Financial Performance - Laekna, Inc. reported a revenue of $50 million for the fiscal year 2024, representing a 25% increase compared to the previous year[2]. - The company reported a significant increase in revenue, achieving a total of $500 million for the last quarter, representing a 25% year-over-year growth[1]. - The company anticipates a net profit margin of 10% for the fiscal year 2024, compared to a net loss of 5% in 2023[2]. - Other income increased by 128.7% from RMB 16.7 million in 2023 to RMB 38.2 million in 2024, primarily due to increased bank deposit interest income[50]. - Other losses decreased by 95.2% from RMB 6.3 million in 2023 to RMB 0.3 million in 2024, mainly due to a reduction in net foreign exchange losses[51]. - The company reported a net loss of RMB 254.3 million for the year, down from RMB 368.8 million in 2023[21]. - The total comprehensive loss for the year was RMB 242.9 million, compared to RMB 458.7 million in 2023[21]. Research and Development - The company has allocated $10 million for research and development of new oncology therapies in the upcoming fiscal year[4]. - The company plans to submit IND applications for LAE103 and LAE123 in Q2 and Q4 of 2025, respectively[15]. - The company is focused on strategic partnerships to accelerate the development and commercialization of its drug candidates to meet significant unmet medical needs[26]. - The company is actively expanding the indications for LAE002 (afuresertib) in other cancers, with ongoing clinical trials showing promising results in cervical and endometrial cancer patients[43]. - The company has established a comprehensive ActRII product portfolio, focusing on maximizing the development value of targeted ActRII receptor therapies[73]. Clinical Trials and Product Development - The company has initiated clinical trials for its new drug Afuresertib, targeting a market with an estimated value of $1 billion[5]. - LAE102, a monoclonal antibody targeting ActRIIA, is being developed for obesity treatment, with a Phase I SAD study completed in China involving 64 healthy participants[13]. - The Phase I SAD study showed encouraging safety and tolerability for LAE102, with no serious adverse events reported and most treatment-related adverse events being mild[13]. - The Phase III clinical trial AFFIRM-205 for LAE002 (afuresertib) commenced in China in May 2024, targeting HR+/HER2–LA/mBC patients[17]. - The company aims to complete subject recruitment for the AFFIRM-205 trial by Q4 2025 and submit a New Drug Application (NDA) to the CDE in H1 2026[17]. - The company plans to initiate a Phase I MAD study in March 2025 in China, involving 60 overweight/obese participants to further assess LAE102's safety and pharmacokinetics[14]. Market Expansion and Strategy - Laekna, Inc. plans to expand its market presence in Asia, aiming for a 30% increase in market share by 2025[6]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[7]. - The company is exploring potential combination therapy opportunities between existing approved drugs and traditional therapies[74]. - The global obesity patient population is expected to exceed 1.21 billion by 2030, highlighting significant market opportunities in obesity and cancer treatment[27]. Financial Management and Corporate Governance - The company has a disciplined financial strategy to maintain a healthy financial status and stable cash flow amid a challenging macroeconomic environment[70]. - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure[194]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications of its board members[103]. - The company has adopted a board diversity policy to enhance competitive advantage and ensure a balanced composition of the board[200]. Employee and Management - The company has a strong management team with members holding various qualifications, including CPA and CFA certifications[99]. - The company has been expanding its leadership team with experienced professionals from reputable financial institutions[95][96]. - The group has 86 employees, emphasizing the importance of personal development and stable employee relations without any significant labor disputes[169]. Shareholder and Equity Information - The total number of issued shares is 407,736,350, with Dr. Lu holding 33,739,390 shares, representing 8.27% of the company's equity[130]. - Major shareholders include OrbiMed Asia Partners III, L.P. with 49,148,000 shares, accounting for 12.05% of the company's equity[134]. - The company has not issued any stock options under the pre-IPO or post-IPO stock option plans during the reporting period[162].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 707,629,000, representing a 1.7% increase from RMB 695,949,000 in 2023[8] - Gross profit for the same period was RMB 89,622,000, up 2.3% from RMB 87,641,000 in 2023[8] - The company experienced a decline in profit before tax, which was RMB 13,831,000, down 5.7% from RMB 14,671,000 in 2023[8] - Net profit for the year was RMB 12,372,000, a decrease of 13.0% compared to RMB 14,224,000 in the previous year[8] - Revenue from IDC solutions decreased by 2.2% to RMB 658.7 million, compared to RMB 673.8 million in the previous year[26] - Revenue from edge computing services surged by 170.7% to RMB 49.0 million, up from RMB 18.1 million in the previous year, with the number of customers increasing from 16 to 25[28] - Overall gross profit increased by 2.3% to RMB 89.6 million, with a slight increase in gross margin from 12.6% to 12.7%[34] - Gross margin for edge computing services improved to 27.3%, up from 20.4% in the previous year, attributed to technological advancements and entry into emerging markets[36] - Other income and gains rose significantly to RMB 9.4 million, compared to RMB 1.3 million in the previous year, mainly due to increased government subsidies and interest income[37] - The total employee benefits expenses, including salaries for directors and senior management, amounted to RMB 33.7 million for the reporting period, compared to RMB 25.6 million as of December 31, 2023[58] - The group reported that transactions with its top five customers accounted for 71.2% of total revenue during the reporting period, up from 67.3% for the year ending December 31, 2023[101] - The single largest customer contributed 22.2% of total revenue, compared to 20.9% for the year ending December 31, 2023[101] Product Development and Services - The company launched a new product, EdgeGlobalCDN service, aimed at enhancing overseas edge network services[9] - The EdgeAIStation service was introduced to integrate distributed heterogeneous computing resources for AI training and scientific computing[9] - The company achieved a 4.8 times increase in the overall capacity of its EdgeCDN platform to meet growing business demands[11] - The EdgeCDN network's overall capacity increased by 4.8 times compared to 2023, successfully supporting significant business demands from leading platform customers[16] - The launch of EdgeGlobalCDN service marks a significant step in the company's internationalization strategy, enhancing global network acceleration capabilities[17] - The EdgeAIStation service was officially launched, providing diverse heterogeneous cloud computing services for machine learning and high-performance computing[20] - The company aims to integrate AI capabilities into edge computing applications, enhancing its business development across CDN, AIoT, and computing platforms[21] - The