Financial Performance - The Group reported a comprehensive income of HK$XX million for the year ended December 31, 2024, representing a Y/Y increase of XX%[22] - The total revenue for the reporting period was HK$XX million, reflecting a growth of XX% compared to the previous year[22] - For the year ended December 31, 2024, the company's revenue reached RMB 18,527.76 million, representing a 6.5% increase compared to the previous year[31] - The gross profit for the same period was RMB 3,196.67 million, with a gross margin of 17.3%, showing a 9.7% increase in gross profit year-over-year[31] - Net profit attributable to equity shareholders for the year was RMB 785.08 million, reflecting a 29.7% increase compared to the previous year[31] - The net profit margin for the year was 4.7%, calculated as profit attributable to equity shareholders divided by revenue[32] - Profit for the year was RMB 867.4 million, representing a 21.1% increase from RMB 716.1 million in 2023, with profit attributable to equity shareholders rising by 29.7% to RMB 785.1 million[120] - The net profit margin improved to 4.7%, up 0.6 percentage points from 4.1% in 2023[121] Revenue Breakdown - Property services accounted for 66.9% of overall revenue in 2024, indicating a focus on this segment[31] - Revenue from property services reached RMB 12,401.3 million, accounting for 66.9% of the Group's total revenue, with a year-on-year growth of 11.7% from RMB 11,101.5 million in 2023[92] - Revenue from community living services was RMB 3,373.2 million, accounting for 18.2% of total revenue, reflecting a year-on-year decrease of 5.5% from RMB 3,568.6 million in 2023[92] - Consulting services generated revenue of RMB 2,412.0 million, which is 13.0% of total revenue, showing a year-on-year growth of 5.1% compared to RMB 2,295.3 million in 2023[92] - Technology services revenue amounted to RMB 341.2 million, accounting for 1.9% of total revenue, with a year-on-year decrease of 20.3% from RMB 428.0 million in 2023[92] Market Expansion and Strategy - User data indicates that the Group has served over XX million residents, enhancing its market presence significantly[22] - The Group plans to expand its service offerings by introducing new technology services aimed at improving customer experience[22] - Future outlook includes a projected revenue growth of XX% for the upcoming fiscal year, driven by market expansion strategies[22] - The Group's market expansion strategy includes targeting new geographic regions within China to increase its customer base[22] - The Group is actively pursuing potential acquisitions to enhance its service portfolio and market reach[22] - The Group is committed to enhancing service quality and expanding its market presence, aiming for "high-quality development" in 2025[86] - The Group's strategic goal is to become the most valuable happiness service provider in China, adhering to a customer-oriented and quality-focused service strategy[90] Operational Efficiency and Innovation - The company plans to enhance its technology services to support digital transformation for clients, which is crucial for building a differentiated product system[27] - The community living services segment is evolving to meet the changing needs of property owners and residents, integrating online and offline services[27] - The Group aims to build a digital management center for industrial communities through smart community products[174] - The company reduced the management expense ratio by 0.5 percentage points through digital empowerment and precise operation[77] - AI-powered glasses, floor-cleaning robots, and customer service robots are in pilot deployment as part of the company's technological innovation strategy[78] Assets and Liabilities - Current assets as of December 31, 2023, amounted to RMB 12,111,712, up from RMB 10,840,595 in 2022[38] - Total assets reached RMB 18,081,669, an increase from RMB 16,853,692 in 2022[38] - Net assets as of December 31, 2023, were RMB 8,225,204, compared to RMB 7,876,143 in 2022[38] - The debt ratio decreased to 51.7% as of December 31, 2024, down 2.8 percentage points from 54.5% in 2023[131] - Trade and other receivables increased by 9.1% to RMB 5,576.6 million as of December 31, 2024, from RMB 5,113.9 million in 2023, due to business growth[136] Employee and Operational Costs - The Group's total staff costs increased by 5.7% to RMB 6,150.5 million in 2024, up from RMB 5,816.9 million in 2023, primarily due to new project deliveries and rising manpower costs[181] - As of December 31, 2024, the Group had 48,423 employees, representing a 5.2% increase compared to 2023[181] Future Plans and Investments - The Group plans to expand its community products and services, projecting a revenue increase of 11.7% for 2024[35] - The Group has not employed any financial instruments for hedging foreign exchange risks but will explore options with major banks[175] - The Group did not have any significant investments during the year[185] - As of December 31, 2024, the Group had no future plans for material investments and capital assets[193]

