Precision Medicine and Cancer Treatment - The company achieved significant breakthroughs in precision medicine, focusing on CAR-T and BNCT therapies, solidifying its leadership in the cancer treatment sector[11] - A strategic investment of RMB 48 million was completed in February 2024 for the development of the LY007 CAR-T product, which has successfully completed 12 clinical trials[12] - The group aims to accelerate the commercialization of the CAR-T product LY007 and enter domestic Phase II clinical trials, seeking breakthroughs through patent exports[21] - Shanghai Longyao received approval for the IND application of LY007, the first CAR-T therapy targeting CD20 in China, with 12 patients successfully treated as of the report date[30] - The company is actively pursuing strategic collaborations and international technology licensing to drive growth in its three core precision medicine business segments[11] - The company plans to enhance its cancer precision testing and treatment integrated biotech service platform, focusing on innovative drug development and clinical transformation[11] Boron Neutron Capture Therapy (BNCT) Development - The company secured a bank loan of RMB 50 million for the construction of the Boron Neutron Capture Therapy Hospital, which is expected to begin operations in Q4 2025[13] - The company faced delays in the Boron Neutron Capture Therapy Hospital's construction due to extreme weather conditions, necessitating emergency repair plans[13] - The construction of the boron neutron capture therapy center is ongoing, with the opening expected to be delayed to Q4 2025 due to severe weather impacts[34] - The group plans to ensure the opening of BNCT hospitals and develop a network of BNCT treatment centers in Asia, aiming for the first sales of BNCT equipment[21] - The company has entered into agreements to purchase boron neutron capture therapy equipment and drugs, aiming to be the first provider of this advanced cancer treatment service in the Greater China region[79] Financial Performance and Revenue - The group recorded a revenue of approximately HKD 70,509,000 for the fiscal year ending December 31, 2024, representing a significant decrease of about 66.74% compared to HKD 211,985,000 for the fiscal year ending December 31, 2023[24] - The revenue from medical laboratory testing and health check services decreased by 79.70% from approximately HKD 192,910,000 in 2023 to about HKD 39,158,000 in 2024[26] - The sales revenue of the healthcare and pharmaceutical products segment decreased from approximately HKD 881,000 in 2023 to about HKD 686,000 in 2024, a decline of approximately 22.13%[31] - The insurance brokerage services segment saw a significant revenue increase from approximately HKD 18,163,000 in 2023 to about HKD 30,600,000 in 2024, an increase of 68.47%[35] - The logistics services segment's revenue increased from approximately HKD 31,000 in 2023 to about HKD 65,000 in 2024, representing a growth of 110%[36] - The company recorded a gross loss of approximately HKD 4,940,000 in 2024, a decrease of about HKD 39,264,000 compared to a gross profit of HKD 34,324,000 in 2023[38] - The company recorded a net loss attributable to shareholders of approximately HKD 198,146,000 for the fiscal year 2024, an increase from HKD 95,447,000 in fiscal year 2023[59] - The increase in net loss was primarily due to a decrease in demand for COVID-19 nucleic acid testing and intensified market competition in medical laboratory testing and health check services[59] Strategic Collaborations and Partnerships - The company signed a memorandum of cooperation with the Hong Kong-Shenzhen Innovation and Technology Park in April 2024, enhancing its integration into the Greater Bay Area biotech ecosystem[15] - The group has established a joint laboratory with Shanghai Guanhua Pharmaceutical Technology Co., Ltd. to enhance its one-stop testing solution capabilities, expanding its service footprint in the Asia-Pacific region[19] - The company has partnered with Abbott to upgrade its medical laboratory, becoming the first private lab in Hong Kong to install a customized virtual biochemical immunoassay system, improving efficiency and reducing human error[75] - The company has established partnerships with several domestic hospitals, including Huashan Hospital, to provide treatment services at the boron neutron capture therapy center set to open in Q4 2025[80] Corporate Governance and Management - The company has adopted the GEM Listing Rules Appendix C1 Corporate Governance Code principles and has complied with the code provisions, with one exception regarding attendance at the annual general meeting[123] - The board consists of three executive directors and three independent non-executive directors as of December 31, 2024[125] - The company emphasizes the importance of corporate governance for its success and has implemented measures to ensure transparency and accountability to shareholders[123] - The board is responsible for the overall strategic development of the group and monitoring management, administration, and operations[130] - The company has established appropriate insurance for directors to protect against legal claims[129] Employee and Operational Metrics - The group employed a total of 141 full-time employees as of December 31, 2024, down from 162 in 2023[106] - Total employee costs for the fiscal year 2024 were approximately HKD 65,779,000, a decrease from HKD 92,607,000 in the fiscal year 2023[106] - Contributions to the mandatory provident fund plan amounted to approximately HKD 2,231,000 for the fiscal year 2024, down from HKD 2,996,000 in the fiscal year 2023[107] Risk Management and Compliance - The company has adopted a risk management system aligned with the COSO framework to ensure operational effectiveness and compliance[176] - The group has not established an internal audit function due to cost considerations but will continue to review the necessity of such a department annually[178] - The company has implemented measures to ensure the accuracy and timeliness of its disclosures regarding inside information[178] Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report for 2024 covers key business segments including medical laboratory testing services in Hong Kong and tumor immunotherapy in China[197] - The board oversees the implementation of ESG policies and strategies, emphasizing the importance of a robust ESG framework for sustainable development[200] - The report covers the promotion of ESG concepts to employees and clients since 2016, with a summary of results expected for the 2024 fiscal year[198]

Financial Performance - The Group achieved contracted sales of RMB20.31 billion in 2024, a decrease of 43% compared to the previous year[16]. - The consolidated revenue for the year ended 31 December 2024 was RMB13.2 billion, with a loss attributed to shareholders of RMB4.57 billion[21]. - The Group's total revenue for the year ended December 31, 2024, decreased to RMB 13.20 billion from RMB 17.45 billion in 2023, primarily due to a reduction in property sales revenue by RMB 4.37 billion[40]. - For the year ended 31 December 2024, the Group reported a loss attributable to owners of RMB4,570.8 million, a decrease of RMB4,913.5 million compared to a profit of RMB342.7 million for the year ended December 31, 2023[54]. - The Group recorded a loss before tax of approximately RMB 3.51 billion for 2024, compared to a profit of RMB 1.79 billion in 2023[84]. - The Group's net loss attributable to owners for 2024 was RMB 4.57 billion, compared to a profit of RMB 342.72 million in 2023[38]. - The revenue from the property development segment decreased to RMB11,898.4 million, representing 90% of total revenue, down from RMB16,263.7 million, which was 93% of total revenue for the previous year[56]. - The property development segment reported a loss of RMB2,903.7 million, a decrease of RMB3,957.3 million compared to a profit of RMB1,053.6 million in the previous year[56]. Assets and Liabilities - The Group's total assets as of December 31, 2024, were RMB 75.99 billion, down from RMB 91.10 billion in 2023[38]. - The Group's total liabilities decreased to RMB 54.93 billion in 2024 from RMB 64.75 billion in 2023, a reduction of 15.1%[84]. - The Group's total shareholders' equity decreased from RMB22,484.5 million as of December 31, 2023, to RMB17,704.4 million as of December 31, 2024, primarily due to the loss attributable to owners[60]. - The Group's deposits, bank, and