Financial Performance - Yihai International Holding Ltd. reported a consolidated revenue of HK$3.5 billion for the fiscal year 2024, representing a year-on-year increase of 15%[3]. - The company achieved a net profit of HK$500 million, which is a 20% increase compared to the previous year[3]. - The company has set a revenue guidance of HK$4 billion for the fiscal year 2025, projecting a growth rate of approximately 14%[3]. - For the year ended December 31, 2024, the company's revenue reached RMB 6,539,569,000, representing an increase from RMB 6,147,573,000 in 2023, which is a year-on-year growth of approximately 6.4%[29]. - Gross profit for the same period was RMB 2,045,813,000, up from RMB 1,941,304,000 in 2023, indicating a growth of about 5.4%[29]. - Profit for the year was RMB 799,477,000, a decrease from RMB 907,028,000 in 2023, reflecting a decline of approximately 11.9%[29]. - The total assets of the company as of December 31, 2024, were RMB 5,799,294,000, down from RMB 6,054,438,000 in 2023, marking a decrease of about 4.2%[31]. - The company reported a total equity of RMB 4,733,160,000 as of December 31, 2024, compared to RMB 5,089,410,000 in 2023, which is a decline of approximately 7%[31]. - Net profit decreased by 11.9% from RMB 907.0 million in 2023 to RMB 799.5 million in 2024, with basic earnings per share dropping from RMB 87.5 cents to RMB 76.2 cents[117]. Customer Growth and Market Expansion - User data indicates a growth in active customers by 25%, reaching a total of 1.2 million users[3]. - Yihai International plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[3]. - The company has entered into a strategic partnership with Haidilao to enhance distribution channels, expected to increase sales by 30% in the next fiscal year[3]. - The company is investing HK$200 million in R&D for new food technologies to enhance product quality and sustainability[3]. - The Group aims to address market changes by focusing on consumer needs and capturing market dynamics through tailored product offerings[33]. Product Development and Innovation - Yihai International is expanding its product line with the introduction of three new condiment products in Q1 2025, aiming to capture a larger market share[3]. - The company conducted a comprehensive review of its research and development team to better align with consumer demands, indicating a strategic focus on enhancing product offerings[34]. - The Group aims to enhance overall research and development capabilities by increasing investment in raw materials, techniques, and taste[42]. - The Group launched various new products tailored to local tastes and current food trends, enhancing consumer coverage in the instant meal category[63]. - The Group launched over 50 new products across all categories by December 31, 2024, including zero additives series and various ready-to-eat food options[65]. Sales and Revenue Channels - Revenue from third parties amounted to RMB 45.657 million in 2024, representing a year-on-year increase of 10.37%[33]. - E-commerce channels achieved sales revenue of RMB 398.7 million, representing a year-on-year increase of 30.9%[60]. - Revenue from beef tallow hot pot soup flavoring products amounted to RMB 584.0 million, representing a year-on-year increase of 12.1%[48]. - Revenue from tomato hot pot soup flavoring products amounted to RMB 424.3 million, representing a year-on-year increase of 8.6%[48]. - Revenue from crayfish seasonings amounted to RMB 222.8 million, representing a year-on-year increase of 31.5%[48]. Strategic Partnerships and Acquisitions - A new acquisition of a local snack brand is anticipated to be finalized by Q2 2025, which is expected to contribute an additional HK$150 million in revenue[3]. - The company entered into a purchase agreement with Shuhai Supply Chain on October 17, 2023, for the sale of food ingredients[13]. - A sales agreement was also established with Shuhai Supply Chain on October 17, 2023, for the sale of Shuhai Customized Products and Shuhai Retail Products[13]. Management and Governance - The company has a strong management team with members holding significant experience in the food industry and finance, including Mr. Zhang Yong, a founder of Haidilao with over 30 years of experience[180]. - The board includes independent directors with significant expertise in finance and risk management, enhancing corporate governance[181]. - The company emphasizes strong governance with a diverse board of directors and experienced management team[187]. - The management team has a strong educational background, with several members holding advanced degrees in business administration and finance from prestigious institutions[180]. Future Outlook and Strategic Focus - The Group plans to prioritize product research and development, overseas expansion, and channel building as strategic focuses for 2025[151]. - The Group will continue to explore new business formats and emerging consumer trends to achieve leapfrog development in 2025[43]. - Future plans include seeking strategic investment opportunities that can bring synergies in product R&D, product portfolio, channel expansion, and cost control[161]. - The Group intends to optimize channel operations by collaborating with emerging channels such as e-commerce platforms to increase market share[156].

