Stock Options - The total number of shares available for issuance under the 2023 stock option plan is 38,756,400 shares, accounting for 10.0% of the total issued shares[5] - The number of stock options granted to directors for the year ending March 31, 2024, totals 13,647,000 shares, with an exercise price of HKD 0.574[3] - The total number of stock options granted to employees, excluding the top five highest-paid individuals, is 4,000,000 shares, with an exercise price of HKD 1.12[4] - The total number of stock options for all categories is 34,947,000 shares[4] - The stock options for the top five highest-paid individuals include 3,800,000 shares for one individual who was among the top five in the previous year[8] - The exercise period for the stock options granted spans from the grant date until December 14, 2032[3] - The weighted average closing price of shares prior to the grant date for the stock options was HKD 0.574[8] Company Outlook - The company has not disclosed any new product developments or market expansion strategies in the current announcement[2] - The company has not provided specific future outlook or performance guidance in this announcement[2] - The company maintains that all other information in the 2023/24 annual report remains unchanged[5]

Share Option Scheme - The total number of share options available for grant under the share option scheme as of April 1, 2023, and March 31, 2024, is 100 million shares each [3]. - The total number of shares that can be issued under the share option scheme is 100 million shares, representing 10% of the total issued shares as of the annual report date, excluding treasury shares [3].

Financial Performance - The revenue for the six months ended February 28, 2025, was approximately HKD 99,441,000, a decrease of 6.0% compared to HKD 105,913,000 for the same period in 2024[10]. - The gross profit for the period was approximately HKD 28,268,000, an increase of 3.0% from HKD 27,434,000 in 2024[10]. - The profit for the period was approximately HKD 4,542,000, down 33.0% from HKD 6,788,000 in the previous year[11]. - Total comprehensive income attributable to the company's owners for the six months ended February 28, 2025, was HKD 5,145,000, a decrease of 28.5% from HKD 7,203,000 in the same period of 2024[21]. - Basic earnings per share for the six months ended February 28, 2025, was HKD 0.284, down 33.1% from HKD 0.424 in the previous year[21]. Expenses and Costs - Administrative expenses increased to HKD 24,142,000 from HKD 20,780,000, reflecting a rise of 16.5%[18]. - Other income and gains decreased to HKD 779,000 from HKD 964,000, a decline of 19.1%[18]. - The company reported a pre-tax profit of HKD 5,215,000, down 29.5% from HKD 7,411,000 in the previous year[18]. - Financing costs increased to HKD 145,000 from HKD 125,000, a rise of 16.0%[18]. - Total employee costs increased to HKD 58,001,000 for the six months ended February 28, 2025, compared to HKD 51,545,000 in the prior year, an increase of 12.5%[58]. Cash Flow and Assets - Net cash used in operating activities for the six months ended February 28, 2025, was HKD (10,205,000), compared to HKD 13,235,000 generated in the same period of 2024[25]. - Cash and cash equivalents at the end of the period were HKD 20,246,000, a decrease of 36.0% from HKD 31,932,000 at the beginning of the period[25]. - Total assets less current liabilities amounted to HKD 93,161,000, an increase of 5.8% from HKD 88,626,000 in the previous period[23]. - Trade receivables increased significantly to HKD 42,253,000, up 43.3% from HKD 29,462,000 as of August 31, 2024[22]. - Non-current assets decreased to HKD 14,627,000 from HKD 14,737,000, reflecting a slight decline of 0.7%[22]. Segment Performance - Installation services generated revenue of HKD 40,466,000, down 21.3% from HKD 51,379,000 in the previous year[35]. - Maintenance services revenue increased by 12.9% to HKD 45,339,000 from HKD 40,274,000[35]. - Security services revenue decreased slightly to HKD 13,452,000 from HKD 14,163,000, a decline of 5.0%[35]. - The total segment profit for the installation and maintenance services was HKD 6,270,000, down from HKD 8,586,000, reflecting a decrease of 26.5%[40][42]. - The total segment profit for security services was HKD 633,000, compared to HKD 843,000, a decrease of 25.0%[40][42]. Corporate Governance - The company is committed to maintaining compliance with the GEM listing rules and ensuring the accuracy of its financial reporting[12]. - The audit committee, established on February 17, 2017, consists of four independent non-executive directors and is responsible for overseeing financial reporting and internal controls[131]. - The company has adopted the corporate governance code as per GEM Listing Rules, with a noted deviation regarding the roles of the Chairman and CEO[128]. - All directors and relevant employees have confirmed compliance with the trading code throughout the reporting period[129]. - The company has maintained good corporate governance practices in line with the corporate governance code, except for the noted deviation[128]. Shareholder Information - Dr. Wu holds 880,000,000 shares, representing approximately 55% of the total issued shares[118]. - Ms. Wang, as the spouse of Dr. Wu, also holds 880,000,000 shares, representing approximately 55% of the total issued shares[118]. - Mr. Yang holds 320,000,000 shares, representing approximately 20% of the total issued shares[123]. - The total number of issued shares as of February 28, 2025, is 1,600,000,000[119]. - There are no arrangements made for directors or senior management to acquire securities of the company or its affiliates outside of the disclosed share option scheme[125].

