2024, the company secured new contracts worth RMB 16.857 billion, representing a 3.87% increase compared to 2023, enhancing its market competitiveness[11]. - The company aims to expand its market presence in overseas and "Belt and Road" clean energy projects, while maintaining its traditional strengths in chemical and municipal sectors[16]. - The foreign contracting engineering business completed an operating revenue of RMB 781.02 billion from January to September 2024, representing a year-on-year growth of 2.1%[33]. - New signed contracts in the foreign contracting engineering sector reached RMB 1,220.58 billion, reflecting a growth of 23.8%[33]. - The company secured the largest single contract for a 400 MW wind power hydrogen production project in Xinjiang, marking a significant milestone in its renewable energy initiatives[35]. Innovation and Technology - The company launched 211 technology projects in 2024, emphasizing innovation and digital transformation[15]. - The company has initiated 15 technology breakthroughs in the hydrogen energy sector, including a project on the chemical depolymerization of discarded wind turbine blades[12]. - The company is advancing its research capabilities by collaborating with universities and enhancing its project and talent management mechanisms to boost innovation[86]. - The company is implementing a high-speed information technology transformation to improve data quality and management efficiency, addressing issues like data silos[87]. Cost Management and Efficiency - The company has achieved a reduction in comprehensive financing costs from 5.51% to 5.02%, supporting green project construction with lower-cost funding[13]. - The company has implemented a project management model that has led to cost reductions and increased efficiency, resulting in higher customer satisfaction[14]. - The company's sales cost for 2024 was RMB 10,722.5 million, an increase of 12.02% from RMB 9,571.9 million in 2023, reflecting the rise in revenue scale and corresponding cost inputs[45]. - The company has successfully reduced operational costs by 10% through efficiency improvements, contributing to higher profit margins[9]. Governance and Compliance - The company emphasizes the importance of compliance with regulatory requirements, including information disclosure and decision-making processes, to avoid penalties from regulatory bodies[78]. - The company aims to strengthen its governance structure and management responsibilities, focusing on performance evaluation and the establishment of exit standards for underperforming personnel[80]. - The company has established a robust mechanism for independent directors to provide independent opinions and judgments on development and business strategies[144]. - The company has complied with the Corporate Governance Code throughout the fiscal year ending December 31, 2024[140]. Human Resources and Talent Management - The company is focused on a comprehensive talent management system, promoting a dynamic environment for talent cultivation and retention[88]. - The company is committed to diversity and equal opportunity in hiring, training, and professional development[193]. - Approximately 27.0% of the company's full-time employees, including senior management, are women as of December 31, 2024[193]. - The company aims to enhance gender diversity at all levels, including encouraging current board members to nominate female candidates[195]. Environmental and Social Responsibility - The company is focusing on the development of green energy and asset value services as part of its dual-driven model for value creation[16]. - The company has successfully obtained the first batch of green power certificates and achieved an EPC installed capacity of 2.5 GW in the renewable energy sector[35]. - The company has entered the green hydrogen production sector and is expanding into renewable energy projects in Southeast Asia and Africa, including significant contracts in Indonesia and Kazakhstan[37]. Risk Management - The company faces significant risks related to policy regulation, market fluctuations, and environmental compliance, which could impact its operational and financial performance[76][77]. - The company has established effective comprehensive risk management systems to enhance risk prevention and management levels[187]. - The company conducts annual risk assessments to evaluate the risk situation for the following year[188].

Financial Performance - The company's audited revenue for the year ended December 31, 2024, was RMB 1,055.6 million, a decrease of 11.1% compared to RMB 1,186.99 million in 2023[9]. - The gross profit for the same period was RMB 413.0 million, down 16.6% from RMB 495.5 million, resulting in a gross margin of 39.1%[9]. - The net loss attributable to equity holders of the company was RMB 127.0 million, compared to a loss of RMB 96.9 million in the previous year[9]. - Total revenue decreased by 11.1% to RMB 1,055.6 million for the year ended December 31, 2024, compared to RMB 1,187.0 million in 2023[28]. - SaaS and marketing services revenue fell by 20.2% to RMB 333.7 million, driven by a reduction in sales leads from 794,761 to 633,769[30]. - Revenue from the interior design and construction business decreased by 8.8% to RMB 665.2 million, down from RMB 729.7 million in the previous year[31]. - The company reported an adjusted net loss attributable to equity holders of RMB 93.9 