Financial Performance - Revenue for the year ended December 31, 2024, reached HK$8,624,272, an increase of 17.2% compared to HK$7,359,952 in 2023[16] - Operating profit for 2024 was HK$936,017, up 37.5% from HK$680,436 in 2023[16] - Profit before taxation increased to HK$814,211, representing a 48.4% rise from HK$548,972 in 2023[16] - The Company reported a profit for the year of HK$341,981, a decrease of 31.2% compared to HK$497,099 in 2023, primarily due to losses from discontinued operations[16] - The Group's profit for 2024 was HK$342 million, a year-on-year decrease of 31% from HK$497 million in 2023[159] - The Group's income tax expense surged by 361% to HK$287 million in 2024, compared to HK$62 million in 2023, largely due to rising tax costs in Kazakhstan[185] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HK$7,842,287, a growth of 16.1% from HK$6,750,363 in 2023[17] - Total liabilities increased to HK$3,920,581, up 36.6% from HK$2,870,172 in 2023[17] - The gearing ratio increased significantly to 99.97% in 2024 from 73.97% in 2023, indicating a rise in financial leverage[154] - The Group's net current liabilities were HK$292 million as of December 31, 2024, a decrease of 136% compared to net current assets of HK$823 million at the end of 2023[197] Market and Industry Trends - The global nuclear energy development is in good shape, with countries focusing more on energy security and transition amid geopolitical risks[18] - The IAEA forecasts that global investment in nuclear power will reach US$100 billion by 2050, with installed capacity expected to increase to 950 GWe under high-case scenarios[46] - Japan plans to build 18 new nuclear reactors by 2032, adding an expected 13.8 GWe of newly installed capacity[49] - The US Senate allocated USD2.7 billion from the Civil Nuclear Credit program to fund domestic uranium enrichment capacity in response to sanctions against Russia[52] - The UK aims to increase its installed nuclear capacity to 24 GWe by 2050, which is four times the level in 2023[55] - Kazakhstan decided to construct its first nuclear power reactor following a referendum held in October 2024[55] Production and Operations - Global natural uranium production in 2024 amounted to approximately 58,846 tU, representing an 8.2% increase compared to 2023[69] - Kazatomprom reported attributable production of 12,286 tU in 2024, accounting for 21% of global primary production, which is 10% higher than in 2023[69] - The Semizbay Mine achieved an actual uranium extraction of 976tU, meeting 100% of its annual production target, with a production cost of US$32/lbU3O8[78] - The Irkol Mine produced 569tU of uranium at a cost of US$24/lbU3O8, contributing to a total annual production of 964tU after processing losses[80] - The Group achieved revenue of HK$8,624 million from natural uranium trading, an increase of 17% compared to 2023[93] Challenges and Risks - The company is facing challenges in 2025 due to geopolitical tensions, inflation, and rising raw material costs, which may impact business development[26][28] - The company faces production risks due to insufficient domestic supply of sulfuric acid in Kazakhstan and adjustments in production volume by Kazatomprom[148] - Global conditions, including rising energy prices and geopolitical conflicts, pose risks to the company's operations and capital market performance[149] Strategic Initiatives - The company plans to focus on mergers and acquisitions as well as exploration and development in 2025, aiming for substantial progress in resource extraction and investment returns[24][25] - The company aims to enhance its core capabilities and competitiveness while implementing a new pricing mechanism for international uranium trades[30] - The company updated its ESG targets, reinforcing its commitment to a green, low-carbon, and responsible corporate image[19][21] - The company will pursue high-quality uranium project opportunities globally and establish strategic partnerships with renowned uranium producers[136] Investor Relations and ESG - The company strengthened investor relations through dual "offline + online" channels, achieving satisfactory results[100] - The company's ESG rating was upgraded from B to A in March, achieving its first-ever A rating, which was further upgraded to AA in May[109] - Several institutions upgraded their ratings, with BOCI Securities raising its target price to HK$2.30, CITIC Securities to HK$2.70, and CICC to HK$2.51[108]

Financial Performance - In 2024, the company reported a loss attributable to shareholders of HKD 1,231 million, compared to a loss of HKD 1,469 million in 2023, indicating a reduction in losses[11]. - Total revenue and other income for 2024 was HKD 613 million, a significant decrease from HKD 1,797 million in 2023[11]. - The company’s total assets decreased to HKD 14,515 million in 2024 from HKD 18,211 million in 2023, reflecting a decline of approximately 20%[15]. - The company’s total liabilities decreased to HKD 13,632 million in 2024 from HKD 16,414 million in 2023, showing a reduction of approximately 17%[15]. - The company’s basic/diluted loss per share for 2024 was HKD 0.66, compared to HKD 0.32 in 2023, indicating a worsening in per-share performance[13]. - The company’s total equity attributable to shareholders was HKD 387,514 million in 2024, down from HKD 1,231 million in 2023[15]. - The company reported a loss of HKD 1,231.4 million for 2024, an improvement from a loss of HKD 1,469.5 million in 2023[21]. - The company’s total revenue for the year ended December 