Voting Rights and Share Structure - Tencent Music Entertainment Group holds 93.8% of the voting rights through its Class B shares as of April 9, 2025[3]. - The total number of outstanding shares is 3,097,809,008, comprising 1,432,859,756 Class A shares and 1,664,949,252 Class B shares[2]. - If all Class B shares are converted to Class A shares, the total Class A shares would increase to approximately 116.2% of the current total[3]. - Tencent and Min River have committed to notify the company before transferring any Class B shares, ensuring they are converted to Class A shares[4]. - EMI Group Limited holds 24,492,362 Class B shares, representing 1.4% of the voting rights[2]. - Tencent is considered the beneficial owner of 141,415,349 Class A shares held by Spotify AB due to a voting agreement[2]. - The company has ten different voting rights beneficiaries, with six being early investors holding nominal interests[2]. - The voting rights structure allows Class B shareholders to convert their shares to Class A shares at any time[3]. - The company has received a waiver from strict compliance with certain Hong Kong listing rules for early investors[2]. - The company has a dual-class voting structure, with Tencent as the primary beneficiary holding a significant proportion of voting rights[7]. - Investors are advised to consider the potential risks associated with investing in companies with different voting rights structures, as the interests of different voting rights beneficiaries may not always align with those of overall shareholders[7]. - The company’s articles of association stipulate that any transfer of B-class shares will only be effective upon registration in the company’s shareholder register[6]. Financial Performance and Revenue Growth - The average revenue per paying user for online music services increased by 15% year-over-year[15]. - The total number of paying users for social entertainment services reached 10 million, representing a growth of 20% compared to the previous year[15]. - The company reported a total revenue of $1.2 billion for the last quarter, a 12% increase from the same period last year[15]. - The paid user conversion rate improved to 25%, up from 22% in the previous quarter[15]. - Future guidance indicates expected revenue growth of 15-20% for the upcoming fiscal year[15]. - The company anticipates changes in revenue, content-related costs, and operating profit margins[21]. - The company aims to achieve a 10% increase in overall profitability through cost optimization strategies[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user base by the end of the next fiscal year[15]. - New product launches in the AI-generated content space are expected to contribute an additional $200 million in revenue over the next year[15]. Operational Structure and Variable Interest Entities - Tencent Music Entertainment Group operates through variable interest entities due to restrictions on foreign investment in certain Chinese sectors[24]. - The company has significant contracts with variable interest entities that allow it to influence their economic performance and obtain most of their economic benefits[24]. - Tencent Music's structure includes various subsidiaries and variable interest entities, ensuring compliance with Chinese laws while maximizing operational efficiency[25]. - The company has a 100% ownership in Tencent Music Entertainment (Shenzhen) Co., Ltd., which operates key services like QQ Music and K Song[27]. - Guangzhou Kugou and Beijing Kuwo, both subsidiaries, are primarily controlled by Tencent, with ownership stakes of 99.6096% and 61.64% respectively[27]. - The company has established partnerships and agreements with local entities to navigate regulatory challenges in the Chinese market[24]. - Tencent Music's business model relies heavily on exclusive purchase rights and service agreements with its variable interest entities[24]. Regulatory Environment and Compliance - The establishment of the National Data Bureau in China on October 25, 2023, aims to enhance the coordination of data resource integration and utilization, impacting the digital economy and data security regulations[46]. - The Cybersecurity Review Measures require network platform operators with over one million users' personal information to undergo cybersecurity reviews before listing abroad, affecting future market strategies[46]. - The Data Cross-Border Flow Regulations, effective from March 22, 2024, mandate security assessments for data processors providing data overseas under certain conditions, influencing international operations[47]. - The company must ensure compliance with the Personal Information Protection Compliance Audit Management Measures, which will be effective from May 1, 2025, requiring audits for entities processing over 10 million personal data[47]. - The company maintains a comprehensive data protection program and has implemented strict internal policies to ensure compliance with cybersecurity and data privacy regulations[48]. - The China Securities Regulatory Commission (CSRC) issued new rules effective March 31, 2023, requiring domestic companies seeking overseas listings to file with the CSRC[49]. - Regulatory bodies in China have intensified scrutiny of live streaming businesses, enforcing real-name registration and restrictions on user tipping[51]. - The implementation of live streaming regulations may adversely affect the company's business and long-term performance due to increased compliance requirements[52]. - Recent amendments to China's Anti-Monopoly Law have strengthened regulations on online platforms, prohibiting monopolistic practices using data and algorithms[53]. - The new anti-monopoly regulations include penalties for failing to notify authorities about mergers that may restrict competition, with fines up to 10% of the previous year's sales[53]. Legal Risks and Liabilities - The company faces significant legal and operational risks due to regulatory powers in China that can impact business operations and foreign investments[29]. - Future regulatory actions may lead to substantial penalties or changes in the company's corporate structure, affecting the financial performance of the variable interest entities[29]. - The company may encounter challenges in executing contractual arrangements with variable interest entities due to uncertainties in the interpretation and application of current and future Chinese laws[28]. - The company faces potential legal liabilities related to user-generated content uploaded to its platform, especially if users have not secured necessary copyright permissions[73]. - The company has been involved in lawsuits related to copyright infringement, which may increase as it continues its international expansion[78]. - The complexity of the company's licensing agreements may impose various obligations that could adversely affect its business operations and financial performance[80]. - The company may incur substantial costs and resource expenditures in defending against infringement claims, regardless of their validity[78]. - The company faces potential legal liabilities if it fails to comply with copyright laws, particularly if it does not take timely action upon receiving proper notifications from rights holders[74]. User Engagement and Content Strategy - The company aims to retain and attract users while expanding its music and audio entertainment content offerings[21]. - The company’s ability to attract and retain users may be significantly adversely affected if it fails to predict user preferences and provide content that meets user needs[61]. - The company is committed to investing substantial resources in content acquisition and production, but may face challenges in successfully sourcing attractive content or recovering investments made in this area[67]. - The company has introduced a paid streaming model for its online music service since Q1 2019 and continues to increase the number of songs under this model, but cannot guarantee sustained popularity or successful exploration of new monetization models[87]. - The company faces challenges in providing high-quality and user-friendly experiences, continuously introducing attractive content, and managing data security and user privacy risks[88]. - The company's strong brand is crucial for retaining and expanding user base and advertising clients, relying on the ability to provide comprehensive and high-quality content and services[90]. Financial Health and Investment - The company has allocated $100 million for research and development in new technologies, focusing on IoT integration[15]. - The company reported a tax rate of 25% on pre-tax profits, leading to a net distributable profit of 67.5% after withholding tax[32]. - The management believes the likelihood of double taxation due to non-deductible expenses being transferred to the Chinese subsidiary is low, which would otherwise reduce post-tax income to approximately 50.6% of pre-tax income[33]. - The company is exploring tax planning strategies to mitigate potential tax liabilities arising from intercompany transactions[32]. - The company is facing regulatory uncertainties in the online music and audio entertainment industry, particularly regarding exclusive copyright