Mining Resources - The Maoling-Yanglongshan Mine has a resource estimate of 90.30 million tons with an average grade of 24.32% TFe[4]. - The Shigou Gypsum Mine has a resource estimate of 10.37 million tons with an average grade of 90.64% Gypsum + Anhydrite[4]. - The Maoling-Yanglongshan Mine is producing high-grade iron concentrates with TFe content ranging from 65% to 72% as of December 31, 2024[64]. - The mineral resources at the Shigou Gypsum Mine remain unchanged since the 2014 annual report, with a boundary grade of 82.51% and a minimum exploitable width of 1 meter[189]. - Mineral resources are estimated based on survey data available as of December 31, 2024, and are constrained by mining and exploration licenses[191]. Financial Performance - For the year ended December 31, 2024, the company reported a revenue of RMB 542.49 million, a decrease from RMB 784.95 million in 2023, representing a decline of approximately 30.8%[20]. - The gross profit for 2024 was RMB 14.20 million, down from RMB 36.53 million in 2023, indicating a decrease of about 61.1%[21]. - The company recorded a net loss attributable to owners of RMB 20.66 million in 2024, compared to a profit of RMB 9.70 million in 2023, marking a significant turnaround in performance[22]. - As of December 31, 2024, the equity attributable to owners of the company was RMB 625.62 million, slightly down from RMB 646.29 million in 2023[23]. - The Group's overall profitability declined, reporting a net loss of approximately RMB 20.7 million for FY2024, compared to a net profit of approximately RMB 9.7 million for FY2023[57]. Operational Challenges - The company faced a temporary suspension of operations at the Maoling-Yanglongshan Mine due to a safety incident, which significantly impacted productivity and revenue in the second half of the year[31]. - Non-cash impairment losses of approximately RMB 13.8 million were recorded due to the reassessment of the mine's production capacity and operational plans[32]. - The Group recorded a loss before tax of approximately RMB 24.6 million for FY2024, compared to a profit of RMB 14.1 million in FY2023, marking a variance of 274.3%[78]. - The Group's trading business operates on an indent basis, minimizing inventory risks and aligning with industry practices to mitigate financial exposure in fluctuating demand markets[78]. Market Conditions - In 2024, China's GDP growth rate was reported at 5.0%, with Q4 2024 GDP growth exceeding expectations at 5.4%[46]. - Global crude steel production in 2024 was approximately 1,882.6 million tonnes, reflecting a 0.8% year-on-year decline, while China's crude steel production totalled 1,005.1 million tonnes, down 1.7% year-on-year[48]. - China's steel consumption was approximately 863 million tonnes in 2024, declining 4.4% year-on-year, with expectations for further decline to 850 million tonnes in 2025, a 1.5% year-on-year decrease[48]. - The Chinese Steel Price Index (CSPI) decreased from 112.67 in January 2024 to 97.57 in November 2024, marking a 13.4% decline, with an annual average CSPI of 102.47, representing an 8.39% year-on-year decline[48]. Strategic Initiatives - The company aims to explore exceptional potential in mining, focusing on integrity, opportunity, and responsibility[6]. - The company plans to adopt a more measured and less aggressive business expansion strategy in response to the slower recovery pace anticipated in the market[36]. - Facilities management is expected to play a significant role in providing new growth opportunities and diversifying income streams for the company[37]. - The company aims to enhance its capabilities in facilities management by expanding service scopes and forging strategic collaborations to mitigate impacts on financials amid declining steel demand[37]. Legal and Compliance Issues - Ongoing litigations against former subsidiaries for indebtedness may require the Company to take further legal actions, impacting financial stability[72]. - Legal actions have been initiated by CCB and ICBC against former subsidiaries regarding various indebtedness amounts, with the Company required to fulfill its corporate guarantee obligations[192]. Employee and Management - The Group's employee benefit expenses for FY2024 were approximately RMB 32.3 million, a decrease from RMB 34.5 million in FY2023, with a total of 356 dedicated full-time employees as of December 31, 2024[187]. - The Group has implemented proper training programs to promote employee career development and progression[190]. - The Group has adopted a share option scheme to incentivize and reward eligible employees based on their contributions[190]. Cash Flow and Financing - The Group recorded net cash flows from operating activities of approximately RMB 26.2 million for FY2024, a significant decrease from RMB 95.1 million in FY2023[108]. - The Group's cash and cash equivalents at the end of FY2024 were approximately RMB 11.9 million, an increase from RMB 8.0 million at the end of FY2023[107]. - The Group will continue to explore new financing arrangements to meet its working capital and financial requirements[156].