Financial Reporting - The company will announce its full-year results for the year ending December 31, 2024, on April 15, 2025[3] - All other information in the 2024 annual results announcement remains accurate and unchanged[3] Audit Committee - The audit committee consists of two independent non-executive directors and one non-executive director, who reviewed the group's accounting principles and financial reports[3]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,528,212,000, a decrease from RMB 1,571,343,000 in 2023, representing a decline of approximately 2.7%[4] - Gross profit for the year was RMB 97,301,000, compared to RMB 97,301,000 in 2023, indicating no change in gross profit margin[4] - The net loss for the year was RMB 405,699,000, significantly higher than the net loss of RMB 95,621,000 in 2023, reflecting an increase of approximately 324%[5] - Basic and diluted loss per share for the year was RMB 158.72, compared to RMB 26.83 in 2023, indicating a substantial increase in loss per share[5] - The company reported a loss from continuing operations of approximately RMB 413,400,000 for the year[12] - The net loss attributable to the company's owners for 2024 was RMB 311,294 thousand, compared to a loss of RMB 52,632 thousand in 2023, indicating a substantial increase in losses[22] - The group reported a pre-tax loss from continuing operations of RMB 319,149,000 for 2024, compared to RMB 53,762,000 in 2023, indicating a significant increase in losses[30] Assets and Liabilities - Total non-current assets decreased to RMB 702,725,000 in 2024 from RMB 882,264,000 in 2023, a decline of approximately 20.4%[6] - Current assets totaled RMB 2,995,424,000, slightly up from RMB 2,976,762,000 in 2023, showing a marginal increase of about 0.6%[6] - Total liabilities increased to RMB 1,965,865,000 in 2024 from RMB 1,542,205,000 in 2023, representing an increase of approximately 27.6%[6] - The total liabilities for the company increased to RMB 2,378,131 thousand in 2024 from RMB 2,131,086 thousand in 2023, representing an increase of approximately 11.6%[22] - The net assets of the company decreased from RMB 1,727,940,000 in 2023 to RMB 1,320,018,000 in 2024, indicating a decline of about 24%[7] - The company's total equity also fell from RMB 1,727,940,000 in 2023 to RMB 1,320,018,000 in 2024, a decrease of approximately 24%[7] - The total amount of loans and borrowings increased to RMB 988,594,000 in 2024 from RMB 810,187,000 in 2023, reflecting a rise in financing needs[39] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3] - The company has not experienced significant changes in its main business operations, focusing on residential and commercial property development in China[9] - The company is adjusting sales and pre-sale activities to meet budgeted sales and pre-sale amounts for property projects[16] - The company is actively negotiating with the Zhengzhou Jinshui Science and Technology Park Management Committee regarding project completion assessments[16] Revenue Streams - For the year ending December 31, 2024, the revenue from continuing operations was RMB 43,131 thousand, a significant decrease from RMB 1,528,212 thousand in 2023[22] - The total revenue from discontinued operations was RMB 60,450 thousand in 2024, compared to RMB 84,027 thousand in 2023, reflecting a decline of approximately 28.1%[22] - The company reported a 97% decrease in revenue from property development, down to RMB 43,131 thousand from RMB 1,528,212 thousand in 2023[49] - The equipment manufacturing business generated revenue of approximately RMB 60,500,000 before being classified as discontinued operations as of December 31, 2024[52] Expenses and Cost Management - The company reported a significant increase in administrative expenses, totaling RMB 38,680,000 in 2024 compared to RMB 44,237,000 in 2023, reflecting a decrease of about 12.5%[4] - Selling and distribution expenses were approximately RMB 5,500,000, a decrease of about 53% compared to 2023, mainly due to reduced promotional and marketing activities for real estate projects[54] - Administrative expenses were approximately RMB 38,700,000, a decrease of about 13% compared to 2023, attributed to effective cost control measures[55] - Other operating expenses increased by approximately RMB 64,400,000 to about RMB 73,000,000, mainly due to increased impairment losses on investment properties and subsidiaries[56] Financial Position - Cash and cash equivalents were reported at approximately RMB 7,700,000, excluding restricted cash of about RMB 23,500,000[12] - The net current assets were approximately RMB 1,029,600,000, a decrease of about 28% compared to 2023, mainly due to increases in loans and trade payables[61] - The net debt-to-equity ratio increased to approximately 73% as of December 31, 2024, compared to 43% in 2023[62] Corporate Governance and Compliance - The company has maintained full compliance with the corporate governance code throughout the year ended December 31, 2024[71] - The audit committee has reviewed the annual performance and confirmed that it was prepared in accordance with applicable accounting standards and regulations[70] Future Outlook - The company aims to expand its projects through collaboration and resource integration, focusing on minimizing capital occupation[66] - The company emphasizes cost management from a profitability perspective, optimizing project cost structures to reduce enterprise risk[65] - The company plans to apply new accounting standards related to financial instruments and disclosures starting from 2026[45] Shareholder Information - The board did not declare or recommend any dividends for the year ending December 31, 2024[41] - The company did not declare or recommend any final dividend for the year ended December 31, 2024, consistent with 2023[73] - The company has not engaged in any buybacks, redemptions, or sales of its listed securities during the year ended December 31, 2024[68] Employee Information - As of December 31, 2024, the group had 42 employees, a decrease from 277 employees in 2023[67] - Total employee benefits expenses for the year ended December 31, 2024, amounted to approximately RMB 27,900,000, down from RMB 38,600,000 in 2023[67]