Financial Reporting Changes - The company announced a change in its financial year end date from June 30 to December 31, effective immediately, resulting in a six-month audited financial statement covering July 1, 2023, to December 31, 2023[13]. - The annual report for the current financial period covers a full year from January 1, 2024, to December 31, 2024[13]. - To enhance comparability, the company included unaudited financial results for the twelve months ended December 31, 2023, derived from combining previous financial results[14]. - The financial performance highlights and detailed results for the six-month period will be available in the annual report, which includes key metrics and performance indicators[4]. - The company is expected to provide guidance on performance metrics and targets for the upcoming fiscal year in the annual report[4]. - The report will also cover any potential mergers and acquisitions or strategic initiatives that may impact future growth[4]. - The company aims to maintain transparency and accuracy in its financial reporting, as emphasized by the involvement of KPMG as its auditor[9]. Financial Performance Metrics - Revenue for the six months ended December 31, 2023, was RMB 7,632,467 thousand, representing a significant increase compared to RMB 13,838,797 thousand for the twelve months ended December 31, 2023[16]. - Gross profit for the fiscal year ended December 31, 2024, reached RMB 7,637,060 thousand, up from RMB 5,698,431 thousand for the twelve months ended December 31, 2023, indicating a growth of approximately 34.1%[16]. - Operating profit for the six months ended December 31, 2023, was RMB 1,553,707 thousand, which is a substantial increase from RMB 2,819,648 thousand for the twelve months ended December 31, 2023[16]. - Profit for the period attributable to equity shareholders of the Company for the fiscal year ended December 31, 2024, was RMB 2,617,560 thousand, compared to RMB 2,253,241 thousand for the twelve months ended December 31, 2023, reflecting an increase of approximately 16.2%[16]. - Basic earnings per share for the fiscal year ended December 31, 2024, was RMB 2.11, up from RMB 1.81 for the twelve months ended December 31, 2023, representing a growth of 16.6%[16]. - Adjusted net profit for the six months ended December 31, 2023, was RMB 1,302,509 thousand, compared to RMB 2,356,729 thousand for the twelve months ended December 31, 2023[16]. - Adjusted net profit for the fiscal year ended December 31, 2024, was RMB 2,720,612 thousand[28]. - Adjusted EBITDA for the fiscal year ended December 31, 2024, was RMB 4,334,325 thousand[28]. Store Expansion and Market Presence - For the fiscal year ended December 31, 2024, MINISO's total number of stores increased from 6,413 to 7,504, representing a growth of approximately 17%[30]. - As of December 31, 2024, MINISO operated nearly 4,400 stores in mainland China and over 3,100 stores in overseas markets[35]. - The number of TOP TOY stores increased from 148 to 276, marking an increase of approximately 86%[30]. - The number of directly operated TOP TOY stores grew from 14 in 2023 to 40 in 2024, indicating a strong expansion strategy[37]. - The total number of MINISO stores in overseas markets increased from 2,487 in 2023 to 3,118 in 2024, representing a growth of approximately 25.3%[58]. - The number of stores operated under the MINISO Retail Partner model in mainland China increased from 3,878 in 2023 to 4,335 in 2024, a net increase of 457 stores[40]. - The company has begun expanding the TOP TOY store network to overseas markets starting in 2024, aligning with its global expansion strategy[36]. Financial Position and Assets - Total assets as of December 31, 2024, were RMB 18,120,128 thousand, an increase from RMB 14,485,309 thousand as of December 31, 2023, indicating a growth of approximately 25.5%[18]. - Non-current assets as of December 31, 2024, reached RMB 6,464,627 thousand, up from RMB 4,157,675 thousand as of December 31, 2023, reflecting an increase of about 55.4%[18]. - Total liabilities as of December 31, 2024, were RMB 7,764,606 thousand, compared to RMB 5,294,092 thousand as of December 31, 2023, indicating an increase of approximately 46.8%[18]. - The company’s cash and cash equivalents totaled RMB 6,698.1 million, down from RMB 6,887.0 million as of December 31, 2023[139]. - The company has a capital commitment of RMB 633.5 million as of December 31, 2024, down from RMB 837.2 million as of December 31, 2023, primarily due to the construction of the headquarters building[163]. Strategic Initiatives and Future Outlook - The company plans to use the net proceeds for overseas store network expansion, supply chain optimization, brand building, and share repurchase