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

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

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

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

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

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

Financial Performance - Revenue increased from RMB 3,405.8 million in 2023 to RMB 3,772.1 million in 2024, representing an increase of approximately 10.7%[8] - Gross profit rose from RMB 1,500.8 million in 2023 to RMB 1,619.7 million in 2024, marking an increase of about 7.9%[8] - Annual loss decreased from RMB 6,494.7 million in 2023 to RMB 4,306.6 million in 2024, a reduction of approximately 33.8%[8] - Adjusted EBITDA loss improved from RMB 4,369.0 million in 2023 to RMB 3,089.2 million in 2024, reflecting a decrease of about 29.3%[8] - In 2024, the total revenue of SenseTime Group increased by 10.8% year-on-year, reaching RMB 3,772.1 million, with generative AI revenue surpassing RMB 2,404.0 million, a year-on-year growth of 103.1%[13] - Generative AI now accounts for 63.7% of the group's total revenue, up from 34.8% in 2023, marking it as the largest revenue contributor[14] - The group's gross profit for 2024 was RMB 1,619.7 million, with a gross margin of 42.9%, while total management and sales expenses decreased by 9.1% year-on-year[13] Customer Engagement and Product Development - The company achieved a significant increase in customer willingness to pay, with order amounts growing sixfold compared to 2023[12] - Monthly user engagement increased eightfold compared to 2023, driven by enhanced user experience and product offerings[12] - The company launched the first domestic large model surpassing GPT 4-Turbo performance in April 2024, followed by a video streaming interactive model in July 2024[12] - The productivity tools based on the multi-modal model have seen a 6x year-on-year increase in customer payment willingness, represented by order amounts in 2024[24] - The user base for office and code assistant products has surpassed 1.5 million, with daily invocation exceeding 1 million times and processing over 3.5 billion tokens daily[26] Research and Development - Research and development expenses increased to RMB 4,131,884 thousand in 2024 from RMB 3,465,766 thousand in 2023, indicating a focus on innovation[40] - R&D expenses grew by 19.2% from RMB 3,465.8 million in 2023 to RMB 4,131.9 million in 2024, driven by investments in training and fine-tuning base models[45] - The company aims to achieve carbon neutrality by 2030 and has implemented measures that saved 800 MWh of electricity in 2024[34] - The company has been recognized as the first to pass the enhanced level assessment of the National Computing Power Service Capability Maturity Model (CPMM)[35] Financial Position and Cash Flow - Total assets increased from RMB 32,888.0 million in 2023 to RMB 34,599.5 million in 2024, an increase of approximately 5.2%[7] - Total liabilities rose from RMB 9,732.6 million in 2023 to RMB 10,957.8 million in 2024, an increase of about 12.6%[7] - As of December 31, 2024, the total cash reserves of the group amounted to RMB 12,752.2 million, and trade receivables increased by 19.0% year-on-year to RMB 4,623 million[13] - The net cash used in operating activities for the year ended December 31, 2024, was RMB (3,926.7) million, compared to RMB (3,234.3) million in 2023, indicating an increase in cash outflow of 21.5%[64] - The net cash generated from financing activities for the year ended December 31, 2024, was RMB 6,259.9 million, significantly higher than RMB 1,083.6 million in 2023, marking a 478.5% increase[67] Strategic Partnerships and Market Expansion - The company has established partnerships with emerging industry clients in areas such as embodied intelligence and AI for science, expanding its market reach[15] - In the smart automotive sector, the delivery of the "Zhenying" system increased by 29.2% year-on-year, with over 1.67 million new deliveries and a cumulative total exceeding 3.6 million vehicles[29] - The company signed strategic cooperation agreements with Dongfeng and Chery to deliver smart driving solutions based on the domestically produced Horizon J6 platform in Q1 2025[30] Governance and Compliance - The company held a total of 7 board meetings, 5 audit committee meetings, 2 remuneration committee meetings, 1 nomination committee meeting, and 3 corporate governance committee meetings during the reporting period[99] - The audit committee held 5 meetings during the reporting period to discuss