million, compared to a loss of RMB 36.0 million in the prior year[23]. Sales and Marketing - The number of sales leads decreased to 633,769, a decline of 20.3% from 794,761 in 2023[10]. - Revenue from SaaS and marketing services was RMB 333.7 million, down 20.2% year-on-year, primarily due to the reduction in sales leads[16]. - The average revenue per sales lead for SaaS and marketing services remained stable at RMB 527, slightly up from RMB 526 in 2023[10]. Cost Management - The company continues to implement cost-saving strategies to support its operations during this economic cycle[17]. - Sales costs decreased by 7.1% from RMB 691.5 million to RMB 642.6 million, mainly due to reduced costs in the interior design and construction business[34]. - Selling and marketing expenses decreased by 3.0% from RMB 430.0 million to RMB 417.1 million, reflecting efforts in cost control and efficiency improvement[39]. - Administrative expenses decreased by 15.3% from RMB 75.9 million to RMB 64.3 million, primarily due to reduced wages and benefits[40]. - Research and development expenses decreased by 24.0% from RMB 37.1 million to RMB 28.2 million, mainly due to a reduction in wages and benefits[41]. Cash Flow and Financial Position - Cash and cash equivalents stood at RMB 119.2 million, with time deposits of RMB 745.9 million and restricted cash of RMB 82.7 million as of December 31, 2024[23]. - The net cash used in operating activities for the year ended December 31, 2024, was RMB 66.3 million, an improvement from RMB 247.4 million in the previous year[51]. - The net cash generated from investing activities was RMB 73.6 million, primarily due to the sale of financial assets valued at RMB 182.6 million[53]. - The net cash used in financing activities was RMB 148.9 million, mainly due to loan repayments of RMB 217.6 million[54]. - Accounts receivable and other receivables increased by 27.4% to RMB 219.3 million as of December 31, 2024, from RMB 172.2 million as of December 31, 2023[55]. - Accounts payable and other payables rose by 37.2% to RMB 574.0 million as of December 31, 2024, from RMB 418.3 million as of December 31, 2023[56]. - Total borrowings decreased by 49.6% to RMB 107.1 million as of December 31, 2024, from RMB 212.8 million as of December 31, 2023[57]. - The company's leverage ratio was 12.1% as of December 31, 2024, down from 20.6% as of December 31, 2023[60]. Governance and Management - The company adheres to strict corporate governance principles, promoting high ethical standards, transparency, and accountability to strengthen shareholder trust[95]. - The board consists of nine directors, including three independent non-executive directors, ensuring a diverse range of business experience and expertise[98]. - The roles of Chairman and CEO are currently held by Mr. Deng Huajin, which the board believes ensures consistent internal leadership and effective strategic planning[99]. - The company has established procedures for the appointment, re-election, and removal of directors, enhancing governance practices[103]. - The board is responsible for strategic planning and major investment decisions, while daily management is delegated to senior management[97]. Risk Management - The company has established a robust, comprehensive, and technology-driven risk management system to effectively manage and mitigate inherent business risks[138]. - The board of directors is responsible for the company's risk management and internal control systems, which are deemed sufficient and effective[140]. - The company has implemented a whistleblowing policy to provide a secure and confidential mechanism for reporting concerns regarding financial reporting and internal controls[141]. - An anti-corruption policy has been established to prevent corruption and bribery within the company, with internal reporting channels available for employees[142]. Environmental, Social, and Governance (ESG) - The company has been publishing its Environmental, Social, and Governance (ESG) reports annually since 2018, addressing stakeholder concerns regarding sustainable development[149]. - The reporting period for the ESG report covers January 1, 2024, to December 31, 2024, encompassing the company's main businesses[150]. - The report is prepared in accordance with the ESG Reporting Guidelines set by the Hong Kong Stock Exchange[151]. - The board emphasizes the importance of ESG performance for the long-term stability and development of the company, establishing an effective ESG governance mechanism[155]. - The company has identified 17 key ESG issues through a substantiality assessment process, prioritizing them based on their importance to stakeholders and alignment with the company's development[163]. Supplier Management - The company has established a robust supplier management system, including strict qualification review and performance evaluation processes to ensure quality control from the source[194]. - The supplier evaluation process includes a comprehensive scoring system based on five dimensions: integrity, sales, orders, delivery, and quality, with regular assessments to ensure compliance and performance[195]. - The company requires suppliers to provide essential qualification documents, such as business licenses and product testing reports, to ensure compliance with standards[195]. - The company focuses on building a sustainable supply chain that strengthens safety and environmental standards[197].