Financial Performance - The company reported a revenue increase of 12% year-over-year, reaching $1.2 billion for the fiscal year 2024[6]. - For the year ended December 31, 2024, the Group's revenue amounted to RMB 7,259,644,000, representing an increase of 7.18% from RMB 6,773,463,000 for the corresponding period of last year[27]. - The net profit for the year was RMB 886,933,000, a decrease of 10.62% from RMB 992,313,000 in the previous year[27]. - Profit attributable to owners of the Company was RMB 521,795,000, down 11.59% from RMB 590,188,000 in 2023[27]. - Earnings per share decreased to RMB 0.41 from RMB 0.46 in 2023[27]. - The gross margin improved to 55%, up from 52% in the previous year, due to cost optimization strategies[6]. - The gross margin for 2024 was 39.64%, down from 42.04% in 2023[22]. - The gross margin for the year ended December 31, 2024, was 39.64%, down from 42.04% in 2023, while the net profit margin decreased to 12.22% from 14.65%[75]. - The Group's total revenue for the year ended December 31, 2024, was RMB 7,259,644,000, an increase from RMB 6,773,463,000 in 2023, representing a growth of approximately 7.2%[107]. User Growth and Market Expansion - User data showed a growth in active users by 15%, totaling 5 million users by the end of 2024[6]. - Market expansion efforts led to a 25% increase in sales in the Southeast Asia region, now accounting for 30% of total sales[6]. - A new partnership with a leading e-commerce platform is projected to boost online sales by 30% in the upcoming year[6]. Product Development and R&D - New product launches contributed to 20% of total revenue, with three major products introduced in Q4 2024[6]. - The company invested $50 million in R&D for new technologies, focusing on enhancing product efficacy and user experience[6]. - The Group's innovative drug Qishen Granules successfully obtained the Notice of Approval for Clinical Trial, enhancing its research and development capabilities[52]. - Research and development expenses for the year ended December 31, 2024, were RMB 84,823,000, accounting for 1.17% of revenue, down from 1.74% in 2023[76]. Strategic Initiatives - The Group adjusted its marketing strategies to enhance consumer experience and broaden sales channels in response to market challenges[30]. - The Group will continue to optimize its strategic management system and marketing reforms as part of the "14th Five-Year Plan" initiatives[42]. - The Group's marketing strategies include the "Glow Campaign" and "Flag-planting Campaign" to enhance market penetration and consumer engagement[46]. - The Group aims to optimize production processes and improve supply security systems to support growth during the 15th Five-Year Plan[97][100]. Financial Position and Liquidity - The current ratio decreased to 3.81 from 4.49 in 2023, indicating a decline in liquidity[22]. - Total assets increased to RMB 14,408,591,000 from RMB 13,507,742,000 in 2023[22]. - The debt to asset ratio rose to 29.45% from 28.55% in 2023, reflecting a slight increase in leverage[22]. - The liquidity ratio as of December 31, 2024, was 3.81, down from 4.49 in 2023, indicating a decrease in financial resources[64]. - Cash and cash equivalents increased to RMB 412,948,800 as of December 31, 2024, from RMB 274,645,800 in 2023[66]. Challenges and Risks - The Group faced significant increases in raw material costs due to supply chain constraints and rising market demand, impacting production costs[45]. - The Group faces major risks including policy risks and operational risks, which may impact business operations and financial performance[146]. - Increasing regulatory standards in pharmaceuticals impose higher requirements on safety and environmental management, leading to potential cost increases[147]. - The Group's production of Chinese patent medicines involves complex processes and strict quality control, with potential risks of sporadic issues affecting reputation and finances[149]. Shareholder Information - As of December 31, 2024, substantial shareholders held a total of 617,129,000 shares, representing 93.46% of the issued shares[141]. - The largest customer, Tong Ren Tang Holdings and its subsidiaries, contributed RMB 2,257,367,000, representing 31.09% of total revenue, up from 23.61% in 2023[119]. - The Group's purchases from the five largest suppliers accounted for 31.24% of total purchases, with the largest supplier contributing 10.47%[119]. Legal and Compliance - The Group is committed to compliance with various laws and regulations, including the Company Law and Good Manufacturing Practice, to mitigate legal risks[156]. - The Group has implemented a strategic deployment for legal compliance and risk management, enhancing its governance and integrity systems[157]. - There were no significant legal risk events or non-compliance issues reported during the year[158].

Financial Performance - For the year ended December 31, 2024, the operating income decreased by 9.1% to RMB5,834,604, compared to RMB6,418,966 in 2023[15]. - Profit attributable to owners increased by 25.1% to RMB58,831, up from RMB47,024 in 2023[15]. - Total assets rose by 2.5% to RMB3,879,690, while net assets increased by 2.0% to RMB2,429,691[15]. - Basic profit per share improved by 25.1% to RMB0.06, compared to RMB0.05 in the previous year[15]. - The return on total assets increased to 2.17%, up from 1.99% in 2023, reflecting a 9.1% improvement[15]. - In 2024, the company's turnover decreased by 9.1% to RMB 5,834,604, while gross profit increased by 10.7% to RMB 733,407, resulting in a gross profit margin of 12.6%[55]. - Profit attributable to equity shareholders rose by 25.1% to RMB 58,831 compared to RMB 47,024 in 2023[55]. Business Segments - The feed business accounted for 44.1% of total turnover in 2024, while meat and processed foods contributed 26.4% and 29.5% respectively[19]. - In 2024, the operating income of the food segment grew by 11% year-on-year, accounting for 44% of the Company's total operating income and 71% of its gross profit[28][30]. - The processed foods business accounted for 44.1% of total operating income and 71.2% of total gross profit, demonstrating its role as the largest revenue and profit source for the Group[67][68]. - The operating income and gross profit of processed foods increased by 10.7% and 9.2% respectively year-on-year, with fourth-quarter growth of 8.7% and 5.5%[71]. - The feeds business experienced a significant decline, with operating income down 24.0% year-on-year and gross profit decreasing by 6.3%[79][80]. - The domestic food business saw operating income and gross profit increase by 9.4% and 10.1% respectively, despite a slow recovery in the domestic catering market[73][75]. - The export food business achieved a notable increase in operating income of 21.5% year-on-year, although gross profit only rose by 2.2%[74][76]. - In 2024, the operating income of the meat product business decreased by 15.9% year-on-year, while gross profit increased by 116.1% year-on-year[84][86]. - The gross profit margin for the meat product business improved to 4.4% in 2024 from 1.7% in 2023[84]. Strategic Initiatives - The Company has restructured its business model to focus on downstream food processing while downscaling upstream breeding operations to mitigate price fluctuation risks in the white feather broiler market[26][40]. - The Company is prioritizing investments in food supply chain, research and development, and digital operations to strengthen its position in the food processing industry[34][36]. - The Company aims to develop healthier and tastier fully-cooked products while promoting antibiotics-free and additive-free measures along the supply chain[33][35]. - The Company is focusing on building