audit and financial reporting matters with the auditors[106] - The corporate governance committee conducted 3 meetings to review and monitor the company's governance policies and compliance with legal and regulatory requirements[110] - The company has established a whistleblowing mechanism to encourage internal reporting of suspicious activities, with no significant fraud or misconduct events affecting the financial statements for the year ending December 31, 2024[134] Shareholder Engagement and Dividends - The company encourages shareholders to participate in annual general meetings and provides at least 21 days' notice for such meetings[141] - The company did not recommend the distribution of a final dividend for the year ending December 31, 2024, considering the long-term interests of shareholders[156] - The company maintains a website for regular updates and communication with shareholders, including financial reports and announcements[143] Risk Management - The company has established a comprehensive risk management framework to identify and manage compliance risks, ensuring operations comply with applicable laws and regulations[129] - The company has implemented a series of internal procedures to manage operational risks, aiming to control potential losses through identification, measurement, monitoring, and control of these risks[127] - The audit committee has reviewed the company's risk management and internal control systems, deeming them effective and sufficient[136]

Financial Performance - Total revenue for 2024 reached RMB 1,031,173,000, an increase of 18.8% compared to RMB 867,764,000 in 2023[9] - Gross profit for the year was RMB 717,273,000, reflecting a 36.2% increase from RMB 526,515,000 in the previous year, with a gross margin of 69.6%[9] - The company reported a net loss attributable to equity shareholders of RMB 835,381,000, a significant increase of 89.3% from RMB 441,240,000 in 2023[9] - The adjusted loss for the year (non-IFRS) was RMB 679,270,000, representing a 134.8% increase from RMB 289,272,000 in the previous year[9] - The company's revenue and earnings amounted to RMB 10.31 billion, reflecting a year-on-year growth of 19%[18] - Revenue from core enterprise cloud solutions rose by 26.7% from RMB 523.9 million in 2023 to RMB 663.7 million in 2024, driven by an increase in supply chain assets processed[38] - Revenue from financial institution cloud solutions grew by 2.4% from RMB 299.7 million in 2023 to RMB 306.9 million in 2024, despite a decrease in assets processed by e-chain cloud[38] - The company recorded losses of RMB 835.5 million and RMB 443.3 million for the years ended December 31, 2024, and 2023, respectively[61] - Adjusted losses (non-IFRS) for the year ended December 31, 2024, were RMB 679.3 million compared to RMB 289.3 million for the year ended December 31, 2023[64] Customer Metrics - The number of core enterprise customers increased by 59.3% to 962 from 604 in 2023, indicating strong customer acquisition[11] - The customer retention rate improved to 96%, up from 86% in the previous year, showcasing enhanced customer loyalty[11] - The number of core enterprise and financial institution clients increased by 51% to 1,108, with 373 new clients added in 2024[19] - The overall customer retention rate rose from 86% in 2023 to 96% in 2024[19] Supply Chain Assets - The total amount of supply chain assets processed by the company's technology solutions reached RMB 411,210.8 million, a 27.7% increase from RMB 321,977.0 million in 2023[16] - In 2024, the total supply chain assets processed by the company's technology solutions reached RMB 411.2 billion, a year-on-year increase of 28%[18] - The sustainable supply chain asset scale served by the company reached RMB 37.1 billion, a substantial year-on-year increase of 93%[23] - The multi-level circulation cloud business processed supply chain assets totaling RMB 2,073 billion in 2024, reflecting a significant year-on-year growth of 52%[25] - The ABS cloud business saw a total of RMB 542 billion in supply chain assets processed in 2024, marking a substantial year-on-year increase of 101%[26] - The cross-border cloud business processed supply chain assets totaling RMB 207 billion in 2024, achieving a year-on-year growth of 64%[27] - The company processed over RMB 50 billion in supply chain asset transactions across 14 industries for core enterprise clients and partners in 2024[31] Technological Innovations - The company is focusing on technological innovations, particularly in AI, to drive efficiency and value creation in the supply chain finance