Financial Performance - Total revenue grew by 1% to $3 billion, or 2% excluding foreign currency translation effects[8] - Operating profit margin increased by 80 basis points to 13.4%, with restaurant profit margin rising by 100 basis points[5] - Operating profit increased by 7% to $399 million, with core operating profit rising by 8%[9] - Net profit attributable to Yum China Holdings, Inc. was $292 million, up 2% from $287 million in the same quarter of 2024[27] - The company reported a basic earnings per share of $0.78, compared to $0.72 in the same quarter of 2024[27] - The operating profit margin improved to 13.4%, an increase of 0.8 percentage points from 12.6% in the previous year[27] - Net profit for the quarter ending March 31, 2025, was $313 million, compared to $307 million in the same quarter of 2024, reflecting a growth of 1.95%[35] - Cash generated from operating activities amounted to $452 million, an increase from $442 million year-over-year[35] - The adjusted operating profit remained stable at $399 million, indicating consistent operational performance[47] Revenue Breakdown - KFC's total revenue for Q1 2025 was $2,246 million, a 1% increase from $2,230 million in Q1 2024[12] - Pizza Hut's total revenue for Q1 2025 was $595 million, unchanged from Q1 2024, with an operating profit of $60 million, a 27% increase year-over-year[15] - Company restaurant revenue was $2,801 million, slightly up from $2,794 million in the same quarter of 2024[27] - KFC restaurant revenue was $2,208 million, while Pizza Hut restaurant revenue was $584 million for the quarter[47] Store Expansion - Net new store openings totaled 247, with 62 being franchise stores, accounting for 25% of the total[8] - The company aims to add 1,600 to 1,800 new stores in 2025, continuing to create long-term sustainable value for shareholders[7] - The company expects to add approximately 1,600 to 1,800 new stores in fiscal year 2025, with capital expenditures between $700 million and $800 million[21] - The proportion of franchise stores among new openings for KFC and Pizza Hut is expected to increase to 40%-50% and 20%-30%, respectively, in the coming years[21] Digital and Membership Growth - Digital order revenue reached $2.6 billion, representing approximately 93% of the company's restaurant revenue[8] - Membership numbers for KFC and Pizza Hut combined exceeded 540 million, a 12% increase from last year[8] Shareholder Returns - The company returned $262 million to shareholders, including $172 million in stock repurchases and $90 million in cash dividends[8] - The company plans to return $3 billion to shareholders between 2025 and 2026, following a $1.5 billion return in 2024[13] Cost Management - The cost of food and packaging was $874 million, a decrease of 2% from $896 million in the same quarter of 2024[27] - Total costs and expenses for the quarter were $2,582 million, compared to $2,584 million in the same quarter last year[48] Tax and Financial Position - The effective tax rate for the quarter was 27.8%, compared to 26.9% in the same quarter of 2024[27] - Cash and cash equivalents increased to $825 million from $723 million as of December 31, 2024[33] - Total assets decreased to $11,002 million from $11,121 million[33] - Total liabilities decreased to $4,563 million from $4,694 million[33] Operational Insights - System sales growth reflects the sales performance of all restaurants operating the brand, including both company-owned and franchised locations[36] - The company has revised the definition of same-store sales growth to focus on stable base restaurants, enhancing the accuracy of performance measurement[36] - The company continues to focus on enhancing comparability of financial performance by adjusting for special items and foreign currency effects[43]

Equity and Reserves - Total equity attributable to the owners of the company increased to RMB 3,376,497 thousand in 2024 from RMB 3,156,490 thousand in 2023, representing a growth of approximately 7%[3] - The company’s reserves increased to RMB 3,272,796 thousand in 2024 from RMB 3,052,789 thousand in 2023, showing a growth of about 7%[3] - The company’s total equity and liabilities reached RMB 4,353,125 thousand in 2024, up from RMB 4,085,145 thousand in 2023, indicating an increase of approximately 7%[3] Non-controlling Interests - Non-controlling interests rose to RMB 976,628 thousand in 2024, up from RMB 928,655 thousand in 2023, indicating an increase of about 5%[3] Liabilities - Total non-current liabilities surged to RMB 1,486,284 thousand in 2024, compared to RMB 435,457 thousand in 2023, reflecting a significant increase of approximately 241%[4] - Current liabilities also increased to RMB 1,215,099 thousand in 2024 from RMB 634,680 thousand in 2023, marking an increase of around 92%[4] - The company’s total liabilities increased significantly, with current liabilities alone rising to RMB 1,215,099 thousand in 2024, compared to RMB 634,680 thousand in 2023[4] Assets and Borrowings - Total assets and liabilities amounted to RMB 7,054,508 thousand in 2024, up from RMB 5,155,282 thousand in 2023, which is an increase of approximately 37%[4] - Bank loans and other borrowings for non-current liabilities rose sharply to RMB 1,126,800 thousand in 2024 from RMB 94,614 thousand in 2023, a staggering increase of about 1,090%[4] Trade Payables - The company reported a significant increase in trade payables, which reached RMB 89,013 thousand in 2024, compared to RMB 33,257 thousand in 2023, representing an increase of approximately 168%[4]