Financial Performance - Revenue for 2024 reached HK$3,919 million, a 1.2% increase from HK$3,873 million in 2023[6] - Gross profit for 2024 was HK$2,234 million, with a gross margin of 57.0%, down from 58.4% in 2023[6] - Operating profit decreased to HK$377 million in 2024, resulting in an operating margin of 9.6%, compared to 13.0% in 2023[6] - Profit attributable to shareholders for 2024 was HK$216 million, with a net profit margin of 5.5%, down from 8.9% in 2023[6] - Cash and bank balances less bank loans stood at HK$810 million, a decrease from HK$905 million in 2023[6] - Total assets decreased to HK$3,766 million in 2024, down from HK$3,856 million in 2023[6] - Market capitalization decreased to HK$2,715 million in 2024, down from HK$4,259 million in 2023[6] - EBITDA for the year was HK$880 million, with an EBITDA margin of 22.5%, down from 26.2% in 2023[8] - Operating expenses as a percentage of revenue increased to 48.7% (2023: 47.2%), mainly driven by non-recurring expenses in the first half[51] - The net profit attributable to the shareholders of the Company was HK$216 million (2023: HK$345 million), primarily due to non-recurring expenses and underperformance in Greater China[51] Store Operations - The number of direct-operated stores decreased to 973 in 2024, down from 1,055 in 2023[6] - The total number of stores worldwide was 1,732 in 2024, a decline from 1,822 in 2023[6] - Same-store sales increased by 2.3% year-on-year, driven by a positive growth of 6.4% in the second half, compared to a 1.4% decline in the first half[60] - The number of stores at year-end decreased to 1,732 from 1,822 in the previous year, reflecting a reduction of 90 stores[54] - The company plans to implement targeted initiatives to enhance brand investment and improve store performance in Mainland China, aiming for sustainable growth[115] Strategic Initiatives - The company has launched a five-year strategy called "Beyond Boundaries" aimed at transforming Giordano into a growth company by focusing on core strengths such as design, development, sourcing, and sales of quality products[22][33] - The implementation of "One Giordano" aims to create a unified team with shared talent and resources to enhance operational efficiency[42] - The management team remains committed to creating value for customers, shareholders, and stakeholders as part of the ongoing transformation[39] - The company is committed to executing its 'Beyond Boundaries' 5-year strategy, focusing on disciplined expense management and long-term growth[88] - The strategic roadmap includes a goal to achieve a high single to low double-digit compound annual growth rate (CAGR) between 2025 and 2030[164] Market Performance - Giordano's revenue decreased by 3.4% in the first half of 2024, but achieved a 5.9% growth in the second half following the implementation of Quick Win initiatives[30][34] - On a constant exchange rate basis, revenue was up by 3.2% for the full year, fueled by improved performances in Southeast Asia and Australia, as well as the online business in Mainland China[51] - The Group achieved a notable 1.2% increase in revenue for the full year, driven by a robust sales rebound of 5.9% in the second half[51] - The Mainland China wholesale to franchisees recorded a 15.0% decline, with revenue dropping to HK$119 million from HK$140 million[69] - Online sales reported significant growth of 11.3%, with a 22.4% increase in the second half, supported by e-commerce Quick Win initiatives[65] Leadership and Management - Under the leadership of CEO Colin Currie, the management team is committed to creating long-term value for shareholders through disciplined investment and operational excellence[21][26] - The Board of Directors fully supports the strategic direction set by the management team, emphasizing the importance of strong leadership during the transformation[23][24] - Mr. Colin Melville Kennedy CURRIE was appointed as the Chief Executive Officer and Executive Director of the Company on April 5, 2024, bringing over 30 years of international general management experience[200] - Dr. Chan Ka Wai will assume the roles of Chief Financial Officer and Chief Sales Officer starting January 1, 2025, after serving as Chief Operating Officer since April 1, 2015[199] Financial Health - Cash and bank balances decreased to HK$810 million in 2024 from HK$905 million in 2023, primarily due to reduced operating cash inflows[141] - The company's leverage ratio remained stable at 1.2% in 2024, compared to 1.3% in 2023, indicating a solid financial position[141] - The Group's gearing ratio improved slightly to 1.2% in 2024 from 1.3% in 2023, with a current ratio of 1.5 compared to 1.6 in the previous year[147] - The Group's trade receivables turnover days improved to 44 days in 2024 from 52 days in 2023, while trade payables increased to 63 days from 45 days[159] Challenges and Opportunities - The economic conditions in Greater China remain challenging, leading to a continued weaker performance in this key market, with a profit decline of HK$41 million from Mainland China[86] - The offline business faced significant challenges, with a notable decline in sales due to high-aged inventory and diminished brand perception, leading to a reported loss for the year in Mainland China[105][107] - The company recognizes the importance of creating long-term value for shareholders as a top priority, supported by a dedicated team and strategic vision[26] - The company aims to enhance its e-commerce channel as online penetration across all markets is below industry norms[175] Employee Development - The company is committed to investing in staff development through various training programs to enhance skills and knowledge[179] - The company has approximately 6,627 employees as of December 31, 2024, and offers competitive remuneration and training programs to maintain a skilled workforce[196] - The average age of the management team is 49 years, indicating a blend of experience and youthful leadership[196]

