Financial Performance - In 2024, the company's revenue decreased to RMB 515.1 million, down 19.6% from RMB 640.8 million in 2023[23]. - Gross profit for 2024 was RMB 66.9 million, a decline of 30.5% compared to RMB 96.3 million in 2023[23]. - The net loss attributable to shareholders increased to RMB 120.5 million in 2024, compared to RMB 59.2 million in 2023, reflecting a worsening financial position[23]. - The gearing ratio increased to 10.7% in 2024 from 7.6% in 2023, indicating a rise in the company's financial leverage[23]. - The basic loss per share was approximately RMB 0.15[33]. - The net loss for 2024 was approximately RMB 120.53 million, representing a year-on-year increase of approximately 103.6%[33]. - The Group's gross profit decreased by approximately 30.5% to approximately RMB 66.93 million, with a gross profit margin dropping from approximately 15.0% in 2023 to approximately 13.0%[105]. - The Group's loss for the year was approximately RMB 120.53 million, resulting in a net profit margin of approximately -23.4% compared to -9.2% in 2023[127]. Asset and Liquidity Position - Total assets decreased to RMB 1,046.9 million in 2024 from RMB 1,247.7 million in 2023, indicating a reduction in the company's asset base[23]. - The current ratio fell to 1.11 in 2024 from 1.21 in 2023, suggesting a decline in short-term financial health[23]. - As of December 31, 2024, the Group reported net current assets of approximately RMB 75.98 million, a decrease from RMB 153.05 million in 2023[187]. - Cash and cash equivalents slightly decreased to approximately RMB 192.66 million in 2024 from RMB 198.67 million in 2023[192]. - Pledged bank deposits decreased to approximately RMB 78.74 million in 2024 from RMB 132.36 million in 2023, indicating a reduction in secured borrowings[192]. - The average trade payables turnover days increased to 431 days in 2024 from 387 days in 2023, indicating a longer payment period to suppliers[191]. Sales and Revenue Breakdown - In 2024, the Company's operating revenue was approximately RMB 515.15 million, representing a year-on-year decrease of approximately 19.6%[33]. - Sales of antenna systems decreased by approximately 36.4% to approximately RMB 162.53 million, down from approximately RMB 255.64 million in 2023[61]. - Sales of base station RF subsystems decreased by approximately 14.6% to approximately RMB 279.80 million, compared to approximately RMB 327.65 million in 2023[61]. - Revenue from antenna system products fell by approximately 36.4% to approximately RMB 162.53 million (2023: RMB 255.64 million), primarily due to reduced capital project construction by global telecommunications operators[69]. - Revenue from base station RF subsystem products decreased by approximately 14.6% to approximately RMB 279.80 million (2023: RMB 327.65 million), influenced by adjustments in production layouts by major international equipment manufacturer customers[76]. - Revenue from coverage extension solutions and other products increased by approximately 26.5% to approximately RMB 72.82 million (2023: RMB 57.56 million), driven by demand for extensive 5G network coverage[81]. Strategic Initiatives and Market Position - The company actively engaged in centralized procurement projects with domestic operators and expanded its international customer base amid a challenging market environment[26]. - The Group maintained strategic cooperative relationships with major domestic equipment manufacturers and deepened collaboration in essential business segments like antennas and RF[34]. - The Group is actively exploring new business areas such as "communications + energy saving/new energy," developing projects including renovation of old communities and photovoltaic projects[40]. - The Group aims to solidify its market position in traditional business areas while expanding into new business areas, including vertically derived ventures and new energy scenarios[43]. - The Group is focusing on new business areas such as "communications + energy saving/new energy" to establish a "second growth curve"[168]. - The Group has strategically expanded into new business areas such as "communications + energy saving/new energy," achieving breakthroughs in projects related to smart cities and community renovations[101]. Research and Development - Research and development expenses increased by approximately 4.0% to approximately RMB 65.04 million, reflecting increased investments in new products and businesses[112]. - The Group's R&D team completed the development of new technologies and products, positioning itself for further performance growth in the future[79]. - The Group plans to increase R&D investment to develop new product platforms that support customers in their technological evolution towards 5G and 6G[185]. - The Group is enhancing its R&D capabilities to align with customer needs and maintain a dominant position in the overseas market[167]. Market Trends and Future Outlook - By 2025, cumulative investment in 5G network construction in China is expected to reach RMB1.8 trillion, driving over RMB3.5 trillion in investment across the industrial chain[47]. - The penetration rate of 5G users in China is expected to exceed 70% by 2027[47]. - The global 5G market is expected to see an additional 80 operators from 60 markets entering the market in the coming years[48]. - The anticipated demand for comprehensive optimization of 5G network coverage is expected to drive growth in the communications sector[155]. - Emerging markets are projected to contribute over 45% of global growth in base station antennas and RF devices over the next five years[159]. - The global market size for base station antennas and RF is projected to exceed USD 30 billion by 2028[159]. Operational Efficiency - The average inventory turnover days improved to approximately 103 days in 2024 from 111 days in 2023, while average trade receivables turnover days increased to 214 days from 203 days[191]. - Distribution and selling expenses decreased by approximately 6.9% to approximately RMB 39.23 million, mainly due to reductions in various operational costs[110]. - Administrative expenses increased by approximately 3.6% to approximately RMB 77.85 million, driven by higher office and welfare expenses[111]. - Finance costs rose by approximately 39.9% to approximately RMB 4.59 million, mainly due to increased interest expenses[118]. Environmental and Compliance - The Group has not breached any environmental regulations and is committed to energy conservation and compliance with relevant laws in mainland China and Hong Kong[146][148]. - The Group's production process is characterized by low emissions and energy consumption, ensuring minimal environmental impact[146]. - The Group's future operational activities are expected to remain unaffected by environmental policies, as it strives for both cost reduction and environmental protection[147].

Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[7]. - Revenue for the year ended December 31, 2024, increased by 11.6% to HKD 800.963 million, compared to HKD 717.973 million in 2023[12]. - Total revenue for the year reached HKD 801.0 million, an increase of 11.6% compared to HKD 718.0 million in 2023, driven by increased orders in the imaging disposable products segment and growth in health care and wellness products[35]. - Profit attributable to owners increased by 20.8% to HKD 69.167 million, compared to HKD 57.275 million in 2023[12]. - Basic earnings per share increased to HKD 10.75 from HKD 8.87 in 2023[12]. - Total dividend per share for 2024 is HKD 3.30, up from HKD 2.75 in 2023[20]. - The company reported a net profit margin of 12%, up from 10% in the previous year, indicating improved operational efficiency[7]. User Growth and Market Expansion - User data showed a growth of 25% in active users, reaching 500,000 by the end of 2024[7]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share in the region by 2026[7]. Product Development and Innovation - New product launches included a state-of-the-art medical device that is expected to generate an additional HKD 200 million in revenue in 2025[7]. - Research and development expenses increased by 20%, totaling HKD 150 million, to support innovation and new technology[7]. - The company continues to invest in product quality control and compliance, having passed FDA reviews and received EU MDR certification for several respiratory medical devices[25]. - The company has a dedicated R&D department located in Dongguan, focusing on innovative and reliable medical technologies[84]. Strategic Initiatives - The company completed an acquisition of a competitor for HKD 300 million, enhancing its product portfolio and market reach[7]. - The company plans to accelerate digitalization, automation, and operational optimization, with new production facilities expected to commence trial operations by the end of 2025[34]. - The focus will remain on diversified growth strategies, particularly in imaging disposable products and respiratory products, while exploring AI opportunities in rehabilitation and healthcare products[23]. Financial Management and Capital Expenditure - Capital expenditure for the year was HKD 142.4 million, significantly up from HKD 21.3 million in 2023, mainly for the construction of new production facilities[44]. - The company had unutilized bank financing of HKD 487.0 million as of December 31, 2024, compared to HKD 93.9 million in 2023[54]. - Total interest-bearing borrowings rose to HKD 80.2 million from HKD 21.0 million in 2023, primarily to fund new production facilities[53]. Governance and Management - The company has a robust governance structure with independent directors overseeing compensation and audit committees, ensuring transparency and accountability[72]. - The board includes independent directors with over 40 years of experience in medical device management, marketing, and R&D, ensuring diverse expertise[73]. - The company’s executive team includes members with extensive backgrounds in biomedical engineering and risk management, enhancing operational oversight[67][69]. Risk Management - The company faces significant risks from global economic conditions, including trade protectionism, currency fluctuations, and geopolitical tensions, which may impact financial performance[87]. - Labor shortages and rising labor costs have become a challenge, potentially affecting the company's operational capacity[91]. - The company is subject to stringent regulatory requirements in the medical device industry, and changes in laws or regulations could hinder its ability to operate effectively[94]. Shareholder Engagement and Dividends - The proposed final dividend for the year ending December 31, 2024, is HKD 0.017 per share, an increase from HKD 0.015 in 2023[108]. - The company aims to distribute a total dividend of no less than 30% of the consolidated profit attributable to shareholders for each financial year[109]. Corporate Social Responsibility - The board of directors emphasized a commitment to environmental, social, and governance (ESG) initiatives, with a budget of HKD 50 million allocated for sustainability projects in 2025[7]. - The group made charitable donations of RMB 130,000 in the current year, compared to zero in 2023[119]. Employee Welfare and Culture - Employee welfare is prioritized through competitive compensation, benefits, and professional training programs[103]. - The company emphasizes a culture of integrity and ethical standards across all business activities, with training provided to employees[185].

Financial Performance - Revenue for 2024 was reported at US$582,804,000, a significant increase of 52.5% compared to US$382,470,000 in 2023[19]. - Profit attributable to owners of the Company for 2024 was US$34,135,000, up from US$19,438,000 in 2023, representing a growth of 75.5%[19]. - Basic earnings per share increased to 1.43 US cents in 2024 from 0.82 US cents in 2023, marking a rise of 74.4%[19]. - For the year ended December 31, 2024, the Group's consolidated revenue increased by 52% to US$582,804,000, compared to US$382,470,000 in 2023[41]. - Consolidated profit attributable to owners of the Company rose by 76% to US$34,135,000, up from US$19,438,000 in 2023[41]. - The manufacturing and leasing business generated revenue of $553,588,000 for the year ended December 31, 2024, a significant increase of 56% compared to $354,983,000 in 2023[46]. Operational Highlights - Manufacturing accounted for 90% of revenue in 2024, while logistics services contributed 10%[24]. - Production output for 2024 was reported at 255,269 TEUs, a decrease from 368,195 TEUs in 2023[22]. - The total sales volume for manufacturing operations reached approximately 220,000 twenty-foot equivalent units (TEUs) of dry freight and ISO-specialised containers, compared to approximately 106,000 TEUs in 2023[45]. - The total sales volume of dry freight and ISO specialized containers reached approximately 220,000 twenty-foot equivalent units (TEUs), up from about 106,000 TEUs in 2023, representing a year-on-year increase of 119%[50][52]. - The number of containers handled by logistics services reached 760,000 TEUs, an increase from 704,000 TEUs in 2023[54][57]. Financial Position - The company’s bank balances and cash decreased to US$250,149,000 in 2024 from US$300,963,000 in 2023, a decline of 16.8%[19]. - Total borrowings rose to US$27,719,000 in 2024 from US$6,835,000 in 2023, indicating a significant increase in leverage[19]. - The current ratio decreased to 2.63 in 2024 from 4.16 in 2023, reflecting a tighter liquidity position[19]. - The leasing portfolio assets increased significantly to $138,044,000 as of December 31, 2024, compared to $56,679,000 as of December 31, 2023[53][56]. Market Outlook - Demand for dry freight containers is expected to weaken in the coming year due to overproduction in 2024 and geopolitical tensions affecting global trade[60][63]. - Global dry freight container demand is projected to soften in 2025, but Singamas is well-positioned due to its diversified business efforts over the past years[72]. - The management aims for a long-term sales mix of 50:50 between dry freight containers and specialised/customised containers, reflecting a shift towards more complex and higher-margin products[73]. - The customised energy storage system (ESS) container business is experiencing increasing demand driven by the growth in renewable energy, with stable orders from major clients contributing to long-term growth[74]. Corporate Governance - The company has consistently complied with applicable code provisions of the Corporate Governance Code, except for the roles of Chairman and CEO not being separated[107]. - The company aims to maintain high standards of corporate governance practices to enhance accountability and transparency[109]. - The Board consists of seven Directors, including three executive Directors, one non-executive Director, and three independent non-executive Directors, with more than one-third being independent[115]. - The Company has established corporate governance policies and practices to ensure compliance with legal and regulatory requirements[114]. Risk Management - The Board considers the risk management and internal control systems effective and adequate for the Group as a whole[150]. - The review of the effectiveness of the Company's risk management and internal control systems is conducted at least annually[149]. - The Group maintains the effectiveness of its risk management system through ongoing evaluations and recommendations from the Enterprise Risk Management Committee[156]. - The internal audit process includes follow-up reviews to ensure that audit recommendations are properly implemented[155]. Human Resources and Talent Management - The Group recruited a new Chief Human Resources Officer in 2024 to establish long-term human resources strategies amid talent competition risks[193]. - The Group will increase automation in the production process to reduce manpower requirements and minimize labor costs due to rising wage rates in China[193]. - The company arranges for its employees to attend anti-corruption and ethics training at least once a year to enhance awareness[158]. Shareholder Engagement - The Company maintains ongoing dialogue with shareholders, encouraging participation through annual general meetings[167]. - The Company ensures that shareholders are given sufficient notice of meetings and are familiar with voting procedures[168]. - The company has established procedures for shareholders to circulate statements regarding proposed resolutions, fostering open dialogue[136]. - The company has enhanced shareholder communication by holding press and analyst conferences during reporting periods, providing transparency[135].

