Financial Performance - For the fiscal year ended December 31, 2024, the company's revenue increased to HKD 421.1 million, a growth of approximately 79.5% compared to HKD 234.0 million in the previous year[8]. - The gross profit for the same period was HKD 117.9 million, representing a gross margin of 28%[8]. - The net profit attributable to shareholders rose to HKD 49.4 million, an increase of approximately 203.3% from HKD 16.3 million in the prior year[12]. - The OEM business, primarily focused on the overseas market, particularly the US, was the main contributor to revenue and profit growth, driven by increased sales orders from existing customers[11]. - Revenue from the OEM business reached approximately HKD 417.3 million, up about 88.0% from HKD 221.9 million in the previous year, with the largest customer contributing HKD 323.2 million, a 122.1% increase[19]. - The overall gross profit for the year was approximately HKD 117.9 million, with a gross profit margin of about 28.0%, down from 32.1% in the previous year[21]. - The group recorded a net profit attributable to equity holders of approximately HKD 49.4 million for the year ended December 31, 2024, up from approximately HKD 16.3 million in the previous year, primarily due to increased revenue from the OEM business[27]. Assets and Liabilities - The total assets of the company as of December 31, 2024, were HKD 288.6 million, up from HKD 255.1 million in the previous year[8]. - The total liabilities increased to HKD 64.1 million, compared to HKD 45.6 million in the prior year[8]. - The company's net assets reached HKD 224.5 million, reflecting an increase from HKD 209.6 million year-over-year[8]. Market Challenges - The "Youyou Monkey" business segment, focused on the Chinese market, experienced a significant decline in sales due to intensified local competition and a challenging industry environment[11]. - The overall economic environment remains complex, influenced by global inflation trends and geopolitical tensions, which may impact future performance[10]. - The group faces challenges in the local market due to intense competition and a shift in consumer purchasing habits from offline to online[42]. Strategic Plans - The company plans to continue enhancing communication with major customers to capture production opportunities, particularly for stainless steel water bottles[11]. - The group plans to diversify its customer base and enhance manufacturing capabilities, particularly in stainless steel sports bottles, to mitigate risks associated with market dependence[15]. - The group is focusing on improving online sales through various internet platforms to capitalize on the e-commerce trend in China[15]. - The group is committed to minimizing operating costs and expenses to enhance profitability through automation and streamlining production cycles[15]. - The group plans to enhance its core business by maintaining high-quality products and services, expanding customer connections, and exploring production capacity improvements[41]. Employee and Workforce - The group employed 818 full-time employees as of December 31, 2024, an increase from 626 employees in 2023, driven by increased production demands due to higher sales orders[38]. - Employee benefits expenses for the year ended December 31, 2024, totaled approximately HKD 84.0 million, up from HKD 65.7 million in 2023[38]. - The company emphasizes a fair and non-discriminatory work environment, promoting diversity and equal opportunities for all employees[180]. - Employee turnover rate for 2024 is 28%, with both male and female employees experiencing the same rate[194]. - The company reported 3 work-related injuries in 2024, an increase from 2 in 2023, with a total of 355 lost workdays due to injuries[198]. Corporate Governance - The board consists of five executive directors and three independent non-executive directors, ensuring a balanced composition with diverse knowledge and experience[64]. - The company has adopted the principles of the corporate governance code and complies with its provisions as of December 31, 2024[59]. - The company has a dedicated audit committee, remuneration committee, and nomination committee to ensure proper oversight and governance[58]. - The board actively engages in monitoring the group's operational performance and strategic direction[63]. - The company has established a whistleblowing policy to encourage reporting of unethical behavior, with no significant fraud or misconduct reported for the year ending December 31, 2024[80]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified 21 significant ESG issues categorized into four areas: environment, employment and labor practices, operational practices, and community[136]. - The ESG report covers the period from January 1, 2024, to December 31, 2024, detailing the company's overall performance in environmental and social aspects[116]. - The company emphasizes the importance of stakeholder engagement, continuously assessing their expectations and requirements to align business development accordingly[134]. - The company is committed to high standards of greenhouse gas management and will continue to review practices to minimize environmental impact[151]. - The company aims to maintain or reduce emission density, waste production, and resource consumption levels compared to the previous year[145]. Safety and Compliance - The company has implemented internal safety management policies to reduce workplace accidents and enhance safety monitoring[195]. - All new employees must undergo safety training and pass tests before starting work, ensuring a safe working environment[195]. - The company is committed to maintaining robust safety management and compliance with relevant laws and regulations[200]. - The company adheres to various labor laws and regulations, ensuring compliance in areas such as recruitment, promotion, and employee welfare[175].

Financial Performance - The company recorded a consolidated loss attributable to equity holders of approximately RMB 539.0 million for the year ended December 31, 2024[16]. - In 2024, the company recorded a consolidated loss attributable to equity holders of approximately RMB 539.0 million, an increase of about 9.2% compared to the previous year[29]. - The company reported a loss attributable to owners of RMB 539.0 million for the year ended December 31, 2024, compared to a loss of RMB 492.8 million in the previous year, representing a 9.3% increase in losses[45]. - Revenue decreased by 68.9% to RMB 308.3 million for the year ended December 31, 2024, down from RMB 990.8 million in 2023[45]. - The gross profit margin fell significantly, with a gross profit of only RMB 322 compared to RMB 232.5 million in the previous year, a decrease of 99.9%[45]. - The company faced a net loss from continuing operations of RMB 568.7 million, which is a 9.6% increase from the previous year's loss of RMB 519.1 million[45]. - The company has a net current liability of RMB 3,888.9 million and a shareholder deficit of RMB 1,628.3 million as of December 31, 2024[40]. - The total bank and other borrowings amounted to RMB 1,720.5 million, with RMB 1,686.6 million due within the next twelve months[40]. - The company reported a reserve available for distribution to shareholders of RMB -20,384,000 as of December 31, 2024, compared to RMB 129,558,000 as of December 31, 2023[93]. - The company has ongoing litigation and arbitration-related unpaid amounts totaling RMB 145.1 million as of December 31, 2024[187]. Production and Supply - The domestic coal production increased by 1.3% year-on-year, while coal imports reached a historical high, growing by 14.4% year-on-year[14]. - Future coal supply is expected to remain stable and sufficient, with major coal-producing provinces gradually restoring capacity[17]. - The company anticipates production will continue to be below previous years due to complex geological conditions, optimization of mining teams, and strict safety regulations, which may lead to intermittent production halts[20]. - The company plans to stabilize and increase production to achieve economies of scale and diversify its product offerings, with an expected production rebound in 2025[44]. - The company’s Guizhou coal mine operated at only 27% utilization in 2024, leading to high operational and financial costs[44]. - The company expects a moderate growth in coal supply and demand in the near future, with coal prices anticipated to decline slightly[18]. Market Conditions - The coal market in 2024 is characterized by sufficient domestic and imported supply, with moderate demand growth and a significant decline in coal prices, deviating from traditional seasonal trends[24]. - The cyclical fluctuations in the coal industry