agreements, which may impact its business operations and financial performance significantly[97]. - The company requires substantial capital for content acquisition, user acquisition, and technology investments, and failure to secure adequate funding may negatively affect its business outlook[150]. Market Competition and Challenges - The online music and audio entertainment market is rapidly evolving, and the company's success depends on keeping pace with technological changes and user behavior shifts[91]. - The company competes with other online music service providers and social entertainment platforms, facing increasing competition from emerging content forms like live streaming and user-generated short videos[100]. - Competition is based on various factors including content diversity, product features, user experience, and the ability to attract and retain key opinion leaders and live streamers, which are crucial for user engagement[101]. - The company relies on live streamers to drive user traffic and engagement, and any failure to retain these talents could negatively impact its live streaming services[102]. Cybersecurity and Data Protection - The company is subject to extensive regulation in China, and failure to obtain or maintain necessary licenses could lead to significant adverse effects on its business and financial performance[92]. - The company has implemented comprehensive measures to reduce the likelihood of unauthorized content usage, including requiring user confirmation not to upload infringing content[74]. - The company faces risks related to inappropriate behavior by live streamers and users, which could adversely affect its brand image and business operations[105]. - The integration of AI technologies, such as the DeepSeek language model, aims to enhance user experience by enabling personalized music creation and recommendations[113]. - Compliance with evolving cybersecurity and data protection laws may incur significant costs and could necessitate unfavorable changes to the company's operations[124]. Strategic Partnerships and Collaborations - The company relies heavily on its strategic partnership with Tencent, and any disruption in this relationship could significantly impact its business and operational performance[169]. - Several directors of the company are also employees of Tencent, which may create or appear to create conflicts of interest when decisions arise that could impact both parties differently[178]. - The company has entered into an agreement with a content partner, which includes provisions for resolving disputes related to copyright claims, but cannot guarantee immunity from potential infringement claims[72]. Future Outlook and Strategic Initiatives - The company is continuously exploring new markets and regions due to its increasing brand recognition, which may not yield the expected long-term benefits[121]. - The company is actively seeking to expand its market presence and may pursue additional licenses to enhance its service offerings in compliance with local regulations[95]. - The company is investing heavily in content creation and innovation to enhance user experience, which may impact short-term profitability[121]. - The company faces potential economic losses and reputational damage due to privacy issues and security vulnerabilities, which may deter users from utilizing its products[122].

Financial Performance - Baozun achieved a revenue growth of 7% year-over-year in 2024, marking a significant milestone in operational efficiency and management capabilities[8]. - The company achieved a revenue of RMB 1.2 billion, which is a 10% increase compared to the previous year[22]. - Total net revenue for the year 2024 was approximately RMB 9,422.2 million (USD 1,290.8 million), representing a growth of 6.9% compared to RMB 8,812.0 million in 2023, primarily driven by a 9.2% increase in service revenue[61]. - Service revenue reached RMB 5,955.3 million, up 9.2% from RMB 5,454.8 million in 2023, largely due to a 22.2% increase in digital marketing and IT solutions[61][63]. - The company anticipates its core business will enter a high-quality growth phase, generating stable cash flow, while brand management is expected to unlock new growth opportunities[14]. - Future guidance indicates expected revenue growth of 12-15% for the upcoming quarter[22]. - The net loss for the year was approximately RMB 138.4 million (USD 19.0 million), an improvement from a net loss of RMB 222.8 million (USD 31.4 million) for the year ended December 31, 2023[73]. - The non-GAAP operating profit for the fiscal year 2023 was RMB 10.6 million, compared to a non-GAAP operating loss of RMB 23.7 million in the previous fiscal year[34]. Market Expansion - The number of brand partners served by Baozun's e-commerce business increased to over 490, up from approximately 450 in 2023, indicating continued market expansion[10]. - Baozun Inc. plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region over the next fiscal year[22]. - The company plans to introduce its brand Hunter into the Singapore and Malaysia markets, enhancing its market coverage and cross-business collaboration[11]. - The company has expanded its business into three lines: Baozun E-commerce (BEC), Baozun Brand Management (BBM), and Baozun International (BZI) to create a synergistic ecosystem[34]. - The company has established two operating segments: E-commerce business (including BEC and BZI) and Brand Management (BBM) following the acquisition of Gap Shanghai[35]. Brand Management - Baozun's brand management segment reported a revenue increase of 16% in 2024, with operating losses narrowing by 10%[10]. - The company has launched a new product line aimed at small and medium-sized enterprises, projected to contribute an additional RMB 200 million in revenue[22]. - 宝尊品牌管理在2024财年实现营收人民币1,314百万，经营GAP在中国内地的152间线下店铺[52]. - 2024年，宝尊品牌管理计划在中国新开设超过50家Gap门店，并在关键城市设立快闪店以测试市场[50]. - 宝尊品牌管理的线下门店总数截至2024财年为156家，显示出持续的市场扩张[50]. Technological Advancements - Baozun was recognized as a representative service provider in the DOM field by Gartner, highlighting its technological capabilities[12]. - The company is investing RMB 300 million in new technology development, focusing on AI-driven logistics solutions[22]. - The company aims to strengthen its technology and content capabilities to support brand operations and enhance consumer engagement[60]. - The company expanded its regional service centers to help reduce costs while actively utilizing AI-generated content tools like ChatGPT and MidJourney to improve efficiency in various areas[48]. Customer Satisfaction - Baozun's net promoter score (NPS) improved from 8.23 to 8.53, with a core customer renewal rate reaching 95%[10]. - As of December 31, 2024, the company provided services to over 490 brand partners, with a net promoter score rising from 8.06 in FY2023 to 8.23 in FY2024, indicating improved customer satisfaction[47]. Corporate Governance - The company has adopted the corporate governance code as its own governance framework, aiming for high standards in corporate governance to protect shareholder interests[121]. - The board consists of eight members, including five executive directors and three independent directors, ensuring diverse business experience[128]. - The company has established mechanisms to ensure independent viewpoints are provided to the board, with independent directors constituting over one-third of the board[131]. - The board will regularly assess the effectiveness of its structure to ensure it meets the company's needs[128]. - The company has implemented a stock option and restricted share unit plan as part of its employee compensation strategy[101]. Environmental, Social, and Governance (ESG) Initiatives - The company has committed to improving its ESG initiatives, with a target of reducing carbon emissions by 30% by 2025[22]. - Three of Baozun's parks received ISO 14064 carbon verification certification, with two achieving PAS 2060 carbon neutrality certification[13]. Employee Development - The company has established a comprehensive training program, including onboarding and on-the-job training, to enhance performance and service quality[102]. - The company upgraded its training facility to the Baosun Capability Development Center in 2024, offering a comprehensive practical training program tailored to different skill levels[102]. - The company has continuously improved its talent development initiatives, particularly through the Baosun New Youth Program, for three consecutive years[102]. Risks and Challenges - The company's financial performance is highly sensitive to changes in China's economic and political conditions, affecting consumer confidence and spending levels[185]. - The group may face challenges in retaining existing brand partners, as contracts typically range from 12 to 36 months and may not be renewed on favorable terms[181]. - The company faces significant risks related to the complexity and challenges that brand partners encounter when seeking online sales, which could impact the demand for its solutions[178]. - The group identified several key uncertainties, including the growth rates of internet penetration and online retail consumer trust in China, which could affect its business outlook[179].

