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].

Financial Performance - Total revenue decreased by 2.5% to RMB 19,712.9 million compared to RMB 20,208.6 million in 2023[7] - Net profit for the year was RMB 200.7 million, down from RMB 233.5 million in 2023, with basic earnings per share at RMB 0.81 compared to RMB 1.01 in 2023[7] - The gross profit for 2024 was RMB 1,330.9 million, representing a gross margin of 6.8%, up from 5.3% in 2023[17] - The net profit attributable to equity shareholders for 2024 was RMB 189.4 million, down from RMB 230.4 million in 2023, with a profit margin of 1.0%[17] - Total comprehensive income for the year was RMB 200.7 million, reflecting a 14.0% decline compared to the previous year[48] - Profit before tax decreased by 11.6% to RMB 269.8 million, mainly due to increased realized losses from Au (T+D) contracts[46] Revenue Sources - Overseas revenue reached RMB 140.3 million, a significant increase of 701.7% from RMB 17.5 million in 2023[10] - Sales revenue from gold jewelry and other gold products was RMB 19,280.2 million, down 3.0% from RMB 19,877.4 million in 2023[25] - K-gold jewelry and diamond-studded products saw revenue increase to RMB 342.7 million, a growth of 52.0% compared to RMB 225.5 million in 2023[26] - E-commerce sales revenue surged to RMB 2,017.1 million, an increase of 168.7% from RMB 750.7 million in 2023, contributing 10.2% to total revenue[31] Operational Changes - The company established a franchise network with 2,758 stores, a decrease from 2,817 stores in 2023, and operated 33 self-owned stores, down from 35[8] - The company plans to open multiple new stores in key development areas in 2025 to enhance brand image and market coverage[11] - The company has established a franchise network covering 2,758 franchise stores as of December 31, 2024[22] Research and Development - The company holds 660 patents, including 47 invention patents and 115 utility model patents, reflecting a strong focus on R&D[10] - Research and development expenses increased to RMB 22.4 million, a rise of 28.0% from RMB 17.5 million in 2023[39] Financial Position - The total assets increased to RMB 4,934.7 million in 2024, compared to RMB 4,021.0 million in 2023[17] - Trade receivables increased by 83.7% to RMB 276.4 million, attributed to extended credit terms offered to selected franchisees[52] - Cash and cash equivalents rose significantly to RMB 556.2 million, up from RMB 155.9 million, primarily due to unutilized proceeds from the global offering[55] - The group's interest-bearing borrowings increased to RMB 1,348.9 million as of December 31, 2024, compared to RMB 790.0 million in 2023, primarily for general operational needs[66] Corporate Governance - The board proposed a final dividend of RMB 0.30 per share (before tax)[7] - The proposed final dividend is subject to approval at the annual general meeting scheduled for May 16, 2025, with an expected distribution date no later than two months after the meeting[118] - The company has complied with corporate governance codes as detailed in the annual report[137] Market Trends and Risks - The group faces various market risks, including commodity price risk, interest rate risk, and economic development changes[75] - The company’s business growth is dependent on consumer demand for its products, which may be affected by market trends and consumer preferences[117] - Fluctuations in raw material prices may adversely affect the company's business and financial performance[117] Sustainability and ESG Initiatives - The company emphasizes a commitment to sustainable development and ethical business practices, integrating these principles into its operations[195] - The group is committed to sustainable development, actively implementing measures to manage emissions and reduce resource consumption[197] - The group has established a comprehensive ESG governance structure, integrating ESG management into strategic decision-making and daily operations[196] Employee and Management Information - The company had 1,884 full-time employees as of December 31, 2024, a decrease from 1,997 in 2023[144] - Employee welfare expenses, excluding director and supervisor remuneration, amounted to RMB 245.5 million, down from RMB 249.7 million in 2023[144] - The company continues to invest in employee training programs to enhance overall efficiency and employee engagement[145]

Financial Performance - The Group recorded a profit attributable to owners of the Company of approximately HK$80.6 million for the year ended 31 December 2024, compared to a loss of approximately HK$163.9 million in 2023[16]. - Basic earnings per share was approximately HK5.1 cents, a significant improvement from the basic loss per share of approximately HK10.5 cents in 2023[16]. - The Group recorded revenue from continuing operations of approximately HK$725.5 million in 2024, representing an increase of 1.2% compared to HK$716.7 million in 2023[29]. - Gross profit from continuing operations increased by 39.1% to approximately HK$176.8 million in 2024, up from HK$127.1 million in 2023[30]. - Other income from continuing operations decreased by 18.6% to approximately HK$18.8 million in 2024, down from HK$23.1 million in 2023[31]. - Selling and distribution expenses decreased by 22.6% to approximately HK$13.7 million in 2024, compared to HK$17.7 million in 2023[37]. - Administrative expenses increased by 