cash balances decreased by 24% to RMB3,913.1 million as of December 31, 2024, from RMB5,161.3 million as of December 31, 2023[61]. - The net debt increased by RMB55.0 million to RMB17,744.4 million as of December 31, 2024, from RMB17,689.4 million as of December 31, 2023[67]. - The net debt ratio increased to 84% as of December 31, 2024, from 67% as of December 31, 2023, due to the decline in net assets caused by the large loss incurred[67]. Rental and Investment Income - Rental income from commercial properties and business parks increased from RMB1.94 billion to RMB2.03 billion, representing a year-on-year growth of 4.6%[23]. - The rental housing business generated RMB210 million in rental income in 2024, managing approximately 6,800 rooms under the "Gemdale Strongberry" brand[24]. - The Group's investment properties generated a rental income of approximately RMB 2.24 billion in 2024, representing a year-on-year growth of 3%[95]. - The revenue from the property investment and management segment increased to RMB1,297.5 million, representing 10% of total revenue, up from RMB1,188.6 million, which was 7% of total revenue in the previous year[59]. - The property investment and management segment reported a profit of RMB935.3 million, a decrease of RMB1,141.2 million compared to a profit of RMB2,076.5 million in the previous year[59]. Market and Economic Context - The Chinese economy grew by 5% in 2024, despite a 17% decline in national new home sales compared to 2023[14]. - The Group anticipates China's economy to grow at a rate of 4-6% in 2025, with a mild recovery expected in the property market[30][34]. - The average selling price of properties in 2024 was approximately RMB 13,400 per square meter, reflecting a 5% decline from the previous year[89]. Corporate Governance - The Company has adopted and complied with all mandatory disclosure requirements and applicable code provisions throughout FY2024, with exceptions noted for code provisions C.1.6, C.5.1, and F.2.2[127]. - The company is committed to maintaining high standards of corporate governance, emphasizing a quality board, effective risk management, and transparency to protect shareholder interests[134]. - The independent non-executive directors play a crucial role in monitoring the company's performance against corporate goals and ensuring good governance practices[144]. - The Company emphasizes the importance of corporate culture in fostering employee development and enhancing governance and sustainable growth[139]. - The Board is responsible for ensuring the continuity of leadership, sound business strategies, and adequate financial and management resources to implement adopted business strategies[172]. Employee and Board Composition - As of December 31, 2024, the Group has 2,454 employees, with male employees at 59% and female employees at 41%[166]. - The Board comprises 9 Directors, including 4 executive Directors, 2 NEDs, and 3 INEDs, with one female Director representing 11% of the Board[157]. - The Company will continue to seek opportunities to increase female representation on the Board as suitable candidates are identified[160]. - The Nomination Committee periodically reviews Board composition to enhance diversity and ensure alignment with the Company's strategic objectives[152]. Strategic Focus - The Group aims to improve overall asset quality by terminating projects with poor performance in advance[101]. - The Group is committed to enhancing its market position through strategic investments and operational improvements[101][102]. - The focus on high-quality and affordable rental apartments aims to cater to the youth demographic[101]. - The strategic planning and management experience of the executive team is expected to support the long-term development of the rental housing business[105][107][111].

Market Presence and Expansion - The company has established a presence in over 40 cities, focusing on first and second-tier cities in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta region[11]. - The company has a strong focus on market expansion, particularly in key economic circles such as the Bohai Rim and central-western regions[11]. - The group is expanding its market presence with multiple projects across major cities, including Guangzhou, Chengdu, and Shanghai, focusing on residential and commercial developments[61][62][63]. Financial Performance - The company's revenue for 2024 was approximately RMB 11,061.5 million, a decrease of 30.0% from RMB 15,807.1 million in 2023[32]. - Property development revenue fell by 32.6% to approximately RMB 9,462.4 million, primarily due to a decrease in the total delivered area from 924,958 square meters in 2023 to 623,944 square meters in 2024[33]. - The average selling price slightly decreased from RMB 15,187 per square meter in 2023 to RMB 15,165 per square meter in 2024[33]. - The company's investment property revenue decreased by 4.6% to approximately RMB 888.1 million in 2024[34]. - Hotel operations revenue decreased by 14.2% to approximately RMB 711.0 million, mainly due to the sale of one hotel[35]. - The group recorded a net loss of approximately RMB 8,151.0 million in 2024, down from a loss of about RMB 18,979.3 million in 2023[47]. - The debt ratio increased to 789.6% as of December 31, 2024, compared to 396.3% on December 31, 2023, indicating a significant rise in leverage[51]. - The financing cost for 2024 was approximately RMB 2,929.1 million, slightly up from RMB 2,852.8 million in 2023, related to various loans and certain preferred notes[44]. Sustainability and ESG Practices - The company emphasizes the development of residential and commercial property projects while prioritizing Environmental, Social, and Governance (ESG) practices for sustainable development[11]. - The company is committed to enhancing its practices in ESG, aiming for comprehensive improvements in environmental, social, and governance aspects[11]. - The company has 109 projects certified for green building as of 2024, showcasing its commitment to sustainability[23]. Governance and Management - The company has appointed new independent non-executive directors, enhancing its governance structure[6]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[89]. - The company has a strong commitment to effective corporate governance practices, which are essential for enhancing investor confidence and ensuring long-term success[80]. - The company has adopted a mission of "Building a Future with Heart," focusing on asset management, land reserve strategies, and diversified industry layout[83]. - The company has implemented a code of conduct that emphasizes problem-solving, effective communication, and customer-first service[86]. Debt Management and Financial Strategy - The company plans to strengthen sales collection and reduce debt while maintaining a long-term focus on strategic innovation[24]. - The company continues to engage actively with creditors to optimize its debt structure and protect stakeholders' interests[20]. - The group’s sales cost decreased by 50.3% from approximately RMB 18,446.3 million in 2023 to about RMB 9,172.8 million in 2024, primarily due to a reduction in the total delivered construction area and construction cost per square meter[36]. Employee and Talent Management - As of December 31, 2024, the group employed approximately 1,800 employees, a decrease from about 2,100 employees as of December 31, 2023[67]. - Employee benefits expenditure (excluding directors and CEO compensation) for the year ending December 31, 2024, was approximately RMB 460.3 million[67]. - The group continues to provide training and development programs for its employees[68]. Shareholder and Financial Reporting - The company plans to announce its interim results on August 28, 2024, and its full-year results on March 28, 2025[6]. - The company reported no final dividend for the year ending December 31, 2024, consistent with the previous year[144]. - The group’s financial performance and key performance indicators are detailed in the consolidated income statement on page 72[143]. Risk Management - The group has a robust risk management system in place to monitor financial controls and compliance with legal regulations[88]. - The board is responsible for maintaining a sound risk management system to protect the group's assets and shareholders' interests[123]. Corporate Social Responsibility - The group donated approximately RMB 300,000 for charitable purposes during the year[152].

