Financial Performance - The company recorded revenue of approximately RMB 297.2 million for the fiscal year ending December 31, 2024, a decrease of about 1.9% compared to RMB 302.9 million for the previous fiscal year[17]. - Net profit attributable to shareholders was approximately RMB 21.0 million, representing an increase of about 10.1% compared to the previous fiscal year[7]. - Total cargo throughput increased to approximately 3,589 thousand tons, up about 7.3% from approximately 3,345 thousand tons in the previous year[11]. - Revenue from oil product sales was approximately RMB 221.7 million, a slight decrease from RMB 224.1 million in the previous fiscal year[13]. - For the year ended December 31, 2024, revenue from unloading services was approximately RMB 73.6 million, a decrease of 0.2% from RMB 73.8 million in the previous year[18]. - Revenue from the sale of oil products for the year ended December 31, 2024, was approximately RMB 221.7 million, down 1.1% from RMB 224.1 million in the previous year[19]. - Service revenue decreased by approximately 86.4% to about RMB 483,000 for the year ended December 31, 2024, compared to the previous year[19]. - Gross profit for the group decreased by approximately 3.6% to about RMB 47.5 million for the year ended December 31, 2024, from RMB 49.2 million in the previous year[21]. - The overall gross margin decreased from approximately 16.3% in the previous year to about 16.0% for the year ended December 31, 2024[22]. - Other income, net, was approximately RMB 5.6 million for the year ended December 31, 2024, compared to RMB 2.7 million in the previous year[23]. - The group recorded a net financial cost of approximately RMB 7,000 for the year ended December 31, 2024, down from a net financial income of approximately RMB 1.0 million in the previous year[24]. - The group’s profit attributable to owners was approximately RMB 21.0 million for the year ended December 31, 2024, an increase of about 10.1% from RMB 19.1 million in the previous year[28]. Business Development and Strategy - The company established a wholly-owned subsidiary in Indonesia to initiate new trade activities, starting with nickel ore trading and planning to expand into mining contracting and other minerals[14]. - The company plans to enhance its core business while actively seeking new business development opportunities and strategic investments to optimize performance and maximize shareholder value[8]. - The company aims to diversify its business portfolio and enhance future profitability through new business activities in Indonesia[7]. - The company will continue to respond to the growing demand for health management due to an aging population, aligning with the health industry trends[8]. - The company will focus on expanding its customer base, optimizing cost management, and strengthening customer relationships in cargo handling and supporting services[45]. - In the sales of oil products, the company plans to expand its market coverage and allocate additional resources to enhance and develop this business area[45]. - The company will remain vigilant and adaptable to emerging business and investment opportunities to further diversify its business portfolio[46]. Shareholder Information - The board proposed a final dividend of RMB 0.05 per ordinary share to reward shareholders for their continued support[8]. - The board has proposed a final dividend of RMB 0.05 per share for the year ending December 31, 2024, amounting to RMB 30 million based on 600 million shares issued[39]. - The final dividend will be paid in Hong Kong dollars, calculated at an average exchange rate of approximately 1.083 HKD to 1 RMB as published by the People's Bank of China[39]. - The annual general meeting is scheduled for June 3, 2025, with a notice to be published on the company's website and the disclosure website[41]. - The company will suspend the registration of share transfers from May 28, 2025, to June 3, 2025, to determine the list of shareholders eligible to attend the annual general meeting[42]. Corporate Governance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[72]. - The company has complied with the corporate governance code, except for provisions C.2.1 and D.2.5, which relate to the separation of roles between the chairman and CEO, and the establishment of an internal audit function[67][68]. - All directors have participated in ongoing professional development to enhance their knowledge and skills, ensuring informed contributions to the board[77]. - The company has engaged external consultants to conduct internal reviews as part of its risk management and internal control measures[68]. - The board is responsible for leading and controlling the company, reviewing business performance, and approving major financing and investment proposals[71]. - The company has established a formal arrangement for financial reporting and internal control principles to comply with listing rules and relevant laws[68]. - The independent non-executive directors have confirmed their independence and are expected to provide independent judgment based on their expertise[75]. - The company has implemented a code of conduct for directors' securities trading, ensuring compliance with the standards set forth in the listing rules[69]. - The board will regularly review the necessity of establishing an internal audit function and may form an internal audit team if needed[68]. - The company has arranged adequate insurance coverage for directors against legal actions related to their responsibilities[75]. - The board held a total of six meetings and one shareholders' meeting during the reporting year[80]. - All board members received complete, sufficient, and timely information to fulfill their duties[83]. - The remuneration committee held two meetings during the reporting year[87]. - The remuneration committee is responsible for reviewing and approving management's compensation proposals based on performance and market conditions[86]. - The nomination committee held one meeting during the reporting year[94]. - The nomination committee's main responsibilities include reviewing the board's structure, size, and composition[93]. - The company has established three defined committees: the remuneration committee, the nomination committee, and the audit committee[84]. - The remuneration committee evaluated the basic salary of directors for 2024 and the bonuses for executive directors for 2023[91]. - The attendance record for board meetings shows that all directors attended at least 6 out of 6 meetings[83]. - The company ensures that board members can seek independent professional advice at the company's expense when necessary[83]. - The Audit Committee held three meetings during the reporting year to discuss and approve audit strategies, annual performance, and interim results[104]. - The Audit Committee reviewed the financial statements for the year ending December 31, 2023, and proposed approval to the Board[105]. - The Audit Committee monitored the effectiveness of the company's financial reporting procedures and risk management systems[105]. - The company’s board members, including all non-executive directors, have service agreements effective from June 1, 2022, for a term of three years[107]. - The company’s board diversity policy considers various factors including professional experience, gender, age, and cultural background[102]. - The Nomination Committee will monitor and review the nomination policy to ensure its effectiveness[103]. - Independent non-executive director candidates must meet the independence standards set out in the listing rules[100]. - The company’s board members are required to retire at least once every three years, with one-third of directors retiring at each annual general meeting[108]. - The company’s external auditors' reappointment and remuneration will be reviewed for independence and objectivity[105]. - The company will hold its annual general meeting on June 12, 2024, where certain directors will retire and be eligible for re-election[109]. - The board consists of 7 members, with 5 males and 2 females, achieving a gender diversity target of at least 10% for the year[112]. - The company has engaged PwC as the external auditor for the year ending December 31, 2024, with audit fees of approximately RMB 887,000 and non-audit fees of RMB 19,000[114]. - The board has implemented effective risk management and internal control systems, ensuring compliance with corporate governance codes for the year ending December 31, 2024[116]. - The company aims to provide equal opportunities for all shareholders to exercise their rights and participate in company activities[121]. - Shareholders can communicate with the board through the company secretary regarding inquiries and proposals for upcoming meetings[122]. - The company has established policies to protect assets from misuse and ensure reliable financial reporting[116]. - The nomination committee will consider diversity factors when recommending candidates for board appointments[112]. - The board will review the effectiveness of its diversity policy annually and make necessary recommendations for amendments[111]. - The company has maintained a workforce gender diversity of approximately 83% male and 17% female[112]. Environmental, Social, and Governance (ESG) Initiatives - The board of directors is responsible for leading and supervising environmental, social, and governance (ESG) matters, including the assessment of related risks[134]. - The company has established an ESG working group to enhance the effectiveness of sustainable development governance[134]. - The company has adhered to all "comply or explain" provisions of the ESG reporting guidelines during the reporting year[127]. - The company engages with stakeholders through various channels, including meetings, annual performance evaluations, and shareholder meetings[136]. - The company aims to provide employment opportunities in the communities where it operates[130]. - The company emphasizes the importance of maintaining a stable business while focusing on social and environmental aspects[132]. - The company has conducted a materiality assessment to identify significant environmental and social issues impacting stakeholders[128]. - The company ensures compliance with all applicable laws, regulations, and standards, preparing