Financial Performance - Nanshan Aluminium International Holdings Limited reported a revenue increase of 15% year-over-year, reaching HKD 5.2 billion for the fiscal year ending December 31, 2024[2]. - The company achieved a net profit margin of 12%, translating to a net profit of HKD 624 million, up from HKD 550 million in the previous year[2]. - The company's revenue increased by 50.6% from $677.8 million in FY2023 to $1,020.7 million in FY2024, driven by higher sales volume and average selling price of alumina[22]. - Net profit for the year increased by approximately 163% from $173.5 million in FY2023 to $457.4 million in FY2024, primarily due to increased sales volume and improved gross margin[28]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[1]. Production and Capacity Expansion - The company plans to expand its production capacity with the new alumina production project, targeting an annual output of 2 million tons, expected to commence construction in the first half of 2024[10]. - The company has initiated the construction of a new alumina production facility with a design capacity of 2 million tons per year to expand its market share in Southeast Asia[17]. - Plans to expand alumina production capacity to 4 million tons to meet the increasing market demand in the aluminum industry, with the first 1 million tons expected to commence production in the second half of 2025 and the second 1 million tons in the second half of 2026[56]. - The company has successfully completed Phase I and Phase II of the alumina production project, achieving a designed annual production capacity of 2 million tons[56]. Market and Customer Engagement - User data indicated a 20% increase in customer base, with over 1 million active users engaging with the company's products and services[2]. - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous quarter[2]. - The company reported a 25% increase in export sales, particularly to markets in Europe and North America, contributing significantly to overall revenue growth[2]. - The company provided guidance for the next quarter, expecting revenue to be between $1.3 billion and $1.4 billion, indicating a growth rate of 10% to 15%[3]. Research and Development - The company has allocated HKD 300 million for research and development of new aluminium alloys and sustainable production technologies[10]. - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[5]. Strategic Acquisitions and Partnerships - Nanshan Aluminium is exploring strategic acquisitions in Southeast Asia to enhance market presence and operational efficiency, with a focus on Indonesia and Malaysia[10]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[7]. - The company has established deeper partnerships with suppliers to optimize raw material procurement strategies, focusing on bauxite, caustic soda, and coal[18]. Environmental, Social, and Governance (ESG) Initiatives - Nanshan Aluminium is committed to enhancing its environmental, social, and governance (ESG) practices, aiming for a 30% reduction in carbon emissions by 2025[10]. - The company plans to increase ESG investments to establish a sustainable development benchmark and ensure long-term value creation for shareholders[58]. - The company has a commitment to community engagement and sustainable development, contributing to local economic growth[89]. Financial Management and Governance - The company maintained cash and cash equivalents of approximately $454.2 million as of December 31, 2024, up from $251.6 million in the previous year[32]. - The company has no borrowings or other debt financing obligations, resulting in a debt-to-equity ratio of zero as of December 31, 2023, and December 31, 2024[46]. - The company has adopted a dividend policy to declare and pay a minimum of 20% of the distributable net profit attributable to shareholders for the fiscal year 2025 and beyond, subject to various factors including financial performance and cash flow[158]. - The total remuneration for directors during the reporting period amounted to approximately $181,000[124]. Corporate Governance - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[91]. - The company has established mechanisms to ensure compliance with corporate governance codes and has been adhering to these principles since its listing date[87]. - The independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring objective oversight of the company's performance[98]. - The board is responsible for overseeing the company's overall operations and financial performance, ensuring effective internal controls and risk management systems are in place[106]. Employee and Workforce Management - The company employed 3,282 full-time employees as of December 31, 2024, compared to 2,869 employees as of December 31, 2023, with employee benefit expenses amounting to approximately $39.9 million[43]. - As of December 31, 2024, the company had 3,282 full-time employees, of which 232 were women, representing 7% of the total workforce, indicating a commitment to gender diversity[156]. - The company emphasizes equal employment principles and fair treatment of employees of different genders in recruitment, training, and promotion[156]. Future Outlook - Future guidance estimates a revenue growth of 10-15% for the next fiscal year, driven by increased demand in the automotive and aerospace sectors[2]. - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[4]. - The company aims to enhance logistics by expanding the deep-water port, adding a 70,000-ton berth and supporting facilities[56].