company has signed over 20 contracts for EdgeAIoT services in various sectors, including smart city management and intelligent transportation[19] Strategic Initiatives and Partnerships - The company signed a cooperation agreement to build a green computing zero-carbon industrial park with local government[13] - A strategic partnership with national ministries is being formed to create a national-level public service platform for large AI models, enhancing computational power offerings[22] - The company plans to cover over 1,000 cities nationwide by 2025 and expand into Southeast Asia, the Middle East, and Europe and the United States markets[23] Financial Position and Assets - The total assets increased to RMB 911,406,000 in 2024 from RMB 501,741,000 in 2023, reflecting significant growth[8] - Trade receivables increased by 18.9% to RMB 235.0 million, compared to RMB 197.6 million in the previous year, reflecting business growth[46] - Prepayments and other receivables surged by 468.4% to RMB 216.0 million, up from RMB 38.0 million in the previous year, primarily due to prepayments related to bandwidth and other resources[47] - As of December 31, 2024, the group's cash and cash equivalents increased by 128.6% to RMB 371.0 million from RMB 162.3 million as of December 31, 2023[52] - The group's debt-to-equity ratio as of December 31, 2024, was 0.6, a significant decrease from 3.1 as of December 31, 2023[56] Management and Governance - The company has a strong management team with diverse backgrounds in finance, law, and technology[78] - The company aims to enhance its financial management and compliance through the expertise of its newly appointed directors[79] - The management team is committed to expanding the company's market presence and exploring new strategies for growth[81] - The board of directors includes experienced professionals with a proven track record in their respective fields[78] - The company has adhered to the corporate governance code, with a commitment to maintaining high standards of corporate governance[179] - The audit committee consists of three independent non-executive directors, with one member possessing appropriate professional qualifications and financial management expertise[199] Risks and Compliance - The group faces several risks, including potential demand slowdown for IDC solutions and reliance on major telecom operators for network services[99] - The company has established strong long-term relationships with key customers, focusing on improving customer experience and reducing complaints[104] - The company faces potential risks from third-party data center agreements that may be terminated early, which could significantly impact operations[105] - The company has taken measures to monitor regulatory developments and reduce risks associated with contractual arrangements[153] - The company is subject to regulatory compliance regarding its contractual arrangements, ensuring fairness and alignment with shareholder interests[163] Shareholder and Investment Information - The group did not propose any final dividends for the reporting period, consistent with the previous year[63] - The company has retained zero profit as distributable reserves for shareholders during the reporting period[111] - The company will continue to explore investment opportunities that are beneficial to shareholders[62] - The company has not entered into any significant contracts with its controlling shareholders or their subsidiaries during the reporting period[167] Charitable Contributions and ESG - The total amount of charitable and other donations made by the group during the reporting period was RMB 87,500[168] - The group emphasized the importance of integrating ESG principles into daily operations for long-term development[96] - The company is committed to environmental protection and resource conservation, adhering to relevant environmental laws and regulations in China[95]

Financial Performance - For the year ended December 31, 2024, the Group recorded revenue of approximately RMB1,060,309,000, representing a decrease of 7.9% compared to 2023[11]. - Profit attributable to owners of the parent was approximately RMB564,940,000, an increase of 73.3% compared to 2023[11]. - The profit included a net gain of RMB277,627,000 from the disposal of a 35% equity interest in AD Pharmaceuticals Co., Ltd.[12]. - Excluding non-recurring profits, the operating profit attributable to owners of the parent amounted to approximately RMB201,717,000, a decrease of 19.3% compared to 2023[12]. - The decrease in operating profit was mainly due to reduced sales of the "An" series products impacted by national centralized procurement[12]. - High production costs and inventory provision of RMB43,880,000 were recorded, compared to RMB10,936,000 in 2023[12]. - Losses from the bulk medicine and intermediate segment amounted to RMB60,975,000, compared to a loss of RMB32,692,000 in 2023[12]. - Total sales revenue declined by 7.9% compared to the same period in 2023, constrained by pricing pressures despite an increase in sales volume[28]. - The segment profit from the finished drugs segment was approximately RMB425,211,000, a decrease of RMB62,066,000 compared to RMB487,277,000 in 2023, mainly due to centralized procurement impacts[86]. - Gross profit was approximately RMB577,628,000, a decrease of RMB63,891,000 or 10.0%, with a gross profit margin of 54.5%, down 1.2 percentage points from the previous year[78]. Dividends - The Board recommends a final dividend of HK$0.048 per share for the year ended December 31, 2024, totaling approximately HK$72,091,000, a decrease from HK$97,516,000 in 2023[16]. - A special dividend of HK$0.032 per share is proposed, totaling approximately HK$48,061,000, subject to shareholder approval at the 2025 AGM[17]. - The total annual dividend distribution will be HK$0.095 per share, representing an 18.8% year-on-year increase from HK$0.080 in 2023[18]. - The annual dividend payout ratio is approximately 23.5%, slightly below the company's policy of at least 25% due to a one-time book gain of approximately RMB366,919,000 in 2024[18]. Market Challenges and Strategies - The Group's financial results reflect challenges in both domestic and overseas markets due to regulatory changes and operational adjustments[12]. - Future strategies may focus on improving production efficiency and expanding market presence to mitigate the impact of centralized procurement[12]. - The Group's sales volume for certain products decreased due to unsuccessful bids in national centralized procurement, while other categories like Atorvastatin Calcium Tablets and Entecavir Dispersible Tablets saw growth[28]. - The Group plans to increase R&D investment focusing on chronic diseases, antiviral, and antimicrobial fields, while also exploring anti-aging and nutritional health domains[36]. - The Group aims to enhance production efficiency through smart manufacturing and lean production to optimize cost structures[36]. - The Group will expand market channels by leveraging e-commerce platforms and exploring international markets to increase product coverage[36]. Research and Development - Approximately 60% of the ongoing R&D projects are self-developed, with a new PhD appointed as the head of the R&D team to optimize project management and enhance efficiency[31]. - The Suzhou Dawnrays Advanced Technology Research Institute has about 60% of its products under development as self-developed