Financial Performance - In 2024, the company's revenue increased by 4% to HKD 2,668,600,000, a historical high compared to HKD 2,562,800,000 in 2023[3] - The profit attributable to owners rose by 16% to HKD 214,400,000, up from HKD 185,200,000 in 2023[3] - Quarto's revenue for the year ended December 31, 2024, was approximately HKD 2,668.6 million, an increase of 4.1% compared to HKD 2,562.8 million in 2023[25] - Revenue for the year ended December 31, 2024, was HKD 2,668,586,000, an increase of 4.1% from HKD 2,562,781,000 in 2023[173] - Gross profit for the same period was HKD 890,145,000, representing a gross margin of 33.4% compared to 32.8% in 2023[173] - Net profit for the year was HKD 253,592,000, up 5.4% from HKD 240,722,000 in the previous year[173] - Basic earnings per share increased to HKD 0.2858 from HKD 0.2497, reflecting a growth of 14.5%[173] - Total comprehensive income for the year was HKD 207,745,000, down from HKD 243,792,000 in 2023, a decline of 14.8%[173] Dividends - The company announced a second interim dividend of HKD 0.08 per share and a special dividend of HKD 0.02 per share, totaling HKD 0.145 per share for the year, reflecting confidence in long-term prospects[5] - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 23,100,000, and a special dividend of HKD 0.015 per share, totaling HKD 11,550,000, distributed on September 24, 2024[86] - The company will not declare a final dividend for the year ending December 31, 2024, compared to HKD 0.08 per share in 2023[86] - The company declared a proposed dividend of HKD 61,600 thousand for the year, consistent with previous distributions[179] Operational Highlights - The printing manufacturing segment, including Huixing Printing and Papercraft, contributed to revenue growth despite challenges in the global illustrated book market[8] - Papercraft's revenue surged by 95% due to expanded printing capacity and increased service demand, although profitability did not meet expectations[14] - The printing division's revenue grew by 7.6% due to the normalization of inventory levels among publishers and advance orders to mitigate expected tariff increases in 2025[25] - The Australian manufacturing segment experienced a 6% decrease in revenue, but profits showed slight growth, focusing on leisure books and technical journals[12] - The company is expanding its capacity in Malaysia to meet the ongoing demand for book printing in Southeast Asia[23] Market Conditions - The global book market saw a 1% increase in printed book unit sales in the US, with adult fiction growing by 5%, while adult non-fiction and children's books declined by 0.4% and 0.7% respectively[8] - The Chinese book market contracted by 6%, leading to increased competition among local printers for overseas orders[9] - The company expects a slight improvement in the Chinese book market in 2025, despite ongoing local printing capacity shortages[22] - The anticipated implementation of the EU Deforestation Regulation by December 30, 2025, will limit paper choices for European publishers, potentially benefiting large printing companies compliant with the regulation[22] Cost and Expenses - Sales and distribution expenses increased from approximately HKD 350.1 million in 2023 to HKD 377.5 million in 2024, with the expense ratio rising from 13.7% to 14.1% due to higher freight costs in the printing division[26] - Administrative expenses rose from HKD 212 million in 2023 to approximately HKD 231.5 million in 2024, mainly due to increased costs associated with the publishing business[26] - The company's effective tax rate for the year was approximately 19.5%, slightly up from 19.4% in 2023[173] Financial Position - The group's current assets net value was approximately HKD 947.7 million as of December 31, 2024, down from HKD 991.5 million in 2023, with cash and cash equivalents decreasing from HKD 780.1 million to HKD 500.5 million[29] - The capital debt ratio improved to 17.2% in 2024 from 27.0% in 2023, indicating a stronger equity position relative to interest-bearing debt[29] - Total assets decreased from HKD 1,913,851 thousand in 2023 to HKD 1,651,462 thousand in 2024, a reduction of approximately 13.7%[174] - Cash and cash equivalents dropped significantly from HKD 780,094 thousand in 2023 to HKD 500,488 thousand in 2024, a decline of around 35.9%[174] Strategic Initiatives - The company is investing AUD 15,000,000 to replace aging machinery in Australia to improve production efficiency and meet customer expectations[13] - The company is upgrading its AI systems to automate more production workflows, aiming for further cost savings and competitive advantage[22] - The company is focusing on digital printing technology, which is expected to revolutionize the industry by reducing operational time and inventory costs[79] - The company is considering strategic acquisitions to bolster its portfolio, with potential targets identified in the H sector[7] Governance and Compliance - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[122] - The company has adopted a diversity policy for its board members, currently including one female director[123] - The Audit Committee conducted three meetings in 2024 to review the group's annual report and financial statements, ensuring compliance with applicable accounting standards[142] - The independent non-executive directors confirmed that all related transactions were conducted in the ordinary course of business and on normal commercial terms[111] Risks and Challenges - The company faces risks from macroeconomic conditions, which may impact long-term profitability and business growth due to uncertainties in various global markets[77] - The increasing trend of digital media consumption is affecting the demand for printed materials, potentially impacting the company's financial performance[78] - The company continues to assess its internal controls related to credit monitoring and expected credit losses[167]