Financial Performance - Operating revenue for FY2024 is projected to be HK$403.73 million, representing a 1.4% increase from FY2023[13] - Revenue from innovative business is expected to reach HK$111.82 million in FY2024, reflecting a 10.8% growth compared to FY2023[13] - The average dividend per share for 2024 is set at HK$16.83 cents, with a payout ratio of 70%[13] - The company plans to make two dividend payments in 2024, totaling HK$76.03 million[13] - The company's revenue for 2024 reached RMB 403,728,000, a 1.4% increase from RMB 396,194,000 in 2023[20] - Gross profit for 2024 was RMB 233,201,000, reflecting a 4% increase from RMB 223,472,000 in 2023[20] - Net profit attributable to owners of the parent for 2024 was RMB 110,649,000, up 8% from RMB 102,032,000 in 2023[20] - Gross profit margin increased from 56.4% in FY2023 to 57.8% in the current financial year, representing an improvement of 1.4 percentage points[48] - Net profit margin rose from 25.5% in FY2023 to 27.7% in the current financial year, an increase of 2.2 percentage points[48] - The company's net profit reached approximately RMB 111.8 million, reflecting a year-on-year increase of about 10.8%[48] Business Strategy and Development - The digital and intelligent transformation in pharmacies is a key focus area for the company, enhancing operational efficiency[13] - The company is leveraging AI technology for strategic upgrades and to chart a new development blueprint[13] - The company aims to consolidate its leading edge while exploring innovative business opportunities[13] - The company aims to build a digital and intelligent health management system focused on "patient-centrism" across the entire life cycle[23] - The Company expanded its market presence by deepening its foothold in the out-of-hospital market while also growing its in-hospital innovative business[26] - The Company aims to enhance its R&D efforts and upgrade the "Woodpecker Medical Large Model" to meet customer needs with higher efficiency and quality[38] - The Company will continue to leverage AI technology to develop AI+ series products, creating long-term value for customers[125] - The Company aims to expand its strategic layout in the innovative drug and device field through investments, mergers, and acquisitions[71] Research and Development - The big data research institute will support R&D efforts, integrating data and AI technology[13] - The Company significantly increased R&D investment, focusing on AI large model development and applications, which led to substantial commercialization achievements across healthcare, pharmacies, and health management sectors[30] - R&D expenses increased by approximately 6.0% year-on-year, focusing on computing infrastructure and high-level talent recruitment[51] - The Company will continue to enhance its digital intelligence solutions for pharmaceutical and medical device enterprises to improve R&D efficiency[135] Market Presence and Client Engagement - The company has established a corporate customer network of 1,230 companies and serves over 5 million patients[20] - The Company has nearly one million industry professionals connected through its industrial ecological platform[20] - The cumulative number of pharmaceutical retail enterprises served reached 2,853, positioning the company as a market leader with continuous growth[63] - The Company served over 5,073,000 patients in 2024, a year-on-year increase of 106.39%, highlighting significant advancements in product capabilities[117] - The Company established cooperative relations with over 1,230 enterprise customers, enhancing product efficiency and achieving mutual benefits[115] AI and Technology Integration - The AI-driven "Woodpecker Medical Large Model" ranked 5th in the comprehensive list and 3rd in the complex medical reasoning sub-category on the Medbench ranking[20] - The Woodpecker AI-MDT health management solutions reached over 5.073 million people, representing a year-on-year increase of 106.39% compared to 2023[68] - The Woodpecker Medical Large Model has a total scale of weighting parameters reaching 70 billion, supported by millions of public data, tens of millions of desensitized data, and millions of labeled data[99][100] - The model has served a total of 20 million people in personalized health management through in-depth analysis of multi-source data[103] Operational Efficiency and Cost Management - The cost of sales decreased by approximately 1.3%, from approximately RMB172.7 million in FY2023 to approximately RMB170.5 million in FY2024, due to improved operational efficiency and cost control[139] - Selling and distribution expenses increased by approximately 23.7% to approximately RMB 40.1 million for the year ended 31 December 2024, attributed to business structure optimization and increased investment in talent[145] - Administrative expenses rose by approximately 11.1% to approximately RMB 38.5 million for the year ended 31 December 2024, primarily due to personnel structure optimization and increased incentives for key talents[146] Leadership and Management - Ms. Wang Lifang has over 20 years of experience in the healthcare information and data analysis industry[198] - Ms. Wang has been serving as the Executive Director and COO since June 3, 2021, overseeing daily operations and management[198] - Mr. Fu Haitao was appointed as a Non-Executive Director on June 3, 2021, with prior experience in government affairs and venture capital[197] - Ms. Wang holds a Bachelor's degree in International Economics from Harbin Institute of Technology, obtained in July 1997[199] Industry Trends and Insights - The total health expenditure in China for 2023 was only 7.2% of the total GDP, indicating significant growth potential compared to developed countries[22] - The healthcare industry is undergoing restructuring and upgrading at an accelerated pace due to AI democratization and national policies[44] - The Company was recognized as a member of the Guangdong Data Element Industry Association in February 2024, highlighting its data governance capabilities[101][102]

Financial Performance - The Group recorded a loss attributable to owners of the Company of HK$94.8 million for the year, compared to a profit of HK$344.3 million in 2023, resulting in a basic loss per share of HK4.42 cents[8]. - Total turnover for the year was HK$429.4 million, representing a decrease of 21.1% from HK$543.9 million in the previous year[13]. - The loss attributable to owners of the Company for the first half of the year was HK$82.3 million, while the second half saw a reduced loss of HK$12.5 million[13]. - Impairment assessments of investment properties totaled HK$56.0 million, contributing to the overall loss for the year[15]. - An exchange loss of HK$30.8 million was incurred due to the deregistration of two subsidiaries, affecting the profit and loss but not the total net asset value[15]. - The Group's revenue for the Year was HK$429.4 million, a decrease of 21.0% from HK$543.9 million in 2023[41]. - Revenue from the Core Business, which includes handsets and IoT terminals, decreased by 21.8% to HK$384.3 million compared to HK$491.2 million in 2023[41]. - The revenue from property management (Non-core Business) decreased by 14.6% to HK$45.0 million in 2024, down from HK$52.8 million in 2023[41]. - The gross profit for Core Business was HK$51.5 million, with a gross profit margin of 13.4%, down from 15.3% in 2023[42]. - The overall gross profit margin of the Group for the Year was 21.7%, slightly down from 22.1% in 2023[42]. - The basic loss per share for the Year was HK4.42 cents, a decline from earnings per share of HK16.07 cents in 2023[49]. Business Segments - The handsets and IoT terminals business generated a turnover of HK$338.0 million, down 28.6% year-on-year, with a gross profit of HK$32.4 million, a decrease of 45.3%[20]. - The automotive intelligent products business, through Shanghai Zhenkang, achieved a turnover of HK$46.3 million but recorded a segment loss of HK$30.8 million due to significant R&D investments[22]. - The Group's revenue from the handsets and IoT terminals business decreased by 28.6% year-on-year to HK$338.0 million in 2024, down from HK$473.7 million in 2023, with a gross profit margin declining to 9.6% from 12.5%[54][55]. - The automotive intelligent products business, acquired last year, recorded a gross profit margin of 41.1% in 2024, but still faced significant losses due to non-capitalized R&D expenses[56][57]. Operational Efficiency - The Group optimized its structure and workforce, incurring a one-off loss of HK$28.0 million related to employee compensation and inventory clearance[17]. - The Group focused on controlling expenses and enhancing resource utilization while developing new customers, particularly in overseas markets[21]. - The inventory turnover period improved significantly to 75 days in 2024 from 119 days in 2023, reflecting enhanced operational efficiency[62][66]. - The trade and notes receivables turnover period increased to 82 days in 2024 from 59 days in 2023 due to relaxed credit policies for selected customers[63][66]. - The trade and notes payables turnover period decreased to 105 days in 2024 from 123 days in 2023, as the Group implemented a restrictive procurement policy[64][66]. - The current ratio as of December 31, 2024, was 3.1 times, slightly down from 3.3 times in 2023, indicating stable liquidity[65][66]. Financial Position - As of December 31, 2024, the Group had bank balances and cash of HK$360.3 million, significantly up from HK$74.2 million in 2023, with 89.9% held in Renminbi[58][60]. - The total bank borrowings amounted to HK$29.2 million as of December 31, 2024, down from HK$33.0 million in 2023, all denominated in Renminbi[58][60]. - As of December 31, 2024, the total assets of the Group were HK$1,921.2 million, down from HK$2,149.5 million as of December 31, 2023[77]. - The Group's bank borrowings decreased to HK$29.2 million as of