for stricter regulations[133]. - The group reported a total greenhouse gas emission of 2,671.12 tons of CO2 equivalent, with a density of 0.74 tons of CO2 equivalent per thousand tons of total cargo throughput[148]. - Nitrogen oxides emissions increased to 20.65 kg in 2024 from 19.65 kg in 2023, while sulfur oxides emissions rose to 7.13 kg from 6.55 kg[147]. - The group generated 0.2 tons of hazardous waste, maintaining the same level as in 2023, with a density of 0.05 kg per thousand tons of total cargo throughput[152]. - The group has implemented measures to reduce emissions, including the purchase and leasing of new electric vehicles since 2020, aiming to replace traditional fuel vehicles every five years[156]. - The group has installed 20 water spray nozzles at the terminal to suppress dust, with cleaning of transport routes occurring at least once a week[156]. - The group’s operations did not report any significant violations related to air and greenhouse gas emissions during the reporting year[142]. - The group’s total emissions from fixed source fuel combustion accounted for 56% of total emissions, with liquefied petroleum gas contributing 11.66 tons[149]. - The group’s indirect emissions from purchased electricity accounted for 42% of total emissions, amounting to 1,115.88 tons in 2024[149]. - The group has engaged qualified professionals for regular environmental assessments to ensure compliance with standards and regulations[143]. - The group encourages stakeholder feedback on its environmental, social, and governance policies and performance[141]. - The group aims to reduce greenhouse gas emissions per thousand tons of total cargo throughput by 3% annually over the next 10 years, with a current emission density of 0.74 tons CO2 equivalent per thousand tons, up from 0.57 tons in the previous reporting period[158]. - The total waste generation density for the group is currently 0.05 kg per thousand tons of total cargo throughput, with a target to reduce this by 3% over the next 10 years[163]. - The total energy consumption for the group's operations is 6,397,405 kWh, with an energy density of 1,783 kWh per thousand tons of total cargo throughput, an increase from 1,747 kWh in the previous year[167]. - The total water consumption for the reporting year is 117,034 cubic meters, with a density of 32.61 cubic meters per thousand tons of total cargo throughput, representing a 9.8% decrease from the previous reporting period[168]. - The group has implemented measures to ensure existing forklifts meet Euro IV or higher emission standards and is focusing on improving fuel efficiency through regular maintenance and driver training[171]. - The group has adopted a paperless office culture to reduce environmental impact and has implemented waste recycling and reduction initiatives[160]. - The group plans to monitor progress towards its environmental targets, including energy consumption density, which is set to decrease by 1% annually per thousand tons of total cargo throughput over the next five years[172]. - The group has successfully reduced the generation of non-hazardous waste, contributing to the overall decrease in waste production density[162]. - The group is committed to using cleaner fuels and recycling wastewater as part of its energy efficiency initiatives[164]. - The group has established a comprehensive waste management system, ensuring all hazardous waste is collected and reused by qualified entities[160]. - The group has implemented a water efficiency plan, including the onsite collection and treatment of wastewater for reuse, with a sedimentation tank operational at Tianyuan Terminal[173]. - In 2022, the group launched a cost-reduction and efficiency-enhancement plan, establishing water-saving measures for both domestic and production use[173]. - The group has not set specific targets for reducing water usage, as it is not deemed a significant issue for the company and stakeholders[173]. - The group has engaged external consultants to assess environmental risks associated with terminal operations, with regular reviews planned to further reduce overall environmental impact[175]. - Climate change poses various risks to the company, including supply chain disruptions and increased insurance costs, with physical risks categorized as medium level[178]. - The group has identified transitional risks related to the shift towards a low-carbon economy, which may increase operational costs due to stricter environmental regulations[180]. - The shipping industry faces pressure to significantly reduce sulfur emissions, with the group adopting measures to address identified transitional risks[180]. - The group anticipates a shift towards maritime transport for non-urgent cargo, benefiting terminal operators over the next 20 years[181]. - Emergency plans have been established to mitigate risks from extreme weather events, including insurance for physical losses caused by such events[182]. - The group is pursuing national support for energy-efficient equipment and tools to enhance production efficiency[183]. Human Resources and Employee Welfare - As of December 31, 2024, the total number of employees is 198, a decrease from 209 in 2023, with a turnover rate of 17%[185][187]. - The gender distribution of employees is 17% female and 83% male, with 89% classified as frontline and other staff[185]. - The company provided a total of 198 hours of training for 1,302 employees during the reporting year, with 100% of employees receiving training[198][199]. - There were no reported work-related fatalities or injuries requiring more than three days off in the reporting year[195]. - The company adheres to various labor laws and regulations, including the Labor Law of the People's Republic of China and the Employment Promotion Law[186][194]. - Employee benefits include basic social insurance and increased illness subsidies, ensuring competitive compensation to attract and retain talent[187]. - The company emphasizes equal opportunities in hiring, promotion, and training, with a formal complaint procedure in place to address discrimination[189]. - The average training hours per employee were not specified, but all employees received training[200]. - The company recognizes the importance of occupational health and safety, conducting annual health checks and risk assessments for employees[194]. - Communication initiatives, such as annual meetings and team-building activities, are implemented to enhance teamwork and operational efficiency[193].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 104,023,000, a decrease of 13.5% compared to RMB 120,205,000 in 2023[11]. - Gross profit for 2024 was RMB 45,578,000, down 17.3% from RMB 55,145,000 in the previous year, resulting in a gross margin of 43.8%[11]. - The company reported a net loss of RMB 75,510,000 for 2024, compared to a net loss of RMB 47,313,000 in 2023, reflecting a net loss margin of 72.6%[11]. - Cash and cash equivalents decreased by 36.9% to RMB 77,321,000 from RMB 122,620,000 in 2023[11]. - Total assets declined by 28.0% to RMB 208,808,000 from RMB 289,857,000 in the previous year[11]. - Revenue from the overall APM system solutions decreased by approximately 21.1% from RMB 48.7 million for the year ending December 31, 2023, to RMB 38.4 million for the year ending December 31, 2024[18]. - Revenue from software development services decreased by approximately 17.8% from RMB 51.0 million to RMB 41.9 million during the same period[19]. - Revenue from embedded hardware and standard APM software sales decreased by approximately 54.5% from RMB 5.5 million to RMB 2.5 million[21]. - Other income and gains decreased from approximately RMB 9.3 million to RMB 6.0 million, primarily due to reductions in government subsidies and bank interest income[23]. - Selling and distribution expenses decreased by approximately 21.2% from RMB 29.2 million to RMB 23.0 million[24]. - R&D costs decreased by approximately 17.0% from RMB 38.9 million to RMB 32.3 million[25]. - The company recorded a loss attributable to owners of approximately RMB 75.1 million for the year ending December 31, 2024, compared to a loss of RMB 47.2 million for the year ending December 31, 2023[28]. - The total equity of the company as of December 31, 2024, was approximately RMB 164.6 million, a decrease from RMB 242.1 million as of December 31, 2023[32]. - The company’s capital expenditure for the year ended December 31, 2024, was approximately RMB 4.2 million, down from RMB 18.8 million in 2023[36]. Business Strategy and Market Environment - The company is focusing on developing Central Bank Digital Currency (CBDC) products and enhancing Application Performance Management (APM) solutions, with plans to expand CBDC services globally[12][13]. - The economic environment has led to a cautious approach from clients regarding new investments, impacting contract signings and project delivery timelines[13]. - The company aims to convert discussions with local financial institutions into revenue-generating opportunities, despite current challenges in the macroeconomic landscape[12]. - The company is actively promoting its products to other telecommunications and broadcasting companies to increase project numbers and reduce reliance on one-time project revenues[45]. - The company is expanding its business to China's second and third largest telecommunications groups and the broadcasting industry, leveraging similar network architectures and technologies[44]. - The company is focusing on diversifying its customer base, including small and medium-sized enterprises, to effectively reduce risks associated with reliance on a single major customer[44]. - The company is increasing the proportion of recurring services in its projects to strengthen its revenue stability[45]. - The company is actively expanding its customer base, including small and medium enterprises and overseas markets, to mitigate seasonal impacts on its business[45]. Shareholder and Governance Matters - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with no final dividend for the year ending December 31, 2023[61]. - The company has established a dividend policy to distribute dividends semi-annually, subject to profitability and cash flow considerations[102]. - The major shareholder, International Business Digital Technology Group Limited, holds 479,110,000 