Financial Performance - The company reported a net profit of RMB 2.2421 million for the fiscal year ending December 31, 2024, with an accumulated undistributed profit at the beginning of the year showing a loss of RMB 656.6687 million[5]. - The company plans not to distribute profits or increase capital reserves for the fiscal year 2024 due to the negative undistributed profit at year-end, which stands at RMB 654.4266 million[5]. - The board of directors does not recommend declaring dividends for the year ending December 31, 2024[5]. - The company's operating revenue for 2024 was RMB 4.59 billion, a decrease of approximately 30% compared to RMB 6.60 billion in 2023[19]. - The net loss attributable to shareholders for 2024 was RMB 609.93 million, a shift from a net profit of RMB 394.72 million in 2023, representing a decline of 254.52%[19]. - The cash flow from operating activities for 2024 was a net outflow of RMB 393.89 million, compared to a positive cash flow of RMB 143.51 million in 2023, indicating a significant decrease of 374.48%[19]. - The basic earnings per share for 2024 was -RMB 0.94, a decline of 254.10% from RMB 0.61 in 2023[22]. - The total assets at the end of 2024 were RMB 12.31 billion, a slight decrease of 0.99% from RMB 12.43 billion at the end of 2023[19]. - The company's net assets attributable to shareholders decreased by 13.18% to RMB 4.02 billion at the end of 2024, down from RMB 4.63 billion at the end of 2023[19]. - The company's total revenue for 2024 was RMB 4.59 billion, a decrease of 30.4% compared to RMB 6.60 billion in 2023[88]. - The total profit for 2024 was a loss of RMB 780.77 million, compared to a profit of RMB 501.37 million in 2023[88]. Operational Challenges - The company faced intensified competition and a continuous decline in prices within the photovoltaic industry, leading to a deep adjustment period for the entire sector[30]. - Despite external challenges, the company remains focused on the development of new energy materials and aims to stabilize its operations while seeking growth opportunities[30]. - The gross margin for the main business products decreased by over 16 percentage points, resulting in a shift from profit to loss[42]. - The company reported a significant increase in financial expenses, which rose by 49.89% to RMB 111,115,163.24 due to an increase in interest-bearing liabilities[41]. - The company experienced a significant drop in other income, which decreased by 75.57% to RMB 57,485,781.88 from RMB 235,282,495.33[40]. - The sales volume of photovoltaic glass was 34,006,000 square meters, a decrease of 6.65% compared to the previous year[48]. Investments and Projects - The company completed an investment of approximately RMB 1.47 billion in the first phase of the solar photovoltaic cell packaging materials project, with production lines A and B achieving operational readiness[31]. - The actual investment amount for the first phase of the Luoyang New Energy solar photovoltaic cell packaging material project reached RMB 874 million, accounting for approximately 7.10% of the company's total assets as of the end of the reporting period[79]. - The actual investment amount for the first phase of the Northern Glass solar photovoltaic cell packaging material project was RMB 611 million, representing about 4.97% of the company's total assets at the end of the reporting period[79]. - The cumulative investment amount for the Luoyang New Energy project reached RMB 1.47 billion, accounting for approximately 11.95% of the company's total assets as of the end of the reporting period[79]. - The cumulative investment amount for the Northern Glass project was RMB 900 million, representing about 7.31% of the company's total assets at the end of the reporting period[79]. Governance and Compliance - The company has maintained the public float as required by the Stock Exchange rules[118]. - The company strictly adheres to the Corporate Governance Code and has reviewed its governance practices regularly[120]. - The company has established a clear division of responsibilities among the shareholders' meeting, board of directors, supervisory board, and management[124]. - The company has implemented measures to ensure the independence of its assets, personnel, and operations from its controlling shareholders[127]. - The company actively engages with investors through various communication channels, ensuring timely responses to inquiries[126]. - The company has approved framework agreements for raw material procurement and product sales for the years 2024 to 2026[130]. - The company will hold its 2023 Annual General Meeting on June 25, 2024, to approve the 2023 financial statements and profit distribution plan[131]. - The total audit fee for the 2024 fiscal year is set at RMB 1.6 million, subject to adjustment based on actual audit workload[131]. - The company has no significant changes in the number of shares held by directors and supervisors at the beginning and end of the reporting period[133]. - The company has appointed a new independent non-executive director, Zhang Yajuan, who has a legal background and is currently a senior partner at Tianyuan Law Firm[135]. Research and Development - The company conducted 54 R&D projects with an investment of nearly RMB 200 million, representing over 4% of operating revenue, and applied for 76 patents[33]. - Research and development expenses were RMB 174,176,284.10, a decrease of 30.75% compared to RMB 251,522,948.01 last year[40]. - The number of R&D personnel was 375, accounting for 13.54% of the total workforce[63]. - The company has established a two-tier training system to enhance employee skills and ensure healthy growth[176]. Employee and Management Structure - The company has a total of 2,769 employees, with 58 in the main company and 2,711 in subsidiaries[172]. - The employee composition includes 2,107 production staff, 43 sales personnel, 254 technical staff, 48 finance staff, and 317 administrative staff[172]. - The female employee ratio is 26.07%, reflecting the company's commitment to gender diversity[177]. - The performance evaluation of senior management is based on an annual target responsibility system linked to operational performance[182]. - The management team includes the president, vice presidents, financial director, and board secretary, ensuring close communication with all directors[200].