projects, focusing on generics and innovative drugs[29]. - The Group's R&D platform, Suzhou Dongrui Advanced Technology Research Institute, will continue to optimize talent structure and enhance technical capabilities, with a focus on increasing the proportion of independent R&D[59]. - The Group plans to increase R&D investment to diversify its product pipeline and aims to launch new products annually to drive future growth[56]. Production and Sales - The Group achieved a 22.5% increase in the production volume of intermediates and bulk medicines compared to 2023, and a 49.3% increase in the production volume of cephalosporin powder for injection[41]. - The sales volume of "Xianshu" (Cefoperazone Sodium and Sulbactam Sodium for Injection: (1:1)) increased by 21.3%, and the sales amount increased by 42.9% compared to the same period in 2023[44]. - The bulk medicine base in Suzhou obtained commercial production qualification, with primary products achieving commercial sales, enhancing the Group's market share in intermediates and bulk medicines[55]. - The sales volume of the antibiotic injection products has shown a steady recovery, with key products winning bids in national centralized procurement[54]. Governance and Compliance - The Board of Directors is composed of a balanced mix of executive and independent non-executive directors, ensuring strong governance and independent judgment[138][140]. - The Company has complied with the Corporate Governance Code, with the exception of two independent directors who could not attend the annual general meeting due to other commitments[135][136]. - The Company has mechanisms to ensure independent views from directors are conveyed to enhance decision-making[141]. - The governance framework is reviewed annually by the Board to ensure its effectiveness[141]. - The Company ensures that all Directors are properly briefed on issues arising at board meetings[167]. Financial Position and Cash Flow - The Group's cash and bank balances were approximately RMB1,158,261,000 as of December 31, 2024, an increase from RMB905,826,000 in the previous year[98]. - Net cash inflows from operating activities were approximately RMB220,200,000, down from RMB338,400,000 in 2023[98]. - The Group recorded net cash inflows from investing activities of approximately RMB205,170,000, compared to net cash outflows of RMB387,573,000 in the previous year[98]. - The Group's interest-bearing bank and other borrowings decreased to RMB29,864,000 as of December 31, 2024, from RMB120,060,000 in 2023, resulting in a debt ratio of 0.7% compared to 3.3% in the previous year[102]. Employee and Operational Management - As of December 31, 2024, the Group employed approximately 1,183 employees, an increase from 1,143 in 2023, with total remuneration of approximately RMB 230,667,000, up from RMB 211,780,000 in 2023, primarily due to staff increase and salary adjustments[120][123]. - The management is responsible for supplying the Board with monthly updates and adequate information for informed decision-making[166]. - Directors have independent access to management for further inquiries if needed[166]. Risk Management - The Group's risk management framework includes identifying significant risks, developing measures to mitigate them, and monitoring their effectiveness[180]. - The internal audit department continuously reviews major operational and financial controls, reporting directly to the Chairman of the Board and the Audit Committee[183]. - The Group has integrated its risk management systems into core operating practices, with business units assessing potential risks to achieve their objectives[182].

Production and Capacity - By the end of the reporting period, China Shengmu owned 34 farms with a total of 144,000 dairy cows and a daily fresh milk production of approximately 2,015 tonnes, achieving an annual production capacity of 600,000 tonnes of ecological organic raw milk[4]. - As of December 31, 2024, the Group owned 144,448 cows, including 62,842 milkable cows, and sold a total of 699,803 tonnes of raw milk, representing a slight decrease of 1.6% year-on-year[25][26]. - The Group produced 2,015 tonnes of raw fresh milk per day in 2024, with 21 organic certified farms contributing 1,534 tonnes per day[52][55]. - The Group's herd size increased by 5.7% to 156,481 cows as of December 31, 2024[53][56]. - The average milk yield per milkable cow reached 12.05 tonnes in 2024, representing a year-on-year increase of 0.67 tonnes[58]. Financial Performance - Revenue for the year was RMB 3,126.2 million, reflecting a year-on-year decrease of 7.6% due to declining raw milk prices[25][26]. - The total sales revenue for 2024 was RMB 3,126.2 million, representing a year-on-year decrease of 7.6% from RMB 3,383.6 million in 2023[90]. - The gross profit for 2024 was RMB 925.9 million, down from RMB 1,025.0 million in 2023, with a gross profit margin of 29.6% compared to 30.3% in the previous year[94]. - The average sales price of the Group's comprehensive raw milk was RMB 4.47/kg, reflecting a year-on-year decrease of RMB 0.29/kg[63]. - The loss attributable to owners of the parent company was RMB 65.5 million in 2024, a decrease of RMB 151.6 million compared to a profit of RMB 86.1 million in 2023[121]. Cost Management - The cost of sales per kilogram of milk decreased by 5.2% year-on-year, benefiting from lower feed prices and internal cost control measures[25][26]. - The sales cost per kilogram of milk in 2024 was RMB 3.14/kg, with feed costs at RMB 2.54/kg, representing a year-on-year decrease of RMB 0.11/kg[64]. - Administrative expenses decreased by 8.3% year-on-year to RMB 152.6 million in 2024, accounting for 4.88% of sales revenue[105]. - Selling and distribution expenses decreased by 21.8% to RMB 49.1 million from RMB 62.7 million in 2023 due to cost optimization strategies[100]. Sustainability and Ecological Initiatives - The company has transformed 350,000 mu of desert into high-quality pasture and planted over 98 million sand-fixing trees, creating a robust ecological environment[3]. - China Shengmu's end-user brand organic milk won the Gold Award at the 17th Asia International Organic Product Expo, highlighting its commitment to sustainable practices[6]. - The company has built 11 reservoirs, 9 organic manure fermentation plants, and 1 bio-organic fertilizer processing plant to support its ecological initiatives[3]. - The Group's unique ecological model integrates desert governance with the organic dairy industry, contributing to sustainable development[79]. - The Group was recognized by the United Nations Global Compact for its best practices in "Sustainable Production and Consumption"[6]. Market Trends and Industry Challenges - The dairy industry in China is experiencing increased concentration, with small and medium-sized farms being phased out, leading to a dominance of large-scale and standardized farms[21]. - The supply-demand situation in the industry remains severe, but the Group maintains a firm belief in refining management and aligning with government strategies[156]. - In 2024, China's total raw milk production was 40.79 million tonnes, a year-on-year decrease of 2.8%, marking the first decline since 2018[49][50]. - The average price of raw fresh milk in primary producing regions was RMB 3.11/kg by the end of December 2024, a decrease of 15.0% compared to the previous year[49][50]. Strategic Focus and Future Outlook - Looking forward to 