Financial Performance - The company's revenue for the first quarter of 2025 reached RMB 4,364,070 thousand, representing an increase of 9.06% compared to RMB 4,001,897 thousand in the same period of 2024[4] - The gross profit for the same period was RMB 1,904,172 thousand, up 10.5% from RMB 1,723,409 thousand year-on-year[4] - The net profit attributable to the company's owners was RMB 1,479,289 thousand, a 6.15% increase from RMB 1,393,689 thousand in the first quarter of 2024[7] - Basic earnings per share for the first quarter of 2025 was RMB 24.68, compared to RMB 23.25 in the same quarter of 2024, reflecting a growth of 6.16%[7] Assets and Liabilities - The total assets as of March 31, 2025, were RMB 75,447,770 thousand, compared to RMB 73,698,364 thousand as of December 31, 2024, indicating an increase of 2.38%[8] - The company's total liabilities as of March 31, 2025, were RMB 35,182,481 thousand, slightly down from RMB 35,218,026 thousand as of December 31, 2024[8] Cash Flow - The net cash flow from operating activities for the first quarter of 2025 was RMB 1,094,803 thousand, down 9.78% from RMB 1,213,923 thousand in the previous year[9] - The company reported a net cash outflow from investing activities of RMB (3,892,550) thousand, significantly higher than RMB (667,688) thousand in the same period last year, indicating increased investment activity[9] - The cash and cash equivalents at the end of the first quarter of 2025 were RMB 19,125,632 thousand, down from RMB 22,394,268 thousand at the end of the first quarter of 2024[9] Corporate Governance - The chairman of the company is Mr. Yuan Yingjie, and the executive directors include Mr. Wu Wei and Mr. Li Wei[11] - The company has independent non-executive directors including Mr. Becker Wei, Ms. Li Weicheng, and Mr. Yu Mingyuan[11] Future Plans - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[3]

Financial Performance - In 2024, the Group's revenue decreased by approximately RMB 41.8 million or approximately 14.2% to approximately RMB 253.5 million, primarily due to declines in the sales of Photovoltaic Products and OEM business[17]. - The revenue from the OEM business slightly decreased by approximately 1.5% to approximately RMB 206.2 million in 2024 despite challenging macroeconomic conditions[18]. - Revenue from the manufacture and sale of Photovoltaic Products dropped by approximately 51.6% to approximately RMB 38.6 million due to a transition to new technology products[19]. - The Group's revenue for the year ended December 31, 2024, decreased by approximately RMB 41.8 million or 14.2% to approximately RMB 253.5 million compared to RMB 295.3 million in 2023[28]. - Revenue from the Photovoltaic Products business decreased by approximately 51.6% to approximately RMB 38.6 million, down from approximately RMB 79.8 million in 2023[29]. - The gross profit margin for the Group decreased to approximately 13.0% for the year ended December 31, 2024, compared to approximately 14.5% in 2023, with gross profit decreasing by approximately 23.2% to approximately RMB 32.9 million[28]. - The Group recorded a decrease in net loss for the year ended December 31, 2024, of approximately RMB 49.0 million to approximately RMB 277.4 million, compared to a net loss of approximately RMB 326.4 million in 2023[31]. Assets and Equity - Non-current assets amounted to RMB 327.3 million, while current assets were RMB 368.9 million in 2024[14]. - Shareholders' equity decreased to RMB 382.4 million in 2024 from RMB 541.0 million in 2023[14]. - The Group's current ratio was 1.3x in 2024, down from 2.0x in 2023, reflecting a decline in liquidity[14]. Costs and Expenses - Selling and distribution expenses increased by approximately 2.1% to approximately RMB 25.3 million in 2024, accounting for approximately 10.0% of the Group's revenue[44][47]. - General and administrative expenses decreased by approximately RMB 35.5 million or approximately 13.8% to approximately RMB 221.6 million in 2024, primarily due to a reduction in equity-settled share-based payments[45][48]. - Research and development costs decreased by approximately RMB 23.1 million to approximately RMB 60.2 million in 2024, focusing on upgrading HJT cell production lines[46][49]. Cash Flow and Liquidity - As of December 31, 2024, the Group's net cash outflow from operating activities amounted to approximately RMB 50.6 million, with cash and bank balances decreasing to approximately RMB 31.9 million[51]. - The net cash outflow from operating activities for the year was approximately RMB 50.6 million, a decrease from RMB 161.9 million in 2023[55]. - As of December 31, 2024, cash and bank balances were approximately RMB 31.9 million, down by approximately RMB 110.7 million from RMB 142.6 million at the end of 2023[55]. Debt and Gearing - The gearing ratio increased to 80.7% as of December 31, 2024, compared to 58.7% in 2023, indicating a rise in total debts relative to equity[52]. - The Group's leverage ratio increased to 80.7% as of December 31, 2024, compared to 58.7% in 2023[55]. Employee and Staff Information - The total staff costs for the year ended December 31, 2024, amounted to approximately RMB 243.95 million, down from RMB 293.07 million in 2023[61]. - The Group had approximately 1,020 employees as of December 31, 2024, a decrease from 1,090 employees in 2023[61]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2024[85]. - The Company periodically reviews its corporate governance practices to ensure continuous compliance[85]. - The Board held a total of 11 meetings during the year 2024, with attendance details summarized in the report[108]. - The Company has maintained a well-balanced Board composition with Directors possessing relevant expertise and extensive experience[99]. - The Company has established three Board Committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of its affairs[132]. Board Composition and Diversity - As of December 31, 2024, the Board consisted of two executive Directors, one non-executive Director, and three independent non-executive Directors, with a gender ratio of 83.3% male and 16.7% female, achieving the target set by the Board[167]. - The gender ratio in the workforce (excluding Directors) was 47.7% female to 52.3% male, indicating a balanced gender distribution[168]. - The Company aims to maintain a balanced gender ratio in the workforce and does not consider gender in recruitment decisions[168]. - The Company has set a gender diversity target of having at least one female Director on the Board[166]. Strategic Initiatives - The Group upgraded its existing HJT cell production lines to the patented HBC solar cell technology, which offers higher conversion efficiency and lower costs[20]. - The Group plans to complete the world's first gigawatt-scale HBC cell factory in 2025 through a joint venture with partners, aiming to expand market reach and partnerships[23]. - The specialized silver-copper paste technology developed for back-contact cells reduces silver paste consumption by over 20%, lowering production costs while maintaining conductivity[26]. - The Group's Boree branded products revenue increased by approximately 496.8% to approximately RMB 4.1 million due to increased online sales[36]. - The Group's strategy includes collaborating with traditional awning suppliers to supply solar awnings to downstream recreational vehicles and household customers[25]. Internal Controls and Risk Management - The Board is responsible for preparing the financial statements for the year ended December 31, 2024, ensuring they provide a true and fair view of the Company's affairs and comply with International Financial Reporting Standards[191]. - The Board and audit committee conducted a review of the internal control system and procedures, believing that the existing risk management and internal control systems are adequate and effective[199]. - The internal audit function is responsible for assessing the Group's risk management and internal control systems and reporting findings to the audit committee[196].