7.7% to approximately HK$75.7 million in 2024, up from HK$70.3 million in 2023[38]. - Finance costs from continuing operations decreased slightly by 2.4% to approximately HK$4.1 million in 2024, down from HK$4.2 million in 2023[42]. - The turnaround from loss to profit was primarily due to a decrease in impairment loss on interest in an associate by approximately HK$66.4 million and a decrease in impairment loss on goodwill by approximately HK$92.7 million[51]. - Return on equity increased from -7.2% in 2023 to 3.8% in 2024, and return on total assets increased from -5.5% to 3.0%[58]. Dividends - The Board proposed a final dividend of HK2.0 cents per share for the year ended 31 December 2024, while no final dividend was recommended for 2023[16]. - The proposed final dividend is subject to shareholder approval at the upcoming annual general meeting and will be payable on or about June 30, 2025[137]. - The register of members will be closed from June 2, 2025, to June 6, 2025, for determining entitlement to attend and vote at the annual general meeting[138]. - The Board recommended a final dividend of HK2 cents per share for the year ended December 31, 2024, while no final dividend was recommended for the year ended December 31, 2023[137]. - The register of members will be closed from June 13, 2025, to June 17, 2025, for the proposed final dividend[142]. Operational Strategy - The Group focused resources on Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to achieve centralized management and production, improving cost control and production efficiency[15]. - The centralized production strategy is expected to reduce the administrative burden related to environmental protection compliance across different subsidiaries[15]. - The Group aims to optimize its asset portfolio and focus on core businesses while exploring acquisitions and disposals to achieve sustainable growth[23]. - The Group plans to continue expanding into other packaging markets and increase participation in tenders to maximize income from investment properties[21]. - The Group's corporate mission includes improving financial performance and broadening revenue streams within acceptable risk levels[22]. Compliance and Governance - The Group has maintained compliance with all relevant rules and regulations in the PRC that significantly impact its operations[12]. - The Group's success relies on strong relationships with key stakeholders, including state-owned cigarette manufacturers[12]. - The Group's performance is closely tied to the regulatory environment and support from stakeholders such as shareholders and local communities[12]. - The Company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions, specifically the purchase of printing and packing machineries[136]. - The Company has adopted the Corporate Governance Code and generally complied with it during the year ended December 31, 2024[181]. Financial Position - As of 31 December 2024, the Group had net current assets of approximately HK$655.4 million, an increase from approximately HK$577.7 million in 2023[59]. - The Group's outstanding bank borrowings as of 31 December 2024 were approximately HK$207.2 million, up from approximately HK$131.6 million in 2023[60]. - The Group's net cash position improved to approximately HK$424.2 million in 2024 from approximately HK$236.1 million in 2023[60]. - The Group's current ratio improved to 2.3 times in 2024 from 2.2 times in 2023, while the quick ratio improved to 2.2 times from 2.0 times[57]. - The Group's reserves available for distribution as of December 31, 2024, amounted to approximately HK$6,188.9 million[100]. Employee and Remuneration - The total remuneration cost incurred by the Group for the year ended December 31, 2024, was approximately HK$69.8 million, down from approximately HK$84.8 million in 2023, with a reduction in the number of employees from 582 to 454[77]. - The Group's retirement benefit scheme costs charged to the consolidated statement for the year ended December 31, 2024, were approximately HK$4.2 million, a decrease from HK$5.0 million in 2023[120]. Investments and Acquisitions - The Group completed the disposal of a 70% equity interest in Jiangsu HY Link for a cash consideration of RMB51.1 million, with the transaction finalized in the second half of 2024[74]. - An acquisition of approximately 86.67% of a 17-storey commercial building in Hong Kong is planned for a total cash consideration of HK$388 million, expected to complete on or before July 31, 2025[78]. - The Group has not held any significant investments representing more than 5% of total assets nor made any material acquisitions or disposals during the year ended December 31, 2024[73]. Risk Management - The Group maintained a healthy liquidity position throughout 2024, with ongoing credit assessments to reduce exposure to credit risk[68]. - The Group's treasury policy emphasizes prudent financial management to ensure liquidity can meet funding requirements[68]. Environmental and Social Responsibility - Further details on environmental and social responsibility will be published in a separate report available on the Company's and Hong Kong Stock Exchange's websites[12]. - The Board has overall responsibility for the Company's ESG strategy and conducts regular reviews of ESG-related matters[177]. - The Group did not make any charitable donations during the year, consistent with 2023[113].

