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].

Financial Performance - Total revenue for 2024 decreased by 18.8% to RMB 28,236.2 million compared to RMB 34,762.8 million in 2023[20] - Profit attributable to owners of the company for 2024 was RMB 1,272.4 million, down from RMB 2,640.2 million in 2023, representing a decline of 51.8%[20] - The gross profit margin for 2024 was 15.2%, down from 16.9% in 2023, indicating increased cost pressures[20] - The company's gross profit decreased by approximately 27.1% to RMB 4,289.0 million in 2024 from RMB 5,885.2 million in 2023, with a gross margin decline from about 16.9% to approximately 15.2%[41] - Other income and gains decreased by approximately 34.4% from RMB 979.8 million in 2023 to RMB 642.9 million in 2024, primarily due to the absence of one-time government grants in 2024 and increased foreign exchange losses[42] - Profit for the year decreased by approximately 51.8% from RMB 2,640.2 million in 2023 to RMB 1,272.4 million in 2024[48] - Basic earnings per share decreased by approximately 52.3% to RMB 42.2 cents for the year ended December 31, 2024[180] Assets and Liabilities - The total assets as of December 31, 2024, were RMB 24,618.9 million, a decrease from RMB 25,660.1 million in 2023[21] - The total liabilities decreased to RMB 15,860.8 million in 2024 from RMB 17,258.9 million in 2023, reflecting improved financial stability[21] - Cash and cash equivalents as of December 31, 2024, were approximately RMB 7,868.9 million, a decrease of about 0.6% from RMB 7,913.8 million as of December 31, 2023[49] - Inventory increased by approximately 33.9% from RMB 955.4 million as of December 31, 2023, to RMB 1,279.4 million as of December 31, 2024, mainly due to preparations for anticipated demand during the Chinese New Year[53] - Accounts receivable decreased by approximately 16.2% from RMB 545.9 million as of December 31, 2023, to RMB 457.7 million as of December 31, 2024, due to increased collection efforts and a decline in sales[54] - The debt-to-equity ratio increased to 16.4% as of December 31, 2024, compared to 9.9% as of December 31, 2023[58] Sales and Market Performance - The revenue breakdown for 2024 shows electric scooters at 3.2%, batteries and chargers at 25.1%, electric bicycles at 28.3%, and parts at 43.4%[18] - Total sales of electric scooters and bicycles dropped from approximately 16.5 million units in 2023 to about 13.0 million units in 2024, reflecting a significant decline in demand[34] - The sales volume of electric scooters decreased by approximately 20.7% from about 4,960,000 units in 2023 to approximately 3,931,000 units in 2024[37] - The sales volume of electric bicycles fell by approximately 21.4% from about 11,561,000 units in 2023 to approximately 9,089,000 units in 2024[37] Research and Development - The company operates six R&D centers and holds over 2,000 patents, emphasizing its commitment to innovation in electric vehicles[10] - The company continues to invest in R&D for core components such as batteries and electronic control systems, with a focus on launching compliant and market-oriented products[29] - The company is set to launch its first mass-produced sodium-ion battery-powered electric bicycle in January 2025, marking a significant breakthrough in sustainable transportation[29] Marketing and Expansion - The company aims to enhance marketing efforts through digital platforms and social media to connect with younger consumers, appointing a global brand ambassador to rejuvenate its brand image[30] - The company plans to accelerate global expansion, particularly in Southeast Asia, with new factories in Indonesia and Vietnam, and flagship stores in Thailand and Indonesia[29] Corporate Governance - The board consists of eight directors, including three executive directors, one non-executive director, and four independent non-executive directors[73] - The company has fully complied with the corporate governance code during the year ended December 31, 2024[69] - All independent non-executive directors confirmed their independence according to the guidelines set out in the listing rules[75] - The company has established mechanisms to ensure independent judgment from the board, including evaluating the time commitment of independent non-executive directors[86] - The