Economic Overview - In 2024, the global economic growth rate declined to 2.9%, with significant challenges from geopolitical conflicts and trade tensions impacting the market[13]. Health Industry in China - The total revenue of the health industry in China surpassed RMB 9 trillion, with the medical device market reaching RMB 1.13 trillion, a year-on-year growth of 9.1%[14]. - The in-vitro diagnostics (IVD) market grew to RMB 240 billion, accounting for 20% of the total medical device market, and is expected to exceed RMB 300 billion by 2025[14]. - The penetration rate of AI medical devices exceeded 30%, with the telemedicine market projected to surpass RMB 180 billion by 2025[15]. - The domestic market for home medical devices sold over 20 million units, with per capita healthcare spending rising to RMB 2,547, accounting for 9% of total consumption[15]. - The medical device market in China is projected to reach RMB 1.5 trillion by 2025 and exceed RMB 2.5 trillion by 2030, with a target for domestic high-end equipment replacement rate to increase to 45%[77]. - The Chinese healthcare industry is projected to continue growing, driven by policy support, technological innovation, and aging population demands, with the IVD market expected to exceed RMB 300 billion by 2025[26]. Company Developments - The company launched the retro S1 film camera, designed for beginners, featuring a 35mm reusable film structure and ISO 400 film[13]. - The company has obtained a total of 159 patents, including invention patents and software copyrights, enhancing its intellectual property portfolio[13]. - The company aims to expand its product coverage and continuously seek new profit growth points[13]. - The company has established stable partnerships with agents in Southeast Asia, with clear sales activities and successful bulk sales in the Vietnamese market[28]. - The company plans to expand its overseas market presence, focusing on its own brands "Yes!Star" and "Yestar Smart," particularly in medical imaging products like medical films and dental films[28]. - The company participated in 9 international exhibitions and 2 production and sales matching events in 2024, enhancing its global outreach[28]. - The company is actively exploring new business models for overseas market operations, particularly in Southeast Asia, the Middle East, and Africa[18]. - The company aims to enrich its film camera product matrix and expand market coverage to create new profit growth points, while also enhancing market competitiveness through smart innovations and traditional imaging integration[77]. Financial Performance - The overall revenue for the year decreased by 17.3% to RMB 2,409.9 million, compared to RMB 2,912.7 million in the previous year[49]. - The gross profit declined by 22.2% to RMB 399.2 million, with a gross profit margin dropping from 17.6% to 16.6% due to the impact of national procurement policies[49]. - Revenue from the medical products and equipment segment reached RMB 2,176.2 million, a decrease of 18.7% from RMB 2,676.0 million in the previous year[50]. - The number of hospitals and clinics served decreased by 25% to 1,226, down from 1,639 in the previous year[52]. - Non-medical business revenue fell by 1.3% to RMB 233.7 million, with a gross profit margin decline of 0.4 percentage points to 17.5%[54]. - Impairment losses on non-financial assets amounted to RMB 180.5 million for the year[49]. - Cash and cash equivalents decreased to approximately RMB 93.8 million from RMB 203.1 million in the previous year[55]. - The basic earnings per share from continuing operations was RMB 39.5 cents, compared to a loss of RMB 0.4 cents in the previous year[49]. Debt and Financial Management - The company confirmed a gain of $152,704,000 from the cancellation of new priority notes, equivalent to approximately RMB 1,083,407,000, following a debt restructuring plan[36]. - The company has completed the sale of its subsidiary, Anbai Group, for RMB 574,750,000, and it will no longer consolidate Anbai Group's financials in its reports[40]. - The company has restructured $194,506,648 of offshore debt due in 2026, with a 9.5% interest rate, to provide liquidity solutions for its bondholders[35]. - As of December 31, 2024, the group's debt-to-equity ratio was approximately 29%, a significant decrease from 150% in 2023[56]. - The total interest-bearing loans and borrowings amounted to RMB 279.5 million as of December 31, 2024, down from RMB 1,571.6 million in 2023[56]. - Total interest expenses decreased to approximately RMB 30.2 million in 2024 from RMB 164.7 million in 2023, primarily due to the full redemption of preferred notes[60]. Corporate Governance and Management - The company emphasizes the importance of relationships with key stakeholders, including customers, suppliers, employees, and shareholders, for its success[104]. - The company has established long-term contracts with hospitals and clinics ranging from 1 to 8 years, providing stability and encouraging supplier-distributor relationships[105]. - The company has a non-competition commitment from its controlling shareholders, ensuring they will not engage in competing businesses in the imaging printing and medical imaging sectors in China[146]. - The board of directors includes a mix of executive and independent non-executive directors, with a requirement for one-third of directors to retire at each annual general meeting[134]. - The company has confirmed that all independent non-executive directors meet the independence criteria set by the Hong Kong Stock Exchange[135]. - The company has implemented strict codes of conduct to prevent corruption and other misconduct among its directors[199]. - The board has the authority to appoint individuals to fill temporary vacancies, with such appointments subject to re-election at the next annual general meeting[193]. Talent Management and Development - By 2025, the company aims to enhance its talent strategy, focusing on attracting high-level talent to improve its R&D and marketing capabilities[18]. - The company is focusing on talent management optimization in 2024, emphasizing the development of key areas such as in vitro diagnostics and digital marketing[33]. - The company values its employees as its most valuable asset and aims to provide a harmonious and safe working environment[107]. Risks and Challenges - The company faces major risks including technological development risks, regulatory risks, and political risks that could impact its operations and profitability[100][101][103]. - Regulatory changes in the healthcare industry may affect the gross margins of the company's medical products[101]. - The upcoming U.S. presidential election in January 2025 may lead to policy changes affecting international trade with China, potentially reducing demand for the company's in vitro diagnostic business[103]. Shareholder Information - The company did not declare an interim dividend for the year and the board does not recommend a final dividend for the year[114]. - As of December 31, 2024, the company's net interest-bearing loans and borrowings amounted to approximately RMB 71.72 million, a decrease from RMB 77.44 million in 2023[130]. - The company has a reserve available for distribution to shareholders of approximately RMB 154.5 million as of December 31, 2024[125]. - Major shareholders include Hartono Jeane with 391,870,000 shares (16.80%), Hartono Rico with 265,810,000 shares (11.40%), and UBS Group AG with 267,890,691 shares (11.49%) as collateral agent[152]. Future Outlook - The company plans to deepen its presence in key overseas markets such as Vietnam, Indonesia, Thailand, Afghanistan, and Iraq by 2025, while also exploring new markets in the Philippines, Malaysia, Turkey, Iran, and India[77]. - The company aims to become a leading comprehensive service provider in the in-vitro diagnostic products sector in China[170].