Financial Performance - In 2024, the company shifted its strategic focus from rapid revenue growth to a more stable, high-quality development model, resulting in a contraction in revenue but significant improvements in operating cash flow and gross margin [3]. - Total revenue for 2023 was RMB 1,751,045 thousand, a decrease of 30.3% compared to 2022's RMB 1,557,643 thousand [12]. - The company reported a net loss of RMB 570,272 thousand in 2023, with an expected increase to RMB 608,925 thousand in 2024 [12]. - In 2024, the company's total revenue reached 1,221.8 million, a year-on-year decrease of 30.2%, but showed significant improvement in the second half compared to the first half [20]. - Overall gross profit decreased by 28.1% from RMB 588.5 million to RMB 423.1 million, with gross margins of 33.6% and 34.6% for 2023 and 2024, respectively [74]. - The net loss for the fiscal year ended December 31, 2024, increased by 6.8% to RMB 608.9 million from RMB 570.3 million for the fiscal year ended December 31, 2023 [86]. Customer Growth and Market Presence - The number of enterprise customers increased from 397 in 2023 to 521 in 2024, representing a year-on-year growth of 31.2%, with over 70% of these customers in the manufacturing sector [4]. - The total number of customers increased from 397 in 2023 to 521 in 2024, indicating a growth in customer base despite revenue decline [14]. - Revenue from the manufacturing sector represented 67.2% of total revenue in 2023, increasing to 80.3% in 2024 [17]. - The number of premium customers decreased from 81 in 2023 to 68 in 2024, with premium customer revenue dropping from RMB 1,427,718 thousand to RMB 845,185 thousand [14]. Technology Development and Innovation - The company has transitioned its technology development focus from AI1.0 to AI2.0, emphasizing the application of large models in specific industries, which has led to a significant increase in the proportion of software business [4]. - The company applied for a total of 1,365 patents related to AI and industrial large models, including 1,118 invention patents [22]. - The AInnoGC industrial large model achieved the highest rating of 4+ in the first batch of industrial large model standard compliance verification by the China Academy of Information and Communications Technology [22]. - The launch of the AInnoGC 2.0 version in March 2024 marked a significant milestone in the company's technological capabilities in the industrial large model field [25]. - The AI Agent development platform reduces the development cycle of generative AI applications by over 60%, supporting various industrial scenarios such as equipment maintenance and quality inspection [30]. Strategic Partnerships and Collaborations - Strategic partnerships were established with DingTalk and Shandong University to enhance collaboration in the large model enterprise software market and research [24]. - A strategic cooperation agreement was signed with DingTalk to create a comprehensive smart factory solution covering R&D, production, marketing, and operational management [40]. Cost Management and Financial Health - General and administrative expenses fell by 35.0% from RMB 406.6 million to RMB 264.4 million, primarily due to effective cost control [76]. - R&D expenses decreased by 21.1% from RMB 449.8 million to RMB 355.1 million, attributed to improved R&D efficiency [77]. - The net impairment loss of financial assets for the fiscal year ended December 31, 2024, was RMB 0.9 million, a significant decrease from RMB 86.8 million for the fiscal year ended December 31, 2023, primarily due to a reduction in impairment provisions for trade receivables [78]. ESG and Corporate Governance - The company emphasizes the importance of ESG (Environmental, Social, and Governance) principles, aiming to drive innovation and provide high-value AI products and solutions [118]. - The company has established a comprehensive ESG governance structure, with the board of directors overseeing ESG management policies and strategies [119]. - The company has complied with all relevant laws and regulations during the reporting period, with no significant violations reported [124]. Future Outlook and Strategic Focus - The company aims to capitalize on the growing demand for digital transformation driven by artificial intelligence, with a positive outlook for the "AI + manufacturing" sector in 2025 [5]. - The company plans to deepen investment in industrial AI model technology and related generative AI applications, ensuring a leading position in technology [48]. - In 2025, the company will focus on empowering industrial applications with AI technologies, leveraging existing AI capabilities and hardware product matrices to accelerate digital and intelligent transformation for enterprise clients [63].