Financial Performance - The company's total revenue for the year ended December 31, 2024, was approximately RMB 54.0 million, an increase of about RMB 5.7 million compared to RMB 48.3 million for the year ended December 31, 2023[9]. - The operating revenue decreased by RMB 981.6 million, a decline of approximately 77.7% from about RMB 1,263.7 million in 2023[10]. - The company reported a significant revenue decrease of approximately RMB 981.6 million, or about 77.7%, from approximately RMB 1,263.7 million for the year ended December 31, 2023, to approximately RMB 282.1 million for the year ended December 31, 2024[29]. - The total comprehensive income for the year ended December 31, 2024, was approximately RMB 54.0 million, an increase of about RMB 5.7 million compared to approximately RMB 48.3 million for the year ended December 31, 2023[30]. - The company recorded revenue of approximately RMB 282.1 million for the year ended December 31, 2024, a decrease of approximately RMB 981.6 million compared to RMB 1,263.7 million for the year ended December 31, 2023[54]. - Trade goods sales accounted for approximately 86.5% of total sales in 2024, while processing service revenue represented about 13.5% of total sales[54]. - The total sales volume from trade activities decreased from 2,672.8 thousand tons in 2023 to 673.0 thousand tons in 2024, a reduction of approximately 75.2%[61]. - Gross profit fell from approximately RMB 141.5 million in 2023 to approximately RMB 15.7 million in 2024, a decrease of about RMB 125.8 million[68]. - The overall gross margin decreased from approximately 11.2% in 2023 to approximately 5.6% in 2024, primarily due to significant price fluctuations and a reduction in higher-margin iron ore production[69]. Asset Management - The company confirmed a gain from the sale of assets amounting to approximately RMB 115.8 million following the completion of the asset transfer agreement[9]. - The company aims to improve its financial position through the sale of certain assets, including mining rights, valued at approximately RMB 314.5 million, minus outstanding liabilities[27]. - The group completed a significant asset transfer agreement on May 21, 2024, for the sale of mining rights and related assets for a total consideration of approximately RMB 314.5 million[77]. Operational Developments - The company is actively responding to government initiatives by expanding into clean energy sectors, including wind, solar, and thermal energy[7]. - The company plans to maintain its iron and titanium concentrate business while developing a complete industrial chain for titanium metal products[7]. - The company is committed to low-carbon and environmentally sustainable projects, adjusting its industrial structure to enhance investor interests[15]. - The company continues to invest in the full titanium industry chain, including the development of sponge titanium and high-purity titanium products[29]. - The company plans to process approximately 1.5 million tons of external rough powder in 2025, focusing on Australian processing agreements[18]. - The construction of the Zhuge Shangyu intelligent mining and processing plant is progressing, with an investment of approximately RMB 500 million planned for 2025[21]. - The total stripping scale for the Zhuge Shangyu mining project is set to reach 3 million tons per year, with construction expected to begin in April 2025[21]. Research and Development - The company continues to strengthen its research and development capabilities, having received multiple certifications for high-tech enterprises and innovation centers[16]. - The company is focusing on the development of new technologies and materials, ensuring timely communication with investors regarding market changes[25]. - The company is actively pursuing partnerships with top universities and research institutions to enhance its technological capabilities and innovation[39]. Governance and Compliance - The board held four regular meetings in the fiscal year ending December 31, 2024, with all directors present at each meeting[90]. - Independent non-executive directors confirmed their independence according to Listing Rule 3.13, ensuring effective governance[99]. - The company conducted two shareholder meetings during the fiscal year, including the annual general meeting on June 6, 2024, and a special meeting on August 16, 2024[94]. - The board has a mechanism in place for obtaining independent opinions to enhance governance practices[93]. - The company is committed to ensuring that board composition meets regulatory requirements and maintains a balance of executive and non-executive directors[93]. - The board consists of six male members and one female director as of the end of the fiscal year on December 31, 2024[105]. - The company has established a formal and transparent process for the selection and reappointment of directors[102]. - The audit committee is responsible for overseeing the financial reporting system and ensuring compliance with accounting standards and regulations[114]. - The company has adopted a set of insider information policies and procedures to ensure the accuracy and timeliness of public disclosures[151]. Financial Position - As of December 31, 2024, the total borrowings of the group amounted to approximately RMB 267.1 million, compared to approximately RMB 118.0 million as of December 31, 2023[73]. - The group's cash and bank balances as of December 31, 2024, were approximately RMB 80.0 million, down from approximately RMB 146.1 million as of December 31, 2023[73]. - The asset-liability ratio as of December 31, 2024, was approximately 32.9%, up from approximately 19.3% as of