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[1]. - Revenue for the year ended December 31, 2024, was RMB 2,924.5 million, a decrease of 2.3% compared to RMB 2,992.7 million for the year ended December 31, 2023[21]. - Gross profit for the year ended December 31, 2024, was RMB 1,167.8 million, down 6.5% from RMB 1,249.5 million for the year ended December 31, 2023[21]. - Profit attributable to owners of the company for the year ended December 31, 2024, was RMB 297.3 million, compared to RMB 363.8 million for the year ended December 31, 2023[21]. - Adjusted EBITDA for the year ended December 31, 2024, was RMB 1,054.1 million, a decline of 1.7% from RMB 1,072.4 million for the year ended December 31, 2023[21]. - The company's net profit for 2024 was RMB 354.7 million, down from RMB 402.0 million in 2023, primarily due to a decline in health check business revenue[69]. - The revenue from the comprehensive hospital business in 2024 was RMB 604.4 million, down 3.7% from RMB 627.7 million in 2023[57]. - The revenue from the health check business in 2024 was RMB 2,358.8 million, a decline of 1.1% from RMB 2,386.0 million in 2023[58]. - The gross profit decreased from RMB 1,249.5 million in 2023 to RMB 1,167.8 million in 2024, with a gross margin of 39.9%[61]. User Engagement and Market Expansion - User data showed a 15% increase in active users, reaching 1.2 million by the end of the reporting period[1]. - The company is expanding its market presence, with plans to open 10 new clinics across China in the next year[1]. - The company plans to implement a new digital marketing strategy aimed at increasing brand awareness and user engagement by 40%[1]. - The company aims to deepen strategic transformation and integrate advanced technologies such as AI and big data into its healthcare services[24]. - The health check sector has launched multi-level health management products focusing on early cancer screening and chronic disease management, supported by a digital platform covering 83 health check institutions across 29 cities in China, with 75 already operational[27]. Strategic Initiatives and Innovations - New product launches included a state-of-the-art health monitoring device, expected to contribute an additional $50 million in revenue[1]. - A strategic acquisition of a local healthcare provider was completed, enhancing the company's service offerings and expected to generate $30 million in annual revenue[1]. - Research and development investments increased by 30%, focusing on innovative healthcare technologies[1]. - The company has developed the Rici Medark platform, integrating AI technology to assist doctors in lesion identification and condition grading, aiming for diagnostic quality control in report generation in the future[27]. - The company is committed to strategic goals despite external challenges, emphasizing innovation-driven service upgrades and talent development to enhance its position as a leader in high-quality medical services[28]. Operational Efficiency and Customer Satisfaction - The company reported a net profit margin of 12%, up from 10% in the previous year, indicating improved operational efficiency[1]. - Customer satisfaction ratings improved to 90%, reflecting the company's commitment to quality service[1]. - The health check-up segment achieved a customer satisfaction rate of 98.80%, an increase of 1.1 percentage points year-on-year[53]. Financial Position and Liabilities - The total assets as of December 31, 2024, amounted to RMB 4,858.5 million, an increase from RMB 4,637.8 million as of December 31, 2023[22]. - The total liabilities as of December 31, 2024, were RMB 3,483.4 million, down from RMB 3,523.7 million as of December 31, 2023[22]. - As of December 31, 2024, the company's current liabilities exceeded its current assets by RMB 323.3 million, a decrease from RMB 726.6 million as of December 31, 2023, primarily due to improved collection efficiency of operating receivables[76]. - The company's cash and cash equivalents amounted to RMB 1,109.8 million as of December 31, 2024, up from RMB 811.2 million as of December 31, 2023[77]. - Total bank and other borrowings were RMB 797.0 million as of December 31, 2024, down from RMB 866.6 million as of December 31, 2023[80]. Governance and Board Composition - The board consists of 4 executive directors (57.1%) and 3 independent non-executive directors (42.9%) as of December 31, 2024[99]. - The gender composition of the board is 4 males (57.1%) and 3 females (42.9%)[99]. - The company has a policy ensuring that the gender ratio in the board, senior management, and employees is at least 10%[99]. - All directors participated in continuous professional development activities to enhance their knowledge and skills[102]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance for the year ending December 31, 2024[110]. Risk Management and Compliance - The company has established a comprehensive risk management and internal control framework to actively manage risks[142]. - The main risks identified include business expansion risks, competition risks, and investment risks, with specific measures in place to mitigate these risks[143][145]. - The company emphasizes the importance of anti-fraud measures and has implemented a whistleblower system to encourage reporting of fraudulent activities[159]. - The internal control system is based on COSO principles and has undergone independent audits to ensure effectiveness[160]. - The company is enhancing its compliance system by regularly reviewing legal regulations and industry standards[155]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the performance and measures of the company and its 108 subsidiaries for the period from January 1, 2024, to December 31, 2024[173]. - The board of directors commits to strict compliance with listing rules and ESG reporting guidelines, ensuring the accuracy and completeness of the report's content[176]. - The company has published its ESG report for nine consecutive years since 2016, enhancing its internal sustainability system and optimizing ESG management processes[178]. - The company has not faced any fines or lawsuits due to environmental violations during the reporting period, demonstrating compliance with environmental laws[187]. - In 2024, the company aims to continue its efforts in environmental protection and pollution prevention, revising management methods to reduce resource consumption and enhance recycling rates[187].