shares, representing 62.88% of the total shares[91]. - The company confirms that at least 25% of its total issued share capital is held by the public as of the report date[97]. - The board of directors consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[120]. - The company is committed to high standards of corporate governance and has adhered to all relevant codes and principles during the reporting period[115]. - The independent non-executive directors have confirmed their independence in writing, ensuring compliance with Listing Rule 3.13[125]. - The company has established a shareholder communication policy to provide balanced and easily understandable information to shareholders[177]. - Shareholders can submit inquiries and concerns to the board in writing, ensuring their voices are heard[181]. Risk Management and Compliance - The company has mechanisms in place to ensure compliance with disclosure regulations regarding inside information[171]. - The board has a responsibility to ensure effective risk management and internal control systems, which have been reviewed annually[169]. - The company has engaged an independent external consultant for an internal control review, which has been completed as of the report date[169]. - The company has not experienced any significant labor disputes with employees during the fiscal year ending December 31, 2024, and maintains good relations with staff[98]. - The company has complied with relevant laws and regulations during the fiscal year ending December 31, 2024, including intellectual property laws[105]. Audit and Financial Reporting - The independent auditor, Ernst & Young, has issued an opinion that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[183]. - The audit committee assists the board in overseeing the financial reporting process of the group[194]. - The auditor's responsibility is to reasonably ensure that the consolidated financial statements are free from material misstatement due to fraud or error[195]. - The audit procedures include testing the aging of trade receivables and contract assets, as well as evaluating the expected credit loss rate considering historical cash collections and market conditions[190]. - The overall presentation, structure, and content of the consolidated financial statements, including disclosures, are assessed for fair representation of relevant transactions and events[197]. Employee and Diversity Initiatives - The company is considering implementing stock option plans to enhance employee loyalty and reduce turnover in its R&D department[44]. - The employee gender ratio in the workplace is approximately 2:8 (female to male) as of December 31, 2024, with efforts to create a diverse and supportive work environment[155]. - The company aims to improve gender diversity on the board, currently having one female director out of five, and is actively seeking suitable candidates[151]. - The Nomination Committee reviews the board's structure, size, composition, and diversity annually, ensuring the effectiveness of the diversity policy[149][154].

Financial Performance - Midea Group reported a revenue of RMB 300 billion for the fiscal year 2024, representing a year-on-year growth of 15%[3]. - The company achieved a net profit of RMB 25 billion, an increase of 10% compared to the previous year[3]. - Total revenue for 2024 reached RMB 409.084 billion, a 9.4% increase from RMB 373.710 billion in 2023[20]. - The net profit attributable to the company's owners for 2024 was RMB 38.539 billion, up 14.0% from RMB 33.722 billion in 2023[20]. - Operating cash flow for 2024 amounted to RMB 60.5 billion, indicating strong cash generation capabilities[26]. - The company's total assets increased to RMB 604.352 billion in 2024, up from RMB 486.036 billion in 2023, reflecting a growth of 24.3%[20]. - The total liabilities decreased to RMB 376.685 billion in 2024 from RMB 311.738 billion in 2023, a reduction of 19.5%[20]. - The company reported a gross margin of 35%, maintaining its profitability despite rising raw material costs[3]. - The company reported an operating profit of RMB 46.817 billion for 2024, compared to RMB 41.886 billion in 2023, reflecting a solid performance in profitability[174]. Market Expansion and Strategy - Midea Group plans to invest RMB 5 billion in research and development for new technologies and products in the next fiscal year[3]. - The company aims to expand its market presence in Southeast Asia, targeting a 30% increase in sales in that region[3]. - Midea Group's future guidance projects a revenue growth of 12% for the next fiscal year, driven by new product launches and market expansion[3]. - Midea aims to enhance its overseas OBM (Original Brand Manufacturer) strategy, focusing on expanding its overseas manufacturing layout and improving delivery capabilities[28]. - The company aims to transform its DTC model in the Chinese market, focusing on user-centric innovation and online-offline integration[34]. - Midea's overseas business experienced strong growth despite challenges such as macroeconomic fluctuations and high inflation, with ongoing expansion of overseas manufacturing and the "China supply to the world + regional supply" model[82]. - The company is committed to expanding its overseas business by identifying new markets and optimizing operations in key countries, while strengthening brand marketing and customer management[164]. Research and Development - Midea Group plans to enhance its investment in product R&D and new technology to meet diverse consumer needs[35]. - Midea has established 37 national-level green factories and 6 world-class lighthouse factories, showcasing its leadership in smart manufacturing and digitalization[17]. - Midea's R&D investment from 2022 to 2024 exceeded RMB 43 billion, with over RMB 16 billion allocated in 2024, marking a year-on-year increase of over 10%[145]. - The company has established a comprehensive R&D system with 38 research centers across 12 countries, enhancing its global R&D capabilities[146]. - Midea's research team actively participated in international AI conferences, publishing multiple professional papers on cutting-edge research in embodied intelligence and multimodal large models[101]. - The company has established 16 national-level innovation platforms and 82 provincial-level innovation platforms, demonstrating a strong commitment to core technology research and development[72]. Product Development and Innovation - Midea has launched a new line of energy-efficient appliances, expecting to capture a 15% market share within the first year[3]. - The company introduced a new embedded refrigerator with a capacity exceeding 400 liters, designed for optimal space utilization and innovative food storage solutions[60]. - The new heating pump for cold climates in North America will utilize a modular design to reduce installation costs and achieve 100% heating performance at -15°C[53]. - Midea's new generation X11 floor washing machine features a unique floating scraping technology, achieving a 99% anti-tangle rate[69]. - The COLMO 990 series refrigerator features the industry's largest capacity and AI dynamic food recognition, enhancing food preservation and nutritional management[60]. - Midea's new cooking technologies, such as the rapid cooking pressure cooker, allow for meal preparation in as little as 3 minutes[68]. - The company is committed to exploring disruptive and differentiated product technologies to enhance competitiveness in the air conditioning market[53]. User Engagement and Digital Transformation - User data indicates that the active user base for Midea's smart home products has reached 50 million, up 20% from last year[3]. - Midea's registered users on the Meizhu APP exceeded 60 million, with IoT platform device connections surpassing 100 million[80]. - The average monthly active users of Midea's smart home applications increased by nearly 140% year-on-year, with over 4.4 million registered users[83]. - The introduction of 5G video customer service and AI diagnostics has significantly improved user service efficiency and satisfaction[81]. - Midea has increased R&D investment to enhance its digital agile innovation system, focusing on technology leadership and patent conversion[71]. - The company is focusing on sustainable development by innovating a closed-loop carbon asset model for recycling old appliances[81]. Awards and Recognition - Midea Group ranked 277th in the 2024 Fortune Global 500, marking its 9th consecutive year on the list[17]. - The company has been recognized in the 2024 Brand Finance rankings, placing 236th in global brand value and 40th among the most valuable tech brands[17]. - Midea has won 126 industrial design awards in 2024, including 36 Red Dot Awards and 47 iF Design Awards, accumulating over 900 international design awards[73]. - Midea's new energy and industrial technology received multiple awards for its innovative products, including the "Green High-Quality Thin Permanent Magnet Motor" winning the 2024 China Refrigeration Exhibition Gold Award[109]. Supply Chain and Operational Efficiency - Midea's digital supply chain solutions aim to enhance transparency and efficiency across the entire logistics process[140]. - The company has implemented a series of stock repurchase plans since 2019, totaling over RMB 134 billion in cash dividends since its overall listing in 2013[142]. - The average order-to-delivery cycle in the domestic market has decreased from 21 days in 2021 to 12.5 days in 2023, significantly below the industry average[150]. - The company aims to achieve over 85% of orders delivered on the same or next day, with 98% of orders delivered within two days[141]. - The company has established a global sales network with 22 overseas R&D centers and 23 overseas production bases, capturing growth opportunities in international markets[152]. Challenges and Risks - The company is facing risks from macroeconomic fluctuations, which could impact sales of consumer appliances and industrial robots[169]. - The company is involved in a tax dispute in Brazil with a potential maximum loss of approximately RMB 661 million, with ongoing legal proceedings[199]. - The company operates globally and faces various foreign exchange risks due to transactions denominated in currencies other than the functional currencies of its subsidiaries[200].