core competitiveness in two regions: the Yangtze River Delta with Bengbu as the core and northeast China with Dalian as the core[34][36]. - The Company is committed to optimizing its supply chain by aligning with customer demands and reducing risks associated with market fluctuations[38][40]. - The Company has emphasized cash management and prudent financial operations to navigate the challenging external environment[39][41]. - The Company is investing in automation and digitalization to enhance production efficiency and decision-making capabilities[44]. - Future strategies include expanding food production capacity and developing high-quality, cost-effective products to meet growing market demand for processed foods[77]. - The company plans to focus on food product development and enhance the value of meat products to mitigate the impact of market fluctuations[51]. - The company will continue to diversify its feed products and channels to counter risks associated with the hog cycle and market changes[51]. Governance and Management - The company was awarded an A grade in the Wind ESG rating in July 2024, reflecting its commitment to sustainable development and corporate governance[48]. - The company emphasizes the importance of corporate social responsibility and aims to provide safe and healthy food products to consumers[52]. - The strategic focus remains on downstream food processing rather than upstream scale expansion, ensuring synergistic development across the industrial chain[59]. - The company has a diverse board with members holding degrees from prestigious institutions, enhancing its strategic decision-making capabilities[139][141][146]. - The company emphasizes the integration of finance with the agricultural sector, which may lead to innovative investment strategies[134]. - The board's composition includes professionals with extensive experience in financial advisory and accounting, ensuring robust financial oversight[140][145]. - The company is focused on enhancing its governance structure through the appointment of experienced independent directors[140][147]. - The strategic appointments made in 2023 reflect the company's commitment to improving its operational and governance frameworks[140][145][147]. - The Company has adopted the latest corporate governance code as guidelines for its governance practices[167]. - The Board believes that good corporate governance is essential for maintaining trust with employees, partners, shareholders, and investors[166]. Financial Position - The Group's cash and bank deposit balances decreased by RMB57,193 thousand to RMB469,747 thousand as of December 31, 2024[94]. - The net cash generated from operations in 2024 was RMB306,153 thousand, a decrease of RMB101,099 thousand from 2023[94]. - Interest-bearing borrowings increased by RMB37,158 thousand to RMB567,237 thousand in 2024, with the interest-bearing borrowings to equity ratio at 23.3%[94]. - The Group's interest expense rose by 30.6% to RMB23,168 thousand in 2024, primarily due to an increase in average outstanding borrowings[98]. - The Group recorded other operating income of RMB24,930 thousand in 2024, a slight decrease from RMB25,192 thousand in 2023[90]. - Distribution costs accounted for 6.11% of total turnover in 2024, up from 5.26% in 2023[93]. - The Group's capital expenditure in 2024 amounted to RMB335,465 thousand, primarily funded by internal resources and bank borrowings[101]. - As of December 31, 2024, the Group's contracted capital expenditure not provided in the financial statements was RMB 45,114 thousand, a decrease of 36% from RMB 70,827 thousand in 2023[108]. - The capital expenditure authorized but not contracted for was RMB 93,814 thousand, down 58.7% from RMB 227,107 thousand in 2023[108]. Human Resources - The Group had a total of 8,324 employees as of December 31, 2024, representing an increase of 4.4% from 7,972 employees in 2023[109]. Leadership - Mr. Han Chia-Yau has been the chairman of GWE since 2001 and has been a non-executive director since 2007[123]. - Mr. Harn Jia-Chen has over 30 years of experience in the Asia Pacific feed and food production business[131]. - Mr. Han Jia-Hwan was elected as one of the Taiwan Ten Outstanding Young Persons in 1994 for his contributions to the agricultural industry[131]. - Mr. Harn Jia-Chen has been a member of the remuneration committee since January 2019[127]. - Mr. Han Jia-Hwan has served as the chairman of multiple subsidiaries including DaChan Wanda (Tianjin) Co., Ltd. since 1999[131]. - Mr. Harn Jia-Chen obtained his master's degree in business administration from the University of New Haven in 1986[128]. - Mr. Han Jia-Hwan received his master's degree in business administration from the University of Chicago in 1983[132]. - Mr. Harn Jia-Chen has been a member of the nomination committee since 2007[127]. - Mr. Han Jia-Hwan has been a non-executive director since January 2019 after serving as an executive director from 2007 to 2018[131]. - Mr. Wei An-Ning has extensive experience in the agricultural and food sectors, having held various leadership roles in financial and agricultural institutions[133]. - Mr. Wei Anning has extensive experience in finance and the agricultural and livestock food industry, having held various executive roles and directorships in multiple companies[134]. - Mr. Ting Yu-Shan has been appointed as the chairman of the audit committee effective from June 30, 2023, showcasing the company's commitment to strong governance[140]. - Mr. Hsia, Li-Yan has been appointed as the chairman of the remuneration committee effective from June 30, 2023, indicating a focus on executive compensation oversight[145]. - Ms. Lee Tsai, Yu-Ling has been appointed as the chairlady of the nomination committee effective from June 30, 2023, reflecting the company's emphasis on board diversity and governance[147]. - Mr. Gao Kong-Lian has been appointed as an independent non-executive director effective from June 30, 2023, bringing significant academic and industry experience to the board[150].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 2,384,149,000, a slight decrease of 0.5% compared to RMB 2,395,471,000 in 2023[15] - Pre-tax profit increased to RMB 180,178,000 in 2024, up 6.8% from RMB 170,029,000 in 2023[15] - Net profit attributable to equity shareholders rose to RMB 125,637,000, representing an increase of 7.2% from RMB 116,953,000 in 2023[15] - The net profit margin improved slightly to 6.20% in 2024, compared to 6.01% in 2023[40] - Gross profit for the period was RMB 459.68 million, remaining stable compared to the previous year[46] - The gross margin for additives and intermediates was 19.22%, showing minimal change from the previous year[47] - Other income amounted to RMB 3.82 million, a decrease of 26.90% year-on-year, as the company focused on its core business[43] Assets and Liabilities - Total assets reached RMB 2,459,259,000, an increase of 4.8% from RMB 2,345,470,000 in 2023[17] - Total liabilities decreased to RMB 1,362,871,000, down 2.5% from RMB 1,397,002,000 in 2023[17] - The company's equity attributable to shareholders increased to RMB 990,630,000, up 14.6% from RMB 864,957,000 in 2023[17] - The company's total loans and borrowings decreased to RMB 918.70 million, down RMB 28.58 million from the previous year, primarily due to loan repayments[60] Product Development and Market Expansion - The company launched new products including "HLA-FHO Hexavalent Chromium Reducing Agent" and "HLP-ME250 High Water Reduction Polycarboxylic Acid Superplasticizer," recognized as new products in Anhui Province[18] - A subsidiary completed the construction and production of 30,000 tons of cement additives and 20,000 tons of concrete additives, enhancing