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of HKD 140,591,000, representing an increase of 4.9% from HKD 134,927,000 in 2023[9]. - The gross profit for the same period was HKD 112,765,000, up from HKD 107,539,000 in 2023, indicating a gross margin improvement[9]. - The net profit for the year was HKD 1,853,000, a significant decrease from HKD 572,518,000 in the previous year, reflecting a challenging operating environment[9]. - Total revenue for the year ended December 31, 2024, was approximately HKD 140.6 million, an increase of approximately HKD 5.7 million or 4.2% from approximately HKD 134.9 million for the year ended December 31, 2023, driven mainly by increased revenue from the gaming operations and publishing segment[15]. - Gross profit for the year ended December 31, 2024, was approximately HKD 112.8 million, an increase of approximately HKD 5.3 million or 4.9% from approximately HKD 107.5 million for the year ended December 31, 2023, with a gross margin of approximately 80.2% compared to 79.7% in the previous year[18]. Assets and Liabilities - Total assets decreased to HKD 134,676,000 in 2024 from HKD 160,873,000 in 2023, while total liabilities remained relatively stable at HKD 20,682,000[10]. - The company's equity increased to HKD 113,994,000 in 2024 from HKD 140,321,000 in 2023, indicating a decline in overall financial health[10]. - As of December 31, 2024, the company's debt ratio was approximately 15.4%, an increase from 12.8% as of December 31, 2023[32]. Profitability and Returns - The return on equity (ROE) for 2024 was 1.6%, a significant drop from the previous year's 64.3%[11]. - The company reported a loss attributable to equity holders of approximately HKD 17.1 million for the year ended December 31, 2024, compared to a profit of approximately HKD 559.9 million for the year ended December 31, 2023, primarily due to one-time non-recurring income from the surrender of promissory notes recognized in the previous year[14][25]. Operational Costs - Research costs decreased to approximately HKD 9.0 million for the year ended December 31, 2024, down approximately HKD 10.8 million or 54.5% from approximately HKD 19.8 million for the year ended December 31, 2023, due to fewer projects in the research phase[21]. - Promotion costs for the year ended December 31, 2024, were approximately HKD 40.7 million, a decrease of approximately HKD 14.8 million or 26.7% from approximately HKD 55.5 million for the year ended December 31, 2023, primarily due to reduced advertising and promotional expenses[22]. - Administrative expenses increased to approximately HKD 43.3 million for the year ended December 31, 2024, up approximately HKD 11.6 million or 36.6% from approximately HKD 31.7 million for the year ended December 31, 2023, mainly due to increased depreciation and employee travel expenses[23]. Employee and Workforce - The total number of employees increased to 151 as of December 31, 2024, compared to 108 as of December 31, 2023[36]. - The total employee compensation for the year ended December 31, 2024, was approximately HKD 31.1 million, down from HKD 35.4 million in 2023[36]. - The employee turnover rate for the overall company is 20% in 2024, a significant decrease from 124% in 2023[141]. - The company has increased its full-time employees from 107 in 2023 to 151 in 2024, representing a growth of approximately 41%[141]. Governance and Compliance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with listing rules[61]. - The audit committee is responsible for overseeing internal controls, financial disclosures, and the appointment of external auditors[78]. - The company has established a governance structure to integrate ESG principles into its management processes, with the board of directors responsible for overseeing ESG matters[113]. - The company has established a policy for employees to confidentially report concerns regarding financial reporting and internal controls[83]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's commitment to sustainable growth and details its management strategies, governance structure, and sustainability measures[106]. - The company has identified seven sustainable development goals that align with its business nature and vision, responding to the UN's call for global sustainability[116]. - The company is committed to reducing energy consumption and greenhouse gas emissions[117]. - The company has implemented measures to reduce environmental impact and actively fulfills social responsibilities, providing a safe work environment and competitive benefits for employees[112]. Community Engagement and Social Responsibility - The company donated a total of 300,000 Thai Baht (approximately 70,000 HKD) to three relief funds for flood-affected areas in Chiang Rai, Thailand[177]. - The company provided daily necessities and a V-shaped bottom boat to assist residents affected by the floods[177]. - The company supported approximately 120 households in remote villages near Bangkok by donating daily necessities worth about 150,000 Thai Baht (approximately 35,000 HKD)[181]. - The company initiated a donation program for a children's organization in Bangkok, encouraging employees to donate unused items for underprivileged children[183]. Technology and Innovation - The management is exploring new product development and technological advancements to enhance user engagement and market competitiveness[13]. - The company has established a professional technical team to ensure high-quality game development and continuous optimization[128]. - The company has implemented an innovative program to encourage creative game planning proposals, rewarding accepted ideas with bonuses to enhance employee engagement and innovation[163]. Risk Management - The company emphasizes the importance of effective risk management and internal control systems, regularly reviewed by the audit committee[49]. - The company is facing risks related to technological advancements and competition in the gaming industry[46][47]. - The board regularly reviews the effectiveness of the company's risk management system, including ESG-related risks, and develops corresponding response plans[115]. Executive Leadership - Mr. Zhou has over 15 years of experience in e-commerce and has been appointed as CEO of Firerock Capital Pte. Ltd. since January 2023, focusing on overseas business operations[195]. - Mr. Ke has been appointed as Executive Director and CTO effective March 1, 2025, with a monthly director's fee of SGD 12,000, bringing extensive experience in software engineering and game development[197]. - The company is expanding its overseas operations, leveraging the expertise of newly appointed executives in various sectors[195][197][199][200].