Financial Performance - Total insurance service revenue for 2024 reached RMB 31,744.34 million, a 15.3% increase from RMB 27,521 million in 2023[6]. - Net profit attributable to shareholders for 2024 was RMB 603.46 million, down from RMB 4,077.86 million in 2023, primarily due to a one-time investment gain of RMB 3,784 million recognized in 2023[9]. - Basic earnings per share for 2024 were RMB 0.41, compared to RMB 2.77 in 2023[6]. - The total assets increased to RMB 45,284.58 million in 2024, up from RMB 42,863.61 million in 2023[6]. - The comprehensive solvency adequacy ratio for 2024 was 227%, a decrease from 240% in 2023[6]. - The combined loss ratio for 2024 was 58.3%, with a combined expense ratio of 38.6%, resulting in an underwriting profit of RMB 990 million[26]. - The company’s underwriting combined cost ratio was 96.9%, marking the fourth consecutive year of underwriting profitability, despite a 1.7 percentage point increase compared to the same period in 2023[26]. - The overall net profit for the group was RMB 6.034 billion, significantly influenced by improved performance in the insurance and technology sectors[32]. - The total investment income for the company reached RMB 1.335 billion in 2024, a significant increase of over 85.4% compared to RMB 720 million in 2023[83]. - The net profit for the year ending December 31, 2024, was approximately RMB 603 million, compared to RMB 3.84 billion for the year ending December 31, 2023, which included a one-time investment income of RMB 3.78 billion recognized after a subsidiary was no longer consolidated[111]. Premium Growth - Total premiums for 2024 exceeded RMB 33,417 million, reflecting a 13.3% growth from RMB 29,501 million in 2023[8]. - In 2024, the company achieved total premiums of RMB 33.417 billion, a year-on-year increase of 13.3%, and insurance service revenue of RMB 31.744 billion, up 15.3% year-on-year[26]. - Total premium for the health ecosystem reached RMB 10.338 billion, a year-on-year increase of 5.4%, serving over 130 million users[14]. - Digital lifestyle ecosystem total premium reached RMB 16.197 billion, a year-on-year increase of 28.9%[15]. - Total premium for the automotive ecosystem reached RMB 2.051 billion, a year-on-year increase of 29.8%, with new energy vehicle insurance premiums increasing by approximately 188.4%[15]. - Total premium for critical illness insurance reached approximately RMB 1.96 billion, growing by about 46% year-on-year[39]. - The health insurance flagship product "Zunxiang eSheng" generated total premiums of approximately RMB 4.66 billion, with an average user age of 39[37]. - The total premium for group insurance business reached RMB 637 million in 2024, representing a year-on-year growth of 6%[40]. Technology and Innovation - The core cloud insurance system "Wujieshan" issued 19.732 billion policies, with an automation rate of 99%[18]. - The company aims to embrace AI and promote its widespread application across all business scenarios[18]. - The technology output business achieved total revenue of RMB 0.956 billion, a year-on-year increase of 15.3%[19]. - The AI customer service system achieved an average accuracy rate of 98% in automatic speech recognition and over 90% in semantic recognition[59]. - The claim processing efficiency improved significantly, with the intelligent claim material identification pass rate reaching 90% and the fastest case closure time reduced to 15 seconds[60]. - The company has filed a total of 463 patent applications, including 168 overseas, and has been granted 103 patents, with 37 being overseas patents[55]. - The company is focused on technology output, helping clients in the insurance industry achieve digital transformation through new core insurance systems and digital solutions[62]. Market Position and Strategy - The company ranked eighth in total property insurance premiums in China, improving its position by one place[13]. - The company plans to continue its strategy of "technology-driven finance" to enhance insurance services and support the real economy[11]. - The company is focusing on new economic sectors such as green energy and digital economy, aiming to provide customized insurance solutions[10]. - The company aims to continue its "insurance + technology" dual-engine strategy, focusing on sustainable quality growth and enhancing brand building[88]. - The company plans to deepen its presence in the Hong Kong financial market, leveraging technology to drive fintech innovation and enhance user experience[88]. Risk Management and Governance - The company is focused on compliance and governance, with a dedicated Chief Compliance Officer and a robust board structure to oversee strategic investments[128][135]. - The company has implemented a risk management and internal control system, which has been reviewed for effectiveness as of December 31, 2024[199]. - The board confirmed the effectiveness of the internal control systems as of December 31, 2024[200]. - The company has established four committees to oversee specific aspects of its affairs, including the Audit and Consumer Protection Committee[165]. - The company emphasizes data analysis and risk management, with Yu Yang, an assistant to the general manager, holding a master's degree in artificial intelligence and extensive experience in data analysis[142]. Employee and Board Composition - The company has a strong board with members having diverse backgrounds in finance, law, and management, enhancing its strategic decision-making capabilities[131][135]. - The company has a total audit fee of RMB 11,974,000 and non-audit fees of RMB 4,490,000, bringing the total to RMB 16,464,000 for the year ending December 31, 2024[196]. - The company aims to maintain a minimum of 2 female members on the board, representing 18.18% of the total board composition[183]. - The company has a commitment to fostering female talent and providing long-term development opportunities for female employees[185]. - The gender distribution of employees is 1,005 females (41.96%) and 1,390 males (58.04%), totaling 2,395 employees[185].