31, 2024, was HKD 387.5 million, down from HKD 613.2 million in 2023[39]. - The operating expenses and financing costs for the year ended December 31, 2024, were HKD 1,622.8 million, a decrease of 23.0% from HKD 2,075.3 million in 2023[40]. Business Operations and Strategy - The company aims to enhance its business product system and expand new revenue streams in 2025, focusing on sustainable development and supporting national strategies[19]. - The company is focusing on strategic transformation and improving internal control management to reduce operational losses and enhance business capabilities[18]. - The company is actively responding to the Hong Kong government's innovation and technology development blueprint, collaborating with Taiping Financial Holdings to manage a USD innovation fund[18]. - The company aims to enhance its financial services by focusing on technology finance, green finance, inclusive finance, pension finance, and digital finance[63]. - The company has been actively involved in various subsidiaries, indicating a strategy of diversification and growth through multiple business avenues[72][74]. Client and Revenue Insights - Commission and fee income from the securities brokerage business reached HKD 91.2 million in 2024, an increase of HKD 9.6 million or 11.7% compared to 2023[23]. - The number of margin accounts increased to 9,741 in 2024, while the interest income from margin loans decreased to HKD 60.1 million, down HKD 49.0 million or 44.9% from 2023[25]. - The average monthly balance of margin loans decreased to HKD 1,067.4 million in 2024 from HKD 1,727.0 million in 2023[26]. - Major clients accounted for less than 30% of total revenue, suggesting a diversified client base[92]. - Major suppliers accounted for less than 30% of total procurement, indicating a stable supply chain[93]. Investments and Financial Assets - The company’s investment fund, the "Jiaoyin International Longteng Core Growth Fund," achieved a return of 17.34%, ranking in the top third of similar products in the Hong Kong market[31]. - The company established 18 QFLP funds and one QDIE fund, with the QFLP funds being the first of their kind set up in Hainan and Qingdao[31]. - The company holds a significant investment in Amber Leading Fund, L.P. with a commitment amount of HKD 232 million, representing 4.92% of Amber's total commitment[57]. - The initial cost of the investment in Amber was HKD 230 million, with a current fair value assessment of HKD 785 million, accounting for 5.4% of the group's total assets[57]. - The investment generated an unrealized gain of HKD 3 million during the year, classified as financial assets measured at fair value through profit or loss[57]. Risk Management and Governance - The company has implemented sufficient internal approval and supervision procedures regarding related party transactions to protect shareholders' interests[111]. - The company has a commitment to maintaining high standards of corporate governance, as evidenced by the diverse backgrounds of its board members[77][78][80]. - The company has established a three-tier risk management framework, including the Board, Risk Management Committee, and relevant middle and back office[180]. - The company is committed to maintaining effective risk management and internal control procedures to monitor and manage key risks[180]. - The board confirmed the effectiveness and adequacy of the group's risk management and internal control systems[184]. Leadership and Management - The company appointed Xie Jie as the CEO and Executive Director in March 2024, succeeding Zhu Chen who served as CEO from July 2022 to March 2024[72]. - Wang Xianjia was promoted to Executive Director and Vice President in December 2023, having previously served as a Non-Executive Director since June 2022[74]. - The company has a strong leadership team with extensive experience in the banking and finance sectors, including key positions held at major financial institutions[72][74]. - The leadership transition aims to strengthen the company's strategic direction and operational efficiency in the competitive financial market[72][74]. - The board's composition reflects a balance of experience and independence, which is crucial for effective decision-making and risk management[77][78][80]. Corporate Social Responsibility and Sustainability - The company is committed to sustainable development and has established an ESG management framework to integrate sustainability into daily operations[135]. - The corporate social responsibility report for the fiscal year 2024 is the eighth report issued by the company, focusing on sustainability and stakeholder concerns[197]. - The reporting scope of the corporate social responsibility report is primarily based in Hong Kong, covering the period from January 1, 2024, to December 31, 2024[198]. - The report was prepared in accordance with the principles of importance, quantification, balance, and consistency as outlined in the Environmental, Social, and Governance Reporting Guidelines[199]. Shareholder Engagement and Communication - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders[189]. - Shareholders can communicate with the board through the company secretary and submit written inquiries at any time[192]. - The company encourages shareholder participation in the annual general meeting, providing opportunities for direct communication with the board[187]. - The company utilizes various communication channels, including its website and investor meetings, to keep shareholders informed[186].