Financial Performance - The company's revenue for 2024 was approximately RMB 4.83 billion, a decrease of 6.4% compared to RMB 5.16 billion in 2023[3]. - Net profit attributable to shareholders for 2024 was RMB 358.76 million, down from RMB 370.21 million in 2023, resulting in basic earnings per share of RMB 0.131[3]. - The total revenue for the fiscal year 2024 decreased by 6.4% to RMB 4,832,036,000 compared to RMB 5,163,306,000 in 2023[19]. - The company's net profit attributable to equity holders decreased by 3.1% to RMB 358,757,000 in 2024 from RMB 370,209,000 in 2023[38]. - Total comprehensive income attributable to equity holders for 2024 was RMB 271,536,000, down from RMB 349,996,000 in 2023, impacted by foreign currency translation differences and fair value adjustments[55]. - The sales cost for 2024 was RMB 3,848,493,000, a reduction of 4.3% compared to RMB 4,019,922,000 in 2023, due to decreased revenue and related processing costs[40]. - The distribution costs increased to RMB 144,072,000 in 2024 from RMB 118,053,000 in 2023, representing about 3.0% of total revenue[48]. - The company's interest-bearing borrowings increased to RMB 3,284,666,000 as of December 31, 2024, up from RMB 2,895,021,000 in 2023[103]. - The adjusted net debt-to-equity ratio as of December 31, 2024, was 36%, slightly up from 35% in 2023[102]. - The net cash generated from operating activities for the year was RMB 501,762,000, a significant increase from RMB 55,129,000 in 2023, primarily due to stricter control over receivables[103]. Sales and Market Trends - The sales of mold steel, which accounted for 47.1% of total revenue, declined by 3.1% to RMB 2,273,870,000 from RMB 2,345,986,000 in the previous year[23]. - Domestic sales of mold steel increased by 16.2% to RMB 1,008,398,000, while export sales decreased by 14.4% to RMB 1,265,472,000[20][22]. - High-speed steel revenue, representing 17.0% of total revenue, saw a slight increase of 0.7% to RMB 821,478,000 from RMB 815,904,000[24][25]. - Domestic sales of high-speed steel rose by 9.8% to RMB 422,033,000, while export sales fell by 7.4% to RMB 399,445,000[24][26]. - The cutting tools segment, which accounted for 18.2% of total revenue, experienced a 2.9% decline in sales to RMB 879,342,000 from RMB 905,754,000[27][28]. - Domestic sales of cutting tools decreased by 13.6% to RMB 333,274,000, while export sales increased by RMB 26,040,000[27][29]. - Titanium alloy revenue, making up 15.6% of total revenue, dropped by 21.5% to RMB 756,370,000 from RMB 963,836,000[30][31]. - Domestic sales of titanium alloys fell by 21.8% to RMB 747,406,000, while export sales increased by 15.1% to RMB 8,964,000[30][31]. - The demand for high-performance materials in downstream high-end manufacturing sectors, including automotive and aerospace, is driving the growth of special steel, with a continuous increase in production and quality[69]. Research and Development - The company’s R&D expenditure rate exceeded 6% for two consecutive years, with 59 ongoing R&D projects and 16 new initiatives planned for 2025[10]. - The company plans to establish a precision tool research institute to enhance its technological influence and market coverage in high-performance cutting tools[14]. - The company invested RMB 301.55 million in R&D, accounting for 6% of total annual revenue[143]. - The company has applied for 89 patents during the reporting period, including 26 invention patents and 63 utility model patents, with a total of 277 patents held as of the end of 2024[159]. - The company initiated a national key R&D project in collaboration with Tsinghua University and other renowned institutions, focusing on new die-casting mold steel powder metallurgy and additive manufacturing technologies[78]. Product Development and Innovation - The company launched new products including TGE22 and TGE23 large-size die steel for die-casting, which have already been delivered to downstream customers[10]. - The company has made breakthroughs in key technologies related to powder preparation, forming, sintering, and heat treatment, establishing a comprehensive technical system for powder high-speed steel[62]. - The company developed a double-spiral hole hard alloy bar, which is set to enter mass production, optimizing cooling effects and improving processing efficiency for high-performance tools[76]. - The company successfully delivered its first aerospace-grade titanium alloy wire order, meeting high standards and passing strict certification processes[79]. - The company has established a postdoctoral research station in Jiangsu Province, which has been upgraded to a national level, focusing on research in die steel processes and powder metallurgy materials[153]. Sustainability and ESG Initiatives - The company emphasizes green development and resource management, focusing on reducing carbon emissions and optimizing production processes[90]. - The company has implemented measures to mitigate credit risk, including insurance for trade receivables and regular reviews of recoverable amounts[111]. - The ESG report covers the performance of Tian Gong International Limited and its subsidiaries for the fiscal year 2024, from January 1, 2024, to December 31, 2024[122]. - The company is committed to continuous monitoring of greenhouse gas emissions, energy efficiency, and waste management goals[129]. - The group has established a three-tier environmental management system, with five subsidiaries obtaining ISO 14001 certification by the end of 2024[176]. Market Expansion and Global