Financial Performance - The company reported a significant decline in financial performance for the year ending December 31, 2024, due to a global economic downturn, with a notable decrease in demand for EPC services and energy storage products [10]. - Solar and energy storage revenue decreased by approximately RMB 21,700,000 or 39.5% to about RMB 33,200,000 compared to the same period last year, primarily due to poor performance in lithium battery storage product sales in the second half of the year [21]. - Logistics services revenue increased by 44.7% to approximately RMB 130,000,000, driven by organic growth from breakthroughs with external customers since Q2 2023 [21]. - Gross profit decreased by approximately 44.9% to about RMB 11,300,000, attributed to changes in the relative proportion of different revenue sources [23]. - The company recorded a pre-tax loss of approximately RMB 48,700,000, a decrease of about RMB 86,500,000 compared to a profit of RMB 37,800,000 in the same period last year [31]. Strategic Investments and Future Opportunities - The company anticipates that China's economic transformation and modernization will create new opportunities and significant growth potential in the renewable energy sector [14]. - The board believes that investments in solar and energy storage businesses will support sustainable development and long-term shareholder value [14]. - The company is actively considering further investments in energy storage and renewable energy storage in Northeast China and Shanxi Province [19]. - The company aims to enhance its financial position and cash flow through various strategies, including seeking cooperation with institutional investors and potential mergers and acquisitions [38]. - The company is open to strategic investments that provide satisfactory returns and synergistic opportunities, including a project involving innovative flywheel energy storage technology in collaboration with a state-owned enterprise [51]. Debt Management and Financial Stability - The company completed three subscription agreements in February 2024, raising approximately HKD 8,700,000 (around RMB 8,300,000) to repay debts [12]. - A strategic investor is in the process of acquiring all outstanding debts owed to Putana, which is expected to resolve long-term default issues [13]. - The total cash proceeds from the subscription agreements amounted to approximately RMB 8,700,000, which has been used to fully repay the company's debts and payables [41]. - The company is actively discussing a debt acquisition with a strategic investor to settle outstanding debts owed to Putana, totaling approximately USD 800,000 [39][40]. - The strategic investor has nearly completed the acquisition of all outstanding debts, which will likely resolve long-term default issues with Putana [40]. Cost Management and Operational Efficiency - The company is implementing cost-saving measures to navigate the challenging business environment while ensuring future sustainable growth [10]. - Administrative expenses increased by approximately RMB 1,900,000 or 6.1% to about RMB 32,400,000, primarily due to strict cost control measures [28]. - Research and development expenses decreased by approximately RMB 400,000 or 30.6% to about RMB 800,000, also due to strict cost control measures [29]. - The company has ceased its upstream manufacturing operations, including solar chip production, and is focusing on asset sales to improve capital structure and cash flow [48]. - The company has implemented strict control measures for its operations and investment activities to improve financial stability [179]. Corporate Governance and Compliance - The company has adopted effective corporate governance practices to ensure transparency and accountability to shareholders [138]. - The board consists of six members, including one executive director and three independent non-executive directors, ensuring a diverse skill set and experience [143]. - The independent non-executive directors have confirmed their independence according to Listing Rule 3.13, ensuring that all are independent individuals [148]. - The audit committee, consisting of three independent non-executive directors, reviewed and approved the consolidated financial statements for the year, ensuring compliance with applicable accounting standards [161]. - The company has established multiple channels for independent non-executive directors to express their opinions openly as needed [148]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's operations from January 1, 2024, to December 31, 2024, focusing on its solar energy and logistics services in China [191]. - The company has committed to enhancing its ESG performance through continuous review and improvement of its management systems, integrating ESG principles into its operations [192]. - The group aims to reduce operational environmental impact and enhance employee and public environmental awareness as part of its long-term corporate social responsibility vision [196]. - The group is committed to reducing its negative environmental impact and fostering a safe and healthy work environment for employees [198]. - Stakeholder engagement is crucial for understanding their perspectives, expectations, and needs, which influences the effectiveness of ESG-related strategies and policies [197].