roles of chairman and CEO are clearly defined and separated, with Dong Jinggui as chairman and Qian Jinghong as CEO[87] Risk Management - The company has established a robust risk management and internal control system to safeguard shareholder investments and company assets[117] - The board has identified four risk categories: strategic risk, financial risk, operational risk, and legal risk, and has established a reporting policy to address misconduct or fraud[122] - The company encourages employees and stakeholders to report any concerns regarding misconduct or fraud, ensuring thorough investigations are conducted[122] Social Responsibility and Sustainability - The company is committed to fulfilling its social responsibilities through active implementation of environmental, social, and governance policies during the reporting period[135] - The company is focused on sustainable development and continuously reviews and improves its sustainability efforts during the reporting period[135] Leadership and Management - The company has a strong leadership team with over 23 years of experience in the electric two-wheeler industry, co-founded by the current chairman and CEO[138][140] - The management team has received multiple accolades, indicating a high level of recognition in their respective fields[149] - The strategic appointments aim to strengthen the company's operational efficiency and drive future growth initiatives[146][148][151][152][154] Shareholder Communication - The company emphasizes the importance of transparent communication with shareholders to enhance their understanding of business performance and strategies[121] - The company maintains various formal communication channels to report performance and engage with shareholders, including investor forums and site visits[123]

Financial Performance - Total revenue increased by 14.53% year-on-year to HKD 604,794,000, with profit reaching HKD 7,628,000, a growth of over 40% compared to HKD 5,392,000 in 2023[8]. - The total contract value obtained by the company in 2024 reached over HKD 640 million, representing a year-on-year growth of approximately 7%[14]. - Revenue for the year increased to HKD 604,794,000, a year-on-year growth of 14.53% from HKD 528,066,000 in 2023[26]. - Gross profit rose to HKD 118,056,000, reflecting a year-on-year increase of 10.91%[26]. - The group recorded an operating profit of HKD 3,784,000 for the year, compared to HKD 1,174,000 in 2023, reflecting a significant improvement in profitability[27]. - Net profit for the year reached HKD 7,628,000, an increase of over 40% from HKD 5,392,000 in 2023[27]. Market and Business Development - The order volume for 2024 exceeded HKD 640,000,000, marking the highest level since 2015[8]. - The mainland China market saw a significant rebound, increasing by 140% compared to 2023, accounting for about 40% of the total order volume in 2024[14]. - Macau remains the largest market, contributing approximately 50% of the total order volume in 2024, despite a decrease in contracts by nearly 50% compared to 2023 due to a lack of new guidelines from the gaming authority[15]. - The gaming industry in Macau is facing challenges due to changes in consumer spending patterns and a decrease in high-spending clientele[9]. - The company achieved a significant increase of over 25% in order volume from the Macau government and other vertical markets in 2024[17]. Dividend and Financial Management - The company plans to pay a final dividend of HKD 0.01 per share, marking the eleventh consecutive year of dividend payments[8]. - The company continues to evaluate new business opportunities, which may affect future dividend payments[86]. - As of December 31, 2024, the company's distributable reserves were HKD 110,642,000, of which HKD 6,161,000 is proposed as the final dividend[156]. Research and Development - The company has established R&D facilities in Shanghai and Jiangxi, along with 24-hour service centers in mainland China[7]. - The company continues to seek the latest technologies for future applications in the IT industry, particularly those currently unfeasible due to infrastructure limitations[7]. - The company is focusing on high-potential leaders in the data network infrastructure and IT solutions sectors to enhance its product and