Business Growth and Revenue - In 2024, the company achieved over 8% growth in routine business, over 18% growth in special testing business, and a significant 62% growth in co-construction business[7]. - In 2024, the company's regular business revenue (excluding COVID-19) increased by 8.2% compared to the same period in 2023, driven by strong growth in specialty testing business, which grew over 18% year-on-year[24]. - The company achieved a 62% increase in revenue from collaborative business in 2024 compared to the same period in 2023, significantly broadening market coverage and enhancing competitiveness[24]. - Revenue from routine testing services, excluding COVID-19 related tests, increased by 8.2% from RMB 2,693.3 million in 2023 to RMB 2,914.1 million in 2024, reflecting the continued expansion of specialized testing services and a robust growth in sample volume[45]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[95]. - Revenue for the fiscal year reached $500 million, representing a 15% increase compared to the previous year[95]. - The company has set a future outlook with a revenue guidance of $600 million for the next fiscal year, indicating a growth target of 20%[95]. Financial Performance - In 2024, the company achieved a revenue of RMB 2,914,113 thousand, a decrease of 11.6% compared to RMB 3,297,828 thousand in 2023[19]. - The gross profit for 2024 was RMB 1,098,649 thousand, down 23.4% from RMB 1,434,107 thousand in 2023[21]. - The net profit for the year was RMB 62,563 thousand, a significant decline of 76.1% from RMB 262,322 thousand in 2023[21]. - The basic earnings per share for 2024 were RMB 0.07, down from RMB 0.34 in 2023[21]. - The gross margin decreased from 43.5% in 2023 to 37.7% in 2024, primarily due to reduced contributions from COVID-19 related testing and the inefficiencies of newly opened laboratories[47]. - Other income and gains for the year ending December 31, 2024, were RMB 49.3 million, down approximately 20.0% from RMB 61.6 million in 2023, mainly due to the absence of non-cash fair value gains related to put options[50]. - Research and development expenses for the year ending December 31, 2024, were RMB 120.0 million, a decrease of approximately 16.4% from RMB 143.5 million in 2023[53]. Strategic Initiatives and Investments - The company completed a five-year strategic plan for special testing capabilities, focusing on blood, oncology, and emerging fields like neuroimmunology and chronic diseases[8]. - The company plans to invest in key projects such as macro-genetic testing, tumor methylation early screening, and electron microscopy pathology biopsy, which align with existing technical capabilities[8]. - The company aims to enhance partnerships with regional medical institutions to promote industry development through shared laboratory resources and technology platforms[8]. - The company plans to pursue mergers and acquisitions to enhance its technical capabilities and competitive edge in specific testing fields[12]. - The company is investing $20 million in new technology development to improve operational efficiency[95]. Operational Efficiency and Technology - AI-assisted pathology reading technology has improved reading speed by 6-7 times compared to manual methods, with over 8 million cases assisted by AI[9]. - The company successfully launched a new generation Laboratory Information Management System (LIMS) in 20 key subsidiaries, with plans for full implementation across all subsidiaries by 2025[9]. - The company upgraded its laboratory management systems and implemented AI technology, with over 800,000 images analyzed, improving efficiency and accuracy in pathology interpretation[25]. - The company reduced reagent procurement costs by 10% and logistics costs by 6% in 2024 compared to 2023, optimizing key operational metrics[27]. - The company continues to invest in upgrading its laboratory information systems and data management capabilities, leveraging AI to optimize operations and improve service delivery[43]. Market Trends and Industry Outlook - The aging population and rising chronic disease rates are driving an increase in testing demand, with health awareness prompting early detection and preventive measures[34]. - The demand for ICL testing is expected to increase due to the promotion of a tiered diagnosis and treatment system, which enhances access to primary care and balances public healthcare resources[32]. - The Chinese government is investing heavily in healthcare infrastructure and expanding insurance coverage, which is expected to increase the outsourcing demand for clinical testing services[37]. - Regulatory policies are becoming stricter, promoting a compliant and sustainable development direction for the ICL industry, enhancing market transparency and competition[38]. - The outsourcing rate of testing in health examination centers is increasing due to rising customer demand for quality and cost-effective testing services[34]. Leadership and Governance - Yang Ling has been the chairperson and non-executive director since October 2018, leading Pearl Group Limited's investment in the company[83]. - The company has seen significant leadership changes, with new non-executive directors joining, including Zhou Mintao, who has extensive experience in the healthcare sector[88]. - The company is focusing on expanding its market presence and enhancing its product offerings through strategic leadership appointments and partnerships[91]. - The company has a strong board with members holding advanced degrees from prestigious institutions, including Harvard Business School and Ohio State University[84][91]. - The leadership team has a diverse background in various industries, including pharmaceuticals, biotechnology, and investment banking, which positions the company well for future challenges[90]. Shareholder and Financial Management - The total net proceeds from the global offering amounted to RMB 230.9 million, fully utilized by December 31, 2024[115]. - The company has established a remuneration committee to review the compensation of directors and senior management[171]. - The company has maintained at least 25% of its issued shares held by the public, complying with the minimum public float requirement[138]. - The company has not been involved in any legal proceedings that could significantly impact its business or financial performance during the reporting period[142]. - The company has not issued any debt securities during the reporting period[139]. Related Party Transactions - The procurement and equipment leasing framework agreement with Aikang Biotechnology has an annual cap of approximately RMB 110 million, with actual transactions during the reporting period amounting to RMB 1.4 million[178]. - Aikang Biotechnology is recognized as a related party, with 50% ownership held indirectly by Mr. Lin Jixun, a non-executive director of the group[177]. - Independent non-executive directors confirmed that the ongoing related party transactions are conducted on normal commercial terms and in the overall interest of the company and its shareholders[179]. - The exclusive business cooperation agreement grants Aikang exclusive and complete proprietary rights to all intellectual property developed during the performance of the agreement[183]. Risk Management - The company has identified several key risks, including competition, regulatory changes, and potential loss of customers, which could adversely affect its financial performance[145]. - The company has implemented measures to mitigate risks associated with contractual arrangements, ensuring effective business operations and compliance by registered shareholders[195]. - The company may face severe penalties or be forced to relinquish benefits obtained through contractual arrangements if deemed non-compliant with Chinese regulations[195].