Presence - The company is expanding its global footprint, with the precision tool factory in Thailand increasing production capacity to 12 million units per month[11]. - The company successfully penetrated the North American market with high-quality titanium alloy wire for 3D printing applications, establishing a reputation in the supply chain[34]. - The company has expanded its international presence by adding sales points in Canada and Vietnam, supplying raw materials to well-known enterprises in Europe and the United States[171]. - The company is actively exploring new markets to reduce dependence on any single economy, addressing risks related to global macroeconomic uncertainties[114]. Operational Efficiency - The company has implemented a strict product quality control system to ensure excellence from raw materials to finished products[142]. - The company has integrated various systems such as ERP, MES, and SCADA to optimize production and supply chain management[157]. - The company has streamlined its customer complaint handling process, simplifying issue categorization and conducting monthly reviews of complaints for continuous improvement[172]. - The company has invested in advanced quality inspection equipment, including a thermal expansion deformation testing instrument and a fluorescence spectrometer, to enhance steel performance testing capabilities[163]. Employee and Workforce Management - Employee costs for the year totaled RMB 421,605,000, up from RMB 397,116,000 in 2023, attributed to an increase in employee numbers and salary adjustments[109]. - The company employs 3,527 staff as of December 31, 2024, compared to 3,517 in 2023, maintaining a gender ratio of approximately 73% male to 27% female[109][117]. - The company has conducted regular training on intellectual property protection to enhance employee awareness and prevent infringement of third-party rights[159]. Future Projections and Industry Trends - The integrated die-casting industry in China is expected to reach a market size of RMB 38.9 to 40.5 billion by 2025, with new energy vehicles accounting for RMB 25.8 to 30 billion[93]. - The demand for high-strength, lightweight special steel is expected to continue rising, particularly driven by the rapid development of new energy vehicles and smart cars[91]. - By 2025, the automotive industry is projected to consume approximately 57.5 million tons of steel, with a year-on-year growth of 1.8%[93]. - The global market for high-speed steel cutting tools reached RMB 21.749 billion in 2023, with China's market size at RMB 6.794 billion, projected to grow to RMB 30.995 billion by 2029 at a CAGR of approximately 5.84%[73].

Strategic Shift and Business Focus - The company reported a strategic shift after the disposal of the majority equity of its lighting business in China in late 2019, focusing on international professional lighting and non-lighting products for smart life solutions[8]. - The company aims to provide efficient, energy-saving, and healthy lighting solutions across various sectors, including construction, transportation, and urban lighting[9]. - The company focuses on creating safe and healthy smart home and commercial office environments as part of its business transformation strategy[8]. - The international lighting business remains the core business, contributing the majority of revenue despite a challenging economic environment[25]. - The international lighting business will remain the core business of the company in 2025, with a focus on indoor air quality development to enhance future revenue sources[33]. Production and Innovation - The company has established production plants in Zhejiang, Shanghai, Zhuhai, and Vietnam, and has set up operation agencies in over 40 countries and regions worldwide[8]. - The company is committed to independent innovation in product research and development since its establishment in 1998[9]. - The company has overseas product development centers that meet European standards, enhancing its international competitiveness[8]. - The research department implemented a "synchronous development and concurrent engineering" model, significantly speeding up new product research and development efficiency[99]. - Major product categories underwent successful platformization and serialization, enhancing the competitiveness of the manufacturing system[99]. Financial Performance - Revenue for 2024 was reported at $236,603,000, a slight increase from $235,978,000 in 2023, but a decrease from $279,468,000 in 2022[16]. - Gross profit for 2024 increased to $74,651,000, resulting in a gross profit margin of 31.6%, up from 28.5% in 2023[16]. - The company reported a loss before income tax of $12,307,000 for 2024, translating to a loss margin of (5.2%) compared to a profit margin of 17.1% in 2023[16]. - Total equity attributable to owners decreased to $456,498,000 in 2024 from $483,771,000 in 2023[19]. - The current ratio for 2024 was 3.02, slightly down from 3.05 in 2023, indicating stable liquidity[19]. Market Strategy and Product Launches - In 2025, the company plans to launch over 60 new products under the ETI brand, including a linear light series[32]. - The company aims to enhance its brand awareness in international markets while promoting cost-effective and intelligent products[28]. - The Group will continue to optimize product lines through platformization, modularization, and standardization to maintain its strategic supplier position[30]. - The company intends to introduce new product lines, including AURA and linear lighting for data center applications, to maintain gross profit[47]. - The Group's strategy focuses on providing unmatched LED lighting solutions through a vertically integrated global supply chain and deep partnerships with independent