service offerings[18]. Corporate Governance - The company has established a corporate governance policy and defined the responsibilities of the board[67]. - The board of directors held four meetings during the year, indicating active governance and oversight[55]. - The audit committee is responsible for reviewing the company's financial information and overseeing the financial reporting system and internal controls[78]. - The company confirmed that all independent non-executive directors are considered independent according to the GEM Listing Rules[62]. Environmental and Social Responsibility - The company supports responsible disposal of solid waste and encourages donations of surplus materials to charities[99]. - The company recognizes the impact of extreme weather on logistics and has implemented policies to mitigate related risks[109]. - The company focuses on continuous monitoring of regulatory developments to ensure compliance with environmental standards[100]. - Total charitable donations made by the company during the year amounted to HKD 194,000[157]. Employee Management - Employee costs represent the largest component of the group's cost structure, with administrative expenses increasing from HKD 76,727,000 in 2023 to HKD 80,736,000 in 2024, a rise of 5.2%[27]. - The total number of employees remained stable at 149, with 114 in Macau, 12 in Hong Kong, and 23 in mainland China[31]. - Employee turnover rate for the year is 10.77%, with 13.10% for males and 2.94% for females[119]. - The company provides competitive employment benefits to attract and retain talent, including performance bonuses and housing allowances[117]. Compliance and Risk Management - The company adheres to all legal regulations and industry best practices to ensure a safe working environment[120]. - The board has reviewed the effectiveness of the risk management and internal control systems during the year[85]. - The company has implemented a whistleblower policy to encourage reporting of potential abuses or illegal activities without fear of retaliation[129]. Supply Chain Management - The company has a total of 26 major suppliers across various regions, including 6 in Macau, 15 in Hong Kong, and 1 each in mainland China, the rest of Asia, the USA, and Europe[133]. - The number of suppliers with contract amounts exceeding HKD 1,500,000 has been assessed for environmental and social risks annually[135]. - The company actively monitors and reviews its operational key procedures to ensure ethical, quality, safety, and efficiency standards throughout the supply chain[131].

Financial Performance - The company's operating revenue for 2024 reached CNY 34.22 billion, a 1.36% increase compared to CNY 33.76 billion in 2023[16]. - Net profit attributable to shareholders decreased by 12.52% to CNY 2.42 billion in 2024 from CNY 2.76 billion in 2023[16]. - The basic earnings per share (EPS) for 2024 was CNY 1.16, down 12.78% from CNY 1.33 in 2023[18]. - The net cash flow from operating activities for 2024 was CNY 5.98 billion, a decrease of 4.14% compared to CNY 6.24 billion in 2023[16]. - The total assets as of December 31, 2024, were CNY 69.51 billion, reflecting a 1.11% increase from CNY 68.75 billion in 2023[16]. - The company's operating profit for the current period is CNY 4,223,787,895, a decrease of 2.93% compared to the same period last year[94]. - The total profit decreased by CNY 4,111,907,292, down 4.95% year-on-year, while net profit attributable to shareholders decreased by 12.52% to CNY 2,416,280,487[94]. - The company reported a net profit of 1.93 billion RMB for 2024, with a proposed cash dividend of 0.46 RMB per share, totaling approximately 960 million RMB[54][56]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of RMB 0.46 per share (including tax) for the 2024 fiscal year[5]. - The company’s cash dividend distribution plan for 2023 was approved, distributing 0.53 RMB per share, totaling approximately 1.10 billion RMB[52]. - The total number of registered shareholders decreased from 52,723 to 51,386 between December 31, 2024, and February 28, 2025[152]. - The company’s major shareholders include Hong Kong Central Clearing Limited with 35.34% and HOLCHIN B.V. with 21.71% of shares[150]. - Holcim Limited holds a total of 869,235,668 shares, representing 41.81% of