production capacity[20] - The company successfully exported to 27 countries and launched its first overseas project in Uzbekistan, marking a significant step in its international expansion[37] - The company aims to enhance its product offerings by developing highly customized admixtures to meet diverse market demands[38] - The company plans to continue expanding its market presence and product offerings in the upcoming fiscal year[18] Shareholder Returns and Dividends - The board proposed a final cash dividend for the year ending December 31, 2024, reflecting the company's commitment to returning value to shareholders[10] - The company plans to distribute a final cash dividend of RMB 0.17 per share for the fiscal year ending December 31, 2024, subject to shareholder approval[173] - The company maintains a dividend policy where at least 60% of distributable profits will be paid out if the asset-liability ratio is below 50%[170] Corporate Governance - The board of directors consists of 4 independent non-executive directors, exceeding the requirement of at least one-third of the board[86] - The company has fully complied with the corporate governance code since its listing date[81] - The board is responsible for strategic guidance and effective supervision of management, ensuring accountability to shareholders[88] - The company has established a clear division of responsibilities between the Chairman and the CEO to balance power and authority[100] - The company has established service contracts with all executive and non-executive directors for an initial term of three years starting from the listing date[102] Risk Management and Internal Control - The company is committed to maintaining an effective risk management and internal control system, with annual reviews to ensure its effectiveness[93] - The audit committee oversees the risk management system and ensures that management fulfills its responsibilities in establishing effective systems[137] - The company emphasizes the importance of risk management and internal control for long-term business growth and sustainability[135] - The company has implemented a tiered management framework for comprehensive risk management, involving the board, audit committee, and management levels[137] Employee and Stakeholder Relations - The company has adopted a profit-sharing mechanism to enhance employee motivation and performance[77] - The company emphasizes strong relationships with stakeholders, including employees, customers, and suppliers, to support sustainable development[165] - The total employee compensation during the reporting period was approximately RMB 203.96 million, compared to RMB 204.18 million in the previous year[77] - The number of employees at the end of the reporting period was 876, a decrease from 893 employees as of December 31, 2023[77] Future Plans and Investments - The company plans to continue optimizing product costs and expanding its overseas presence to drive future growth[38] - The company has no plans to issue any debt securities during the reporting period[188] - There are no arrangements for preemptive rights or share options during the reporting period[193] Compliance and Legal Matters - The group has complied with all relevant laws and regulations affecting its business operations during the reporting period[184] - The independent non-executive directors confirmed that the company and its closely related parties have complied with the non-competition agreement from the listing date to the report date[200] - There were no violations of the non-competition agreement by the company or its closely related parties during the specified period[200] - The independent non-executive directors concluded that no further disclosure regarding the compliance and execution of the non-competition agreement is necessary[200]

Financial Performance - For the year ended December 31, 2024, the Group reported revenue of approximately HK$44.2 million, representing an increase of approximately 24.2% from HK$35.6 million in the previous year[6]. - The loss attributable to owners of the parent for the year was approximately HK$27.2 million, an increase of approximately 31.7% compared to HK$20.6 million in 2023[7]. - The increase in loss was mainly due to a provision for impairment losses on financial assets of approximately HK$3.3 million and an increase in research and development costs of approximately HK$11.0 million[7]. - The Group experienced a loss before tax of HK$27.2 million in 2024, compared to a loss of HK$20.6 million in 2023, indicating a deterioration in financial performance[99]. - The net loss for the year was approximately HK$27.2 million, compared to a net loss of HK$20.6 million in the previous year, resulting in a basic loss per share of HK$1.91 in 2024 versus HK$1.45 in 2023[99]. - Cash and cash equivalents decreased to HK$101.7 million in 2024 from HK$112.4 million in 2023, reflecting a net decrease of HK$10.7 million[99]. - The total assets of the Group decreased to HK$153.6 million in 2024 from HK$186.6 million in 2023, while total liabilities decreased to HK$122.1 million from HK$128.0 million[99]. - The current ratio declined to 1.24 in 2024 from 1.42 in 2023, indicating a decrease in liquidity[99]. - The debt-to-equity ratio increased significantly to 292.6% in 2024 from 176.0% in 2023, suggesting a higher level of financial leverage[99]. Investment Fund Performance - The Group's investment in BeiTai Investment LP amounted to HK$43.9 million as of December 31, 2024, representing approximately 59.0% of the total capital commitment of the Investment Fund[17]. - The fair value of the Investment Fund as of December 31, 2024, was approximately HK$18.7 million, down from approximately HK$23.9 million in 2023[17]. - During the year ended December 31, 2024, the Group recorded a net unrealized gain on financial assets at fair value through profit or loss of approximately HK$23.0 million, compared to a net unrealized loss of approximately HK$5.6 million in 2023[56]. - The Group's interest in the Investment Fund includes two underlying investments: an unsecured redeemable bond issued by Emerge Ventures Limited and an unsecured redeemable bond issued by A Metaverse Company[60]. - The Group disposed of all AMC Shares held by the Investment Fund during the year ended December 31, 2024, with proceeds of approximately HK$3.2 million[61]. - The fair value of the Group's interest in the AMC Bond was approximately HK$11.4 million as of December 31, 2023, resulting in an unrealized fair value loss of approximately HK$5.8 million for the year ended December 31, 2023[67]. - The fair value of the Group's interest in the EV Bond was approximately HK$6.0 million as of December 31, 2023, leading to an unrealized gain of approximately HK$0.7 million for the year ended December 31, 2023[69]. - The Investment Fund's underlying investments primarily consist of bonds issued by a company listed in Hong Kong and a private limited company[56]. Corporate Actions and Strategy - The Group decided to cease its corporate finance advisory services effective October 31, 2024, and the related license was revoked on March 26, 2025[16]. - The overall business environment is expected to remain challenging due to geopolitical tensions, high interest rates, and global inflation pressures[18]. - The Group will strategically adjust resource allocation within its Financial Services Business to maximize returns for shareholders[18]. - The Group plans to leverage stable relationships with financial institutions to broaden its customer base in the EAM business[28]. - The Group is exploring new opportunities in emerging financial markets to further develop its Financial Services Business, leveraging