December 31, 2024, compared to HK$33.0 million as of December 31, 2023[77]. - The gearing ratio remained stable at 1.5% as of December 31, 2024, consistent with the previous year[77]. - The total staff costs incurred by the Group amounted to HK$137.7 million in the current year, down from HK$189.1 million in the previous year[82]. - The Group had approximately 570 employees as of December 31, 2024, a decrease from 688 employees in 2023[82]. Management and Governance - The Group's executive management includes Mr. Wong Cho Tung and Mrs. Wong, both aged 80, who are the founders and responsible for the strategic direction and development plans of the Group[115][116]. - Mr. Zhu Wenhui, aged 43, serves as the executive Director and general manager of the finance department, focusing on financial management control systems and risk management[123][124]. - Mr. Zhu Qi, aged 45, is the COO and has extensive experience in market and product development, responsible for operations and quality control in the PRC[126][127]. - Mr. Wong Hei, Simon, aged 52, is a non-executive Director with over 26 years of experience in the electronics and telecommunications industry, involved in multiple investment holding companies[129]. - The Group has established a financial management control system to enhance comprehensive budgeting and accounting analysis[123]. - The Group's strategic focus includes expanding its operations in the electronics and telecommunications sectors, leveraging the experience of its senior management[115][116][126]. - The Group's leadership has a combined experience of several decades in the electronics and telecommunications industry, ensuring informed decision-making[115][116][126][129]. Shareholder Information - The Board does not recommend the payment of a final dividend to Shareholders for the Year[148]. - There were no arrangements with any Shareholder regarding waiving dividends[148]. - The company did not purchase, sell, or redeem any of its listed securities during the year[160]. - As of December 31, 2024, Mr. Wong Cho Tung held a total of 1,232,996,000 shares, representing approximately 57.53% of the company's equity[173]. - Ms. Yeung Man Ying held a total of 759,091,000 shares, representing approximately 35.42% of the company's equity[173]. - The company has adopted a share option scheme that will remain in force until June 1, 2026[177]. - The directors are not aware of any tax relief or exemption available to shareholders due to their holdings in the company's securities[164]. - The company did not enter into any equity-linked agreements during the year[176]. Share Option and Award Schemes - The Existing Share Option Scheme allows for the issuance of options not exceeding 10% of the total issued shares, which is 255,789,630 shares, representing approximately 11.93% of the issued shares as of the report date[186][188]. - No share options have been granted, vested, cancelled, or lapsed under the Existing Share Option Scheme since its adoption, with a total of 255,789,630 shares available for grant as of December 31, 2024[192]. - The subscription price for shares under the Existing Share Option Scheme must be at least the highest of the closing price on the offer date, the average closing price for the preceding five business days, or the nominal value of a share[190]. - The total number of shares issued to each participant under the Existing Share Option Scheme in any 12-month period shall not exceed 1% of the aggregate number of issued shares[187]. - Any grant of options to a substantial shareholder or independent non-executive Director must be approved by independent non-executive Directors[189]. - The maximum number of shares that may be allotted upon exercise of all outstanding options must not exceed 30% of the aggregate number of issued shares from time to time[186]. - The Existing Share Option Scheme is designed to incentivize and retain high-caliber employees and attract valuable human resources[183]. - No performance target or minimum holding period is required for options under the Existing Share Option Scheme[191]. - The offer for options must be accepted within five days from the date of the offer[191]. - The Directors may determine the exercise period for options, which shall not exceed 10 years from the date of grant[192]. - The total number of shares available for grant under the Share Award Scheme as of January 1, 2024, was 194,879,030 shares[200]. - The Share Award Scheme was adopted on September 30, 2020, and was set to remain in force until September 29, 2030, but was terminated on March 13, 2024[196]. - The maximum number of shares that could be awarded under the Share Award Scheme was capped at 10% of the total issued shares, which amounted to 236,509,030 shares, representing approximately 11.03% of the issued shares as of the report date[198]. - No share awards were granted, vested, cancelled, or lapsed during the year under the Share Award Scheme[200]. - The Share Award Scheme aimed to recognize contributions from eligible persons and incentivize retention and attraction of suitable personnel for the Group's development[197]. - The maximum number of shares that could be awarded to a selected grantee in any 12-month period was limited to 1% of the total issued shares at the time of the scheme's adoption[198]. - The rules of the Share Award Scheme did not specify a uniform vesting period for share awards, allowing the Board to determine the vesting schedule[199].

Financial Performance - The group's audited net asset value as of December 31, 2024, is $647.38 million, an increase of 16.03% from $557.94 million in 2023[9]. - The group's audited post-tax comprehensive profit for 2024 is $120.35 million, a significant increase of 2,000.35% from $5.73 million in the previous year[9]. - The company's net profit attributable to shareholders for the year ended December 31, 2024, was $120.35 million, a significant increase of $114.62 million or 2000.35% compared to the previous year[19]. - The fund's net income from financial assets for the year was $137.5 million, compared to a net loss of $9.03 million in the previous year[19]. - The total net profit for 2024 reached $120,351,000, a significant increase from $5,726,000 in 2023, marking a year-over-year growth of approximately 2011%[129]. Investment Activities - The total value of the group's investment projects at the end of 2024 is $775.65 million, representing 96.13% of the total assets, up from $683.31 million in 2023[11]. - The group invested a total of $5.80 million in two projects in 2024, including $2.19 million in China International Capital Corporation and $3.61 million in iFlytek Medical Technology Co., Ltd.[12]. - The fund's total investment value as of December 31, 2024, was $775.65 million, with 58.71% allocated to financial services, 6.37% to cultural media and consumption, and 29.65% to information technology[28]. - The fund has approved a total of 69 investment projects with an approved investment amount of 4.27 billion RMB as of December 31, 2024[84]. - The fund aims to invest in quality mature projects while also exploring opportunities in emerging industries[108]. Dividend Policy - The group recommends a final dividend of $0.04 per share for 2024, maintaining the total annual dividend at $0.08 per share[9]. - The company declared an interim dividend of $0.04 per share for the year 2024, totaling $6,093,321, compared to no dividend in 2023[137]. - The proposed final dividend for 2024 is also $0.04 per share, totaling $6,093,321, down from $0.08 per share in 2023, which included a special dividend[137]. - The company aims to maintain a stable dividend policy while balancing business growth investments[139]. Economic Outlook - The World Bank projects global economic growth of 2.7% for 2025, with China's GDP expected to grow by 5.0%[10][14]. - The group anticipates challenges and opportunities in 2025, with a focus on supporting consumption recovery and infrastructure investment[14]. - China's economic performance is expected to continue recovering, with a focus on stabilizing growth, employment, and prices in 2025[107]. - Key tasks for 2025 include boosting consumption, enhancing investment efficiency, and promoting technological innovation to develop a modern industrial system[107]. Market Performance - The Shanghai Composite Index increased by 12.67% to close at 3,352 points by the end of 2024, while the Hang Seng Index rose by 17.67% to 20,060 points[11]. - The fund is monitoring foreign exchange risks, particularly due to a 1.49% depreciation of the RMB against the USD in 2024[25]. Corporate Governance - The company has established a domestic fund management platform, Shanghai Hanlun Private Fund Management Co., Ltd., to cater to domestic institutional investors[158]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[198]. - The independent non-executive directors confirmed that the related transactions were conducted on fair and reasonable terms in the overall interest of the shareholders[192]. Investment Risks - The fund faces risks from market competition as more investment firms enter the private equity space, leading to increased competition for potential investment targets[112]. - Operational risks include the complexities of evaluating and selecting investment projects, which can impact investment time costs and returns[113]. - The fund cannot acquire more than 30% voting rights in any invested company, limiting its control over management decisions[113]. Fund Management - The management fee paid or payable to the investment manager for the year ending December 31, 2024, is $10,673,598, compared to $10,458,859 in 2023[191]. - A temporary investment management agreement was signed on December 17, 2024, with a management fee of HKD 9,900,000 (or equivalent in USD or RMB) effective from January 1, 2025[195]. - The investment manager is responsible for all investment and management duties related to the company's operations[200].