are likely to diminish, benefiting supply-side stability and the overall profitability of the coal sector[17]. - The coal industry is anticipated to experience moderate constraints on capacity and production expansion due to ongoing capital expenditure challenges and strict regulatory environments[17]. Cost Management and Operational Efficiency - The company aims to optimize processes, production management, and cost control to break the negative cycle affecting its operations and profitability[16]. - The company aims to enhance coal quality management and optimize product structure to establish a sustainable competitive advantage in the future[28]. - The company plans to expand quality production capacity and improve coal washing facilities and transportation systems to enhance competitiveness and average selling prices[20]. - The company is committed to optimizing processes and exploring asset restructuring opportunities to improve liquidity and alleviate financial pressure[26]. - The company is negotiating with lenders to extend repayment schedules and is considering fundraising activities to improve liquidity[43]. Safety and Environmental Compliance - The company emphasizes the importance of safety management and environmental protection, implementing multiple safety measures to ensure safe production[28]. - The company has implemented six safety systems in its mining operations to ensure a safe working environment for employees[37]. - Environmental compliance costs were approximately RMB 2.9 million in 2024, with RMB 1.2 million related to the construction of environmental facilities[36]. - The company has set aside approximately RMB 14.1 million for future environmental restoration obligations as of December 31, 2024[36]. Corporate Governance and Management - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balance of power[139]. - The company has adopted the corporate governance code as per listing rules and complied with most provisions, except for C.2.1 regarding the separation of the roles of chairman and CEO[137]. - The independent non-executive directors have confirmed their independence and have relevant financial management expertise[140]. - The company has established procedures for directors to seek independent professional advice at the company's expense[146]. - The company has established a new Environmental, Social, and Governance (ESG) Committee to enhance its governance functions[152]. Shareholder Information - Major shareholders include Li Feili with a total of 714,029,650 shares, representing 51.72% of the issued shares[98]. - The company has not experienced significant changes in its main business nature during the year 2024[88]. - The company has not entered into any arrangements allowing directors to benefit from acquiring shares or bonds of the company or any other corporate entity during the year[104]. - The company has not purchased, sold, or redeemed any of its shares for the year ending December 31, 2024[132]. Risk Management - The company employs a proactive risk management approach to identify and manage inherent business risks[174]. - The risk management framework includes both top-down and bottom-up approaches to identify and mitigate operational risks[178]. - The board has reviewed the risk management and internal control systems and found them to be effective and adequate, with no significant issues identified that could impact financial, operational, or compliance controls[186]. - The group has identified market risk as a significant risk for 2024, with a focus on product differentiation and market strategy to mitigate this risk[182].

Jewellery Business Performance - The Jewellery Business was significantly impacted by geopolitical tensions, declining economic growth expectations, and record high gold prices, leading to weakened customer sentiment [25]. - The Group decided to contract the sales of the Jewellery Business in the PRC market and focus on overseas market development going forward [25]. - The Group is in the process of divesting certain interests in the Jewellery Business in the PRC [25]. - The Group's overall performance reflects the challenges posed by the macroeconomic environment, particularly in the PRC market [25]. - The Group's strategic shift towards overseas markets indicates a response to the contraction in the domestic market [25]. - The Jewellery Business segment is expected to continue facing challenges due to geopolitical tensions, declining economic growth expectations, and record-high gold prices, leading to reduced customer confidence [27]. - The Group is focusing on overseas market development for its Jewellery Business, actively participating in jewellery shows and exhibitions to attract new customers [28]. - The revenue from the Jewellery Business decreased by approximately HK$53.6 million, while the Property Business revenue decreased by approximately HK$25.7 million [49]. - Revenue from the Jewellery Business decreased from approximately HK$286.4 million for the year ended 31 December 2023 to approximately HK$232.8 million for the year ended 31 December 2024, representing a decrease of approximately HK$53.6 million or 18.7% [61]. - The gross profit from the Jewellery Business decreased from approximately HK$80.5 million for the year ended 31 December 2023 to approximately HK$63.8 million for the year ended 31 December 2024, representing a decrease of approximately HK$16.7 million or 20.7% [64]. Property Business Performance - The Property Business involves investment and development of properties for the Perfect Group Jewellery Industry Park located in Foshan, Guangdong Province, PRC [22]. - The overall industrial property market in the PRC remains subdued, with lower sales of properties and car parks compared to the corresponding period in 2024 [34]. - The Group completed the disposal of Foshan Huaguanhui Property Management for approximately RMB3.7 million (equivalent to approximately HK$4.0 million) on 1 April 2024, ceasing its consolidation into the Group's financial statements [32]. - The revenue from the Property Business decreased from approximately HK$59.3 million for the year ended 31 December 2023 to approximately HK$33.5 million for the year ended 31 December 2024, representing a significant decrease of approximately HK$25.8 million or 43.4% [66]. - Rental income for the year ended 31 December 2024 was approximately HK$11.7 million, representing a decrease of approximately HK$2.4 million or 17.2% [69]. - Property management fee income for the year ended 31 December 2024 was approximately HK$7.7 million, representing a decrease of approximately HK$3.2 million or 29.6% [70]. - The number of units of properties delivered to customers decreased from 17 in 2023 to 9 in 2024, with the saleable gross floor area sold and delivered decreasing from approximately 7,313 square metres to approximately 2,978 square metres [68]. - The gross profit recognised for the Property Business for the year ended 31 December 2024 was approximately HK$14.9 million, with a gross profit margin of approximately 44.5% [71]. Photovoltaic Power Generation and Energy Storage Business - The Photovoltaic Power Generation and Energy Storage Business includes sales of electricity generated from photovoltaic systems and provision of energy storage services [22]. - The photovoltaic power generation business generated approximately 9.8 million units of electricity during the year ended 31 December 2024, an increase from 3.6 million units in 2023 [38]. - The Group generated approximately 9,800,000 kWh of electricity in the year ended December 31, 2024, compared to 3,600,000 kWh in the previous year [40]. - The revenue from the Photovoltaic Power Generation and Energy Storage Business increased from approximately HK$3.0 million for the year ended 31 December 2023 to approximately HK$7.2 million for the year ended 31 December 2024, representing an increase of approximately 135.5% [75]. - The gross profit from the Photovoltaic Power Generation and Energy Storage Business increased by approximately HK$2.1 million or 124.1% compared to the previous year [59]. - The Group's energy storage business is driven by significant market demand and favorable government policies, with new energy storage included in the government work report for the first time in 2024 [42]. - The Group aims to expand its energy storage business by developing, building, and operating independent energy storage power stations [42]. - As of December 31, 2024, the Group completed 14 grid-connected projects in China with a total capacity of approximately 12,586 kW, up from 5,882 kW as of December 31, 2023 [40]. Financial Performance - Revenue decreased from approximately HK$348.7 million for the year ended December 31, 2023, to