Financial Performance - For the year ended December 31, 2024, the revenue from continuing operations was RMB 2,248.1 million, a decrease of 36.2% compared to RMB 3,521.6 million for the year ended December 31, 2023[10]. - The gross profit margin for continuing operations was 35.8% for the year ended December 31, 2024, down from 37.7% for the year ended December 31, 2023[10]. - The net loss attributable to owners from continuing operations was RMB 669.2 million for the year ended December 31, 2024, compared to RMB 211.3 million for the year ended December 31, 2023[10]. - The net loss margin attributable to owners from continuing operations was -29.8% for the year ended December 31, 2024, compared to -6.0% for the year ended December 31, 2023[10]. - The basic and diluted loss per American Depositary Share from continuing operations was RMB 18.42 for the year ended December 31, 2024, compared to RMB 5.82 for the year ended December 31, 2023[10]. - The total net loss attributable to owners from both continuing and discontinued operations was RMB 459.7 million for the year ended December 31, 2024, compared to RMB 362.7 million for the year ended December 31, 2023[10]. - The net loss margin attributable to owners from both continuing and discontinued operations was -20.4% for the year ended December 31, 2024, compared to -10.3% for the year ended December 31, 2023[10]. - The operating loss for the year ended December 31, 2024, was RMB 303.5 million, compared to an operating loss of RMB 217.3 million for the year ended December 31, 2023[10]. - The gross profit from continuing operations dropped by 39.3% from RMB 1,326.0 million in 2023 to RMB 804.5 million in 2024, with a gross margin of 35.8% compared to 37.7% in 2023[35]. - The company recorded a net loss of RMB 83.5 million in other income, gains, or losses for the year ended December 31, 2024, compared to a gain of RMB 69.2 million in 2023, primarily due to goodwill impairment[40]. Revenue Sources - Revenue from Ping An Group and Lufax was RMB 1,307.1 million for the year ended December 31, 2024, a decrease of 44.6% from RMB 2,360.1 million for the year ended December 31, 2023[9]. - Revenue from third-party customers was RMB 941.0 million for the year ended December 31, 2024, a decrease of 19.0% from RMB 1,161.5 million for the year ended December 31, 2023[9]. - The revenue growth rate assumption for the cash-generating unit was revised down to -25% to 10% for 2024, compared to -10% to 13% for 2023[45]. - The largest customer, Ping An Insurance Group, accounted for approximately 53.0% of total revenue from continuing operations for the year ended December 31, 2024, down from 59.4% in 2023[153]. - The top five customers generated about 64.5% of total revenue from continuing operations for the year ended December 31, 2024, compared to 70.5% in 2023[153]. Strategic Initiatives - The company aims to reduce its revenue concentration from the Ping An Group, which has been impacted by adverse macroeconomic conditions and industry challenges[15]. - The company is focused on enhancing its digital capabilities to improve operational efficiency and customer service[16]. - The company plans to invest most of its remaining liquidity into R&D and expand its ecosystem and overseas business, focusing on fintech and AI industries[30]. - The company is enhancing its long-term strategic planning for product and overseas development management in 2024[79]. - The company is focused on exploring innovative technologies in the financial sector to drive digital transformation[87]. Operational Changes - The company completed the sale of its virtual banking business to Lufax Holdings for cash consideration of HKD 933 million on April 2, 2024[12]. - The company plans to phase out cloud services starting July 2024, leading to a significant decline in revenue from this segment in the second half of 2024[22]. - The company has decided to gradually terminate its cloud services starting July 2024, impacting its revenue and operational performance[41]. - The company completed