Financial Performance - Shanghai Pharmaceuticals Group reported a revenue increase of 12% year-on-year for the fiscal year 2024, reaching RMB 50 billion[3]. - The company achieved a net profit of RMB 5 billion, representing a growth of 15% compared to the previous year[3]. - Revenue for 2023 reached RMB 260.30 billion, an increase of 12.2% compared to 2022[17]. - Pre-tax profit for 2023 was RMB 7.05 billion, a decrease of 20% from 2022[17]. - The company achieved a net profit of RMB 5.17 billion for 2023, down 26.2% from the previous year[17]. - In 2024, the company achieved operating revenue of RMB 275.25 billion, a year-on-year increase of 5.75%[25]. - The net profit attributable to shareholders reached RMB 4.55 billion, up 20.82% year-on-year[26]. - The pharmaceutical industrial segment reported sales revenue of RMB 23.73 billion, a decline of 9.62% year-on-year, while the pharmaceutical commercial segment saw sales revenue of RMB 251.52 billion, an increase of 7.47%[25]. - The company reported a net operating cash flow of RMB 5.83 billion, an increase of 11.39% year-on-year, indicating high-quality development[28]. - The company's operating revenue for the reporting period reached ¥275.25 billion, an increase of 5.75% compared to ¥260.30 billion in the same period last year[55]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[3]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $100 million allocated for potential deals[7]. - The company has completed its first-year sales targets in Thailand and initiated operations in the Philippines and the UAE, marking significant international expansion[43]. - The company aims to leverage Hong Kong as a strategic hub to promote traditional Chinese medicine globally, aligning with national development strategies[43]. - The company is exploring opportunities in international markets to diversify its revenue streams and reduce dependency on domestic sales[198]. Research and Development - Shanghai Pharmaceuticals is investing RMB 1 billion in new product development, focusing on innovative drug formulations[3]. - The company plans to enhance its innovative drug pipeline, with one new drug approved for market and several others advancing in clinical stages[21]. - Research and development investment totaled RMB 2.82 billion, with R&D expenses of RMB 2.39 billion, reflecting an 8.64% year-on-year growth[27]. - The company has established partnerships with top universities to promote innovation in drug development[20]. - The company aims to enhance existing products and potential products through marketing reforms, technology upgrades, and supply chain optimization[33]. - The company is focusing on both new product launches and existing product approvals to drive growth[71]. - The company is committed to continuous innovation and development in its pharmaceutical offerings[71]. Digital Transformation and Technology - Shanghai Pharmaceuticals aims to enhance its digital health services, with a projected investment of RMB 500 million over the next two years[3]. - The digital transformation initiatives have led to the recognition of the company’s smart factory as a national excellence-level facility[21]. - The company is leveraging digital technologies to improve customer engagement and streamline operations[200]. - A new marketing strategy has been implemented, focusing on digital channels, which is expected to increase customer engagement by 30%[8]. Sustainability and Corporate Responsibility - The company is committed to sustainability initiatives, with plans to reduce carbon emissions by 20% by 2025[3]. - The company’s environmental policies and performance are detailed in its 2024 Corporate Social Responsibility Report[158]. - The company disclosed its charitable contributions in the 2024 Sustainable Development Report and ESG Report[97]. Human Resources and Management - The company employed a total of 49,402 staff, with 19,370 in sales and 15,152 in production roles[170]. - The company has a total of 180 employees with doctoral degrees and 2,336 with master's degrees[170]. - The company has implemented a comprehensive training program for new employees, achieving full coverage with over 2,700 participants in 2024[175]. - The company has established a differentiated compensation system for various roles, including management, marketing, R&D, and production personnel, to align with performance and market conditions[171]. Financial Guidance and Future Outlook - The company has set a performance guidance of 10-15% revenue growth for the next fiscal year[3]. - The company provided guidance for the next quarter, expecting revenue to be between $1.3 billion and $1.4 billion, indicating a growth rate of 10% to 15%[3]. - Future outlook includes a commitment to research and development of new drugs and technologies to meet evolving healthcare needs[200]. - Overall, the management remains optimistic about achieving long-term growth targets despite market challenges[199].

Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 13,254 million, a decrease of 1.5% compared to RMB 13,458 million in 2023[10]. - The company experienced a significant loss of RMB 1,469 million for the year, compared to a profit of RMB 185 million in 2023[10]. - The total cost of sales for the group was RMB 9,802.9 million, representing a year-on-year decrease of 5.1%[144]. - The gross profit for the raw milk business was RMB 3,257.2 million, an increase of 11.8% year-on-year, with a gross profit margin of 31.2%[154]. - The gross profit for integrated dairy farming solutions was RMB 194.3 million, a decrease of 9.6% year-on-year, with a gross profit margin of 6.9%[154]. - The Group's cash EBITDA increased by 19.6% year-on-year to RMB 2,985.8 million in 2024, with a cash EBITDA margin of 22.5%[177]. - The net cash inflow from operating activities decreased significantly to RMB 2,403.6 million, down RMB 3,045.4 million year-on-year from RMB 5,449.0 million in 2023[184]. Production and Sales - The total raw milk sold reached 289.3 thousand tons, representing a 13.6% increase from 254.7 thousand tons in 2023[10]. - Average annualized milk yield per milkable cow reached 12.8 tons, a year-on-year increase of 1.6%, with total raw milk production at 3.005 million tons, demonstrating a year-on-year increase of 16.1%[19]. - Total sales volume of raw milk increased by 13.6% year-over-year to approximately 2.893 million tons, compared to 2.547 million tons in 2023[140]. - Sales revenue from the raw milk business increased by 1.9% year-over-year to RMB 10,454.4 million, up from RMB 10,263.7 million in 2023[136]. - The average selling price (ASP) of raw milk decreased by 10.4% year-over-year to RMB 3.61/kg, down from RMB 4.03/kg in 2023[139]. Debt and Financing - The Group's debt-to-asset ratio increased to 67.2%, up 4.9 percentage points from the end of 2023, while the financing cost rate decreased to 3.40%[19]. - The total interest-bearing borrowings increased by 25.8% year-on-year to RMB 14,463.1 million, up from RMB 11,496.7 million in 2023[191]. - The net gearing ratio increased to 97.1% as of December 31, 2024, up from 74.4% in 2023, reflecting an increase in interest-bearing borrowings[179]. - The annual interest rate for bank borrowings ranged from 2.20% to 4.85% in 2024, compared to 1.50% to 8.16% in 2023[194]. Operational Efficiency and Cost Management - The company implemented cost-reduction and efficiency-enhancing measures, strengthening its core competitiveness amid a challenging market environment[17]. - The average unit cost of raw milk before inter-segment offset was RMB 2.53/kg, down RMB 0.39/kg from RMB 2.92/kg in the previous year[147]. - Selling and distribution costs increased by 17.8% year-on-year to RMB 445.1 million in 2024, up from RMB 377.8 million in 2023, mainly due to higher raw milk sales volume[166]. - Administrative expenses decreased by 10.1% year-on-year to RMB 766.2 million in 2024 from RMB 852.4 million in 2023, reflecting cost reduction efforts[169]. Strategic Initiatives and Innovations - The company aims to be a global dairy farming leader by deploying the entire industry chain and focusing on digital intelligence and ecological practices[17]. - Modern Dairy's strategic direction includes leveraging digital intelligence to innovate across the entire industry chain[43]. - The Group has developed the "Modern No. 1" Genomic Germplasm "Chip," filling a gap in the domestic commercial dairy cows genomic germplasms market[20]. - The company launched its "Green Leadership 2030" vision and initiated the "65 555 11" plan, focusing on six key areas and five core business areas[64]. - The Group's intelligent digital platform, Yunyangniu, focuses on data integration for dairy cow management, improving breeding capabilities and supply chain accuracy[121]. Sustainability and Environmental Initiatives - The Group has established a green recycling industrial chain for sustainable development, including biogas power generation and fertilizer treatment[126]. - The Group aims to reduce unit carbon emissions by 7%, 15%, and 20% by the end of 2025, 2030, and 2035, respectively, using 2021 as the base year[133]. - The Group has been recognized for its green low-carbon initiatives, leading to the establishment of the "FRESH" strategy for sustainable development in the livestock industry[81]. - The company is dedicated to building a green and sustainable development ecosystem across the entire industry chain[41]. Market Conditions and Challenges - Domestic demand for dairy products decreased, leading to a 1.9% year-over-year decline in dairy product output, totaling 29.62 million tons[89]. - China's total raw milk output in 2024 was 40.79 million tons, a 2.8% year-over-year decrease, marking the first decline since 2018[89]. - The average annual prices of feed ingredients like corn and soybean meal decreased by 14.8% and 21.3% respectively, providing some relief to dairy farming costs[90].