Financial Performance - The company's operating revenue for Q1 2025 was CNY 1,394,250,050.21, representing a 1.53% increase compared to CNY 1,373,251,921.93 in the same period last year[8] - Net profit attributable to shareholders for Q1 2025 was CNY 156,590,188.54, a 1.00% increase from CNY 155,040,262.39 year-on-year[8] - The net profit after deducting non-recurring gains and losses increased by 20.27% to CNY 188,891,082.26 from CNY 157,052,354.18 in the previous year[8] - The total operating profit for the current period is 178,980,342.21, a decrease of 9.4% from 196,847,737.66 in the previous period[34] - Net profit for the current period is 156,169,189.45, showing a slight increase of 1.0% compared to 154,597,836.94 in the previous period[34] - The company's net profit margin improved, with net profit for the period showing a significant recovery compared to the previous period, although specific figures were not disclosed[33] Cash Flow - The net cash flow from operating activities decreased by 38.21% to CNY 544,031,931.35, down from CNY 880,453,882.15 in the same period last year[8] - The cash flow from operating activities is 544,031,931.35, down 38.3% from 880,453,882.15 in the previous period[39] - The net cash flow from investing activities saw a significant decline of 297.07%, resulting in a negative cash flow of ¥257,551,999.87, mainly due to increased purchases of financial products[19] - The cash flow from investment activities shows a net outflow of 257,551,999.87, compared to a net inflow of 130,688,287.99 in the previous period[40] - The net cash flow from financing activities increased by 103.37% to ¥22,602,544.83, as the amounts borrowed and repaid remained relatively stable compared to the previous year[19] - Net cash flow from financing activities was $22,602,544.83, a significant improvement from a negative $670,833,066.44 in the previous period[41] Assets and Liabilities - Total assets at the end of the reporting period were CNY 17,545,801,889.02, reflecting a 1.17% increase from CNY 17,343,523,964.97 at the end of the previous year[8] - Total liabilities increased to CNY 5,205,766,284.88 from CNY 5,141,403,413.17, reflecting an increase of approximately 1.2%[31] - The equity attributable to shareholders increased by 1.14% to CNY 12,287,013,002.74 from CNY 12,148,672,778.24 year-on-year[8] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 28,367, with the largest shareholder, Shenzhen Lerun Technology Co., Ltd., holding 32.31% of shares[22] - The top ten shareholders collectively hold significant stakes, with the second-largest shareholder, Xiamen Jintian Soil Investment Partnership, holding 27.81%[22] - The largest shareholder, Shenzhen Lerun Technology Co., Ltd., has a total of 474,029,899 shares, while the second-largest holds 408,041,280 shares[23] - The company has not reported any changes in the participation of the top ten shareholders in margin trading or securities lending activities compared to the previous period[24] - There are no preferred shareholders or related changes reported in the current period[24] Investment and Expenses - The company reported a significant increase in investment income, rising by 132.79% to CNY 20,292,064.76 from a loss of CNY 61,890,173.43 in the previous year[17] - Research and development expenses were CNY 39,993,799.57, up from CNY 35,294,968.25, indicating an increase of about 19.2%[33] - The company experienced a 190.08% decrease in financial expenses, resulting in a gain of CNY 56,508,230.69 due to foreign exchange gains[17] - The deferred income increased by 65.95% to CNY 45,279,690.29, primarily due to government subsidies received during the reporting period[15] - The company reported a substantial increase in asset disposal income, which rose by 4404.34% to CNY 1,288,820.50 from CNY 28,612.85 in the previous year[17] Inventory and Receivables - Accounts receivable increased to CNY 1,382,358,370.19 from CNY 1,178,554,557.22, showing a rise of about 17.3%[28] - Inventory decreased to CNY 4,952,734,323.44 from CNY 5,393,947,174.38, a decline of approximately 8.2%[28] Cash and Equivalents - The company's cash and cash equivalents at the end of the period were CNY 2,000,842,827.21, up from CNY 1,689,041,495.34 at the beginning of the period, indicating a growth of approximately 18.4%[28] - The ending balance of cash and cash equivalents was $1,740,464,878.53, down from $2,108,383,601.96 in the prior period[41] - The net increase in cash and cash equivalents was $318,638,044.68, slightly lower than $342,738,890.08 in the previous period[41] Other Financial Metrics - The total comprehensive income for the current period is 137,915,052.34, a decrease of 8.1% from 150,135,056.48 in the previous period[36] - Basic and diluted earnings per share for the current period are both 0.1067, an increase from 0.1057 in the previous period[36] - The company recorded a foreign exchange loss of 47,399,165.67 in