distributors[99]. Regional Market Insights - The Japanese market is expected to see flat lighting demand in 2025, with fierce competition leading to price wars that compress profit margins[37]. - The company aims to optimize production processes to reduce costs and improve product competitiveness in the Japanese market[38]. - In the UK and Nordic markets, the company plans to enhance performance in Denmark and re-enter Norway, focusing on sales recovery and gross margin improvement[43]. - The project channel in the Vietnamese market performed strongly in 2024, securing considerable orders in outdoor landscape and street lighting[85]. - The Southeast Asian market strategy, focusing on dual-channel (project and distribution), yielded significant results throughout 2024[84]. Cost Management and Procurement Strategy - The Group is adjusting its procurement strategy to enhance product competitiveness by utilizing bidding and price negotiation processes, and expanding in-house production of components[63]. - The Group's procurement strategy was strengthened, and self-production processes were implemented to reduce costs and enhance competitiveness[138][139]. - The Group aims to improve product cost competitiveness by controlling raw material prices and optimizing inventory management[57]. - Selling and distribution costs decreased by 11.5% to US$30,843,000, with the percentage of revenue dropping from 14.8% to 13.0%[144]. - Administrative expenses decreased by 7.2% to US$33,939,000, with the percentage of administrative expenses to revenue declining from 15.5% to 14.3% due to lower depreciation and amortization[150][158]. Economic Environment and Challenges - In 2024, the global economic growth is expected to remain stable at 3.2%, with significant challenges faced by various industries due to the economic slowdown and high inflation[62]. - The overall economic environment has led to a decline in consumer market demand, increasing competitive pressure in the terminal market[138][139]. - The North American LED general lighting market showed overall weakness in 2024 due to reduced consumer spending amid a sluggish economy and real estate market[73]. - Rising prices due to yen depreciation have suppressed overall consumer spending in Japan, leading to a significant drop in demand for lighting products[76]. - The UK and European markets continued to be affected by slow economic growth and high interest rates, impacting overall market performance[77]. Brand Development and Marketing - The company launched a new brand strategy in 2020 with the mission "Life As You Wish," aligning its corporate vision with humanistic values[10]. - The Group completed brand upgrades and re-launches for multiple lighting sub-brands, enhancing brand recognition and loyalty to capture more market share[91]. - The brand image of "ETI" in North America was renewed, optimizing the logo and injecting a new interpretation of the brand concept[92]. - The Group will focus on brand promotion through targeted marketing and participation in key exhibitions to enhance product visibility in overseas markets[49]. - In 2025, the Group will continue to invest in brand building and marketing resources to enhance brand visibility and business opportunities[53].

Revenue Performance - The total revenue for the year ended December 31, 2024, was approximately HKD 345.9 million, a decrease of 30.2% from HKD 495.65 million in 2023[7]. - The revenue from the paint and coating business decreased by 33.5% to approximately HKD 298.34 million in 2024, compared to HKD 448.48 million in 2023[6]. - The investment property business generated revenue of approximately HKD 37.71 million in 2024, an increase of 4.2% from HKD 36.18 million in 2023[7]. - The hotel business revenue decreased by 10.5% to approximately HKD 9.85 million in 2024, down from HKD 11 million in 2023[7]. - The paint and coatings business of the subsidiary accounted for 86.3% of the group's revenue for the year ended December 31, 2024, down from 90.5% for the year ended December 31, 2023[14]. Profit and Loss - The gross profit decreased by 17.2% to approximately HKD 144.57 million in 2024, compared to HKD 174.59 million in 2023[7]. - The loss attributable to shareholders increased to approximately HKD 77.38 million in 2024, compared to HKD 68.58 million in 2023[7]. - The group recorded a loss attributable to shareholders of approximately HKD 77,380,000 for the year ended December 31, 2024, compared to a loss of approximately HKD 68,580,000 for the year ended December 31, 2023, primarily due to significant fair value losses on investment properties[12]. - The group's adjusted profit was approximately HKD 30,190,000 for the year ended December 31, 2024, compared to HKD 33,350,000 for the previous year[13]. Market Conditions and Outlook - The company anticipates that the property market will remain sluggish in 2025, with rental levels under pressure due to oversupply[8]. - The Chinese government's new economic stimulus measures are expected to gradually revive the market, despite ongoing geopolitical and economic uncertainties[8]. - The company is focusing on innovation and efficiency to adapt to the changing market environment and mitigate the impact of declining sales[9]. - The company plans to explore expansion opportunities in other regions to maintain growth and maximize potential revenue[34]. Sales and Distribution - Sales to real estate developers and contractors in mainland China for private residential projects dropped by 78.3% to HKD 17,960,000 for the year ending December 31, 2024, from HKD 82,690,000 in the previous year[27]. - Sales to wholesale and retail distributors in mainland China decreased by 29.4% to approximately HKD 109,280,000 for the year ending December 31, 2024, down