approximately HK$273.5 million for the year ended December 31, 2024, representing a decrease of approximately HK$75.2 million or 21.6% [48]. - The overall gross profit decreased from approximately HK$102.2 million for the year ended 31 December 2023 to approximately HK$82.5 million for the year ended 31 December 2024, representing a decrease of approximately HK$19.7 million or 19.2% [59]. - Profit after taxation decreased from approximately HK$34.2 million for the year ended 31 December 2023 to approximately HK$9.9 million for the year ended 31 December 2024, representing a decrease of approximately HK$24.3 million or 71.1% [95]. - Current assets decreased from approximately HK$734.3 million as at 31 December 2023 to approximately HK$647.5 million as at 31 December 2024, representing a decrease of approximately HK$86.8 million or 11.8% [97]. - Non-current assets increased to approximately HK$119.2 million as at 31 December 2024 from approximately HK$93.4 million as at 31 December 2023, primarily due to the installation of photovoltaic and energy storage equipment [96]. - Current liabilities decreased from approximately HK$162.5 million as at 31 December 2023 to approximately HK$143.1 million as at 31 December 2024, representing a decrease of approximately HK$19.4 million or 11.9% [101]. - The gross profit margin increased slightly from approximately 29.3% for the year ended 31 December 2023 to approximately 30.2% for the year ended 31 December 2024, representing an increase of approximately 0.9 percentage point or 3.1% [60]. - Other income rose from approximately HK$5.3 million for the year ended 31 December 2023 to approximately HK$6.5 million for the year ended 31 December 2024, an increase of approximately 22.6% [77]. Management and Governance - The Group's management team includes individuals with significant industry experience, enhancing its strategic decision-making capabilities [162]. - The appointment of independent directors aims to strengthen corporate governance and oversight within the Group [169]. - The Group is focused on expanding its market presence and enhancing its operational efficiency through experienced leadership [168]. - The management team is committed to achieving the Group's business development and strategic goals [163]. - The Group's risk management committee is actively involved in overseeing the company's risk exposure and mitigation strategies [162]. - The Group has implemented targeted training and development programs to enhance employee skills and knowledge in response to industry developments [143]. Employee and Corporate Information - The total number of employees decreased to 133 as of December 31, 2024, from 159 as of December 31, 2023 [135][138]. - Total salaries and related costs for the year ended December 31, 2024, were approximately HK$28.6 million, a decrease from approximately HK$30.7 million for the year ended December 31, 2023 [135][138]. - Ms. Tang Kam Man has been appointed as the Chief Financial Officer and Company Secretary effective from 8 November 2023, bringing over 14 years of experience in auditing and accounting [185][186]. - Mr. Kan has over 30 years of experience in the fine jewellery industry and has been the CEO since August 2015 [161]. - Ms. Shek has been managing the Group's sales operations and has over 30 years of experience in the fine jewellery industry [165]. - Mr. Wong has over 40 years of experience in accounting, finance, audit, tax, and corporate finance across various international markets [181]. Risk Management - The Group faces potential risks from major customers ceasing business relationships, which could materially affect profitability and financial position [152]. - Credit risk is managed through a dedicated team responsible for credit limits and monitoring to recover overdue debts [154]. - The Company has taken out insurance to enhance the recoverability of trade debtors in the Jewellery Business [155]. - The Group does not currently have an interest rate hedging policy but may consider it if significant interest rate risks arise [153]. - The Group's financial condition may be affected by changes in Hong Kong and PRC tax laws, particularly regarding cross-border processing business [152]. Dividend and Shareholder Information - The Group did not declare any interim dividend for the year ended 31 December 2024, and proposes a final dividend of HK$0.01 per share, totaling HK$13,362,450 [191][195]. - The Board intends to balance dividend distribution, cash flow, and reserves to create long-term value for shareholders, with no assurance of specific dividend amounts for any period [141]. - The final dividend is subject to approval by Shareholders at the annual general meeting scheduled for 2 June 2025 [196]. - The total shares in issue as of the date of the report is used to calculate the proposed final dividend [191].

Financial Performance - The company's revenue for 2024 was HKD 960,488,000, a decrease of 20.1% compared to HKD 1,202,816,000 in 2023[9] - The loss attributable to owners of the company was HKD 3,186,000, representing a decline of 180.8% from a profit of HKD 3,942,000 in the previous year[9] - Basic loss per share was HKD (0.31), a decrease of 162.0% from HKD 0.50 in 2023[9] - Gross profit for the same period was HKD 26,177,000, down 40.8% from HKD 44,198,000 in 2023, resulting in a gross margin of 2.7%, down from 3.7%[22] - The company reported a loss before tax of HKD 3,117,000 for 2024, compared to a profit of HKD 3,980,000 in 2023[166] - The net loss for the year was HKD 3,186,000, a significant decline from a profit of HKD 3,942,000 in the previous year[166] - Total revenue for the year ended December 31, 2024, was HKD 960,488,000, a decrease of 20.2% compared to HKD 1,202,816,000 in 2023[166] - Gross profit for 2024 was HKD 26,177,000, down 40.5% from HKD 44,198,000 in 2023[166] - The company experienced a foreign exchange loss of HKD 2,706,000 from its overseas operations in 2024, contrasting with a gain of HKD 1,394,000 in 2023[166] Market Conditions and Business Strategy - The decline in revenue was primarily due to increased pricing pressure in the Chinese consumer electronics market, leading to lower gross profit[13] - The MID segment achieved growth driven by integrated IC and AI chip solutions, highlighting the increasing importance of AI in the tablet industry[14] - Demand for smart home audio products continued to grow, fueled by consumer preferences for high-quality audio and seamless integration with smart devices[15] - The automotive infotainment system segment experienced a decline due to reduced demand for upgrades in the aftermarket as electric vehicles become more integrated with advanced systems[16] - The company anticipates stable sales driven by a diversified customer base despite uncertain macroeconomic conditions and weak consumer demand in early 2025[18] - The company is focused on enhancing operational efficiency and implementing strict cost control measures to strengthen financial resilience[18] - Plans to expand product offerings in automotive electronics, 3A computer gaming, robotics, and next-generation mobile internet devices are underway[18] Corporate Governance and Leadership - Mr. Yan Zijie was appointed as the Chairman and Non-Executive Director in 2023, responsible for formulating the group's corporate strategy and overall direction[38] - The company has been developing its LED lighting business since 2009, with Mr. Yan Zijie as the CEO of its wholly-owned subsidiary[38] - The leadership team comprises individuals with diverse backgrounds and extensive experience in their respective fields, contributing to the company's strategic direction[43] - Ken Chen was appointed as the CEO of the company in 2023, bringing over 17 years of experience in sales and marketing within the electronics sector[47] - The board of directors consists of nine members, including both executive and non-executive directors, responsible for strategic policy formulation and monitoring financial performance[50] - The roles of the chairman and CEO are separated, with the chairman responsible for formulating corporate strategy and overall direction[55] - Independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, ensuring compliance with governance standards[58] Financial Position and Cash Flow - As of December 31, 2024, the company's current ratio improved to 135.2% from 127.7% in 2023[28] - Cash and bank balances were HKD 33,955,000, down from HKD 47,191,000 in 2023, while bank borrowings increased to HKD 151,164,000 from HKD 117,518,000[28] - The net capital debt ratio rose to 133.8% from 101.5% in 2023, with net debt amounting to approximately HKD 117,209,000[28] - The company ended the year with cash and cash equivalents of HKD 