programs[87]. - The share repurchase program allows for the repurchase of up to HK$2 billion in value of Shares and/or ADSs over a 12-month period starting from August 30, 2024[90]. - The company aims to strengthen its product offerings and optimize its store network as part of its long-term strategic goals for 2025[100]. - The company will adopt a flexible operating model for each overseas market to expand its store network in strategic markets such as North America, Asia, and Europe[99]. - The company plans to implement the "Super Store" strategy to enhance brand image and target "Big Beauty," "Big Toys," and "Big IPs" as super categories[102]. Risks and Challenges - The company faces risks related to consumer demand and discretionary spending, particularly in the context of economic downturns[186]. - The company faces significant risks related to maintaining competitive pricing and high-quality products, which could materially affect its business and financial condition[188]. - A substantial portion of the company's operations are conducted in China, exposing it to various legal, regulatory, and economic risks that could impact its operations and securities value[189]. - The trading price of the ADSs and shares has been volatile, potentially resulting in substantial losses for investors[196]. - The concentration of share ownership among executives and principal shareholders may limit investors' influence on corporate matters[196]. Legal and Compliance Matters - The company is involved in a federal securities class action lawsuit, with a court decision on a motion to dismiss expected in February 2024[164]. - Compliance with relevant laws and regulations has been maintained during the reporting period, impacting the group's operations[192]. - The company has not established any detailed future plans for material investments or capital assets as of December 31, 2024[151].

Investment Strategy - The company has completed investments in sectors such as high-end manufacturing, semiconductors, new materials, and artificial intelligence, accumulating a portfolio of quality project resources[9]. - The company aims to explore new business tracks in emerging industries like the Internet of Things and integrated circuits through a limited partnership fund established in collaboration with Wuxi Transportation Group[3]. - The company has successfully completed minority equity investments in several semiconductor and new material projects, gaining industry experience[3]. - The company plans to leverage its shareholder resources to drive business transformation and create new growth points in the new economy[9]. - A new limited partnership, Xinsheng Investment, was established to prioritize investments in IoT, integrated circuits, biomedicine, high-end manufacturing, energy conservation, and new materials[32]. - The company plans to focus on mergers and acquisitions in sectors such as integrated circuits, new energy, high-end equipment manufacturing, big data, and artificial intelligence, establishing clear main business directions[46]. - The company aims to complete the selection of industries and targets for mergers and acquisitions by 2025, leveraging national industrial policy directions[36]. - The company is focusing on acquiring projects in promising industries such as the new energy vehicle supply chain and high-end equipment manufacturing[53]. Financial Performance - In 2024, the company achieved a revenue of 412 million RMB and an operating profit of approximately 100 million RMB, with a proposed annual dividend of 0.0039 HKD per share[29]. - The fixed income investment segment generated approximately 184 million RMB in revenue, while the Wuhan property project contributed around 133 million RMB in rental and management fees, maintaining stability compared to 2023[30]. - In 2024, the company achieved a total revenue of 412 million RMB and a net profit of approximately 56 million RMB[42]. - The fixed income investment portfolio contributed a post-tax investment return of 184 million RMB, with a total investment amount of 2.5 billion RMB across 9 projects[43]. - The company's total assets as of December 31, 2024, amounted to RMB 7.896 billion, slightly up from RMB 7.879 billion in 2023[85]. - Total liabilities stood at RMB 3.197 billion, showing a minor decrease from RMB 3.209 billion in the previous year[85]. - The net profit attributable to equity holders of the parent company for 2024 was RMB 44.317 million, down from RMB 140.858 million in 2023[85]. - The company’s total equity increased to RMB 4.698 billion from RMB 4.670 billion in 2023[85]. Project Development - The company holds a 66.4% stake in the Wuhan Optics Valley New Development International Center project and a 72.63% stake in the Shanghai Luodian New Town project[11]. - The total land area is 6.80 square kilometers, located in Baoshan District, approximately 30 minutes from downtown