Financial Performance - The Group's insurance revenue for the year amounted to HK$2,799 million, representing an increase of 6.6% compared to HK$2,625 million for the year 2023[16]. - The consolidated profit for the Group was HK$778 million, compared to HK$713 million for the year 2023[16]. - The net profit attributable to equity shareholders of the Company was HK$471 million, an increase from HK$397 million for the year 2023[16]. - The improvement in net profit was mainly due to better overall operating performance, including improved claims experience and effective expense control[16]. - Net operating income increased by 14% to HK$1,134 million in 2024 from HK$991 million in 2023[20]. - Net profit attributable to owners rose by 19% to HK$471 million in 2024 compared to HK$397 million in 2023[21]. - Basic earnings per share increased by 20% to HK$0.12 in 2024 from HK$0.10 in 2023[20]. - Total assets grew by 7% to HK$96,042 million as of December 31, 2024, up from HK$90,149 million in 2023[20]. - The total comprehensive equity increased by 1% to HK$23,913 million at the end of 2024 from HK$23,629 million at the end of 2023[26]. - The profit before taxation for 2024 is HK$1,098 million, a slight increase of 2% from HK$1,078 million in 2023[68]. - Investment return for 2024 rose by 18% to HK$3,706 million from HK$3,133 million in 2023[68]. - The net finance expenses from insurance contracts increased by 35% to HK$3,098 million in 2024 from HK$2,294 million in 2023[68]. - The insurance service result rose to HK$580 million, reflecting a 23% increase from HK$471 million in 2023[79]. - Interest income and other revenues reached HK$2,985 million, an 8% increase from HK$2,759 million in 2023[81]. - The total liabilities increased to HK$76,226 million in 2024, compared to HK$70,049 million in 2023, marking an 8.5% rise[91]. - The net assets decreased to HK$15,838 million in 2024 from HK$16,344 million in 2023, a decline of 3.1%[91]. Revenue Sources and Business Operations - The Group's main sources of revenue include life insurance premium income and various financial services, with no material change in core business activities compared to 2023[15]. - The total premium and fee income for 2024 reached HK$12,383 million, a 4% increase from HK$11,923 million in 2023[40]. - The total premium and fee income from Hong Kong was HK$9,343 million (75% of total), while Macao contributed HK$3,040 million (25%) in 2024[46]. - The tied agency distribution channel generated HK$6,018 million in total premium and fee income, an increase from HK$5,979 million in 2023[48]. - Regular premium first-year income was HK$2,512 million in 2024, compared to HK$2,360 million in 2023[52]. - The insurance division's flagship products include a flexible savings plan, a critical illness protection series, a flexible universal life insurance plan, and a lifetime annuity income plan[35]. - The company continues to enhance its product offerings and diversify its product range to meet various customer needs[35]. - The company launched the "Prosperous Infinity Saver" savings plan at the beginning of 2024, enhancing its product offerings[31]. Market Environment and Strategic Focus - The economic environment faced challenges such as trade protectionism and rising prices, but the Group effectively implemented its business plan to enhance shareholder value[14]. - The Group actively sought suitable business opportunities to expand revenue sources under current market conditions[14]. - The central government's support helped Hong Kong attract more tourists and promote cross-border financial activities, contributing to moderate economic growth[14]. - The Group's financial performance reflects a strategic focus on improving operational efficiency and managing expenses effectively[16]. - The Group's strategic focus continues to be on expanding its insurance business, aiming to enhance market scale and influence[117]. - The insurance division will undergo restructuring initiatives to enhance financial performance amid challenging market conditions[113]. Employee and Agent Statistics - The tied agency force consisted of approximately 2,979 agents in Hong Kong and Macao as of December 31, 2024, down from 3,050 in 2023[32]. - The number of exclusive agents in Hong Kong and Macao decreased to approximately 2,979 in 2024 from 3,050 in 2023[36]. - The insurance division employed approximately 545 staff in 2024, up from 518 in 2023[36]. - The number of employees in Hong Kong increased to 508 in 2024 from 478 in 2023, while the number of tied agents decreased slightly from 2,172 to 2,155[108]. - The Group employed 626 full-time employees as of December 31, 2024, an increase from 611 in 2023[143]. Investment and Financial Management - The Group's investment pledged to a broker for securities margin trading was HK$381.305 million as of December 31, 2024[139]. - The Group's technical reserves guaranteed to the Autoridade Monetaria de Macau amounted to HK$20,188.874 million as of December 31, 2024, compared to HK$18,717.825 million in 2023[139]. - The Group's outstanding bank borrowings as of December 31, 2024, were HK$1,385 million, slightly down from HK$1,399 million in 2023[118]. - The gearing ratio as of December 31, 2024, was 16.16%, up from 15.61% in 2023[118]. - The expected timeline for fully utilizing the remaining proceeds is on or before December 31, 2027[159]. - The company aims to generate stable investment returns through its treasury management model, primarily utilizing proceeds for general working capital and principal investments[162]. Embedded Value and New Business Metrics - The embedded value of the insurance business as of December 31, 2024, is HK$21,089 million, representing a 2% increase from HK$20,718 million as of December 31, 2023[57][58]. - The adjusted net worth (ANW) increased by 68% to HK$16,939 million in 2024 from HK$10,108 million in 2023[60]. - The value of in-force (VIF) business decreased by 61% to HK$4,150 million in 2024 from HK$10,610 million in 2023[60]. - The new business value for the year ended December 31, 2024, is HK$685 million, down from HK$1,009 million in the previous year, primarily due to changes in product mix[61][63]. - The annual premium equivalent (APE) for 2024 is HK$2,736 million, remaining stable compared to the previous year, with a 28.3% growth in the agent channel[61][63]. - The New Business Value before cost of capital for the past 12 months as of December 31, 2024, is HK$833 million, down from HK$1,232 million in 2023, a decrease of approximately 32.4%[199]. - The New Business Value after cost of capital is HK$685 million in 2024, compared to HK$1,009 million in 2023, reflecting a decline of approximately 32.0%[199]. Risk Management and Compliance - The Group's insurance risk management includes pre-launch reviews for new products to align with the Group's risk appetite[126]. - Management is enhancing business processes and integrating financial technology to create value for all customers[121]. - PricewaterhouseCoopers Limited has been appointed to review the methodology and assumptions used in the preparation of the Embedded Value as of December 31, 2024[190]. - The calculations of Embedded Value and New Business Value are based on certain assumptions regarding future experience, which may lead to significant differences in actual results[191].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 71,344,000, an increase of approximately 19.4% compared to RMB 59,742,000 in 2023[6]. - The net profit for the same period was RMB 4,523,000, a decrease of approximately 58.9% from RMB 11,019,000 in 2023[6]. - The total assets as of December 31, 2024, amounted to RMB 1,135,179,000, a slight increase from RMB 1,131,801,000 in 2023[6]. - The total liabilities decreased to RMB 24,900,000 in 2024 from RMB 27,206,000 in 2023, indicating improved financial stability[6]. - The revenue for the reporting year was approximately RMB 71.3 million, an increase of about 19% compared to RMB 59.7 million in the previous year, primarily due to increased sales from the art and asset sales business and interest income from the pawn business[23]. - Revenue from the art and asset sales business was approximately RMB 54.5 million, a growth of about 28% from RMB 42.7 million in the previous year[22]. - The loss from the art and asset auction business was approximately RMB 0.4 million, compared to a profit of RMB 1.2 million in the same period last year, marking a significant decline[21]. - Other income decreased by approximately 38% to about RMB 1.3 million from RMB 2.1 million in the previous year, mainly due to reduced bank interest income[24]. - The cost of goods sold was approximately RMB 48.7 million, up from RMB 35.4 million in the previous year, reflecting the purchase cost of art sold during the reporting year[26]. - The pre-tax profit decreased by approximately 50% to about RMB 8.2 million from RMB 16.5 million in the previous year, primarily due to reduced profits from the art and asset pawn and sales businesses[33]. - Total comprehensive income for the year was approximately RMB 4.4 million, a decrease of about 60% from RMB 10.9 million in the previous year, mainly due to reduced profits[35]. Loan and Financing Activities - The company issued new loans totaling RMB 1,023,600,000 in 2024, up from RMB 702,400,000 in 2023, representing an increase of approximately 45.7%[18]. - The average initial loan term for new loans was 66 days in 2024, compared to 61 days in 2023[18]. - The company maintained a new loan renewal rate of 20% for new loans in 2024, down from 40% in 2023[18]. - The company is maintaining a cautious strategy in granting pawn loans to new clients, focusing on reducing credit risk[56]. Business Strategy and Development - The company is actively