Financial Performance - The Group's revenue decreased by approximately HK$26.0 million, from approximately HK$166.8 million in Year 2023 to approximately HK$140.8 million in Year 2024, representing a decline of about 15.6%[10][17]. - The net profit for Year 2024 was approximately HK$1.7 million, compared to approximately HK$7.0 million in Year 2023, indicating a significant decrease in profitability[10][18]. - Revenue from sales in Hong Kong, Macau, and Mainland China for Year 2024 amounted to approximately HK$133.0 million, HK$6.3 million, and HK$1.5 million, respectively[17]. - The Group's cost of sales amounted to approximately HK$104.2 million for the Year 2024, representing a decrease of approximately 16.6% from approximately HK$124.9 million for the Year 2023[23][27]. - The Group's gross profit decreased by approximately HK$5.3 million, or approximately 12.6%, from approximately HK$41.9 million for the Year 2023 to approximately HK$36.6 million for the Year 2024, while the overall gross profit margin increased from approximately 25.1% to approximately 26.0%[24][28]. - The Group's selling and distribution expenses decreased by approximately HK$1.0 million, or approximately 17.5%, from approximately HK$5.7 million for the Year 2023 to approximately HK$4.7 million for the Year 2024[30][35]. - The Group's administrative and other expenses increased by approximately HK$1.3 million, or approximately 4.2%, from approximately HK$30.6 million for the Year 2023 to approximately HK$31.9 million for the Year 2024[31][36]. - The Group recorded a net profit for the year attributable to the owners of the Company of approximately HK$1.7 million for the Year 2024, compared to approximately HK$7.0 million for the Year 2023[34][39]. Market Conditions - The decline in sales orders was primarily due to reduced construction activity and economic uncertainties affecting the real estate and infrastructure sectors[18]. - The overall market sentiment remains weak, with fierce competition in the construction industry impacting short-term performance[19]. - The Group remains optimistic about long-term prospects despite short-term uncertainties in the low-voltage electrical power distribution and control devices industry[19][21]. - The Group is committed to closely monitoring market conditions and proactively responding to new business inquiries to maintain competitiveness[12]. - Management is enhancing capabilities to adapt to environmental changes and market dynamics, ensuring timely adjustments to business strategies[9]. - The Group's management emphasizes the importance of resource allocation to ensure stable development amidst macroeconomic fluctuations[9]. Employee and Staffing - As of December 31, 2024, the Group had 221 full-time employees, a decrease from 229 employees in 2023, indicating a reduction of approximately 3.5%[66]. - The Group's total staff costs for the Year 2024 were approximately HK$39.4 million, an increase from approximately HK$38.4 million in 2023, reflecting a growth of about 2.6%[66]. - The remuneration of senior management for the Year 2024 is categorized, with 2 individuals earning between HK$Nil to HK$1,000,000[174]. Corporate Governance - The Company has complied with all mandatory disclosure requirements and applicable code provisions of the Corporate Governance Code for the Year 2024[100]. - The Board is committed to enhancing corporate governance standards to meet rising expectations and regulatory requirements[101]. - The Board ensures a balanced composition with a strong independent element to effectively exercise independent judgment[114]. - Independent non-executive Directors are appointed to Board committees to ensure independent views are available[116]. - The Nomination Committee assesses the independence of independent non-executive Directors annually to ensure their ability to exercise independent judgment[116]. - The Company has adopted the Model Code for Securities Transactions by Directors to govern securities transactions[102]. - The Company has received written annual confirmation of independence from each independent non-executive Director, ensuring they are independent of management[128]. - The Board is responsible for leadership and control of the Company, overseeing strategic decisions and performance[137]. - The Board regularly reviews the contributions required from each Director to fulfill their responsibilities[143]. - The Company has a board diversity policy that emphasizes a balance of skills, experience, and perspectives among Board members[182]. Risk Management - The Group's risk management system is led by Directors, who consider macro and microeconomic conditions before making business decisions, aiming to embed risk awareness into the corporate culture[60]. - The Group has minimal exposure to foreign currency risk, as most transactions are conducted in the functional currencies of the relevant group entities, leading to no current foreign currency hedging policy[56]. - The Group's projects are awarded on a non-recurring basis through tendering, which poses a risk to financial performance if the success rate for obtaining new projects declines[59]. Use of Proceeds - The net proceeds from the Company's listing on May 11, 2018, were approximately HK$75.0 million, which was HK$14.7 million lower than the estimated net proceeds of HK$89.7 million disclosed in the Prospectus[67]. - As of December 31, 2024, approximately HK$17.9 million of the net proceeds remained unutilized and is expected to be applied according to the planned use disclosed in the prospectus[72]. - The company has decided to extend the expected timeline for utilizing the unutilized net proceeds over the next two financial years to finalize strategic procurement plans and optimize cost efficiencies[75]. - The allocation of net proceeds includes HK$37.4 million for the acquisition of a factory in Mainland China and HK$21.2 million for the purchase of machinery and equipment[71]. - General working capital utilized amounted to HK$15.6 million, with a remaining balance of HK$4.5 million as of December 31, 2024[71]. - The company has no current intention to change the planned use of the net proceeds as disclosed in the prospectus[76]. Board Composition and Experience - The Board comprises six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors as of December 31, 2024[113]. - The Group's executive directors, including Mr. Leung and Mr. Yuen, have over 30 years of experience in the low-voltage electrical power distribution and control devices industry[82][84]. - The Group was founded on August 25, 1992, by Mr. Yuen and Mr. Leung, indicating a long-standing presence in the industry[80][84]. - The Group's leadership team is well-equipped to navigate market challenges and drive future growth through their extensive industry experience[80][82]. - The Company targets to review gender diversity in the Board and senior workforce in line with business development[186]. - The Board's diversity includes various age groups and professional experiences, enhancing decision-making capabilities[188]. Audit and Compliance - The Audit Committee reviewed the Company's annual results for the Year 2024 and confirmed compliance with applicable accounting standards and adequate disclosure[152]. - The Audit Committee convened 3 meetings during the Year 2024 to oversee financial and internal control aspects, risk management, and audit plans[152]. - The Audit Committee conducts an annual assessment of the effectiveness of the Group's internal controls and financial controls system[148]. - The Audit Committee reviewed the independence of external auditors, Cheng & Cheng Limited, ensuring objectivity in their reporting[199].