Shanghai via Metro Line 7[12]. - The project company has a total floor area of 172,496 square meters, with above-ground construction area of 116,978 square meters[12]. - The Wuhan Optics Valley High-tech Development Zone is a well-known base for optoelectronics and semiconductor industries, aligning with the company's strategic direction in integrated circuit property development[12]. - The company has established a joint venture with Vanke to develop the Eastern District project, holding a 50% stake[12]. - The land use planning for the Junzhuang Town in Mentougou District was approved by the Beijing government in March 2025, and the company is collaborating with partners to advance project strategies[12]. Risk Management and Compliance - The company emphasizes risk management and stable income generation through diversified financing channels[15]. - The management team emphasizes a "safety first, stability first" investment philosophy, ensuring no new risk projects were added throughout the year[34]. - The company is committed to strengthening internal management and risk control, regularly reviewing the effectiveness of its risk management and internal control systems[34]. - The company has engaged Deloitte as the internal auditor to review all significant control policies and procedures, reporting any major potential risks to the board[178]. - The audit committee is responsible for evaluating the adequacy and consistency of the company's risk management and internal control systems, including administrative, operational, and internal accounting controls[186]. Corporate Governance - The board of directors consists of nine members: three executive directors, three non-executive directors, and three independent non-executive directors, ensuring diverse and objective perspectives in decision-making[143]. - The company is committed to maintaining a clear governance structure, with defined roles and responsibilities for management and staff, ensuring compliance with the employee code of conduct[138]. - The board reviews the company's financial performance and significant investments at least four times a year, approximately once per quarter[138]. - The company has established a robust control framework to ensure effective governance and strategic goal setting[138]. - The company has implemented an independent assessment mechanism for the board to seek professional advice, enhancing independent judgment[148]. Employee and Shareholder Engagement - The company emphasizes timely and fair communication with shareholders and investors, holding regular roadshows and communication meetings in Hong Kong and other regions[198]. - Shareholders are encouraged to participate in the annual general meeting, where resolutions and operational issues are discussed[200]. - The company has a policy that one-third of the board must retire at each annual general meeting, ensuring regular rotation of directors[160]. - The company has received written annual independence confirmations from all current independent non-executive directors, affirming their status[155]. Future Outlook - The outlook for 2025 indicates a focus on establishing the main business direction and formulating the "15th Five-Year" development strategy[35]. - The company plans to continue expanding its urbanization projects and enhance its investment property portfolio to drive future growth[87]. - The company will actively explore financing activities in 2025, including bonds and bank loans, to support strategic transformation and business development[40]. - For 2025, the company anticipates a stable profit growth while controlling project risks, with a focus on industry mergers and acquisitions to accelerate business transformation[51].

Financial Performance - Haidilao reported a revenue of RMB 10.5 billion for the fiscal year 2024, representing a year-over-year increase of 15%[2] - The company achieved a net profit of RMB 1.2 billion, which is a 20% increase compared to the previous year[2] - Future guidance estimates revenue growth of 12-15% for the next fiscal year, driven by new product offerings and market expansion[2] - The company reported a 10% increase in average transaction value, reflecting improved customer spending[2] - The financial performance indicates a strong recovery trajectory, with consistent growth in both revenue and profit metrics over the past five years[30] - For the year ended December 31, 2024, the Group's total revenue amounted to RMB42,754.7 million, representing a year-on-year increase of 3.1%[36] - The core operating profit in 2024 reached RMB6,229.9 million, up by 18.7% year-on-year[36] - The profit for the year in 2024 increased by 4.6% compared to the previous year, reaching RMB4,700.3 million[36] - The company has shown a significant recovery from a loss of RMB 4,161,206 in 2021 to a profit in the subsequent years[30] Customer Engagement and Expansion - User