December 31, 2023, mainly due to advances from the controlling shareholder[74]. - The company has a distributable reserve of approximately RMB 284,118,000 as of December 31, 2024, down from RMB 301,411,000 in 2023[169]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2024, consistent with the previous year[162]. Employee and Management - Employee benefits expenses for the year ended December 31, 2024, were approximately RMB 17.1 million, down from approximately RMB 24.2 million for the year ended December 31, 2023[79]. - The group had 119 employees as of December 31, 2024, a decrease from 179 employees as of December 31, 2023[79]. - The company emphasizes competitive compensation for employees compared to market standards and practices[111]. - The remuneration committee held two meetings during the fiscal year ending December 31, 2024, to review the compensation of directors and senior management[109]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development through technological innovation and energy efficiency[158]. - The company is focusing on green mining practices and aims to integrate sustainable development into its operations[42]. - The company has not made any charitable donations during the year, consistent with the previous year[179].

Market Trends and Demand - In 2024, the national birth rate in the PRC recorded a modest rebound to 6.77‰, compared to 6.39‰ in 2023, marking the first increase after seven consecutive years of decline[15]. - The new fertility support policy issued by the PRC in October 2024 is expected to drive market demand growth for the Group's biological reagents and auxiliary reproductive supplies and equipment[36]. - The Group's focus on male infertility diagnosis positions it to benefit from the market demand growth driven by the new fertility support policy[36]. - Sales of biological reagents and auxiliary reproductive supplies and equipment remained stable, driven by sustained demand in fertility-related healthcare services[16]. - The sales of parasite antibody detection reagents rose to RMB3.8 million, reflecting sustained market demand[26]. Financial Performance - The Group's revenue increased by approximately RMB730,000, or approximately 3.0%, from approximately RMB24.6 million for the year ended 31 December 2023 to approximately RMB25.4 million for the year ended 31 December 2024[39]. - Revenue from the biological reagents and auxiliary reproductive supplies and equipment segment reached RMB25.4 million, a 4.3% increase compared to 2023, with core male fertility IVD reagents sales growing by 1.7% year-on-year to RMB19.4 million, accounting for 76.4% of the segment's total revenue[26]. - Gross profit increased to approximately RMB17.1 million for the year ended 31 December 2024, representing an increase of approximately RMB979,000 or 6.1% from approximately RMB16.1 million in 2023, with gross profit margin rising from 65.3% to 67.3%[42][44]. - The loss attributable to owners of the Company was approximately RMB4.2 million for the year ended 31 December 2024, a decrease of approximately RMB1.6 million or 28.1% from RMB5.8 million in 2023[60][64]. - Basic loss per share improved to RMB0.86 cents for the year ended 31 December 2024, compared to RMB1.39 cents in 2023[61][65]. Strategic Decisions and Developments - The Group terminated the Anoectochilus Formosanus Extractive project in late 2023, ensuring minimal financial impact through a repayment agreement signed in March 2024[17]. - The healthcare products and supplements segment temporarily suspended sales in 2024 following a strategic decision due to prolonged market headwinds[16]. - The Group strategically decided to temporarily suspend sales of the "Nutronic" brand in 2024 due to prolonged market challenges, while retaining valuable resources for future synergies[30]. - In January 2025, the Group signed a non-binding Memorandum of Understanding with Hunan Keyue Biotechnology Company Limited, proposing the acquisition of its equity to synergize resources in the growing women's health market[17]. - The Group intends to acquire equity interest in Keyue Bio to integrate resources and expand the female health market, leveraging its established overseas supply chains and international sales networks[31]. Research and Development - Research and development expenses increased to approximately RMB2.8 million for the year ended 31 December 2024, an increase of approximately RMB272,000 or 10.7% from RMB2.6 million in 2023, driven by costs associated with product improvements and new product development[53][57]. - The Group completed Class II medical device registration of semen biochemical immunoassay equipment in late 2024, enhancing its reagent diagnostic capabilities[27]. - The Group plans to deepen technological research and development, expand its distribution network, and explore emerging markets such as Southeast Asia to drive growth through innovation[37]. Corporate Governance and Management - The company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2024[176]. - The board is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[175]. - The Company emphasizes transparency and accountability in its business strategies and policies[175]. - The roles of chairman and chief executive officer are held by Mr. Zhang Shuguang and Mr. Zhang Chunguang respectively, ensuring a balance of power and authority[200]. - The Company has established board committees with specific written terms of reference to clearly define their authority and duties[188]. Shareholder and Financial Management - The Company successfully placed 20,000,000 new ordinary shares on January 31, 2024, raising net proceeds of approximately RMB 1.82 million, which has been fully utilized[93]. - A second placement of 31,000,000 new ordinary shares on March 21, 2024, raised net proceeds of approximately RMB 2.94 million, also fully utilized by December 31, 2024[94]. - A third placement of 31,000,000 new ordinary shares on April 23, 2024, raised net proceeds of approximately RMB 2.74 million, fully utilized by December 31, 2024[95]. - As of December 31, 2024, the total cash and bank balances were approximately RMB 36.5 million, an increase from RMB 32.9 million as of December 31, 2023, primarily due to loan receivable repayments[69]. - The gearing ratio as of December 31, 2024, was approximately 2.2%, down from approximately 4.5% in 2023, indicating improved financial stability[70].