exploring new business models and strategies to enhance participation in the auction business despite facing challenges[11]. - The company aims to establish strategic partnerships in the art sector to leverage growth potential[11]. - The company plans to enhance auction strategies and increase regional and multi-channel marketing efforts to improve business performance[55]. - The company aims to establish strategic partnerships with galleries, artists, and cultural institutions to enhance market position and credibility[57]. - Future economic conditions are expected to remain challenging due to ongoing inflation and geopolitical tensions, requiring the company to remain flexible and responsive[54]. Governance and Compliance - The company has established a new committee to oversee compliance and regulatory matters, enhancing governance practices[63]. - The independent directors have been actively involved in strategic decision-making, contributing to a more robust governance framework[63]. - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting year[75]. - The board has established mechanisms to ensure independent opinions are obtained, including providing sufficient resources for directors to fulfill their duties[81]. - The company is committed to implementing good corporate governance and has established policies and procedures in line with the Hong Kong Stock Exchange's listing rules[75]. - The company has engaged an external auditor, Tianjian DeYang CPA Limited, with no changes in the past three years[105]. Risk Management - The company faces various risks, including market risk primarily from the Chinese economy and compliance risk with local and overseas laws[119][120]. - The company has implemented internal controls to monitor significant risks and ensure they do not adversely affect business performance[118]. - The risk management committee did not hold any meetings during the reporting year but participated in discussions and reviews of the risk management and internal control systems[95]. - All departments conduct regular internal control assessments to identify potential risks affecting the group's business[100]. Shareholder and Equity Information - Major shareholders include Hanxin Investment Limited, holding approximately 59.64% of the shares, and other entities with similar stakes[151]. - The largest customer accounted for approximately 25.8% of the group's revenue for the year ending December 31, 2024, up from 19.4% in 2023[157]. - The top five customers collectively represented about 64.2% of the group's revenue, slightly down from 65.1% in 2023[157]. - The largest supplier accounted for approximately 22.0% of the group's total procurement, a decrease from 36.7% in 2023[157]. - The top five suppliers made up about 51.4% of the group's total procurement, significantly down from 95.2% in 2023[157]. Employee and Diversity Initiatives - Employee costs increased by approximately 69% to about RMB 5.9 million from RMB 3.5 million in the previous year, due to the hiring of additional staff to strengthen business operations[28]. - The board consists of 2 female directors and 4 male directors, achieving gender diversity at the board level[84]. - As of December 31, 2024, the gender distribution among employees is 48% female and 52% male[84]. - The company has implemented measures to promote gender diversity at all levels, including the board and management[84]. - The company will ensure gender diversity is considered in the recruitment of senior staff and provide resources for training and career development[84]. Contractual Arrangements and Compliance - The company has established contractual arrangements to effectively control its operations in China, ensuring compliance with local laws[170]. - Legal opinions confirm that the contractual arrangements are valid, binding, and enforceable under current Chinese law[171]. - The structural contracts for He Xin Pawnshop and He Xin Auction were established on April 15, 2016, with supplementary agreements made on October 24, 2016[177][179]. - The company is required to provide operational and financial information to the foreign-invested enterprise as part of its commitments[187]. - The equity holders must notify the foreign-invested enterprise of any potential litigation or administrative proceedings involving He Xin Pawn's assets or business[187].

Financial Performance - Revenue declined by 7.5% to RMB 8,344.9 million in 2024 compared to RMB 9,020.9 million in 2023[6] - Gross profit decreased by 19.8% to RMB 1,973.8 million in 2024 from RMB 2,460.0 million in 2023[6] - Net profit attributable to shareholders increased by 48.6% to RMB 626.2 million in 2024 from RMB 421.3 million in 2023[6] - Basic earnings per share rose by 49.4% to 11.5 cents in 2024 compared to 7.7 cents in 2023[6] - The company reported a slight decline in earnings before interest, taxes, depreciation, and amortization (EBITDA) to RMB 2,643.3 million in 2024, down from RMB 2,948.6 million in 2023[44] - Revenue decreased by 7.5% from RMB 9,020,900,000 in 2023 to RMB 8,344,900,000 in 2024, with cement sales volume dropping by 3.0% to approximately 19,200,000 tons[74] - Gross profit decreased by RMB 486,200,000 or 19.8%, from RMB 2,460,000,000 in 2023 to RMB 1,973,800,000 in 2024, with gross margin dropping from 27.3% to 23.7%[78] Sales and Production - Total sales volume of cement and clinker decreased by 2.4% to 20.0 million tons in 2024 from 20.5 million tons in 2023[6] - Cement production capacity reached 39.3 million tons by the end of 2024, with significant expansions planned in the coming years[23] - In 2024, the sales volume in Shaanxi decreased by approximately 6.4% to about 13,200,000 tons, with an average selling price dropping by about 9.7% to approximately RMB 243 per ton[48] - The average selling price in Xinjiang slightly decreased to approximately RMB 400 per ton, with sales volume decreasing by about 10.7% to approximately 1,750,000 tons[49] - In Guizhou, the total sales volume contributed approximately 790,000 tons, a decrease of about 24.8% from 1,050,000 tons in 2023, while the average selling price remained stable at approximately RMB 397 per ton[49] - The Mozambique plant's sales volume increased by 2.0% to 1,520,000 tons, with the average selling price rising to approximately RMB 677 per ton[50] - The DRC plant achieved a sales volume of 720,000 tons, with an average selling price of approximately RMB 987 per ton, a decrease from RMB 1,272 per ton in 2023[51] - In Ethiopia, the average selling price was approximately RMB 681 per ton, with sales volume recorded at 950,000 tons, down from 1,360,000 tons in 2023[52] Cost Management and Efficiency - The company successfully implemented efficiency improvements and cost control measures, keeping costs stable[18] - The company maintained strong cash flow, with EBITDA remaining stable at approximately RMB 2,900,000,000 in 2023 and RMB 2,600,000,000 in 2024[30] - The total sales cost reduced by 2.9% from RMB 6,560,900,000 in 2023 to RMB 6,371,200,000 in 2024, aided by lower coal costs[75] - Average coal cost per ton decreased by approximately 17.0% from RMB 878 to RMB 729 due to stable local supply[75] - Administrative expenses decreased by 11.8% from RMB 796,400,000 in 2023 to RMB 702,300,000 in 2024, reflecting enhanced cost control measures[80] - The company plans to implement multiple cost control measures in 2025 to better manage sales costs and administrative expenses[72] Environmental Initiatives - The company has engaged in hazardous and municipal waste incineration as part of its environmental initiatives[19] - The company's production facilities utilize new dry production lines, achieving over 50% installation rate of waste heat recovery systems, reducing electricity consumption by approximately 30% and CO2 emissions by about 22,000 tons per million tons of cement produced annually[19] - The nitrogen oxide emissions per ton of clinker have been reduced by approximately 60% due to the installation of De-NOx equipment in all plants located in China[19] - The company has increased investment in environmental protection, achieving pollutant discharge concentrations significantly below national standards[38] - The company has completed renovations to meet new particulate matter emission standards across all its plants[162] - The company is committed to developing green limestone mining projects, including soil restoration and mine greening, to comply with environmental policies[162] Market Expansion and Strategy - The company is focusing on meeting the development needs in regions like Shaanxi, Xinjiang, and Guizhou, driven by government policies[10] - The company has established a presence in international markets, including Uzbekistan and Africa, to meet the growing demand for cement products[27] - The company is focused on high-quality development in Africa as a key strategy for 2025 and beyond[25] - The company plans to enhance operational quality in overseas projects and explore diversified development models[42] - The company is focusing on expanding its overseas business and optimizing market layout, particularly in regions like Mozambique and the Democratic Republic of Congo, where demand is projected to grow[67] Governance and Corporate Structure - The company has established a governance framework to maintain high standards of corporate governance, ensuring transparency and accountability to shareholders[98] - The board consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring compliance with listing rules regarding independence[101] - The company has a policy for the appointment and remuneration of external auditors, ensuring their independence and effectiveness[112] - The company has established a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially[124] - The company is committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its corporate governance functions[119] Employee and Community Engagement - The company recognizes employees as its most valuable asset and implements comprehensive performance evaluation and stock option plans to reward outstanding performance[165] - Charitable donations for the year ending December 31, 2024, reached RMB 6,600,000, a decrease from RMB 21,100,000 in 2023[179] - The group employed a total of 9,504 full-time employees as of December 31, 2024, compared to 8,297 employees as of December 31, 2023[94]