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for the last quarter[6]. - The annual revenue was approximately HKD 775,500,000, representing an increase of about 113% from HKD 364,300,000 in 2023[17]. - Total revenue for the year ended December 31, 2024, was HKD 775,467,000, a significant increase from HKD 364,291,000 in 2023, representing a growth of approximately 113%[197]. - The company reported a net loss of HKD 50,530,000 for the year 2024, compared to a profit of HKD 27,699,000 in 2023, marking a turnaround of approximately 283%[197]. - Basic and diluted loss per share for 2024 was HKD (0.13), compared to earnings of HKD 0.07 per share in 2023[197]. - Total comprehensive loss for the year was HKD (50,954,000), a decline from total comprehensive income of HKD 28,740,000 in 2023[198]. - Gross profit decreased to HKD 134,036,000 in 2024 from HKD 174,433,000 in 2023, indicating a decline of about 23%[197]. - Administrative and other operating expenses rose to HKD 160,722,000 in 2024 from HKD 53,368,000 in 2023, an increase of approximately 201%[197]. User Growth and Market Expansion - User data showed a growth of 25% in active users, totaling 5 million users by the end of the quarter[6]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of the fiscal year[6]. - New product launches contributed to a 30% increase in sales, with the latest product line accounting for $300 million in revenue[6]. Strategic Initiatives - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to generate an additional $50 million in annual revenue[6]. - The company plans to invest $200 million in new technology infrastructure over the next two years[6]. - The company aims to reduce operational costs by 15% through efficiency improvements and automation[6]. Customer Satisfaction and Service - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous quarter[6]. - The group has established a customer service hotline for tenants and guests to provide feedback and complaints[73]. - The group maintains close communication with property management companies to ensure quality service for tenants[73]. Financial Position and Equity - As of December 31, 2024, the group's equity attributable to shareholders was approximately HKD 4.22 billion, a decrease from HKD 4.30 billion in 2023, due to losses and dividend payments[30]. - The debt-to-equity ratio decreased to 0.7% from 9.0% in 2023, primarily due to the full repayment of bank loans during the year[32]. - The group had no outstanding bank loans as of December 31, 2024, compared to approximately HKD 367.1 million in 2023[31]. - The company’s joint venture, indirectly held at 50%, received a term loan of HKD 744,600,000 as of December 31, 2024, with HKD 314,800,000 drawn down, and the company provided a 50% guarantee[35]. Investment Properties and Valuation - The fair value of the investment properties at the Regal Center was approximately HKD 1,954,600,000 as of December 31, 2024, down from HKD 1,993,100,000 in 2023[18]. - The fair value of investment properties held by the group as of December 31, 2024, is HKD 1,955,000,000, representing 44% of the total asset value[184]. - The group has a significant reliance on subjective estimates for the valuation of investment properties, which increases the risk of misstatement[184]. - The assessment of the net realizable value of development properties requires management's estimates, particularly in determining future selling prices and completion costs[187]. Governance and Compliance - The group has adhered to high standards of corporate governance and complied with the corporate governance code during the fiscal year ending December 31, 2024[130]. - The independent auditor has issued an unqualified opinion regarding the group’s continuing connected transactions, confirming compliance with relevant agreements and pricing policies[120]. - The company has established a risk management and internal control system, which is reviewed annually for effectiveness[160]. Employee and Board Information - Employee turnover rate for 2024 is 15%, consistent with 2023[75]. - Average employee tenure increased to 3.7 years as of December 31, 2024, compared to 2.8 years in 2023[75]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors[132]. - The company has appointed a new independent non-executive director, Cheng Xiaoyuan, effective May 23, 2024[133]. Future Outlook - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting revenues of approximately $1.32 billion[6]. - The group expects to maintain rental rates and occupancy for its investment properties in 2025[77]. - The group anticipates stable income and profit contributions from its asset management business in 2025[77]. - The group is cautiously optimistic about the future of the Hong Kong real estate market despite existing challenges[77].

Financial Performance - In 2024, the company's revenue was RMB 1,748,321, a decrease of 7.0% compared to RMB 1,879,443 in 2023[15]. - Gross profit for 2024 was RMB 131,341, reflecting a decline from RMB 141,406 in 2023, resulting in a gross margin of 7.5%[15][19]. - Profit before tax decreased to RMB 36,576 in 2024, down 16.5% from RMB 43,793 in 2023[15]. - The profit for the year attributable to owners of the company was RMB 27,313, a decrease of 11.5% compared to RMB 30,745 in 2023[15]. - The Group's revenue for the year was approximately RMB 1,748.3 million, a decrease of about 7.0% compared to the previous year, with revenue contributions from landscaping construction (5.6%), municipal engineering (46.4%), construction engineering (45.2%), and others (2.8%)[51]. - Revenue from the landscape construction segment fell by 47.9% to RMB 97.5 million, attributed to a decrease in the number of projects[77]. - The municipal works construction segment saw a revenue increase of 17.4% to RMB 811.7 million, driven by a rise in the number of projects[78]. - Revenue from the building works segment decreased by 16.1% to RMB 790.7 million, mainly due to a reduction in project numbers[79]. - The Group's revenue from the others segment decreased by 17.4% or RMB 10.2 million, from RMB 58.7 million last year to RMB 48.5 million this year[80]. - Gross profit decreased by 7.1% or RMB 10.1 million, from RMB 141.4 million last year to RMB 131.3 million this year, with a stable gross profit margin of approximately 7.5%[87]. Assets and Liabilities - Total assets as of 2024 were RMB 2,157,090, a decrease from RMB 2,325,983 in 2023[17]. - Total liabilities decreased to RMB 1,152,661 in 2024, down from RMB 1,348,926 in 2023, indicating improved financial stability[17]. - The company's equity attributable to owners increased to RMB 998,283 in 2024, up from RMB 970,970 in 2023[17]. - The Group's net current assets decreased by 2.8% or RMB 27.0 million, from RMB 961.5 million as of December 31, 2023, to RMB 934.5 million as of December 31, 2024, primarily due to a decrease in trade and other receivables[97][99]. - Trade and other receivables decreased by 39.8% or RMB 245.2 million, from RMB 616.4 million as of December 31, 2023, to RMB 371.2 million as of December 31, 2024, due to increased efforts in receivables collection[102]. - Trade payables decreased by 5.1% or RMB 20.8 million from RMB 406.6 million in 2023 to RMB 385.8 million in 2024, attributed to a decrease in revenue[117]. Market and Industry Trends - The construction sector continued to play a key role in stabilizing growth and promoting transformation amidst challenges in the market[21]. - The total output value of the national construction industry reached RMB 32.7 trillion in 2024, an increase of 3.9% year-on-year[31]. - The added value of the construction industry for the year was RMB 9.0 trillion, reflecting a growth of 3.8% compared to the previous year[31]. - The total profits of qualified general contracting and specialized contracting construction enterprises nationwide were RMB 751.3 billion, a decrease of 9.8% over the previous year[33]. - National fixed asset investment increased by 3.2% in 2024, with infrastructure investment growing by 4.4%[34]. - The construction industry in 2024 showed characteristics of stabilizing growth in infrastructure, weak recovery in real estate, and transformation driven by technology, with state-owned enterprises performing prominently[66]. Strategic Focus and Innovation - The company focused on "innovation-driven and green development," aiming to enhance operational efficiency and explore new growth points in emerging fields[21][22]. - The Group is actively expanding into strategic emerging fields such as water conservancy projects and new energy infrastructure[25]. - The Group achieved significant technological advancements in smart construction and water conservancy, applying big data, IoT, and AI to engineering projects, enhancing project quality and market competitiveness[44][46]. - The new "construction industry+" model, integrating smart construction and smart building, has emerged as a new path for enterprise transformation[40][42]. - The Group aims to enhance management efficiency and optimize business structure to maintain competitiveness in the market[71]. - The focus on green and digital transformation aligns with the national "dual carbon" goals and sustainable development initiatives[71]. Management and Governance - Mr. Peng YH was appointed as an executive director and CEO of the Company on March 15, 2017, and has over 20 years of experience in the landscape and public work construction industry[169]. - Mr. Peng DS, the founder of the Group, has been responsible for business development and quality control since its establishment in January 2001[169]. - The Group's management team includes Mr. Tong Tai Alex, who has been the CFO since December 2015, overseeing financial management and regulatory compliance[186]. - The Group's executive team is supported by independent directors with extensive backgrounds in law and finance, enhancing governance and strategic oversight[177][179]. - The Company aims to leverage its experienced management team to drive future growth and operational efficiency[169]. Financial Risks and Management - The Group is exposed to various financial risks including credit risk, liquidity risk, and interest rate risk[146]. - The Group's credit risk is primarily from trade and other receivables, and cash and bank balances[154]. - The Group's policy is to regularly monitor liquidity requirements to maintain sufficient cash reserves[156]. - The management emphasizes the importance of risk management in evaluating material risk exposures, including investment, interest rate, and liquidity risks[54].