Financial Performance - For the fiscal year 2024, the company reported revenue of approximately HKD 296.4 million, a decrease of 3.8% compared to HKD 308.2 million in 2023[8] - The gross profit for the fiscal year 2024 was HKD 59.2 million, with a gross margin of 20.0%, an increase of 0.7 percentage points from 19.3% in 2023[8] - The net loss from continuing operations for the fiscal year 2024 was HKD 67.5 million, representing an increase in loss of 24.4% compared to HKD 54.2 million in 2023[8] - The company reported a significant reduction in loss from discontinued operations, with a loss of HKD 19.1 million in 2024, down 74.5% from HKD 75.1 million in 2023[8] - The basic and diluted loss per share for the company was HKD 6.5 cents, a decrease of 20.7% from HKD 8.2 cents in 2023[8] - The net loss for FY2024 was approximately HKD 86.6 million, an improvement from a net loss of approximately HKD 129.3 million in FY2023[47] Business Developments - The company announced the termination and sale of its AI vending machine business due to ongoing losses and challenges in the Chinese consumer market[16] - A new business segment focused on last-mile delivery systems for chain supermarkets using electric motorcycles was established in December 2024[16] - The company plans to develop a new business segment related to last-mile delivery systems for chain supermarkets, capitalizing on the growing demand for instant retail delivery in China[27] - The company established Fengcai Intelligent Digital Technology (Shenzhen) Co., Ltd. to operate the new last-mile delivery service for chain supermarkets[27] - The company aims to provide integrated smart operation services for chain supermarkets, leveraging its existing camera products for monitoring delivery processes[19] - The company anticipates that the new last-mile delivery service will diversify its business and increase revenue sources starting from fiscal year 2025[30] Cost Management - The company plans to further reduce operating costs and actively develop market-oriented businesses and products to improve financial performance[19] - Selling and distribution expenses significantly decreased by approximately 21.6% to about HKD 22.0 million in FY2024 from HKD 28.0 million in FY2023, mainly due to a reduction in salaries and benefits for sales and marketing staff by about HKD 2.0 million[40] - Administrative expenses slightly decreased by approximately 3.7% to about HKD 47.1 million in FY2024 from HKD 48.9 million in FY2023, attributed to strict cost control measures[41] - R&D costs decreased significantly by approximately 21.3% to about HKD 30.4 million in FY2024 from HKD 38.7 million in FY2023, mainly due to a reduction in salaries and benefits for R&D staff by about HKD 6.4 million[42] Governance and Board Structure - The company has adopted the corporate governance code as the basis for its governance practices, ensuring accountability and transparency[93] - The board consists of two executive directors and three independent non-executive directors, maintaining a high level of independence for effective decision-making[100] - The company has established a formal function outline that delineates the powers reserved for the board and those delegated to management[98] - The company has complied with the standard code for securities trading by directors throughout the 2024 fiscal year[95] - The board believes that having Mr. Tang serve as both Chairman and CEO provides strong and unified leadership, beneficial for the company's development[94] - The company has a strong board with members possessing diverse expertise in finance, investment, and corporate governance[82] Risk Management - The company has implemented risk management policies to achieve its strategic objectives[98] - The risk management office coordinates the company's risk management efforts and reports on significant risks at each scheduled meeting[147] - The internal audit department adopts a risk and control-based audit approach, providing independent assurance to the board and audit committee regarding the effectiveness of internal controls[149] - The company integrates its risk management system into core operational routines, continuously assessing potential risks that may impact business objectives[152] - The audit committee and board confirmed that they are unaware of any circumstances that could significantly impact the group's financial position or operational performance, deeming the risk management and internal control systems effective[156] Shareholder Communication and Dividends - The company maintains open communication with shareholders and regularly reviews communication channels to ensure effectiveness, achieving satisfactory results throughout the fiscal year 2024[167] - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering financial status, operational needs, and future expansion plans when proposing dividends[158] - No final dividend is recommended for the fiscal year 2024, consistent with the previous fiscal year[173] Employee and Board Diversity - The company has adopted a diversity policy for board members, focusing on gender, age, cultural background, and professional experience[114] - The current gender ratio among board members is four males to one female, with efforts to maintain and gradually increase female representation[115] - The employee gender ratio, including senior management, is approximately 1:1.3[115] - The nomination committee monitors the implementation of the nomination policy and reports annually to the board[113] Audit and Compliance - The independent auditor's report confirms that the directors are responsible for preparing the financial statements for the fiscal year 2024[125] - The Audit Committee held three meetings in the 2024 fiscal year to discuss financial reporting and risk management matters[129] - The company has adopted accounting standards and practices relevant to its financial reporting[130] - The company appointed Deloitte Touche Tohmatsu as its external auditor for the fiscal year 2024, with audit fees amounting to HKD 1.6 million approved by the board[140] Environmental and Social Responsibility - The company has implemented environmental measures and encourages employees to reduce energy consumption and waste[188] - The company did not make any charitable donations in the fiscal year 2024, consistent with the previous fiscal year[183] - The company has no significant disputes with business partners, including customers and suppliers, during the fiscal year 2024[189]