sector[17] - The company anticipates that supply chain finance will become a key driver for global industrial chain upgrades, supported by macroeconomic resilience and policy incentives[17] - The newly launched lightweight supply chain financial AI product "BeeLink AI" has been successfully deployed in multiple financial institutions[22] Operational Costs and Expenses - Research and development expenses decreased by 9.6% from RMB 365.8 million in 2023 to RMB 330.8 million in 2024, mainly due to a reduction in share-based incentives[42] - Total operating costs decreased by 8.0% from RMB 341.2 million in 2023 to RMB 313.9 million in 2024, due to optimized product structure[40] - Sales and marketing expenses increased by 8.1% from RMB 137.8 million for the year ended December 31, 2023, to RMB 149.0 million for the year ending December 31, 2024, primarily due to increased salaries and business development costs related to customer expansion[43] - Administrative expenses remained stable at RMB 207.7 million for the year ended December 31, 2023, and are projected to be RMB 208.1 million for the year ending December 31, 2024[44] - Equity incentive expenses decreased by 89.4% from RMB 78.1 million for the year ended December 31, 2023, to RMB 8.3 million for the year ending December 31, 2024, mainly due to a reduction in unvested equity incentives[45] Impairment and Losses - Impairment losses increased significantly from RMB 214.4 million for the year ended December 31, 2023, to RMB 640.3 million for the year ending December 31, 2024, primarily due to credit impairment of financial assets[47] - Major impairment losses included RMB 445.1 million from receivables related to core enterprise payments and RMB 176.5 million from supply chain assets[47] - The company recorded other net losses of RMB 58.7 million for the year ending December 31, 2024, compared to net gains of RMB 58.7 million for the year ended December 31, 2023, due to decreased interest income and government subsidies[56] - Operating losses increased from RMB 340.6 million for the year ended December 31, 2023, to RMB 669.7 million for the year ending December 31, 2024[57] Strategic Acquisitions and Growth - The company is exploring external growth strategies through strategic acquisitions to enhance market competitiveness and operational efficiency[29] - The acquisition of Bait Technology will enrich the company's product matrix and extend its solutions from supply chain financing to treasury management systems[30] - The company plans to focus on "AI + industrial finance" and strategic acquisition opportunities to create new growth curves[34] Governance and Compliance - The company has complied with relevant laws and regulations that significantly impact its business as of December 31, 2024[94] - The company has obtained appropriate directors' liability insurance since its listing date[115] - The independent auditor, KPMG, confirmed that the disclosed continuing connected transactions were conducted on normal commercial terms or more favorable terms[158] - The company has demonstrated sincere efforts to comply with applicable laws and regulations regarding its business operations, including commercial factoring and asset securitization[149][150] Shareholder Information - The board proposed a final special dividend of HKD 0.03 per share for the year ending December 31, 2024, subject to shareholder approval at the annual general meeting scheduled for June 17, 2025[112] - As of December 31, 2024, the company's distributable reserves amounted to RMB 7,975.1 million, a decrease from RMB 8,710.5 million as of December 31, 2023[116] - The company has a dual-class share structure that allows different voting rights beneficiaries to exert significant influence over company affairs, which may not align with the interests of other shareholders[184] - The company emphasizes the potential risks associated with investing in companies with different voting rights structures, urging investors to consider these risks carefully[184] Management and Experience - The company has a total of 31 years of experience in finance, internet, and technology industries, with the CEO having held senior positions at major banks[162] - The company’s president has nearly 30 years of experience in the financial industry, previously working at China Construction Bank and China Resources Bank[163] - The company’s risk management is overseen by a vice-chairwoman with nearly 40 years of experience in the financial sector, including roles at major banks[165] - The company’s board includes members with extensive backgrounds