the sale of Ping An OneConnect Bank (Hong Kong) Limited for a cash consideration of HKD 933 million, resulting in a post-tax gain of RMB 260.1 million[64]. - The company completed the sale of Jin Yi Tong Limited and its subsidiary, PAO Bank Limited, for a cash consideration of HKD 933 million, allowing the company to focus on technology-driven products and services[167]. Research and Development - R&D expenses decreased by 46.5% from RMB 955.2 million in 2023 to RMB 510.9 million in 2024, mainly due to lower labor costs[36]. - The company has achieved significant advancements in product upgrades and algorithm model enhancements for digital retail and credit solutions in 2024[18]. - The company is committed to providing comprehensive learning opportunities for employees to enhance efficiency and service[87]. Risk Management - The company has established a comprehensive concentration risk management policy and limit framework to monitor and ensure effective execution[75]. - The company has a robust information technology risk management system to address potential risks such as data breaches and unauthorized access[80]. - The company is implementing measures to strengthen its reputation risk management framework, including proactive identification of potential risks[83]. - The company has established a liquidity risk management mechanism to ensure it can meet operational and external debt obligations under reasonable stress scenarios[84]. - The company has established a risk management framework overseen by the board, which includes setting risk management objectives and policies[122]. Corporate Governance - The board consists of one executive director (Chairman and CEO), four non-executive directors, and four independent non-executive directors as of December 31, 2024[93]. - The company has established a mechanism to ensure the board receives independent views and opinions, maintaining a strong level of independence[96]. - The company has complied with all applicable code provisions during the reporting period, except for specific deviations disclosed in the report[88]. - The company has adopted a board diversity policy, which considers various factors such as professional experience and gender when selecting board candidates[113]. - The company has established an Audit Committee and a Remuneration and Nomination Committee, with the majority of members being independent non-executive directors[103]. Employee Information - The total number of employees as of December 31, 2024, was 1,937, with the majority (1,226) in research and development[70]. - Employee benefits expenses for ongoing operations amounted to RMB 929.0 million for the year ended December 31, 2024[71]. - The total number of full-time employees as of December 31, 2024, is approximately 66% male and 34% female, with ongoing efforts to ensure gender diversity in senior management recruitment[114]. - Employee compensation is linked to performance, and the company provides various benefits and training to enhance productivity[157]. Related Party Transactions - The company is involved in ongoing related party transactions with its controlling shareholder, Ping An, and its subsidiaries[170]. - The total value of right-of-use assets related to property lease agreements with Ping An's subsidiaries was RMB 28.58 million, while the actual transaction amount was RMB 15.24 million[172]. - The transaction amount paid by Ping An's subsidiaries and associates for services and products was RMB 3,850 million, with an actual transaction amount of RMB 1,343.52 million[172]. - The maximum daily balance of deposits held by the group with Ping An's subsidiaries was RMB 1,140.64 million, with interest income from these deposits amounting to RMB 17.65 million, and the actual interest income was RMB 15.05 million[172]. - The maximum daily balance of financial products purchased from Ping An's subsidiaries was RMB 1,140.64 million, with investment income received amounting to RMB 19.26 million, while the actual investment income was RMB 8.84 million[172].