Financial Performance - The company recorded a total loss of approximately HKD 78.7 million during the relevant period, primarily due to share-based payment expenses and costs associated with special purpose acquisition company (SPAC) transactions[6]. - The company reported a net loss of HKD 78,749,000 for the period, with a net current liability of HKD 35,886,000 as of December 31, 2024[187]. - Administrative expenses during the relevant period were approximately HKD 76.1 million, mainly attributed to share-based payment expenses[25]. - The company has not generated any revenue since its establishment on January 20, 2022, and all activities have been related to its formation, listing, and SPAC merger transactions[25]. - The company has not engaged in any revenue-generating transactions during the relevant period[57]. - The company has not incurred any debt during the relevant period, with a credit facility providing up to HKD 10 million in operational funding, which has not been utilized[29]. - As of December 31, 2024, the company had a capital deficit of approximately HKD 35.9 million, making the capital debt ratio calculation not applicable[32]. SPAC Merger Activities - The business strategy focuses on identifying high-quality Chinese companies engaged in smart automotive technology or possessing supply chain and cross-border e-commerce capabilities for potential SPAC mergers[7]. - The company has identified Qubao Group, which provides online audio content and entertainment services, as a potential SPAC merger target[7]. - The deadline for the business combination agreement has been extended from May 31, 2024, to December 8, 2024, to allow for the completion of necessary filings[8]. - A special general meeting was held on December 6, 2024, where Class A shareholders approved the extension of the completion deadline to June 9, 2025[8]. - The business combination agreement became invalid on December 9, 2024, due to unmet conditions, leading to the termination of related agreements[10]. - Trading of Class A shares and warrants was suspended on December 10, 2024, following the invalidation of the business combination agreement[10]. - A new SPAC merger transaction was approved by Class A shareholders during a special general meeting held on January 8, 2025[11]. - The company has not entered into any final agreements regarding the proposed new Special Purpose Acquisition Company (SPAC) merger transaction as of the report date[12]. - If the company fails to obtain the necessary approvals to extend the SPAC merger completion deadline, it may face significant adjustments to its financial statements[19]. - The funds held in the escrow account will be released to A shareholders upon the completion of the SPAC merger transaction[20]. Shareholder Matters - The company completed the redemption of 85,983,000 Class A shares on January 2, 2025, for a total payment of approximately HKD 875.6 million, reducing the number of Class A shares from 100,100,000 to 14,117,000[36]. - The company must return funds to A shareholders within one month of trading suspension if it fails to meet certain conditions outlined in the Listing Rules[21]. - If the unfavorable decision is not overturned, the company may need to return funds to shareholders at a minimum of HKD 10.00 per share, which could severely impact its ability to continue operations[15]. - The company has submitted a request for review to the Listing Review Committee on March 4, 2025, arguing that the interpretation of Listing Rule 18B.69 was incorrect[17]. Governance and Compliance - The company is committed to adhering to corporate governance principles and will continue to review and enhance its governance practices[100]. - The company has established an audit committee in accordance with the listing rules to review financial information and monitor the financial reporting system[97]. - The board consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[152]. - The company emphasizes transparency and accountability in its governance practices[149]. - The board is committed to maintaining high corporate governance standards and will continue to review and enhance governance practices[151]. - The company has established a risk management and internal control policy, which includes identifying, analyzing, assessing, and addressing risks[192]. - The company has engaged external consultants to review the effectiveness of its risk management and internal control systems, with no significant issues found[194]. Management and Team - The company has a strong management team with members having backgrounds in investment banking, private equity, and corporate finance, enhancing its strategic capabilities[126]. - The management team has collectively overseen significant investment activities across various sectors, including technology, media, and telecommunications[124]. - The company appointed Mr. Feng Lin as CEO and Executive Director on February 14, 2022, who has over 10 years of experience in cross-border mergers and acquisitions[120]. - Mr. Liu Lishu was appointed as Executive Director and Chief Strategy Officer on February 14, 2022, with extensive experience in private equity investment and mergers[122]. - The company has established a robust advisory board with members experienced in cross-border transactions and corporate finance, enhancing its market position[124]. Share Capital and Structure - The total number of Class A shares issued as of December 31, 2024, is 100,100,000, with a potential maximum of 17,500,000 shares from the founder warrants, accounting for 14% of the total[86]. - The total number of Class B shares issued as of December 31, 2024, is 25,025,000, with VKC Management and Vision Deal Acquisition Sponsor LLC each holding 45%[86]. - The company has not established any equity-linked agreements during the relevant period[70]. - The company has not engaged in any share repurchase plans during the relevant period[89]. Risk Management - The company has a commitment to maintaining effective internal controls to protect shareholder investments and company assets[191]. - The company has a policy for handling insider information to ensure compliance with applicable laws and regulations[194]. - The company has a whistleblowing policy in place for employees to express concerns regarding misconduct[195]. Diversity and Inclusion - The company aims to have at least one female director on the board in the next fiscal year, currently having one female director among nine total[178]. - The company has a commitment to promoting gender diversity at all levels, currently having one female member in senior management[178]. - The board diversity policy includes various factors such as gender, age, race, and professional experience to enhance board efficiency[178]. Communication with Shareholders - The company encourages shareholders to actively monitor its performance through the release of interim reports and financial performance announcements[200]. - Shareholders are encouraged to participate in general meetings or appoint representatives to attend and vote on their behalf[200]. - The company maintains effective and transparent communication with shareholders during the reporting period[200].