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,151.3 million, a decrease of 10.1% compared to RMB 1,281.3 million in 2023[6] - Net profit attributable to equity holders reached RMB 6.9 million, a significant turnaround from a loss of RMB 72.4 million in the previous year[8] - The company achieved a gross profit of RMB 209.8 million, compared to RMB 204.6 million in 2023, indicating an improvement in overall gross margin[6] - Total assets decreased to RMB 633.8 million from RMB 691.0 million in 2023, reflecting a reduction in both non-current and current assets[7] - cPaaS business revenue for the reporting period was RMB 419.4 million, a year-on-year decrease of 39.2%[13] - SaaS segment revenue reached RMB 731.9 million, representing a year-on-year growth of 23.8%[14] - Marketing Cloud revenue was RMB 611.8 million, with a year-on-year increase of 23.4%[15] - Sales Cloud achieved revenue of RMB 80.1 million, reflecting a year-on-year growth of 14.9%[18] - Customer Cloud revenue was RMB 40.0 million, showing a significant year-on-year increase of 55.8%[19] - The overall gross profit increased by 2.5% to RMB 209.8 million, with the gross profit margin rising from 16.0% to 18.2%[34] - SaaS now accounts for 63.6% of total revenue, marking the first time it has exceeded 60%[27] Customer and Market Development - The number of SaaS customers increased by 7.6% to 2,282, with a net revenue retention rate of 104.2%[10] - Core customers contributed 93.7% of total customer revenue, with an average revenue per core customer of RMB 3.0 million[10] - The company expanded its overseas business, covering countries such as Thailand, the Philippines, and Mexico, enhancing local operational capabilities[19] - The company signed a cooperation agreement with Huawei for HarmonyOS, increasing product diversity and market exposure[19] Product and Technology Innovation - The company launched new products including SKU Super Model and Smart Xiao Xuan, enhancing its offerings in various industry scenarios[9] - The AIoT smart freezer product was successfully launched, contributing to the digital marketing efforts of fast-moving consumer goods clients[18] - The integration of AI capabilities into various business lines is a priority, with a focus on creating differentiated products[20] - The company plans to enhance its product standardization and integrate 5G messaging and AI functionalities in its marketing cloud segment by 2025[21] Cost Management and Efficiency - The sales cost decreased by 12.6% to RMB 941.5 million, aligning with the reduction in PaaS business[33] - Sales and distribution expenses decreased by 24.2% to RMB 94.8 million, attributed to reduced business entertainment, travel expenses, and advertising costs[35] - Administrative expenses fell by 20.8% to RMB 46.0 million, due to lower employee benefits and auditor fees[37] - R&D expenses decreased by 29.2% to RMB 65.5 million, mainly due to reduced employee benefits and server hosting costs[38] - The net impairment loss on financial assets decreased by 18.5% to RMB 6.4 million, driven by a decline in expected credit loss rates on trade receivables[39] Governance and Management - The company is led by a team of experienced executives, including the co-founders who have held various leadership roles since 2021 and 2022, focusing on daily operations and management[61][63][64] - The Chief Financial Officer, who has been with the company since 2015, oversees the finance department, investor relations, and corporate governance[69] - The company has a focus on maintaining strong governance with independent non-executive directors appointed to ensure oversight and compliance[65][66][68] - The executive team has a diverse educational background, with advanced degrees in business administration and finance, enhancing their capability to drive the company's growth[63][69] Shareholder and Dividend Policy - The board does not recommend the distribution of a final dividend for the reporting period, with no dividends declared for the year ending December 31, 2023[59] - The company retained zero profits as distributable reserves for shareholders during the reporting period[95] - The company is committed to aligning its strategies with shareholder interests while exploring new business opportunities and market expansions[58] Compliance and Risk Management - The company acknowledges potential risks associated with its contractual arrangements, including regulatory changes in China that could impact its business operations[142] - The independent auditor confirmed that there were no undisclosed related party transactions during the reporting period[154] - The group complied with applicable laws and regulations, with no significant legal proceedings threatening the company[159] Employee Relations and Diversity - The company maintained a good relationship with employees, providing competitive compensation and benefits[91] - No labor disputes or strikes occurred during the reporting period, indicating an ideal relationship with employees[92] - The company has a total of 642 full-time employees, with a gender ratio of approximately 67.4% male and 32.6% female[198] - The company will continue to promote gender diversity at all levels, aiming to increase the proportion of female directors when suitable candidates are available[199] Strategic Investments and Future Plans - The company has no significant future investment or capital asset plans as of December 31, 2024, but will continue to seek investment opportunities that align with shareholder interests[58] - The company is continuously evaluating the utilization of unutilized net proceeds to adapt to changing market conditions[136] - Strategic investments and acquisitions are allocated HKD 16.4 million, which remains unutilized as of the reporting date[135]

Financial Performance - Fangzhou Inc. reported a revenue of RMB 1.2 billion for the fiscal year ending December 31, 2024, representing a year-over-year growth of 25%[2]. - Total revenue for 2024 reached RMB 2,707,368, an increase of 11.2% compared to RMB 2,434,308 in 2023[13]. - Adjusted net profit for 2024 grew significantly by 139% to RMB 17,119 from RMB 7,165 in 2023[16]. - Revenue for the last quarter reached $150 million, representing a 15% increase compared to the previous quarter[93]. - Future guidance indicates a projected revenue growth of 20% for the upcoming fiscal year[93]. - The gross profit margin decreased to 19.1% in 2024 from 20.0% in 2023, while the net loss margin worsened to (31.4)% from (8.1)%[69]. - Total sales cost rose by 12.6% to RMB 2,191.4 million for the year ending December 31, 2024, from RMB 1,946.9 million for the year ended December 31, 2023, aligning with revenue growth[40]. User Engagement and Market Expansion - The company achieved a monthly active user count of 5 million, an increase of 30% compared to the previous year[2]. - Fangzhou Inc. plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[2]. - The company has launched a new telehealth platform, aiming to serve an additional 1 million users by the end of 2025[2]. - As of December 31, 2024, the platform registered users increased to 49.2 million, with an average of 10.1 million monthly active users, reflecting a 20% year-over-year growth[16]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[94]. Product Development and Innovation - The company is investing RMB 200 million in new product development, focusing on chronic disease management technologies[2]. - The company is investing $10 million in research and development for innovative health technology solutions[93]. - The company aims to enhance its online chronic disease management market leadership by balancing immediate tactical improvements and long-term strategic planning[28]. - The company plans to optimize its online chronic disease management platform, with a focus on enhancing user experience and conversion rates[191]. Strategic Partnerships and Acquisitions - The company has completed the acquisition of a local healthcare startup for RMB 100 million, enhancing its service offerings[2]. - The company has established strategic partnerships with three major hospitals to enhance its service delivery network[2]. - The company has established strategic partnerships with over 1,500 suppliers and more than 900 pharmaceutical companies, providing nearly 215,000 drug SKUs, with approximately 62% being prescription drug SKUs[26]. - The company has completed a strategic acquisition of a competitor, enhancing its market share by 10%[94]. Governance and Corporate Structure - The board has established three committees to oversee audit, compensation, and nominations, ensuring robust governance[95]. - The company maintains a high standard of corporate governance to protect shareholder interests[93]. - The independent directors provide critical oversight and strategic advice to enhance business development[94]. - The company has adopted a standard code of conduct for directors regarding the trading of company securities, confirming compliance until December 31, 2024[110]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and auditor relationships[114]. Financial Position and Assets - Non-current assets as of December 31, 2024, were RMB 55,769, an increase from RMB 54,014 in 2023[14]. - Current assets increased to RMB 608,325 in 2024 from RMB 467,354 in 2023[14]. - Cash