Financial Performance - The Group recorded a loss of approximately HK$99.0 million for the year ended December 31, 2024, compared to a loss of approximately HK$15.8 million for the year ended December 31, 2023, representing an increase in loss of approximately HK$83.2 million[19]. - Total revenue for the year ended December 31, 2024, was approximately HK$32.3 million, a decrease of approximately HK$117.7 million compared to the previous year[20]. - Revenue from trading of motor vehicles, agency services, and accessories sourcing was approximately HK$32.1 million for the year ended December 31, 2024, down from approximately HK$149.7 million in the previous year, indicating a decrease of approximately 78.8%[20]. - The significant drop in revenue was primarily due to the adverse market conditions affecting the automotive sector[19]. - The Group's financial performance reflects the challenges faced in the current economic environment, impacting both revenue and profitability[21]. - The loss for the year ended December 31, 2024, was mainly attributable to the significant drop in revenue and the recognition of impairment losses[19]. - The significant loss was attributed to a drop in revenue, an impairment loss on advance payments for trading motor vehicles of approximately HK$75.8 million, and an impairment loss on property acquisition of approximately HK$1.5 million[38]. - The Group recorded total revenue of approximately HK$32.3 million for the year ended December 31, 2024, a decrease of approximately 78.5% compared to the previous year[37]. - The Group incurred a loss of approximately HK$99 million for the year, an increase of about 5.3 times compared to a loss of approximately HK$15.8 million in the previous year, driven by significant revenue decline and impairment losses[42]. Impairment Losses - The impairment loss on deposits paid for acquisition of motor vehicles for resale amounted to approximately RMB70.2 million (equivalent to approximately HK$75.8 million), which was recognized due to the inability to complete the purchases[19]. - The Group's management conducted a review of the Purchase Contracts and determined that the recoverability of the Advance Payments could not be assured, leading to the impairment charge[19]. - The impairment loss on advance payments for the purchase of trading motor vehicles amounted to approximately HK$75.8 million, with additional losses on settlement of advance payments of approximately HK$2.1 million[52]. - The impairment loss on deposits for the purchase of trading motor vehicles was recognized due to the ongoing price war in the PRC automotive market, which has made it difficult for the Group to compete[29]. Market Conditions - The Group anticipated a recovery in the PRC economy in 2024; however, domestic demand remained weak due to ongoing geopolitical and trade tensions[21]. - The decline in customer purchasing desire has been attributed to factors such as the COVID-19 pandemic, lockdowns in PRC, and the Sino-US trade war[21]. - The ongoing price war among automakers in the PRC has intensified competition, particularly in the new-energy vehicle sector, affecting the Group's market position[25]. Revenue Sources - The revenue of the Group as of December 31, 2024, primarily came from the trading of motor vehicles, provision of agency services, and accessories sourcing in the PRC[69]. - The Group's trading of motor vehicles revenue as a principal was approximately HK$30.8 million for the year ended December 31, 2024, down from approximately HK$148.3 million in the previous year[30]. - The Group's agency and service fees income from accessories sourcing was approximately HK$1.3 million for the year ended December 31, 2024, compared to approximately HK$1.4 million in the previous year[30]. Corporate Governance - The Company has complied with the corporate governance code provisions, except for the separation of roles between the chairman and chief executive officer[175]. - The current board consists of two executive and five non-executive Directors, with more than one-third being independent non-executive Directors[180]. - The Company is committed to maintaining a high standard of corporate governance, as detailed in the corporate governance report[158]. - The Company has adopted a code of conduct for Directors' securities transactions that meets the standards set out in the GEM Listing Rules[177]. - The Company received annual independence confirmations from all independent non-executive directors, affirming their independence[182]. Staff and Operations - As of December 31, 2024, the Group's total staff costs amounted to approximately HK$12.0 million, a decrease from approximately HK$13.7 million in 2023, with a workforce of 38 employees compared to 46 in the previous year[68]. - The Group plans to introduce more new energy vehicles and promote the trading of petrol vehicles and new energy vehicles to enhance business performance in the motor vehicle trading segment[74]. - Chongqing Sheng Yu Hong Jia International Trading Company Limited increased its customer base to 126, with 44 customers in negotiation, aiming to reduce reliance on a small number of customers[70]. Legal and Financial Matters - The Group did not have any contingent liabilities as of December 31, 2024, maintaining a stable risk profile[58]. - The Company does not plan to transfer any amount to reserves for the year ended December 31, 2024[99]. - The Company was incorporated on May 24, 2001, as an exempted company with limited liability in the Cayman Islands[97]. - The Company has a sufficient prescribed public float of the issued shares under the GEM Listing Rules[160]. Directors and Management - Mr. Wang Jiawei has been the Executive Director and CEO since September 22, 2015, and holds a Bachelor's degree in Mathematics and a Master's degree in Finance[83]. - Ms. Li Yumei has served as an Executive Director since August 1, 2015, and has been with the company since July 14, 2008, holding a degree in Financial Services[83]. - Mr. Liu Runtong, a non-executive director since February 2, 2010, has over 26 years of experience in financial media and services in Mainland China[84]. - Professor Zhang Benzheng has been an independent non-executive director since September 30, 2008, and has held various senior positions in listed companies, contributing significantly to their success[87]. - Mr. Li Jianxing has been an independent non-executive director since March 28, 2011, and has over 30 years of experience in accounting and corporate finance[89].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a 15% growth year-over-year[7]. - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[22]. - Revenue for the year 2024 reached HKD 423 million, an increase of 12.8% compared to HKD 375 million in 2023[41]. - The group's revenue for the year was approximately HKD 420 million, representing a year-on-year increase of 12.9% due to higher income from ferry services, shipyards, and healthcare services[72]. - Shareholders' profit attributable decreased to HKD 164 million, down 13.7% from HKD 190 million in the previous year[41]. - Basic earnings per share for 2024 were HKD 0.46, a decline of 13.2% from HKD 0.53 in 2023[41]. User Engagement and Market Expansion - User data showed a rise in active users to 500,000, up from 400,000 in the previous year, indicating a 25% increase[7]. - The company is exploring new market segments, targeting G demographics to diversify its customer base and increase market share[34]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[7]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing user experience[7]. Strategic Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[8]. - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[25]. - Financial guidance for the upcoming fiscal year includes an EBITDA margin target of H%, reflecting improved operational efficiencies[36]. Research and Development - The company is investing HKD 50 million in research and development for new technologies aimed at improving operational efficiency[7]. - The company is investing in R&D for new technologies, allocating $D million towards innovative solutions aimed at enhancing user experience[28]. Sustainability Initiatives - The board emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 30% by 2025[7]. - The company aims to reduce greenhouse gas emissions by 30% by 2030 compared to the 2021 baseline[83]. - The company is actively managing climate-related risks and opportunities, aiming to reduce its carbon footprint in line with the Hong Kong Climate Action Blueprint 2050[81]. - During the reporting year, the company installed rainwater collection systems, preventing 2,228 liters of wastewater from entering the harbor[84]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the Corporate Governance Code[131]. - The board promotes a corporate culture of integrity, growth, care, and collaboration aligned with the company's core values[132]. - The board of directors consists of nine members, including three executive directors, two non-executive directors, and four independent non-executive directors[139]. - The company has adopted a board diversity policy, emphasizing gender, age, professional experience, and ethnicity to enhance performance quality[141]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and equal access to company information for shareholders[190]. - The company has established effective communication systems for shareholders and investors to access financial information via its website[190]. - Shareholders can submit inquiries to the board through the company secretary, who will forward them for consideration[196]. Employee Engagement and Training - The company provided approximately 4,410 hours of training to employees during the reporting year[86]. - The total employee cost for the year was approximately HKD 141 million, with the number of employees increasing to around 300 from 284 in the previous year[75]. - The company employs 300 staff members, with a gender distribution of approximately 58% male and 42% female, indicating workforce diversity[142]. Risk Management - The company has established a risk management and internal control system, which is reviewed annually by the audit committee to ensure effectiveness[179]. - Major risks identified include business, financial, regulatory, environmental, social, governance, and operational risks, with corresponding mitigation strategies reported to the audit committee[185]. - The internal audit department incorporates a risk-based approach in its annual audit plan, ensuring all identified major risks are included[182]. Dividend Policy - The company plans to maintain its current dividend policy, reflecting stability in its financial performance[95]. - The interim dividend per share is HKD 0.10, consistent with the previous year, and the proposed final dividend is HKD 0.15, also unchanged from the prior year, leading to a total annual dividend of HKD 0.25[95].