the company's equity[153]. - The largest shareholder, Holcim Limited, has a 33.57% stake in A shares and a 56.88% stake in H shares[153]. - The company’s share structure remained unchanged during the reporting period[149]. Operational Efficiency and Market Position - The company plans to enhance its operational efficiency in response to the ongoing challenges in the cement market, including stricter regulations on production capacity[27]. - The revenue from the cement business accounts for 55% of the company's total operating income, indicating its dominant position among all business segments[31]. - The company ranks fourth globally in clinker production capacity and sixth in domestic clinker production capacity, with overseas clinker production ranking third nationally as of the end of 2024[28]. - The company has established a comprehensive technical innovation system, holding 99 invention patents and 121 utility model patents as of the end of 2024[39]. - The company operates in 17 provinces and municipalities in China and has expanded its business to 16 countries overseas, demonstrating significant market expansion[30]. - The company achieved a brand value of 104.57 billion RMB, ranking 79th in "China's 500 Most Valuable Brands" and 162nd in "Asia's 500 Strongest Brands"[41]. Risk Management and Compliance - The company has detailed potential risks described in the report, particularly in the section discussing operational conditions[5]. - The company emphasizes the importance of investor awareness regarding investment risks related to forward-looking statements[5]. - The company is committed to enhancing risk control, compliance management, and integrity standards to strengthen its development safety net[122]. - The company faces risks from declining domestic cement demand, rising production costs, and international market uncertainties[120][121]. Strategic Initiatives and Future Outlook - The company plans to achieve a total revenue of 37.1 billion yuan in 2025, with sales targets of approximately 5.7 million tons of cement and clinker, 17 million tons of aggregates, and 3 million cubic meters of concrete[115]. - The company is committed to advancing its four strategic initiatives, including overseas multi-business development and digital AI-driven transformation[113]. - The company anticipates a narrowing decline in domestic demand for building materials in 2025, supported by government policies aimed at stabilizing the real estate market[109]. - The company is actively pursuing various risk hedging strategies to reduce regional economic and foreign exchange risk exposure[123]. Research and Development - Research and development expenses totaled RMB 240.9 million, accounting for 0.70% of operating revenue[64]. - The company successfully completed acquisitions to increase cement capacity in Nigeria to 10.6 million tons per year and aggregate capacity in Brazil to 8.8 million tons per year[76]. - The company has successfully developed and commercialized ultra-high-performance concrete products, particularly in four major engineering fields[39]. - Research and development investments increased by 18%, focusing on sustainable building materials[172]. Employee and Management Information - The total number of employees in the group as of December 31, 2024, is 20,174, including 1,207 from the parent company and 18,967 from major subsidiaries[185]. - The total remuneration for the management team amounted to 2,829.51 million yuan during the reporting period[164]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to 67.71 million yuan[180]. - The company has established a talent management mechanism to enhance its competitive edge in talent acquisition and retention[123]. Acquisitions and Investments - The company signed a share acquisition agreement to acquire 100% of Caricement B.V. for $56.044 million, with potential adjustments based on impairment clauses[137]. - The company completed the acquisition of 100% of ITATUBA PARTICIPAÇÕES LTDA and 40% of EMBU S.A. for an initial consideration of $176.9 million[141]. - The total amount of guarantees provided by the company to subsidiaries reached RMB 1.165 billion during the reporting period, with a total guarantee amount of RMB 11.263 billion, accounting for 32.28% of the company's net assets[144].