and cash equivalents increased to RMB 174.6 million as of December 31, 2024, from RMB 146.3 million as of December 31, 2023, indicating improved liquidity[62]. - As of December 31, 2024, the company's asset-liability ratio was 0.8, down from 4.6 in 2023, indicating improved capital adequacy[81]. Employee and Talent Management - The company has 488 employees as of December 31, 2024, with a diverse distribution across various functions[80]. - The company will focus on recruiting top talent in AI, healthcare, chronic disease management, and the pharmaceutical industry to support ongoing growth[32]. - The total salary cost for the year ended December 31, 2024, was RMB 883.3 million, significantly up from RMB 147.0 million for the year ended December 31, 2023, mainly due to expenses from the restricted share unit plan[79]. Risk Management and Internal Controls - The company has implemented strict risk management and internal control policies to continuously improve its operational effectiveness and mitigate potential risks[149]. - The audit department leads the company's risk management efforts, assessing strategic, operational, and financial risks, and providing management solutions[150]. - The company has established a mechanism for handling and disclosing insider information, ensuring compliance with relevant regulations[162]. Community Engagement and Corporate Responsibility - The company made charitable donations totaling RMB 0.3 million in 2024[181]. - The company emphasizes sustainable development and environmental responsibility through various energy-saving measures[193]. - The company maintains strong relationships with stakeholders, including customers, suppliers, employees, and shareholders, to ensure long-term success[195][196][197][198].

Financial Performance - The total revenue for 2023 was RMB 5,330,611 thousand, a decrease from RMB 10,126,458 thousand in 2022, representing a decline of approximately 47.4%[9]. - The annual profit for 2023 was RMB 117,639 thousand, compared to RMB 699,132 thousand in 2022, indicating a significant drop of about 83.2%[10]. - The net profit for the fiscal year 2024 was approximately RMB 699,132 thousand, compared to RMB 294,027 thousand for the fiscal year 2023, representing a significant increase[54]. - The overall revenue for the group in fiscal year 2024 was approximately RMB 11,866,628 thousand, an increase of approximately 12.7% from the previous year[64]. - The gross profit for fiscal year 2024 was RMB 1,461,919 thousand, a significant increase of approximately 50.73% from RMB 969,901 thousand in the previous year[65]. - The mining segment's total revenue for fiscal year 2024 was approximately RMB 2,571,687 thousand, an increase of approximately RMB 186,268 thousand or 7.81% from the previous year[57]. - The smelting segment's total revenue for fiscal year 2024 was approximately RMB 12,043,436 thousand, an increase of approximately 13.42% from RMB 10,618,737 thousand in the previous year[61]. - Other income for the fiscal year 2024 was approximately RMB 59,658 thousand, an increase of about 23.5% from RMB 48,292 thousand in the previous year[67]. Assets and Equity - The total assets as of 2024 reached RMB 7,215,144 thousand, an increase from RMB 6,836,150 thousand in 2023, reflecting a growth of approximately 5.6%[13]. - The company’s equity attributable to shareholders increased to RMB 3,385,772 thousand in 2024 from RMB 2,662,151 thousand in 2023, representing a growth of approximately 27.1%[13]. - As of December 31, 2024, total equity was RMB 3,158,184 thousand, an increase from RMB 2,436,554 thousand as of December 31, 2023[69]. - The current ratio improved to 99.45% as of December 31, 2024, compared to 80.0% a year earlier[69]. - The group had approximately RMB 2,644,510 thousand in outstanding bank and other borrowings, with a debt ratio of 36.65%, down from 41.7% the previous year[69]. Production and Resources - The company produced approximately 20,853 kg (about 648,601 ounces) of gold in 2024, with a gold reserve of approximately 131.81 tons (about 4,099,749 ounces) as of December 31, 2024[14]. - The total metal resources in the domestic gold mines amount to 53,831 kg, with 5,991 kg confirmed, 38,967 kg controlled, and 44,923 kg inferred[17]. - The total foreign metal resources from the Istambek gold mine in Kyrgyzstan amount to 27,066 kg, with 5,956 kg confirmed[18]. - The total inferred metal resources across all projects amount to 80,897 kg, indicating significant potential for future extraction[18]. - The group produced approximately 20,853 kg (about 648,601 ounces) of gold bars in the fiscal year 2024, a decrease of approximately 1,711 kg (about 53,212 ounces) or 7.3% compared to the previous year[54]. Strategic Plans and Market Expansion - The company aims to continue expanding its mining production scale and will focus on acquiring potential gold resources in the future[15]. - The company plans to enhance its exploration efforts and expand its market presence to become a leading gold mining group both domestically and internationally[15]. - The company is committed to international expansion, establishing an overseas business unit to accelerate its international strategy[42]. - The group plans to accelerate internationalization and promote digital and green low-carbon transformations to become a leading domestic and internationally recognized gold mining group[63]. - Market expansion plans include entering three new international markets by the end of the year[95]. Corporate Governance - The company has maintained a high standard of corporate governance, adhering to the corporate governance code and ensuring transparency for shareholders and employees[104]. - The board of directors is responsible for formulating and executing the company's business plans and overall strategic direction[106]. - The current board composition includes 11 members, with a mix of executive, non-executive, and independent directors[107]. - The company has a clear governance procedure in place to protect the interests of shareholders and employees[104]. - The independent non-executive directors bring extensive experience from various sectors, enhancing the board's effectiveness[107]. - The company has been compliant with the corporate governance code throughout the review year[105]. - The management team is led by the chairman and four executive directors, responsible for daily operations and strategic decision-making[107]. - The company has a dedicated audit committee, nomination committee, and remuneration committee to oversee various aspects of governance[107]. Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and has implemented internal rules for efficient resource use and waste reduction[185]. - The company is committed to safety and environmental protection, enhancing safety management standards and promoting green mining practices[49]. - The company actively communicates with stakeholders, including customers, employees, and investors, to enhance management and sustainable development[187]. - The company has complied with all relevant laws and regulations during the fiscal year 2024[184]. - The company is committed to improving communication mechanisms with stakeholders to optimize management operations and enhance sustainable development performance[187]. Human Resources and Talent Development - The group employed 3,618 staff members at the end of fiscal year 2024, emphasizing competitive compensation and training programs[84]. - The company emphasizes talent development and recruitment to build a strong workforce for sustainable growth[48]. - New directors receive comprehensive onboarding and ongoing professional development to ensure understanding of the company's operations and governance policies[116]. - The company encourages all directors to participate in continuous professional development, with a recent training session on director responsibilities and listing rules attended by all[116]. Financial Management and Dividends - The proposed final dividend for the year ending December 31, 2024, is RMB 0.08 per share, an increase from RMB 0.065 per share in 2023, pending shareholder approval[196]. - The board of directors will consider the dividend policy based on profitability, financial condition, future development plans, and macroeconomic environment[195]. - The company has not declared or paid any interim dividend during the year, consistent with the previous year[197]. - The company has no significant contingent liabilities as of December 31, 2024[82].