Economic Outlook - In 2024, the global economy is expected to grow by 3.2%, lower than the 3.3% growth in 2023 and the 3.7% average growth in the first two decades of the 21st century[8] - China's GDP is projected to grow by 5.0% in 2024, contributing approximately 30% to global economic growth[8] - The average price of Brent crude oil in 2023 was $82.6 per barrel, a decrease of 18.3% compared to 2022, while the average price in 2024 is expected to be $80.8 per barrel, down 2.3% year-on-year[8] - The prices of most chemical products have declined throughout 2024, particularly in the second half of the year[8] Financial Performance - In 2024, the company achieved revenue of RMB 444.2 million, a decrease of 18.4% compared to RMB 544.1 million in 2023[10] - Gross profit for 2024 was RMB 143.0 million, down 25.3% from RMB 191.5 million in 2023[10] - Net profit for the year was RMB 10.3 million, a significant decline of 81.3% from RMB 55.2 million in 2023[10] - The company reported a 104.7% increase in revenue from sulfur recovery and volatile organic compound incineration equipment, rising from RMB 77.2 million in 2023 to RMB 158.1 million in 2024[16] - Revenue from catalytic cracking equipment decreased from RMB 319.3 million in 2023 to RMB 194.4 million in 2024, primarily due to delays in sales orders[17] - Revenue from process burners fell by 43.5%, from RMB 114.3 million in 2023 to RMB 64.6 million in 2024, due to the absence of large-scale orders[18] - Revenue from heat exchangers decreased by 18.8%, from RMB 33.4 million in 2023 to RMB 27.1 million in 2024, influenced by reduced market demand[19] Cost and Expenses - The company's sales cost decreased from RMB 352.6 million for the year ended December 31, 2023, to RMB 301.2 million for the year ended December 31, 2024, reflecting a reduction of approximately 14.6% due to fluctuations in market demand[21] - Gross profit fell by 25.3% from RMB 191.5 million in 2023 to RMB 143.0 million in 2024, with the gross margin decreasing by 3.0 percentage points to 32.2% due to intensified market competition[22] - Selling expenses rose from RMB 24.8 million in 2023 to RMB 27.4 million in 2024, attributed to an increase in the number of sales staff and higher salary levels[24] - General and administrative expenses increased from RMB 41.3 million in 2023 to RMB 50.4 million in 2024, mainly due to a rise in the number of management and administrative staff[25] - R&D expenses decreased from RMB 38.0 million in 2023 to RMB 31.6 million in 2024, primarily due to some engineers being reassigned to overseas sales contracts[26] Liquidity and Financial Position - Cash and cash equivalents amounted to RMB 129.9 million as of December 31, 2024, with the company relying on operating cash flow for its liquidity needs[31] - Total bank and other borrowings decreased by 13.7% from RMB 121.8 million as of December 31, 2023, to RMB 105.2 million as of December 31, 2024, due to repayments of bank loans[34] - The current ratio as of December 31, 2024, was 1.8, up from 1.6 as of December 31, 2023, indicating improved liquidity[36] - As of December 31, 2024, the company's debt-to-equity ratio decreased to 29.4% from 42.8% as of December 31, 2023, primarily due to the repayment of bank and other borrowings[37] - The company had no mortgaged assets as of December 31, 2024[38] Corporate Strategy and Development - The company plans to enhance its design and R&D capabilities to meet customer demands for energy conservation and emissions reduction[13] - A joint venture was established with Shanghai Lanrui Environmental Technology Co., Ltd. to focus on phosphorus pollution control and related waste treatment technologies[13] - The company is expanding its international market presence, having established an office in Dubai to enhance customer network and project opportunities in the Middle East[14] - The company plans to establish a joint venture with Shanghai Lanrui Environmental Energy Technology Co., Ltd. and Huangshan Ecological Environmental Group Co., Ltd., with an 80% stake in the joint venture[41] - The expected timeline for utilizing the net proceeds includes completion of production capacity expansion by June 30, 2026, and enhancement of R&D capabilities by December 31, 2025[48] Management and Governance - The company appointed Mr. Shao Song as Executive Director and Senior Vice President on March 15, 2023, responsible for sales, R&D, and major strategic decisions[54] - Ms. Wu Rui was appointed as Executive Director and Vice President (Administration) on March 15, 2023, overseeing corporate administration and strategic decision-making[55] - The company has a strong management team with over 20 years of experience in the industry, ensuring effective operational oversight and strategic direction[66] - The management team emphasizes the importance of independent oversight, with several independent non-executive directors appointed to provide independent judgment[59][60] - The company aims to leverage its experienced leadership to drive growth and improve financial performance in the coming years[67] Shareholder and Dividend Information - The company declared a final dividend of RMB 20,000,000, with a proposed dividend of RMB 0.04 per share, subject to shareholder approval[72] - For the fiscal year ending December 31, 2024, the company reported total available reserves of approximately RMB 865 million, of which RMB 200 million is proposed for the final dividend[79] - Revenue from the largest customer accounted for 23.9% of total revenue, while the top five customers contributed 52.3% of total revenue for the fiscal year ending December 31, 2024[89] Compliance and Risk Management - The company’s financial performance and position are subject to various risks, including reliance on government policies and the ability to secure new contracts[73] - The company has not violated any loan agreement terms that significantly impact its operations during the fiscal year ending December 31, 2024[84] - The company has established a comprehensive risk management and internal control system, including internal control environment, risk assessment, control activities, information communication, and monitoring mechanisms[181] - The board confirmed the effectiveness of the risk management and internal control systems, which aim to manage risks without completely eliminating them[180] Corporate Social Responsibility - The company made charitable donations of RMB 0.2 million during the fiscal year ending December 31, 2024, compared to none in the previous year[87] - The company has implemented anti-corruption measures and provides regular training to employees on relevant laws and policies[184] - The company has established a whistleblowing channel to encourage employees to report any misconduct related to corruption[184] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[194] - The audit procedures included evaluating the impairment testing for trade receivables and contract assets, which was supported by existing evidence[198] - The board confirms its responsibility for preparing the financial statements for the year ending December 31, 2024, ensuring they reflect the company's financial position accurately[175]

Financial Performance - Total Gross Merchandise Value (GMV) for the year ended December 31, 2024, was HKD 8,589,825, representing a 2.0% increase from HKD 8,423,983 in 2023[10] - Total completed orders GMV for the same period was HKD 8,511,995, up 2.2% from HKD 8,330,130 in 2023[10] - Revenue for the year was HKD 3,839,509, a slight increase of 0.7% compared to HKD 3,811,706 in 2023[10] - Adjusted EBITDA decreased by 60.0% to HKD 52,186 from HKD 130,622 in the previous year[10] - The company reported a net loss attributable to shareholders of HKD 66,700, a significant decline from a profit of HKD 45,321 in 2023, marking a 247.2% change[10] - Cash position decreased by 5.6% to HKD 541,705 from HKD 573,593 in 2023[11] - Total equity attributable to shareholders fell by 12.8% to HKD 1,871,619 from HKD 2,145,348 in the previous year[11] - Capital expenditures on property, plant, and equipment dropped by 72.0% to HKD 72,504 from HKD 258,830 in 2023[10] - Adjusted free cash flow was negative HKD 33,438, an improvement of 22.4% from negative HKD 43,099 in 2023[10] Customer Engagement and Services - The "Street Market Same-Day Meal" service now covers over 90% of HKTVmall customers, exceeding the 75% target set for 2022[33] - HKTVmall launched a new group chat feature "ChicChat" in its app, allowing merchants to directly communicate with customers[34] - The introduction of the "Unlimited Add-On" feature has significantly increased customer engagement, with over 278,000 unique customers utilizing this feature in 2024[92] - The new eight-hour express delivery service has exceeded initial targets, with over 259,000 products available for delivery within eight hours, surpassing the goal of 120,000 products set at the beginning of 2024[90] - Customer purchase frequency using the eight-hour express delivery service is 33.0% higher than that of customers using standard delivery services[94] Product and Market Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[76] - HKTVmall