Financial Performance - The company reported a consolidated profit of HK$XX million for the year, representing a YY% increase compared to the previous year[6]. - Total revenue exceeded RMB 1 billion, achieving a year-on-year increase of 24.1% to approximately RMB 1,001.2 million for the year ended December 31, 2024[31][44]. - Net profit reached RMB 118.66 million, representing a staggering 95% increase compared to the previous year[31]. - The Group's gross profit increased by approximately RMB62.1 million or 38.3% to approximately RMB224.2 million for the year ended 31 December 2024 from approximately RMB162.1 million for the year ended 31 December 2023[49]. - The gross profit margin improved from approximately 20.1% for the year ended 31 December 2023 to approximately 22.4% for the year ended 31 December 2024, attributed to economies of scale and the appreciation of USD against RMB[50]. User and Market Growth - User data showed a growth of ZZ% in active users, reaching a total of AA million users by the end of the reporting period[6]. - The company plans to expand its market presence in the Asia-Pacific region, targeting a market share increase of DD% over the next two years[6]. - The Group is focusing on expanding its customer base in European countries and the Americas to drive sustainable business growth[42]. - The Group aims to leverage market opportunities in aromatic products to drive continuous innovation and growth[37]. - The Group is actively expanding its customer base, including targeting new geographical markets such as the United States[122]. Strategic Initiatives - The company provided a future outlook, projecting a revenue growth of BB% for the next fiscal year, driven by new product launches and market expansion strategies[6]. - Investment in new product development increased by CC%, focusing on innovative technologies to enhance customer experience[6]. - A strategic acquisition was completed, enhancing the company's capabilities in the e-commerce sector, expected to contribute an additional EE million in revenue annually[6]. - The management highlighted a new marketing strategy aimed at increasing brand awareness, with a budget allocation of FF million for the upcoming year[6]. - The company is exploring partnerships with technology firms to leverage AI and data analytics, aiming for a competitive edge in the market[6]. Operational Efficiency - The company reported a significant improvement in operational efficiency, reducing costs by GG% through streamlined processes[6]. - Increased R&D investments and optimized supply chain management have ensured stable operations and cash flow for the Company[36]. - The production base in Vietnam has been constructed and put into operation, enhancing supply chain resilience[32]. - The balance of trade and other payables slightly decreased due to reduced payables from the completion of construction at the Wuhu Production Base[111]. Financial Management and Governance - The annual dividend policy has been maintained and optimized to reward investors[36]. - The statutory tax rate for Hong Kong profits tax is 8.25% on assessable profits up to HKD2,000,000 and 16.5% on any part of assessable profits over HKD2,000,000[76]. - The Group's income tax expense decreased by approximately RMB2.9 million or 17.3% to approximately RMB13.8 million for the year ended 31 December 2024 from approximately RMB16.7 million for the year ended 31 December 2023[79]. - The company has a strong governance structure with independent non-executive directors providing oversight and independent advice to the board[153]. - The company assessed the independence of all independent non-executive directors and confirmed their independence[197]. Assets and Liabilities - The net carrying amount of the Group's property, plant, and equipment increased by approximately RMB32.7 million during the year ended 31 December 2024, primarily due to construction costs capitalized for the WuHu Production Base[84]. - The Group's inventory balance increased by approximately RMB32.6 million or 47.5% from approximately RMB68.7 million as at 31 December 2023 to approximately RMB101.3 million as at 31 December 2024[88]. - Cash and cash in bank increased by approximately RMB171.7 million or 93.5% to approximately RMB355.5 million as at 31 December 2024 from approximately RMB183.8 million as at 31 December 2023[105]. - The balance of lease liabilities increased by approximately RMB 18.6 million to approximately RMB 19.7 million as of December 31, 2024, from approximately RMB 1.1 million as of December 31, 2023, due to new lease arrangements[113]. Management and Personnel - Mr. Tian has over 19 years of service in the group, overseeing financial and capital operations since 2004[137]. - Mr. Shao has extensive experience in business strategy formulation and was responsible for new product development at Guangzhou Shi Xinli Metal Limited from 2005 to 2015[141]. - Ms. Xu has over 10 years of experience in financial and local tax advisory services in the PRC and is a major shareholder of Ningbo Huihao Tax Agent Company Limited[154]. - The company’s board includes a chairman, two executive directors, one non-executive director, and three independent non-executive directors[196]. - The independent directors are responsible for ensuring compliance and governance standards are met within the organization[156].