Market Position and Expansion - The group achieved a domestic market share of over 20% in high-end metering products, establishing itself as a leader in the industry[8]. - The overseas business has expanded significantly, with production lines established in Tanzania, Brazil, Mexico, and Hungary, and new bases planned in Australia, Indonesia, and Malaysia[10]. - The group aims to become a leading supplier in the international smart grid and metering sectors, promoting its brand as a globally recognized name[10]. - The group has established over ten overseas subsidiaries and sales offices, with factories in Saudi Arabia and Indonesia under construction, advancing its international strategy[82]. - The group plans to complete its overseas network deployment by 2025, optimizing its global organizational structure[91]. Financial Performance - The company reported a revenue of approximately RMB 8.72 billion for the fiscal year ending December 31, 2024, representing a year-on-year growth of 20%[23]. - The net profit attributable to the company's shareholders increased by 35% to approximately RMB 706 million, with basic earnings per share rising to RMB 0.714[23]. - The international business revenue grew significantly by 50% to approximately RMB 2.40 billion, highlighting the company's expansion in global markets[23]. - Revenue increased by 20% to RMB 8,716.54 million in 2024, compared to RMB 7,252.27 million in 2023[38]. - The gross profit was RMB 3,035.14 million, up 18% from RMB 2,580.75 million, with a gross margin of 34.8%[70]. Innovation and Technology Development - The company has developed a new technology for large-capacity, long-life liquid metal energy storage batteries, which received a first-class award from the China Electrical Engineering Society[20]. - The company is advancing the application of the Hongmeng operating system in smart energy meters, aiming to maintain its industry-leading position[24]. - The group has received 180 authorized patents during the year, including 84 invention patents, and now holds a total of 2,000 effective patents and intellectual property rights[104]. - The group launched a new generation of voltage and current transformer error characteristic online monitoring equipment, significantly improving algorithm computing power and data interaction, with applications delivered in multiple provinces[105]. - The chip module has become the largest contributor to the group's performance, opening new growth sources in the integrated source-grid-load-storage of new power systems and smart city infrastructure[106]. Commitment to Sustainability - The group is committed to innovation and sustainable development, aligning with global trends towards green and low-carbon energy[10]. - The company emphasizes the importance of ESG principles in its development strategy, aiming for sustainable growth and contributing to the green transformation of the energy sector[125]. - The company achieved a green electricity usage of 13,810 MWh in 2024, with a usage ratio of nearly 50%[136]. - The company is committed to sustainable development goals, integrating them into long-term strategies, focusing on green products, design, production, and supply chains[133]. - The company has established comprehensive emission control measures, monitoring greenhouse gases, wastewater, and solid waste to minimize environmental impact[155]. Market Trends and Opportunities - The company aims to leverage opportunities in emerging markets such as Latin America, the Middle East, and Africa for energy infrastructure development[24]. - The global energy storage market is expected to see over 250 GWh of new installations by 2025, with significant growth anticipated in Europe and emerging markets[91]. - The State Grid is expected to invest over RMB 650 billion by 2025, focusing on smart grid construction and large-scale equipment replacement, which will drive demand for metering products[76]. - The Southern Power Grid plans to invest RMB 175 billion in fixed assets by 2025, which is anticipated to stimulate growth in primary and secondary equipment, distribution network equipment, and metering products[76]. - The company is focusing on diversifying its product and business lines to adapt to market changes and consumer preferences[177]. Operational Efficiency and Cost Management - Operating expenses accounted for 21% of revenue in 2024, a decrease from 23% in 2023[42]. - The company has implemented an intelligent energy management system to monitor energy usage and reduce waste[158]. - The company is focusing on the development of clean energy and low-carbon operations to enhance sustainable development[167]. - The company has established a risk warning mechanism to monitor extreme weather dynamics and trends, preparing for potential impacts[180]. - The company is enhancing its energy efficiency collaboration with strategic partners to create energy efficiency improvement projects[179]. Corporate Governance and Stakeholder Engagement - The company is committed to enhancing shareholder value through share buybacks and transparent investor relations management[142]. - The company integrates ESG principles into its corporate strategy and operations, focusing on economic, social, and environmental win-win outcomes with stakeholders[147]. - The company prioritizes stakeholder communication and has established a stakeholder information database to enhance engagement[148]. - Regular disclosure of financial data and optimization of investment returns are part of the governance strategy[154]. - The company aims to improve its ESG information disclosure quality to enhance stakeholder communication and transparency[179].