Financial Performance - In 2024, the revenue of Imperium Technology Group Limited decreased to HK$51,510,000, a decline of 29% compared to HK$72,557,000 in 2023[6]. - The loss attributable to owners of the Company for 2024 was HK$43,195,000, significantly reduced from HK$127,733,000 in 2023, representing a 66% improvement[6]. - Total assets decreased to HK$87,159,000 in 2024, down 14% from HK$100,929,000 in 2023[6]. - The total liabilities of the Company decreased to HK$266,409,000 in 2024, a reduction of 25% compared to HK$353,744,000 in 2023[6]. - The Group's total revenue for 2024 decreased by approximately 29.0% to approximately HK$51,510,000 compared to HK$72,557,000 in 2023, primarily due to a decrease in sales from the household products segment and lack of contribution from Metasens projects[28][31]. - Loss attributable to shareholders for the Year was approximately HK$43,195,000, a decrease from HK$127,733,000 in 2023, mainly due to expenses related to the Holosens project and reduced research and development costs[28][31]. - Revenue from the online game business decreased by approximately 27.5% to HK$15,080,000, with a significant contribution drop of approximately HK$10,490,000 from Metasens projects[34][37]. - The revenue from cloud computing and data storage business decreased by approximately 46.6% to HK$2,823,000, driven by a reduction in unit output of Filecoin[39]. - The household products business revenue fell to approximately HK$1,913,000, down from HK$18,292,000 in 2023, leading to a segment loss of approximately HK$382,000[45]. - The property investment business generated revenue of approximately HK$1,257,000, down from HK$1,642,000 in 2023, but achieved a segment profit of approximately HK$1,361,000[46]. - The money lending business revenue decreased to approximately HK$700,000 from HK$1,673,000 in 2023, with a segment gain of approximately HK$684,000[47]. - Gross profit margin increased from 14.7% in 2023 to 39.4% in 2024 due to improved margins in the esports and online game businesses[54]. - Other income rose from approximately HK$1,405,000 in 2023 to approximately HK$1,870,000 in 2024, mainly due to a one-time sponsorship from business partners[57]. - Administrative expenses decreased from approximately HK$90,056,000 in 2023 to approximately HK$47,665,000 in 2024, driven by reductions in share-based payments, employee costs, R&D expenses, and amortization of intangible assets[57]. - The Group experienced a net loss of approximately HK$41,725,000 and an operating cash outflow of approximately HK$19,730,000 for the year ended December 31, 2024[72]. Business Strategy and Development - The Company plans to invest resources in technology-related businesses, particularly in blockchain games, to enhance competitiveness in the online gaming and esports sectors[17]. - The Group recognizes the long-term development prospects of emerging technologies and aims to seize corresponding market opportunities[23]. - The Group is actively developing the Holosens project, a social-focused metaverse platform utilizing virtual reality technology and generative AI for enhanced user experiences[33][36]. - The Group plans to explore IT consulting services leveraging blockchain technology to assist clients in transforming their business operations[40]. - The Group will continue to invest resources in exploring business opportunities related to blockchain technology, AI, and Web3, while exercising caution due to rapidly changing market conditions[48]. - The Group's ongoing commitment to innovation and technology development remains a core strategy for future growth, particularly in the realms of online gaming and cloud services[27][30]. Market Outlook - The GDP of the People's Republic of China grew at an annual rate of 5.0% in 2024, outperforming market expectations[16]. - The global economy is predicted to grow at 3.2% in 2024 amid geopolitical and macroeconomic uncertainties[22]. - The digital economy is expected to account for approximately 17.0% of global GDP by 2028, with a CAGR of approximately 7.0% through 2028[22]. - The gaming market is projected to grow with a CAGR of 3.1% from 2022 to 2027, indicating a more stable growth aligned with the overall economy[22]. Financial Position and Liabilities - The Group's net current liabilities increased to approximately HK$216,800,000 in 2024 from HK$208,024,000 in 2023, primarily due to the reclassification of loans from related parties[60]. - The gearing ratio decreased from 298.0% in 2023 to 246.3% in 2024, reflecting a reduction in loans from related parties[70]. - As of December 31, 2024, the Group had no bank borrowings and loans from related parties amounted to approximately HK$214,684,000, down from HK$300,767,000 in 2023[66]. - The Group entered into revolving loan facilities with an independent third party for up to HK$25,000,000 at an interest rate of 12% per annum, with a repayment date 12 months from the drawdown[63]. Shareholder Information - The Group's reserves available for cash distribution amounted to approximately HK$42,967,000 