data indicated that the total number of customers served reached 50 million, up from 42 million in the previous year, marking an increase of 19%[2] - Haidilao plans to open 100 new restaurants in 2025, expanding its footprint in both domestic and international markets[2] - The average table turnover rate for Haidilao restaurants was 4.1 times per day, compared to 3.8 times per day in 2023[36] - A total of 415.0 million customer visits were recorded in 2024, reflecting a 4.5% increase from the previous year[36] - As of the end of 2024, Haidilao's membership exceeded 188.7 million, with active members increasing by 8.8% year-over-year to over 52 million[49] - The franchise business was officially launched in 2024, with 13 franchised restaurants established, primarily in lower-tier cities, indicating strong market demand[51] Operational Efficiency and Innovation - The company is investing RMB 500 million in new technology for kitchen automation to enhance operational efficiency[2] - Haidilao's R&D expenditure increased by 25% to RMB 300 million, focusing on menu innovation and customer experience enhancement[2] - The company is committed to ongoing innovation and market expansion strategies to sustain growth in the competitive landscape[30] - Haidilao implemented a "twin-restaurant manager" model to enhance management efficiency and empower exceptional restaurant managers[48] - The company introduced a dedicated customer manager program to strengthen customer relationships and improve satisfaction[48] - Haidilao aims to leverage AI technology to upgrade operational systems and improve overall management efficiency[51] Strategic Partnerships and Supply Chain - The company has initiated a strategic partnership with a leading food supplier to improve supply chain efficiency and reduce costs[2] - The Group continues to enhance the dining experience by refining service capabilities and implementing digital operations[55] - The "Pomegranate plan" is being explored to diversify business strategies and franchise models[55] Financial Structure and Investments - Haidilao's debt-to-equity ratio remains stable at 0.4, indicating a strong financial position for future investments[2] - The company funded its operations and expansion primarily through cash generated from operations, maintaining optimum liquidity for working capital needs[106] - The Group had no material acquisitions or disposals during the reporting period[133] - There are no major changes affecting the company's performance that need to be disclosed during the reporting period[139] Leadership and Governance - Mr. Gou Yiqun appointed as CEO effective July 1, 2024, bringing over 25 years of industry experience[150] - Mr. Li Peng has served as financial director since April 2020, responsible for finance and budgeting[156] - Ms. Song Qing appointed as deputy general manager in February 2024, overseeing product management and business expansion[160] - The governance structure includes independent directors with diverse expertise, which may enhance decision-making processes[199] - The company is positioned to leverage its leadership's experience in technology and finance to explore new business opportunities and partnerships[198]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,434.8 million, a decrease of 12.5% year-on-year[11]. - Gross profit for the same period was RMB 1,102.7 million, reflecting a decline from previous years[8]. - The adjusted net loss for 2024 was RMB 44.0 million, a significant reduction of 74.1% compared to the prior year[13]. - Total assets as of December 31, 2024, amounted to RMB 5,448.5 million, down from RMB 5,852.2 million in 2023[10]. - The company reported an operating loss of RMB 376.3 million for 2024, an improvement from the loss of RMB 763.2 million in 2023[8]. - Total liabilities decreased to RMB 745.6 million in 2024 from RMB 918.3 million in 2023[10]. - The company reported a net loss of RMB (189,546) thousand for the year ended December 31, 2024, a reduction of 67.7% from RMB (587,043) thousand in 2023[73]. - The company maintained a net cash position as of December 31, 2024, with no debt[78]. Market and Industry Trends - The company has successfully navigated significant challenges in the real estate sector, which saw a decline in sales from RMB 18.2 trillion in 2021 to RMB 9.7 trillion in 2024[16]. - In 2024, China's cumulative sales area of commercial housing reached 970 million square meters, a year-on-year decrease of 12.9%, with a cumulative sales amount of RMB 9.7 trillion, down 17.1% year-on-year[20]. - In Q4 2024, China's cumulative sales amount of commercial housing was RMB 2.8 trillion, showing a year-on-year growth of 1.1%, indicating a stabilization signal in the market[20]. - The demand for digital tools in real estate operations and management is expected to continue growing as the industry shifts focus from new development to existing asset