Financial Performance - The company's operating revenue for 2024 reached RMB 9,025,821,822.22, representing a 25% increase from RMB 7,220,951,536.26 in 2023[10]. - Net profit attributable to shareholders for 2024 was RMB 1,764,339,650.99, up 120% from RMB 803,933,636.60 in 2023[10]. - The company's operating profit for 2024 was RMB 2,824,311,931.32, a significant increase from RMB 1,208,075,054.98 in 2023, marking a growth of 134%[10]. - The total comprehensive income for 2024 was RMB 2,094,827,819.72, compared to RMB 980,500,216.60 in 2023, indicating a growth of 113%[10]. - The company reported a decrease in financial expenses to RMB 155,363,874.45 in 2024, down from RMB 193,139,295.18 in 2023[10]. - The total profit for 2024 is expected to reach 28.19 billion CNY, reflecting a significant increase of 133.73% from 2023[34]. - The net profit attributable to shareholders for 2024 is forecasted at 17.64 billion CNY, which is a 119.46% increase year-over-year[36]. - The total revenue for 2024 is projected to be RMB 8,025,821,821.22, with a quarterly breakdown of RMB 1,853,842,113.41 in Q1, RMB 2,342,294,733.48 in Q2, RMB 2,026,693,783.54 in Q3, and RMB 2,802,991,191.79 in Q4[172]. - The net profit attributable to shareholders for Q4 2024 is RMB 659,173,909.62, showing a significant increase compared to previous quarters[172]. Assets and Liabilities - Total assets increased to approximately RMB 20.33 billion in 2024, up from RMB 18.72 billion in 2023, representing a growth of 8.6%[13]. - Total liabilities decreased to approximately RMB 9.61 billion in 2024, down from RMB 10.18 billion in 2023, a reduction of 5.7%[13]. - The current ratio improved to 158.09% in 2024, up from 131.51% in 2023, indicating enhanced liquidity[14]. - The debt-to-asset ratio decreased to 47.25%, down by 7.11 percentage points from 54.36% in 2023, indicating a reduction in the company's debt levels[177]. - The total bank interest-bearing liabilities decreased to RMB 2.70 billion in 2024 from RMB 3.43 billion in 2023, with short-term borrowings amounting to RMB 1.11 billion[180]. Cash Flow and Investments - Cash and cash equivalents rose significantly to approximately RMB 2.52 billion in 2024, compared to RMB 1.27 billion in 2023, marking an increase of 97.4%[14]. - Operating cash flow for 2024 is expected to be 32.68 billion CNY, which is a growth of 48.36% from 2023[39]. - The cash flow from operating activities for Q4 reached RMB 1,265,302,877.21, indicating strong liquidity and operational efficiency[172]. - The company invested RMB 677,866,937.65 in construction projects, reflecting a year-on-year increase of 14.44%[187]. Research and Development - Research and development expenses increased to RMB 63,615,898.70 in 2024, up 23% from RMB 51,752,511.95 in 2023[10]. - Research and development expenses totaled RMB 6,361.59 million, accounting for 0.70% of operating revenue, with 307 R&D personnel representing 4% of the total workforce[165]. Market Strategy and Growth - The management expressed optimism about future market conditions and set a revenue guidance of over RMB 10 billion for 2025[10]. - The company is exploring potential mergers and acquisitions to further expand its market presence and resource base[10]. - The company aims to enhance internal efficiency to maintain stable growth amid external challenges, reflecting a commitment to adaptability[23]. - The company is focusing on expanding its market presence in Asia, with plans to increase production capacity by 15% over the next fiscal year[58]. - The company has set a revenue growth target of 12% for the upcoming fiscal year, driven by increased production and market expansion efforts[58]. Compliance and Governance - The board has confirmed the appointment of Ernst & Young as the auditor for 2024, ensuring compliance with relevant regulations and standards[16]. - The company is committed to improving compliance with legal regulations and enhancing the quality of information disclosure[73]. - The company has strengthened internal control measures to prevent similar issues from occurring in the future[74]. - The company is committed to achieving "zero major safety incidents and zero environmental events" in its domestic and overseas mines by 2024[123]. Mining Operations and Production - The gold production for 2024 is estimated at 15,158.08 kg, indicating a growth rate of 5.60% compared to 2023[43]. - The gold sales volume for 2024 is projected to be 15,218.00 kg, reflecting a 4.88% increase year-over-year[45]. - The company achieved gold production of 15.16 tons, a year-on-year increase of 5.60%, with domestic mines contributing 3.91 tons (up 14.6%) and overseas mines contributing 11.25 tons[112]. - The company operates seven gold and polymetallic mines across China, Southeast Asia, and West Africa, focusing on gold extraction and sales[132]. Sustainability and Environmental Commitment - The company is committed to sustainable practices, aiming to reduce its carbon footprint by 30% over the next five years through innovative mining techniques[64]. - The company has set a vision for carbon peak by 2030 and carbon neutrality by 2055, demonstrating a long-term commitment to sustainable development[123]. - The company is actively exploring the use of alternative energy sources to reduce reliance on traditional fossil fuels and lower carbon emissions[123]. Human Resources and Management - The company has a strong leadership team with extensive experience in the mining and financial sectors, enhancing its strategic decision-making capabilities[59]. - The management team includes professionals with over 20 years of experience in finance and mining, ensuring robust financial oversight[83]. - The company has implemented an employee stock ownership plan to align the interests of management and staff, fostering a unified mission and vision[139]. Regulatory and Risk Management - The company received a warning letter from the Inner Mongolia Securities Regulatory Bureau regarding a failure to disclose a two-month production halt due to facility upgrades in Q1 2023[71]. - The company is focusing on regulatory compliance and risk management following the incident[74]. - The board of directors is actively overseeing the implementation of corrective measures[73].