its resources and senior management's investment experience[54]. - The Group will continue to enhance the income stream from its Financial Services Business while cautiously allocating resources within this segment[49]. Financial Services Business - The Group's Financial Services Business includes external asset management, fund management, securities services, investment advisory, and corporate finance advisory services[9]. - The Group's EAM business had aggregate assets of approximately HK$3.6 billion as of December 31, 2024, down from HK$4.1 billion in 2023[27]. - Revenue from EAM services increased to approximately HK$38.2 million in 2024, representing a 41.3% increase from HK$27.0 million in 2023[27]. - Revenue from fund management services decreased to approximately HK$5.0 million in 2024, down 8.4% from HK$5.4 million in 2023[32]. - Revenue from corporate finance advisory services fell to approximately HK$0.5 million in 2024, a decrease of 73.0% from HK$1.9 million in 2023[33]. - The Group's external asset management services recorded revenue of approximately HK$38.2 million in 2024, up 41.3% from HK$27.0 million in 2023[30]. Audit and Compliance - The external auditor expressed a qualified opinion regarding the carrying value of the Investment Fund as of December 31, 2021 and 2022 due to insufficient information on the operations and financial position of EV and AMC[63]. - The external auditor's opinion on the Group's consolidated financial statements for FY2024 is modified due to scope limitations on the carrying values of the AMC Bond and AMC Shares as of December 31, 2022[74]. - The external auditor was unable to assess the fair value of the EV Bond as of December 31, 2022, and 2023, due to management's inability to provide sufficient evidence, which could significantly impact the unrealized fair value loss/gain reported for the years ended December 31, 2022, and 2023[73]. - The management conducted fair value assessments on the EV Bond and AMC Bond with the assistance of an independent valuer[67]. - The external auditor and the Audit Committee reached an agreement on the audit qualification arising from the limitations in obtaining sufficient appropriate audit evidence[82]. Employee and Management Information - As of 31 December 2024, the group employed 37 full-time employees, an increase from 26 in 2023[176]. - Staff costs for the year ended 31 December 2024 were approximately HK$22.1 million, a slight decrease from approximately HK$22.9 million in 2023[176]. - The company has adopted a share option scheme to incentivize employees and align their interests with the company's performance[177]. - The remuneration of directors and senior management is aligned with corporate objectives and market conditions[176]. - The executive director, Mr. Xu Peixin, has over 16 years of experience in corporate management and investment[180]. - Mr. Sun Lei, appointed as CEO in December 2018, has over 21 years of experience in the financial industry[182]. - Mr. Zhu Dong, the CFO, has more than 29 years of experience in accounting and corporate finance[188]. - Dr. Yuan Haihai appointed as a non-executive director on November 28, 2024, with over 20 years of experience in finance and consulting across multiple regions[189].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, increased by approximately 130.7% year-on-year, reaching around RMB 213.8 million, up from RMB 92.6 million in 2023[7]. - The overall gross profit margin decreased by about 12.7%, from approximately 36.3% in 2023 to around 23.6% in 2024, primarily due to temporary price discounts to capture market share[7]. - Net profit attributable to equity shareholders was approximately RMB 9.9 million, a year-on-year increase of about 10.9%, driven by an increase in gross profit from RMB 33.6 million in 2023 to RMB 50.5 million in 2024[7]. Revenue Breakdown - Revenue from Japan outbound travel tours increased by approximately 82.2% year-on-year to about RMB 23.5 million, benefiting from a focus on overseas markets and partnerships with international travel agencies[8]. - Revenue from local tours in Japan surged approximately 255.2% year-on-year to around RMB 146.7 million, attributed to enhanced transportation capacity and a broader product selection[8]. - Hotel business revenue increased by about 10.6% in 2024, reaching approximately RMB 21.9 million, with occupancy rates maintained above 90%[8]. - The duty-free shop business experienced a revenue decline of approximately 58.2% in 2024, reflecting a strategic shift in focus[8]. Strategic Plans - The company plans to continue hotel renovations to enhance guest experiences and attract high-end travelers, as well as expand its bus fleet to accommodate larger groups[9]. - Future strategies include launching niche theme tours and exploring emerging destination markets to diversify product offerings[9]. Risk Management and Internal Controls - The company emphasizes risk management and internal controls to maintain operational efficiency and financial transparency, with regular audits and compliance training for staff[10]. - The company has engaged an external professional firm to conduct an annual review of its risk management and internal control systems, ensuring their effectiveness and adequacy[100]. - The audit committee assists the board in overseeing the implementation and effectiveness of risk management and internal control systems[95]. Corporate Governance - The company has adhered to all applicable corporate governance code provisions as per the listing rules, except for the provision C.2.1 regarding the separation of roles between the chairman and CEO[48]. - The board of directors is responsible for overseeing the company's business, strategic decisions, and performance, ensuring objective decision-making in the best interest of the company[51]. - The company has established various committees, including audit, remuneration, and nomination committees, to enhance governance and oversight[48]. Diversity and Inclusion - The board aims to increase the proportion of female directors to at least 20% by 2028, currently having one female director[79]. - The company emphasizes diversity in its recruitment practices across all levels, including the board and senior management[80]. - The workforce composition includes 67 males and 77 females, with a notable increase in the number of employees aged 50 and above from 24 in 2023 to 34 in 2024[172]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's initiatives and performance in sustainability and corporate governance for the year 2024[121]. - The company aims to reduce electricity intensity by 5% by 2030, using 2023 as the baseline year[140]. - The company is committed to implementing internal policies to reduce carbon emissions and achieve decarbonization goals[139]. Employee Development and Welfare - The company achieved a 100% employee training rate this year, with a total training time of 1,183 hours, an increase from 1,056 hours in the previous year[180]. - Employee performance evaluations are conducted at least once a year to recognize hard work and provide improvement feedback[174]. - The company promotes a healthy work-life balance through regular team-building activities and family-inclusive events[175]. Compliance and Legal Matters - The company has established compliance procedures to ensure adherence to significant laws and regulations, with no major violations reported this year[186]. - The company has maintained strict privacy protection for employee and customer data, with no complaints received regarding data security this year[188]. - The company has reported no significant issues related to bribery, extortion, fraud, or money laundering laws during the year[192].