Economic Environment - The global economy continues to be stagnant, with inflation rates proving difficult to stabilize and interest rates remaining high [13]. - The real estate market in Mainland China has remained weak, leading to sluggish demand and excess capacity in numerous industries [14]. - The business environment remains challenging, with uncertainties stemming from international relations and U.S. tariff policies [25]. - The outlook for the manufacturing market in Mainland China remains uncertain due to ongoing Sino-US tensions and a global tariff trade war, leading to unstable industrial demand [87]. - Major economies are facing insufficient growth momentum, influenced by inflation and geopolitical risks, which may affect the Group's operations [168]. Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$1,865,354,000, representing an increase of 8.2% compared to HK$1,723,747,000 in 2023 [33]. - Gross profit for the same period was approximately HK$344,921,000, with a gross profit margin of 18.5%, down from 19.3% in 2023 due to intensified industry competition [34]. - Operating profit decreased by 22.6% to HK$27,914,000, while profit for the year fell by 49.0% to HK$11,063,000 [32]. - Other income, gain, and loss increased by 117.0% to approximately HK$35,180,000, primarily due to higher government grants and favorable currency fluctuations [38]. - Selling and distribution costs rose to approximately HK$179,088,000, accounting for 9.6% of revenue, up from 9.0% in 2023, driven by increased expenses in overseas market expansion [39]. - Administrative expenses increased by 11.4% to approximately HK$173,099,000, attributed to rising staff costs [40]. - Finance costs decreased by 7.3% to approximately HK$13,838,000 due to the repayment of part of the bank borrowings during the year [41]. - The Group recorded a net profit of approximately HK$18,753,000 for the year ended December 31, 2024, compared to a net loss of approximately HK$59,515,000 in 2023 [157]. - The Group's total outstanding bank borrowings as of December 31, 2024, amounted to approximately HK$115,259,000, a decrease from approximately HK$234,598,000 as of December 31, 2023 [92]. - The Group's net cash position as of December 31, 2024, was approximately HK$392,068,000, down from approximately HK$416,947,000 as of December 31, 2023 [93]. Operational Strategies - The Group has adopted a proactive attitude by focusing on specific niche markets and customer needs driven by research and development and innovation [15]. - The Group has activated a fully automated smart warehouse system to improve overall management efficiency [17]. - The Group remains committed to recruiting dynamic and creative young technical talents to strengthen its competitive edge in the market [17]. - The Group is committed to enhancing operational management and quality in lean manufacturing to improve competitiveness and respond to market challenges [26]. - The Group has implemented a talent development plan focusing on diversity in talent acquisition, progression, and retention [104]. - The Group will maintain adequate investments in research and development and talent development to sustain competitive advantages in products and services [125]. Market Competition - The Group has faced intense market competition, with industry peers adopting price reduction strategies to secure orders [14]. - The injection molding machine (IMM) manufacturing business experienced growth in sales and orders, particularly in the first quarter, but faced challenges in the domestic market from declining demand and intensified competition [46]. - The machinery manufacturing business achieved considerable sales growth, particularly in extrusion lines, despite facing weak demand and intense price competition in the overall machinery market in Mainland China [56]. - Competitive pressure from multinational and regional competitors may impede the Group's profitability, necessitating cost-effective solutions and increased R&D investment [169]. Supply Chain and Risk Management - Supply chain disruptions due to rising trade protectionism and geopolitical risks may lead to material shortages and delivery delays, impacting sales opportunities [173]. - The Group implements flexible supply chain management to mitigate risks, including strict supplier selection and enhanced inventory control [173]. - Financial risks include foreign currency, interest rate, price, credit, and liquidity risks, which are managed through internal control procedures [181]. Employee and Management - Employees are considered the most important assets of the Group, with most management serving for a long time [195]. - The Group offers competitive salaries and benefits, along with training programs to enhance employees' skills and knowledge [200]. - The Group organizes various activities, such as annual dinners and sports events, to strengthen communication and partnership among employees [200]. - The Group celebrates festive seasons with employees and distributes gifts as a token of appreciation for their hard work [200]. Future Outlook - The group anticipates a more encouraging macro-economic outlook in Mainland China for 2025, driven by government policies aimed at stimulating the economy [111]. - The government is expected to maintain ample liquidity in capital markets and relatively low interest rates for 2025, which could positively impact economic activities [112]. - Investment sentiment in the manufacturing industry is expected to experience a slight rebound after a period of weakness, with a focus on integrating artificial intelligence (AI) into products and internal systems [120]. - Industries such as consumer electronics, electric vehicles, and renewable energy are expected to remain strong, capturing market shares from foreign competitors [116].

