Sales Performance - In 2024, the Group recorded pre-sales of properties and car park units totaling approximately HK$784.5 million, an increase of 30.6% from HK$600.4 million in 2023[21]. - The total pre-sold gross floor area (GFA) was approximately 14,269 sq.m., an increase of approximately 89.2% from 2023[68]. - The average selling price (ASP) of pre-sold properties in 2024 was approximately HK$54,649.9 per sq.m., a decrease of approximately 30.3% compared to HK$78,355.4 per sq.m. in 2023[68]. - For the year ended December 31, 2024, the Group achieved property sales revenue (excluding car park sales) of approximately HK$804.3 million, with a saleable GFA of approximately 8,644 sq.m., representing increases of approximately 99.9% and 41.1% respectively compared to the previous year[74]. - Property sales revenue amounted to approximately HK$806.8 million, representing about 58.9% of total revenue, with a significant increase of approximately 99.0% compared to the previous year[98][101]. Rental Income and Occupancy - Rental income from investment properties was approximately HK$223.1 million in 2024, up by 2.7% from HK$217.2 million in 2023[21]. - The overall occupancy rate of the Group's investment properties was approximately 88.0% as of December 31, 2024[21]. - The average monthly rental income for the Group's investment properties was approximately HK$84.2 per sq.m. for the year ended December 31, 2024, compared to approximately HK$69.3 per sq.m. in the previous year[82]. - The occupancy rate of the Group's investment properties increased from approximately 82.5% as of December 31, 2023, to approximately 88.0% as of December 31, 2024[82]. - The average occupancy rate of Top Spring Commercial's projects was 90% as of the end of 2024, with 164 merchants signed throughout the year, representing a year-on-year increase of approximately 21.7% in rented area[39]. Property Development and Land Bank - The Group's land reserve across 17 property projects amounted to approximately 402,853 square meters as of December 31, 2024[21]. - The land reserve strategy focuses on the Greater Bay Area and first-tier cities such as Shenzhen, Shanghai, and Hong Kong[21]. - The total area of managed properties reached approximately 13.22 million square meters, with about 8.99 million square meters being properties not developed by the Group[21]. - The Group's strategic focus includes synergistic development of diversified businesses alongside its core real estate business[50]. - The Group plans to continue acquiring land with investment potential, particularly in economically vibrant areas with growth potential, such as the Greater Bay Area and Shanghai[91]. Financial Performance - The Group's consolidated revenue for the year ended December 31, 2024, reached approximately HK$1,369.3 million, an increase of approximately 43.5% compared to HK$954.3 million in 2023[95][100]. - The Group recorded a gross loss of approximately HK$116.8 million for the year, with a gross loss margin of approximately 8.5%, improved from a gross loss margin of approximately 26.6% in 2023[104][108]. - Direct costs increased to approximately HK$1,486.1 million, up from approximately HK$1,208.1 million in 2023, primarily due to increased property sales[103]. - The Group recorded an investment property valuation loss of approximately HK$1,195.9 million, a significant decline from a valuation gain of approximately HK$14.4 million in 2023[113]. - The Group's financing costs decreased by approximately 5.3% to approximately HK$303.2 million, attributed to the repayment of certain bank loans[114]. Market Conditions and Strategy - Over 700 policies have been introduced across various regions in 2024 to stabilize the real estate market, aiming for a "stop the decline and stabilize" policy goal[29]. - The Group is confident in Hong Kong's pivotal role in the Greater Bay Area and aims to leverage investment opportunities in high-end boutique properties[48]. - The Group aims to balance cash flow and profit in its commercial business while optimizing the portfolio to maximize asset returns[41]. - The Group is actively promoting the establishment of unmanned aerial vehicle landing sites in Yangpu District, enhancing the brand influence and competitiveness of the urban industrial community[32]. - The Group aims to capture business breakthroughs and growth points by integrating resources and investing prudently in line with market dynamics and industry trends[50]. Employee and Administrative Costs - As of December 31, 2024, the Group employed approximately 754 employees, a decrease from 851 employees as of December 31, 2023, representing a reduction of about 11.4%[159]. - Total staff and related costs for the year ended December 31, 2024, were approximately HK$196.9 million, down from approximately HK$218.6 million for the year ended December 31, 2023, indicating a decrease of about 9.9%[159]. - Administrative expenses increased by approximately 11.9% to approximately HK$197.8 million for the year ended 31 December 2024 from approximately HK$176.8 million for the year ended 31 December 2023[117]. Investment Properties - As of December 31, 2024, the total fair value of the Group's investment properties was approximately HK$6,378.4 million, accounting for about 38.4% of the Group's total assets[80]. - The Group recorded a loss in fair value of investment properties of approximately HK$915.9 million for the year ended December 31, 2024, compared to a gain of approximately HK$13.2 million in the previous year[80]. - The Group's investment property portfolio had a total leasable GFA of approximately 301,768 sq.m.[80]. - The proportion of leased area occupied by major tenants increased from approximately 29.6% to approximately 37.9% year-on-year[81]. - The Group's properties held for investment include 302,892 sq.m. of retail/office space and 574 sq.m. of campus space[65].