Financial Performance - Total revenue for 2024 reached RMB 1,654,289,000, representing an increase of 3.6% compared to RMB 1,596,266,000 in 2023[7] - Net profit attributable to shareholders for 2024 was RMB 65,610,000, a decrease of 23.6% from RMB 85,948,000 in 2023[7] - The group's total revenue for the reporting period was RMB 1,654.3 million, an increase of 3.6% compared to 2023, with self-operated hospital revenue reaching RMB 1,517.8 million, up 2.2%[30] - Net profit attributable to shareholders was RMB 65.6 million, a decrease of 23.7% compared to 2023[30] - The gross profit margin for self-owned hospitals increased to 25.9% from 25.4% in 2023, with total gross profit rising to RMB 438.4 million, a 6.6% increase[40] - The total gross profit for the group reached RMB 438.4 million, a 6.6% increase from 2023, with a gross margin of 26.5%[59][61] - Cash generated from operating activities was RMB 99.6 million, a decrease of RMB 165.4 million compared to RMB 265.0 million in 2023, primarily due to an increase in accounts receivable from medical insurance by RMB 134.9 million[40] - The income tax expense for the reporting period was RMB 17.7 million, a 44.5% increase from RMB 12.3 million in 2023, with effective tax rates of 26.0% in 2024 and 12.4% in 2023[71] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 3,004,953,000, a slight decrease from RMB 3,047,687,000 in 2023[7] - The total liabilities as of December 31, 2024, were RMB 1,661,651,000, compared to RMB 1,639,481,000 in 2023[7] - The asset-liability ratio increased to 55.3% as of December 31, 2024, compared to 53.8% as of December 31, 2023[101] - As of December 31, 2024, accounts receivable increased to RMB 571.8 million, a 36.0% increase from RMB 420.4 million in 2023, mainly due to changes in medical insurance pre-settlement rules[73] Operational Highlights - The company operated 25 specialized mental health hospitals, generating revenue of RMB 1,056,000,000 during the reporting period[10] - Revenue from elderly care services amounted to RMB 462,000,000, indicating a growing demand and improved profitability[10] - The group operates 32 self-owned hospitals as of December 31, 2024, with the number of operational beds increasing to 11,508 from 11,268 in 2023[30] - The elderly care segment generated approximately RMB 461.9 million in medical business revenue, accounting for 30.4% of the group's self-operated hospital revenue[33] - Self-owned hospital billings amounted to RMB 1,582.1 million, a 2.9% increase from 2023, driven by an increase in outpatient and inpatient visits[44] Market Trends and Government Policies - As of the end of 2024, the elderly population aged 60 and above in China is projected to exceed 310 million, accounting for 22% of the total population[19] - The demand for elderly medical services is expected to surge significantly, leading to continuous expansion of the elderly healthcare market in China[19] - The government has introduced a series of policies to encourage social capital investment in the elderly healthcare sector, providing strong policy support for its development[19] - The "14th Five-Year" public service plan emphasizes the expansion of psychiatric and geriatric medical personnel to meet growing healthcare demands[17] - The government encourages the establishment of integrated medical and elderly care institutions to address the health needs of the aging population[20] Strategic Initiatives - The company plans to strengthen its internet hospital platform and optimize the pharmaceutical supply chain to meet diverse health needs[10] - The company aims to develop a core competitive advantage in elderly care services, integrating it with mental health operations for future growth[10] - The company aims to enhance operational efficiency and leverage information technology to strengthen its market position in mental health services[29] - Future strategies include deepening the integration of medical and financial operations, optimizing asset management, and advancing digitalization and AI applications[37] - The company is accelerating its layout in the elderly medical service sector, aiming to construct a diversified business growth curve[29] Research and Development - The group reported a total of 25 research projects submitted and 164 academic papers published, including 85 SCI papers, showcasing strong research innovation capabilities[35] - Research and development expenses amounted to RMB 36.5 million, a 12.5% increase from 2023, representing 2.4% of the self-owned hospital operating revenue[65] Shareholder and Governance Matters - The company distributed dividends totaling RMB 32,700,000, accounting for approximately 49.8% of the net profit attributable to shareholders[11] - The board proposed a final cash dividend of RMB 3 per 10 shares, totaling RMB 21,801,000, which represents 33.2% of the net profit attributable to shareholders for the reporting period[143] - The company has implemented an equity incentive plan, with a total of 2,460,000 incentive shares granted, representing 3.39% of the total issued share capital[105] - The stock incentive plan aims to grant a maximum of 2,460,000 shares, representing 3.39% of the company's total issued shares (excluding treasury shares) and 4.66% of the total non-listed circulating domestic shares[108] - The company has adhered to corporate governance codes and best practices during the reporting period[184] Employee and Talent Management - The total number of full-time employees increased to 4,869 as of December 31, 2024, from 4,765 in the previous year, with total employee compensation amounting to RMB 644.1 million[102] - The company emphasizes the importance of medical talent training and development, implementing annual training plans for employees[131] Environmental and Social Responsibility - The company is committed to environmental responsibility and has engaged third parties for proper disposal of medical waste[137] - Charitable donations and other contributions totaled approximately RMB 2.7 million for the year ended December 31, 2024[156]

Financial Performance - Revenue for 2024 reached RMB 7,541.93 million, a 34.3% increase from RMB 5,616.22 million in 2023[9] - Adjusted net profit for 2024 was RMB 53.68 million, compared to a loss of RMB 29.62 million in 2023[9] - The net cash flow from operating activities for 2024 was RMB 153.66 million, a recovery from a negative cash flow of RMB 245.59 million in 2023[12] - Profit for the year ended December 31, 2024, was approximately RMB 445 million, compared to a loss of approximately RMB 296 million in 2023[78] - Adjusted net profit (non-IFRS measure) was approximately RMB 536.8 million, an increase of RMB 532.3 million (or 11,750.1%) from approximately RMB 5 million in 2023, driven by enhanced digital product applications and AI integration[82] Assets and Liabilities - Total assets increased to RMB 2,727.77 million in 2024, up from RMB 2,450.76 million in 2023, representing an 11.3% growth[11] - The total liabilities for 2024 were RMB 2,021.48 million, an increase from RMB 1,798.16 million in 2023[11] - Current assets as of December 31, 2024, were approximately RMB 2,610.1 million, an increase of RMB 287.6 million (or 12.4%) from RMB 2,322.5 million in 2023[83] - Trade receivables and bills receivable were approximately RMB 1,775 million, an increase of about RMB 347 million (or 24.3%) from RMB 1,428 million for the year ended December 31, 2023, due to increased freight service volume[88] - Trade payables were approximately RMB 1,721 million, an increase of about RMB 168 million (or 10.8%) from RMB 1,553 million for the year ended December 31, 2023, also due to increased freight service volume[89] Operational Metrics - The number of completed shipments rose to 9.72 million, reflecting a 12.3% year-on-year increase[16] - The number of registered truck drivers reached 3.5 million, a significant increase of 1,473.9 thousand drivers, marking a 10.15% growth[18] - The company achieved an online GTV of RMB 38.4 billion, which is an 11.7% increase year-on-year[15] - The annual retention rate of major shippers was 92.6%, indicating strong customer loyalty[17] - The number of active truck drivers on the platform in 2024 was 474,000, accounting for over 80% of the total shipping orders processed[54] Digital Freight Industry Insights - The total freight revenue in China's digital freight market is projected to be approximately RMB 850 billion in 2024, representing a 21.4% increase from 2023[29] - The top ten digital freight companies contributed around RMB 270 billion to the total freight revenue, accounting for 32% of the digital freight market, an increase of 2 percentage points from 2023[29] - The digital freight industry is transitioning from rapid expansion to a phase of high-quality development, with a notable decrease in growth rate from over 140% in 2021 to about 20% in 2023[29] - The digital freight market is experiencing increased digital penetration in the road freight sector, indicating a trend towards greater market concentration[29] - The company is committed to optimizing industry structure and promoting high-quality development in the full truckload transportation sector[31] Technology and Innovation - The company plans to enhance its digital operational capabilities