2025, the Group anticipates improved consumption growth in dairy products, supported by government initiatives to boost consumption[33]. - The Group's strategic focus includes sustainable development and enhancing corporate value amidst industry challenges[28][30]. - The Group aims to ensure the growth of Mengniu's Deluxe Desert Organic business with high quality as a core business goal for 2025[156]. - The Group will focus on comprehensive cost control, efficiency improvement, environmental protection upgrading, and water resource guarantee to achieve operational breakthroughs[156]. Debt and Financing - The gearing ratio was maintained at 50.7%, with a credit facility of RMB 10 billion, ensuring solid liquidity[28][30]. - The proportion of long-term loans increased to 57.3% in 2024, up from 51.4% in 2022[38]. - The annual average financing rate decreased to 2.44% in 2023 from 2.67% in 2022[40]. - The Group maintained a credit limit of RMB 10 billion in 2024, with a stable credit utilization rate of less than 30%[124]. Employee and Operational Efficiency - The Group's total employee costs decreased to RMB 326.8 million in 2024 from RMB 377.4 million in 2023, despite a reduction in total employees from 2,701 to 2,217[84]. - The Group's refined cost management and risk governance capabilities were enhanced through its digitalization efforts[74]. - The Group's "Cow Identification + AI Model Algorithm" and the industry-level "Cow Milk Calibration Model" achieved over 95% accuracy, enhancing individual cow efficiency management[74]. Awards and Recognition - The Group's organic products won the Gold Award at the Asian Organic Expo, reinforcing its commitment to high-quality organic practices[73]. - The Group achieved 100% ESG disclosure for three consecutive years and received a comprehensive "B-level" certification from the Carbon Disclosure Project (CDP) in climate change, water security, and forest risk[79]. - The Group's Electronic Records Management System won the "Digital Intelligence Pioneer Product - Best Practice Award," accelerating its digital transformation[74].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 98,580, a decrease of 77.7% compared to RMB 440,550 in 2023[18] - Gross loss for 2024 was RMB (456), compared to a gross profit of RMB 83,827 in 2023[18] - Loss before tax for 2024 was RMB (70,426), a significant decline from a profit of RMB 34,456 in 2023[18] - Loss attributable to owners of the parent for 2024 was RMB (77,527), compared to a profit of RMB 25,493 in 2023[18] - The Group's revenue decreased by approximately 77.6% from approximately RMB440.6 million in 2023 to approximately RMB98.6 million in 2024[22] - The adjusted net loss was approximately RMB64.0 million in 2024, compared to an adjusted net profit of approximately RMB36.0 million in 2023[22] - The Group's net loss was approximately RMB77.5 million in 2024, compared to a net profit of approximately RMB25.5 million in 2023[40] - The Group's gross (loss)/profit decreased from approximately RMB83.8 million in 2023 to approximately RMB(0.5) million in 2024[40] - The Group's adjusted net loss in 2024 was approximately RMB64.0 million, compared to an adjusted net profit of approximately RMB36.0 million in 2023[102] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 252,053, down from RMB 350,769 in 2023[18] - Total equity decreased to RMB 205,437 in 2024 from RMB 268,377 in 2023, reflecting a decline of 23.4%[18] - Current liabilities decreased to RMB 46,391 in 2024 from RMB 81,465 in 2023, a reduction of 43.0%[18] - Non-current assets decreased to RMB 16,236 in 2024 from RMB 28,147 in 2023, a decline of 42.4%[18] - Total liabilities decreased to RMB 46,616 in 2024 from RMB 82,392 in 2023, a reduction of 43.4%[18] Revenue Breakdown - Revenue from data transmission and processing services for IoT applications decreased by approximately 80.8%, from approximately RMB380.3 million in 2023 to approximately RMB73.2 million in 2024[23] - Non-5G business revenue decreased by approximately 81.7% from approximately RMB350.7 million in 2023 to approximately RMB64.2 million in 2024[39] - The Group's 5G business revenue decreased from approximately RMB89.9 million in 2023 to RMB34.3 million in 2024[39] - Revenue from sales of telecommunication equipment decreased by approximately 56.4% from approximately RMB58.2 million in 2023 to approximately RMB25.4 million in 2024[64] - Revenue from data transmission and processing services decreased by approximately 80.8% from approximately RMB380.3 million in 2023 to approximately RMB73.2 million in 2024[85] - Non-5G network services revenue decreased by approximately 81.2% from approximately RMB342.3 million in 2023 to approximately RMB64.2 million in 2024[61] - Sales of 5G telecommunication equipment decreased by approximately 51.0% from approximately RMB51.8 million in 2023 to approximately RMB25.4 million in 2024[64] Operational Strategies - The decrease in revenue for 2024 was mainly due to clients delaying projects due to cash flow concerns and macroeconomic uncertainty[36] - The Group plans to strengthen independent research and development capabilities and actively study advanced technologies in the 5G era[26] - The Group aims to implement effective operational management policies and cost control measures to promote sustainable business development[26] - The Group plans to diversify its 5G private network industrial customers to include advanced manufacturing, transportation, environmental protection, and energy industries[46] - The Group will upgrade its industry data platform to incorporate AI and big data, extending its functions to cover industrial IoT applications[47] - The Group aims to strengthen risk management and control, enhance efforts to collect trade receivables, and ensure sufficient cash flow for operations[48] Innovation and Development - As of December 31, 2024, the Group had successfully registered 30 utility model patents, 23 patents for invention, one international PCT, and 90 copyrights in the PRC[73] - The Group's one-stop solution and diversified product portfolio are expected to help it stand out in the competitive IoT market[54] - R&D expenses increased by 40.3% from approximately RMB9.6 million in 2023 to approximately RMB13.5 million in 2024[93] - The Group's impairment losses on financial assets increased by approximately 194.2% from approximately RMB10.0 million in 2023 to approximately RMB29.4 million in 2024[96] Cash Flow and Financing - Cash and cash equivalents decreased from approximately RMB33.2 million as of December 31, 2023, to approximately RMB4.1 million as of December 31, 2024, primarily due to net cash used in operating activities of approximately RMB27.0 million[108] - Net cash flow used in operating activities was approximately RMB27.0 million in 2024, compared to approximately RMB39.5 million in 2023[122] - Net cash flow from investing activities amounted to approximately RMB5.7 million in 2024, down from approximately RMB50.4 million in 2023[123] - The net cash flow used in financing activities was approximately RMB2.2 million in 2024, compared to RMB33.0 million in 2023, primarily due to the repayment of bank loans amounting to RMB5.0 million[128] Market Outlook - The IoT market in China is expected to grow at a CAGR of approximately 13.3% from 2021 to 2026, reaching approximately RMB 5,466.0 billion in 2026[49] - The 5G-based IoT market is projected to grow at a CAGR of approximately 62.2% from 2021 