33,955,000, down from HKD 47,191,000 in 2023, reflecting a decrease in liquidity[172] - The company recorded a significant increase in expected credit loss provisions for trade receivables, amounting to HKD 1,246,000, compared to HKD 116,000 in the previous year, indicating potential credit risk concerns[170] - Operating cash flow before changes in working capital was negative HKD 1,018,000, a decrease from negative HKD 21,099,000 in the previous year, showing an improvement in cash flow management[170] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders through annual reports and press releases, and encourages attendance at annual general meetings[92] - The board does not recommend the payment of a final dividend for the year 2023[97] - The group reported a total reserve available for distribution to shareholders of HKD 10,210,000 as of December 31, 2024, down from HKD 53,898,000 in 2023[103] Risk Management and Compliance - The company has established a risk management and internal control system that is deemed effective and adequate by the board, covering financial, operational, compliance monitoring, and risk management functions[86] - The company has no significant violations of applicable laws and regulations, ensuring compliance with local legal requirements[106] - The group closely monitors government policies and regulations that may impact its operations, assessing potential risks and uncertainties[109] Inventory and Financial Reporting - The carrying amount of inventory is HKD 103,835,000, net of a provision of HKD 8,168,000[152] - The audit identified the estimation of inventory provision as a key audit matter due to management's assumptions in identifying obsolete and slow-moving inventory[152] - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position[148] - The total provision for inventory is based on the estimated selling price less estimated costs to sell[152] Auditor and Financial Oversight - The company appointed a new auditor, ZHONGJIAN CPA, to replace the previous auditor, Hong Kong Lixin Dehao, effective September 26, 2024[80] - The total remuneration for the auditor for the year 2024 includes HKD 640,000 for statutory audit services and HKD 160,000 for non-audit services[81] - The auditor's responsibility includes identifying and assessing risks of material misstatement in the financial statements[161]

Company Overview - Hung Hing Printing Group has a total production floor space of over 600,000 square meters and employs approximately 5,000 staff across Hong Kong, mainland China, and Vietnam[12]. - The company operates seven manufacturing facilities, including one in Hong Kong, five in mainland China, and one in Vietnam, with the Vietnam operation starting in Q4 2019[12][28]. Financial Performance - Revenue for the year ended December 31, 2024, decreased by 8% to HK$2,195 million compared to HK$2,387 million in 2023[38]. - The company reported a loss attributable to equity shareholders of HK$43 million in 2024, a significant decline from a profit of HK$135 million in 2023[38]. - Basic loss per share for 2024 was HK(4.8) cents, compared to earnings of HK15.0 cents per share in 2023[38]. - Total assets decreased to HK$3,435,577 thousand in 2024 from HK$3,811,213 thousand in 2023[38]. - The Group recorded a loss attributable to equity shareholders of approximately HK$43 million, compared to a profit of HK$135 million last year, with a basic loss per share of HK$4.8 cents versus HK$15 cents in 2023[65]. - The Book and Packaging Printing (BPP) business unit experienced a revenue decline of 12.3% to HK$1,490 million in 2024, down from HK$1,700 million in 2023[86]. - The Consumer Product Packaging (CPP) business unit achieved a revenue increase of 14.5% to HK$339 million in 2024, compared to HK$296 million in 2023, due to the resumption of full operations at the Wuxi plant[87]. - Overall profit contribution from BPP decreased to HK$25.7 million in 2024, impacted by global economic uncertainty and increased logistics costs[86]. - The Corrugated Box (CB) business achieved a revenue growth of 6% to HK$198 million in 2024, compared to HK$187 million in 2023, but reported a segment loss of HK$15 million due to unfavorable market conditions[98]. - The Paper Trading (PT) business experienced a revenue decline of 17.9% to HK$167 million in 2024, primarily due to weak market demand and disruptions in paper supply and prices[99]. Dividends and Shareholder Returns - A special dividend of HK5 cents per share and a final dividend of HK4 cents per share were recommended, maintaining a total dividend of HK13 cents per share for 2024[39]. - The Group maintained a strong financial position with net cash holdings of HK$914 million, allowing for long-term sustainable growth investments and shareholder rewards[104]. Sustainability and Environmental Goals - The company is committed to achieving net carbon zero by 2050 and is reviewing key materials usage to minimize consumption and reduce waste[52]. - The Group is focusing on sustainability by introducing a new collection of samples showcasing eco-friendly materials in response to global demand[66]. - In 2024, the company expanded its solar panel capacity to 8,662 kWp, up from 6,101 kWp in 2023, resulting in a 33% increase in green energy generation to 7,313 MWh from 5,478 MWh[197]. - The company purchased a green energy certificate for a one-time offset of its carbon emissions as part of its commitment to long-term environmental goals[195]. - The intensity of Scope 1 & 2 CO2 emissions was recorded at 12.36 in 2024, with a target of 10.44[197]. - The electricity usage intensity was 27.8 in 2024, with a target of 20.83[197]. - The hazardous waste intensity was recorded at 0.22 in 2024, with a target of 0.21[197]. - The company remains committed to achieving meaningful reductions in its carbon footprint despite temporary setbacks[195]. Innovation and Development - Hung Hing has developed new educational platforms such as Yum Me Play, STEM Plus, and Active Minds, expanding its portfolio in children's education[13]. - The company aims to drive innovation through its design hub Beluga and investments in digital+print products[13]. - The children's book distribution business, AML, has optimized its bookstore network and invested in RFID technology for smart warehousing solutions to enhance inventory efficiency[71]. - Yum Me Print, a subsidiary, has launched an upgraded model capable of printing documents at over 50 locations across the city, utilizing FSC™-certified paper for environmentally friendly practices[72]. - The company is investing in digital transformation and smart warehousing solutions to enhance inventory efficiency[74]. Operational Efficiency and Strategy - The company emphasizes operational efficiency, cost optimization, and innovation to navigate the complex external environment[37]. - Hung Hing's strategy includes resilience and long-term commitment in fixed and human assets to enhance operational efficiency[14]. - The company is committed to diversifying its business while consolidating core operations to adapt to market pressures and competition[68]. - Geopolitical tensions and supply chain disruptions have led to increased logistics costs and challenges in the export business, affecting both exports and domestic sales[64]. Corporate Governance - The Board of Directors consists of 9 members, including 2 Executive Directors, 4 Non-executive Directors, and 3 Independent Non-executive Directors[117]. - The Company has satisfied the Listing Rules by having one Independent Non-executive Director with appropriate accounting qualifications on the Audit Committee[118]. - All Independent Non-executive Directors have confirmed their independence annually as per Rule 3.13 of the Listing Rules[119]. - The attendance record for the Board meetings shows that all Directors participated actively, with the Executive Chairman attending 4 out of 4 meetings[130]. - The Company Secretary ensures that Board papers are sent to Directors at least three days before meetings, allowing for adequate preparation[130]. - Directors have full access to information on the Group and can obtain independent professional advice when necessary[131]. - Newly appointed Directors receive a comprehensive induction and ongoing professional development to ensure they understand the Company's operations[134]. - The Nomination Committee, primarily composed of Independent Non-executive Directors, is responsible for recommending candidates for directorship[121]. - The Board meets regularly and can convene additional meetings as required to address key business matters[126]. - The Company emphasizes internal control and risk management, with the Audit Committee assisting the Board in maintaining an effective system[145]. - The