management[22]. Strategic Focus and Future Plans - The company plans to focus on consolidating the domestic market and restoring sustainable profitability[17]. - There is an emphasis on accelerating investments in AI technology and driving product and technological innovation[17]. - The company aims to expand its overseas market presence to increase business scale and influence[17]. - The company plans to accelerate the AI application in various real estate business scenarios, enhancing SaaS product functions and services[26]. - The company plans to focus on core products and improve product profitability, particularly in high-potential areas like "AI + real estate marketing" and "asset management & operations" in 2025[43]. - The company aims to expand its international market presence by establishing localized teams in regions such as Singapore, Malaysia, and Japan, with a cumulative contract value of nearly RMB 10 million[46]. Product and Service Performance - In 2024, the company's cloud service revenue was RMB 1,195.1 million, a year-on-year decrease of 10.7%, accounting for 83.3% of total revenue[28]. - The asset management and operation product line achieved year-on-year revenue growth, driven by increased investment in the management of existing real estate[28]. - The revenue from the customer relationship management product line was RMB 858.9 million, a year-on-year decrease of 9.2%[33]. - The project construction product line recorded revenue of RMB 124.2 million, a year-on-year decline of 20.7%[36]. - The asset management and operation product line generated revenue of RMB 99.8 million, a year-on-year increase of 14.2%[37]. - The Tianji PaaS platform recorded revenue of RMB 112.3 million, a year-on-year decrease of 24.6%[39]. Cost Management and Efficiency - The company's sales and marketing expenses in 2024 were RMB 757.7 million, down 17.8% from RMB 921.7 million in 2023[42]. - General and administrative expenses were RMB 244.0 million in 2024, a significant decrease of 53.0% from RMB 519.5 million in 2023[42]. - Research and development expenses amounted to RMB 482.1 million in 2024, a decline of 25.0% from RMB 643.0 million in 2023[42]. - The company intends to optimize resource allocation and enhance operational efficiency by implementing stricter project management measures and promoting the use of AI tools across departments[48]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and transparency in its operations[110]. - The management team has extensive experience in finance and technology, with members holding degrees from prestigious institutions such as Tsinghua University and Wuhan University[106][117]. - The company has established several key subsidiaries, including Mingyuan Cloud Technology and Mingyuan Cloud Procurement, which are integral to its operations[96][99]. - The board of directors includes Mr. Gao as Chairman and Mr. Jiang as CEO, with a structured rotation of board members every three years[153][154]. Employee and Stakeholder Relations - The total employee count is 1,912, down from 2,577 as of December 31, 2023[192]. - The total employee cost for the year ended December 31, 2024, is approximately RMB 1,098,058,000, which includes salaries, bonuses, and other employee benefits[192]. - The company emphasizes the importance of attracting and retaining quality employees through regular training programs[147]. - The company maintains strong relationships with stakeholders, including employees and customers, to ensure sustainable business development[147]. Shareholder Information - The company reported a special dividend of HKD 0.1 per share, amounting to approximately RMB 167.52 million, approved at the 2023 annual general meeting[128]. - As of December 31, 2024, the company's distributable reserves calculated under Cayman Islands law amounted to approximately RMB 7,661.5 million[135]. - The company had no bank loans or other borrowings as of December 31, 2024[137]. - The board does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2024[130]. Contractual Arrangements and Compliance - The company has established a series of contractual arrangements to effectively control its consolidated affiliated entity, Mingyuan Cloud Procurement, due to restrictions on foreign investment in certain industries in China[168]. - The exclusive business cooperation agreement stipulates that Mingyuan Cloud Procurement will pay service fees based on its pre-tax consolidated profit, adjusted for any accumulated losses and operational costs[171]. - The company confirmed that there have been no significant changes to the contractual arrangements for the year ending December 31, 2024, and no termination of these arrangements[177]. - Independent non-executive directors confirmed that transactions conducted under the contractual arrangements were established according to relevant terms and were fair and reasonable for the group[184].