other comprehensive income, contrasting with a gain of 3,002,651.97 in the previous period[35] - The company received cash from sales of goods and services totaling 1,327,258,705.88, down 11.1% from 1,493,180,137.55 in the previous period[39] - The company reported a decrease in cash received from other operating activities to 47,510,298.94, down from 97,379,140.23 in the previous period[39] - The company’s net impairment loss on assets decreased significantly to 44,094.91 from 33,754,398.03 in the previous period[34] Audit and Reliability - The first quarter report was not audited, indicating potential limitations in financial reliability[42]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 592.9 million, a decrease of about RMB 74.5 million compared to the fiscal year ending December 31, 2023[13]. - The net loss for the fiscal year 2024 was approximately RMB 68.2 million, an increase in loss of about RMB 41.5 million compared to the previous fiscal year[13]. - The decrease in revenue was primarily due to a reduction in collective procurement business and the closure of several retail stores[13]. - The company's gross profit margin decreased, leading to a reduction in overall gross profit, influenced by the operating environment and decreased supplier channel income[13]. - Retail store business revenue for fiscal year 2024 was approximately RMB 431.1 million, down by about RMB 101.3 million or 19.0% from fiscal year 2023[34]. - Wholesale distribution revenue increased to approximately RMB 161.8 million, an increase of about RMB 26.8 million or 19.9% compared to fiscal year 2023[34]. - The company's gross profit margin decreased to 12.1% in fiscal year 2024 from 13.7% in fiscal year 2023, primarily due to lower wholesale distribution margins[35]. - The net loss for fiscal year 2024 was approximately RMB 68.2 million, an increase in loss of about RMB 41.5 million or 155.6% compared to fiscal year 2023[42]. - Total comprehensive expenses for fiscal year 2024 are approximately RMB 68.1 million, an increase of RMB 41.7 million or 158.3% compared to fiscal year 2023[43]. - The company reported a loss before tax of RMB 68,487,000, compared to a loss of RMB 27,456,000 in 2023, indicating a significant increase in losses[197]. - Net loss for the year was RMB 68,198,000, which is a 156.5% increase from RMB 26,684,000 in the prior year[197]. - Basic and diluted loss per share for the year was RMB 0.23, compared to RMB 0.09 in 2023, reflecting a worsening financial position[197]. Business Strategy and Operations - The company is focusing on a multi-channel business model that includes retail, wholesale, online-offline integration, and community marketing to enhance customer satisfaction and brand value[12]. - The company aims to expand its business footprint beyond the Guangdong-Hong Kong-Macao Greater Bay Area to other regions in China[12]. - The company is focusing on transforming its business model by launching new formats such as "supply and marketing discount stores" and "24-hour AI smart unmanned stores" to adapt to market changes[24]. - The company aims to enhance its supply chain by reducing intermediaries through direct supply from manufacturers and nationwide joint procurement, which is expected to improve gross profit margins[24]. - The company plans to strengthen its e-commerce presence and community group buying initiatives, collaborating with third-party platforms like Meituan and JD Daojia to boost sales[24]. - The company aims to explore new business development opportunities outside Guangdong Province and in Hong Kong, leveraging favorable policies in Hainan Free Trade Port[25]. - The company is actively adjusting its business development direction to become a leading urban-rural circulation operator in China[25]. - The company aims to expand its business model by developing discount stores and collective procurement and distribution services[26]. - The company intends to leverage new media marketing and enhance its online platform scale, including its own e-commerce platform[26]. Market Environment - The retail industry in China is facing significant challenges due to economic pressures, changing consumer spending habits, and insufficient consumer demand[14]. - The overall consumer market in China is expected to show stable growth in 2024, despite ongoing challenges in the retail sector[14]. - The company faces risks from intense competition in the retail sector and changing customer preferences, which may impact future growth and profitability[29][30]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of corporate governance[70]. - The company has established a board diversity policy, considering various measurable aspects such as gender, age, and professional experience in its board composition[76]. - The roles of the chairman and the CEO are clearly defined to ensure a balance of power and authority within the company[79]. - The company has complied