Financial Performance - The net toll revenue attributable to the group for 2024 is projected to be RMB 2,668 million, representing a 24% increase from 2023[6]. - The profit attributable to equity shareholders for 2024 is expected to be RMB 461 million, a decrease of 13% compared to 2023[12]. - The total revenue for the group in 2023 is reported at RMB 2,951 million, which is an increase of 44% from RMB 2,050 million in 2022[13]. - The overall net profit for 2023 is reported at RMB 638 million, a 95% increase from RMB 327 million in 2022[12]. - The company's revenue from investment projects for 2024 is approximately RMB 2.809 billion, with a profit attributable to equity shareholders of about RMB 461 million, representing a 13% year-on-year decline in basic earnings per share to RMB 0.1496[21]. - The total revenue for the group decreased by 5% year-on-year to approximately RMB 2.809 billion, with a net profit attributable to equity shareholders of the company declining by 13% to approximately RMB 461 million[79]. Revenue Sources - The revenue from the Guangshen Expressway is anticipated to be RMB 1,298 million in 2024, slightly down from RMB 1,301 million in 2023[13]. - The revenue from the Ningtang Interchange is projected to be RMB 141 million in 2024, a significant decrease from RMB 369 million in 2023[13]. - The overall toll revenue from the group's three highways showed growth, with significant increases in traffic and toll revenue on the Shenzhen section of the Yanjiang Expressway due to the opening of its second phase and the Shenzhen-Zhongshan Link[23]. - The total toll revenue for the Guangzhou-Shenzhen Expressway in 2024 is approximately RMB 2.885 billion, with an average daily toll revenue of about RMB 7.88 million, reflecting a 0.5% year-on-year decline[59]. - The total toll revenue for the Guangzhu West Line Expressway in 2024 is approximately RMB 1.269 billion, with a daily average toll revenue of about RMB 3.47 million, reflecting a year-on-year decrease of 3%[65]. - The total toll revenue for the Shenzhen section of the Yanjiang Expressway in 2024 is approximately RMB 736 million, with a daily average toll revenue of about RMB 2.01 million, representing a year-on-year increase of 17%[71]. Debt and Financial Ratios - The debt-to-asset ratio for 2024 is projected to be 66%, indicating a stable financial leverage position[7]. - The net debt-to-equity ratio is expected to be 40% in 2024, reflecting a conservative approach to financing[7]. - The total assets of the company as of December 31, 2023, amount to RMB 12.413 billion, while total liabilities are RMB 4.710 billion, resulting in a debt-to-asset ratio of 38%[14]. - The company's net debt-to-equity ratio is projected to rise to 74% by 2024, indicating an increase in leverage[17]. - The debt-to-asset ratio for the group was 40% in 2024, compared to 38% in 2023, indicating an increase in leverage[96]. - The net debt-to-equity ratio rose to 74% in 2024 from 64% in 2023, reflecting increased borrowing relative to equity[96]. Dividends - The company plans to distribute a final dividend of RMB 0.0715 per share for 2024, maintaining a payout ratio of 100% of the profit attributable to equity shareholders[21]. - The total regular dividend for the year ending December 31, 2024, is proposed at RMB 0.1495 per share, a decrease of 13% from RMB 0.1710 per share in the previous year[29]. - The regular dividend payout ratio is expected to be 100% of the group's profit attributable to equity shareholders for the year ending December 31, 2024[29]. - The company proposed a final dividend of RMB 0.0715 per share, compared to RMB 0.1155 per share for the previous year, reflecting a decrease of approximately 38.1%[179]. - The total dividend for the year will amount to RMB 0.1495 per share, down from RMB 0.1710 per share in the previous year, indicating a reduction of about 12.5%[179]. Infrastructure Development - The company aims to expand its infrastructure development within the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on strategic land development[4]. - The group plans to actively promote land development projects along the Guangshen Expressway, including the Luogang Interchange and Tongle Interchange, as important profit supplements for shareholders[24]. - The company is committed to exploring acquisition opportunities for other highway assets in the Greater Bay Area, focusing on "highway + road-related economy" development opportunities[25]. - The group is actively communicating with Guangdong Highway Construction to explore opportunities for land development along the Guangzhou-Shenzhen Expressway, focusing on key projects such as the Machong Interchange and Chang'an Interchange[77]. Economic Outlook - The company anticipates a stable economic environment in 2024, with GDP growth projected at 5.0% for China, benefiting its operations in the Greater Bay Area[22]. - In 2024, China's GDP is projected to grow by 5.0%, reaching approximately RMB 134.9 trillion[52]. - The Greater Bay Area's GDP is estimated at RMB 14.8 trillion, accounting for about 11% of the national GDP in 2024[53]. - The new infrastructure and public utility concession management regulations extend the maximum concession period to 40 years, increasing by 10 to 15 years compared to the previous limit[55]. Governance and Management - The board of directors is composed of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a third of the board consists of independent members[116]. - The company adheres to the Corporate Governance Code and has established governance procedures to enhance operational efficiency and shareholder value[111]. - The company has established a mechanism for directors to seek independent professional advice at the company's expense when necessary[117]. - The company has arranged appropriate insurance to protect directors and senior personnel against legal claims[119]. - The audit committee is responsible for reviewing and monitoring the independence and objectivity of external auditors, as well as approving their remuneration[127]. - The company has adopted a comprehensive risk management framework that includes identifying, communicating, mitigating, and reporting significant risks, including ESG risks[149]. Employee and Labor Policies - The group offers competitive labor compensation based on current market levels and employee performance, including discretionary bonuses and retirement contributions[110]. - The company has implemented training programs to enhance employee productivity and address skill gaps, contributing to the achievement of annual key work tasks[110]. - The company aims for gender diversity in its workforce, achieving a balanced gender ratio of 50% male and 50% female among all employees by December 31, 2024[123]. Risk Management - The company maintains a "zero tolerance" policy towards corruption, bribery, and fraud, supported by a code of conduct and a whistleblowing policy[148]. - The risk assessment identified macroeconomic, financial, exchange rate, road safety, and toll system security as the highest level risks faced by the company[155]. - The company integrates risk management into normal business processes and aligns it with strategic objectives[147]. - The internal control procedures include a detailed budgeting, information reporting, and performance monitoring system[152]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[162]. - The company’s annual general meeting serves as a key communication channel with shareholders, allowing them to express their opinions directly to the board[165]. - The company participated in over 20 investor relations activities this year, engaging with more than 150 investors and analysts[166]. - The company completed the editing and disclosure of its annual and semi-annual reports on time, providing in-depth analysis of its operational and financial conditions[167].

Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 346.3 million, with a profit attributable to shareholders of HKD 3.9687 billion, resulting in a basic earnings per share of HKD 0.6226[8]. - The group's revenue for the year ending December 31, 2024, was HKD 346.3 million, a decrease of 4.0% compared to the previous year[16]. - Gross profit for the same period was HKD 197.7 million, down 5.4% year-on-year[16]. - The group recorded a profit attributable to owners of HKD 3.9687 billion, compared to a loss of HKD 278.2 million in the previous year[16]. - Basic earnings per share were HKD 0.6226, compared to a loss per share of HKD 0.0437 in the previous year[16]. - The group reported other income of approximately HKD 78.1 million for the year, down from HKD 95.7 million in 2023, primarily due to decreased bank interest income[51]. - The group incurred a fair value loss on investment properties of approximately HKD 100.2 million, compared to a loss of HKD 253.5 million in 2023[52]. - The total operating costs for the year were approximately HKD 265.9 million, a slight decrease of about 1% from HKD 267.9 million in 2023[51]. - The group experienced a net other loss of approximately HKD 25.5 million, compared to a net other income of HKD 0.6 million in 2023, mainly due to foreign exchange losses[51]. - The anticipated global growth rate for 2025 and 2026 is projected at 3.3%, lower than the historical average of 3.7% from 2000 to 2019[48]. Economic Outlook - The GDP of China for the year 2024 was RMB 135 trillion, reflecting a year-on-year growth of approximately 5.0%[8]. - The company maintains a cautious outlook on the short-term economic trends in China but remains confident in its long-term development[10]. - China's GDP growth is expected to be around 5% in 2024, supported by stimulus measures and strong exports, despite challenges from weak domestic demand[49]. Fintech Sector Developments - ZA Bank was recognized as one of the top 15 fintech innovators in Asia by Fortune magazine, being the only digital bank from Hong Kong on the list[9]. - The financial technology industry is expected to maintain a compound annual growth rate of around 18%, with the market size projected to exceed RMB 1.39 trillion by 2028[13]. - The financial technology sector is seen as having the most growth potential among various industry segments[10]. - The company is focusing on exploring new models for development in the fintech sector to seize opportunities in the new economic landscape[8]. - The group has established a joint venture with ZhongAn Online P&C Insurance Co., Ltd. to explore opportunities in the fintech sector[16]. - The company is actively exploring new business models in response to the evolving economic landscape, particularly in fintech and new economy sectors[15]. - ZA Bank launched U.S. stock trading services in February 2024, further enhancing its investment product offerings[33]. - ZA Bank launched cryptocurrency trading services for retail investors in Hong Kong, becoming the first licensed bank in Asia to do so[34]. Banking Performance - As of December 31, 2024, ZA Bank's deposit balance increased by 65.9% year-on-year to approximately HKD 19.399 billion, while total loans grew by 7.1% to about HKD 5.782 billion[35]. - ZA Bank's net interest margin improved from 1.94% in 2023 to 2.41% in 2024, outperforming the industry average[35]. - The bank recorded a net income of approximately HKD 548 million, representing a year-on-year growth of 52.6%[36]. - ZA Bank's net loss narrowed to HKD 232 million, a reduction of nearly HKD 167 million compared to the previous year, with the loss ratio decreasing from 111% to 42%[36]. - ZA Bank's retail user base grew to over 800,000, with more than half of the users setting ZA Bank as their default receiving bank for Faster Payment System (FPS)[31]. Corporate Governance - The board consists of 6 members, with the executive director serving as both the chairman and CEO, ensuring a strong leadership structure[150]. - The board held 4 regular meetings in 2024, with attendance rates for directors documented, indicating active participation in governance[155]. - Independent non-executive directors confirmed their independence according to listing rules, enhancing corporate governance standards[152]. - The company has established procedures for directors to seek independent professional advice, ensuring informed decision-making[154]. - The company has mechanisms in place for employees to raise concerns regarding financial reporting and internal controls, with no reports received during the year[174]. - The company has adopted a cautious and sustainable dividend policy since December 2018, intending to retain most of the available funds and future profits for business operations and expansion[196]. Environmental and Social Responsibility - The company emphasizes compliance with environmental protection laws and regulations in Hong Kong and China[79]. - The company is committed to improving management practices to mitigate environmental impact[79]. - The company has a dedicated team for environmental, social, and governance matters, with a report to be published alongside the annual report[80]. - The company has implemented a policy to promote and support anti-corruption and bribery laws and regulations[197]. Shareholder Matters - The company does not recommend the distribution of any final dividend for the year ended December 31, 2024[8]. - The company did not declare a final dividend for the year ended December 31, 2024, in order to retain resources for business development[64]. - The company plans to issue convertible bonds with a total principal amount of HKD 200,000,000, convertible at an initial price of HKD 0.085 per share, allowing for the issuance of 2,352,941,176 new shares[93]. - The company has not identified specific fintech companies for collaboration but intends to focus on its existing fintech business for ongoing financial support[94]. - The company has not purchased, sold, or redeemed any of its listed shares during the year ending December 31, 2024[140].