as of December 31, 2024[120]. - The Board does not recommend any final dividend for the year ended December 31, 2024, consistent with the previous year[118][125]. - The largest customer accounted for 30.7% of the Group's total sales, while the five largest customers collectively represented 62.0%[135]. - The largest supplier contributed to 63.1% of the Group's total purchases, with the five largest suppliers together making up 96.1%[135]. - As of December 31, 2024, Mr. Cheng Ting Kong holds 214,428,488 shares, representing 57.45% of the total shares issued[152]. - The total number of shares in issue as of December 31, 2024, is 373,243,200 shares[153]. Corporate Governance - The Company has a policy of retirement by rotation for directors, with eligible directors offering themselves for re-election[140]. - The Company received written confirmation of independence from all independent non-executive directors, affirming their independence[144]. - All independent non-executive directors have entered into a service contract with the Company for a term of 3 years[140]. - The Company has not been notified of any interests or short positions in shares that require disclosure under the provisions of the SFO as of December 31, 2024[155]. - The Board believes that all major corporate actions are fully deliberated and determined by the Board, ensuring that no director competes with the Company or its business[168]. - The Group operates independently from competing businesses, with an executive committee established to assess business opportunities and performance independently[171]. Employee and Remuneration - The Group's employee remuneration decreased from approximately HK$52,595,000 in 2023 to approximately HK$34,256,000 in 2024, mainly due to a decrease in amortization of share options granted in 2022[82]. - As of December 31, 2024, the Group employed approximately 137 staff[82]. Share Option Scheme - A share option scheme was adopted on June 29, 2018, to incentivize and retain high-caliber employees[175]. - The purpose of the Share Option Scheme is to reward eligible persons for their contributions to the Group and attract valuable human resources[177]. - As of December 31, 2024, the total number of share options available for grant under the Share Option Scheme was 37,324,320[186]. - The total number of shares available for issue is 42,056,752, representing approximately 11.27% of the issued shares of the Company[190]. - The scheme will remain valid and effective until June 28, 2028, after which no further options will be granted[196].

Financial Performance - The group's total revenue for the fiscal year ending December 31, 2024, reached approximately HKD 833.9 million, a significant increase compared to HKD 691.1 million in 2023[10]. - The net profit attributable to shareholders for the year was approximately HKD 21.8 million, recovering from a loss of HKD 14.8 million in the previous year[10]. - For the fiscal year ending December 31, 2024, the company reported a revenue increase of approximately 20.7%, rising from about HKD 691.1 million to approximately HKD 833.9 million[28]. - The increase in revenue was attributed to a shift in consumer spending trends towards more personalized products, resulting in increased orders from American customers[28]. - Gross profit increased by approximately 15.1% to about HKD 206.9 million, while gross margin decreased by about 1.2 percentage points to approximately 24.8%[29]. - The company reported a total comprehensive income of HKD 17,083,000 for the year, compared to a loss of HKD 15,470,000 in 2023[179]. - The company reported a net profit of HKD 21,835,000 for the year ending December 31, 2024, compared to a loss of HKD 14,829,000 in the previous year[184]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.04 per share to reward shareholders for their support[10]. - The company proposed a final dividend of HKD 0.04 per share for the year ending December 31, 2024, compared to HKD 0.02 per share in 2023[110]. - The company paid dividends of HKD 14,000,000 to shareholders, down from HKD 21,000,000 in the previous year[188]. Assets and Liabilities - Non-current assets decreased to HKD 282.7 million from HKD 290.3 million in 2023, while current assets also saw a decline to HKD 497.6 million from HKD 514.0 million[6]. - Total assets as of December 31, 2024, were HKD 780,289,000, a decrease from HKD 804,312,000 in 2023[180]. - The company's equity totalled HKD 585,026,000 as of December 31, 2024, down from HKD 604,596,000 in 2023[182]. - The debt-to-equity ratio as of December 31, 2024, was approximately 22.5%, compared to 21.0% in the previous year[42]. - The debt-to-asset ratio increased from approximately 21.0% in 2023 to about 22.5% in 2024, an increase of 1.5 percentage points[98]. Market Strategy and Expansion - The group plans to launch several new products in 2025, focusing on drinkware and storage products, and aims to integrate IoT technology into lifestyle products[14]. - The group is expanding its market presence in the Asia-Pacific region and