Business Performance - The Group reported a cautious optimism regarding business performance despite a volatile macro-economic environment due to global events[20]. - Businesses have tightened their budgets on marketing and advertisement expenses, impacting overall business confidence[20]. - The Group aims to remain resilient in the face of these challenges and is committed to continuous improvement and success[21]. Financial Results - The Group recorded total revenue of approximately HK$20,841,000 for the year ended 31 December 2024, representing a decrease of approximately 12% from approximately HK$23,550,000 for the year ended 31 December 2023[24]. - Total gross profit increased by approximately 44% to approximately HK$9,198,000 for the year ended 31 December 2024, compared to approximately HK$6,375,000 for the year ended 31 December 2023[47]. - Loss attributable to the owners of the Company amounted to approximately HK$19,791,000 for the year ended 31 December 2024, a significant improvement from a loss of approximately HK$73,721,000 for the year ended 31 December 2023[24]. - Revenue from the publications and advertising business increased to approximately HK$13,207,000 for the year ended 31 December 2024, up from approximately HK$9,109,000 for the year ended 31 December 2023[32]. - Revenue generated from online sales of beauty and cosmetics products decreased to approximately HK$684,000 for the year ended 31 December 2024, down from approximately HK$11,321,000 for the year ended 31 December 2023[37]. - Revenue from sales of luxury products increased to approximately HK$6,950,000 for the year ended 31 December 2024, compared to approximately HK$3,120,000 for the year ended 31 December 2023[38]. - The Group did not generate any revenue from the exhibition and trade show business and related services for the year ended 31 December 2024, consistent with the previous year[36]. - Other income increased by approximately HK$485,000 to approximately HK$639,000 for the year ended 31 December 2024, primarily due to government grants related to technology modernization[48]. - The Directors do not recommend the payment of a final dividend for the year ended 31 December 2024[24]. - Gross profit increased by approximately 44% from HK$6,375,000 for the year ended December 31, 2023, to approximately HK$9,198,000 for the year ended December 31, 2024[51]. - Other income rose significantly by approximately 485% from HK$154,000 for the year ended December 31, 2023, to approximately HK$639,000 for the year ended December 31, 2024, primarily due to a government subsidy of HK$629,000 for technological modernization[52]. - The Group recorded other losses of approximately HK$905,000 for the year ended December 31, 2024, compared to other gains of approximately HK$56,802,000 for the year ended December 31, 2023[53]. - Operating expenses increased by approximately 3% from HK$11,360,000 for the year ended December 31, 2023, to approximately HK$11,688,000 for the year ended December 31, 2024[56]. - Finance costs amounted to approximately HK$1,803,000 for the year ended December 31, 2024, compared to approximately HK$1,198,000 for the year ended December 31, 2023[57]. - The loss attributable to owners of the Company for the year ended December 31, 2024, was HK$19,791,000[63]. Financial Position - The current ratio decreased from approximately 0.5 times as of December 31, 2023, to approximately 0.4 times as of December 31, 2024[68]. - Cash and cash equivalents increased to approximately HK$9,590,000 as of December 31, 2024, from approximately HK$3,552,000 as of December 31, 2023[69]. - The gearing ratio improved to approximately 7% as of December 31, 2024, down from 29% as of December 31, 2023[70]. - Trade receivables decreased from approximately HK$25,436,000 to HK$8,598,000, with trade receivable turnover days improving from approximately 217 days to approximately 151 days[73]. Human Resources - As of December 31, 2024, the Group's employee headcount was 12, a decrease from 13 in 2023, with total staff costs amounting to approximately HK$5,330,000, down from approximately HK$7,158,000 in 2023[93]. - The Group conducts annual performance reviews for employees, which influence salary reviews and promotion appraisals, alongside providing bonuses based on financial performance[89]. Corporate Governance - The Group has no major investment or capital asset plans as of December 31, 2024[91]. - There are no significant asset pledges by the Group as of December 31, 2024[92]. - The Group's principal activity is investment holding, with key subsidiaries' activities detailed in note 36 of the consolidated financial statements[119]. - For