Internal Audit Department formulates audit plans covering key internal control areas on a rotational basis for review by the Audit Committee[146]. - All Directors confirmed compliance with the required standards of dealings and the code of conduct throughout the year ended December 31, 2024[140]. - The Board is satisfied that the overall financial, operational, and compliance controls, and risk management of the Group continue to be effective[148]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring proper notification and acknowledgment for securities dealings[142]. - The incentive bonus program for Executive Directors and Senior Management is linked to the financial targets of the Group for the year ended December 31, 2024[170]. - The Audit Committee held four meetings during the financial year ended December 31, 2024, with full attendance from three Independent Non-executive Directors[178]. - The Company plans to renew the current restricted share award scheme for an additional three years, extending it until June 30, 2027, under similar terms as the existing scheme[170]. - The Board Diversity Policy aims to enhance performance by considering factors such as skills, regional and industry experience, and gender diversity[171]. - The Audit Committee reviewed the financial statements for the six months ended June 30, 2024, focusing on business highlights and compliance with accounting standards[180]. - The Company has adopted a Shareholders Communication Policy to ensure timely information is provided to shareholders and to facilitate active engagement[182]. - The external auditors' performance and audit fees were reviewed, and their reappointment for the financial year ending December 31, 2025, has been recommended[181]. - The Nomination Committee will report annually on the composition of the Board from a diversified perspective and monitor the implementation of the Board Diversity Policy[172]. - The recommendation for the re-election of retiring directors at the annual general meeting was made[174]. - The Company emphasizes the importance of communication with shareholders, providing opportunities for engagement during the annual general meeting[183]. Community Engagement - The company organized a corporate blood drive and various community engagement activities to promote work-life balance[198]. - The company received the Green Dot Award from Koenig & Bauer and multiple awards at the Hong Kong Smart Design Awards 2024 for its innovative designs[200].

Production and Financial Performance - MMG achieved a 15% year-on-year increase in copper production and an 8% increase in zinc production in 2024[10]. - Net profit for 2024 increased to $366 million, up from $122.1 million in 2023, representing a significant growth[19]. - EBITDA reached $2,048.7 million, a 40% year-on-year increase, driven by improved profitability across all mines and the inclusion of $125.9 million EBITDA from Khoemacau[19]. - Copper production increased by 15% year-on-year to 399,758 tons, with Las Bambas exceeding its annual guidance[20]. - Zinc production grew by 8% year-on-year to 219,901 tons, reflecting operational improvements at Dugald River and Rosebery[20]. - The company reported a significant increase in mineral resources, with a net increase of 2.6 million tons of copper and 1.4 million tons of zinc[12]. - The total mineral resource increased by 2.6 million tons of copper and 1.4 million tons of zinc, marking the most significant organic growth since the company's establishment in 2009[20]. - The company reported a total revenue of $2,977.6 million from Las Bambas, processing 51,586,909 tons of ore[92]. - The total production of copper concentrate at Las Bambas was 322,912 tons[92]. - For the fiscal year ending December 31, 2024, the company's revenue increased by 3% to $4,479.2 million compared to $4,346.5 million in 2023[75]. - EBITDA for the same period rose by 40% to $2,048.7 million, up from $1,461.9 million in the previous year[80]. Acquisitions and Investments - The company signed an agreement to acquire a nickel business in Brazil from Anglo American, enhancing its global resource portfolio[13]. - MMG completed the acquisition of Khoemacau mine on March 22, 2024, for a total consideration of approximately $1,734.7 million[139]. - MMG announced an agreement to acquire 100% of a Brazilian nickel company for up to $500 million, marking its first investment in Brazil[141]. - The rights issue on June 4, 2024, resulted in the allocation of 3,465,432,486 shares, raising a total of $1,152.4 million after costs, with a subscription price of HK$2.62 per share[142]. - The rights issue was oversubscribed by approximately 2.8 times, indicating strong investor interest[142]. Safety and Governance - MMG's board emphasizes the importance of safety, cost management, and governance to support sustainable growth[13]. - The company’s commitment to safety and health improvements remains a top priority for its operations[7]. - The total recordable injury frequency (TRIF) was 2.06 per million hours worked, with a significant improvement in safety performance[18]. Resource Management and Exploration - The company is focusing on expanding its mining operations and enhancing resource extraction efficiency[34]. - The company plans to continue exploring new technologies to improve mining processes and reduce costs[34]. - The inferred resources in the Khoemacau area increased from 370 million tons in 2023 to 450 million tons in 2024, reflecting a significant growth in mineral reserves[39]. - The total estimated loss from illegal mining at the Las Bambas Sulfobamba deposit reached 74 thousand tons of copper over the past 12 months[56]. - The company has a qualified team overseeing mineral resources and reserves, ensuring compliance with industry standards[54]. Financial Position and Debt Management - The company achieved its lowest debt-to-equity ratio and the strongest balance sheet in a decade by implementing various strategic measures[19]. - The debt-to-equity ratio improved to 0.41 in 2024 from 0.50 in 2023, indicating a stronger financial position[137]. - Available but undrawn debt financing decreased to $2,950 million as of December 31, 2024, down from $4,325 million in 2023[138]. - As of the report date, the company has utilized $611 million for the repayment of short-term Khoemacau acquisition financing[145]. - The remaining proceeds from the rights issue will be used for various debt repayments, enhancing financial flexibility for ongoing operations and capital expenditures[145]. Market Conditions and Price Assumptions - The average prices for copper, zinc, gold, and silver increased in 2024, while lead, molybdenum, and cobalt prices decreased[85]. - The price assumptions for copper, zinc, lead, gold, silver, molybdenum, and cobalt have been adjusted based on inflation and market forecasts, with copper priced at $4.08 per pound for ore reserves and $4.90 for mineral resources[61]. - A 10% increase in copper prices is expected to result in a profit increase of $9.3 million for 2024, while a 10% decrease would lead to a profit decrease of $(8.8) million[171]. Operational Efficiency and Cost Management - The company continues to focus on creating value from operations and exploring diversification opportunities around existing regions and commodities[25]. - Operating expenses decreased by $514.9 million (18%) to $2,299.2 million, primarily due to reduced inventory costs at Las Bambas[89]. - C1 costs for 2024 were $1.51 per pound, a decrease from $1.60 per pound in 2023, driven by increased copper production and reduced cash production costs[98]. - The C1 cost for zinc at Dugald River decreased to $0.65 per pound in 2024 from $0.93 per pound in 2023, attributed to increased zinc production, lower processing costs, and higher by-product revenues[125]. Community Engagement and Environmental Responsibility - Kinsevere established new agreements for water monitoring, environmental audits, and other services to ensure operational stability and social responsibility[150]. - Dugald River made significant progress in supply chain management and operational efficiency, focusing on renewable energy applications and local community procurement[153]. - Rosebery signed a three-year power supply agreement with a local supplier and successfully operated hybrid loaders to reduce carbon footprint[154]. Employee Engagement and Corporate Culture - Employee satisfaction is on the rise, with a majority committed to the company's success, reflecting a strong corporate culture[22]. - As of December 31, 2024, the company employed 5,195 full-time employees, with total employee benefits expenses amounting to $434.4 million, reflecting growth due to the acquisition of Khoemacau[156].