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$1.2 billion, representing a 15% year-over-year growth[5]. - The company has set a future revenue guidance of HK$1.5 billion for the next fiscal year, indicating a projected growth of 25%[5]. - The revenue for the year ended December 31, 2024, was approximately HK$2,235,129,000, representing a decrease of 9.4% compared to HK$2,467,957,000 for the year ended December 31, 2023[23]. - Operating costs decreased by 10.6% to approximately HK$2,480,430,000 for the year ended December 31, 2024, down from HK$2,773,698,000 in the previous year[23]. - The operating loss decreased to approximately HK$245,301,000 for the year ended December 31, 2024, a reduction of 19.8% from HK$305,741,000 in 2023[24]. - The loss attributable to owners of the Company decreased to approximately HK$252,605,000 for the year ended December 31, 2024, a decrease of 2.5% from HK$258,989,000 in 2023[25]. - Television broadcasting revenue was HK$878,438,000 for the year ended December 31, 2024, down from HK$917,570,000 in 2023[30]. - Internet media revenue remained stable at HK$777,270,000 for the year ended December 31, 2024, compared to HK$778,797,000 in 2023[30]. - Outdoor media revenue decreased significantly to HK$459,889,000 for the year ended December 31, 2024, from HK$598,055,000 in 2023[30]. Strategic Initiatives - New product launches, including a premium subscription service, are expected to contribute an additional HK$200 million in revenue[5]. - A strategic acquisition of a local media company was completed, enhancing content diversity and expected to generate HK$100 million in synergies[5]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in regional audience by the end of 2025[5]. - Investment in new technology for content delivery is projected to reduce operational costs by 10% over the next two years[5]. - The board of directors has approved a share consolidation plan, effective February 20, 2024, to enhance share value[10]. Awards and Recognition - The company received multiple awards for excellence in media production, enhancing its brand reputation[5]. - Phoenix TV has been recognized among "Asia's 500 Most Influential Brands" and "China's 500 Most Valuable Brands," maintaining its position as one of the top four Asian television brands[38]. - Phoenix TV's program "Abandoned Life" won the gold award in the Social Justice Promotion Category at the 2024 New York International Festivals[38]. - The company has won multiple awards at the 2024 Promax Asia Awards and Asian Television Awards, reflecting its world-class production standards[38]. - Phoenix TV was honored with multiple awards at the 2024 New York Festivals TV & Film Awards, marking the 13th consecutive year of recognition for its program production quality[139]. - Phoenix TV won the gold award for Best Promo For a Streaming Service and the silver award for Best Public Service Announcement at the 2024 Promax Asia Award[170]. - Phoenix TV received the inaugural Belt and Road International Cooperation Award at the International Finance Forum for its participation in international cooperation projects[166]. - Phoenix TV received an Honourable Mention Excellence in ESG at the Hong Kong Corporate Governance and ESG Excellence Awards[173]. Audience Engagement - User engagement metrics showed a 20% increase in viewership across all platforms, with a notable rise in mobile app usage[5]. - Phoenix TV has a global audience exceeding 2 billion, with over 500 million television viewers and more than 200 million overseas new media audience[36]. - The Hong Kong Channel was officially launched on Channel 85, reaching 1.03 million residents across 100 communities in Hong Kong[36]. - Phoenix TV's internet media platform, IFENG News App, maintains industry leadership with a user base exceeding 55 million and high engagement rates, bolstered by major event coverage[46]. - "Phoenix Weekly" has a total user base exceeding 55 million, with over 20 million users on Douyin and WeChat Channels, enhancing its advertising bargaining power[49]. Corporate Social Responsibility - Environmental, social, and governance (ESG) initiatives are being prioritized, with a commitment to reduce carbon emissions by 15% by 2026[5]. - Phoenix TV has received the ESG Excellence Award for two consecutive years, demonstrating its commitment to corporate social responsibility[42]. - The company collaborated with China Resources Group to donate educational courseware to 1,007 schools in Hong Kong, showcasing its dedication to sustainable development[42]. - The "You Bring Charm to the World Award Ceremony" recognized outstanding Chinese individuals, celebrating their contributions across various fields[72]. - The award ceremony has evolved into an annual event showcasing the excellence of the Chinese community and fostering cultural exchanges[74]. Content Innovation - The company is committed to focusing on its main media business and innovative development, with a goal of building a leading Chinese-language media group[32]. - Phoenix TV's new programming includes a variety of self-produced cultural documentaries and financial programs, enhancing local content offerings[63]. - The launch of the documentary film "Hong Kong Nature Stories" and the Young Filmmakers Project reflects the company's commitment to content innovation and cultural promotion[56][57]. - The newly launched Phoenix Hong Kong Channel broadcasts in both Mandarin and Cantonese, featuring a 90-minute prime-time Cantonese news segment and various self-produced cultural documentaries[61][62]. - Phoenix TV's focus on international broadcasting and content innovation supports broader commercial expansion and enhances its core competitiveness[45][50]. International Expansion - The company organized the Global Development Forum for Enterprises in Jakarta, Indonesia, enhancing its international broadcasting platform[41]. - Phoenix TV successfully launched its international event brand, Phoenix Go Glocal, during the 19th ASEAN Marketing Summit in Jakarta, Indonesia, aimed at supporting the global development of Chinese and foreign enterprises[115]. - The strategic partnership with Hong Kong Generative AI Research and Development Center aims to create a high-quality multilingual dataset and enhance generative AI technology's understanding of Chinese culture[64]. - The collaboration with HKGAI significantly enhances the data scale of high-quality Chinese language materials, particularly in Cantonese and Traditional Chinese[65]. - Phoenix TV continues to deepen its integrated marketing linkage mechanism, providing diverse and customized media products to enhance operational efficiency[45][47]. Events and Forums - The 2024 Phoenix Financial Forum for The Greater Bay Area was held from September 2 to 4, focusing on critical economic issues and growth opportunities in the new economic landscape[84]. - The forum featured discussions on global economic trends and opportunities for growth, attended by key leaders and experts[85]. - The Greater Bay Area Film Concert 2024 was organized by Phoenix TV, showcasing cultural integration through film and music[92][93]. - During COP29, Phoenix TV shared its new practices in climate communication and promoted the "CarbonSpeak" project at the China Pavilion's Side Event[107][108]. - Mr. Xu Wei highlighted the role of Phoenix TV in building dialogues amid conflicts, emphasizing the importance of understanding and cooperation[110].

Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately RMB 5,804.66 million, a decrease of 25.40% compared to RMB 7,781.44 million for the year ended December 31, 2023[16]. - The gross profit margin for the reporting period was approximately 41.03%, down 9.86 percentage points from 50.89% in the same period last year[17]. - The net profit attributable to shareholders of the parent company was approximately RMB 948.95 million, a decline of 58.17% from RMB 2,268.81 million in the previous year[18]. - In Q4 2024, the company's operating revenue increased by 15.83% year-on-year and 19.37% quarter-on-quarter, with net profit attributable to shareholders at RMB 238.62 million, a 12.99% increase quarter-on-quarter[25]. - The net profit attributable to shareholders for the reporting period was RMB 948.95 million, a decrease of 58.17% year-on-year, primarily due to the absence of high-margin large orders from the previous year and low gross margins in emerging businesses[25]. - The adjusted net profit attributable to shareholders was RMB 803.07 million, a 65.12% decrease compared to 2023[75]. - The net profit decreased by 58.43% from RMB 2,250.82 million in 2023 to RMB 935.76 million in 2024, with a net profit margin of 16.35%, down 12.81 percentage points from 29.16% in 2023[93]. - Basic and diluted earnings per share fell from RMB 6.26 in 2023 to RMB 2.69 in 2024, primarily due to the decline in net profit[94]. Business Growth and Development - In 2024, Asymchem Laboratories achieved an 8.28% year-on-year growth after excluding the impact of large orders during the pandemic, maintaining strong profitability in its small molecule CDMO business[8]. - The company is expanding its emerging business in peptide, antibody-drug conjugates (ADC), and oligonucleotide markets, with a notable increase in project deliveries and orders in the fourth quarter[8]. - The company signed new orders in 2024, with a year-on-year growth of approximately 20%, particularly from European and American markets, which exceeded the overall order growth rate[23]. - The emerging business segment generated revenue of RMB 1,226.37 million, an increase of 4.80% year-on-year, with overseas customer revenue growing by 15.41%[24]. - The biopharmaceutical CDMO segment revenue increased by 17.36% year-on-year, with over 60 ongoing orders, including IND and multiple BLA stage projects, and a 56% increase in orders year-on-year[40]. - The chemical macromolecule CDMO business, including peptides, saw a revenue growth of 15.66% year-on-year, with over 200% quarter-on-quarter growth in Q4 2024 and more than 130% year-on-year increase in backlog orders[37]. - The company is focusing on strategic reserves of potential blockbuster projects, particularly in the GLP-1 weight loss area, with 12 projects expected to reach the PPQ stage by 2025[34]. Research and Development - The company has automated peptide synthesis and purification capabilities, with solid-phase synthesis capacity exceeding 20,000 liters, and plans to further increase production scale[9]. - Continuous investment in research and development for continuous reaction technology is driving market demand and recognition for continuous processes[10]. - Research and development expenses for the year ending December 31, 2024, amounted to RMB 614.49 million, representing 10.59% of total revenue, with plans for continued proportional investment in R&D[48]. - The company aims to increase R&D investment to strengthen its research platform and promote smart manufacturing technologies[139]. - The company has published a total of 47 research papers in leading international journals, with 14 papers having an impact factor exceeding 10[48]. Operational Efficiency and Technology - Asymchem's advanced manufacturing technologies, including continuous flow reaction and synthetic biology, are gaining traction globally, enhancing the company's competitive edge in the pharmaceutical and fine chemical industries[10]. - The company is focusing on enhancing its green chemistry capabilities to reduce costs and improve efficiency in pharmaceutical process development[7]. - The company is committed to seamless integration of cutting-edge technologies and industrial applications to strengthen its competitive edge in the CDMO industry[44]. - The company is one of the few able to apply continuous production technology at a ton-scale level, creating a strong competitive advantage by simplifying process paths and reducing raw material costs[47]. - The fixed enzyme continuous reaction technology has been successfully applied in the production of multiple ton-level products, achieving production capacity increases of up to 1,500 times compared to traditional enzyme catalysis[50]. Market Position and Customer Relationships - The company has established partnerships with 16 out of the top 20 global pharmaceutical companies, with 8 of these relationships lasting over a decade, indicating strong customer loyalty and retention[126]. - The company aims to enhance its CDMO products and services, expanding into advanced drug categories including peptides, oligonucleotides, monoclonal antibodies, and ADCs[122]. - The company is actively expanding its global customer base by deepening relationships with existing clients and targeting small to medium-sized innovative drug companies[131]. - The company aims to strengthen relationships with key customers and actively seek growth opportunities in domestic and international markets[23]. Sustainability and Corporate Responsibility - The company is committed to sustainable development and social responsibility, actively engaging with stakeholders to create a harmonious business environment[71]. - The company has established a comprehensive ESG management system and supply chain behavior guidelines to meet the expectations of overseas clients[72]. - The company has implemented environmental policies and measures, promoting energy conservation and waste reduction among employees[180]. - The company is committed to green operations and actively practices environmental sustainability[180]. Human Resources and Management - The company has introduced 245 senior talents in 2024, including 78 PhDs and 136 individuals with overseas pharmaceutical experience[69]. - The total number of employees reached 9,595 by December 31, 2024, with approximately 78% holding a bachelor's degree or higher[69]. - The company emphasizes talent management strategies to attract and retain diverse professionals in the competitive pharmaceutical industry[68]. - The company has a stable and experienced senior management team, with many members having over 20 years of industry experience, ensuring strong governance and operational effectiveness[128]. Future Outlook and Strategic Plans - The company plans to continue enhancing its global supply chain through multi-site production capacity to support global partners in accelerating drug launches[13]. - In 2025, the company plans to accelerate overseas expansion by establishing production capabilities in Europe and enhancing collaboration with international pharmaceutical companies[136]. - The company intends to enrich its service offerings and expand overseas by seeking investments for strategic capacity expansion and enhancing collaboration with multinational companies[133]. - The company aims to rebalance profitability by improving the gross margin of its core small molecule CDMO business and controlling costs in emerging businesses[137].