Financial Performance - The company's total revenue for the fiscal year 2024 was approximately RMB 1,534.2 million, representing a decrease of about 28.4% compared to the previous year[11][18]. - Revenue from the marine construction segment was approximately RMB 497.2 million, while the municipal engineering construction segment generated about RMB 1,037.0 million[12]. - The marine construction segment's revenue decreased by approximately 31.4%, and the municipal engineering construction segment's revenue fell by about 26.9%[19]. - The group's consolidated revenue for 2024 was RMB 1,534.2 million, a decrease of approximately 28.4% compared to RMB 2,143.7 million in the previous fiscal year[23]. - The consolidated cost of sales for 2024 was RMB 1,435.7 million, a reduction of 27.1% from RMB 1,970.1 million in 2023[24]. - The group's gross profit for 2024 was RMB 98.5 million, down 43.2% from RMB 173.6 million in 2023[24]. - The operating loss for 2024 was RMB 48.8 million, a decline of 172.9% compared to an operating profit of RMB 67.0 million in 2023[27]. - Administrative expenses increased by 18.2% to RMB 99.2 million in 2024, up from RMB 83.9 million in 2023[28]. - The total employee cost for the group was approximately RMB 666 million for the reporting period, a decrease from RMB 717 million in the previous year[86]. Strategic Goals and Market Position - The company aims to achieve revenue growth in 2025 by leveraging its traditional strengths in port, channel, marine, and municipal engineering, while also enhancing its environmental technology business[13][15]. - The company plans to expand its overseas market presence and strengthen its comprehensive service capabilities in international cooperation[15]. - The overall economic environment is shifting towards high-quality development, providing opportunities for infrastructure investment in emerging economies[13]. - The company is committed to optimizing resource allocation and enhancing its risk resistance capabilities in response to intensified market competition[13][18]. - The company will continue to monitor domestic and international market conditions closely to adapt its operational strategies accordingly[15]. Shareholder and Governance Information - The company expresses gratitude to its shareholders, management team, employees, clients, suppliers, subcontractors, and business partners for their support[15]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, responsible for business and investment planning[45]. - The company has a strong board with diverse expertise in finance, management, and strategic development, enhancing its governance structure[57]. - The board's composition reflects a commitment to strong governance and oversight, with independent directors providing critical insights and guidance[57]. - The company has established a remuneration committee to review and advise on the overall remuneration policy for directors and senior management[86]. Contracts and Procurement - The company completed 376 contracts with an original contract value of RMB 2,440.1 million and entered into 358 new contracts valued at RMB 2,471.9 million during the fiscal year ending December 31, 2024[71]. - As of December 31, 2024, the company has 104 ongoing contracts with an original contract value of RMB 6,168.5 million, and the total value of unfinished contracts amounts to RMB 2,521.1 million[71]. - The procurement amount from the largest supplier was approximately RMB 292.3 million, accounting for about 20.4% of the total cost of sales, while the procurement from the top five suppliers totaled approximately RMB 468.5 million, representing about 32.6% of the total cost of sales[70]. - The total procurement agreement for 2024 to 2026 is estimated to involve transactions amounting to approximately RMB 9.0 million for each year[135]. - The pricing of raw materials will be determined through a bidding process involving at least two independent third-party bidders[134]. Risk Management and Compliance - The company has identified several major risks, including dependence on public spending policies related to transportation infrastructure projects[175]. - The company is closely monitoring the regulatory environment in Indonesia to mitigate risks associated with the contract arrangement[140]. - There is no guarantee that the contract arrangement will be deemed compliant with Indonesian laws in the future, which poses a potential risk[141]. - The group has maintained compliance with all relevant laws and regulations in the jurisdictions of China, Indonesia, Malaysia, and Brunei as of December 31, 2024[174]. - The independent auditor has issued an unqualified opinion on the related party transactions disclosed in the annual report[166]. Corporate Social Responsibility - The group reported charitable donations of approximately HKD 100,000 for the year ending December 31, 2024[181]. - The group emphasizes a corporate culture of continuous improvement and value creation for customers, employees, shareholders, and society[190]. Future Outlook - The company plans to actively explore opportunities in both domestic and international markets to inject new vitality into sustainable development[22]. - The company has not proposed any dividend for the fiscal year ending December 31, 2024, compared to a dividend of HKD 0.0102 per share (approximately RMB 0.0092) totaling about HKD 8,419,000 (approximately RMB 7,630,000) for the previous year[68].