from HKD 154,740,000 for the year ending December 31, 2023[29]. - Sales to industrial manufacturers in mainland China fell by 18.4% to approximately HKD 87,130,000 for the year ending December 31, 2024, compared to HKD 106,710,000 for the year ending December 31, 2023[30]. - The mainland China market accounted for approximately 80.8% of total revenue from paint and coatings sales in 2024, down from 86.8% in 2023[25]. Cost Management - The cost of raw materials as a percentage of total production costs decreased from 86.3% in 2023 to 82.5% in 2024, reflecting strategic measures to optimize costs[39]. - The overall raw material costs significantly decreased by 41.1%, exceeding the sales decline of 33.5%, indicating substantial progress in cost management[39]. - Selling and distribution expenses decreased by 18.3% to HKD 50,890,000, compared to HKD 62,290,000 in 2023[43]. - Administrative expenses decreased by 12.0% to approximately HKD 73,880,000, down from about HKD 83,910,000 in the previous year[44]. Employee and Operational Metrics - As of December 31, 2024, the group employed 459 staff, down from 517 staff as of December 31, 2023[77]. - Employee costs for the year ended December 31, 2024, were approximately HKD 88,390,000, a decrease from HKD 105,060,000 for the year ended December 31, 2023[77]. - The average monthly employee turnover rate for 2024 is 5.98% in Hong Kong, consistent with the previous year[163]. - The company has established internal management systems outlining regulations for recruitment, promotion, and employee benefits[158]. Corporate Governance - The board emphasizes the importance of good corporate governance practices and has implemented mechanisms to ensure independent viewpoints are considered[90]. - The board of directors has been actively involved in overseeing the overall strategy, operational and financial performance, and other responsibilities, with each director attending 100% of regular board meetings[92]. - The company has adopted a board diversity policy, with female directors currently representing 14.3% of the board, aiming to maintain and gradually increase this ratio[96]. - The board will review the succession plan for directors at least annually to ensure effective governance and continuity[96]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a sustainable development framework focusing on environmental protection, resource management, employee welfare, and community benefits[135]. - The board believes that a robust ESG strategy can create investment value and long-term returns for stakeholders[138]. - The company engages with stakeholders through various channels to ensure smooth communication and address their needs and expectations[140]. - The company has implemented various energy-saving measures, including optimizing the use of electrical appliances and encouraging employees to adopt energy-efficient practices[150]. Financial Position - The total outstanding bank and other borrowings decreased by 9.6% to HKD 195,970,000 as of December 31, 2024, compared to HKD 216,750,000 as of December 31, 2023[50]. - The current ratio increased by 3.8% from 1.30 on December 31, 2023, to 1.35 on December 31, 2024, reflecting improved financial efficiency[50]. - The company's total shareholder equity was approximately HKD 1,219,560,000 as of December 31, 2024, down from HKD 1,323,300,000 in 2023, with a net asset value per share of HKD 0.70[70]. - The debt-to-equity ratio as of December 31, 2024, was 11.3%, down from 13.0% in 2023, while the current ratio improved to 1.46 from 1.38[69].

Financial Performance - For the three months ended March 31, 2025, the company reported interest income of RMB 44,103,000, a decrease of 15.5% from RMB 52,219,000 in the same period of 2024[3] - Net interest income for the same period was RMB 35,199,000, down 13.5% from RMB 40,610,000 year-on-year[3] - The company recorded a pre-tax profit of RMB 20,858,000, a significant decline of 61.3% compared to RMB 53,830,000 in the previous year[3] - The net profit attributable to the owners of the parent company was RMB 14,830,000, down 61.0% from RMB 38,062,000 in the same period last year[3] - The company reported a decrease in other net income to RMB (4,452,000) from RMB 17,876,000, reflecting a significant decline[3] - The company’s administrative expenses increased to RMB 10,293,000 from RMB 9,454,000, an increase of 8.8%[3] Assets and Liabilities - Total assets increased to RMB 2,641,886,000 as of March 31, 2025, compared to RMB 2,578,519,000 at the end of 2024, reflecting a growth of 2.5%[4] - The company's cash and cash equivalents decreased to RMB 5,032,000 from RMB 10,515,000, a decline of 52.2%[4] - The total liabilities increased to RMB 585,357,000 from RMB 537,408,000, marking an increase of 8.9%[4] - The company’s net assets rose to RMB 2,056,529,000, up from RMB 2,041,111,000, indicating a growth of 0.8%[4]

Financial Performance - JD Logistics reported total revenue of RMB 182.84 billion for 2024, representing a year-on-year growth of 9.7%[12] - Revenue from external customers reached RMB 127.8 billion, accounting for nearly 70% of total revenue, with a year-on-year increase of 9.6%[12] - The non-IFRS profit for 2024 was RMB 7.92 billion, a significant increase of 186.8% compared to the previous year, achieving the highest profit level since the company's IPO[13] - The non-IFRS profit margin reached 4.3%, marking the best performance in terms of profit and profit margin since the company went public[13] - JD Logistics' gross profit for 2024 was RMB 18.70 billion, compared to RMB 12.68 billion in 2023, reflecting a strong growth trajectory[9] - The company achieved a pre-tax profit of RMB 7.72 billion in 2024, a significant improvement from RMB 1.62 billion in 2023[9] - Revenue