Company Overview - Lianhua Supermarket operates a total of 3,152 stores across 26 provinces and municipalities in China, maintaining its leading position in the fast-moving consumer goods retail sector[1]. - The total number of stores includes various formats, with significant contributions from regions like Shanghai (1,097 stores) and Zhejiang (491 stores)[2][3]. - The company was the first Chinese retail chain to be listed on the Hong Kong Stock Exchange on June 27, 2003[1]. - As of December 31, 2024, the group operates a total of 3,152 stores, a decrease of 204 stores compared to the end of 2023, with approximately 84.0% located in the Greater East China region[105]. Brand Development and Recognition - The company has expanded its retail formats to include large comprehensive supermarkets, hypermarkets, and convenience stores under various brands, including "Century Lianhua," "Lianhua Supermarket," and "Hualian Supermarket"[1]. - Lianhua Supermarket has been recognized as one of the "Outstanding Franchise Brands" by the China Chain Store & Franchise Association in recent years[1]. - The company has received accolades such as being named a "Demonstration Enterprise for Common Prosperity" by the Zhejiang Provincial Federation of Industry and Commerce[9]. - Lianhua Supermarket's self-developed beef brand "Baili Beef" won the 2024 German iF Design Award, showcasing its commitment to innovation and product development[13]. - Lianhua Supermarket's self-owned brands "800 Li Beef" and "Youxiang" were recognized as "Outstanding Private Brands" for 2024[25]. Financial Performance - The company's revenue for the fiscal year 2024 was approximately RMB 19.71 billion, a decrease of about RMB 2.13 billion or 9.7% compared to the previous year[63]. - Gross profit for the same period was approximately RMB 2.37 billion, down RMB 409 million or 14.7% year-on-year, with a gross margin of 12.03%, a decline of 0.71 percentage points from 12.74% in the previous year[64]. - The net loss attributable to shareholders was RMB 358.77 million, with a net loss margin of 1.82%[55]. - The group reported a cash flow deficit of RMB 825.91 million for the year[55]. - The group's other income and gains amounted to approximately RMB 636 million, an increase of about RMB 128 million, representing a growth of approximately 25.3% year-on-year[67]. Strategic Initiatives - The company is enhancing its supply chain and product strategy by developing key products, optimizing category structures, and improving fresh product capabilities to strengthen market competitiveness[39]. - The company is accelerating its digital transformation strategy, focusing on operational efficiency through digitalization, supply chain optimization, and integrated logistics systems[42]. - The company aims to enhance its core business by transforming large supermarkets into smaller, community-focused formats and upgrading product structures[100]. - The company is focusing on a dual strategy of restructuring and transformation to improve revenue while actively pursuing cost reduction and efficiency enhancement[36]. - The company plans to implement a "3+3" strategy in 2025, emphasizing strategic transformation, supply chain enhancement, and increased digital investment[44]. Store Operations and Changes - The company closed long-term loss-making outlets as part of a strategic adjustment, impacting overall sales scale[63]. - The company sold all equity of three subsidiaries, including Lianhua Supermarket (Jiangsu), for a total consideration of approximately RMB 146 million, with proceeds used to improve working capital[37]. - A total of 257 new stores were opened during the review period, with 168 located in the Yangtze River Delta, accounting for 65.4% of new openings[101]. - The company closed 461 stores, including 121 direct-operated stores and 340 franchise stores, to optimize store structure and improve cost efficiency[101]. - The group opened 231 new supermarket stores during the review period, including 80 direct-operated and 151 franchised stores, while closing 296 stores, resulting in a net decrease of 65 stores[104]. Digital Transformation and Innovation - The company is focusing on digital transformation, aiming to transition from "information-based" to "intelligent" supply chain systems[132]. - The group implemented a digital management platform to enhance operational efficiency and market competitiveness, transitioning from "channel addition" to "digital reconstruction"[110]. - The company has appointed a new Chief Information Officer to lead its digital initiatives and improve data management[192]. - The company is actively pursuing new product development and technological advancements to enhance operational efficiency[191]. Market Challenges and Outlook - The retail environment remains challenging, with intensified competition and changing consumer shopping habits affecting performance[63]. - The company anticipates ongoing challenges in the Chinese economy but remains optimistic about long-term growth trends and consumer behavior shifts towards more rational purchasing decisions[42]. - Emerging consumption trends such as health and wellness are expected to drive future growth opportunities in the retail sector[60]. - The retail industry is expected to experience a recovery opportunity driven by policy changes by 2025, with a focus on performance improvement and transformation of large supermarkets and hypermarkets[138]. Leadership and Governance - Mr. Zhu Dingping appointed as Executive Director and Deputy General Manager of the company starting January 7, 2025[166]. - Mr. Pu Shaohua serves as the President and Deputy Secretary of the Party Committee of Bailian Group, with extensive experience in the seafood and dairy industries[167]. - Ms. Hu Xiao has held various leadership roles at Alibaba Group, contributing to strategic investments and management[169]. - The management team is committed to maintaining a strong governance structure to support strategic decision-making and compliance[193]. Share Issuance and Capital Management - In 2024, the company issued 360 million new domestic shares to Bailian Group, raising approximately RMB 360 million to support business ecosystem transformation and enhance operational capital[36]. - The company plans to issue up to 360,000,000 new domestic shares at a subscription price of RMB 1.00 per share, representing a premium of approximately 249.37% over the H-share closing price of about HKD 0.315 on May 10, 2025[151]. - Approximately 85% of the net proceeds from the share issuance will be used for business ecosystem transformation, with about 39.2% and 35% allocated for supermarket and hypermarket store transformations respectively[153].

Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$176.4 million, representing a decrease of 5.0% from the previous year[24] - Overall gross profit amounted to approximately HK$36.3 million, an increase of 41.6% from the previous year[24] - Loss attributable to owners of the Company was approximately HK$9.1 million, compared to HK$26.1 million in 2023[24] - Basic loss per share for the year ended December 31, 2024, was HK3.39 cents, down from HK9.77 cents in 2023[24] - The precision parts and components segment's turnover decreased by 5.0% to approximately HK$176.4 million compared to 2023[26] - Excluding one-off losses from forward currency contracts, the precision parts segment recorded a profit of approximately HK$3.7 million[26] - The Group incurred a loss of approximately HK$10.6 million in forward currency contracts in 2024, down from HK$16.7 million in 2023[25] - The overall gross profit margin of the Group increased by 6.8 percentage points to 20.6% in 2024 compared to 2023[31] - The Group's gross profit increased by HK$10.7 million to approximately HK$36.3 million in 2024[48] - Loss before finance costs decreased by HK$17.6 million to approximately HK$8.4 million in 2024[48] Market Conditions - The European market faced low economic growth rates, impacting the Group's major customers[25] - The Group's financial performance was affected by rising geopolitical tensions and ongoing tariff wars, leading to economic uncertainty[25] - The Group benefited from an increase in customer order intake and clearance of excess inventory, improving production facility utilization[25] Financial Position - The Group's total borrowings amounted to approximately HK$3.0 million as of December 31, 2024[41] - The aggregate balance of bank balances and cash was approximately HK$67.2 million