Financial Performance - The group recorded revenue of approximately HKD 57,000,000 for the year ending December 31, 2024, a decrease of about 27.2% compared to approximately HKD 78,400,000 in 2023[5] - The loss attributable to equity holders of the company for the year was approximately HKD 55,800,000, a reduction of about 43.3% from approximately HKD 98,400,000 in the previous year[5] - The group's revenue decreased by approximately 27.2% from about HKD 78,400,000 in the previous year to about HKD 57,000,000 in the current period[31] - The group's gross loss decreased from approximately HKD 4,600,000 to about HKD 3,300,000, with a gross loss margin of about 5.75%[36] - The group recorded a loss of approximately HKD 70,200,000, an improvement from a loss of about HKD 100,800,000 in the previous year[41] Real Estate Business - The real estate business has sold approximately 95% of the total construction area of the "Zhi Di New City" project, which covers an area of 69,117 square meters and includes 2,132 residential units[7] - The "Yiyun Mountain Villa" project has sold about 87% of its residential units and 100% of its shops and parking spaces, with a total construction area of 126,000 square meters[8] - The "Zhi Di New City" project has a total construction area of approximately 212,000 square meters, completed in 2013[7] - The "Zhong Jian Jun Residence" project is planned to have a total construction area of approximately 168,000 square meters, with ongoing development[9] - For 2025, the real estate business is expected to improve sales due to increased government support for the real estate sector in China[15] Financial Services - The financial services segment recorded revenue of approximately HKD 6,900,000, an increase from approximately HKD 5,900,000 in the previous year[11] - The company aims to expand its financial services, including real estate mortgages and luxury financing[11] - Financial services revenue increased to approximately HKD 6,900,000 from HKD 5,900,000 in the previous year[32] - The net proceeds from the placement were approximately HKD 15.65 million, intended for general working capital and expanding financial services[66] Restaurant Business - The restaurant business generated revenue of approximately HKD 27,500,000, a decrease from HKD 36,500,000 in the same period last year[14] - The company has implemented strict internal quality control standards to ensure food safety and hygiene, with no reported complaints regarding service or product quality during the reporting period[198] - The company has established a customer service center to handle feedback and complaints related to real estate and services, ensuring high customer satisfaction[198] - Policies and procedures are in place to address customer complaints promptly, ensuring customer satisfaction with food quality and service[200] Corporate Governance - The board of directors held a total of seven meetings during the fiscal year ending December 31, 2024[83] - All board members attended 100% of the board meetings and the annual general meeting[85] - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange rules, with the exception of certain deviations noted in the report[79] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced and diverse composition[88] - The company has established mechanisms to ensure independent opinions and contributions in the decision-making process of the board[92] Risk Management and Internal Control - The company has implemented a risk management framework to identify current and prospective risks that could significantly impact financial performance, reputation, or business model[130] - The board is responsible for ensuring the establishment and maintenance of an appropriate and effective risk management and internal control system[131] - The company recognizes the importance of risk management and internal control in achieving strategic objectives and adopts a conservative approach to manage strategic risks[128] - The audit committee, established in 2002, ensures the objectivity and credibility of the company's financial reporting and risk management systems[107] Environmental, Social, and Governance (ESG) - The company has established a cross-departmental ESG working group to coordinate efforts and ensure performance meets stakeholder expectations[142] - The report period for the environmental, social, and governance report spans from January 1, 2024, to December 31, 2024[144] - The company aims to minimize operational waste and ensure environmentally friendly disposal methods, adhering to various environmental protection laws[165] - The company has implemented energy-saving measures to reduce greenhouse gas emissions, focusing on decreasing energy consumption[163] Employee Welfare and Diversity - The company has committed significant resources to provide a safe, healthy, and comfortable working environment for employees in Hong Kong and China[75] - The company is committed to increasing gender diversity in its workforce, particularly in recruitment processes[123] - The company provides regular training programs to enhance employees' technical, management, and professional skills[189] - Employee turnover rate for females was 74.2%, while for males it was 105.1%, indicating a higher turnover among male employees[185] Shareholder Communication - The group emphasizes the importance of communication with shareholders, utilizing its website as a primary channel for information dissemination[140] - The company has a clear process for shareholders to request special meetings and propose inquiries to the board[134][135] - The company welcomes stakeholder feedback and suggestions regarding its reports and operations[147]

Financial Performance - Revenue for the fiscal year 2024 decreased by 46.8% to RMB 346 million, down from RMB 650 million in fiscal year 2023[9] - Revenue decreased from RMB 65.0 million in FY2023 to RMB 34.6 million in FY2024, a decline of 46.8% due to a downturn in the Chinese market[16] - Gross profit decreased from RMB 47.6 million in FY2023 to RMB 26.3 million in FY2024, a drop of 44.7%, while gross margin increased from 73.3% to 76.1%[19] - The company recorded a net loss of RMB 41.0 million in FY2024 compared to a profit of RMB 10.2 million in FY2023[25] - Cash and cash equivalents decreased by 17.7% from RMB 41.9 million as of December 31, 2023, to RMB 34.5 million as of December 31, 2024[26] - Administrative expenses rose by 5.7% from RMB 24.4 million in FY2023 to RMB 25.8 million in FY2024[22] - Financing costs for FY2024 amounted to RMB 1.2 million, including bank loan interest of RMB 1.114 million[23] Sales and Market Trends - Bottled wine sales dropped from 738,000 bottles in fiscal year 2023 to 438,000 bottles in fiscal year 2024[13] - The average selling price per bottle decreased from RMB 88.1 in fiscal year 2023 to RMB 78.9 in fiscal year 2024[13] - Export sales of bottled wine to Hong Kong increased to 1,066,000 bottles in 2024, up from 985,000 bottles in 2023[10] - Economic challenges in China, including deflationary pressures and cautious consumer spending, are expected to persist for the next three to five years[9] - The company identified major risks including weak consumer demand in China, which is expected to continue affecting sales due to economic uncertainties and high-end wine demand decreasing significantly[124] - Sales in Shanxi province account for a substantial portion of total sales; any significant decline in this market could lead to a major drop in wine sales and revenue[125] Strategic Initiatives - The company plans to enhance operational efficiency and cost management to adapt to the current sales scale[10] - Strategic partnerships, such as the collaboration