Financial Performance - In 2024, the Company recorded total operating revenue of RMB1,594.2 million, representing a decrease of 11.8% compared to 2023[9]. - The net profit attributable to shareholders was approximately RMB263.2 million, reflecting a decrease of 16.8% from 2023, with basic earnings per share at approximately RMB0.26[9]. - Revenue for the year ended December 31, 2024, was RMB 1,594,164,000, a decrease of 11.8% from RMB 1,807,488,000 in 2023[50]. - Operating profit for 2024 was RMB 524,908,000, down 14.7% from RMB 615,595,000 in 2023[50]. - Profit for the year decreased to RMB 263,928,000 in 2024, compared to RMB 317,727,000 in 2023, reflecting a decline of 16.9%[50]. - Gross profits decreased by RMB84.5 million, or 10.6%, to RMB713.7 million for the year ended December 31, 2024, from RMB798.2 million for the year ended December 31, 2023[98]. - Revenue from wastewater treatment services accounted for 72.3% of total revenue, while reclaimed water and running water supply accounted for 10.9% and 16.8%, respectively[98]. Operational Efficiency - The company enhanced production and operational efficiency through facility upgrades, energy conservation, and management level compression[13]. - The company plans to enhance operational efficiency and expand market presence through strategic initiatives[47]. - The company aims to strengthen governance capabilities and enhance quality and efficiency while responding to economic uncertainties[23]. - The company will focus on its core business of wastewater treatment, enhancing operational quality and efficiency through digitalization and technological innovation[24]. - The company aims to accelerate the integration of digitalization, intelligence, and greening with traditional industries, promoting the digital economy and building smart water plants[27]. Strategic Focus and Development - The Company maintained a strategic focus on ecological civilization construction and adhered to national strategic tasks such as the "dual carbon" goals[8]. - The Company emphasized reforms and innovations to promote high-quality sustainable development amid a complex economic environment[9]. - The Company aims to achieve high-quality sustainable development through strategic focus and innovation[8]. - The company is committed to the development idea that "lucid waters and lush mountains are invaluable assets" as part of its long-term strategy[8]. - The company will continue to adhere to the work guideline of "seeking progress while maintaining stability" and actively respond to the national green development strategy[26]. Risk Management - The Company actively worked to prevent and resolve material risks while continuing to reduce costs and increase efficiency[9]. - The company emphasizes the importance of risk management and safety in its operational strategy[26]. - The company plans to enhance governance capabilities and prevent major risks and external shocks while ensuring stable development[26]. Market and Industry Trends - The wastewater treatment industry is transitioning to a "quality era," focusing on refinement, low-carbon, intelligence, and resource utilization[54]. - The wastewater treatment industry in China is transitioning towards systematic quality and efficiency improvements, with a focus on enhancing existing capacities and optimizing new ones[58]. - The government has issued several policies, including the "14th Five-Year Plan" for urban wastewater treatment, aiming for a comprehensive development approach to address existing gaps in infrastructure and service quality[60]. - The market for sewage treatment services is projected to expand significantly across metropolises, small and medium-sized cities, and rural areas due to increasing industrialization and urbanization[61]. Asset Management - Total assets increased to RMB 12,383,952,000 in 2024, up from RMB 12,063,850,000 in 2023, representing a growth of 2.6%[52]. - Total liabilities rose slightly to RMB 7,141,659,000 in 2024 from RMB 7,086,546,000 in 2023, an increase of 0.8%[52]. - The company is directly owned approximately 84% by Kunming SASAC, indicating strong government backing[37]. - The company is not classified as a connected person under the Listing Rules, ensuring compliance with regulatory standards[37]. Cash Flow and Financing - Net cash from operating activities increased by RMB 72.9 million from RMB 220.9 million in 2023 to RMB 293.8 million in 2024, primarily due to increased cash receipts from enterprises[137][141]. - Net cash from investing activities decreased by RMB 228.2 million from RMB 303.8 million in 2023 to RMB 75.7 million in 2024, mainly due to reduced proceeds from the disposal of subsidiaries[139][142]. - Total borrowings decreased by RMB682.9 million to RMB4,589.2 million as of December 31, 2024, mainly due to fewer construction projects and timely repayment of borrowings[192]. - The net gearing ratio as of December 31, 2024, was 46.5%[89]. Shareholder Relations - The company expresses gratitude to shareholders, investors, customers, partners, and friends for their long-term support and trust[29].

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 89,099,000, a decrease of 2.4% compared to HKD 91,244,000 in 2023[6]. - The company reported a net loss attributable to shareholders of HKD 33,765,000 for 2024, a reduction of 49.2% from a loss of HKD 66,449,000 in 2023[7]. - The company's gross profit margin improved from -33.8% in the previous year to 0.4% this year, marking a successful turnaround from loss to profit[17]. - The company reported a loss for the year of HKD 33,765,000, compared to a loss of HKD 66,449,000 in 2023, indicating a significant reduction in losses[55]. - Operating loss for the year was HKD 33,597,000, an improvement from a loss of HKD 65,931,000 in 2023[55]. - The total comprehensive loss for the year was HKD 67,102,000, which includes a loss of HKD 66,449,000 and other comprehensive expenses[149]. Revenue and Sales - The total sales volume of cowhide leather decreased by 14.1% to 5,343 thousand square feet in 2024 from 6,219 thousand square feet in 2023[6]. - Total revenue for the year was HKD 89,099,000, a decrease of 2.4% from HKD 91,244,000 in the previous year[19]. - The company achieved a significant increase in external processing revenue, which rose by 311.2% to HKD 37,762,000[19]. - The company aims to expand its self-operated business into the Southeast Asian market to increase export sales of leather and improve revenue and gross profit[11]. Cost Management and Efficiency - The company is committed to strengthening cost control and energy-saving measures to enhance operational efficiency amid a complex economic environment[12]. - The company implemented cost reduction measures, resulting in a 59.9% decrease in total procurement amounting to HKD 30,898,000[22]. - The company plans to closely monitor production costs and general administrative expenses to improve cash flow and working capital[154]. Assets and Liabilities - The net asset value of the company as of December 31, 2024, was HKD 19,061,000, a decrease from HKD 52,911,000 in 2023[14]. - Total assets decreased to HKD 97,154,000 in 2024 from HKD 135,537,000 in 2023, representing a decline of approximately 28%[56]. - Total liabilities decreased to HKD 78,093,000 in 2024 from HKD 82,626,000 in 2023, a reduction of about 5%[56]. - The company's total liabilities decreased to HKD 73,590,000 in 2024 from HKD 77,951,000 in 2023, showing a slight improvement in debt management[148]. Inventory and Production - The company's inventory as of December 31, 2024, was HKD 24,048,000, down 52.3% from HKD 50,457,000 a year earlier[23]. - The production of cowhide leather decreased by 27.9% to 3,325,000 square feet, while the production of external processing business surged by 403.3% to 18,965,000 square feet[18]. Corporate Governance - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a high level of independence for effective judgment[91]. - The company has appointed independent non-executive directors with extensive experience in finance and management to strengthen governance[36][37]. - The board adopted a diversity policy on August 23, 2013, recognizing the benefits of a diverse board for achieving strategic goals and sustainable development[100]. Environmental and Compliance Efforts - The company is actively investing in environmental improvement projects and enhancing communication with local government to ensure compliance with environmental regulations[50]. - The company has complied with environmental standards and obtained necessary permits for its operations during the year[128]. - The company is committed to improving production technology and waste management to address environmental compliance risks[50]. Future Plans and Strategies - The company plans to enhance its leather business transformation and upgrade its external processing business model to improve production conditions and customer service[11]. - The company will focus on developing the "cowhide dog chew" business to tap into the pet food market, with plans to modify idle factory space for mass production[11]. - The company is exploring new opportunities in the pet market by developing a new product using by-products from leather processing, aiming to enhance resource utilization[21]. Employee and Shareholder Information - The group had 261 employees as of December 31, 2024, a decrease from 288 employees in the previous year[29]. - Major shareholders include Guangdong Nanyue Group Co., Ltd. with a 52% stake and Guangdong Yuehai Holdings Group Co., Ltd. with a 19.34% stake[73]. - The company encourages shareholders to opt for electronic communication to support environmental protection initiatives[126]. Risk Management - The company faces market risks due to ongoing industry pressures, including a decline in demand for leather products and increasing environmental compliance requirements[49]. - The company monitors raw material prices closely to mitigate inventory impairment risks and improve cash flow management[51]. - The company is focused on maintaining liquidity to manage risks associated with potential defaults from downstream customers due to market demand shrinkage[52].