to 2026, reaching approximately RMB 491.9 billion in 2026[49] - The private 5G network market in China is expected to reach approximately RMB 236.1 billion in 2026, with a CAGR of approximately 108.2% from 2021 to 2026[49] Leadership and Corporate Governance - The Group's CEO, Mr. Ray Chan, has a global audience of 200 million across various social media channels, including 56 million on Instagram and 40 million on Facebook[139] - Mr. Kevin Kwong has successfully driven the group's transition from Web2 to Web3, significantly enhancing business performance during his tenure at 9GAG[158] - The leadership team has over 20 years of experience in their respective fields, with expertise spanning traditional finance, centralized finance, and decentralized finance[161] - The Company aims to enhance investor relations and corporate governance functions under the leadership of Mr. Tony Liu[187] - The Company has expanded its senior management team to include experienced professionals with backgrounds in finance and investment banking[185] Company Background - The Company was incorporated in the Cayman Islands on August 25, 2021, and listed on the Main Board of the Stock Exchange on December 12, 2022, issuing 36,000,000 Shares at an offer price of HK$2.73 per Share, resulting in net proceeds of approximately HK$47.1 million[191] - The Group is a PRC provider of data transmission and processing services for IoT applications and telecommunication equipment, serving a broad range of industrial customers[193] - The Group generates revenue primarily from customized data transmission and processing services, with additional income from telecommunication equipment maintenance and consulting services[198]

Financial Performance - The company achieved a revenue of RMB 4.31 billion in 2024, maintaining a record of positive same-store sales growth for 30 consecutive quarters[10]. - Total revenue for the fiscal year ended December 31, 2024, was RMB 4,314.1 million, an increase of 41.4% compared to RMB 3,050.7 million in 2023[22]. - The adjusted net profit for 2024 was RMB 1.312 billion, marking the first year of positive after-tax reported net profit[10]. - The adjusted net profit for the fiscal year was RMB 131.2 million, a significant increase of 1,394.2% from RMB 8.8 million in 2023[22]. - Net profit for FY2024 was RMB 55.2 million, compared to a net loss of RMB 26.6 million in FY2023[52]. - The adjusted EBITDA for 2024 was RMB 495.16 million, up from RMB 301.74 million in 2023, reflecting a growth of 64.2%[59]. - The adjusted EBITDA margin improved to 11.5% in 2024, compared to 9.9% in 2023[59]. - Store-level EBITDA reached RMB 831.37 million in 2024, an increase from RMB 576.62 million in 2023, representing a growth of 44.1%[61]. - The store-level EBITDA margin was 19.3% in 2024, slightly up from 18.9% in 2023[61]. Store Expansion - A total of 240 new stores were opened in 2024, bringing the total to 1,008 stores across 39 cities by December 31, 2024[11]. - The company plans to open approximately 300 new stores in 2025, with 82 already opened and 26 under construction as of March 14, 2025[13]. - The number of cities entered increased to 39 as of December 31, 2024, up from 29 in the previous year[18]. - The company opened 240 new stores during the reporting period, bringing the total to 1,008 stores by the end of the year, with 371 located in Shanghai and Beijing, and 637 in new growth markets[24]. Membership Growth - The membership program grew from 14.6 million at the end of 2023 to 24.5 million by December 31, 2024, adding nearly 10 million new members in one year[12]. - Membership numbers grew to 24.5 million, up from 19.4 million in the previous year[20]. - Membership increased from 14.6 million as of December 31, 2023, to 24.5 million as of December 31, 2024, with member contributions to total revenue rising from 59.2% to 64.5%[27]. Operational Efficiency - The average payback period for the 80 new stores opened in 18 new cities from December 2023 to December 2024 was within 12 months[11]. - Same-store sales growth for the fiscal year was 2.5%, compared to 8.9% in the previous year[19]. - EBITDA at the store level reached RMB 831.4 million, up 44.2% from RMB 576.6 million in the previous year[22]. - The EBITDA margin at the store level improved to 19.3%, an increase of 0.4 percentage points from 18.9%[22]. - The operating profit margin at the store level improved to 14.5%, an increase of 0.7 percentage points from 13.8%[22]. Cost Management - Raw material and supply costs increased by 39.8% to RMB 1,169.8 million, but the percentage of these costs to revenue decreased from 27.4% to 27.1%[36]. - Employee compensation expenses rose by 28.1% to RMB 1,509.5 million, compared to RMB 1,178.7 million in the fiscal year 2023[38]. - Rent expenses rose to RMB 428.2 million in FY2024, a 39.2% increase from RMB 307.7 million in FY2023, while rent expenses as a percentage of revenue decreased from 10.1% to 9.9%[41]. - Utilities expenses rose to RMB 164.1 million in FY2024, a 42.9% increase from RMB 114.8 million in FY2023, with utilities expenses as a percentage of revenue remaining stable[44]. - Advertising and promotion expenses increased to RMB 217.6 million in FY2024, a 36.7% increase from RMB 159.2 million in FY2023, while the percentage of total revenue decreased from 5.2% to 5.0%[46]. Employee Growth - As of December 31, 2024, the total number of full-time employees is 9,160, an increase of 40.0% from 6,536 on December 31, 2023[75]. - The total employee cost for the fiscal year 2024 is RMB 1,509.5 million, up from RMB 1,178.7 million in 2023, representing a year-over-year increase of 28.1%[76]. - The company has 19,640 part-time employees as of December 31, 2024, compared to 15,635 on December 31, 2023, indicating a growth of 25.0%[75]. Awards and Recognition - The company received several awards in 2024, including the Best Digitalization Award and the title of Best Employer from Mercer[12]. - The company received the "2024 Best Employer" award from Mercer, marking the third consecutive year of this recognition[77]. Corporate Governance - The board did not recommend the distribution of a final dividend for the 2024 fiscal year, similar to 2023[101]. - The company has no pledged assets or contingent liabilities as of December 31, 2024[72][73]. - The company has not entered into any derivative instruments to hedge foreign exchange risks but will monitor the situation closely[74]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2024[71]. Future Plans and Investments - The company has not made or held any significant investments during the fiscal year 2024[70]. - The company has no significant future investment or capital asset plans beyond what is disclosed in the management discussion and analysis section[80]. - The expected timeline for utilizing the net proceeds for store expansion has been extended from the end of 2025 to the end of 2026[191]. Social Responsibility - The company is committed to social responsibility, employee welfare, environmental protection, and community contributions[197]. - The company made charitable donations in the form of food, amounting to approximately RMB 22,300 during the reporting period[198]. - There are no significant lawsuits or claims threatening the company or its subsidiaries as of December 31, 2024[199]. - The company has complied with all relevant laws and regulations without any significant violations during the reporting period[200].