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 187,046 million, an increase of 5.8% compared to RMB 177,354 million in 2023[24] - Profit attributable to shareholders for the year was RMB 5,960 million, up from RMB 5,682 million in 2023, reflecting a growth of 4.9%[24] - Core profit before income tax expense was RMB 13,259 million, compared to RMB 13,101 million in 2023, indicating a year-on-year increase of 1.2%[24] - EBITDA for the year was RMB 17,640 million, slightly down from RMB 17,675 million in 2023[24] - The company reported a profit before income tax expense of RMB 12,635 million, a marginal increase from RMB 12,593 million in the previous year[24] - Net profit margin for 2024 is 5.08%, a decrease of 0.14% from 2023[28] - Return on total assets (ROA) improved to 6.63% in 2024, up from 6.55% in 2023[28] - Earnings per share (Basic) increased to 68.83 RMB cents in 2024, compared to 65.62 RMB cents in 2023[28] - Other net gains for the year were approximately RMB 1,520 million, up from RMB 903 million in 2023, primarily due to integration of gas stations and reduced exchange losses[98] Sales and Operations - Total natural gas sales volume was 54,170 million cubic meters, contributing to revenue of RMB 152,090 million from the natural gas sales business[6] - The company added 849,900 new users, bringing the cumulative total to 16,453,800 users across the country[6] - Sales volume of city gas reached 421 million cubic meters in 2024, an increase of 8.8% from 387 million cubic meters in 2023[33] - Total sales volume of natural gas reached 542 million cubic meters in 2024, a 9.9% increase from 493 million cubic meters in 2023[33] - The total number of city gas users exceeded 16.45 million, with retail volume increasing by 8.1% year-on-year and sales totaling 54.17 billion cubic meters[55] - Retail gas volumes in the northwestern and southwestern regions increased by 12% and 19.2%, respectively[59] - The total refueling volume for LNG ship refueling-at-sea business was 110,000 tonnes for the year, representing a year-on-year increase of 470%[59] Assets and Liabilities - Non-current assets totaled RMB 86,153 million, while current assets were RMB 57,237 million as of December 31, 2024[24] - The company’s net assets increased to RMB 88,835 million, up from RMB 85,783 million in 2023[24] - Total assets as of December 31, 2024, were approximately RMB 143,390 million, a decrease of RMB 129 million or 0.1% from RMB 143,519 million as of December 31, 2023[115] - The Group had total borrowings of RMB 23,462 million as of December 31, 2024, with significant repayments due within one year increasing to RMB 9,133 million from RMB 5,464 million last year[123] Cost Management - Average finance cost decreased to 2.90% in 2024 from 3.33% in 2023, reflecting improved financing conditions[28] - Employee compensation costs for the year were approximately RMB 5,830 million, a decrease of 2.4% from RMB 5,970 million last year, with employee compensation accounting for 3.12% of operating revenue[102] - Depreciation, depletion, and amortization for the year were approximately RMB 5,160 million, representing an increase of 3.4% compared to RMB 4,992 million last year[103] - Other selling, general, and administrative expenses for the year were approximately RMB 3,491 million, a decrease of 4.5% from RMB 3,656 million last year, due to strict cost control measures[104] - Interest expenses for the year were approximately RMB 803 million, representing a decrease of 16.4% compared to RMB 960 million last year, attributed to a reduction in average financing costs to 2.9% from 3.3%[111] Strategic Initiatives - In 2025, the company aims to enhance marketing strategies and focus on green and low-carbon development to seize opportunities presented by the central government[76] - The company plans to increase the proportion of retail gas volume to 73% or above and aims to put 10 new projects into production[81] - The company will accelerate the transformation of the "Natural Gas+" intelligent integrated energy service model, focusing on low-carbon and zero-carbon initiatives[82] - The company aims to achieve a target of over 15% for low-carbon and zero-carbon stations in its operations[84] - The company continues to focus on five major strategies: innovation, green, market, capital, and low cost, to enhance operational efficiency and market competitiveness[86] Governance and Management - The Company has complied with all code provisions in Part 2 of the Corporate Governance Code during the year, except for the absence of certain independent non-executive directors at meetings[159] - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[165] - The day-to-day management and operation of the Company are delegated to the Chief Executive Officer and senior management, with periodic reviews of delegated functions[168] - The Company has established clear directions regarding the powers of management and the circumstances under which management must report back to the Board[174] - The Board has a necessary balance of skills and experience appropriate to the business requirements, ensuring effective independent judgment[176] Workforce and Diversity - The Group employed 24,809 employees globally as of December 31, 2024, a decrease from 27,138 employees in the previous year[132] - As of December 31, 2024, the total number of employees was 24,809, with male employees constituting 68.3% and female employees 31.7%[198] - The Board consists of six male Directors and one female Director, indicating a gender diversity ratio of approximately 14.3% female representation[189] - The Company has adopted a Board Diversity Policy to ensure a balanced representation of skills, experience, and gender among Board members[190] - The Company maintains a commitment to gender diversity in its workforce, opposing any form of discrimination[200]