at the end of the reporting period[42] - The Group's financial position remains healthy, with a negative gearing ratio indicating a "net cash" position[49] - Finance costs decreased by 35.9% to approximately HK$0.3 million due to a decline in financing activities[31] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and Chief Executive Officer, which are held by the same individual[65] - The Board includes a balanced composition of Executive Directors and Independent Non-executive Directors, ensuring strong independent judgment[67] - The company has established Board committees to delegate various responsibilities, enhancing governance and oversight[74] - The Board formulates overall strategy, monitors financial performance, and aligns goals with market conditions to maximize long-term shareholder value[76] - The Company has not established a corporate governance committee, with the Board responsible for corporate governance duties[83] Board and Committee Activities - The Company held five regular board meetings and one annual general meeting during the year ended December 31, 2024, with all directors attending at least 80% of the meetings[81] - The Remuneration Committee currently comprises 3 members, all of whom are independent non-executive directors[115] - During the year, the Remuneration Committee held two meetings, with all members attending 100% of the meetings[116][118] - The Audit Committee held three meetings during the year, with members required to meet at least twice a year with the Company's auditors[175] - The Nomination Committee consists of 1 executive director and 3 independent non-executive directors, with a total of 2 meetings held during the year[131] Diversity and Inclusion - The Company is committed to improving Board diversity and achieved its diversity objectives in 2024[144] - The Board Diversity Policy aims for at least one female member and at least 33% of the Board to be non-executive or independent non-executive directors[146] - The gender ratio in the overall workforce is 64.90% female (453) and 35.10% male (245) as of the date of the report[148] - The Board consists of 20% female (1) and 80% male (4) members, while senior management is 0% female (0) and 100% male (2)[148] Risk Management and Internal Controls - The Board conducted a review of the effectiveness and adequacy of the Group's risk management and internal control systems, which were deemed effective and adequate[189] - The internal audit team reports directly to the Audit Committee and the Board, conducting reviews on material controls and compliance with policies[195] - The Group's risk management processes include identifying risks, assessing their impact, and implementing strategies to mitigate them[193] - The Group's internal control systems are designed to protect assets, ensure compliance with laws, and provide reliable financial information[189] Remuneration Policies - The Company's remuneration policy ensures that compensation is based on skill, knowledge, responsibilities, and involvement in the Company's affairs[125] - The remuneration packages for Executive Directors include basic salary, pensions, and discretionary bonuses, reflecting the Company's performance and profitability[125] - The remuneration for Independent Non-executive Directors mainly consists of a Director's fee, determined by their duties and responsibilities[125]

Financial Performance - Dmall Inc. achieved a revenue of RMB 1,859,002,000 in 2024, representing a 17.2% increase from RMB 1,585,357,000 in 2023[14] - The gross profit for 2024 was RMB 746,376,000, up 34.6% from RMB 554,701,000 in 2023[14] - The company reported a loss for the year of RMB 2,220,276,000, which is a significant increase from a loss of RMB 655,439,000 in 2023[14] - Adjusted profit from continuing operations for 2024 was RMB 29,795,000, compared to a loss of RMB 276,704,000 in 2023[14] - Total assets as of December 31, 2024, were RMB 1,659,186,000, an increase from RMB 1,377,772,000 in 2023[14] - Total liabilities decreased to RMB 1,018,157,000 in 2024 from RMB 8,142,896,000 in 2023[14] - The net assets improved to RMB 641,029,000 in 2024, recovering from net liabilities of RMB 6,765,124,000 in 2023[14] Market Expansion and Strategy - Dmall Inc. was listed on the Stock Exchange of Hong Kong in 2024, marking a significant milestone for the company[15] - Future strategies include continued focus on digital retail solutions and potential market expansion initiatives[15] - The international business accounted for 8.5% of the total revenue in 2024, driven by significant growth in the Southeast Asian market[21] - The Group's dual-engine strategy focuses on both Chinese and international markets, enhancing collaboration with leading retail enterprises[36] - The Group aims to strengthen its leadership position in the Chinese market while promoting globalization strategies in collaboration with industry leaders[113] Customer Engagement and Retention - The number of customers served by the Group reached 591 in 2024, indicating a growing customer base[16] - The Group's dollar-based net retention rate reached 114% in 2024, indicating strong customer retention and loyalty[95] AI and Technology Innovations - The Group launched ten major innovative AI applications in 2024, enhancing the digital intelligence capabilities across the retail chain[24] - The Dmall Solution 3.0 was successfully launched, incorporating AI technology and introducing cutting-edge applications[31] - The Group's AI agent products include AI Clearance, AI Customer Service, and AI Replenishment, with the AI Replenishment System winning an award in 2024[46] - The AI Clearance program was deployed in over 200 Wumart stores, generating annual profit growth exceeding RMB 1 million for Wumei Group through real-time discount recommendations[50] - AI Customer Service achieved an online resolution rate of 80%, significantly reducing labor costs while maintaining high user satisfaction[50] Operational Efficiency - The Group's intelligent energy efficiency solutions promote energy conservation and emission reduction, contributing to sustainable retail operations[61] - The Dmall store dashboard product has enabled store managers to access key performance indicators in real-time, resulting in an annual saving of RMB 439,000 in store manager working hours[107] - The transportation management system implemented with Sichuan Hongyuan has improved loading efficiency by 10% and increased handover efficiency by 10% through paperless operations[105] Financial Adjustments and Restructuring - Following the restructuring in April 2024, the Group divested all equity interests in Dmall Fresh (Beijing) and ceased operations of the Dmall APP, focusing on retail core service cloud solutions[109] - The Group recorded a loss for the year from continuing operations of RMB2,453.4 million, an increase from RMB749.0 million in the previous year, representing a 227.5% increase[174][176] - The fair value change of convertible redeemable preferred shares increased to RMB 2,275,701 thousand in 2024 from RMB 476,160 thousand in 2023, reflecting a substantial improvement[191] Revenue Breakdown - Revenue for retail core service cloud grew by 39.3% from RMB 1,298.7 million in 2023 to RMB 1,809.5 million in 2024[39] - The retail core service cloud accounted for 97.3% of total revenue in the Reporting Year, with AIoT solutions contributing 55.0% and operating system revenue at 42.3%[117] - E-commerce service cloud revenue plummeted by 98.6% from RMB300.0 million in 2023 to RMB4.3 million in the Reporting Year, as customers shifted to in-house operations[126] Cost Management - The Group's revenue cost increased by 8.0% from RMB1,030.7 million in 2023 to RMB1,112.6 million in the Reporting Year, primarily due to a rise in outsourcing and labor costs from RMB465.5 million to RMB856.5 million[146] - Selling and marketing expenses decreased by 38.8% from RMB150.9 million for the year ended December 31, 2023 to RMB92.4 million for the Reporting Year[161] - General and administration expenses increased by 18.7% from RMB259.4 million for the year ended December 31, 2023 to RMB308.0 million for the Reporting Year[166] Corporate Social Responsibility - The Group is committed to corporate social responsibility, implementing energy efficiency solutions to reduce carbon emissions in retail operations[25] - The Group's intelligent energy efficiency solutions promote energy conservation and emission reduction, contributing to sustainable retail operations[61]