Financial Performance - The company's revenue for 2024 reached RMB 1,790,774 thousand, representing a year-on-year growth of 50.2%[15] - The adjusted net loss for 2024 was RMB 64,331 thousand, a decrease of 294.6% compared to the previous year[16] - Gross profit for 2024 was RMB 127,689 thousand, with a gross margin of 7.1%[8] - Total revenue for the reporting period was approximately RMB 1,790,774 thousand, representing a year-on-year growth of about 50.2% compared to RMB 1,192,040 thousand in the same period last year[32] - The significant revenue increase was primarily driven by business expansion and enhanced reputation among existing and potential clients, along with a substantial rise in revenue from Douyin business[32] - The overall gross profit for the company was approximately RMB 127,689 thousand, reflecting an increase of about 8.4% year-on-year from RMB 117,846 thousand in the same period of 2023[39] - The company's net loss for the reporting period was RMB 185,572 thousand, a decline of about 661.4% compared to a net profit of RMB 33,055 thousand in the same period of 2023[48] Assets and Liabilities - The total assets increased to RMB 838,450 thousand in 2024, up from RMB 775,029 thousand in 2023[12] - The total liabilities rose to RMB 356,045 thousand in 2024, compared to RMB 197,013 thousand in 2023[12] - The liquidity ratio for 2024 was 2.1, down from 2.9 in 2023, indicating a decrease in short-term financial health[12] - Total equity as of December 31, 2024, was RMB 482,405 thousand, down from RMB 578,016 thousand as of December 31, 2023[52] - Current assets increased to RMB 744,963 thousand as of December 31, 2024, compared to RMB 579,342 thousand in 2023, primarily due to an increase in accounts receivable[53] Operational Strategy - The company plans to enhance its focus on large clients and optimize operational capabilities to reduce customer acquisition costs in 2025[19] - The collaboration with the Douyin platform has been deepened to help clients lower customer acquisition costs and achieve multi-channel sales growth[17] - The company aims to leverage short videos, live streaming, and influencer distribution to boost client sales in the upcoming year[19] - The company focuses on new consumer verticals and integrated marketing services, which include content marketing, digital marketing, public relations planning, media advertising, and SaaS interactive marketing capabilities[24] - The company aims to leverage AI technology to empower full-chain marketing, enhancing both marketing and capital capabilities[30] Expenses and Costs - The cost of sales for the reporting period was approximately RMB 1,663,085 thousand, an increase of about 54.8% year-on-year from RMB 1,074,194 thousand in the same period of 2023[34] - Sales and marketing expenses amounted to approximately RMB 53,109 thousand, a significant increase of about 741.8% year-on-year from RMB 6,309 thousand in the same period of 2023[40] - The provision for impairment losses on accounts receivable and other financial assets was approximately RMB 128,837 thousand, a year-on-year increase of about 96.4% from RMB 65,607 thousand in the same period of 2023[42] - Other income for the reporting period was approximately RMB 7,749 thousand, a decrease of about 26.4% year-on-year from RMB 10,528 thousand in the same period of 2023[43] Management and Governance - The management team is experienced, with the founder and chairman having over 15 years of experience in the marketing industry[31] - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight[112] - The board consists of nine members, including four executive directors, one non-executive director, and four independent non-executive directors, with a gender composition of five female and four male directors[161] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[176] - The audit committee is chaired by an independent non-executive director with appropriate professional qualifications[177] Share Capital and Fundraising - A total of 400,000,000 shares were offered at HKD 0.15 per share, representing a discount of approximately 34.50% from the market price at the time of the underwriting agreement[65] - The net proceeds from the fundraising activities amounted to approximately HKD 267.30 million, with 19.3% (approximately HKD 51.6 million) reallocated for establishing a joint venture[63] - The company plans to allocate 14.7% (approximately HKD 39.2 million) of the net proceeds to enhance the development of its SaaS interactive marketing platform[64] - The company announced a share consolidation, merging every 20 existing shares into 1 new share, which will increase the authorized share capital from HKD 1,000,000 to HKD 2,000,000[71] Corporate Social Responsibility - The company is committed to social responsibility, promoting employee welfare, and sustainable growth through environmental protection measures[107] - The company has implemented measures to reduce its environmental impact, such as energy conservation and promoting paperless operations[107] - The company is committed to creating effective and sustainable benefits for local communities through initiatives such as corporate philanthropy and employee volunteer work[157] Risks and Compliance - The company faces significant risks including reliance on clients from the fast-moving consumer goods, footwear, and real estate sectors, which could impact operations[110] - The company has implemented various policies and systems to ensure compliance with anti-corruption and anti-money laundering regulations[190] - The board is responsible for risk management and internal control systems, which are reviewed annually for effectiveness[187] Employee and Director Information - As of December 31, 2023, the company had a total of 131 employees, emphasizing the importance of attracting and retaining qualified personnel[62] - The total employee cost for the reporting period was RMB 25,917,000, an increase from RMB 22,643,000 in the same period last year, primarily due to fluctuations in employee numbers[62] - The total remuneration paid to directors was approximately RMB 4,182 thousand[180] - The total remuneration for the five highest-paid individuals (excluding directors) was approximately RMB 1,330 thousand for the same fiscal year[180]