Financial Performance - The total revenue for the fiscal year 2024 was approximately RMB 112.0 million, a decrease of about RMB 79.0 million or 41.4% compared to RMB 190.9 million in fiscal year 2023[14] - The gross profit fell from approximately RMB 17.6 million in fiscal year 2023 to about RMB 3.3 million in fiscal year 2024, a decrease of approximately RMB 14.3 million or 81.5%[14] - The gross profit margin decreased from approximately 9.2% in fiscal year 2023 to about 2.9% in fiscal year 2024[14] - The net loss attributable to shareholders for fiscal year 2024 was approximately RMB 9.5 million, compared to a loss of about RMB 2.6 million in fiscal year 2023[14] - The total loss and comprehensive loss increased from approximately RMB 2.6 million in FY2023 to about RMB 9.5 million in FY2024, an increase of approximately RMB 6.9 million or 270.7%[30] Cost Management - Sales costs decreased from approximately RMB 173.3 million in fiscal year 2023 to about RMB 108.7 million in fiscal year 2024, a reduction of approximately RMB 64.6 million or 37.3%[21] - Sales expenses decreased from approximately RMB 8.2 million in FY2023 to about RMB 5.2 million in FY2024, primarily due to reduced shipping costs resulting from lower sales volume[23] - Administrative expenses decreased from approximately RMB 17.7 million in FY2023 to about RMB 13.4 million in FY2024, mainly due to a reduction in travel and entertainment expenses by approximately RMB 1.2 million and a decrease in R&D expenses by approximately RMB 2.3 million[24] - Employee costs for FY2024 are approximately RMB 10.5 million, down from RMB 12.4 million in FY2023, reflecting a reduction in workforce from 113 to 83 employees[45] Market Outlook - The decrease in orders from major customers was attributed to a gap between expired contracts and newly acquired contracts[20] - The company anticipates stable demand for tobacco products despite government anti-smoking policies, with an expected increase in demand for mid-to-high-end cigarettes due to rising purchasing power[15] Strategic Plans - The company plans to continue optimizing and managing resources to seize long-term growth opportunities in the market[15] - The company will leverage its expertise to formulate effective strategies aimed at increasing market share[15] Asset Management - The company recorded long-term asset impairment provisions during fiscal year 2024, impacting financial performance significantly[17] - Capital expenditures for FY2024 amounted to approximately RMB 3.7 million, a significant decrease from approximately RMB 22.4 million in FY2023, primarily due to purchases of property, plant, and equipment[36] - The group had no capital commitments as of December 31, 2024, compared to approximately RMB 1.9 million as of December 31, 2023[37] Corporate Governance - The company adheres to high standards of corporate governance and has complied with all applicable provisions of the corporate governance code as of December 31, 2024[63] - The company has adopted the standard code for securities trading by directors, confirming compliance for the year ending December 31, 2024[64] - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[66] - The company held two board meetings during the fiscal year ending December 31, 2024, with all directors attending both meetings[70] - The company has received annual confirmations of independence from all independent non-executive directors, ensuring compliance with listing rules[73] Diversity and Inclusion - The gender ratio of employees, including senior management, is approximately 57:26 as of December 31, 2024, indicating a commitment to gender diversity[84] - The board has adopted a diversity policy, ensuring at least one female member and plans to increase this number over the next five years[83] - The company is committed to equal opportunity, diversity, and anti-discrimination principles in its workplace[139] Environmental Sustainability - The company emphasizes environmental sustainability in its operations, integrating this principle into various aspects of its business[143] - The board has committed to integrating environmental sustainability into the company's daily operations and business strategy[200] Shareholder Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[119] - The company encourages shareholders to provide updated contact information for timely communication[125] - The company’s website serves as a channel for effective communication with shareholders, providing regular updates and information[125] Audit and Compliance - The audit committee is responsible for reviewing the integrity of financial statements and the effectiveness of risk management and internal control systems[91] - The company has engaged a compliance advisor to ensure adherence to listing rules[110] Future Developments - Future business developments are discussed in the management discussion and analysis section of the annual report[141] - The company’s main business remains unchanged, focusing on investment holding and the manufacturing and sales of cigarette packaging paper in China[136]

Financial Performance - The company's revenue for 2024 decreased by approximately 6% to HKD 525,600,000 from HKD 558,000,000 in 2023[3] - The net profit after tax slightly increased by 3% to HKD 34,200,000 in 2024, compared to HKD 33,300,000 in 2023[3] - Direct operating costs were reduced by 7% to HKD 412,600,000 in 2024, contributing to a 5% increase in profit before tax to HKD 49,600,000[8] - Gross profit decreased slightly by HKD 700,000 or about 0.6% to HKD 112,900,000, while the gross profit margin improved from approximately 20.4% to 21.5%[11] - Other income increased by approximately 23.5% to HKD 9,300,000, primarily due to improved interest income from fixed deposits[12] - The company's total comprehensive income for the year was HKD 32,766,000, with a profit of HKD 33,333,000 attributed to owners[148] - Basic earnings per share increased to HKD 6.87 from HKD 6.68, representing a growth of 2.8%[143] - The company reported a total comprehensive income of HKD 9,239,000 for the year, significantly lower than HKD 32,766,000 in the previous year, primarily due to foreign exchange losses[143] Cost Management - Administrative expenses decreased by approximately 4.3% to HKD 37,900,000, attributed to a reduction in administrative staff and no significant bad debt expenses[14] - Financial expenses decreased by approximately 46.6% to HKD 700,000 due to the expiration of several machinery lease contracts[15] - The management team will continue to focus on cost control and operational collaboration to respond dynamically to challenges in the publishing sector[9] - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming fiscal year[142] Assets and Liabilities - The company's net current assets increased to approximately HKD 201,200,000 as of December 31, 2024, compared to HKD 192,300,000 in 2023[18] - As of December 31, 2024, the current ratio of the group is approximately 3.8 times, an improvement from 3.0 times in 2023, indicating a stronger liquidity position[19] - The group's interest-bearing debt as of December 31, 2024, is approximately HKD 10,600,000, down from HKD 18,600,000 in 2023, reflecting a reduction in financial leverage[19] - The capital debt ratio is approximately 3.8% as of December 31, 2024, compared to 6.5% in 2023, demonstrating improved capital structure[19] - Current liabilities were reduced to HKD 71,898,000 from HKD 95,786,000, a decrease of 25.0%, improving the company's liquidity position[144] Workforce and Employment - The group employed 319 full-time employees as of December 31, 2024, a decrease from 329 employees in 2023, reflecting a potential adjustment in workforce strategy[25] - The board currently has one female director and aims to maintain female representation on the board[96] - The remuneration committee held one meeting in 2024 to review the compensation policy and structure, determining the annual salary packages for executive directors and senior management[113] Market