Financial Performance - In 2024, the company achieved a sales revenue of RMB 3.78 billion, a decrease of 16.4% year-on-year[12] - Net profit for 2024 was RMB 840.05 million, down 13.4% compared to the previous year[12] - The company's total assets increased to RMB 10.04 billion in 2024, while total liabilities rose to RMB 2.57 billion[6] - The gross profit margin for 2024 was impacted by ongoing healthcare cost control policies and increased market competition[13] - In 2024, the overall sales revenue decreased by approximately 16.4% to RMB 3,778,043,000, while net profit fell by 13.4% to RMB 840,052,000[19] - The company recorded a gross margin of 75.0%, with a slight decrease of 0.1 percentage points compared to the previous year, and a net profit margin increased from 21.5% to 22.2%[19] - The company generated free cash flow of approximately RMB 823,023,000, equivalent to RMB 1.00 per share, after capital expenditures of about RMB 140,112,000[20] - The company’s second interim dividend for the fiscal year 2024 was reduced by 13.0% to RMB 0.47 per share, with a payout ratio of 42.3%[20] - The company reported a profit attributable to shareholders of RMB 840,052,000 in 2024, a decrease of approximately 13.4% compared to 2023[63] - Other income increased to RMB 174,094,000 in 2024 from RMB 143,257,000 in 2023, primarily from development funds for R&D and investments[56] - Investment income rose to RMB 176,718,000 in 2024, up from RMB 95,207,000 in 2023, reflecting higher interest income from bank deposits and structured deposits[57] Product Performance - The company is actively adjusting its product structure to focus on high-efficiency, low-cost, and quality pharmaceuticals[14] - Injection products saw a significant decline of 29.0% in sales, with Qingkailing injection experiencing a 40.8% drop to RMB 504,029,000[22] - Oral products, which represent 66.4% of total sales, recorded an overall decline of 8.1%, primarily due to high base effects from the previous year[23] - The sales of soft capsules decreased by 14.9%, attributed to a drop in demand for respiratory medications, with Qingkailing soft capsules down 20.4% to RMB 69,788,000[23] - Granule products experienced a slight decline of 2.9%, with pediatric cough granules down 31.4% to RMB 66,874,000, while exclusive oral granules showed growth[24] - The overall sales of basic drugs listed in the national essential drug list fell by 22.7% to RMB 1,348,062,000, with significant declines in Qingkailing injection and soft capsules[25] - The sales of traditional Chinese medicine formula granules dropped by 9.3% to RMB 1,090,116,000, accounting for 28.9% of total sales[29] - Exclusive oral prescription drugs saw a growth of 22.2%, with sales rising to RMB 543,922,000[28] - The company’s annual sales of respiratory prescription drugs for influenza reached RMB 745,758,000, a decrease of 32.3%, accounting for 19.7% of total sales[33] - The sales of cardiovascular injection prescription drugs declined by 23.8% to RMB 627,280,000, making up 16.6% of total sales[35] Strategic Initiatives - The company participated in national centralized procurement for traditional Chinese medicine, aiming to lower costs and enhance competitiveness[14] - The company is strengthening collaborations with medical institutions and distributors to expand sales channels and market share[14] - The company is committed to enhancing internal management and optimizing production processes to maintain stable profitability despite market challenges[13] - The company plans to enhance management and operational efficiency in response to the industry's transformation challenges in 2025[16] - The company is constructing a smart manufacturing demonstration factory, expected to generate an additional annual output value of RMB 7 billion upon completion[16] - The company anticipates continued growth in sales of drugs listed in the national essential drug list due to government initiatives[27] - The company aims to enhance the sales of exclusive oral products through increased terminal investment and academic promotion[38] Research and Development - The group invested 2.7% of total sales revenue in R&D during the year, focusing on modern Chinese medicine for chronic diseases[42] - The group is conducting clinical trials for innovative drugs, with two exclusive drugs, "Sailuotong Capsules" and "JC Capsules," having completed Phase III trials and expected to submit production license applications by the end of the year[40] - The classic formula "Yigong San Granules" has entered Phase II clinical trials, targeting chronic disease anemia, with no clear treatment options currently available in the market[45] - The group has submitted six applications for the registration of 3.1 category traditional Chinese medicine new drugs, the highest number in the country for this category[44] - The company completed the III phase clinical trial for the JC capsule, expected to obtain production approval by 2026[34] - The company has been awarded 35 patents, including PCT patents, and has established research centers in Hebei and Yunnan[30] Corporate Governance - The company is committed to corporate governance standards that emphasize transparency, accountability, and fairness[170] - The board consists of three executive directors, three independent non-executive directors, and one non-executive director as of December 31, 2024[175] - The company has adopted a higher standard code for securities trading by directors than that specified in the listing rules, ensuring compliance by all directors for the year ending December 31, 2024[172] - The board has established mechanisms to ensure independent viewpoints and will review these mechanisms annually[177] - The company has implemented a responsibility insurance for its directors and senior management to cover liabilities arising from corporate activities[176] - The company has established a remuneration committee, which has met twice during the year to evaluate the performance of executive directors and discuss contract renewals[192] - The company has adopted a whistleblowing policy to provide guidance and reporting channels for employees and third parties to report suspected misconduct[188] - The company confirms that the roles of the chairman and CEO are distinct, with the current chairman also serving as president, a structure deemed beneficial for executing business strategies[184] Market Conditions - The overall industry is experiencing a decline in revenue and profit levels, but there are new development opportunities due to government support for traditional Chinese medicine[13] - The company is closely monitoring regulatory changes in China’s healthcare reform, which could affect its operations and compliance requirements[96] - The company has identified major risks and uncertainties that could impact its performance, including regulatory changes in the healthcare and pharmaceutical sectors in China[94] Related Party Transactions - The company entered into a technical service contract with a related party, with a total contract value of RMB 14,000,000, extended for an additional year until November 4, 2025[139] - The annual rent for a land lease agreement with a related party is RMB 1,600,000, covering an area of approximately 49,276 square meters for three years[140] - The annual rent for another land lease agreement with a related party is RMB 1,200,000, covering an area of approximately 20,986 square meters for three years[141] - The total transaction amount for a general service contract with a related party is RMB 11,832,000, with an annual cap of RMB 12,500,000[146] - The independent non-executive directors have reviewed the related party transactions and confirmed that they comply with the pricing policies and internal control procedures[154] Shareholder Information - As of December 31, 2024, the major shareholder, Fuhui Investment Limited, holds 546,802,990 shares, representing approximately 66.12% of the company's total shares[115] - The company will suspend the registration of share transfers from May 6, 2025, to May 7, 2025, to determine shareholders' rights to the first interim dividend for the year ending December 31, 2025[167] - The company will also suspend the registration of share transfers from May 22, 2025, to May 29, 2025, for the annual general meeting, requiring all transfer documents to be submitted by May 21, 2025, at 4:30 PM[167]