the year ended December 31, 2024, the Group focused on minimizing environmental damage and ensuring employee well-being, with no recorded non-compliance in environmental and social aspects[121]. - Stakeholder engagement highlighted key material issues including employee health and safety, labor standards, intellectual property rights, customer data protection, and anti-corruption, all of which are actively managed by the Group[121]. - The Group will publish an Environmental, Social and Governance Report within three months of this annual report, detailing environmental policies, stakeholder relationships, and compliance with relevant laws[122]. - Continuous efforts were made to enhance corporate governance and business exposure across various sectors including automobile, construction, and oil and gas[108]. - The Group's financial performance analysis will be included in the Management Discussion and Analysis section of the annual report[120]. - The Group's business operations are committed to advancing environmental, social, and governance management through close communication with stakeholders[121]. - The Group's future business development and potential risks will be discussed in the Chairman's Statement and Management Discussion and Analysis[120]. - The Group has maintained a focus on corporate accounting, finance, and corporate secretarial matters through its financial controller[107]. - The Group's directors have confirmed no changes in their information as required by GEM Listing Rules[113]. Shareholder Information - For the year ended December 31, 2024, the Group's sales to the five largest customers accounted for approximately 26% of total sales, with the largest customer contributing about 12%[139]. - Purchases from the Group's five largest suppliers represented approximately 80% of total purchases, with the largest supplier accounting for around 24%[139]. - The Group did not recommend the payment of any final dividend for the year ended December 31, 2024[127]. - As of December 31, 2024, the Company had no reserves available for distribution to shareholders[130]. - There were no material acquisitions or disposals of subsidiaries and affiliated companies during the year, except for the acquisition of 50.1% of Yantic Limited on April 1, 2023[155]. - The Group adopted a share option scheme on February 16, 2015, which is set to expire on February 16, 2025[157]. - The Remuneration Committee is responsible for recommending the Company's remuneration policy, considering market competitiveness and individual performance[156]. Compliance and Regulations - The Group's operations continued to focus on reducing environmental impact and ensuring employee welfare, with no recorded violations related to environmental and social aspects[125]. - The Group will publish its environmental, social, and governance report within three months after the annual report release, detailing its policies and performance[125]. - The Group's financial performance analysis is included in the management discussion and analysis section of the annual report[125]. - The company adopted a share option scheme on February 16, 2015, which will expire on February 16, 2025[162]. - As of December 31, 2024, the company had 87,091,200 shares issued[178]. - Mr. Lui Man Wah holds a long position of 34,330 shares, representing approximately 0.04% of the company's issued share capital[170]. - There were no interests or short positions in shares or debentures of the company required to be disclosed by directors or chief executives as of December 31, 2024[174]. - The company confirmed compliance with the disclosure requirements under Chapter 20 of the GEM Listing Rules regarding related party transactions[186]. - The company maintained a sufficient public float of not less than 25% of its issued shares as required under the GEM Listing Rules[184]. - The consolidated financial statements for the reporting period were audited by Global Link CPA Limited[189]. - The company has complied with the GEM Listing Rules and the Corporate Governance Code throughout the year[192]. - There were no connected transactions subject to disclosure requirements under the GEM Listing Rules during the year[183]. - The remuneration for the auditors will be proposed for approval at the forthcoming annual general meeting[190]. - The Company has not complied with GEM Listing Rules 5.05(1) and 5.28 since the resignation of Ms. Liu Xiaomin on January 13, 2025, which requires at least three independent non-executive directors and a minimum of three members in the audit committee[193][196]. - The Company currently has no CEO, with all CEO duties shared among executive Directors, which the Board believes allows for prompt decision-making and effective response to changing environments[194][197]. - The Company is committed to enhancing its corporate governance standards to comply with regulatory requirements and meet the growing expectations of shareholders and investors[195][197]. - The Company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in GEM Listing Rules 5.48 to 5.67, with all Directors confirming compliance during the year ended December 31, 2024[198]. - Directors and officers are indemnified under a liability insurance policy against any liabilities incurred while discharging their duties[199]. - The Board of Directors is responsible for the leadership and monitoring of the Company, collectively promoting the success of the Group[200].