enhancing partnerships with existing customers[14]. - The group aims to further expand its business scale in the Chinese market through collaborations with local chain stores[14]. - The company has established a supply chain system outside of China to mitigate the impact of uncertainties in U.S. tariff policies[11]. Governance and Compliance - The board consists of two executive directors and four independent non-executive directors, ensuring a balance of power and authority[48]. - The company has adopted the corporate governance code and has complied with it, except for the provision that the roles of chairman and CEO should be separated[48]. - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee to oversee various aspects of the company[50]. - All directors confirmed compliance with the standard code for securities trading throughout the year[49]. - The company has established a risk management and internal control system to ensure compliance and operational effectiveness[77]. Employee and Talent Management - The total employee cost for the year ending December 31, 2024, was approximately HKD 60.8 million, compared to HKD 57.8 million for the year ending December 31, 2023, reflecting an increase of about 5.2%[145]. - The group had approximately 152 employees as of December 31, 2024, a slight decrease from 154 employees as of December 31, 2023[145]. - The company provides competitive compensation and performance rewards to retain top talent, including salary, medical insurance, and long-term service awards[105]. Risk Management - The company continues to monitor risks such as foreign currency risk, credit risk, and market uncertainties that may impact profitability[93]. - The global market and operating environment remain unstable due to high inflation, tightening monetary policies, and geopolitical tensions[27]. - The company is adopting a cautious financial strategy to navigate potential market fluctuations and geopolitical tensions[11]. Environmental and Social Responsibility - The company has established an environmental policy aimed at reducing carbon emissions and promoting recycling initiatives[100]. - Charitable donations and other contributions totaled HKD 4,110,000 for the year, up from HKD 3,498,000 in 2023[121]. Audit and Financial Reporting - The financial statements for the year ending December 31, 2024, were audited by Hong Kong Li Xin De Hao CPA Limited[158]. - The audit report provides reasonable assurance that the financial statements are free from material misstatement due to fraud or error[173]. - The board is responsible for preparing the financial statements in accordance with the Hong Kong Financial Reporting Standards and ensuring the accuracy of the financial reporting process[171].

Financial Performance - Zhaoke Ophthalmology achieved a revenue of RMB30.4 million in 2024, a significant increase of 546.8% compared to RMB4.7 million in 2023, driven by breakthroughs in hospital listings[22]. - Zhaoke Ophthalmology recorded total revenue of RMB 69.3 million in 2024, a year-on-year increase of 268.6% from RMB 18.8 million in 2023[44]. - Revenue from drug sales amounted to RMB 32.6 million, driven by an enhanced sales network covering over 1,200 hospitals and eye institutions[44]. - Sales of key ophthalmic drug products increased over fivefold to RMB 30.4 million in 2024, compared to RMB 4.7 million in 2023, driven by breakthroughs in hospital listings[147]. - The company achieved a gross profit of RMB 51.8 million for 2024, compared to RMB 14.2 million in 2023, indicating a gross margin improvement[143]. - The total loss before taxation for 2024 was RMB 237.5 million, reduced from RMB 384.5 million in 2023, reflecting a decrease of approximately 38.3%[145]. - The adjusted loss for the year was RMB 228.8 million, down from RMB 363.0 million in 2023, showing a significant reduction in losses[143]. - Other income rose to approximately RMB 87.3 million in 2024, up from RMB 82.0 million in 2023, primarily due to increased government subsidies for R&D activities[154]. - R&D expenses decreased significantly to approximately RMB 203.7 million in 2024, down from RMB 333.1 million in 2023, reflecting a focus on late-stage drug assets[28]. - General and administrative expenses were approximately RMB70.8 million in 2024, a decrease of RMB13.6 million from RMB84.4 million in 2023, mainly due to reduced equity-settled share-based payment expenses[169]. Clinical Development - The Phase III clinical trial for NVK002 completed in August 2024, with positive topline results announced in October 2024[15]. - CsA Ophthalmic Gel received regulatory approval to proceed with a Phase III clinical trial in August 2024, and the company is preparing to resubmit the New Drug Application[17]. - TAB014 successfully completed its Phase III clinical trial in September 2024, meeting all primary and key secondary endpoints, and is preparing for a Biologics License Application submission[18]. - The ongoing clinical development of promising drug assets includes receiving Investigational New Drug approval