with all provisions of the corporate governance code as of December 31, 2024, following the appointment of a new independent non-executive director[72]. - The company has implemented a standard code for securities trading by directors, ensuring compliance among all board members[73]. - The nomination committee is responsible for monitoring the implementation of the board diversity policy and will review it periodically to ensure its effectiveness[76]. - The company is committed to fair treatment of employees from diverse backgrounds, ensuring the protection of their legal rights[78]. - The board of directors held four meetings during the year ending December 31, 2024, with individual attendance records documented[81]. - The audit committee conducted four meetings during the year, reviewing the group's interim and annual performance and discussing financial reports[94]. - The company has established appropriate directors and officers liability insurance to cover potential legal claims against its directors and senior management[86]. - All independent non-executive directors confirmed their independence according to the listing rules, with none serving for more than nine years[92]. - The company has three established board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with specific written terms of reference[93]. - The company encourages continuous professional development for directors, with all participating in relevant training courses at the company's expense[89]. - The board retains decision-making authority on significant matters, including policy, strategy, budget, and major transactions[88]. - The company has implemented a system for independent professional advice for directors to fulfill their responsibilities, with costs covered by the company[87]. - The board's effective operation is supported by the diverse business experience and expertise of all directors, including independent and non-executive members[87]. Financial Position and Assets - As of December 31, 2024, the company has cash and cash equivalents of approximately RMB 21.2 million, down from RMB 48.7 million as of December 31, 2023[46]. - The total debt as of December 31, 2024, is approximately RMB 62.0 million, an increase from RMB 28.0 million as of December 31, 2023[49]. - The company's asset-liability ratio increased to 75.3% in fiscal year 2024 from 18.6% in fiscal year 2023[51]. - Accounts receivable turnover days increased to 22.0 days in fiscal year 2024 from 18.0 days in fiscal year 2023[51]. - Inventory turnover days decreased to 54.0 days in fiscal year 2024 from 60.1 days in fiscal year 2023[51]. - The return on equity for fiscal year 2024 is -83.6%, compared to -17.9% in fiscal year 2023[51]. - The company has no significant capital commitments or major investments planned for fiscal year 2024[45][47]. - There were no significant acquisitions or disposals of subsidiaries during fiscal year 2024[48]. - The company has sufficient retained earnings and distributable reserves to support its operations and shareholder interests[128]. - The company’s financing needs and expected capital expenditure requirements are aligned with its business expansion plans[128]. - The company has reallocated part of the unutilized net proceeds from opening new retail stores to renovating existing stores and repaying bank loans due to the slowdown in China's economic growth[131]. - The company’s total liabilities increased from RMB 170,265 thousand in 2023 to RMB 190,815 thousand in 2024, reflecting a rise of approximately 12.1%[198]. - Total non-current assets decreased from RMB 131,072 thousand in 2023 to RMB 93,494 thousand in 2024, a decline of approximately 28.7%[198]. - Current assets decreased from RMB 234,434 thousand in 2023 to RMB 211,206 thousand in 2024, a reduction of about 9.9%[198]. - Current liabilities increased from RMB 170,265 thousand in 2023 to RMB 190,815 thousand in 2024, an increase of approximately 12.1%[198]. - Net current assets decreased significantly from RMB 64,169 thousand in 2023 to RMB 20,391 thousand in 2024, a decline of about 68.3%[198]. - Total equity decreased from RMB 150,415 thousand in 2023 to RMB 82,358 thousand in 2024, a drop of approximately 45.3%[199]. - Cash and cash equivalents decreased from RMB 48,683 thousand in 2023 to RMB 21,152 thousand in 2024, a decline of about 56.5%[198]. - Trade payables decreased from RMB 78,384 thousand in 2023 to RMB 66,591 thousand in 2024, a reduction of approximately 15.0%[198]. - The company's reserves decreased from RMB 146,794 thousand in 2023 to RMB 78,959 thousand in 2024, a decline of about 46.3%[199]. Shareholder and Stock Information - The company has not declared any dividends for the fiscal years reported[9]. - The company has not declared any final dividends for the fiscal year ending December 31, 2024, as per its dividend policy[124]. - The company operates as an investment holding company, focusing on