Clinical Development and Product Pipeline - The company is advancing the clinical trials of its innovative oral metabolic drug HTD1801, which has shown multiple functions including glucose lowering, lipid lowering, anti-inflammatory, liver protection, and weight loss [6]. - HTD1801's clinical III phase data for Type 2 Diabetes Mellitus (T2DM) is expected to be announced, with NDA submission anticipated by the end of 2025 [7]. - The company has completed patient enrollment for three clinical III trials targeting T2DM in mainland China, assessing the efficacy and safety of HTD1801 [7]. - HTD1801 has demonstrated significant improvements in glycemic control and cardiovascular metabolic parameters, indicating its potential as an innovative treatment for comprehensive management of T2DM [7]. - The global multi-center clinical IIb trial for HTD1801 targeting Metabolic Associated Steatotic Liver Disease (MASH) is ongoing, with results expected in 2025 [8]. - The combination of HTD1801 with GLP-1RA is projected to provide further benefits in glucose lowering, lipid lowering, and weight reduction [9]. - HTD1801 has received compound patent authorization in major global markets, ensuring a long market exclusivity period [6]. - The core product HTD1801 has shown comprehensive benefits, including improved blood sugar control, weight reduction, and decreased liver fat, supported by clinical data from over 2,000 global trial participants [15]. - HTD1801 is currently being developed for multiple indications, including metabolic-associated fatty liver disease, type 2 diabetes, and severe hypertriglyceridemia, expanding its therapeutic scope [16]. - HTD1801 has received two Fast Track designations and one Orphan Drug designation from the FDA, with global development plans advancing towards commercialization [19]. - Phase IIb study for HTD1801 in metabolic-associated fatty liver disease has completed patient enrollment in the US, mainland China, and Hong Kong, with data readout expected in 2025 [21]. - HTD1801 significantly improved liver fat content compared to placebo in a Phase IIa study, indicating its potential as a long-term treatment for chronic diseases [20]. - Multiple Phase III studies for HTD1801 targeting type 2 diabetes have completed patient enrollment in China, with key data results expected in the first half of 2025 [19]. - HTD1801 demonstrated greater improvements in liver injury and inflammation markers compared to GLP-1 receptor agonists in clinical studies [20]. - HTD1801 treatment resulted in statistically significant reductions in serum alkaline phosphatase levels, a key biomarker for cholestatic liver disease, in Phase II trials [25]. - HTD1801 exhibited comprehensive benefits for both type 2 diabetes and metabolic-associated fatty liver disease, showing significant improvements in metabolic markers [22]. - The results from the 2024 EASD meeting highlighted HTD1801's efficacy in both Chinese and Western type 2 diabetes patients, demonstrating comprehensive benefits regardless of baseline conditions [22]. - HTD1801 has shown potential in reducing triglyceride levels in patients with severe hypertriglyceridemia, with clinical significance noted in subjects with baseline triglycerides above 200 mg/dL [29]. Financial Performance and Investments - Other income increased by 98.8% from RMB 34.2 million in the year ended December 31, 2023, to RMB 68.0 million in the year ending December 31, 2024, primarily due to an increase in government subsidies of approximately RMB 28.5 million [39]. - The fair value loss of convertible redeemable preferred shares decreased from a loss of RMB 522.2 million in the year ended December 31, 2023, to zero in the year ending December 31, 2024, as all preferred shares were converted to common stock upon listing [40]. - Research and development costs increased by 16.7% from RMB 311.6 million in the year ended December 31, 2023, to RMB 363.5 million in the year ending December 31, 2024, mainly due to an increase in third-party contract expenses of approximately RMB 60.7 million [42]. - Administrative expenses decreased by 40.6% from RMB 136.7 million in the year ended December 31, 2023, to RMB 81.2 million in the year ending December 31, 2024, primarily due to a reduction in professional service fees [44]. - The company recorded a loss of RMB 381.8 million for the year ending December 31, 2024, compared to a loss of RMB 939.3 million for the year ended December 31, 2023 [46]. - As of December 31, 2024, the company's current assets were RMB 513.4 million, with cash and cash equivalents amounting to RMB 310.8 million, a decrease of 48.9% from RMB 608.2 million as of December 31, 2023 [48]. - The company had outstanding interest-bearing bank loans of approximately RMB 56.9 million as of December 31, 2024, compared to RMB 3.5 million as of December 31, 2023 [49]. - The asset-liability ratio increased to 13.4% as of December 31, 2024, from 0.5% as of December 31, 2023 [51]. - Capital expenditures for the year ending December 31, 2024, were RMB 4.3 million, up from RMB 0.8 million for the year ended December 31, 2023, primarily due to increased renovations of leased properties [57]. - The company made investments of USD 12.5 million in each of Apollo Multi-Asset Growth Fund and Chaince Capital Fund LP, with related assets generating investment income of approximately RMB 11.2 million [53]. - The company reported a net loss of RMB 381.788 million for the fiscal year 2024, a significant improvement from a net loss of RMB 939.306 million in 2023, representing a reduction of approximately 59% [61]. - The adjusted net loss for 2024 was RMB 284.856 million, compared to RMB 288.443 million in 2023, indicating a slight improvement of about 1.5% [61]. - Employee benefits expenses totaled RMB 108.2 million for the fiscal year 2024, down from RMB 116.3 million in 2023, reflecting a decrease of approximately 7.5% [63]. - The company employed 70 staff members as of December 31, 2024, an increase from 66 employees in the previous year, marking a growth of about 6.1% [63]. Corporate Governance and Compliance - The company has no current foreign currency hedging policy but is monitoring foreign exchange risks, particularly with transactions in USD, RMB, and HKD [58]. - The company has adopted share incentive plans on January 22, 2020, and May 24, 2023, to enhance employee motivation and retention [64]. - The company is focused on maintaining environmental sustainability and compliance with relevant environmental laws and regulations [70][72]. - The company has not reported any significant violations of applicable laws and regulations as of December 31, 2024 [72]. - The company’s management is committed to continuous education and training programs to enhance employee skills and knowledge [64]. - The company’s financial performance analysis and future business development indicators are detailed in the management discussion and analysis section of the annual report [69]. - The group maintained stable employee relations during the reporting period, with no significant strikes or labor disputes affecting