in investment and mergers, particularly from Tencent Group[168]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately HKD 3,364 million, an increase of about 6.1% compared to HKD 3,172 million in 2023[22]. - The gross profit margin for the same period was approximately 53.5%, with gross profit amounting to HKD 1,798 million, reflecting a 5.8% increase from HKD 1,700 million in 2023[22]. - Adjusted EBITDA for the fiscal year was approximately HKD 741 million, marking a historical high and an increase of about 2.1% from HKD 694 million in 2023[22]. - The net profit for the fiscal year was approximately HKD 406 million, a 1.2% increase from HKD 402 million in 2023[22]. - The adjusted EBITDA for the year ended December 31, 2024, was approximately HKD 741,481,000, an increase of about HKD 47,582,000 or 6.9% compared to 2023[26]. - Core business profit for the year ended December 31, 2024, was approximately HKD 434,982,000, reflecting an increase of about HKD 33,377,000 or 8.3% from 2023[26]. - Basic earnings per share for the year ended December 31, 2024, were HKD 0.432, up approximately 1.9% from HKD 0.424 in 2023[26]. - The total revenue for the year ended December 31, 2024, was HKD 3,364,018,000, representing a 6.1% increase from HKD 3,172,048,000 in 2023[25]. - The company reported a significant increase in overall market strategy and management, with a focus on dental technology and related production techniques[122]. Market Expansion and Strategy - The company is actively pursuing strategic acquisitions, including the acquisition of Hexa Ceram Company Limited, Thailand's largest dental laboratory, to enhance its product offerings and market coverage[20]. - The company has invested in digital workflows and proprietary dental solutions, positioning itself at the forefront of the digital transformation in the dental industry[9]. - The company aims to evolve into a comprehensive dental ecosystem by 2025, providing full support to customers and enhancing its product offerings, particularly in clear aligners[59]. - The company plans to establish a new business unit in Vietnam to serve mid to large dental clinic chains in North America, enhancing operational flexibility amid tariff challenges[51]. - The company aims to leverage digitalization trends in the dental industry to capture market share and enhance customer experience through advanced digital solutions[50]. - The company has made several landmark acquisitions, including the recent acquisition of Thailand's largest dental laboratory, Hexa Ceram, to diversify its global distribution and sales network[59]. - The company plans to strengthen its global leadership position through strategic measures, including acquisitions and partnerships, to expand its product offerings and enhance its distribution network[59]. Regional Performance - The company experienced growth in various regions, with Europe showing a double-digit increase in revenue, driven by the digitalization trend in the dental industry[29]. - In Europe, revenue amounted to HKD 1,618,436,000 for the fiscal year ending December 31, 2024, representing a 16.1% growth from HKD 1,399,371,000 in 2023, accounting for 48.1% of total revenue[50]. - North America generated revenue of HKD 752,083,000, a slight decrease of HKD 1,532,000 from HKD 753,615,000 in 2023, contributing approximately 22.3% to total revenue[51]. - The Greater China market recorded revenue of approximately HKD 662,210,000 for the year ending December 31, 2024, a decrease of about HKD 51,382,000 compared to the previous year, representing approximately 19.7% of total group revenue, down from 22.5%[55]. - The Australian market generated revenue of approximately HKD 264,752,000 for the year ending December 31, 2024, an increase of about HKD 10,411,000, accounting for approximately 7.9% of total group revenue, slightly down from 8.0%[56]. - The company reported a 30.1% increase in revenue from other markets, totaling HKD 66,537,000 compared to HKD 51,129,000 in 2023[46]. Operational Efficiency and Investments - The company has expanded its production capacity with the full operation of its Dongguan Phase II and Vietnam facilities to meet growing demand[11]. - The company is committed to sustainable growth and responsible business practices, focusing on minimizing waste and carbon emissions through digital production technologies[13]. - The company is committed to investing in digitalization to improve operational efficiency and customer experience, positioning itself at the forefront of industry integration[58]. - Research and development costs for the year were