Business Development and Partnerships - The company has established a 15-year supply agreement with Suneva Medical, Inc. for the Belotero product line, granting exclusive distribution rights in Greater China[7] - A 15-year supply agreement was reached with Suneva Medical, Inc. for the sale of Belifil collagen products in January 2024[18] - The company has entered into a supply agreement for the acquisition of distribution rights for the Belifill product and Suneva equity[82] - The company has entered into a conditional agreement to acquire up to 9.0% equity in Hangzhou Tianxin Medical Beauty Hospital for a maximum consideration of RMB 25.0 million[81] Financial Performance - The company achieved total revenue of approximately RMB 199.3 million for the year ended December 31, 2024, representing a year-on-year increase of 5.3% compared to RMB 189.4 million in 2023[21] - The gross profit margin for 2024 was approximately 35.8%, down from 37.8% in 2023, with the gross profit margin for medical beauty device sales at 65.9%, down from 75.6% in 2023[21] - The company reported a net loss of approximately RMB 63.3 million for the year, compared to a net loss of RMB 37.8 million in 2023, with a loss attributable to shareholders of approximately RMB 59.2 million, up from RMB 32.5 million in 2023[21] - The company's total revenue for 2024 is approximately RMB 199.3 million, representing a 5.3% increase from RMB 189.4 million in 2023[32] - Revenue from medical beauty services was approximately RMB 142.1 million in 2024, a decrease of 18.8% from RMB 174.9 million in 2023[53] - Revenue from medical beauty equipment products reached RMB 57.2 million in 2024, a significant increase from RMB 14.5 million in 2023[32] Market Trends and Growth Potential - Revenue from minimally invasive medical beauty services is showing significant growth, reflecting higher market demand[7] - The market for non-surgical medical beauty procedures is expected to grow steadily, with increasing penetration rates in China[20] - The domestic market for skin fillers, particularly collagen fillers, shows significant growth potential due to the increasing demand for anti-aging solutions[28] - The company recognizes the growing consumer interest in light medical beauty and anti-aging treatments, which are becoming increasingly popular due to their affordability and minimally invasive nature[101] Research and Development - The company is actively developing new skin injection filler products in collaboration with renowned domestic universities, aiming to enhance its product offerings[7] - The company is increasing investment in research and development for new medical beauty devices, aiming to cover the entire industry chain from downstream to upstream[22] - The company is accelerating the research and development of its collagen injection products, with an investment of approximately RMB 4.5 million in 2024[34] - The company plans to focus on developing non-surgical medical beauty services, increasing investment in technology and research, and enhancing sales and R&D of three categories of medical beauty equipment[101] Operational Efficiency and Strategy - The company aims to optimize its sales network by increasing the number of direct sales teams and agents, with a focus on improving operational efficiency[27] - The company plans to enhance its non-surgical service offerings, focusing on minimally invasive procedures that are gaining popularity among consumers[35] - The company is considering strategic acquisitions of medical beauty institutions or medical device companies to strengthen its market position[41] - The company plans to expand its medical beauty institution network, allocating 71.0% of the net proceeds amounting to HKD 58.0 million, with HKD 49.4 million already utilized and HKD 8.6 million expected to be used by 2025[89] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all applicable provisions during the year[123][124] - The board consists of three executive directors and three independent non-executive directors, promoting a balanced composition for effective oversight[130] - The company emphasizes a strong corporate culture and values, focusing on ethical business practices and sustainable development to attract and retain talent[125] - The company will conduct annual reviews of its internal controls and compliance systems to prevent future regulatory breaches[98] Employee and Stakeholder Engagement - The company has committed to competitive compensation and professional development for its medical staff, with annual performance reviews influencing salary and bonus determinations[87] - The company emphasizes two-way communication with shareholders and has established various channels for transparent information dissemination[185] - The performance bonus structure is based on both company and individual performance metrics[186] - The company has appointed a dedicated investor relations team to facilitate communication with shareholders and investors, emphasizing the importance of feedback for strategic development[103] Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's performance in sustainability, environmental protection, employee care, and corporate responsibility for the year 2024[196] - The company has established policies related to environmental, social, and corporate governance responsibilities to enhance its ESG governance[200] - The company is committed to understanding stakeholder expectations and concerns regarding ESG issues to optimize its governance and performance[200] - The company has implemented appropriate ESG risk management measures and internal control systems to address potential ESG risks effectively[200]