Financial Performance - The company's revenue for 2024 was RMB 326.03 million, a significant decrease from RMB 565.61 million in 2023, representing a decline of approximately 42.3%[6]. - The gross profit for 2024 was RMB 162.64 million, down from RMB 299.51 million in 2023, indicating a decrease of about 45.5%[6]. - The company reported a net loss of RMB 188.80 million for 2024, compared to a loss of RMB 36.30 million in 2023, marking a significant increase in losses[6]. - Revenue decreased by approximately RMB 239.6 million or 42.4% to about RMB 326.0 million for the year ended December 31, 2024, down from approximately RMB 565.6 million in 2023[15]. - The company's gross profit for 2024 was approximately RMB 162.6 million, with a gross margin of about 49.9%, down from a gross profit of approximately RMB 299.5 million and a gross margin of 53.0% in 2023[17]. - The company reported a net loss of approximately RMB 188.8 million for the year ended December 31, 2024, representing a significant increase in loss of about 420.2% compared to the previous year[12]. Expenses and Liabilities - Research and development expenses reached RMB 106.26 million in 2024, which contributed to the overall loss for the year[9]. - The total liabilities increased to RMB 869.80 million in 2024, up from RMB 781.52 million in 2023, reflecting an increase of about 11.3%[7]. - Selling and distribution expenses decreased by approximately RMB 58.5 million or 42.0% to about RMB 81.0 million in 2024, compared to RMB 139.5 million in 2023[19]. - The company achieved a significant reduction in general and administrative expenses, which fell by approximately RMB 14.6 million or 19.5% to about RMB 60.3 million in 2024[20]. - Financing costs net increased to approximately RMB 18.8 million in 2024 from RMB 8.8 million in 2023, mainly due to increased interest on loans and foreign exchange losses[22]. Market and Future Outlook - Future market uncertainties remain the biggest challenge, but management aims to achieve profitability through refined management and quick adjustments[10]. - The company plans to enhance its product pipeline with new products pending approval, which could contribute to future revenue growth[9]. - The company expects to participate in national centralized procurement, with flagship products successfully winning bids, which is anticipated to drive significant sales growth in 2025[14]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some exceptions noted[68]. - The board of directors is responsible for overseeing the company's overall strategy and performance, including risk management and internal controls[71]. - The company has provided liability insurance for its directors and senior management to cover potential legal liabilities incurred during the performance of their duties[72]. - The independent non-executive directors have confirmed compliance with the non-competition agreement provided by the controlling shareholders[70]. - The company has established a comprehensive internal control system to monitor financial performance and risk management[72]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development and has implemented measures to reduce environmental impact, including energy-saving and emission-reduction initiatives[125]. - The company aims to create a green pharmaceutical enterprise, actively promoting clean production and pollution reduction to support national carbon neutrality goals[137]. - The company is focused on enhancing its ESG governance framework and internal controls to ensure scientific and rational decision-making[125]. - The company has established a comprehensive ESG governance structure, with the Audit Committee responsible for overseeing ESG reporting processes and risk management[135]. - The company is committed to enhancing product quality and safety, accelerating the development of innovative products, and strengthening quality control measures[145]. Climate Change and Risk Management - The company is facing physical risks from extreme weather affecting supply chains and production facilities, and is implementing strategies such as diversified procurement and facility reinforcement[150]. - The company is investing in new technologies and processes to adapt to extreme weather, including the development of resilient medicinal materials[148]. - The company has established a climate risk management process, identifying and analyzing climate-related risks annually within its governance structure[162]. - The company aims to reduce carbon emissions by 20% by 2025 compared to 2020 levels, with a target to decrease unit product energy consumption by 5% and increase green electricity procurement rate to 10%[165]. Employee and Stakeholder Engagement - The company emphasizes the importance of employee development and training, focusing on innovative drug research and optimizing the traditional Chinese medicine industry chain[140]. - The company has identified key stakeholders, including employees, consumers, suppliers, and investors, and has established multiple communication channels to address their concerns[142]. - The workforce composition is 50.91% female and 49.09% male, reflecting the company's commitment to gender diversity[97].