from other clients, including express and freight services, reached RMB 95.5 billion in 2024, reflecting a year-on-year growth of 12.1%[31] - The company’s annual profit attributable to owners increased significantly from RMB 616.2 million in 2023 to RMB 6.2 billion in 2024[53] - The company’s non-IFRS profit for the year was RMB 7.9 billion, compared to RMB 2.8 billion in the previous year, indicating strong operational performance[53] - Gross profit rose from RMB 12.7 billion in 2023 to RMB 18.7 billion in 2024, resulting in a gross margin increase from 7.6% to 10.2%[61] - Net profit increased significantly from RMB 1.2 billion in 2023 to RMB 7.1 billion in 2024, primarily driven by the increase in gross profit[65] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 117.87 billion, an increase from RMB 112.90 billion in 2023[10] - The company's equity attributable to owners increased to RMB 55.32 billion in 2024, up from RMB 48.16 billion in 2023[10] - Non-current assets decreased to RMB 50.13 billion in 2024 from RMB 56.24 billion in 2023, indicating a strategic shift in asset management[10] - Current assets increased to RMB 67.74 billion in 2024, up from RMB 56.66 billion in 2023, highlighting improved liquidity[10] - As of December 31, 2024, the company's capital debt ratio was approximately 13.1%[83] - The outstanding borrowings as of December 31, 2024, were RMB 7.2 billion[140] Customer and Market Growth - In 2024, the number of external integrated supply chain customers increased to 80,703, representing a year-on-year growth of 8.0%, with an average revenue per customer of RMB 400,000[21] - The company has integrated supply chain revenue from external customers amounting to RMB 32.3 billion, maintaining a steady growth trend[21] - In 2024, the company's integrated supply chain customer revenue reached RMB 87.4 billion, with external integrated supply chain customer revenue at RMB 32.3 billion, maintaining a steady growth trend[25] - Revenue from integrated supply chain customers rose by 7.2% from RMB 81.5 billion in 2023 to RMB 87.4 billion in 2024, attributed to increased demand and a rise in the number of external integrated supply chain customers from 74,714 to 80,703[56] Operational Efficiency and Infrastructure - The company has integrated advanced technologies in its logistics operations, achieving full automation in storage, picking, packing, and sorting processes, significantly enhancing operational efficiency[36] - The company has launched the "Smart Wolf" solution, which utilizes a three-dimensional design for high-density storage, improving picking and storage efficiency while reducing operational costs[38] - The company has established a comprehensive transportation network, including land, air, sea, and multimodal transport, optimizing logistics management and route efficiency[43] - The company has strengthened its logistics capabilities with 9 cargo aircraft in operation, enhancing service efficiency and market competitiveness[15] - The company operates more than 1,600 warehouses and nearly 19,000 delivery stations and points, employing over 370,000 self-operated delivery personnel as of December 31, 2024[24] Research and Development - Research and development expenses remained stable at RMB 3.6 billion for both 2023 and 2024[63] - The company has received more than 5,000 authorized patents and software, with over 3,000 related to automation and unmanned technologies as of December 31, 2024[38] Corporate Governance and Management - The board of directors includes Hu Wei as the CEO since June 26, 2023, and Liu Qiangdong as the chairman since January 19, 2012[95] - The company has appointed new independent non-executive directors, including Ye Lin and Wu Yan'an, effective from June 28, 2024, and February 14, 2025, respectively[97] - The board of directors presented the annual report and consolidated financial statements for the fiscal year ending December 31, 2024[115] - The company emphasizes good corporate governance to protect shareholder interests, with independent non-executive directors confirming no conflicts of interest with controlling shareholders[157] Future Plans and Challenges - The company plans to acquire approximately 36.43% equity in a subsidiary for a total consideration of up to RMB 6.484 billion, with the transaction expected to be completed by April 30, 2026[84] - The company is prioritizing continuous business growth and profitability, although profitability may fluctuate significantly in the short to medium term[129] - The company faces intense competition, which may negatively impact its operating performance and market share[129] - The company relies heavily on its technological infrastructure and platform, and any failure to improve or effectively utilize these may adversely affect its operations and prospects[130] Employee and Compensation - The company had a total of 498,709 employees as of December 31, 2024, with 95.5% in operations[90] - The total employee compensation expenses, including share-based payments, amounted to RMB 68.8 billion in 2024, a year-on-year increase of 10.7% from RMB 62.2 billion in 2023[91] - The company’s total human resources expenditure reached RMB 89.2 billion for the year ending December 31, 2024, reflecting its commitment to creating more job opportunities[52] Shareholder Information - As of December 31, 2024, the company has issued 6,627,381,772 shares, with Liu Qiangdong holding 4,291,457,805 shares, representing 64.75% ownership[160] - Liu Qiangdong's voting rights account for approximately 71.7% of the total voting power due to his holdings in JD.com[163] - The company has not established any arrangements allowing directors to benefit from acquiring shares or bonds of the company or any other entity[158]