Financial Performance - The group recorded revenue of approximately HKD 345.9 million for the fiscal year ending December 31, 2024, an increase of about 1.0% compared to HKD 342.4 million in the previous year[11]. - The group achieved a profit of approximately HKD 48.9 million for the fiscal year, representing an increase of approximately 28.7% from HKD 38.0 million in the previous year[12]. - The company recorded revenue from property management services of approximately HKD 210.3 million in the current year, representing a growth of about 13.2% compared to HKD 185.7 million in the previous year[19]. - The environmental hygiene business recorded revenue of approximately HKD 129.6 million, a decrease from HKD 147.4 million in the previous year, primarily due to a reduction in non-tender contracts[22]. - The comprehensive development business saw a revenue decline to approximately HKD 5.9 million, down about 28.9% from HKD 8.3 million in the previous year[41]. - The gross profit for the year was approximately HKD 97.3 million, an improvement from HKD 85.2 million in the previous year, with a gross margin increase to about 28.1%[47]. - The net profit for the year was approximately HKD 48.9 million, up from HKD 38.0 million in the previous year, primarily due to improved gross profit and effective cost control measures[49]. - The environmental hygiene business's gross profit increased to approximately HKD 32.4 million, with a gross margin improvement to about 25.0%[47]. - The comprehensive development business's gross profit decreased to approximately HKD 5.0 million, but the gross margin improved to about 85.0%[48]. Property Management and Expansion - The total managed building area by the property management group was approximately 8.5 million square meters as of December 31, 2024, a decrease from approximately 11.8 million square meters in the previous year[15]. - The group successfully expanded its property management portfolio, resulting in increased revenue from newly acquired projects during the fiscal year[15]. - The group plans to pursue a robust expansion strategy, considering both acquisition and organic growth opportunities despite challenges from the economic slowdown in China[11]. - The company has entered into an agreement to acquire 47 commercial units in the Zijing Yuhua Center, with a total estimated construction area of approximately 2,563 square meters, expected to be delivered by December 31, 2024[16]. - The planned completion date for the acquisition of the commercial units has been delayed due to the impact of the COVID-19 pandemic and environmental policies in China[16]. - The company is expected to receive a full refund of approximately RMB 22.9 million (equivalent to about HKD 24.3 million) from Dongsheng Real Estate following the termination of the acquisition agreement[16]. Challenges and Strategies - The company faced challenges in collecting service fees due to the ongoing economic situation in China, impacting cash flow[23]. - The company has improved its ability to meet strict service standards set by the Chinese government, which has reduced penalties and partially offset the decrease in contract revenue[22]. - The group aims to enhance operational efficiency and optimize workflows to reduce administrative and operational costs in the coming years[24]. - The company plans to enhance its environmental hygiene services by incorporating advanced cleaning technologies and sustainable practices to meet customer needs[20]. - The group anticipates a recovery in outbound tourism services as China resumes international travel, prompting a reassessment of the surrounding business environment[32]. Corporate Governance and Management - The company operates as an investment holding company with subsidiaries engaged in property management and leasing services, environmental hygiene, integrated development, and diversified tourism products and services[94]. - The company has established procurement procedures to manage its supply chain responsibly, ensuring fair competition in the market[100]. - The company emphasizes the importance of maintaining positive relationships with employees, viewing them as valuable assets for long-term success[99]. - The company has appointed new executive directors, including Mr. Xue Fei and Ms. Hao Ying, effective June 28, 2024[136]. - The company has arranged appropriate directors' liability insurance for its board members during the year[139]. - The independent non-executive directors have confirmed their independence as per the listing rules, and the company still considers them independent as of the report date[140]. - The company has established a robust corporate governance framework and regularly reviews its governance practices to ensure compliance with regulations[178]. Shareholder and Equity Information - The company proposed a share consolidation on October 31, 2024, merging every 50 existing shares into one new share with a par value of HKD 0.25[57]. - Following the share consolidation approved on December 2, 2024, the company's issued share capital became HKD 100 million, divided into 400 million consolidated shares[58]. - Major shareholder Dongsheng Holdings owns approximately 62.09% of the company's shares, totaling 160,465,320 shares[151]. - The total equity held by Dongsheng Holdings includes 157,889,897 shares and convertible securities convertible into 2,575,423 shares as of December 31, 2024[153]. - The total distributable reserves available to equity shareholders as of December 31, 2024, is approximately HKD 109,471,000, down from HKD 183,876,000 in 2023[127]. Employee and Operational Information - The total number of employees as of December 31, 2024, was approximately 2,100, down from about 2,200 in 2023, with employee costs around HKD 98.8 million[72]. - The group provides employee medical insurance and mandatory provident fund plans as part of employee benefits[143]. - The group has no further liability for employee retirement benefits beyond monthly contributions to the retirement plans[144]. - The company encourages senior management to participate in external seminars and internal training to improve their professional knowledge[187]. Risk Management and Compliance - The company aims to maintain a robust and effective risk management and internal control system to safeguard assets and ensure reliable financial reporting[192]. - The audit committee meets at least twice a year to review internal audit findings and report to the board regarding risk management and internal control effectiveness[193]. - The group has established effective risk management and internal control systems to safeguard its assets, with no significant internal control deficiencies identified[194]. - The auditor's fees for statutory audit services amounted to approximately HKD 1.7 million, with an additional HKD 0.03 million for non-audit services[197].