Sales Performance - The company's sales of paint and coating products in mainland China decreased significantly by 38.1% to HKD 154,010,000 for the year ended December 31, 2024, compared to HKD 282,690,000 for the previous year[7]. - The company’s sales revenue from southern, central, and eastern China represented 76.1% of total revenue in 2024, compared to 81.4% in 2023[26]. - Sales to real estate developers and contractors in mainland China fell by 78.3% to HKD 17,960,000 in 2024 from HKD 82,690,000 in 2023[21]. - Sales to wholesale and retail distributors in mainland China decreased by 29.4% to approximately HKD 109,280,000 in 2024 from HKD 154,740,000 in 2023[23]. - Revenue from mainland China accounted for 80.8% of total sales in 2024, down from 86.8% in 2023[20]. - Sales revenue from private residential property projects in South China, Central China, and East China decreased significantly, with declines of 58.2% to HKD 29,170,000, 63.5% to HKD 9,230,000, and 83.5% to HKD 3,730,000 respectively, compared to the previous year's revenues of HKD 69,880,000, HKD 25,270,000, and HKD 22,570,000[27]. - Sales of paint and coating products to distributors in South China dropped by 40.3% or HKD 44,800,000, following a previous decline of 16.6% or HKD 22,130,000 in the prior year, indicating a continuing negative trend[28]. Financial Performance - The company recorded a significant revenue decrease of 31.5% for the year ending December 31, 2024, but the loss was reduced by 28.4% to HKD 47,980,000 compared to HKD 66,980,000 in 2023[11]. - Total revenue for the year 2024 was approximately HKD 321,350,000, a decrease of 31.5% from HKD 469,090,000 in 2023[18]. - The company reported a loss attributable to equity holders of approximately HKD 47,920,000 for the year ended December 31, 2024, a decrease of 28.6% compared to a loss of HKD 67,120,000 for the year ended December 31, 2023[63]. - The gross profit margin improved by 6.6 percentage points, rising from 33.6% in 2023 to 40.2% in 2024, attributed to successful strategic business revitalization measures[11]. - The gross profit margin significantly improved from 33.6% in 2023 to 40.2% in 2024, despite a 33.5% decrease in sales of paint and coating products[63]. - The company anticipates significant opportunities for growth in the paint and coatings industry due to government measures aimed at stimulating domestic demand and stabilizing the real estate market[14]. 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 and diversify procurement options[33]. - Overall raw material costs in sales decreased significantly by 41.1%, exceeding the sales decline of 33.5%, indicating substantial progress in cost management[33]. - The company successfully reduced direct and indirect labor costs by 18.6% for the year ending December 31, 2024, despite a 33.5% decline in sales of paint and coating products, demonstrating effective cost management strategies[34]. - Depreciation and manufacturing costs decreased by 24.5%, with depreciation reduced by 35.8% due to converting underutilized production facilities into investment properties, and manufacturing costs reduced by 7.9% through streamlined processes[35]. Economic Environment - The overall economic environment for the manufacturing sector in mainland China remains challenging, with ongoing fluctuations in order volumes and cautious market sentiment[8]. - The Purchasing Managers' Index (PMI) for the construction sector in mainland China showed a declining trend, indicating economic contraction, with over 2,400 construction companies undergoing bankruptcy restructuring in 2024[7]. - The cumulative construction area of ongoing projects in the real estate sector in mainland China decreased by 12.5% in 2024, compared to a 7.4% decrease in 2023[7]. - The overall GDP growth for mainland China in 2024 is projected at 5.0%, surpassing the global average GDP growth of approximately 3.2%[5]. Investment and Assets - The value of investment properties decreased by 4.5% from HKD 309,090,000 in 2023 to HKD 295,280,000 in 2024, primarily due to a significant depreciation of the Renminbi[10]. - Cash and cash equivalents increased by HKD 24,310,000 to HKD 169,250,000 as of December 31, 2024, from HKD 144,940,000 in 2023[12]. - The company's net asset value decreased by 15.1% as of December 31, 2024, compared to a 13.9% decrease in 2023[12]. - The company aims to balance short-term funding needs with long-term financial strength by repositioning production facilities as investment properties[47]. Corporate Governance - The company has implemented corporate governance principles and complied with the guidelines, with the exception of the separation of the roles of Chairman and CEO, which are currently held by the same individual since April 1, 2023[89]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced representation of shareholder interests[92]. - The company has established a sustainable development framework focusing on environmental protection, resource management, and employee welfare, aligning corporate culture with strategic goals[91]. - The board will regularly review the effectiveness of the current arrangement regarding the dual role of Chairman and CEO, considering the appointment of a suitable candidate to separate these roles in the future[90]. Environmental, Social, and Governance (ESG) - The company has established a set of environmental and social key performance indicators (KPIs) to guide its sustainable development strategy[136]. - The board of directors emphasizes the importance of a robust ESG strategy to enhance the company's investment value and provide long-term returns to stakeholders[137]. - The company is committed to corporate social responsibility, balancing environmental, social, and economic benefits while ensuring sustainable business operations[134]. - The company has implemented measures to optimize emissions handling facilities and adjust product structures to produce more environmentally friendly products[135]. - The company has launched green products such as low VOC latex paint and water-based wood paint, which have received multiple environmental certifications in mainland China and Hong Kong[149]. Employee Management - The total number of full-time employees decreased from 496 in 2023 to 441 in 2024, while part-time employees remained stable at 2[187]. - The company provides competitive compensation packages, including salaries, overtime pay, and bonuses, while also offering additional benefits such as employee dormitories and free annual health check-ups[189]. - The company has implemented a safety management system and emergency response plans to enhance occupational health and safety for employees[191]. - The company emphasizes continuous training and development, with a focus on enhancing employees' skills and knowledge[197]. - The company conducts regular employee satisfaction surveys and encourages continuous education and professional training for staff[140].