supermarket chain operations primarily in Guangdong Province, China[121]. - The company has a stock option plan that allows for the issuance of up to 28,647,700 shares, representing about 9.86% of the shares issued as of the report date[135]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total shares post-global offering, amounting to 28,647,700 shares, which is approximately 9.86% of the shares issued as of the report date[137]. - The total number of shares issued and to be issued under the stock option plan for each eligible participant cannot exceed 1% of the issued shares as of the grant date within any 12-month period[138]. - The exercise price for any specific stock option must be determined by the board but cannot be lower than the highest of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[145]. - The stock option plan is effective for 10 years from the date of approval and can only be terminated early by shareholder resolution or board decision[143]. - Major shareholders hold a total of 204,558,317 shares, representing 70.42% of the company's equity[151]. - Infini Capital Management is a beneficial owner with 27,600,000 shares, accounting for 9.50% of the equity[151]. - As of December 31, 2024, the indirect controlling shareholder holds approximately 70.42% of the company's issued shares[149]. - The company has no other stock option plans apart from the one mentioned, and no options have been granted that exceed the 30% limit on total shares[137]. - The company has received no applications for stock options that would exceed the 1% limit without shareholder approval[139]. Compliance and Risk Management - The company has implemented a robust internal control and risk management system, with an independent consultant assessing its effectiveness during the year ending December 31, 2024[109]. - The board confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024, and its performance for the year[104]. - The company has established an insider information policy to manage and disclose insider information in compliance with relevant regulations[110]. - The company adopted an anti-corruption and bribery policy in 2022, ensuring effective risk management and internal control systems for the fiscal year ending December 31, 2024[111]. - The company maintained the required public float as per listing rules throughout the reporting period[172]. - There were no significant events requiring disclosure that occurred after December 31, 2024, up to the date of the report[174].

Financial Performance - The company reported a pre-tax loss of RMB 243,111,000 for the fiscal year ending December 31, 2023, a decrease of 14.5% compared to RMB 284,158,000 in 2022[5]. - The total equity of the company decreased to RMB 192,911,000 in 2024 from RMB 295,583,000 in 2023, reflecting a decline of 34.7%[5]. - Other income and gains totaled approximately RMB 7.6 million, a decrease of about RMB 3.1 million compared to the previous year, primarily due to a reduction in government subsidies of approximately RMB 2.4 million[79]. - Research and development costs decreased to approximately RMB 94.8 million in 2024 from RMB 135.4 million in 2023, mainly due to a reduction in laboratory supplies and testing costs by approximately RMB 33.2 million[81]. - Administrative expenses totaled approximately RMB 67.7 million in 2024, down from RMB 97.6 million in 2023, primarily due to a decrease in share-based payments of approximately RMB 13.0 million[82]. - The total available funds, including cash and cash equivalents, pledged and restricted deposits, and structured deposits, decreased to RMB 141.4 million in 2024 from RMB 233.1 million in 2023, a net decrease of approximately RMB 91.7 million[86]. - The net cash used in operating activities was RMB (130.8) million in 2024, compared to RMB (133.8) million in 2023[88]. - As of December 31, 2024, the outstanding bank borrowings amounted to RMB 419.3 million, an increase from RMB 391.4 million in 2023[90]. - The actual interest rates on bank borrowings ranged from 3.15% to 3.90% in 2024, compared to 3.30% to 4.05% in 2023[90]. - The company reported a net current liability of RMB 18,161,000 and a net loss of RMB 185,141,000 for the year ending December 31, 2024[198]. Research and Development - Research and development costs for the fiscal year 2023 were RMB 135,409,000, down 25% from RMB 180,368,000 in 2022[5]. - The flagship product, Suciraslimab, has completed two major regulatory inspections and is awaiting final approval from the National Medical Products Administration for the treatment of rheumatoid arthritis[9]. - The company is actively exploring additional therapeutic applications for Suciraslimab, including its potential use in treating Alzheimer's disease[9]. - The development of SM17, a humanized monoclonal antibody targeting IL-25, is progressing significantly, with potential applications in atopic dermatitis, asthma, and other immune