and Industry Outlook - The outlook for 2025 remains cautious due to geopolitical uncertainties affecting domestic confidence and demand[4] - The company is facing overall market decline, which may lead to reduced demand for printing products and services, impacting financial performance[48] - The rise of electronic media and devices may impact the demand for printed products, affecting the need for the company's printing solutions and services[45] Corporate Governance - The board of directors is responsible for leading and overseeing the overall strategy and policies of the group[92] - The company has adopted corporate governance measures to manage potential conflicts of interest related to Mr. Celarc's interests in Ligare (NZ), which ceased operations in March 2025[76] - The company has established a strong corporate governance framework to ensure a balance of power and authority among its board members[105] Environmental and Social Responsibility - The company is committed to sustainable operations, balancing the interests of stakeholders including customers, suppliers, and employees[50] - The company has a commitment to improving ecological performance through responsible resource use and compliance with environmental laws[51] - There were no significant non-compliance issues with environmental regulations during the year[51] Financial Reporting and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024, in accordance with international financial reporting standards[129] - The group must ensure that the financial statements are prepared in accordance with International Financial Reporting Standards and reflect a true and fair view[138] - The audit committee assists the board in overseeing the financial reporting process[139] Shareholder Information - The company reported a mid-term dividend of HKD 0.04 per share for the year ending December 31, 2024, consistent with the previous year's final dividend[54] - As of December 31, 2024, the company's distributable reserves amounted to approximately HKD 201.9 million, an increase from HKD 189.5 million as of December 31, 2023[56] - The company has maintained a sufficient public float, with at least 25% of its issued shares held by the public as of the report date[80]

Financial Performance - For the third quarter of fiscal year 2025, net revenue decreased by 2.0% year-over-year to $1,183.1 million, while net revenue excluding self-operated products and live e-commerce increased by 21.2% to $1,038.3 million[9]. - Operating profit for the third quarter increased by 9.8% year-over-year to $124.5 million, with operating profit excluding losses from self-operated products and live e-commerce rising by 5.0% to $125.5 million[9]. - Net profit attributable to New Oriental shareholders for the third quarter rose by 0.1% year-over-year to $87.3 million[9]. - In the first nine months of fiscal year 2025, net revenue increased by 15.1% year-over-year to $3,657.1 million, and operating profit rose by 28.5% to $436.9 million[10]. - The company reported a Non-GAAP operating profit margin of 13.3% for the third quarter, down from 15.1% in the same period last year[12]. - The operating profit for the quarter was $124.5 million, an increase of 9.8% year-over-year, with a Non-GAAP operating profit of $142.1 million, a slight decrease of 0.2%[17]. - The net profit attributable to shareholders for the quarter was $87.3 million, a year-over-year increase of 0.1%, with basic and diluted earnings per ADS of $0.54[20]. - The Non-GAAP net profit attributable to shareholders was $113.3 million, a year-over-year decrease of 14.3%, with Non-GAAP earnings per ADS of $0.70[21]. - For the first nine months of fiscal year 2025, net revenue was $3,657.1 million, a year-over-year increase of 15.1%[24]. - Net revenue for the three months ended February 28, 2025, was $1,183,055, a decrease of 2.1% compared to $1,207,286 for the same period in 2024[42]. - Operating profit increased to $124,519, representing a 9.6% increase from $113,432 in the prior year[42]. - Net profit attributable to shareholders was $87,255, slightly up from $87,167 year-over-year[42]. - For the nine months ended February 28, 2025, net revenue rose to $3,657,107, an increase of 15.1% from $3,176,907 in the previous year[49]. - Operating profit for the nine-month period was $436,924, a 28.5% increase compared to $339,898 in the same period last year[49]. Cash and Assets - As of February 28, 2025, cash and cash equivalents totaled $1,418.8 million, with deferred revenue increasing by 15.0% year-over-year to $1,749.9 million[23]. - As of February 28, 2025, total assets amounted to $7,447.2 million, a decrease from $7,531.7 million as of May 31, 2024[39]. - Total liabilities decreased slightly to $3,471.7 million from $3,482.7 million during the same period[40]. - Shareholders' equity totaled $3,686.2 million, down from $3,775.9 million[40]. - Cash and cash equivalents increased to $1,418.8 million from $1,389.4 million[39]. - Short-term investments decreased to $1,853.6 million from $2,065.6 million[39]. - Cash and cash equivalents at the end of February 28, 2025, were $1,589,277, a decrease from $2,189,074 at the end of February 29, 2024[54]. Operational Efficiency and Strategy - The company is focusing on enhancing product quality and operational efficiency to drive sustainable growth and profitability[12]. - New Oriental is increasing investments in artificial intelligence technology applications in the education sector to improve operational efficiency and service satisfaction[12]. - The company is actively managing the expansion of its school network and executing strategic plans amid regulatory uncertainties in the private education sector in China[34]. - The company is focused on maintaining and enhancing the "New Oriental" brand while ensuring teaching and service quality[34]. - Future outlook includes potential benefits from recent and upcoming acquisitions, despite ongoing litigation risks[34]. Shareholder Returns and Financial Metrics - The total value of the share repurchase plan has been increased to $700 million, with approximately 14.4 million ADS repurchased for a total value of about $695.5 million as of April 22, 2025[13]. - The company reported a net profit excluding stock-based compensation and other adjustments, indicating a focus on Non-GAAP financial metrics[35]. - The company emphasized the importance of Non-GAAP financial indicators for assessing performance and liquidity[36]. - The weighted average shares used for calculating basic net profit per ADS decreased from 1,653,742,514 in 2024 to 1,630,423,658 in 2025, a reduction of approximately 1.4%[52]. - New Oriental's basic net profit per American depositary share (ADS) for the nine months ended February 28, 2025, was $2.24, up from $1.71 for the same period in 2024, representing a 31% increase[52]. - The diluted net profit per ADS under non-GAAP for the nine months ended February 28, 2025, was $2.55, compared to $2.40 for the same period in 2024, reflecting a 6.25% increase[52]. Cash Flow and Expenses - Operating cash flow for the nine months ended February 28, 2025, was $497,470, down from $745,808 in the same period of 2024, indicating a decrease of approximately 33.3%[54]. - Total revenue costs for the nine months ended February 28, 2025, amounted to $31,297, significantly reduced from $96,661 in the same period of 2024, showing a decrease of about 67.6%[52]. - The company reported a significant increase in cash flow from investing activities, which amounted to $79,891, compared to $11,285 in the previous year[47]. - The company experienced a net cash used in financing activities of $(486,494) for the nine months ended February 28, 2025, compared to $(51,208) in the same period of 2024, indicating a substantial increase in cash outflow[54]. - The impact of foreign exchange rate changes resulted in a cash outflow of $(5,667) for the nine months ended February 28, 2025, compared to $(21,041) in the same period of 2024, showing a decrease in negative impact[54].