Financial Performance - For the year ended December 31, 2024, the Group reported revenue of HK$664,488,000, an increase of 34.7% compared to HK$493,060,000 in 2023[18] - The Group experienced a loss for the year of HK$33,793,000, which is a significant increase from the loss of HK$8,917,000 in 2023[18] - Gross profits for the Current Year totaled HK$66.1 million, up from HK$63.0 million in 2023, indicating a growth of about 4.9%[38] - The loss for the year was HK$33.8 million, compared to a loss of HK$8.9 million in 2023, reflecting an increase in losses of approximately 279.8%[38] - Revenue increased by 34.8% to HK$664.7 million (2023: HK$493.1 million), driven by higher customer orders and sales volume[49] - Gross profit rose by 4.9% to HK$66.1 million (2023: HK$63.0 million), but gross profit margin decreased to 10.0% (2023: 12.8%) due to higher subcontracting fees[50] - Administrative and other operating expenses surged by 45.6% to HK$78.6 million (2023: HK$54.0 million), primarily due to one-off redundancy costs and increased handling fees[51] Assets and Liabilities - Total assets decreased to HK$239,559,000 in 2024 from HK$279,297,000 in 2023, representing a decline of 14.2%[20] - Total liabilities decreased to HK$91,636,000 in 2024 from HK$101,453,000 in 2023, a reduction of 9.0%[20] - Total equity decreased to HK$147,923,000 in 2024 from HK$177,844,000 in 2023, reflecting a decline of 16.8%[20] - As of December 31, 2024, the Group's cash and bank balances were HK$111.0 million, down from HK$120.2 million in 2023, a decrease of approximately 9.3%[25] - Working capital, represented by net current assets, was HK$106.2 million as of December 31, 2024, down from HK$132.6 million in 2023, a decline of about 20%[25] Strategic Focus and Market Conditions - The economic landscape in 2024 was marked by high inflation rates and complex geopolitical tensions, impacting financial markets[23] - The Group is committed to maximizing shareholder returns despite ongoing economic challenges[7] - The management is focused on exploring new market opportunities and enhancing product offerings to drive future growth[22] - The Group's strategic shift includes fulfilling orders through overseas subcontractors, primarily in Cambodia and Indonesia, due to changes in customer sourcing strategies[30] - Geopolitical risks and ongoing global tensions have disrupted the supply chain, leading to increased costs and longer lead times for the garment manufacturing and trading business[27] - The garment manufacturing industry is expected to evolve in 2025, driven by sustainability and technological advancements, presenting significant growth opportunities despite challenges[89] Corporate Governance - The Group has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 2000, indicating a long-standing presence in the market[6] - The Board is dedicated to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[95] - The Company complied with the corporate governance code, except for certain deviations noted in the annual report[98] - The roles of Chairman and Chief Executive Officer are separated, with the CEO position remaining vacant as of the report date[103] - The Company has a strong corporate governance structure to ensure effective oversight of management[105] - The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing the Group's financial reporting and making recommendations to the Board[123][124] Workforce and Employment - The Group's workforce decreased to 213 full-time employees in 2024 from 400 in 2023 due to a strategic plan to streamline operations at the Heshan Facility[81] - The Group had a total workforce of 213 employees as of December 31, 2024, with approximately 56.8% being female[182][186] - The Company intends to maintain a balanced level of workforce diversity and will continue to promote diversity through various initiatives[182][186] Risk Management and Internal Controls - The Group's risk management and internal control systems are based on the 2013 COSO Framework, focusing on managing risks rather than eliminating them[162] - The Audit Committee assessed the effectiveness of risk management and internal control systems[129] - Management developed an annual internal audit plan to evaluate the effectiveness of the Group's risk management and internal control systems, with external consultants involved in the process[170] - Regular training is provided to employees to enhance their risk awareness and management capabilities[163] Shareholder Communication and Policies - The Company maintains a corporate website to ensure timely dissemination of information to shareholders, with published information retained for at least five years[184][187] - The Board reviewed the effectiveness of the shareholders' communication policy for the year ended December 31, 2024, and deemed it effective[185] - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting within two months of deposit[189][192] - The Company ensures that all resolutions at general meetings are decided by poll, enhancing minority shareholders' rights[190] Investment and Capital Expenditure - Capital expenditure totaled HK$5.7 million (2023: HK$2.6 million), mainly for manufacturing equipment in Cambodia and Indonesia[68] - The Group's securities investment segment recorded a fair value gain of nil for the Current Year, compared to a fair value loss of HK$0.1 million in 2023, indicating a conservative investment strategy[46] - The management is adopting a prudent strategy for securities investment due to recent performance stagnation and market volatility[90] Board Composition and Meetings - The Board consists of a balanced composition of executive and non-executive directors, ensuring effective independent judgment[100] - The Company held seven Board meetings and two general meetings during the year ended 31 December 2024[101] - The Company has appointed independent non-executive directors in compliance with the minimum requirements of the Listing Rules[104]

Financial Performance - Revenue for 2024 decreased by 22.7% to RMB 1,095,301,000 from RMB 1,416,573,000 in 2023[16] - Profit attributable to owners of the Company fell by 61.5% to RMB 50,889,000 compared to RMB 132,051,000 in the previous year[16] - Net profit margin decreased to 4.5% from 10.7%, a decline of 6.2 percentage points[16] - Gross profit was approximately RMB0.259 billion, a year-on-year decrease of approximately 38.4%, with a gross profit margin of approximately 23.6%, down 6.1 percentage points compared to the same period in 2023[55] - The Group expects a revenue decrease of approximately 15% to 25% for the three months ending March 31, 2025, compared to approximately RMB286.95 million for the same period in 2024[62] - Profit attributable to owners of the Company is expected to decrease by approximately 25% to 35% for the three months ending March 31, 2025, compared to approximately RMB17.30 million for the same period in 2024[62] Business Segments - Revenue from embedded software and secure payment products dropped by 34.5% to RMB 622,362,000, while platform and service revenue increased by 1.3% to RMB 472,939,000[17] - The embedded software and secure payment products business segment recorded revenue of approximately RMB0.622 billion, a year-on-year decrease of approximately 34.5%[60] - The platform and service business segment recorded revenue of approximately RMB0.473 billion, representing a year-on-year increase of approximately 1.3%[61] Assets and Liabilities - Total assets