Financial Performance - In FY2024, the Group achieved revenue of HK$121.6 million, a 7.4% increase year-on-year, with gross profit rising by 52.5% to HK$62.0 million, resulting in a gross profit margin of 51.0%[31][35]. - The Group's net loss for FY2024 was HK$9.3 million, compared to HK$8.1 million in FY2023, primarily due to increased tax liabilities[31][35]. - Total revenue increased by HK$8.3 million or 7.4% to HK$121.6 million for FY2024 compared to HK$113.3 million for FY2023, driven by the full operation of the Bangka Project and the data centre in Jambi[42][45]. - Gross profit increased by HK$21.4 million or 52.5% from HK$40.7 million for FY2023 to HK$62.0 million for FY2024, with gross profit margin rising from 35.9% to 51.0%[47][52]. - Profit before tax increased by HK$0.5 million or 65.0% to HK$1.2 million for FY2024, reflecting improved financial performance[59][65]. - Loss attributable to owners of the Company increased by HK$0.4 million or 5.6% to HK$8.7 million for FY2024, influenced by the factors mentioned above[61][67]. Operational Developments - In FY2024, the wastewater treatment facility operated by Rugao Hengfa will expand its capacity from 40,000 tonnes to 50,000 tonnes per day, ensuring compliance with higher environmental standards[14]. - The Bangka biomass power plant in Indonesia commenced operations in late July 2024, securing a 25-year fixed-price agreement with PLN, providing a stable revenue stream[15]. - The company is progressing with the strategic divestment of an 80% interest in the wood pellet production business of RPSL, with completion expected in the first half of 2025[15]. - RPSL's data center business has emerged as a growing revenue contributor, providing steady cash flow to the Group in FY2024[15]. - The planned disposal of an 80% interest in the wood pellet production business remains pending due to government approval delays, with completion aimed for the first half of 2025[26][39]. Financial Management - The company aims to reduce debt and improve operational efficiency while exploring new growth opportunities in wastewater treatment and renewable energy[19]. - As of December 31, 2024, total utilized bank borrowings were HK$75.4 million, with a gearing ratio increasing from 66.0% in FY2023 to 80.0% in FY2024[33][36]. - The Group is focused on reducing debt and interest expenses while managing financial leverage to ensure long-term sustainability[40][41]. - Administrative expenses rose by 28.8% from HK$26.5 million in FY2023 to HK$34.1 million in FY2024, driven by higher staff costs and legal fees[32][35]. - Finance costs decreased slightly by HK$0.6 million or 4.7% to HK$12.1 million for FY2024, mainly due to lower interest on loans from related parties[58][64]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report highlights its commitment to sustainable development and adherence to reporting principles such as materiality and consistency[110]. - The Group has established risk management mechanisms to identify, evaluate, manage, and monitor material ESG risks[136]. - The Group's sustainability strategies focus on four pillars: Corporate Governance, Creating Green Fortune, Caring Our People, and Contributing to the Community[140]. - The Group actively engages with stakeholders, including contractors, shareholders, investors, and local communities, to gather feedback on operations and sustainable development performance[145]. - The Group aims to strengthen climate resilience in operations and solutions towards a greener future[142]. Wastewater Treatment and Biomass Power Generation - The wastewater treatment facility in Jiangsu Province has a daily treatment capacity of 40,000 tonnes, with an expected total wastewater treated of 14,410,153 tonnes in 2024, and a chemical oxygen demand (COD) removal of 4,465 tonnes[119]. - The biomass power plant in Bangka, Indonesia, is projected to generate 30,995,484 kWh of electricity in 2024, with 27,670,202 kWh expected to be exported to the national electricity company (PLN) in the same year[119]. - The wastewater treatment processes include filtration, sedimentation, adjustment, acidification, anaerobic treatment, and sterilization, ensuring compliance with local standards[123]. - The company has obtained necessary Pollutant Emission Permits and conducts daily water quality monitoring to ensure treated wastewater meets required standards[124]. - The company promotes the reuse of treated wastewater for equipment cleaning purposes to conserve water resources[167]. Employee and Organizational Development - As of December 31, 2024, the Group had 302 employees, an increase from 176 employees as of December 31, 2023[93]. - Employee costs for FY2024 amounted to approximately HK$16.3 million, compared to HK$15.5 million for FY2023, reflecting a year-on-year increase of about 5.2%[93]. - The Group encourages employee self-development and provides on-the-job training, linking bonuses to both group and individual performance[93]. - The Group strictly adheres to employment-related regulations and reported no significant violations in areas such as compensation, recruitment, and equal opportunities during the reporting period[195]. - The employee distribution by age shows that 111 employees are 30 or below, 66 are between 31-40, 22 are between 41-50, and 22 are 51 or above[199].