business activities [73]. - The group has no forfeited contributions available to reduce current contribution levels for retirement benefit plans [74][75]. - The company has established a long-term strategic partnership with Haiprui, leveraging its strong sales force and market share in Europe for the commercialization of licensed products [86]. - The company has not conducted any transactions under the HTD1801 agreement during the reporting period, thus no confirmations will be provided by auditors or independent non-executive directors [92]. - The company will ensure compliance with the terms of the HTD1801 agreement and applicable listing rules through regular monitoring by the CEO [93]. - Independent non-executive directors and auditors will review transactions related to the HTD1801 agreement annually and confirm compliance with relevant listing rules [94]. - The company has disclosed the background and terms of the HTD1801 agreement in its prospectus, along with the rationale for seeking waivers [94]. - The procurement amount from the group's top five suppliers accounted for approximately 36.7% of the total procurement amount for the year ending December 31, 2024, down from 44.5% in 2023 [96]. - The largest supplier's procurement amount represented about 12.5% of the total procurement amount for the year ending December 31, 2024, compared to 19.2% in 2023 [96]. - The company did not experience any significant disputes with its suppliers during the year ending December 31, 2024 [96]. - The company has not entered into any management or administrative contracts regarding its business operations [165]. - The company has a consistent governance structure with automatic renewals of director contracts, ensuring stability in leadership [120]. Leadership and Management - Dr. Liu has over 21 years of experience in new drug development, having held various leadership roles in multiple pharmaceutical companies [174]. - Dr. Liu has been serving as the Executive Director and CEO of Shenzhen Junshengtai since November 2011, with a focus on business strategy and development [176]. - The company has expanded its leadership team, with Ms. Yu Meng appointed as Executive Director in May 2023, responsible for overseeing R&D activities [178]. - Dr. Zhu Xun joined the company as a non-executive director in November 2020, providing strategic guidance and insights [179]. - The company has a strong emphasis on innovation, with Dr. Liu recognized as one of the top ten drug innovation scientists in 2021 [175]. - The leadership team has extensive experience in the pharmaceutical industry, with members holding positions in various listed companies, ensuring effective governance [182]. - The company is committed to R&D, with Ms. Yu Meng previously overseeing CMC and preclinical activities, indicating a robust pipeline [178]. - The company has received recognition for its contributions to technology innovation and entrepreneurship, enhancing its reputation in the industry [175]. - The board believes that Dr. Zhu can dedicate sufficient time to his duties despite holding positions in other companies, ensuring effective oversight [182].

Financial Performance - The company's revenue for the year ended December 31, 2024, increased by 24.1% to HKD 27,757 million, compared to HKD 22,371 million in 2023[11] - The profit attributable to shareholders rose by 24.1% to HKD 501.2 million, up from HKD 403.8 million in the previous year[11] - Basic earnings per share increased to HKD 80.09 from HKD 64.52, reflecting a growth of 24.1%[11] - The gross profit for the year was HKD 1,430 million, an increase of 8.6% from HKD 1,316 million, with a gross margin of 5.2% compared to 5.9% in the previous year[19] - The company reported a total comprehensive income of HKD 643,612 thousand for 2024, up from HKD 577,483 thousand in 2023[136] - Net profit for the year was HKD 672,491 thousand, representing a 15% increase from HKD 585,673 thousand in 2023[134] - The company reported a profit of HKD 403,801,000 for the year, contributing to total comprehensive income of HKD 399,225,000[140] Dividends and Shareholder Returns - The total dividend for the year is proposed at HKD 40.00 per share, an increase of 14.3% from HKD 35.00 in 2023, including a mid-term dividend of HKD 15.00[20] - The board proposed a final dividend of HKD 0.25 per share to shareholders listed on the register as of May 28, 2025[75] - The company has adopted a dividend policy prioritizing cash distributions to shareholders, subject to board discretion and shareholder approval[76] - The company paid dividends totaling HKD 250,335,000 in 2024, compared to HKD 219,043,000 in 2023[144] Market and Industry Trends - Sales revenue from the components team reached HKD 27,610 million, a 24.3% increase from HKD 22,210 million in the previous year, driven by demand for smartphones and consumer electronics[21] - The global smartphone shipment is projected to rebound by 6% to 1.24 billion units in 2024, following two years of decline, driven by emerging markets and aggressive supplier strategies[22] - The consumer electronics market is expected to experience transformative growth in 2024, driven by demand for AI-optimized smart home ecosystems and advanced electric vehicle control interfaces[23] Cash Flow and Financial Position - The group achieved a net operating cash inflow of HKD 552,809,000 for the year, a decrease from HKD 1,039,637,000 in the previous year[33] - The current ratio as of December 31, 2024, is 128%, slightly down from 135% in 2023[33] - The group has a net cash position of approximately HKD 736,368,000, an increase from HKD 651,780,000 in 2023[33] - Cash and cash equivalents surged from HKD 1,580,146,000 in 2023 to HKD 2,927,070,000 in 2024, marking an increase of about 85.2%[137] - The total cash and cash equivalents at the end of 2024 were HKD 2,927,070,000, up from HKD 1,580,146,000 at the end of 2023[144] Governance and Management - The company continues to adhere to high standards of corporate governance, believing it is key to business development and protecting shareholder interests[46] - The board currently consists of 4 executive directors, 2 non-executive directors, and 3 independent non-executive directors[47] - The company has been compliant with the Hong Kong Stock Exchange's corporate governance code, with some deviations noted[46] - The company has appointed new executive directors in 2024, indicating a strategic shift in leadership[45] - The company is committed to maintaining transparency and accountability in its operations, as reflected in its governance practices[46] Risk Management - The group remains focused on cash flow management amid geopolitical tensions affecting the semiconductor industry, particularly between China and the U.S.