decreased by 8.6% to RMB 2,463,484,000 from RMB 2,693,907,000 in 2023[18] - Total liabilities reduced by 24.6% to RMB 451,493,000 compared to RMB 598,836,000 in the previous year[18] - The Group's total current assets amounted to approximately RMB1,657.0 million, representing a year-on-year decrease of approximately 15.2%[56] - The company had no bank borrowings as of December 31, 2024, maintaining a conservative financial management approach[99] - The aggregate amount of bank balances and cash reached approximately RMB1,332.8 million as of December 31, 2024, with RMB1,178.9 million (approximately 88.5%) denominated in RMB[98] - The company's current ratio improved to approximately 4.1 as of December 31, 2024, compared to approximately 3.5 in 2023, indicating strong liquidity[102][107] - The company's gearing ratio decreased to approximately 18.3% as of December 31, 2024, from approximately 22.2% in 2023, reflecting a lower level of financial leverage[102][107] Strategic Initiatives - The Group is focusing on new business models, technologies, and human resources to prepare for transformation and enhance operational efficiency[50] - The Group's digital and platform-based strategy has led to the transformation of payment card service operations from a decentralized process to an intelligent and visualized one[51] - The Group is investing in new technologies such as AIGC, eSIM, and multi-scenario security authentication to support digital development[41] - The Group is building a comprehensive credit card benefits platform to improve user experience and support financial institutions in digital marketing[38] - The Group has successfully expanded its UMV platform, increasing the number of financial institutions from over 30 to more than 200 banks and 1,600 branches[53] - The UMV platform addresses core banking issues such as cost, efficiency, and user experience by enabling real-time online interactions for payment card operations[67] - The UMV platform enhances banks' risk management capabilities by reducing manual operations and improving compliance with regulatory requirements[68] Awards and Recognition - Goldpac was recognized with four ICMA Élan Awards in 2024, marking 20 consecutive years of awards[21] - The UMV platform was awarded the Development Potential Service Demonstration Case at the 2024 China International Fair for Trade in Services[22] - Goldpac was listed as one of the 2024 KPMG China Corporate Governance Pioneers, excelling in ESG practices[26] Workforce and Management - The Group's workforce decreased to 1,282 employees as of December 31, 2024, from 1,507 employees in the previous year, reflecting a reduction of 225 employees[132] - The Group's total employee benefits expenses for the year ended December 31, 2024, were approximately RMB 206.8 million, down from approximately RMB 224.7 million in 2023[132] - A youth-oriented talent strategy has been initiated, increasing the appointment of younger professionals across the organization[79] - The management team has extensive experience in the financial card industry, with key executives having over 30 years of relevant experience[146][152] - The Group emphasizes employee training and development, providing comprehensive internal and external training programs[137] Corporate Governance - The board consists of nine directors, including six executive directors and three independent non-executive directors[142] - The Company has appointed experienced professionals to its board, enhancing its governance and strategic oversight capabilities[180] - The independent non-executive Directors bring valuable insights from their respective fields, contributing to the Company's decision-making processes[181] - The board's composition reflects a commitment to strong corporate governance and accountability, essential for maintaining investor confidence[180] Future Outlook - The company has set a future outlook with a projected revenue growth of 20% for the upcoming fiscal year[156] - The company plans to enhance customer engagement through digital marketing strategies, aiming for a 15% increase in customer retention rates[156] - The Group is unable to provide revenue and profit forecasts for the six months ending June 30, 2025, due to current order conditions and business cycles[66]

Financial Performance - For the fiscal year ending December 31, 2024, the company faced challenges but identified clearer trends and changing consumer demands, with some brands achieving double-digit growth while others struggled [5]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth [1]. - Revenue decreased by 15.7% from approximately RMB 1,155.7 million to approximately RMB 974.5 million due to weak market sentiment and consumer spending downgrade [28]. - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to $1.32 billion [3]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year [4]. - Market expansion plans include entering three new countries, which are projected to add $300 million in revenue over the next two years [6]. - The company reported a gross margin of 45%, which is an improvement from 42% in the previous year [9]. - The gross profit margin remained stable at 29.3% compared to 29.8% in the previous period [28]. - The company recorded a loss of approximately RMB 202.4 million for the period, slightly improved from a loss of approximately RMB 210.9 million in the previous period [53]. Cost Management and Efficiency - Operating costs were reduced by 13.9% compared to the previous fiscal year, with inventory decreasing by approximately RMB 72.5 million and inventory turnover days reduced by 20 days [7]. - Operating expenses were reduced by 5%, resulting in a more efficient cost structure [10]. - The cash conversion cycle improved from 131 days to 97 days, indicating better efficiency in converting inventory investments into cash [55]. - Total sales, distribution, general and administrative expenses decreased by 13.9% from approximately RMB 539.9 million to approximately RMB 465.1 million [28]. Strategic Partnerships and Market Expansion - The partnership with Spin Master resulted in nearly doubling sales in 2024, while collaboration with Card Game achieved approximately 40% sales growth, and Jellycat saw a 55% increase, contributing to a total growth of 94% from these brands, accounting for nearly 12% of total business in mainland China [6]. - A new agreement with Spin Master will commence in 2025 for the distribution of Paw Patrol toys in Hong Kong, Macau, and Taiwan, indicating a strategic focus on expanding market presence [8]. - The overall strategy emphasizes collaboration with leading brands and the development of proprietary products to expand the older children's business segment [10]. Research and Development - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience [5]. - Plans to leverage artificial intelligence to improve operational efficiency and explore new business opportunities are in place [10]. Employee Management and Workforce - As of December 31, 2024, the group had approximately 1,100 employees in mainland China, Hong Kong, and Macau, a decrease from 1,300 employees as of December 31, 2023 [127]. - The overall employee turnover rate is 55.0%, with 598 employees leaving the company during the reporting period [192]. - The company has implemented a comprehensive employee management policy covering recruitment, performance evaluation, training, and compensation [185]. - The company provides various employee benefits, including