Financial Performance - The consolidated revenue for the year ended December 31, 2024, was $2,185.4 million, representing a 2.0% increase from $2,141.8 million in 2023[14]. - The actual attributable revenue from the company, subsidiaries, and associates decreased by 4.2% to $2,653.6 million from $2,769.2 million in the previous year, primarily due to a significant drop in revenue from properties held for sale, which fell 73.9% from $185.5 million to $48.5 million[14][16]. - The company's attributable profit from operating activities was $115.9 million, down 10.2% from $129.0 million in 2023, mainly due to the decrease in attributable earnings before interest, tax, depreciation, and amortization[16]. - The total attributable profit for the company was $161.4 million, a decrease of 12.3% compared to $184.1 million in the previous year, reflecting a reduction in net income from non-operating items[16]. - The earnings per share decreased by 12.2% to $4.54 from $5.17 in 2023[14]. - The net asset value attributable to the company’s owners was $5,183.5 million, a slight decrease of 0.7% from $5,222.4 million in the previous year[14]. - The actual attributable earnings before interest, tax, depreciation, and amortization for the company, subsidiaries, and associates was $760.1 million, down 13.0% from $873.6 million in 2023[14][16]. - The company recorded a favorable foreign exchange gain of $13.3 million compared to a foreign exchange loss of $14.3 million in the previous year, which mitigated some of the negative impacts on profit[16]. - The operating expenses of the hotel operations segment normalized during the year, contributing to the overall financial performance[16]. - The group’s consolidated EBITDA was $503.9 million, a decrease of 3.5% compared to the previous year[74]. - Free cash flow surged from $145 million to $273 million, marking an impressive increase of 88.7%, reaching a historical high[74]. - The total profit attributable to the company's owners after accounting for non-operating items for the year ended December 31, 2024, was $161.4 million, a decrease of 12.3% compared to $184.1 million for the year ended December 31, 2023[194]. - The total profit before interest, tax, depreciation, amortization, and non-operating items for the year ended December 31, 2024, was $760.1 million, down 13.0% from $873.6 million for the year ended December 31, 2023[192]. Dividends and Shareholder Returns - The board proposed a final dividend of HK$0.10 per share for 2024, down from HK$0.15 per share in 2023, resulting in a total dividend of HK$0.15 per share for the year[15]. - The company announced a full-year dividend of HKD 0.15 per share, totaling approximately $70 million, with a payout ratio of 60% of operating profit after tax and minority interests[74]. Market Expansion and New Initiatives - The company launched a global online meeting room booking platform, enhancing event planning efficiency with access to over 300 meeting rooms across more than 100 hotels[38]. - The company opened the Shenzhen Nanshan Shangri-La hotel on January 31, featuring 272 elegantly decorated rooms, marking its expansion in a key market[34]. - The company introduced 21 family-themed rooms and suites at the Hong Kong Island Shangri-La, redefining luxury family vacations[35]. - The company plans to expand its dual-brand strategy with the opening of the Kunming JEN hotel, showcasing a modern and sustainable space[41]. - The company opened the Fuzhou Shangri-La Center, which began contributing additional revenue in the second half of 2023 and the commercial portion opened in the first half of 2024[167]. Sustainability and Corporate Responsibility - The company’s "Taste of Nature" program, involving 94 hotels, promotes sustainable sourcing and local produce, highlighting its commitment to sustainability[43]. - Shangri-La Group's "Humanitarian Care" project supports underprivileged children through educational activities and fundraising initiatives on World Children's Day[65]. - The group launched various meaningful activities for Breast Cancer Awareness Month, promoting early detection and treatment globally[56]. - The "Rasa Ria Reserve After Dark: The Glow Experience" at Rasa Ria Shangri-La showcases newly discovered bioluminescent mushrooms, enhancing guest experiences while promoting sustainable tourism[68]. - The reopening of Shangri-La Mauritius after renovations showcases modern design and sustainable practices, featuring five new