Financial Performance - Net operating income before impairment provisions for 2024 was HKD 71,253 million, an increase of 8.5% from HKD 65,498 million in 2023[6] - Operating profit for 2024 reached HKD 48,677 million, up 14.5% compared to HKD 42,558 million in 2023[6] - Annual profit for 2024 was HKD 39,118 million, representing a 12.9% increase from HKD 34,857 million in 2023[6] - Basic earnings per share for 2024 were HKD 3.6162, a rise of 16.9% from HKD 3.0950 in 2023[6] - Net operating income before impairment provisions was HKD 71.25 billion, up 8.8% year-on-year, and annual profit was HKD 39.12 billion, an increase of 12.2%[24] - Annual profit for the company reached HKD 39.118 billion, representing a year-on-year increase of 12.2%[42] Asset and Deposit Growth - Total assets as of year-end 2024 amounted to HKD 4,194,408 million, up from HKD 3,868,783 million in 2023, reflecting a growth of 8.4%[6] - Customer deposits for 2024 increased to HKD 2,724,221 million, a growth of 8.8% from HKD 2,503,841 million in 2023[8] - Total assets reached HKD 4,194.41 billion, an increase of 8.4% year-on-year[24] - Total customer deposits reached HKD 2,724.22 billion, an increase of HKD 220.38 billion or 8.8% year-on-year[84] Capital and Efficiency Ratios - The cost-to-income ratio improved to 24.55% in 2024 from 25.35% in 2023, indicating enhanced operational efficiency[6] - The total capital ratio improved to 22.00% in 2024 from 21.18% in 2023, indicating a stronger capital position[6] - The bank's capital adequacy ratio is robust, with a Common Equity Tier 1 capital ratio of 20.02% and a non-performing loan ratio of 1.05%, outperforming industry averages[14] - The average return on total assets for 2024 was 0.95%, up from 0.90% in 2023[8] - The average return on equity and average return on total assets were 11.61% and 0.95%, respectively, with increases of 1.01 percentage points and 0.05 percentage points year-on-year[42] Loan and Deposit Management - The loan-to-deposit ratio decreased to 61.55% in 2024 from 67.99% in 2023, suggesting a more conservative lending approach[6] - Customer loans totaled HKD 1,676.89 billion, a decrease of HKD 254.16 billion or 1.5% compared to the previous year[78] - Personal loans increased by HKD 144.08 billion or 2.5%, driven by government-subsidized housing plans[81] - Trade finance loans decreased by HKD 28.41 billion or 6.0%[80] Digital Transformation and Innovation - The company plans to focus resources on digitalization, regionalization, and integration to drive future growth[54] - The mobile banking app introduced new features, including the ability to buy and sell certificates of deposit and deposit physical checks, enhancing customer convenience[93] - The "Property Expert" mobile app has achieved approximately 192,000 downloads, with online mortgage applications accounting for over 80% of total mortgage applications, an increase of over 20 percentage points year-on-year[93] - The group is focusing on digital transformation, aiming for seamless service across regions and channels, with enhancements in online and mobile banking services[120] Sustainable Development and ESG Initiatives - Green and sustainable development-related loan balances and ESG fund sales increased by 28.8% and 37.7%, respectively[16] - Green private loan applications increased by 48% year-on-year, indicating a growing focus on sustainable finance[92] - The bank launched Hong Kong's first carbon footprint tracking feature in its mobile banking app, promoting green financial practices among customers[92] - The company has been recognized for its sustainable development efforts, receiving the "Most Influential ESG Bank in Hong Kong" award[103] Risk Management - The group emphasizes the importance of effective risk management, balancing risk control with business development to ensure shareholder value while maintaining acceptable risk levels[127] - Credit risk primarily arises from lending, trade financing, and funding operations, with detailed management strategies outlined in the financial statements[128] - The group maintains a prudent liquidity risk preference, ensuring stable and sufficient cash sources to meet liquidity demands under normal and stressed conditions[134] - The group has established a "three lines of defense" system for operational risk management, with all departments as the first line of defense responsible for self-assessment and self-correction[136] Awards and Recognition - The bank was recognized as "Hong Kong's Most Stable Bank" for five consecutive years by The Asian Banker[19] - The company has been awarded "Best Cash Management Bank in Hong Kong" for the 10th time by The Asian Banker[100] - The company received multiple awards for its asset management capabilities, including the "Best RMB Fund Manager in Hong Kong" for 2024[109] Leadership and Governance - The board includes members with diverse expertise in risk management, corporate governance, and sustainable development[176] - The company emphasizes sustainable development and corporate governance as key strategic areas[175] - The board's composition reflects a strong commitment to diversity and extensive industry experience[181] - The independent directors collectively bring a wealth of knowledge from various industries, including finance, technology, and public service[191][199]

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

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

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

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