social and medical insurance, maternity leave, and family-friendly policies [195]. Environmental, Social, and Governance (ESG) Initiatives - The company has established compliance procedures to ensure adherence to applicable environmental laws and regulations [84]. - The group is committed to integrating sustainability into its business operations and has established an environmental, social, and governance (ESG) framework [141]. - The company aims to achieve carbon neutrality and has implemented strict administrative policies to manage emissions from its office operations [165]. - The company has identified 21 key ESG topics that impact its operations, including emissions management, waste management, and employee welfare [157]. - The company encourages resource efficiency and waste reduction through various green office initiatives, aiming for a sustainable operational model [174]. Shareholder and Capital Management - The company has issued 800,000,000 ordinary shares with a par value of HKD 0.01, with no changes in share capital during the reporting period [64]. - The board has resolved not to recommend any dividend for the year, consistent with the previous year [77]. - The company has adopted a dividend policy aimed at providing sustainable returns to shareholders while retaining earnings for future growth opportunities [80]. - The company’s largest shareholder, Asian Glory, holds approximately 53.15% of the shares, which is controlled by Mr. Li Chengyao [98]. Compliance and Governance - The company confirms compliance with the listing rules regarding all ongoing related party transactions [120]. - The non-competition agreement established on October 25, 2017, has been adhered to by the controlling shareholders [123]. - The company has maintained a minimum public float of 25% throughout the year and as of the report date [134].

Financial Performance - The group's consolidated revenue from continuing operations for the fiscal year ending December 31, 2024, was HKD 36.8 million, a decrease from HKD 42.8 million in 2023, primarily due to a decline in the asset and wealth management segment from HKD 11 million to HKD 2.8 million[9]. - Total expenses from continuing operations amounted to HKD 72.5 million, down from HKD 88.4 million in 2023, while the group reported a consolidated loss from continuing operations of HKD 292.7 million, compared to a loss of HKD 78.7 million in 2023[9]. - The group decided to terminate its media publishing and financial public relations services, resulting in a loss of HKD 2.3 million from discontinued operations for the fiscal year, compared to HKD 61.3 million in 2023[10]. - The brokerage commission and related fee income decreased by approximately 4.9% to HKD 10.8 million in 2024, while the operating loss reduced by 11.5% to HKD 18.4 million[13]. - Margin financing and credit borrowing income increased by approximately 12.6% to HKD 14.6 million, despite a slight operating loss of HKD 300,000[14]. - The asset and wealth management segment recorded a revenue of HKD 2.8 million, a decrease of 74.7%, with operating losses increasing by approximately 120.3% to HKD 6.6 million[15]. - Financial consulting and pre-IPO sponsorship services generated stable revenue growth to HKD 1.7 million, up from HKD 1.4 million in 2023[16]. - The group's investment portfolio as of December 31, 2024, is HKD 39,700,000, down from HKD 47,000,000 in 2023, with a total fair value loss of HKD 3,600,000 for the year[17]. - Total rental income for the year increased to HKD 6,800,000 from HKD 5,600,000 in 2023, despite a fair value loss of HKD 223,400,000 on investment properties[19]. Market Conditions - The average daily trading volume in the Hong Kong stock market increased by 25.5% year-on-year in 2024, with total capital raised through IPOs increasing by 22% compared to the previous year[13]. - The overall macroeconomic environment was impacted by tightening monetary policy, inflation pressures, and geopolitical tensions, affecting the group's performance in 2024[12]. Strategic Initiatives - The group aims to enhance its asset and wealth management services by upgrading its trading systems and developing a multi-tiered "one-stop" wealth management service platform[15]. - The company plans to focus on enhancing financial services performance and diversifying revenue sources, particularly in asset and wealth management[27]. - The group aims to leverage artificial intelligence to improve operational efficiency and customer experience while expanding its business portfolio[29]. Human Resources and Employee Management - The total number of employees decreased to 62 from 146 in 2023, with employee costs amounting to HKD 34,700,000[26]. - The company considers human resources as one of its greatest assets and continues to implement measures to recognize and reward employee contributions[32]. - The company emphasizes a supportive and healthy work environment, investing resources to ensure employee well-being and community building[197]. - The company has implemented various policies to ensure fair recruitment, enhance applicant diversity, and attract top talent, including equal opportunity and anti-discrimination policies[197]. Corporate Governance - The board of directors includes both executive and independent non-executive members, with recent changes in appointments[66]. - The company is committed to maintaining high standards of business ethics and corporate governance[112]. - The audit committee is responsible for overseeing corporate governance functions, including policy formulation and compliance monitoring[117]. - The board is collectively responsible for the overall leadership and supervision of the company, ensuring decisions align with the best interests of the group[118]. - The company has adopted a diversity policy for the board, considering factors such as professional experience, gender, age, and educational background[165]. Environmental Sustainability - The company is committed to environmental sustainability by promoting energy-saving practices and reducing paper usage through electronic statements[30]. - Total greenhouse gas emissions decreased by approximately 9% to 119.05 tons in 2024 from 132.09 tons in 2023, primarily due to reduced electricity consumption[186]. - The company has adopted energy-efficient LED lighting in its offices to further reduce energy consumption[190]. - The company continues to promote environmental awareness among employees through initiatives aimed at conserving water, energy, and paper[190]. Risk Management - The company has identified potential risks including fluctuations in financial assets, interest rate changes, credit risk during economic downturns, and uncertainties in fiscal and monetary policies[36]. - The company has established multiple committees to develop and review risk control strategies and policies[36]. - The company has established effective risk management and internal control systems, with management reporting on significant risks at least annually[138]. Shareholder Relations - The company has adopted a dividend policy to distribute net profits to shareholders while retaining sufficient reserves for future growth[52]. - The company provides regular updates on its performance and financial status to all directors, ensuring they fulfill their responsibilities effectively[164]. - Shareholders holding at least 5% of total voting rights can request a special general meeting, with specific procedures outlined for submission[173].