Financial Performance - The Group recorded revenue of RMB244.6 million for the year ended December 31, 2024, representing an increase of approximately 28.0% compared to RMB191.1 million in the previous year[13]. - Revenue for 2024 reached RMB 244,646,000, representing a year-on-year increase of 28.0% compared to RMB 191,062,000 in 2023[22]. - The total revenue for the year ended December 31, 2024, was RMB244.6 million, compared to RMB191.1 million in 2023[87]. - Corporate digitalisation solution services revenue increased by 35.2%, from approximately RMB158.9 million in 2023 to RMB214.9 million in 2024, representing 87.8% of total revenue in 2024[93]. - Revenue from tangible goods sourcing and delivery services contributed 47.0% of total revenue for the year ended December 31, 2024, compared to 9.7% for the year ended December 31, 2023[140]. - Revenue from hybrid services rose to RMB114.9 million in 2024, making up 53.5% of total revenue, compared to RMB18.6 million and 11.7% in 2023[97]. - Revenue from advertising agents was RMB75.9 million in 2024, accounting for 35.3% of total revenue, compared to RMB62.0 million and 39.0% in 2023[102]. Profitability and Loss - Gross profit decreased to RMB 65,808,000 in 2024, down 35.3% from RMB 101,667,000 in 2023[22]. - The company reported a loss before income tax of RMB 37,846,000 in 2024, a significant decline from a profit of RMB 14,899,000 in 2023, marking a change of -354.0%[22]. - The company's loss for the year increased by approximately RMB51.9 million, or 411.9%, from a profit of approximately RMB12.6 million for the year ended 31 December 2023 to a loss of approximately RMB39.3 million for the year ended 31 December 2024[163]. - Adjusted net loss for the year ended 31 December 2024 was approximately RMB27.9 million, compared to an adjusted net profit of approximately RMB21.7 million for the year ended 31 December 2023[170]. Assets and Liabilities - The total assets of the company as of December 31, 2024, were RMB 531,949,000, a decrease from RMB 637,384,000 in 2023[29]. - Total liabilities decreased to RMB 173,165,000 in 2024 from RMB 244,728,000 in 2023[29]. - The Group's interest-bearing borrowings as of December 31, 2024, were RMB 87.5 million, a decrease of 44% from RMB 156.2 million as of December 31, 2023[179]. - The Group's cash and cash equivalents decreased from RMB 186.5 million as of December 31, 2023, to RMB 139.0 million as of December 31, 2024[184]. Market and Industry Insights - The lottery market in China saw annual sales of approximately RMB 623.5 billion in 2024, an increase of 7.6% over 2023[36]. - Sales of the Welfare Lottery amounted to approximately RMB 208.0 billion in 2024, representing a 7.0% increase compared to 2023[36]. - The lottery market has expanded from RMB 373.3 billion in 2021 to RMB 623.5 billion in 2024[39]. - The company aims to expand its market presence in the Welfare Lottery and Sports Lottery sectors by focusing on lottery marketing tickets in 2025[79][81]. Strategic Initiatives - The Group plans to shift focus towards AI digital lottery stores to attract private domain traffic from lottery players and stores[14]. - The Group intends to maintain vigilant risk management strategies to secure steady progress amidst economic challenges[16]. - The Group aims to enhance its corporate digitalisation solutions by developing virtual and tangible goods sourcing and delivery services in the first half of 2024[48]. - The Group focuses on integrating online and offline experiences through its "Online-Merge-Offline" (OMO) strategy to improve customer experience and user lifetime value[43]. - The company plans to enhance its strategic investments to maximize synergies across different business segments and capitalize on diversification opportunities[84]. Operational Efficiency - The Company aims to enhance its main business areas, streamline capital distribution, and improve operational efficiency for steady growth[16]. - The company is committed to a prudent risk management strategy to ensure steady growth amid a complex economic environment[80]. - The integration of online and offline experiences is expected to drive future growth in corporate digitalisation services[99]. Employee and Staffing - Total staff costs amounted to approximately RMB54.0 million for the year ended 31 December 2024, compared to approximately RMB49.5 million for the year ended 31 December 2023[175]. - The number of full-time employees increased to 311 as of 31 December 2024, up from 257 in 2023[171]. - The company adopted an appraisal system for employees, conducting performance reviews monthly or quarterly to determine bonuses[174]. Research and Development - R&D expenses increased by approximately RMB3.3 million, or 15.7%, from approximately RMB21.0 million for the year ended 31 December 2023 to approximately RMB24.3 million for the year ended 31 December 2024[155]. - The company will continue to develop lottery software and hardware solutions, integrating AI-based technology to facilitate the digital transformation of lottery shops[83][85].