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 467,010,000, a decrease of 27.7% compared to RMB 645,084,000 in 2023[4] - Gross profit for the year was RMB 105,691,000, down 28.5% from RMB 147,751,000 in the previous year[4] - The net loss for the year was RMB 361,130,000, compared to a loss of RMB 4,493,000 in 2023, indicating a significant increase in losses[5] - The total comprehensive loss for the year amounted to RMB 360,153,000, compared to RMB 4,609,000 in 2023, highlighting a significant deterioration in overall performance[5] - The basic loss per share for the year was RMB 12.52, compared to RMB 2.33 in the previous year, indicating a worsening financial position[5] Revenue Breakdown - For the fiscal year ending December 31, 2024, the total revenue was CNY 467,010,000, with contributions from Men's Apparel at CNY 93,124,000, Industrial Products at CNY 365,057,000, and Energy Storage Batteries at CNY 8,829,000[18] - The total revenue for the fiscal year ending December 31, 2023, was CNY 645,084,000, with Men's Apparel generating CNY 122,506,000, Industrial Products CNY 517,037,000, and Energy Storage Batteries CNY 5,541,000[19] - Revenue from external customers in China decreased to RMB 101,953 million in 2024 from RMB 128,047 million in 2023, representing a decline of 20.3%[24] - Revenue from the industrial products division decreased by approximately 29% compared to the previous year due to the Red Sea crisis affecting shipping routes to Saudi Arabia[52] - Revenue from the men's apparel segment decreased by about 24.0% year-over-year, attributed to lower sales prices and a shift in consumer purchasing habits towards online channels[72] Expenses and Losses - The provision for expected credit losses increased significantly to RMB 211,311,000 from RMB 2,920,000, marking a substantial rise in credit risk[4] - Administrative expenses increased to RMB 156,973,000 from RMB 89,584,000, representing a rise of 75.3%[5] - The company reported a tax expense of CNY (44,072,000) for the fiscal year ending December 31, 2024[18] - The company incurred a pre-tax loss of RMB 211,311 thousand in 2024, compared to a pre-tax profit of RMB 2,920 thousand in 2023[28] - The industrial products segment reported a loss of RMB 132.5 million in 2024, a significant increase of 235.9% compared to a loss of RMB 97.5 million in 2023[81] Assets and Liabilities - Total assets decreased from RMB 1,739,685 thousand in 2023 to RMB 1,131,348 thousand in 2024, a decline of approximately 34.9%[6] - Current assets decreased from RMB 937,231 thousand in 2023 to RMB 668,638 thousand in 2024, a decline of approximately 28.7%[6] - Total liabilities decreased from RMB 974,130 thousand in 2023 to RMB 922,802 thousand in 2024, a decline of about 5.3%[7] - The company's equity attributable to shareholders decreased from RMB 686,420 thousand in 2023 to RMB 394,785 thousand in 2024, a decline of approximately 42.5%[7] - The net debt to equity ratio was approximately 119.3% as of December 31, 2024, up from 56.3% in 2023[99] Share Capital and Financing - The company issued 398,856,000 new shares at HKD 0.50 per share in December 2023, raising additional capital[37] - The company plans to issue 59,574,000 new shares at HKD 0.50 each as part of a subscription agreement[47] - The company issued HKD 26,205,000 convertible bonds on May 30, 2023, with an annual interest rate of 8%[39] - The total value of the subscribed shares amounts to HKD 997,140,000, with the net proceeds from the subscription estimated at approximately HKD 199.1 million (around RMB 180.4 million)[124] - The company has committed to maintaining transparency and compliance with the Hong Kong Stock Exchange regulations[140] Market and Strategic Outlook - The company plans to continue focusing on its core segments while exploring opportunities for market expansion and new product development[18] - The company is positioned to benefit from Saudi Arabia's Vision 2030, which aims to diversify the economy and reduce oil dependency, creating opportunities in the automotive supply chain[55] - The company anticipates increased demand for industrial products due to strong non-oil income in Saudi Arabia, leading to higher renovation activities[57] - The company is committed to exploring new market opportunities and enhancing its product offerings in response to evolving customer needs in the region[50] - The company has established a research and production base for zinc-bromine flow batteries, with the first phase of development completed in November 2022[67] Employee and Operational Insights - The company’s total employee compensation, including salaries and benefits, was RMB 38,830 thousand in 2024, up from RMB 30,933 thousand in 2023[28] - The group has 180 employees as of December 31, 2024, with total employee costs amounting to approximately RMB 38.8 million for the year, up from RMB 30.9 million in 2023[115] - The company emphasizes recruiting high-quality talent from universities and technical colleges, providing ongoing training and development opportunities for employees[115] - The restructuring of surplus factories in Quanzhou is in the final stage and is expected to generate rental income and advertising fees from the new home and commercial renovation platform[111] - The company continues to invest in product design and R&D capabilities to capture fashion trends and improve product offerings[63]