Financial Performance - For the year ended 31 December 2024, the Group reported revenue of RMB 40,770,075, representing a 94.5% increase compared to RMB 20,960,968 in 2023[18]. - Gross profit for the same period was RMB 6,235,537, which is a 137.0% increase from RMB 2,630,992 in 2023[18]. - The loss attributable to owners of the parent decreased slightly to RMB (7,863,349) from RMB (7,991,050), reflecting a 1.6% improvement[18]. - The Group recorded a loss attributable to owners of the parent of approximately RMB 7.863 billion due to impairment provisions and fair value losses on investment properties[29][32]. - The Group achieved recognised property sales income of approximately RMB 38.843 billion in 2024, representing a year-on-year increase of approximately 103.4%[68]. - The average selling price of properties rose to RMB 14,907 per sq.m. in 2024, reflecting a significant year-on-year increase of approximately 82.8%[68]. - The total revenue for 2024 increased by approximately 94.5% to approximately RMB 40.770 billion from approximately RMB 20.961 billion in 2023[80]. - Property management fees increased by approximately 3.2% to approximately RMB 1.202 billion in 2024, driven by an increase in the number and floor area of properties under management[82]. - Rental income grew by approximately 9.2% to approximately RMB 578.634 million in 2024, mainly due to contributions from newly opened shopping malls[83]. Assets and Liabilities - Total assets as of 31 December 2024 were RMB 128,285,226, down 23.6% from RMB 167,889,687 in 2023[20]. - Cash and bank balances decreased by 37.3% to RMB 4,045,017 from RMB 6,448,926 in 2023[20]. - Total liabilities decreased by 20.1% to RMB (117,715,353) from RMB (147,407,361) in 2023[20]. - Total equity fell by 48.4% to RMB 10,569,873 compared to RMB 20,482,326 in 2023[20]. - The Group's total assets pledged to secure bank and other borrowings and domestic bonds amounted to RMB 63,437,677,000 in 2024, slightly down from RMB 63,579,208,000 in 2023[121]. - Total borrowings as of December 31, 2024, amounted to RMB 35,418,566,000, a slight decrease from RMB 35,907,119,000 in 2023[116]. - As of December 31, 2024, the net gearing ratio was approximately 296.8%, a significant increase from 143.8% as of December 31, 2023[122][125]. Sales and Market Performance - Contracted sales amounted to approximately RMB 11.226 billion, with a contracted sales area of approximately 1.23 million sq.m, representing a year-on-year decrease of approximately 59.6% and 46.5%, respectively[30][33]. - The four cities with the largest contracted sales were Hangzhou, Beijing, Nanjing, and Suzhou, accounting for approximately 40.3% of the total contracted sales amount[31]. - The Yangtze River Delta Economic Zone accounted for approximately 41.3% of the total contracted sales amount, with sales of approximately RMB 4.640 billion[64]. - The sales of newly developed national commodity houses in 2024 amounted to approximately RMB 9,675 billion, a year-on-year decrease of 17.1%[49]. - The sales area of newly developed national commodity houses was approximately 974 million sq.m., representing a year-on-year decrease of 12.9%[49]. Operational Strategy and Development - The Company aims to maintain a proactive and prudent development strategy to secure its regional leading position[6]. - The Group plans to enhance property project management, ensure project progress, and improve product quality to meet the demand for improved properties[36][38]. - The Group will deepen regional business management of shopping mall operations and enhance operational performance through targeted strategies[40]. - The Group prioritizes "Ensuring Delivery" in its business operations, aiming for excellence and strengthening competitiveness in its "Two Wings" business[41]. - The Group's focus on long-term rental apartments and shopping malls is part of its strategy to enhance operational efficiency[65]. Governance and Management - The company has a strong management team with over 29 years of real estate development experience among its founders, which supports strategic decision-making[170][171]. - The company has established subsidiaries in the PRC, Hong Kong, the Cayman Islands, and the British Virgin Islands, indicating a broad market presence[174][176]. - The company emphasizes the importance of corporate governance and has established various committees to ensure compliance and effective management[182][183]. - The company has a corporate governance committee chaired by Huang Youquan, emphasizing its focus on governance practices[173]. - The independent non-executive director, Ting Leung Huel Stephen, has over 40 years of experience in accounting and auditing, contributing to the board's expertise[178]. Employee and Customer Relations - As of December 31, 2024, the Group employed a total of 6,201 employees, a decrease from 6,845 employees in 2023, with total employee costs approximately RMB 660,062,000 compared to RMB 943,489,000 in 2023[136]. - The male-to-female ratio in the workforce is approximately 1:0.57, with 3,950 male employees and 2,251 female employees, which the Board considers satisfactory[136]. - The Group emphasizes customer satisfaction and has conducted a residential customer satisfaction survey to gather feedback and improve project quality and services[149]. - The company maintains strong relationships with existing and potential clients, emphasizing customer satisfaction through various feedback channels and surveys[153]. Future Outlook - Looking forward to 2025, the Group expects the real estate market to continue to bottom out, with anticipated government policies to boost market confidence[35][38]. - The real estate market in China is expected to bottom out due to government policies aimed at stabilizing the market[48].