diseases[10]. - The company has added two new candidate drugs to its pipeline, targeting vitiligo and osteoporosis, respectively[11]. - The company aims to achieve three interrelated milestones by 2025: obtaining regulatory approval for Suciraslimab, strategic licensing or collaboration for SM17, and expanding its global footprint[12]. - SM17 demonstrated good safety and tolerability in preclinical and Phase 1 clinical trials, outperforming JAK1 inhibitors[13]. - The Phase 1b proof-of-concept study for SM17 in patients with atopic dermatitis (AD) included 32 moderate to severe patients, with the last patient visit completed on March 24, 2025[13]. - The flagship product, Suciraslimab (SM03), achieved primary endpoints in a Phase 3 clinical study for rheumatoid arthritis (RA) in China, with the Biologics License Application (BLA) accepted in September 2023[22]. - The company is actively exploring partnerships with major pharmaceutical companies to advance the development of SM17 based on strong Phase 1 data obtained in the US and China[13]. - The Phase 1 clinical trial results for SM17 were published in the journal "Frontiers in Immunology," demonstrating excellent safety, tolerability, and pharmacokinetic properties[13]. - The extended Phase III trial for Suciraslimab is expected to complete in December 2024, with results anticipated in Q3 2025[34]. - Suciraslimab's long-term efficacy data indicates sustained response rates over time, suggesting advantages over traditional biologics[34]. - SM17's preclinical studies showed efficacy comparable to JAK1 inhibitors in treating atopic dermatitis in mouse models[39]. - The company plans to advance clinical development of Suciraslimab for additional indications, including SLE and Alzheimer's-related MCI, post-commercialization[35]. - The Phase III trial for Suciraslimab demonstrated effective reduction in disease activity for RA patients[34]. - SM17's mechanism targets IL-25, potentially benefiting patients with allergic and autoimmune diseases[36]. - The IND application for asthma was submitted in May 2023 and approved on August 11, 2023, while the IND application for AD was submitted in June 2023 and approved on September 8, 2023[40]. - A bridging Phase 1a clinical trial in China is expected to complete in May 2024, assessing the safety, tolerability, and PK characteristics of SM17, which showed good tolerability and safety[40]. - The Phase 1b clinical trial for SM17 in moderate to severe AD patients commenced with 32 patients enrolled, with the last patient visit scheduled for March 24, 2025[40]. - SN1011, a third-generation reversible covalent BTK inhibitor, has shown high target selectivity and durable controllable efficacy for potential long-term treatment of SLE, pemphigus, MS, and NMOSD[42]. - The company has established a pipeline of monoclonal antibodies and new chemical entities (NCEs) to address unmet medical needs in immune diseases[21]. - The company is optimizing the CMC for SM06, a second-generation anti-CD22 antibody, which may have stronger immunomodulatory effects[44]. - The company is conducting CMC optimization and toxicology studies for an internally developed anti-γc antibody, which shows potential for treating vitiligo and other autoimmune diseases[46]. - The company has established a preclinical research platform focused on autoimmune diseases, with ongoing clinical projects generating pharmacological data for products like SM06, which is currently in the IND application stage[64]. - The company is optimizing the production and preclinical research of SM09, with plans to apply for clinical trials after completing preclinical studies[68]. Corporate Governance and Management - The management team includes experienced professionals with extensive backgrounds in the pharmaceutical industry, contributing to strategic direction and operational management[104]. - The company is focused on strategic development and governance, with a strong emphasis on independent judgment from its board members[114]. - The board includes members with extensive backgrounds in investment, research, and strategic management within the pharmaceutical sector[112]. - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for the separation of roles between the chairman and CEO[134][148]. - The company promotes a corporate culture of "ELITES," focusing on excellence, learning, innovation, talent, efficiency, and collaboration[135][136]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[134]. - The company has a strong management team with extensive research and business management experience, leading to stable progress in drug development[137]. - The company has appointed a new company secretary effective March 31, 2023, enhancing its corporate governance structure[131]. - The board consists of ten members, including two executive directors, four non-executive directors, and four independent non-executive directors[143]. - The board