Company Growth and Strategy - The company reported a resilient growth with a focus on high-quality development, emphasizing the importance of building solid foundations for future expansion [4]. - Future outlook includes a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies [20]. - The company is actively investing in new technologies, with a budget allocation of $200 million for R&D in the upcoming year [20]. - The company is pursuing strategic acquisitions, targeting at least two potential companies in the property management sector to enhance its portfolio [20]. - The management provided an earnings guidance of $1.5 billion for the next quarter, representing a 12% increase compared to the previous quarter [20]. - The company is actively expanding its portfolio with multiple projects in key cities such as Zhengzhou, Chongqing, and Changsha [27]. - The overall strategy includes leveraging completed projects to drive future revenue growth and market penetration [31]. - The Group's strategy emphasizes high-quality development and solid financial management to ensure sustainable growth [138]. Market Expansion and Development Projects - Market expansion efforts are focused on Southern China, with plans to enter 15 new cities by the end of 2025 [20]. - The company has completed several major development projects, with a total gross floor area (GFA) of 1.5 million square meters under construction [16]. - The Changping Life Science Park Project in Beijing is expected to be completed by December 2025, with a 32% interest held by the company [16]. - The company has a 66% interest in the Tian Feng project in Guangzhou, with a total construction area of 131,093 sqm, expected to be completed by November 2025 [18]. - The Panyu Xiangjiang Project in Guangzhou is fully owned by the company, with a completed area of 65,945 sqm, expected to be completed by May 2025 [18]. - The company maintains a diversified interest structure across its projects, with ownership percentages ranging from 25% to 100% [27]. - The completion dates for several projects extend into 2030, indicating a long-term growth strategy [25]. Financial Performance and Revenue - In 2024, the Group achieved total revenue of RMB 127.5 billion, with the investment property operation and property service segments generating income of RMB 26.7 billion, representing a year-on-year increase of 7.4% [39][42]. - The core net profit attributable to owners of the Company was approximately RMB 7.0 billion while maintaining a stable dividend payout ratio [39][42]. - The Group's property development revenue for 2024 was RMB 100.77 billion, with a gross profit margin of 6.1% and an average selling price of RMB 13,226 per square meter [57]. - Contracted sales reached RMB 101.12 billion in 2024, with an average selling price of RMB 14,194 per square meter, and significant contributions from various regions [63]. - The rental income, net of tax, from the Group's investment property operation business was RMB 13.52 billion in 2024, representing a 4.5% increase from the previous year [70]. - The gross profit margin for the investment property operation business was 75.0%, reflecting a decrease of 0.8% compared to the previous year [73]. - The Group's operational cash flow, including capital expenditures, exceeded RMB 6.0 billion for the year, supporting financial stability [43]. Corporate Governance and Management - The Company appointed Mr. Chen Xuping as the Chairman of the Board and Chief Executive Officer on October 28, 2022, which deviates from the corporate governance code requiring separation of these roles [165]. - The Board consists of four executive directors, one non-executive director, and four independent non-executive directors, indicating a strong independence element [164]. - The Company has adopted and complied with the applicable code provisions in the Corporate Governance Code, except for the deviation regarding the roles of Chairman and CEO [163]. - The Board has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to delegate specific responsibilities [175]. - The Company emphasizes the importance of corporate transparency and accountability in its governance practices [163]. - The Board will review the structure of the Chairman and CEO roles periodically to consider their separation when appropriate [165]. - The Company has mechanisms in place to ensure independent views and input are available to the Board [170]. Social Responsibility and ESG - The Group's cumulative public welfare donations exceeded RMB 2 billion, benefiting 2.34 million people nationwide [52]. - The Group's strategic focus on ESG governance includes ensuring 100% of new projects meet national green building standards [52]. - The Group's strategy for 2025 includes maintaining investment in core cities and focusing on inventory reduction while enhancing product offerings [127][131]. - The Company has implemented a diversity policy for the Board and employees, focusing on various aspects such as professional experience, cultural background, and gender [174].

Financial Performance - Revenue for 2024 reached RMB 82,517,994 thousand, a 39.1% increase from RMB 59,275,275 thousand in 2023[7] - Gross profit for 2024 was RMB 12,213,355 thousand, representing a gross margin of 14.8% compared to 14.6% in 2023[7] - Net profit attributable to shareholders for 2024 was RMB 2,898,680 thousand, up 28% from RMB 2,267,383 thousand in 2023[7] - The company reported a basic and diluted earnings per share of RMB 0.56 for 2024, compared to RMB 0.40 in 2023[7] - Revenue increased by approximately 39.21% from about RMB 59,275.28 million in 2023 to about RMB 82,517.99 million, driven by higher sales volume and prices of self-produced and purchased gold[29] - Gross profit rose by approximately 41.56% from about RMB 8,627.68 million in 2023 to about RMB 12,213.36 million, mainly due to increased gross profit from self-produced gold sales[29] - The company reported a net loss of approximately RMB 892.65 million in other income and losses, a 74.79% increase in losses compared to the previous year, mainly due to increased foreign exchange losses[29] - The company reported a significant increase in gold production, reaching 1.2 million ounces, which represents a 15% year-over-year growth[110] Assets and Liabilities - Total assets increased to RMB 161,010,475 thousand in 2024, a 19.3% rise from RMB 135,018,841 thousand in 2023[8] - Total liabilities rose to RMB 102,453,678 thousand, reflecting a 25.3% increase from RMB 81,721,127 thousand in 2023[8] - The company's cash balance was approximately RMB 9,931.63 million as of December 31, 2024, indicating sufficient operating capital for future financing needs[28] - The group reported total debt as of December 31, 2024, was approximately RMB 64,444.29 million, an increase from RMB 52,101.59 million in 2023, resulting in a debt-to-equity ratio of 110.05% compared to 97.76% in the previous year[67] Research and Development - Research and development expenses for 2024 were RMB 770,411 thousand, a 58.3% increase from RMB 487,195 thousand in 2023[7] - The company's R&D investment increased by 8.42% year-on-year in 2024, with 265 patent applications and 176 patents granted during the year[15] - The company invested RMB 8.63 billion in R&D for 2024, a year-on-year increase of 8.42%, and applied for 76 invention patents[58] Production and Operations - The company's gold production in 2024 reached 46.17 tons, accounting for 15.47% of the total gold production from domestic mining enterprises[21] - The company had 12 mines producing over 1 ton of gold annually in 2024, with 6 mines showing production growth