Financial Performance - As of December 31, 2024, Anhui Sihai reported total assets of approximately RMB 119 million and liabilities of about RMB 70.43 million, with equity attributable to owners of approximately RMB 48.8 million[14]. - The revenue generated during the same period was approximately RMB 158 million, resulting in an operating loss of RMB 1.3 million[14]. - The total revenue for the group in 2024 was RMB 442 million, representing a year-on-year growth of 38.2%[15]. - The new business segments, liquor sales and education/training services, performed exceptionally well, with liquor sales revenue reaching RMB 102 million, a year-on-year increase of 95.3%, and education/training services revenue reaching RMB 67.91 million, a year-on-year increase of 146.2%[15]. - Anhui Sihai's assets grew by 27.67% year-on-year, but its revenue only increased by 2.22%, and its profit decreased by 169.05% due to asset impairment losses[15]. - The assets of Anhui Sihai accounted for 20% of the group's total assets, while its revenue contributed 35.78% to the group's total revenue, but its profit only represented 0.05% of the group's total profitability[15]. Legal Matters - The court issued an asset preservation order on November 5, 2024, freezing the 65% equity stake in Anhui Sihai held by Yangzhou Huayin Commercial Chain, valued at RMB 32.5 million[3]. - The board found no factual or legal basis for the claims made by Nanjing Haihuaitong regarding the zero-cost transfer of the 65% equity stake[5]. - Nanjing Haihuaitong's lawsuit was dismissed by the court on April 18, 2025, rejecting all claims made against Yangzhou Huayin Commercial Chain[10]. - The ongoing litigation with Huainan Jianle involves a claim for RMB 61.08 million, with potential implications for the pledged equity in Anhui Sihai[12]. - The company intends to apply to the court to lift the restrictions on the 65% equity stake in Anhui Sihai following the court's supportive ruling[10]. - The group is committed to updating any developments regarding the Haihui Tong lawsuit and Huainan Jianle lawsuit[16]. Corporate Governance - The transfer of rights and obligations included the assumption of significant debts by Yangzhou Huayin Commercial Chain, which the board believes does not harm creditor interests[5]. - The estimated payment obligation under the supplementary agreement related to Anhui Sihai's 65% equity stake is approximately RMB 53.56 million, subject to final negotiations with Mr. Jin[11]. - The board of directors includes four executive directors and three independent non-executive directors, ensuring a diverse governance structure[17]. Asset Management - Anhui Sihai continues to operate normally, and the asset preservation order has not significantly impacted the company's business operations or financial condition[14]. - The potential sale of 65% of Anhui Sihai's equity would not affect the company's equity structure, business operations, assets, or liabilities significantly[15]. - The net asset value of Anhui Sihai was reported as (RMB 40,583,155), with non-controlling interests at RMB 14,204,104 and other current liabilities at RMB 53,560,000[15]. - The estimated proceeds from the potential sale of Anhui Sihai were RMB 27,180,950, leading to a post-sale net asset value of RMB 223,227,982[15].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue increase of 13% to approximately HKD 1,968,000,000 compared to the previous year[9]. - The group reported a loss attributable to shareholders of approximately HKD 118,000,000, an improvement from a loss of HKD 239,000,000 in 2023[9]. - The group’s consolidated revenue for the fiscal year ending December 31, 2024, increased by 13% to approximately HKD 1,968,000,000, compared to HKD 1,740,000,000 in 2023[47]. - The revenue from the dyeing and finishing machinery segment was approximately HKD 1,527,000,000, accounting for 78% of the group's total revenue, representing a 19% increase from HKD 1,288,000,000 in the previous year[48]. - The stainless steel casting segment generated revenue of approximately HKD 385,000,000, accounting for 19% of total revenue, a slight decrease of 2% from HKD 394,000,000 in the previous year[60]. - The stainless steel trading segment generated revenue of approximately HKD 56 million, representing 3% of the group's total revenue, a slight decline of 3% from HKD 58 million in the previous year[68]. - The basic and diluted loss per share for the year was HKD 0.1076, compared to HKD 0.2169 in the previous year[47]. Market and Sales Strategy - The sales breakdown for 2024 shows that dyeing machinery accounted for 78% of total revenue, stainless steel castings for 19%, and stainless steel materials for the remaining 3%[9]. - In 2024, the revenue from mainland China represented 43% of total sales, while Hong Kong contributed 3%[21]. - The company aims to increase its market share by 3% through targeted marketing strategies[9]. - The company plans to increase R&D investment to develop high-cost performance products that meet market demand[12]. - The company will focus on technology upgrades and customized solutions in the dyeing machinery manufacturing sector to meet evolving customer needs[10]. - Market expansion plans include entering two new international markets by Q3 2024[6]. Operational Efficiency and Cost Management - The company aims to enhance production efficiency and expand capacity to ensure stable business operations[10]. - Operational efficiency improvements are projected to reduce costs by 5% in the next quarter[8]. - The company is implementing cost control measures across all operational areas to maintain cash flow and manage financial stability[52]. - The group plans to enhance operational efficiency and control costs while continuing to focus on core business development and product design improvements[73]. Research and Development - The company is investing in new technology development, allocating $10 million for R&D in the upcoming fiscal year[5]. - The company plans to increase investment in R&D to provide higher value products and improve production efficiency through automation and digital transformation[59]. Corporate Governance - The board of directors is responsible for strategic direction and overall policy, ensuring effective leadership and monitoring of the company's affairs[87]. - The board has established three committees: the Nomination Committee, the Remuneration Committee, and the Audit Committee, each with clear written terms of reference[99]. - The company conducts regular reviews of its corporate governance policies and practices to ensure compliance with legal and regulatory requirements[98]. - The company promotes its core values and strategies across all levels of employees, integrating them into business decisions and operations[92]. Financial Management and Stability - The group’s debt ratio increased to 96% as of December 31, 2024, compared to 89% the previous year[84]. - The current ratio as of December 31, 2024, was 0.59, slightly up from 0.56 the previous year[84]. - The net cash inflow from operating activities for the fiscal year ending December 31, 2024, was approximately HKD 165 million[83]. - Employee costs for the fiscal year 2024 amounted to approximately HKD 521 million, accounting for 26% of operating revenue, down from 32% in the previous year[82]. Future Outlook - The company anticipates moderate global economic growth in 2025, supported by the restructuring of manufacturing industry supply chains in developing economies[12]. - The company acknowledges the ongoing challenges posed by geopolitical tensions and trade protectionism affecting global economic recovery[12]. - The group expects business conditions to remain very challenging this year, with a negative market outlook impacting overseas markets[79]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[127]. - The board will consider various factors, including financial performance and capital expenditure needs, when deciding on future dividend declarations[133]. - The board has decided not to recommend any final dividend for the year ending December 31, 2024, resulting in no dividends being declared for the entire year[137].