believes that Dr. Liang, as the founder and CEO, has a comprehensive understanding of the company's business, supported by Mr. Wang's role as Executive Director and President (China Region) since his appointment[150]. - The board has maintained compliance with listing rules, ensuring at least three independent non-executive directors, constituting one-third of the board, with one possessing appropriate professional qualifications in accounting or related financial management[151]. - All independent non-executive directors have confirmed their independence in writing according to listing rules, ensuring effective governance and oversight[151]. - The company has established a training program for all directors, covering topics related to their responsibilities under listing rules and relevant legal obligations[158]. - The board held regular meetings throughout the year, with a minimum of four meetings planned, approximately once per quarter, to ensure effective governance[160]. - The company has a high proportion of independent directors, with two executive directors and four independent non-executive directors, ensuring a balanced decision-making process[150]. - The company has implemented a director and officer liability insurance policy, which is reviewed annually to protect against potential legal actions[155]. - The board is responsible for leading and monitoring the company, ensuring good internal controls and risk management systems are in place[154]. - The company has established clear written terms of reference for its three committees: audit, remuneration, and nomination[163]. - The audit committee is tasked with monitoring the effectiveness of risk management and internal control systems[165]. - The remuneration committee reviewed the remuneration policies for all directors and senior management, assessing performance and making recommendations for individual remuneration[172]. - The nomination committee is responsible for reviewing the composition of the board and making recommendations for the appointment of directors[177]. - The board has adopted a diversity policy, recognizing that board diversity is crucial for achieving strategic goals and sustainable development[182]. - The gender ratio at the board level is currently 1:9 (female to male), while the employee level ratio is 45:55[185]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems, which aim to manage risks associated with achieving business objectives[187]. - An independent consultant was hired to analyze and review the adequacy and effectiveness of the risk management and internal control systems during the fiscal year[188]. - The audit committee reviews the risk management policies to ensure alignment with business strategies and monitors the management's handling of significant risks[193]. - The CFO is responsible for formulating and updating risk management policies and ensuring the implementation of risk management measures across departments[193]. Market and Industry Insights - The global autoimmune disease drug market is projected to grow from $120.5 billion in 2020 to $163.8 billion by 2030, with a CAGR of 3.1%[70]. - The Chinese rheumatoid arthritis (RA) treatment market is expected to reach RMB 32.8 billion by 2024 and RMB 83.3 billion by 2030, with a CAGR of 16.8%[70]. - The biopharmaceutical market share for biologics in the Chinese RA treatment market is projected to increase from 43.4% in 2024 to 59.8% by 2030[70]. - The global asthma patient population is expected to reach approximately 860 million by 2030, with a significant increase in patients in China[72]. - The company believes that SM17, targeting the Th2 inflammatory cytokine pathway, will provide a safe and effective treatment option for atopic dermatitis (AD) and asthma[71][72]. Production and Facilities - The Suzhou production facility is expected to pass completion acceptance in early 2025, following the completion of construction by the end of 2024[17]. - The clinical site inspections and GMP checks for the Haikou production base were completed in January 2024, which are necessary for the BLA approval process[22]. - The production facility in Haikou spans approximately 19,163 square meters with a capacity of 1,200 liters, and completed GMP inspection in January 2024[52]. - The second production facility in Suzhou, covering 43,158 square meters, is expected to complete construction by the end of 2024 and pass acceptance inspection in early 2025[53]. - The company has acquired a 43,158 square meter land in Suzhou, China, for a new production facility, expected to be completed by the end of 2024[68]. Intellectual Property - The company holds 91 invention patents as of December 31, 2024, compared to 35 patents as of December 31, 2023, indicating significant growth in intellectual property[56]. - As of December 31, 2024, the company has six pending patent applications in the U.S., seven in China, and six in the EU[54].