approximately HKD 43,564,000, representing about 3.1% of the group’s revenue, an increase from 2.4% in 2023[83]. - Capital expenditures for the year ended December 31, 2024, amounted to approximately HKD 153,504,000, with investments in cutting-edge technology machinery totaling approximately HKD 59,207,000, up from HKD 32,862,000 in 2023[83]. Financial Management and Governance - The group’s debt ratio as of December 31, 2024, was approximately 14%, a decrease from 16% in 2023, indicating a stable financial condition[87]. - The group has significant goodwill and intangible assets, which account for a major portion of total assets, with key assumptions for impairment testing remaining stable[104]. - The group has a diversified customer base, reducing the concentration of credit risk, as it only engages with reputable third parties[109]. - The management team has over 30 years of experience in the dental industry, contributing to the company's strategic planning and operational management[125]. - The company is committed to maintaining high standards of corporate governance through its independent board members[130]. - The board of directors includes experienced professionals with extensive backgrounds in dental and corporate governance, ensuring effective oversight and strategic direction[142]. Shareholder Information and Dividends - The company proposed a final dividend of HKD 0.092 per share for the year ended December 31, 2024, up from HKD 0.090 in 2023, pending shareholder approval[26]. - The company reported a mid-term dividend of HKD 0.08 per share for the six months ending June 30, 2024, an increase from HKD 0.06 for the same period in 2023[150]. - As of December 31, 2024, the company's distributable reserves were approximately HKD 320.27 million, down from HKD 397.84 million in 2023[158]. - The company will hold its annual general meeting on May 29, 2025, with a cutoff for share transfer registration from May 26 to May 29, 2025[151]. Risks and Challenges - Geopolitical risks and trade disputes are noted as factors that could complicate the global economic outlook, affecting the group's operations and supply chain[103]. - The group faces various foreign exchange risks, particularly with currencies such as RMB, EUR, AUD, and USD, and actively monitors these risks to maintain them at acceptable levels[108]. - The budgeted sales growth rate for 2024 is projected to be between 0% to 10%, consistent with the previous year[104].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 46,453,309 thousand, a decrease of 8.1% compared to RMB 50,560,063 thousand in 2023[8] - Gross profit for the same period was RMB 685,686 thousand, down 25.6% from RMB 921,534 thousand in 2023[8] - The total comprehensive loss for the year was RMB (385,139) thousand, representing an increase of 102.2% compared to RMB (190,493) thousand in 2023[8] - The company recorded a net loss of approximately RMB 385.1 million for the year ending December 31, 2024, an increase of about 102.2% compared to a net loss of approximately RMB 190.5 million for the year ending December 31, 2023[42] - The company achieved revenue of approximately RMB 46.45 billion and a gross profit of approximately RMB 686 million for the review year[45] - Gross profit decreased from approximately RMB 921.5 million in 2023 to approximately RMB 685.7 million in 2024, primarily due to the reduction in revenue[53] - Other income fell from approximately RMB 69.2 million in 2023 to approximately RMB 57.3 million in 2024, mainly due to a decrease in government subsidy income[54] Sales and Processing Volumes - Stainless steel sales volume increased by 0.7% to 2,056,957 tons from 2,043,000 tons in 2023[11] - Carbon steel sales volume rose by 4.2% to 5,059,186 tons compared to 4,855,332 tons in 2023[11] - The processing volume of stainless steel decreased by 1.9% to 3,179,884 tons from 3,241,597 tons in 2023[11] - The processing volume of carbon steel also declined by 1.6% to 4,785,147 tons from 4,863,370 tons in 2023[11] - The annual sales volume of stainless steel processing increased by approximately 0.7% from about 2,043,000 tons in 2023 to about 2,057,000 tons in 2024, while processing volume decreased by approximately 1.9% from about 3,242,000 tons to about 3,180,000 tons[42] - The annual sales volume of carbon steel processing increased by approximately 4.2% from about 4,855,000 tons in 2023 to about 5,059,000 tons in 2024, while processing volume decreased by approximately 1.6% from about 4,863,000 tons to about 4,785,000 tons[42] Corporate Governance and Board Structure - The board consists of 