Financial Performance - The company reported a total revenue of HKD 3,258 million for 2024, a decrease of 2% compared to HKD 3,323 million in 2023[2]. - The electronic commerce business revenue dropped significantly by 74%, from HKD 486 million in 2023 to HKD 127 million in 2024[2]. - The total assets decreased by 13% from HKD 6,249 million in 2023 to HKD 5,446 million in 2024[2]. - The company experienced a 36% reduction in shareholder losses, from HKD 763 million in 2023 to HKD 491 million in 2024[2]. - The total expenses decreased by 15% from HKD 3,844 million in 2023 to HKD 3,279 million in 2024, reflecting cost management efforts[2]. - In 2024, the company achieved a positive EBITDA of HKD 295 million, marking a significant breakthrough after several years of challenging operations[62]. - The company recorded a net profit attributable to shareholders of HKD 53 million in the second half of 2024, excluding any non-recurring items, representing an important milestone in its recovery and transformation journey[62]. - The segment revenue for Hong Kong Television Broadcasting increased by 17% year-on-year to HKD 1.638 billion, driven by a 14% growth in advertising revenue from free-to-air channels despite a weak overall advertising market[73]. - The segment EBITDA turned from a loss of HKD 272 million in 2023 to a profit of HKD 110 million in 2024, benefiting from revenue growth and cost reduction efforts[73]. - The company achieved significant recognition at the 2024 Asia Content Awards, with "News Queen" winning multiple awards including Best Actress and Best Supporting Actress[28]. User Engagement and Digital Presence - MyTV SUPER has reached 10.8 million users, with 2 million monthly active users, showcasing strong user engagement[3]. - The company has over 64 million followers across various social media platforms, indicating a robust online presence[3]. - The company conducted over 1,280 live streaming sessions on Douyin and Taobao, attracting 264 million views, highlighting its effective e-commerce strategy[3]. - The average weekly reach of self-operated digital terrestrial television channels was 15 million viewers, with a prime time average rating of 21.02 points, capturing 79% of the total audience share[78]. - The new TVB Plus channel launched on channel 82 combines traditional TV programming with digital platforms, enhancing viewer engagement and experience[79]. - The myTV SUPER app has achieved a total of 420,000 downloads, indicating that viewers primarily watch content on large-screen televisions[134]. - The company continues to enhance its digital content integration, providing a more immersive viewing experience for audiences[113]. Content Production and Awards - The company received multiple awards for its productions, including "Best Actress" for the series "News Queen" at the 29th Asian Television Awards[24]. - The company is committed to developing new technologies and content to adapt to changing viewer preferences[22]. - The program "News Perspective: Let Me Breathe for Two Hours" won the Best Current Affairs Program award in the Asian specific market[29]. - "News Queen" also won the Global Best Series award and Sheren Tang was recognized as the Global Best Actress[36]. - The company received accolades for its innovative programming and creative industry contributions at the 15th Macau International Television Festival[39]. - The company continues to expand its market presence and enhance its content offerings through strategic awards recognition and program development[29]. - The company produced a special program to celebrate the 75th anniversary of the founding of the People's Republic of China, which attracted a large audience and enhanced national pride[128]. - The documentary series "The Endless Road" has completed its fourth season, showcasing significant developments along the Belt and Road Initiative[129]. Strategic Partnerships and Market Expansion - The company has entered into strategic partnerships with Youku and Tencent for co-production and distribution of programs[22]. - The company aims to expand its market presence through acquisitions and partnerships in the entertainment sector[21]. - The partnership with Youku expanded to a total of nine co-produced dramas, including the highly anticipated "News Queen 2," set to begin filming in Q2 2025[157]. - Tencent Video has also increased its order to eight co-produced dramas, reflecting the popularity of Hong Kong dramas in mainland China[158]. - The company is focusing on closer integration of e-commerce with its television channels to create sales conversion opportunities[149]. Challenges and Future Outlook - The company anticipates continued challenges in the retail environment in Hong Kong for 2024, despite cost-saving measures taken[200]. - The company has written off all goodwill and related intangible assets totaling HKD 94 million due to low recoverability in the current market environment[200]. - The cumulative expected credit loss provision for promissory notes increased to HKD 656 million from HKD 312 million in 2023 due to the assessment of ITT's repayment ability[198]. - The company is currently producing seven dramas at various stages, including "Justice Goddess" and "Couple's Game," to continue driving revenue growth from co-productions[167]. - The company plans to enhance digital advertising revenue and maintain a solid subscription revenue base by launching a new upgraded free service[146].

Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[3]. - Revenue for the year ended December 31, 2024, was RMB 442,439,000, a decrease of 36.8% compared to RMB 700,616,000 in 2023[28]. - Gross profit for 2024 was RMB 40,032,000, down from RMB 175,750,000 in 2023, indicating a significant decline in profitability[28]. - Loss before income tax for 2024 was RMB 416,096,000, slightly improved from a loss of RMB 436,417,000 in 2023[28]. - Total assets as of December 31, 2024, were RMB 4,664,141,000, a decrease from RMB 4,863,522,000 in 2023[28]. - The Group's revenue for the Reporting Period was approximately RMB442.4 million, a decrease of 36.9% from RMB700.6 million in the Previous Period[52][54]. - Gross profit decreased by 77.2% from approximately RMB175.8 million to approximately RMB40.0 million, with the gross profit margin dropping by 16.1 percentage points to approximately 9.0%[68]. - Loss attributable to owners of the Company was approximately RMB407.2 million for the Reporting Period, slightly higher than the loss of approximately RMB404.4 million in the Previous Period[88]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[3]. - The company actively expanded its market presence, establishing strategic partnerships with renowned automotive and energy enterprises to promote hydrogen fuel cell vehicle commercialization[22]. - The company is focused on expanding its presence in the hydrogen energy sector, leveraging the expertise of its management team[159]. - The company aims to enhance its investment strategies and operational efficiency through the experience of its directors in various industries[160]. - The company is actively pursuing opportunities for market expansion and potential acquisitions to strengthen its competitive position[159]. Research and Development - Investment in R&D increased by 30%, totaling RMB 300 million, focusing on new hydrogen energy technologies[3]. - R&D expenditure exceeded RMB 130.5 million during the Reporting Period, focusing on improving product efficiency, reliability, and durability[40]. - The new generation high-power GIII stacks achieved a rated point performance of 1.3 W/cm², over 20% higher than the previous generation[41]. - The Group is developing megawatt-scale PEM electrolyzer technology and 1,000Nm³ alkaline electrolyzer technology to enhance hydrogen production efficiency and quality[45]. - The company has a strong focus on R&D in hydrogen fuel cell systems, led by Dr. Liu, who has a doctoral degree in chemical engineering from Tsinghua University[198]. Product Development - The company launched two new hydrogen fuel cell products, contributing to a projected 15% increase in sales[3]. - The company launched the next-generation high-power Hongxin GIII series stacks with a single stack power exceeding 200 kW, enhancing market competitiveness[32]. - The Hongtu H series products feature a modular design with system power compatibility ranging from 120 kW to 360 kW, catering to various application scenarios[32]. - The first inland river hydrogen fuel cell powered container vessel "Dongfang Hydrogen Harbor" was successfully launched, promoting the commercial