Financial Performance - The company achieved a revenue of HKD 2,745.5 million for the fiscal year 2024, representing a year-on-year growth of 30.5%[13] - EBITDA increased by 53.6% to HKD 207.4 million, indicating a significant recovery in profitability[13] - In the fiscal year 2024, the company achieved a revenue of approximately HKD 2,745.5 million, representing a year-on-year growth of 30.5% compared to HKD 2,104.0 million in fiscal year 2023[21] - The company's EBITDA for fiscal year 2024 was approximately HKD 207.4 million, an increase of about 53.6% from HKD 135.1 million in fiscal year 2023, primarily due to a rebound in business operations[21] - The air freight agency business generated revenue of approximately HKD 1,178.6 million in fiscal year 2024, a 40.2% increase from HKD 840.5 million in fiscal year 2023[34] - The company's operations in China contributed revenue of HKD 638.1 million, reflecting a 32.0% increase from HKD 483.3 million in fiscal year 2023, driven by rising freight rates and increased air freight volumes[23] - The Italian office's revenue increased significantly by 56.9% to HKD 708.7 million in fiscal year 2024, up from HKD 451.6 million in fiscal year 2023[24] - The company's new branch, 嘉泓快递, generated approximately HKD 315.2 million in its first year of operation[29] - The cruise logistics segment contributed revenue of HKD 430.2 million, showing a stable year-on-year growth of 11.4% from HKD 386.4 million in fiscal year 2023[30] - The company's Vietnam office reported revenue of HKD 88.0 million, a growth of approximately 59.0% compared to the previous fiscal year[26] - The revenue from the shipping agency business for FY2024 was approximately HKD 780.4 million, an increase of about 64.4% compared to FY2023's HKD 474.7 million, with gross profit rising by approximately 92.5% to HKD 180.1 million[35] - The revenue from the cruise logistics segment for FY2024 was approximately HKD 430.3 million, an increase of about 11.4% from FY2023's HKD 386.4 million, while gross profit decreased to HKD 129.2 million from HKD 141.9 million[37] - The revenue from the wine distribution and logistics segment for FY2024 was approximately HKD 356.2 million, a decrease from FY2023's HKD 402.4 million, with gross profit declining by about 15.9% to approximately HKD 46.0 million[39] Strategic Initiatives - A new e-commerce logistics solution was launched targeting outbound logistics demand from Hong Kong and mainland China, integrating local transport, international freight forwarding, customs clearance, warehousing, and last-mile delivery services[13] - The acquisition of a major stake by DP World, a multinational logistics company based in Dubai, enhances the company's operational capabilities and financial strength[14][15] - Future strategies include expanding business through new office openings and leveraging DP World's network, as well as deploying automation and AI technologies to improve operational efficiency[16] - The company aims to explore new verticals for sustainable growth while reinforcing its existing business[16] - The logistics industry is expected to present new opportunities as the most challenging periods are gradually receding[16] - The company is optimistic about opportunities in the Southeast Asian market and is steadily increasing investments in the region to enhance scalability and profitability[28] - The partnership with DP World, which became a controlling shareholder in August 2024, is a strategic milestone aimed at expanding market presence and enhancing service excellence[57] Sustainability and Corporate Responsibility - The company is committed to sustainable development and green supply chain initiatives, actively promoting green logistics measures to reduce carbon footprint[15] - The company emphasizes its commitment to corporate social responsibility and environmental practices throughout its operations[15] - The company is committed to environmental protection and continues to implement energy-saving and emission reduction projects to improve environmental management[157] Shareholder Returns - The company plans to distribute a final dividend of HKD 0.01 per ordinary share to reward shareholders for their unwavering support[13] - The board proposed a final dividend of HKD 0.01 per share for the fiscal year 2024, totaling HKD 3,004,890, pending shareholder approval[61] - The company reported a final dividend of HKD 0.01 per ordinary share for the fiscal year 2024, totaling HKD 3,004,890, consistent with the previous fiscal year[85] - The board of directors emphasizes a stable and sustainable return for shareholders as a key objective in its dividend policy[86] Financial Position and Risks - As of December 31, 2024, the company's operating cash flow was approximately HKD 58.8 million, down from approximately HKD 100.0 million in FY2023[41] - The company's current ratio as of December 31, 2024, was 1.15, an improvement from 1.00 on December 31, 2023, with operating capital at approximately HKD 143.9 million compared to a negative HKD 3.0 million in the previous year[40] - The company's total bank loans and overdrafts as of December 31, 2024, were approximately HKD 384.1 million, an increase from approximately HKD 320.9 million on December 31, 2023[41] - The capital debt ratio as of December 31, 2024, was approximately 35.2%, up from 18.1% on December 31, 2023[41] - The company faced foreign exchange risks primarily from fluctuations in the Renminbi and Euro, with no specific hedging policies in place[42] Governance and Management - The company views employees as its most valuable asset and maintains good working relationships, with no labor disputes reported for the fiscal year 2024[92] - The company has established compliance and risk management policies, ensuring adherence to significant legal and regulatory requirements for fiscal year 2024[93] - The roles of the Chairman and CEO are held by different individuals to ensure balanced power and perspective, with Liu Shiyou as Chairman and Yan Tianrong as CEO[172] - The board of directors has complied with the requirement of having at least three independent non-executive directors, constituting at least one-third of the board[170] - The company has adopted share option and share award plans to provide incentives and rewards to selected participants, including designated employees[160] - The company has established a securities trading code that meets or exceeds standard requirements, with all directors confirming compliance during the fiscal year 2024[180] - The company has implemented an independent opinion mechanism to improve the efficiency and performance of the board[183] - The audit committee's responsibilities include reviewing the financial reporting system, internal controls, and risk management systems[199] Related Party Transactions - The DP World Group General Agency Agreement is effective from August 29, 2024, to December 31, 2026, with DP World being a related party due to its status as a major shareholder[146] - Independent non-executive directors have confirmed that the ongoing related party transactions are conducted in the ordinary course of business and on normal commercial terms[149] - The auditor has confirmed compliance with the disclosure requirements under the listing rules regarding related party transactions for the fiscal year 2024[150] - No significant contracts were entered into with the controlling shareholder or its subsidiaries during the fiscal year 2024, aside from those disclosed in the financial statements[152] Employee and Director Information - Employee costs for the fiscal year 2024 were approximately HKD 339.2 million, up from HKD 328.6 million in the previous fiscal year, with a workforce increase to 861 employees[59] - Ms. Chen has over 20 years of experience in sales and marketing within the freight forwarding industry, having joined the group in October 2001[64] - Ms. Morandin has over 40 years of experience in the Italian freight forwarding industry and was appointed as an executive director on December 22, 2021[66] - Mr. Di Nello has over 30 years of experience in the Italian freight forwarding industry and has been with the group since May 2012[67] - Mr. Varsamidis was appointed as a non-executive director on September 5, 2024, and has nearly 30 years of experience in financial management[68] - Mr. Lin has over 30 years of experience in accounting and finance and has been an executive director of Oriental Watch Holdings Limited since April 2003[70] - Mr. Chan has over 30 years of experience in private equity management and has been a partner at Hong Kong Sky Horizon Ventures since August 2024[72] Committees and Board Activities - The board has established five committees, including the remuneration committee and nomination committee, to oversee specific matters[184] - The remuneration committee is responsible for recommending the company's remuneration policies and structures to the board[185] - The nomination committee evaluates the board's structure and composition annually to align with the company's corporate strategy[189] - The audit committee held two meetings during the fiscal year 2024, reviewing the annual financial statements and interim financial reports[195] - The governance committee reviews compliance with legal and regulatory requirements, as well as the effectiveness of shareholder communication policies[198]