6 executive directors, 2 non-executive directors, and 4 independent non-executive directors, with a total of 5 board meetings held in the fiscal year ending December 31, 2024[71][73] - The board's composition reflects a mix of experience, with recent appointments and resignations noted, ensuring a diverse governance structure[71][72] - The board of directors consists of four independent non-executive directors, accounting for one-third of the board's total members[87] - The board has delegated certain functions to committees, including the remuneration committee, nomination committee, and audit committee[89] - The independent non-executive directors provide independent opinions on the group's business strategy, performance, and management[86] - The company has established a mechanism to ensure the board receives independent views and opinions, with at least one-third of the board being independent non-executive directors[83] Strategic Initiatives and Future Plans - The company plans to focus on market expansion and new product development in the upcoming fiscal year[18] - The company plans to enhance service networks and improve processing service capabilities through investments in advanced automation equipment and digital transformation of existing production facilities[43] - The company aims to become a global leader in metal processing services, focusing on sustainable profitability, cash flow, and dividend growth without compromising financial stability[70] - The company is focused on internal growth in industries or regions where it has management experience and resources[70] - The company is increasingly prioritizing sustainability, including circular economy practices and sustainable procurement[70] Risk Management and Internal Controls - The board is responsible for risk management and internal control systems, which are designed to manage risks rather than eliminate them[128] - The group has established and maintained effective risk management and internal control systems, ensuring adequate resources and qualified personnel in accounting, internal audit, and financial reporting[132] - The internal audit function regularly analyzes and independently reviews the adequacy and effectiveness of the group's risk management and internal control systems, reporting findings to the audit committee[133] - The group conducts annual reviews of its risk management and internal control systems, covering all significant controls including financial, operational, and compliance monitoring[135] - The group has adopted a whistleblowing and anti-fraud policy to maintain high standards of business ethics, encouraging employees to report observed and suspected violations[136] Employee and Board Diversity - The company aims to maintain gender diversity on the board, with one female director representing 8% of the board members[106] - As of December 31, 2024, 81% of the company's employees and senior management are male, while 19% are female[109] - The company has adopted a board diversity policy since 2013, considering various factors such as gender, age, and professional experience[102] - The company plans to review its diversity policy annually to ensure its effectiveness and make necessary adjustments[108] Shareholder Communication and Engagement - The company emphasizes regular communication with shareholders and investors to ensure they are informed about strategies and financial performance[123] - The company will hold interactive live sessions after announcing interim or annual results to enhance communication with investors[126] Major Shareholders and Ownership Structure - The major shareholders include Lianhao Group Limited with 738,435,000 shares (57.94%), China Baowu Steel Group Co., Ltd. with 207,500,000 shares (16.28%), and Baosteel Stainless Steel (International) Co., Ltd. with 103,750,000 shares (8.14%)[192] - The board of directors includes significant shareholders, with Zhou Keming and Xu Xia holding 738,551,000 shares each, representing 57.95% of the issued share capital[186] Dividend Policy - The company has a dividend policy established in 2019, which was revised on March 28, 2025, focusing on sustainable dividend distribution while enhancing business growth capabilities[115] - The board will consider various factors, including financial performance and capital expenditure needs, when proposing any dividend distribution[116] - The company did not declare any interim dividends for the year, consistent with 2023[158] - The company did not recommend any final dividends for the year ending December 31, 2024, similar to 2023[159]