application of hydrogen energy ships in China[36]. - The company expanded its product applications to new scenarios including hydrogen energy ships, drones, and two-wheeled vehicles, enhancing the full-scenario application of hydrogen energy[35]. Financial Position and Liabilities - Total liabilities increased to RMB 1,675,713,000 in 2024 from RMB 1,472,662,000 in 2023, indicating a rise in financial obligations[28]. - The Group's total borrowings as of December 31, 2024, amounted to approximately RMB529.7 million, an increase of 74.2% compared to approximately RMB304.1 million in the Previous Period[93]. - The current ratio of the Group decreased slightly to approximately 2.5 as of December 31, 2024, from approximately 2.7 as of December 31, 2023[90]. - The debt-to-equity ratio as of December 31, 2024, was approximately 0.2, compared to approximately 0.1 as of December 31, 2023[95]. Governance and Management - The Board of Directors includes key figures such as Mr. Chen Xiaomin as Chairman and Mr. Ye Jiajie as an executive director[12]. - The Audit Committee is chaired by Ms. Wong Yan Ki, ensuring compliance and financial integrity[13]. - The company has a strong leadership team with diverse backgrounds in corporate management, finance, and investment, enhancing its strategic planning and operational management capabilities[149][155][159][162]. - The management team includes individuals with diverse backgrounds in investment, administration, and technical expertise, enhancing the company's strategic capabilities[195]. - The company has established a robust framework for monitoring and evaluating its business operations through its supervisory committee[194]. Employee and Operational Efficiency - Employee benefit expenses for the year amounted to approximately RMB 185.3 million, a decrease from approximately RMB 235.3 million in 2023[125]. - The Group's capital expenditures for the Year were approximately RMB50.4 million, down from approximately RMB150.5 million in 2023[97]. - The Group's capital commitments for property, plant, and equipment amounted to approximately RMB269.1 million, significantly higher than approximately RMB109.6 million in 2023[96]. - The Group's internal management system has been optimized to enhance operational efficiency and competitiveness since 2024[50]. Legal and Compliance - The company is committed to adhering to the PRC Company Law and relevant regulations governing its operations[9]. - As of 31 December 2024, there were three legal claims with a compensation sum of approximately RMB0.29 million, for which provisions have been made[144]. - The company emphasizes the importance of independent directors in maintaining corporate governance and accountability[184].

Financial Performance - In 2024, the company achieved robust operational results and financial performance, benefiting from China's economic stimulus policies introduced in September 2024[8]. - The total revenue for 2024 was RMB 39.297 billion, an increase of 10.1% from RMB 35.695 billion in 2023[22]. - Net profit and adjusted net profit for 2024 were RMB 4.782 billion and RMB 4.787 billion, respectively, reflecting increases of 5.3% and 5.1% compared to RMB 4.539 billion and RMB 4.556 billion in 2023[23]. - Operating profit for the year was RMB 636.2 million, a 5.2% increase from RMB 604.8 million in 2023[28]. - Net profit for the year was RMB 478.2 million, up 5.3% from RMB 453.9 million in the previous year[28]. - Total revenue increased by 10.1% to RMB 3,929.7 million from RMB 3,569.5 million year-on-year, driven by higher average outstanding loan balances and increased contributions from other income sources[49]. - Interest and similar income rose by 33.2% to RMB 1,968.2 million, compared to RMB 1,477.3 million in the previous year[28]. - The overdue rate for new loans in mainland China stabilized at 0.58% in Q4 2024, an 18.3% decrease year-on-year[17]. - The loan facilitation model contributed to a total loan amount of RMB 43.03 billion, accounting for 77.2% of the total loan amount realized[19]. Customer and Market Development - The company continues to transition towards higher-quality borrowers, enhancing credit risk models and improving identification and classification accuracy of new quality customer segments[9]. - The cumulative registered users in mainland China reached 158 million by December 31, 2024, representing a year-on-year growth of 9.7%[18]. - The proportion of repeat borrowers accounted for 85.9% of the total loan volume in 2024[33]. - The company launched the "CreFIT Cash Loan" product in July 2024, providing convenient and flexible short-term financing solutions, demonstrating its commitment to financial innovation[11]. - The company established a partnership with China Mobile Hong Kong in May 2024, becoming the first lending institution in the region to strengthen customer acquisition channels[11]. Risk Management and Compliance - The company emphasizes compliance with regulatory requirements, maintaining constructive dialogue with regulators to ensure operational strategies align with evolving regulations[10]. - The company plans to enhance compliance management and consumer protection through a newly established Consumer Protection Committee[24]. - The overdue rates for one to three months and over three months decreased to 3.39% and 3.02% respectively in Q4 2024 due to enhanced risk control measures[40]. - The company has implemented a risk management framework that includes a risk management committee composed of senior management[152]. - The board is responsible for maintaining an effective risk management and internal control system, addressing various risks including credit and liquidity risks[149]. Operational Efficiency and Technology - The company reported continuous improvement in operational efficiency and profit structure through the integration of AI technology with risk control models[8]. - The company is actively exploring generative AI technology to improve operational efficiency and user experience[20]. - The launch of the AI model "Jinwu" aims to enhance customer service quality and operational efficiency across various business areas[32]. - The company utilizes a proprietary technology called "Hummingbird" for online processing of loan applications, which includes credit assessments and fraud detection[154]. - The company reassesses the creditworthiness of existing customers monthly using a behavioral scoring model, tracking overdue payment rates[154]. Corporate Governance - The board of directors is committed to adopting good corporate governance practices and procedures to manage the company and operate its business[115]. - The company has adopted the corporate governance code as per the listing rules and has complied with applicable code provisions during the year[116]. - The board meets at least four times a year to review the group's operational, financial, and business performance, including interim and annual financial results[121]. - The board has established a diversity policy that considers various perspectives, including gender, age, and professional experience when selecting director candidates[140]. - The company provides indemnification for directors and senior officers for liabilities incurred in the performance of their duties, except in cases of negligence or fraud[132]. Employee and Talent Management - The company is focused on optimizing its talent strategy, aiming to build a highly efficient team with professional capabilities and innovative spirit[12]. - The overall gender ratio of the group's employees, including senior management, is 51% male and 49% female as of December 31, 2024[145]. - The company has established various share incentive plans to provide equity-based incentives and rewards for eligible individuals[190]. - As of December 31, 2024, the company has a total of 870 employees, focusing on attracting and retaining talent to maintain business development capabilities[190]. Environmental and Social Responsibility - The group reported a significant reduction in gasoline consumption by 35.07% compared to 2023, with total greenhouse gas emissions amounting to 1,044.39 tons of CO2 equivalent for the year[173]. - The company made charitable donations amounting to RMB 2.13 million in the current year, compared to RMB 0.08 million in 2023[184]. - The company has identified risks and opportunities related to climate change and is enhancing its greenhouse gas emissions accounting and management[173]. - The company provided services to small and micro enterprises 1,051,162 times in 2024, emphasizing its commitment to supporting this sector[174].