for BRIMOCHOL™ PF and CARBACHOL™ PF in January 2024[19]. - The Phase III clinical trial for TAB014, targeting wet age-related macular degeneration, was successfully completed in September 2024, achieving all primary and key secondary endpoints[23]. - The Phase III trial for CsA Ophthalmic Gel enrolled 644 patients across 41 centers, demonstrating faster onset of action with efficacy observed around the two-week mark, compared to seven to eight weeks for traditional treatments[62][63]. - The completion of the last patient visit for TAB014's Phase III trial occurred in September 2024, marking a significant milestone in the clinical development process[70][71]. - The IND application for an additional Phase III clinical trial of CsA Ophthalmic Gel was approved in July 2024, based on updated clinical trial guidelines[62][63]. - ZKY001, a seven-amino acid peptide, is being developed for the treatment of CED after eye surgery, with plans to initiate discussions for a Phase III clinical trial protocol[73][76]. Market Expansion and Partnerships - Zhaoke Ophthalmology signed a distribution agreement with Kwangdong Pharmaceutical Co., Ltd. in January 2024, expanding its presence in South Korea[21]. - Partnerships were established in March 2024 with Pharmaniaga Logistics in Malaysia and TRB Chemedica in Thailand to enhance market reach[21]. - The company is focused on expanding its footprint in key global markets through strategic partnerships and distribution agreements[21]. - The company is expanding its market presence in the Asia-Pacific region, including South Korea, Malaysia, Thailand, Australia, and New Zealand, while exploring opportunities in North America[31]. - A strategic partnership with KDP was announced, granting exclusive distribution rights for BRIMOCHOL™ PF in South Korea[103]. - The licensing agreement with Tenpoint now includes exclusive rights for BRIMOCHOL™ PF and CARBACHOL™ PF in multiple regions, including Hong Kong and Australia[104]. - The company has expanded its licensing agreement with Vyluma for NVK002 to include new territories such as Australia and the Middle East[105]. Product Portfolio and Innovation - The company aims to have eight products available in the market by the end of 2025, including anticipated regulatory approval for Epinastine HCl[30]. - The company has established a comprehensive portfolio addressing six major eye diseases, including DED, myopia, and wAMD[46]. - Zhaoke Ophthalmology has made significant progress in developing a portfolio of innovative assets, including NVK002 for myopia and ZKY001 for corneal epithelial defects[36]. - NVK002 has a proprietary formulation with patent protection in the U.S. and China, and it is preservative-free with an expected shelf life of over 24 months[57]. - Zhaoke Ophthalmology's NVK002 has completed two Phase III clinical trials, involving a total of 1,303 patients across 34 centers, with positive topline results expected in October 2024[58][62]. - Zhaoke Ophthalmology is preparing for the commercialization of Epinastine HCl for allergic conjunctivitis, expecting marketing authorizations in the coming months[131]. Manufacturing and Sustainability - Zhaoke Ophthalmology operates a state-of-the-art production facility in Guangdong, China, with four manufacturing lines to scale production effectively[112][113]. - The manufacturing of NVK002 has been successfully transferred to the Guangdong facility, which will reduce manufacturing time and costs[114]. - The company is committed to enhancing sustainability and has organized health seminars to raise awareness of glaucoma and corneal diseases[116]. - Zhaoke Ophthalmology has four production lines operational at its facility in Guangdong, ensuring compliance with international standards and enabling large-scale production of various eye drops[119]. - The company successfully transferred the production of NVK002 to its advanced facility in Nansha, Guangzhou, which is expected to significantly reduce production time and costs[119]. Regulatory Approvals and Submissions - The ANDA for NVK002 (low-dose atropine) was accepted for review by the NMPA in January 2025, positioning the company as second to market in China[44]. - Zhaoke Ophthalmology received regulatory approval for the Bimatoprost Eye Drop in September 2024, followed by additional approvals for other glaucoma treatments in December 2024 and March 2025[50]. - The company plans to resubmit the NDA for CsA Ophthalmic Gel and the BLA for TAB014 in 2025[29]. - Zhaoke Ophthalmology is planning to refile an NDA submission for CsA Ophthalmic Gel after obtaining regulatory approval for an additional Phase III clinical trial[44]. Corporate Governance and ESG - The company published its fourth ESG report in April 2024, enhancing transparency and stakeholder understanding of its socially responsible practices[124].

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

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

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

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