through AI technology to optimize transportation management and decision-making systems[21] - The company is leveraging artificial intelligence to enhance operational efficiency, focusing on smart risk prevention, business process optimization, and intelligent operations[32] - The company has established a full-link digital freight platform based on SaaS services, enabling end-to-end online operations and real-time data generation[36] - The company launched the AI assistant "Tingjie" to provide transportation guidelines and risk alerts, enhancing operational efficiency for truck drivers[55] - The digital product "Logistics Enterprise Digital Delivery Capability Evaluation" was officially launched on the Beijing International Big Data Exchange in April 2024[60] Community and Social Responsibility - The company emphasizes the importance of social responsibility and brand value through its initiatives, benefiting truck drivers and improving their working conditions[34] - The community provided safety operation services to over 120,000 truck drivers, helping them achieve safer and more efficient transportation[45] - The company has launched mutual aid and medical insurance products, benefiting nearly 850 families and covering over 160,000 truck drivers[45] - The company has integrated social value with business operations, promoting the establishment of a social recognition and rights protection system for truck drivers[43] - The company has established offline communities in 298 cities across China, enhancing local support for truck drivers[45] Governance and Leadership - The company is focused on enhancing its governance structure with a diverse board of directors, including independent members with extensive industry experience[130][136] - The transition of Ms. Wang Yao is part of the company's strategy to ensure effective leadership and governance as it navigates future growth opportunities[126] - The board includes members with significant experience in technology, finance, and logistics, which supports the company's strategic objectives[130][137] - The leadership team is committed to maintaining high standards of corporate governance and financial oversight as the company evolves[130][137] - The company assesses that all independent non-executive directors are independent individuals according to the independence assessment guidelines[142] Future Plans and Projections - The company aims to enhance its digital freight business to meet diverse customer needs, with a projected net amount of HKD 34.2 million allocated for this purpose by December 31, 2024, representing 45.0% of the total net proceeds[160] - The company plans to strengthen its research and development capabilities, allocating HKD 15.2 million (20.0% of net proceeds) to enhance its technological advantages in big data by 2025[160] - The company has a projected timeline for various initiatives, including increasing customer penetration and expanding its service network by 2027 and 2031[160] - The company faces risks related to its growth management, reliance on government subsidies, and competition in the digital freight industry[164] - The company has no current plans to distribute dividends for the fiscal year ending December 31, 2024, considering long-term interests[170]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 9,280 million, representing a 11.3% increase from HKD 8,336 million in 2023[11]. - The company reported a loss attributable to shareholders of HKD 364 million for 2024, compared to a loss of HKD 155 million in 2023[11]. - The net debt ratio increased to 107.1% in 2024, up from 88.9% in 2023, indicating a significant rise in financial leverage[11]. - In 2024, the company recorded a revenue of HKD 9.3 billion, an increase of 11.3% compared to HKD 8.3 billion in 2023[41]. - The company reported a net loss attributable to shareholders of HKD 364 million in 2024, compared to a loss of HKD 155 million in 2023, indicating a significant increase in losses[41]. - The construction business recorded a revenue of HKD 8.9 billion in 2024, a 10% increase from HKD 8.1 billion in 2023, but profit decreased by 51.3% to HKD 201 million from HKD 413 million in 2023[55][56]. - The average pre-tax profit margin for 2024 is projected to decline to 2.3% of revenue, down from 5.1% in the previous year, primarily due to lower profit margins on public housing projects awarded during intensified market competition amid the pandemic[121]. Contract Acquisition and Business Growth - The company secured new contracts worth HKD 11.5 billion in Hong Kong and Macau, setting a record for recent years[21]. - The construction business secured a substantial increase in contracts, with expectations to generate new contracts valued between HKD 6 billion to 8 billion by 2025[35]. - The group secured new construction, maintenance, and renovation contracts worth HKD 11.5 billion in 2024, significantly higher than HKD 6.6 billion in 2023, with total contracts on hand increasing by 38.2% to HKD 36.9 billion[57]. - New contracts worth HKD 589 million were secured in 2024, contributing to a more balanced business portfolio[108]. Industry Outlook and Economic Environment - The overall economic outlook for Hong Kong shows a moderate GDP growth of 2.5%, which is expected to positively impact the construction sector[21]. - The construction sector in Hong Kong experienced moderate growth in 2024, driven by public sector projects, although private construction activities faced a decline[48]. - The outlook for Hong Kong's economy is expected to see moderate growth, with a forecasted real growth of 2-3% in 2025[112]. Safety and Employee Well-being - The company maintained a low accident rate, reducing from 5.3 incidents per 1,000 workers in 2019 to 3.3 incidents in 2024, achieving a new low[28]. - The group recorded a construction injury rate of 3.3 incidents per 1,000 workers in 2024, maintaining the same rate as in 2023, with a total of 21 injuries reported[191]. - A total of 189,857 training sessions were conducted in 2024 to enhance safety awareness among employees, focusing on protective measures and internal safety regulations[190]. - The company emphasizes the importance of employee well-being and safety as a priority in daily operations[147]. Innovation and Technology - The company is focusing on digital transformation and has invested heavily in innovative construction technologies, including Building Information Modeling (BIM) and Modular Integrated Construction (MiC)[27]. - The group is investing in modernizing IT infrastructure and integrating advanced technologies into construction projects to improve operational efficiency and safety[52]. - The integration of Building Information Modeling (BIM) technology has improved project management processes, reducing errors and waste during construction[165]. - The company is leveraging artificial intelligence and robotics to enhance safety and efficiency on construction sites, including the use of robots for plastering and painting tasks[168]. - The group has adopted AI-driven cameras and sensors for real-time monitoring of construction sites, enhancing safety management and operational efficiency[189]. Sustainability and Corporate Responsibility - The company is integrating sustainability into all business operations to meet future industry demands and expectations[31]. - The company is committed to integrating sustainable practices into its operations, aligning with the United Nations Sustainable Development Goals (SDGs)[143]. - The Sustainable Development Steering Committee oversees the company's ESG performance and ensures effective implementation of sustainability strategies[149]. - The company is adopting green building designs and sustainable construction practices to minimize environmental impact[148]. - The group has established a sustainable development code urging partners and suppliers to adhere to social responsibility standards, including business ethics and environmental protection[176]. Talent Development and Workforce Management - The company is focusing on talent development and automation to address the shortage of skilled labor in the construction industry[31]. - The company aims to reduce employee turnover rate to 20% by 2024, compared to a baseline of 25% in 2020[141]. - The average training hours per employee is targeted to be 20 hours by 2024, with a goal of increasing total training hours by 130% compared to 2020[141]. - The company has implemented a new safety smart site system (4S) utilizing 5G technology to monitor high-risk construction sites in real-time, with seven projects awarded the 4S label in 2024[188]. Property Management and Rental Income - The rental income from properties in mainland China showed growth, with occupancy rates remaining stable despite market challenges[41]. - The group recorded a revenue increase from HKD 264 million in 2023 to HKD 388 million in 2024, with rental income rising to HKD 105 million[94]. - The occupancy rate for retail and office properties in Chengdu improved to 89% and 88% respectively by the end of 2024, compared to 87% and 82% in 2023[101]. - The group achieved property sales of HKD 61 million in 2024, with a loss of HKD 38 million, compared to revenue of HKD 12 million and a loss of HKD 3 million in 2023[105].