with Cathay Pacific for supplying wines, are aimed at increasing brand recognition[9] - The company is focusing on core consumers who appreciate quality wines, ensuring more effective resource allocation[10] - The company is focusing on diversifying its business and developing new sales channels, including online sales and partnerships with distributors outside Shanxi[125] - The company is prioritizing the use of grapes from its own vineyards in Shanxi and Ningxia to ensure uninterrupted wine production amid climate change and environmental risks[126] Corporate Governance - The company has adopted all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix C1, Section 2[60] - The board consists of 3 independent non-executive directors, exceeding one-third of the total board members, ensuring compliance with GEM Listing Rules[65] - The chairman and CEO roles are held by the same individual, which the board deems appropriate for the company's interests[62] - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee specific matters[66] - The company emphasizes the importance of good corporate governance to establish an effective accountability culture[68] Risk Management - The company has established a risk management and internal control system to monitor operational, financial, reporting, and compliance risks[117] - The audit committee is responsible for overseeing the risk management and internal control systems, reviewing risk records, and approving internal audit plans[119] - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, with annual reviews conducted[118] - No significant internal control deficiencies were identified, and the board believes that the company's risk assessment and internal control functions are adequate and effective[128] Sustainability and ESG - The environmental, social, and governance (ESG) report covers the period from January 1, 2024, to December 31, 2024, detailing the group's sustainable development strategies and performance[143] - The ESG report is prepared in accordance with the GEM Listing Rules and includes key performance indicators disclosed in a quantifiable manner[145] - The company has identified significant sustainability issues affecting its business and disclosed both positive and negative information in the ESG report[145] - Yiyuan Winery focuses on sustainable practices, including responsible sourcing and production, aiming to reduce its ecological footprint and enhance climate resilience in its operations[157] Employee Welfare and Development - The company emphasizes employee welfare by creating a supportive work environment and providing training and development opportunities[157] - The employee turnover rate is 4.04% for females and 3.81% for males, with a total of 100 full-time employees and 2 part-time employees as of December 31, 2024[186][193] - The company provides significant health measures, including major illness medical expense subsidies and annual health check-ups for employees[199] - Regular employee performance evaluations are conducted to assess capabilities and determine promotions and salary adjustments[200] Communication and Shareholder Engagement - The company is committed to maintaining open communication with shareholders regarding its operations and market environment[88] - The company encourages shareholder participation in meetings and ensures that annual general meetings are held to facilitate communication between the board and shareholders[130] - The company has established multiple communication channels with shareholders, including the publication of interim and annual reports, and holding annual general meetings[138]

Financial Performance - Interest income for 2024 was RMB 12,978.1 million, a decrease of 6.6% from RMB 13,900.6 million in 2023[24] - Net interest income decreased to RMB 4,636.3 million in 2024, down 14.7% from RMB 5,434.5 million in 2023[24] - Total operating income for 2024 was RMB 5,953.9 million, a decline of 10.6% compared to RMB 6,665.1 million in 2023[24] - Annual profit for 2024 was RMB 584.7 million, representing a decrease of 9.6% from RMB 646.6 million in 2023[24] - The bank's operating profit for 2024 was RMB 475.7 million, down 16.4% from RMB 569.3 million in 2023[24] - The bank's net fee and commission income for 2024 was RMB 400.1 million, a slight increase from RMB 379.9 million in 2023[24] - The bank's total operating expenses for 2024 were RMB 2,376.6 million, a marginal decrease from RMB 2,388.8 million in 2023[24] - The bank's tax expense for 2024 was RMB 109.0 million, an increase from RMB 77.1 million in 2023[24] - The cost-to-income ratio increased from 34.29% in 2023 to 38.20% in 2024, reflecting a rise of 11.4%[69] - The company reported a significant increase in operating profit by 29.2% to RMB 801.6 million in 2024 compared to RMB 620.2 million in 2023[131] Asset and Liability Management - Total assets and liabilities increased by over 6%, reaching RMB 400 billion, with loan growth at 4.27% and general deposits up by 9.46%[7] - Total assets increased to RMB 414,707.6 million in 2024, up from RMB 388,588.7 million in 2023, representing a growth of 3.2%[25] - Total liabilities rose to RMB 380,869.7 million in 2024, up from RMB 355,408.6 million in 2023, reflecting a growth of 7.1%[25] - Customer loans and advances totaled RMB 231,414.3 million in 2024, compared to RMB 222,871.6 million in 2023, marking an increase of 4.7%[25] - Customer deposits increased by 8.7% year-on-year to RMB 321,379.3 million[33] - The total amount of customer loans and advances increased by 3.8% to RMB 231,414.3 million as of December 31, 2024, accounting for 55.8% of total assets[81] - The provision for impairment losses on customer loans and advances increased by 0.6% from RMB 5,781.8 million to RMB 5,818.7 million, reflecting a proactive approach to risk management[88] Loan Portfolio and Quality - Cumulative loan issuance exceeded RMB 100 billion, with green and technology loans growing over 20%[7] - The company’s loan portfolio to manufacturing, leasing and business services, construction, wholesale and retail, and real estate sectors constituted 67.4% of the total corporate loan portfolio as of December 31, 2024[102] - The non-performing loans (NPLs) stood at RMB 4,340.7 million, with a non-performing loan ratio of 1.93%, down from 2.00% in the previous year[99] - The non-performing loan ratio improved to 1.93%, a decrease of 0.07% from the end of 2023, due to enhanced asset management practices[33] - The non-performing loan (NPL) ratio for corporate loans decreased from 1.64% to 1.42%, a decline of 0.22 percentage points[107] - The non-performing loan (NPL) ratio for retail loans increased from 3.82% to 4.01%, an increase of 0.19 percentage points[107] Shareholder Information - Gansu Electric Power Investment Group holds approximately 4.21% of the company's shares as of December 31, 2024[12] - Gansu Highway Aviation Tourism Investment Group is the major shareholder with an 18.3% stake in the company as of December 31, 2024[12] - Gansu State-owned Assets Investment Group directly holds about 12.67% and indirectly through subsidiaries holds an additional 10.74% of the company's shares as of December 31, 2024[12] - Jiuquan Steel Group holds approximately 6.53% of the company's shares as of December 31, 2024[13] Strategic Initiatives - The company aims to enhance customer management and team building, focusing on risk management and efficiency improvement in 2025[9] - The company aims to expand its market presence through strategic partnerships and potential acquisitions[12] - The company is focused on green finance initiatives to support environmental improvement and resource efficiency[12] - The bank aims to enhance risk