exceeding 10%[21] - The company achieved a 17% reduction in equipment failure rates and a 95% equipment utilization rate through lifecycle management systems[60] - The company aims for a gold production target of no less than 50 tons in 2025, based on current economic conditions and market situations[128] Market and Sales - Revenue from mainland China (excluding Hong Kong) accounted for 88.88% of total revenue in 2024, down from 95.46% in 2023[79] - Revenue from Hong Kong and other overseas countries increased significantly to RMB 9,165,517, representing 11.11% of total revenue, up from 4.52% in 2023[79] - The total trading volume of gold on the Shanghai Gold Exchange in 2024 increased by 49.90% year-on-year, with a trading value of RMB 34.65 trillion, up 86.65%[19] Strategic Goals and Future Outlook - The company aims to enhance its market presence through strategic expansions and new product developments in the gold and non-ferrous metals sectors[11] - The company is focusing on "digital intelligence empowerment and dual improvement in quality and efficiency" as part of its strategic goals for 2024[21] - Future outlook includes potential market expansion and new product development in the mining sector[83] - The company is committed to improving operational efficiency and profitability through enhanced management practices and technological advancements[127] Environmental and Social Responsibility - The company received the "2024 Green Mine Outstanding Contribution Award" from the Zhongguancun Green Industry Alliance, enhancing its reputation in green development[16] - The company aims to enhance its green mining initiatives and has developed a carbon peak action plan to promote sustainable practices[27] - The group has made significant progress in environmental policies, focusing on sustainable development and reducing pollution while promoting green mining practices[172] Governance and Compliance - The company emphasizes compliance and governance through its experienced company secretaries[116] - The board of directors includes both executive and non-executive members, with a total of 10 directors and supervisors as of December 31, 2024[187] - All independent non-executive directors have confirmed their independence in accordance with the Hong Kong Listing Rules[194] Risks and Challenges - The company faces risks related to safety management, environmental protection, and product price fluctuations, which could impact its operational effectiveness[135][138][140] - The company has a significant exposure to foreign exchange risk, particularly with revenues in RMB and operations in Argentina generating income in USD, which may impact consolidated financial performance[142] - The company faces increased difficulty in resource acquisition due to intensified global competition and stricter national security and environmental policies[141]

Financial Performance - The company reported a total revenue of $1.2 billion for the fiscal year, representing a 15% increase year-over-year[3]. - The company expects revenue guidance for the next fiscal year to be between $1.4 billion and $1.5 billion, indicating a growth rate of approximately 17% to 25%[3]. - The company's total revenue for the year ended December 31, 2024, reached RMB 453.5 million, representing a 33.4% increase compared to RMB 339.9 million in 2023[22]. - Gross profit for the same period was approximately RMB 99.8 million, up 9.4% from RMB 91.2 million in 2023, with a gross margin of 22.0%, down 4.8 percentage points year-on-year[27]. - Net profit after tax decreased by 5.2% to RMB 37.9 million from RMB 40.0 million in 2023[22]. - Basic earnings per share for the year were RMB 6.51, compared to RMB 6.34 in 2023, while diluted earnings per share were RMB 6.48, up from RMB 6.31[22]. - The company reported a net profit margin of 12%, an increase from 10% in the previous year, reflecting improved operational efficiency[3]. Market Expansion and Strategy - User data showed an increase in active users to 5 million, up from 4 million in the previous year, marking a 25% growth[3]. - New product launches are anticipated to contribute an additional $200 million in revenue, with a focus on expanding the product line in the next quarter[3]. - Market expansion plans include entering three new regions, projected to increase market share by 10% over the next two years[3]. - The company has completed the acquisition of a competitor for $300 million, expected to enhance its market position significantly[3]. - A new strategic partnership has been formed with a leading tech firm, aimed at co-developing innovative solutions[3]. Operational Efficiency and Investments - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience and operational efficiency[3]. - The total assets of the company have grown to $2 billion, up from $1.8 billion, indicating a solid financial position[3]. - Administrative expenses decreased by 29.5% to RMB 38.2 million from RMB 54.2 million, attributed to digital transformation initiatives[40]. - Sales costs increased by 42.2% to RMB 353.7 million, higher than the revenue growth rate, due to expanded service quality investments and diversified business operations[36]. Human Resources and Management - As of December 31, 2024, the group had 1,235 employees, an increase from 970 employees as of December 31, 2023[70]. - Employee compensation for the reporting period was RMB 100.6 million, up from RMB 92.4 million for the year ended December 31, 2023, reflecting a focus on performance and market trends[70]. - The management team includes experienced individuals with extensive backgrounds in real estate development and management[86][87]. - The company is focused on strategic planning, business expansion, and operational management, with key personnel changes aimed at enhancing management efficiency[96][97]. Governance and Compliance - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with governance regulations[115]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of its operations[118]. - The company has adopted a dividend policy considering factors such as profitability, cash flow, financial condition, and capital needs, aiming to provide stable returns to shareholders while maintaining business operations[169]. - The company has established a comprehensive cash management policy and treasury policy to maintain overall financial security and a strong cash position[143]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing its ESG performance across governance, environmental protection, employment practices, operational norms, and community investment[171]. - The ESG report covers activities, challenges, and measures taken from January 1, 2024, to December 31, 2024[172]. - The group has set quantifiable environmental targets in response to national carbon neutrality goals, enhancing corporate reputation[179]. - The company aims to reduce total greenhouse gas emissions intensity by 3% by December 31, 2026, based on the benchmark year of December 31, 2021[191]. - The company has implemented multiple measures to ensure compliance with applicable regulations regarding greenhouse gas emissions and waste management[192]. Legal and Regulatory Matters - Chengdu Deshang has filed a civil lawsuit against Chengdu Huashang for a contract dispute, claiming RMB 4,173,850.42, with the court ordering Chengdu Huashang to pay RMB 1,000,000[76]. - The company has not reported any significant events affecting its subsidiaries post-reporting period[84]. - The company has appointed a legal advisor to provide insights on Chinese laws and regulations, ensuring compliance with the latest legal requirements[146].