Company Performance and Strategy - The company reported a strong performance with a focus on customer experience and innovation, emphasizing its commitment to sustainable development [4]. - The company has received numerous awards for brand management, product design, and e-commerce platforms, highlighting its market leadership and commitment to quality [6]. - Despite the challenges, the company managed to reduce losses by nearly 50% compared to the previous year, reflecting effective management strategies [17]. - The company is focused on providing high-value solutions and after-sales services to meet evolving consumer demands, positioning itself for sustainable growth [20]. - The company remains cautiously optimistic about the economic outlook for the coming year, focusing on strict cost control and enhancing resilience and flexibility to seize market share expansion opportunities [25]. Retail Segment Performance - The retail segment, Pricerite, has successfully integrated online and offline resources, enhancing the omnichannel retail model and improving customer shopping experiences [5]. - The retail sector in Hong Kong faced a significant challenge, with retail sales dropping by 7.3% compared to last year, and furniture retail sales decreasing by 14.4% [17]. - The retail segment has been recognized with multiple awards, including the "Hong Kong Brand Development Council's Ten-Year Achievement Award" and "Outstanding Service Award" from the Hong Kong Retail Management Association [6]. - The retail sector faced significant challenges, with total retail sales in Hong Kong expected to decline by approximately 7.3% in value and 9.0% in volume for 2024, despite a 31.0% year-on-year increase in visitor numbers to about 44.5 million [28]. - The company expanded its "Lengthen and Shorten" furniture modification service, which is the most comprehensive among local retailers [47]. Financial Services and Investment Management - The financial services segment, Times Financial, has established wealth management centers in Hong Kong, Shanghai, Shenzhen, and Qingdao, with plans for further expansion in key economic regions [10]. - Times Financial has been a pioneer in fintech, launching the advanced mobile trading app Alpha i to enhance user experience and service quality [11]. - The company holds multiple licenses from the Securities and Futures Commission, including Type 1, 2, 4, and 9 licenses, ensuring comprehensive financial and wealth management services [9]. - The company aims to combine traditional finance with new financial assets to provide a comprehensive wealth management service [11]. - The company’s investment management business achieved revenue of HKD 6.9 million and a net profit of HKD 10.4 million for the year ending December 31, 2024, compared to revenue of HKD 4.7 million and a net profit of HKD 3.8 million in 2023, reflecting a strong performance amid market volatility [31]. Economic and Market Conditions - In 2024, Hong Kong's GDP growth rate is expected to slow down to 2.5%, down from 3.2% in 2023, with private consumption declining by 0.6% year-on-year [16]. - The company is closely monitoring trade barriers and tariff restrictions that may impact logistics, ensuring agility in response to challenges [21]. - The ongoing "home economy" trend is driving demand for furniture and home products as consumers prioritize enhancing their living environments over luxury purchases [20]. - The government plans to deliver 190,000 new residential units over the next five years, which is expected to create growth opportunities for the furniture and home improvement industry [20]. - The company is enhancing its business layout in the Greater Bay Area by improving logistics and procurement facilities, aiming to shorten delivery times and increase efficiency [18]. Environmental, Social, and Governance (ESG) Initiatives - The company actively engages in environmental protection initiatives, receiving recognition for its contributions to sustainability [7]. - The company is committed to sustainable development and has implemented various environmental, social, and governance initiatives during the fiscal year ending December 31, 2024 [168]. - The total greenhouse gas emissions decreased by approximately 11% during the reporting period, primarily due to the closure of three retail stores, which reduced electricity consumption [180]. - The company aims to reduce total greenhouse gas emissions intensity by 25% by 2025 compared to the baseline year of 2021 [180]. - The company has implemented energy-saving measures to address the primary source of greenhouse gas emissions, which comes from purchased electricity [180]. Corporate Governance and Board Structure - The company has adopted various policies to ensure compliance with the corporate governance code, fully adhering to the code provisions for the year ending December 31, 2024, with some exceptions noted [94]. - The board consists of five executive directors and three independent non-executive directors, ensuring over one-third of the board members are independent [99]. - The independent non-executive directors are required to confirm their independence annually and disclose any potential conflicts of interest [102]. - The board has established a risk management and internal control system to identify, assess, manage, and report significant risks, including strategic, operational, compliance, reporting, information technology, and environmental, social, and governance risks [145]. - The company emphasizes the importance of stakeholder engagement in assessing and prioritizing significant environmental, social, and governance issues [169].