aims to expand its product offerings to 100,000 items by 2025 to cater to new residents in Hong Kong[97] - New product launches in the pet supplies category are expected to contribute an additional HKD 50 million in revenue in Q1 2024[79] - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a focus on technology-driven solutions[76] Operational Efficiency and Cost Management - The company has implemented a new membership system effective January 1, 2024, lowering the free shipping threshold for VIP, Gold VIP, and Diamond VIP members to enhance customer experience[93] - The delivery cost as a percentage of total merchandise transaction value has increased in 2024 due to strategic measures aimed at enhancing customer shopping experiences[88] - The mixed gross margin/commission rate has been adjusted to reflect shared expenses offset, indicating a focus on improving profitability[86] - Operating expenses rose by HKD 192,500,000 to HKD 2,171,800,000 in 2024, maintaining a percentage of 21.7% relative to the total gross merchandise transaction value[110] Environmental, Social, and Governance (ESG) Initiatives - The company has increased the recycling volume and scope of waste, reducing the amount sent to landfills[176] - The company plans to explore the use of more electric vehicles to reduce greenhouse gas emissions, having purchased its first refrigerated electric truck by the end of 2023[176] - The company has implemented a reward program for merchants to encourage the reduction of plastic usage and the transition to environmentally friendly materials[176] - The company has established a cross-functional team to monitor environmental, social, and governance performance across departments[178] - The company is committed to reducing its carbon footprint and has set carbon reduction targets to manage climate change risks and opportunities[176] Future Projections and Strategic Planning - Total gross merchandise value (GMV) target for 2025 is HKD 8,370,000,000, with 2024 performance at HKD 8,580,000,000[153] - HKTVmall's total GMV for 2025 is targeted at HKD 7,800,000,000, while 2024 performance was HKD 8,270,000,000[156] - Adjusted EBITDA margin for 2025 is projected to be approximately 3.7% to 3.9%, equating to HKD 290,000,000 to HKD 310,000,000[156] - The company plans to extend its core capital expenditure plan of HKD 250,000,000 to HKD 300,000,000 for at least two more years, covering 2025 to 2028[163] Risk Management and Compliance - The company conducted an annual review of its risk management and internal control systems, finding them reasonable and effective without significant deficiencies[179] - The company has implemented various measures to ensure compliance with intellectual property laws and protect third-party rights[195] - The company emphasizes the importance of data protection and has established comprehensive policies to safeguard personal information[196] - A 24-hour managed security operations center has been established to enhance cybersecurity measures[197]

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, was approximately RMB 261.3 million, a decrease of about 10.5% compared to RMB 292.0 million in the previous year[10]. - The gross profit margin decreased to approximately 34.2%, down by 3.3% from 37.5% in the previous year[10]. - The net profit for the year was approximately RMB 3.0 million, representing a decline of about 57.7% from RMB 7.1 million in the previous year, with a net profit margin of 1.1%[21]. - The group's revenue decreased by approximately 10.5% from RMB 292.0 million in the previous year to RMB 261.3 million this year, primarily due to a decline in oral care product sales[23]. - Revenue from the oral care product segment fell by approximately RMB 36.0 million or 35.7% to RMB 65.0 million, attributed to label adjustments, insufficient new products, and reduced customer traffic in offline stores[23]. - The group's gross profit decreased by approximately 18.3% from RMB 109.6 million to RMB 89.5 million, mainly due to a drop in sales of higher-margin oral care products[26]. - Administrative expenses for the year were approximately RMB 52.2 million, a decrease of about 7.8% from RMB 56.6 million in the previous year, driven by reduced R&D and maintenance costs[29]. - The capital debt ratio decreased to approximately 27.8% from 32.2% in the previous year, primarily due to a reduction in liabilities[39]. - The group has sufficient cash to meet its operational and capital needs, supported by internal cash flow and bank financing[35]. - The group’s financial liabilities of approximately RMB 38.6 million are all due within the next 12 months, while net current assets and net assets were approximately RMB 105.4 million and RMB 262.3 million, respectively, indicating no liquidity risk[53]. Revenue Segments - Revenue from household hygiene products increased by approximately 5.4% to RMB 182.4 million, up from RMB 173.1 million in the previous year, indicating a positive outlook for future sales[10]. - Revenue from the household hygiene product segment increased by approximately RMB 9.3 million or 5.4% to RMB 182.4 million, driven by ongoing promotions[23]. Operational Developments - The company plans to enhance automation levels for its existing oil stain removal products and introduce a high-end oil stain removal product line to meet market demand[16]. - An advanced fully automated production line for toilet cleaners is set to commence operations, aiming to boost overall sales of kitchen and bathroom products[16]. - The company will increase R&D efforts for household cleaning products, utilizing carbon dot surfactant technology to improve product quality[16]. - The newly renovated cosmetics workshop is expected to be operational by 2025, providing more OEM products for clients[16]. Challenges and Strategies - The company faces challenges in promoting its unique core technology, FE composite enzyme, due to regulatory restrictions on medical terminology in marketing[17]. - The company will leverage strong product efficacy and consumer preferences through innovative marketing strategies to revive sales in oral care products[17]. Governance and Management - The management team has extensive experience, with key members holding senior economic titles and relevant industry qualifications[62][63][64][69]. - The group has a structured management team with diverse backgrounds in finance, operations, and education[62][63][64][69]. - The board consists of six directors, with two being women, reflecting the company's commitment to gender diversity[181]. - The company aims to maintain at least one-third of its board and senior management positions occupied by women[179]. - The board is responsible for maintaining effective risk management and internal control systems, with no significant deficiencies found in operations during the year[195]. Shareholder and Financial Policies - The company reported a net profit level that does not warrant the declaration of a final dividend for the fiscal year ending December 31, 2023, with a previous year's dividend of RMB 0.38 per share[79]. - The company has adopted a dividend policy based on its financial performance, cash flow, and overall business conditions[79]. - The company has established a corporate website to facilitate effective communication with shareholders and the public[199]. - The company will continue to strengthen communication with shareholders and investors to build close relationships[199]. Compliance and Risk Management - The group has implemented environmental protection measures and complied with applicable environmental laws and regulations in all significant aspects during the year[56]. - The group has not conducted any related party transactions or ongoing related party transactions that require disclosure under GEM listing rules during the year[58]. - The company has adopted insider information policies to ensure the accuracy and timeliness of disclosures[198]. - The internal audit function is independent and assesses the effectiveness of risk management and internal control systems[195]. Employee and Training Policies - The group has a total of 272 employees as of December 31, 2024, compared to 263 employees in 2023, indicating a growth of approximately 3.4%[133]. - The company emphasizes employee training to enhance customer service capabilities and product quality control[60]. - All directors participated in ongoing professional training to update their knowledge and skills, ensuring informed contributions to the board[184]. Shareholder Structure - As of December 31, 2024, the major shareholders include Ms. Li Qiu Yan with 593,625,000 shares, representing approximately 59.36% of the company's ordinary shares[112]. - Mr. Tong Xing holds 106,875,000 shares, accounting for about 10.69% of the company's ordinary shares[112]. - The beneficial owner of Zhong Bao Ma Li Investment Limited, Ms. Li, is deemed to have an interest in the shares held by the company[113]. - The beneficial owner of Tong Xing Holdings Limited, Mr. Tong, is also deemed to have an interest in the shares held by the company[113]. - Ms. Zhang Li, spouse of Mr. Tong, holds 106,875,000 shares, which is equivalent to approximately 10.69%[115]. Audit and Compliance - The external auditor, Shinewing (HK) CPA Limited, was paid HKD 600,000 for statutory audit services during the year[191]. - The audit committee conducted three meetings during the year to oversee internal controls and risk management systems[165]. - The audit committee's chairman is an independent non-executive director, ensuring unbiased oversight[164]. - The board reviewed the implementation and effectiveness of the shareholder communication policy during the year and expressed satisfaction[199].