restaurants and bars[58]. Awards and Recognition - Shangri-La Group received multiple awards in 2024, including "Best Business Hotel Brand" from Business Traveller Asia-Pacific and UK, and "Best Restaurant and Hotel Group" from "Feast China" awards[71]. - Shangri-La's "Shangri-La Circle" won four awards at the 2024 MARKETING-INTERACTIVE DigiZ Awards, recognizing its commitment to seamless digital experiences and innovative marketing solutions[53]. Debt and Financial Management - The company reported a weighted average debt maturity of 3.47 years, indicating a manageable debt profile[27]. - The company aims to enhance its asset-liability management through the issuance of Panda bonds, further diversifying its funding sources[45]. - As of December 31, 2024, the net borrowings of the group were $4,421,300,000, a decrease of $296,300,000 from $4,717,600,000 as of December 31, 2023, attributed to strong cash flow from operations[196]. - The debt-to-equity ratio improved from 86.3% as of December 31, 2023, to 81.3% as of December 31, 2024, reflecting the reduction in net borrowings[196]. - The group secured approximately $1,784,000,000 in bank loan agreements during the year for refinancing maturing loans, with a focus on utilizing RMB financing[196]. - As of December 31, 2024, RMB borrowings accounted for 53% of the group's total borrowings, enhancing financial flexibility and reducing reliance on traditional financing channels[198]. - The group held approximately $4,200,000,000 in sustainable development-related bank loans as of December 31, 2024, linked to various sustainability performance targets[198]. Hotel Operations and Performance - The company operated a total of 106 hotels with 42,600 rooms as of December 31, 2024, including 84 owned/leased hotels and 22 managed hotels[157]. - The group has 5 hotels under development, with 2 in the pipeline for opening in 2024[157]. - The total floor area of investment properties operated by the group is 1,189.4 thousand square meters, with 887.4 thousand square meters for office space and 399.1 thousand square meters for commercial space[160]. - The group has a diversified portfolio including Shangri-La Hotels, Kerry Hotels, and JEN Hotels[159]. - The group has a significant presence in China, with 20.0-100.0% ownership in various properties totaling 984.9 thousand square meters[160]. - The group’s investment properties in Malaysia cover a total area of 45.2 thousand square meters, with a 52.78% ownership stake[160]. - The weighted average occupancy rate for the group's hotels was 63% for the year ended December 31, 2024, up from 62% in 2023[173]. - Average revenue per room (RevPAR) remained stable at $108 for the year ended December 31, 2024, compared to $108 in 2023[173]. - Total revenue from hotel management and related services increased by 15.2% to $258.4 million for the year ending December 31, 2024, compared to $224.3 million for the year ending December 31, 2023[185]. - The net revenue from hotel management and related services increased by 3.6% to $98.2 million for the year ending December 31, 2024, from $94.8 million for the year ending December 31, 2023[185]. Regional Performance - Hong Kong's hotel revenue increased by 5.8% to $321.9 million, with an occupancy rate of 80%, up 10 percentage points from 70% in 2023[173][174]. - In mainland China, hotel revenue decreased by 6.7% to $655.2 million, with an occupancy rate of 64%, up 1 percentage point from 63% in 2023[174]. - Malaysia's hotel revenue increased by 6.9% to $112 million, with an occupancy rate of 66%, up 2 percentage points from 64% in 2023[177]. - The Philippines saw a 16.0% increase in hotel revenue to $156.5 million, despite a decline in occupancy rate to 55%[178]. - Japan's hotel revenue increased by 2.4% to $51.6 million, with an occupancy rate of 68%, up 7 percentage points from 61% in 2023[179]. - France's hotel revenue increased by 5.5% to $57.5 million, with an occupancy rate of 45%, up 2 percentage points from 43% in 2023[180]. - Australia's hotel revenue increased by 2.9% to $88.2 million, with an occupancy rate of 84%, up 3 percentage points from 81% in 2023[181]. - The occupancy rate in the UK for the year ending December 31, 2024, increased by 2 percentage points to 68% from 66% for the year ending December 31, 2023[182]. - Revenue per available room (RevPAR) in the UK decreased by 1% to $519 for the year ending December 31, 2024, compared to $526 for the year ending December 31, 2023[182].