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported operating revenue of approximately RMB 2,132.4 million, an increase of about RMB 130.0 million or approximately 6.5% compared to RMB 2,002.4 million in 2023[13]. - The company's gross profit for the year was approximately RMB 324.1 million, a decrease of about 5.1% from RMB 341.4 million in the previous year, with a gross margin of approximately 15.2%, down from 17.1%[13]. - The net loss for the year was RMB 19,374 thousand, compared to a profit of RMB 22,414 thousand in 2023, indicating a significant turnaround in performance[157]. - Total revenue for the year ended December 31, 2024, was RMB 2,132,395 thousand, representing an increase of 6.5% compared to RMB 2,002,406 thousand in 2023[157]. - Gross profit decreased to RMB 324,104 thousand in 2024 from RMB 341,418 thousand in 2023, reflecting a decline of 5.1%[157]. - Operating cash flow before changes in working capital decreased to RMB 126,313 thousand in 2024 from RMB 174,151 thousand in 2023, a decline of approximately 27.5%[165]. - Net cash generated from operating activities fell to RMB 28,200 thousand in 2024 compared to RMB 167,590 thousand in 2023, representing a decrease of about 83.2%[165]. - The company reported a loss before tax of RMB 19,096 thousand in 2024, compared to a profit of RMB 36,855 thousand in 2023[165]. Revenue Breakdown - Revenue from the sale of corrugated packaging products was approximately RMB 1,918.4 million, up about 5.8% from approximately RMB 1,812.7 million in 2023, accounting for about 90.0% of total revenue[15]. - Revenue from the sale of corrugated board was approximately RMB 214.0 million, an increase of about 12.8% from approximately RMB 189.7 million in 2023, accounting for about 10.0% of total revenue[16]. Operational Developments - The company achieved a record high in sales volume, driven by significant success in acquiring new customers, despite a decline in product selling prices due to market oversupply[6]. - The company has 15 production facilities with a total capacity of approximately 977 million square meters as of December 31, 2024[6]. - The company opened its first production facility in Hubei in 2024 and a new facility in Huzhou, Zhejiang, which began trial operations in the second half of 2024[12]. - The company plans to build seven new production plants over the next three years to expand market coverage in central and western China[33]. Cost Management - The company is committed to strict cost control measures to improve profitability amidst declining product prices and initial losses from new facilities[12]. - Operating expenses increased by approximately 13.2% to about RMB 144.6 million from approximately RMB 127.8 million in 2023, primarily due to increased sales volume[19]. - Administrative expenses were approximately RMB 167.0 million, an increase of about 8.3% from approximately RMB 154.2 million in 2023, mainly due to new factories and internet platform initiatives[20]. Shareholder Returns - The company plans to distribute a special dividend of HKD 0.08 per share to shareholders listed on the register as of July 7, 2025, in recognition of their support[6]. - The board of directors is focused on improving shareholder returns, with a commitment to increasing dividends by 10% in the next fiscal year[10]. - The company reported a special dividend of HKD 0.08 per share, to be paid on July 18, 2025, for shareholders listed on July 7, 2025[48]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[95]. - The board consists of 2 executive directors and 4 independent non-executive directors, ensuring a diverse range of business experience and knowledge[104]. - The audit committee consists of three independent non-executive directors, overseeing financial reporting, governance measures, and risk management systems[113]. - The company has established clear written terms of reference for all committees, including the audit, remuneration, nomination, and environmental committees[113]. Risk Management - The board believes that the current risk management and internal control systems are adequate and effective, having established a comprehensive framework for identifying, classifying, analyzing, and mitigating various operational, financial, legal, and market risks[132]. - The internal audit department plays a key role in monitoring the group's internal governance, conducting comprehensive audits of all subsidiaries, and evaluating the effectiveness of risk management and internal control systems[133]. - The board will continue to review the risk management, internal control systems, and internal audit functions as necessary[134]. Employee and Workforce Diversity - The company has a total of 1,884 full-time employees as of December 31, 2024, comprising 1,321 male employees and 563 female employees[120]. - The company aims to enhance workforce diversity by introducing more employees of different genders and ages, with a review planned for the end of 2024[120]. - The board currently comprises one female director and five male directors, indicating a commitment to gender diversity[119]. Environmental and Sustainability Initiatives - The management team emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 25% over the next five years[8]. - The environmental committee held a meeting on March 24, 2024, to review the implementation of environmental-related matters[122]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10%[3]. - New product launches are expected to contribute an additional $50 million in revenue over the next year[4]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $30 million set aside for potential deals[7].

Financial Performance - For the year ended December 31, 2024, the Group recorded a revenue of approximately HK$131,256,000, a year-on-year decrease of 14.2% compared to HK$152,950,000 in the previous financial year[15]. - The loss attributable to the equity shareholders of the Company was approximately HK$6,861,000, compared to a profit of approximately HK$680,000 in 2023[15]. - The Group's revenue decreased by approximately HK$21,694,000 or 14.2% to approximately HK$131,256,000 for the year ended December 31, 2024, primarily due to a suspension of a project in Tuen Mun[31]. - The Group's gross profit decreased by approximately HK$5,825,000 or 30.3% to approximately HK$13,382,000 for the year ended December 31, 2024, with a gross profit margin decline from approximately 12.6% to 10.2%[37]. - The cost of services decreased by approximately HK$15,869,000 or 11.9% to approximately HK$117,874,000 for the year ended December 31, 2024, compared to approximately HK$133,743,000 for the previous year[36]. - The total staff costs for the year ended December 31, 2024, were approximately HK$26,098,000, down from approximately HK$32,157,000 in 2023[88]. Assets and Liabilities - Current assets decreased to HK$134,840,000 in 2024 from HK$170,597,000 in 2023, reflecting a decline of 21%[12]. - Non-current assets decreased to HK$1,661,000 in 2024 from HK$2,116,000 in 2023, a reduction of 21.5%[12]. - Current liabilities decreased to HK$15,381,000 in 2024 from HK$20,364,000 in 2023, a decrease of 24.5%[12]. - The net assets of the Group were HK$120,967,000 in 2024, down from HK$151,828,000 in 2023, representing a decline of 20.4%[12]. - The Group's net current assets were approximately HK$119,459,000 as of December 31, 2024, down from approximately HK$150,233,000 in 2023[63][69]. - The quick ratio improved to approximately 8.7 times as of December 31, 2024, compared to approximately 8.3 times in 2023[63][69]. - The Group's gearing ratio was approximately 0.7% as of December 31, 2024, down from 1.0% in 2023[66][72]. Market Conditions and Future Outlook - The Group's operations faced challenges due to sluggish property transactions and a weak property market, impacting revenue generation[16]. - The construction industry in Hong Kong is expected to gradually recover, which may benefit the Group's operations moving forward[17]. - The property value threshold for levying the Stamp Duty will be raised from HK$3 million to HK$4 million effective February 26, 2025, which may positively influence the market[17]. - The Group aims to maintain relationships