management and optimize its income structure as part of its strategic development plan[32] - The bank's strategy includes transforming traditional businesses and focusing on emerging sectors to drive profit growth[32] Digital Transformation and Technology - The bank's digital transformation efforts focus on five key capabilities, including business management and product innovation, with a product conversion rate of 63.64% for award-winning products[175] - The bank launched 43 information system construction projects, including a mobile banking application compatible with Huawei's HarmonyOS, and an intelligent transaction anti-fraud monitoring platform that monitored 136 million transactions[175] - The bank's investment in information technology systems was approximately RMB 198.3 million in 2023 and RMB 206.7 million in 2024[174] Risk Management - The bank's risk management strategy includes a comprehensive assessment of credit, market, operational, and liquidity risks, with regular evaluations reported to the board[177] - The company has established a GRC system for internal control and operational risk management, allowing for the identification, measurement, and monitoring of operational risks[188] - Liquidity risk management focuses on ensuring timely access to sufficient funds to meet obligations, with the board of directors ultimately responsible for liquidity risk management[189] - The liquidity coverage ratio increased to 190.88% as of December 31, 2024, compared to 157.69% in 2023[191] - The net stable funding ratio was 131.80% as of December 31, 2024, down from 139.92% on September 30, 2024[191] Customer Engagement and Services - The company has over 369,600 wealth clients and more than 3,065 private banking clients as of December 31, 2024[130] - The total transaction volume for the company's acquiring business reached approximately RMB 115 billion in 2024, up from RMB 89.477 billion in 2023[139] - The company sold retail wealth management products totaling RMB 32,819.74 million and RMB 33,074.05 million in 2024 and 2023, respectively, with over 153,911 retail wealth management customers as of December 31, 2024[141] - The bank held government bonds with a face value of RMB 32,139.4 million as of December 31, 2024[159] - The bank's online banking services included account management, information inquiry, and investment services[166]

Financial Performance - POP MART achieved a revenue of RMB 13.04 billion for the year ended December 31, 2024, representing a year-on-year increase of 106.9%[12]. - The adjusted net profit for the same period was RMB 3.4 billion, reflecting a growth of 185.9% year-on-year[15]. - Gross profit margin improved to 66.8% in 2024, up from 61.3% in 2023[12]. - Net profit margin increased to 25.4% in 2024, compared to 17.3% in 2023[12]. - Operating profit for the year was RMB 4.15 billion, significantly higher than RMB 1.23 billion in 2023[12]. - Profit before income tax was RMB 4.37 billion in 2024, compared to RMB 1.42 billion in 2023[12]. - Profit for the year increased significantly to RMB 3,308,345, up from RMB 1,088,771 in the previous year, representing a growth of approximately 204%[131]. - Non-IFRS adjusted net profit rose to RMB 3,403,162, compared to RMB 1,190,519, with a non-IFRS adjusted net profit margin of 26.1%, up from 18.9%[131]. Revenue Breakdown - Revenue from the four major IPs, THE MONSTERS, MOLLY, SKULLPANDA, and CRYBABY, surpassed RMB 1 billion for the first time, with total revenues of RMB 3,040.7 million, RMB 2,093.2 million, RMB 1,308.3 million, and RMB 1,164.9 million respectively[29]. - Revenue from international markets reached RMB 5,065.7 million, marking a year-on-year increase of 375.2% and accounting for 38.9% of total revenue[27]. - The plush product category saw a remarkable year-on-year revenue increase of 1,289%, contributing 21.7% to the overall revenue[20]. - Revenue from proprietary products rose by 117.2% from RMB 5,858.0 million in 2023 to RMB 12,721.5 million in 2024, accounting for 97.6% of total revenue[98]. - Revenue from artist IPs increased by 130.6% from RMB 4,822.2 million in 2023 to RMB 11,120.8 million in 2024, with THE MONSTERS products seeing a 726.6% increase[104]. - Revenue from plush products surged by 1,289.0% from RMB 203.9 million in 2023 to RMB 2,832.1 million in 2024[105]. Asset and Liability Management - Total current assets rose to RMB 12.24 billion in 2024, a significant increase from RMB 7.68 billion in 2023[14]. - Total assets reached RMB 14.87 billion as of December 31, 2024, up from RMB 9.97 billion in 2023[14]. - Total equity attributable to owners of the Company increased to RMB 10.68 billion in 2024, compared to RMB 7.77 billion in 2023[14]. - The Company reported a total liability of RMB 3.99 billion in 2024, up from RMB 2.19 billion in 2023[14]. - Cash and cash equivalents rose significantly from RMB 2,077.9 million to RMB 6,109.0 million, primarily due to increased cash flows from operating activities[136]. Market Expansion and Strategy - The company opened its first offline stores in five countries, enhancing global brand recognition[17]. - The company aims to reach a revenue target of RMB 100 billion in the future, emphasizing its growth strategy[22]. - The company plans to enrich its IP types and expand its IP base, maintaining high-quality standards in design and innovation[164][166]. - The company aims to expand its global business footprint, particularly in North America, Southeast Asia, and Europe, by opening physical stores in iconic locations[165][167]. - The company will cultivate new brands such as MEGA and POPBLOCKS while expanding into emerging businesses like amusement parks and accessories[170][172]. Customer Engagement and Sales Channels - The total number of registered members in Mainland China increased from 34.4 million to 46.1 million, with 11.7 million new members in 2024[55]. - The repeat purchase rate of members was 49.4%, contributing 92.7% of total sales[55]. - Revenue from online channels reached RMB 2,697.6 million in 2024, a 76.9% increase from RMB 1,524.6 million in 2023[82]. - Revenue from offline sales rose by 40.8%, from RMB 3,213.7 million in 2023 to RMB 4,526.3 million in 2024[79]. - The company expanded its DTC strategy, reaching 130 stores in Hong Kong, Macau, Taiwan, and overseas, and 192 robot stores as of December 31, 2024[59]. Operational Efficiency - Costs of sales rose by 77.7% from RMB 2,436.9 million in 2023 to RMB 4,330.0 million in 2024, primarily due to increased sales and higher design and licensing costs[106]. - Distribution and selling expenses increased by 82.1% from RMB 2,004.7 million in 2023 to RMB 3,650.5 million in 2024[108]. - Employee benefit expenses increased by 46.2% from RMB 598.5 million in 2023 to RMB 874.9 million in 2024[119]. - General and administrative expenses grew by 33.9% from RMB 707.3 million in 2023 to RMB 947.1 million in 2024[113]. Risks and Challenges - The company faces key risks including the inability to develop popular products and potential damage to brand reputation, which could adversely affect business performance[162]. - The core driving force of the company's business is its IP, with a focus on innovative products and enhancing brand value through quality service and diverse entertainment forms[163][166]. Management and Governance - Mr. Moon Duk Il joined the company in August 2018 and oversees the Hong Kong, Macao, Taiwan, and overseas business departments[184]. - Mr. Tu Zheng has been a non-executive Director since May 2019, providing professional advice to the Board[188]. - Mr. Zhang Jianjun has been an independent non-executive Director since the company's listing date on December 11, 2020, focusing on corporate governance[198].