Company Overview - The company reported a total issued share capital of RMB 2,657,788,894 as of December 31, 2024, with 26,577,888,940 shares issued, including 20,589,048,940 A-shares (approximately 77.47%) and 5,988,840,000 H-shares (approximately 22.53%) [9] - The company is a large multinational mining group engaged in the exploration, development, and engineering research of metal resources such as copper, gold, zinc, lithium, silver, and molybdenum [9] - The company was established on September 6, 2000, and was the first domestic gold production enterprise to be listed overseas, with its H-shares listed on the Hong Kong Stock Exchange in December 2003 [9] Strategic Goals and Innovation - The company aims to provide low-carbon mineral raw materials for a better human life, aligning with its strategic goal of becoming a leading international mining group with green high technology [9] - The company emphasizes innovation and hard work as part of its corporate spirit, aiming to benefit society through its mining operations [2] - The company is committed to integrating AI technology into its operations to enhance production efficiency and management systems [27] - The company has a strong focus on innovation as its core competitive advantage, continuously improving its technology and management capabilities [168] Financial Performance - In 2024, the company achieved a total revenue of RMB 303.64 billion, representing a year-on-year increase of approximately 3.8% compared to RMB 293.40 billion in 2023 [16] - The net profit attributable to shareholders reached RMB 32.05 billion in 2024, a significant increase of about 51.7% from RMB 21.12 billion in 2023 [16] - The total assets of the company increased to RMB 396.61 billion in 2024, up from RMB 343.01 billion in 2023, marking a growth of approximately 15.7% [18] - The company reported a total liability of RMB 218.88 billion in 2024, compared to RMB 204.64 billion in 2023, reflecting an increase of about 6.9% [18] - Cash and cash equivalents rose to RMB 29.65 billion in 2024, up from RMB 17.69 billion in 2023, indicating a growth of approximately 67.5% [19] Operational Efficiency and Sustainability - The company has a strategic focus on sustainable development and has established various committees to oversee its governance and operational strategies [6] - The company’s ESG rating is now among the top tier in the mining industry, reflecting its commitment to sustainable development [23] - The liquidity ratio improved to 99.2% in 2024, compared to 92.2% in 2023, indicating better short-term financial health [19] - The company is committed to cleaner and more sustainable copper production practices [101] Resource Management and Production - The total resource volume includes over 1.1 million tons of copper and 4,000 tons of gold, positioning the company strategically in the energy transition market [25] - The company holds significant resources, with copper reserves at 5,043,000 tons and gold reserves at 1,487 tons [61] - The company aims to enhance its lithium production capacity significantly, positioning itself as one of the world's leading lithium producers after the completion of the "Two Lakes Two Mines" project [28] - The company plans to achieve a top-three position globally in metal production by 2028, two years ahead of its original schedule [26] Global Operations and Market Presence - The company operates over 30 large-scale mining resource development bases across 16 countries and 17 provinces in China [64] - The company operates in 17 countries, including China, with a total workforce of 55,690 and 37,450 collaborators [66] - The company ranks 1st among global gold enterprises and 5th among global metal mining companies [67] - The company has a strong presence in the Chinese market, being part of the Shanghai Stock Exchange 50 Index and FTSE China A50 Index [67] ESG and Social Responsibility - The company has a strong commitment to ESG, with a 21% increase in social contribution value projected to reach RMB 750 million by 2024 [63] - The company’s global social contribution value reached RMB 75 billion, a year-on-year increase of 33.42% [148] - The company’s ESG performance remains strong, with a carbon intensity reduction of 34.9% compared to the 2020 baseline, ahead of the 2025 target [147] Future Outlook and Growth Strategy - The company plans to leverage its strong financial management capabilities to optimize capital operations and drive growth [75] - The company is preparing for potential acquisitions to expand its market presence and diversify its portfolio [75] - Future outlook includes a commitment to sustainable development and ESG initiatives, aligning with global trends and investor expectations [77] Research and Development - Total R&D expenditure amounted to RMB 1,582,329,420, representing 0.52% of operating revenue [198] - The company employed 5,387 R&D personnel, accounting for 9.67% of total employees [199] - The company initiated 168 new research projects during the reporting period, including 3 national key R&D projects [200] Market Trends and Metal Prices - Gold prices reached $2,611 per ounce at year-end, a significant increase of 26.3% compared to the beginning of the year, marking the largest annual increase since 2010 [151] - Copper prices peaked at $10,857 per ton in May 2024, driven by supply shortages and monetary easing expectations, before falling to around $8,700 per ton by December [153] - The geopolitical tensions and the Federal Reserve's monetary policy significantly influenced the fluctuations in metal prices throughout 2024 [150]