with suppliers and customers while exploring potential development opportunities to enhance future profitability[18]. - Competition is expected to remain keen, with profit margins tightening due to rising labor and operating costs[58][62]. Dividends and Shareholder Information - A special dividend of HK2.40 cents per ordinary share was declared on July 25, 2024, while no final dividend was recommended for the year ended December 31, 2024[48][54]. - The Group does not have a fixed dividend policy, and future dividends will depend on various factors including operations, earnings, and cash flow position[154]. - The Board has approved a special dividend of HK2.40 cents per ordinary share for the year ended 31 December 2024, compared to no dividend in 2023[153]. - The Company will hold its Annual General Meeting on June 5, 2025[159]. Management and Governance - The Group's overall strategy planning, business development, and corporate management are primarily overseen by Mr. Tony Cheung and Mr. Gary Cheung[103]. - The Group's management team is responsible for significant contract approvals, investment decisions, and senior management appointments[106]. - The combined experience of the management team exceeds 100 years in the air-conditioning and engineering services sector, positioning the Group for future growth[106]. - The Board received annual confirmations of independence from all independent non-executive Directors and considers them to be independent[188]. Risks and Compliance - The Group faces risks such as reliance on major customers and fluctuations in revenue and profit margins due to various factors[150]. - There were no material breaches of laws and regulations that significantly impacted the Group's business and operations during the year[140]. - The Group currently does not have a foreign currency hedging policy due to insignificant foreign currency risk exposure[87]. - The Group's monetary assets and liabilities are primarily denominated in Hong Kong dollars, minimizing foreign exchange risk[86]. Customer and Supplier Concentration - For the year ended December 31, 2024, 35.3% of the Group's revenue was generated from the largest customer, while the five largest customers accounted for 99.5% of total revenue[186]. - The largest supplier represented approximately 22.4% of the total direct costs, with the five largest suppliers accounting for 46.1%[186].

Financial Performance - The company reported a revenue increase of 15% year-over-year for FY2023, reaching HK$500 million[1]. - Revenue for the fiscal year reached $150 million, a 15% increase compared to the previous year, driven by new game launches and user engagement[10]. - Future guidance indicates expected revenue growth of 18% for FY2024, projecting HK$590 million[1]. - For FY2024, the Group's revenue was approximately US$9.1 million, representing a decrease of approximately 8.6% from US$9.9 million in FY2023[40]. - The decline in revenue was attributed to certain matured games generating less revenue and newly launched games not meeting performance expectations[40]. - Gross profit for FY2024 amounted to approximately US$4.14 million, representing an increase of approximately 1.0% from approximately US$4.10 million recorded in FY2023[23]. - The Group's cost of revenue decreased by approximately US$0.9 million or 15.4% to approximately US$4.9 million, while the gross profit margin increased from 41.4% in FY2023 to 45.7% in FY2024[114][120]. - Loss attributable to owners of the Company for FY2024 amounted to approximately US$3.2 million, representing a decrease of approximately 44.4% from approximately US$5.8 million recorded in FY2023[24]. User Engagement and Growth - User engagement metrics showed a 25% growth in daily active users (DAU), reaching 1.5 million users[1]. - The company reported a significant increase in monthly active users (MAUs), averaging 1.5 million in the last quarter, representing a 25% year-over-year growth[8]. - The average revenue per paying user (ARPPU) for the company's games was HK$120, reflecting a 10% increase compared to the previous year[1]. - The company plans to launch three new games in FY2024, targeting a 20% increase in user acquisition[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user base by the end of the next fiscal year[11]. - The mobile games business has seen a significant increase in user numbers in Latin America, with several new products launched, contributing to a several-fold increase in actual users in the region[95]. Strategic Initiatives - The company is expanding its market presence in Southeast Asia, with a targeted investment of HK$50 million in marketing and partnerships[1]. - A new strategic partnership was announced with a leading technology firm to enhance game development capabilities[1]. - The company is exploring potential acquisitions to enhance its product portfolio, with a focus on companies in the gaming sector[1]. - The company has entered into a joint venture with Guangzhou Red Circle Information Technology, aiming to enhance game development capabilities and increase market share[9]. - The company plans to continue the parallel publishing model of web and mobile games in 2025, aiming to enrich product types and launch multiple new titles to cater to diverse user preferences[47]. Research and Development - Research and development expenses increased by 30%, totaling HK$80 million, to support new technology initiatives[1]. - The company has allocated $10 million for research and development in new technologies, including artificial intelligence (AI) integration in gaming[11]. - New product development includes a virtual reality (VR) game set to launch in Q3 2024, with an expected investment of $5 million[12]. - The company entered the VR market with an investment in a VR studio in China[21]. Corporate Governance - The company aims to improve its corporate governance practices in line with the latest regulatory requirements[1]. - The Group's board includes independent non-executive directors with extensive experience in venture development, investment, and technology companies, enhancing governance and strategic oversight[75]. - The Company has maintained compliance with applicable corporate governance codes, except for the separation of the roles of chairman and CEO[156]. - The Board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balance of skills and experience[163]. Financial Management and Investor Relations - The Group's focus on investor relations and risk management is critical for maintaining investor confidence and navigating market dynamics[73]. - The total remuneration payable to the Directors for FY2024 was approximately USD0.2 million[169]. - The Company has provided continuous professional development for Directors through in-house briefings and reading materials[178]. Gender Diversity and Workforce Composition - As of December 31, 2024, the Group's employee composition is 66% male and 34% female, indicating a commitment to achieving gender diversity through gender-neutral positions[192][196]. - The Company aims to create a gender-balanced workforce by hiring more females based on qualifications, experience, and skills required for positions[192][196]. - The Board consists of seven Directors, with one female Director, achieving the goal of gender diversity[189][191]. - The Company has adopted a board diversity policy to ensure a diverse composition of Directors in terms of skills, experience, and gender[186][190].