Financial Performance - The Group recorded sales of approximately RMB2,939.9 million for the year ended 31 December 2024, representing an increase of approximately 10.9% compared to RMB2,651 million in 2023[25]. - The profit for the year was approximately RMB212.7 million, up from RMB183.8 million in 2023[25]. - Earnings per share attributable to ordinary equity holders was approximately RMB0.21, compared to RMB0.18 in 2023[25]. - The Group recorded sales of approximately RMB 2,939,900,000, an increase of about 10.9% compared to RMB 2,651,000,000 in the previous year[27]. - The Group's profit was approximately RMB 212,700,000, up from RMB 183,800,000 in the previous year[27]. - Earnings per share for ordinary shareholders was approximately RMB 0.21, compared to RMB 0.18 in the previous year[27]. - The Group's revenue increased from RMB 2,651 million in 2023 to approximately RMB 2,939 million in 2024, primarily due to an increase in overseas sales of steel pipes[100]. - Overseas sales for 2024 were approximately RMB 2,218.7 million, representing a 61.9% increase compared to approximately RMB 1,370.5 million in 2023, accounting for 79.6% of total steel pipe revenue[107]. - Gross profit from steel pipe sales for 2024 was approximately RMB 494.6 million, a decrease of about 3.7% from RMB 513.4 million in 2023, with a gross profit margin of 17.7%[106]. - Revenue from property development and investment decreased by approximately 41.4% to RMB152.3 million in 2024 from RMB260.0 million in 2023, a decline of RMB107.7 million[112]. Production and Capacity - The Group's production capacity as of 31 December 2024 was 1,800,000 tonnes[9]. - The Group delivered a total of 414,000 tonnes of steel pipes and received orders for 272,000 tonnes, consolidating its leading position in the industry[26]. - The Group has successfully produced and developed deep sea welded pipes for use at depths of 3,500 meters underwater, making it the first and only manufacturer in China to achieve this[81]. - The Group's steel pipe products are widely used in major oil and gas pipeline projects, both onshore and offshore, as well as in infrastructure projects domestically and internationally[81]. Market and Industry Trends - The ongoing Russia-Ukraine conflict and tensions in the Middle East have created uncertainties in the global energy market, impacting international trade[24]. - The construction of natural gas pipelines in China continues to present development opportunities for the Group amid the adjustment of its energy structure[24]. - The global economic recovery remains uncertain in 2025, influenced by various geopolitical factors and market dynamics[40]. - The Group anticipates that 2025 will remain a challenging year for the oil and natural gas industry due to ongoing geopolitical tensions and economic factors[168]. Innovation and Technology - The Group holds 114 patents, including 51 invention patents, and has 19 international quality certificates[10]. - The Group is the first and only steel pipe manufacturer in the PRC to develop deep sea welded steel pipes for use at a water depth of 3,500 meters[10]. - The Group's deep-sea development strategy focuses on oil and gas resources, with significant advancements in deep-sea pipeline technology since 2012[38]. - The Group's commitment to independent innovation and marine engineering aligns with national strategies to support China's maritime power ambitions[41]. Awards and Recognition - The Group was awarded the "Specialized and New Annual Masterpiece" case award by China Media Group in January 2024, outperforming among 12,000 specialized enterprises nationwide[37]. - The Group has been accredited with 14 international quality certifications, including those from Det Norske Veritas and the American Petroleum Institute[81]. - The Group is classified as a member of the Offshore Engineering Equipment Industry, capable of manufacturing subsea pipes and drilling platform structure pipes for offshore projects[82]. Financial Management - The Group has fully repaid its bonds from December 31, 2024, aiming to lighten its financial load and achieve better results[43]. - As of December 31, 2024, the Group's total borrowings amounted to approximately RMB1,865 million, with 45% being long-term borrowings and 55% short-term borrowings[154]. - The Group's gearing ratio remained stable at approximately 28.7% in 2024 compared to 28.5% in 2023, indicating no major change in capital structure[150][152]. - Net cash flows from operating activities decreased to approximately RMB205.9 million in 2024 from RMB431.1 million in 2023[138]. Leadership and Management - Ms. Chen Zhao Nian, aged 48, is responsible for the daily management and operations of the Group, having joined in October 2002[191]. - The Company has a strong leadership team with Ms. Chen serving in significant roles within various local and provincial organizations[194]. - The leadership team emphasizes social responsibility and community engagement, as evidenced by Ms. Chen's recognition as a socially responsible entrepreneur[190]. - The Company aims to leverage its leadership's extensive network and experience to drive growth and development in the industry[196].