[29] - The company faces various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk, which are monitored closely[89] Sustainability and Corporate Responsibility - The company is committed to sustainable development, integrating environmental, social, and governance issues into its business operations[30] - The company is committed to environmental responsibility, utilizing LED lighting and eco-friendly materials in its operations[84] - The group made charitable donations of approximately HKD 2,783,000 during the year[115] Inventory and Asset Management - The carrying amount of inventory was HKD 3,061,620,000, with a provision for inventory of HKD 132,935,000, representing 30% of the group's total assets[124] - The management reviews inventory on a product-by-product basis to identify obsolete and slow-moving items[124] - Inventory increased significantly from HKD 1,780,168,000 in 2023 to HKD 3,061,620,000 in 2024, representing a growth of about 72.0%[137] Financial Reporting and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly present the group's financial position as of December 31, 2024[121] - The company confirmed compliance with the disclosure requirements under Chapter 14A of the Listing Rules[111] - The group’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards[180] Supplier and Customer Relationships - The largest supplier accounted for 68.6% of total procurement, while the top five suppliers represented 83.1% of total procurement[79] - The largest customer contributed 50.8% to total sales, and the top five customers accounted for 63.3% of total sales[80] - The company emphasizes maintaining close relationships with customers and suppliers to meet their current and long-term needs[88]

Financial Performance - The Group recorded a sales growth of 5.2% for the year, reaching RMB 2.57 billion[16] - The Group experienced a loss of RMB 43.0 million for the year, attributed to the inventory impairment[16] - The Group's revenue for the year increased by approximately 5.2% year-on-year to RMB 2,571,606,000, compared to RMB 2,445,428,000 in 2023[39] - Gross profit decreased by approximately 62.8% year-on-year to RMB 153,274,000, with a gross profit margin dropping by 10.8 percentage points to 6.0%[39] - The Group's loss for the year amounted to RMB 43,338,000, compared to a profit of RMB 162,790,000 in 2023[39] - Revenue from overseas sales amounted to RMB 1,492,134,000, representing approximately 58.0% of the Group's total revenue[44] - Revenue from the European Union countries was approximately RMB 516,543,000, accounting for about 20.1% of total revenue, while non-EU countries contributed approximately RMB 975,591,000, or 37.9%[44] - Domestic sales in China dropped by approximately 9.6% to RMB 1,079,472,000, representing about 42.0% of total revenue[46] - Other income and gains decreased to approximately RMB 11,384,000 from RMB 18,927,000 in 2023, primarily due to lower interest income and government grants[76] - Selling and distribution expenses amounted to approximately RMB 34,476,000, accounting for 1.3% of revenue, down from 1.7% in 2023, attributed to reduced sales commissions[77] - The Group recorded a net loss of approximately RMB 43,338,000 for the year, compared to a profit of approximately RMB 162,790,000 in 2023[89] Inventory and Impairment - An impairment provision of approximately RMB 199 million for inventories was recognized due to significant drops in raw material and flax yarn prices in Q4 2024[16] - A provision for inventory impairment of approximately RMB 199,431,000 was made as of December 31, 2024, due to significant drops in raw material and flax yarn prices[39] - The impairment provision for inventories as of December 31, 2024, was approximately RMB199,431,000, reflecting the difference between inventory costs and net realizable values[71] Production and Capacity - The Group's production capacity in China totals 23,000 tonnes, with all four production bases operating at near full capacity[59] - The new production facility in Ethiopia has boosted the Group's annual production capacity by 5,000 tonnes, with production ramping up to about 70%[66] - The Group owns 78.67% equity interest in the Heilongjiang facility, marking its entry into the industrial hemp yarn market, which is expected to grow due to national policies[60] Supply Chain and Operations - The company aims to improve operational efficiency and optimize the global supply chain through globalization, process orientation, standardization, and digitalization strategies[22] - The Group is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, focusing on sustainability and traceability in the linen supply chain[54] - The Group plans to build a warehouse in Heilongjiang to manage the supply chain of hemp materials, aiming to establish it as a national trading hub for hemp in China[53] - The Group's production bases are continuously being improved with the latest management systems and technologies, enhancing overall production efficiency and reducing costs[58] Financial Position - The total assets of the Group as of December 31, 2024, were RMB 3,115,009,000, a decrease from RMB 3,283,176,000 in 2023[31] - The total liabilities of the Group as of December 31, 2024, were RMB 1,640,180,000, compared to RMB 1,695,964,000 in 2023[31] - The Group's net current assets as of December 31, 2024, were approximately RMB 477,487,000 (2023: RMB 562,864,000), with total cash and deposits decreasing to approximately RMB 277,650,000 (2023: RMB 521,256,000)[107] - The liquidity ratio as of December 31, 2024, was approximately 129.9% (2023: 134.6%), and total equity was approximately RMB 1,474,829,000 (2023: RMB 1,587,212,000)[108] - The gross debt gearing ratio increased to approximately 69.4% as of December 31, 2024 (2023: 54.8%) due to higher borrowings[109] Dividends - The Board has recommended a final dividend of HK$0.05 per share for the year, down from HK$0.09 in 2023[40] - The Board proposed a final dividend of HKD 0.05 per share for the year, down from HKD 0.09 per share in 2023[43] - A final dividend of HK$0.05 per ordinary share has been recommended for the Year, pending approval at the upcoming annual general meeting[182] - The board proposed a final dividend of HKD 0.05 per ordinary share, subject to shareholder approval at the upcoming annual general meeting[189] Employee and Governance - The Group has 3,703 employees as of December 31, 2024, a slight increase from 3,700 employees in 2023[131] - The Group has adopted a share option scheme and a share award plan to incentivize Directors and employees contributing to the Group's success[135] - The company has a strong governance structure with a mix of executive and independent non-executive directors to ensure effective oversight[153][154] - The management team has a significant ownership stake in the company, aligning their interests with those of shareholders[145][147][148] Market and Economic Conditions - The Group faces risks including unstable demand for linen yarn, protectionism, and potential punitive tariffs on products made in China[176] - The Group's diversification of the supply chain is deemed urgent due to the aging population in China and rising operating costs in Asia[137] - The management team anticipates challenges in 2025 and beyond due to ongoing tariffs and political divergences among superpowers[137] Charitable Contributions - Charitable donations made by the Group during the Year totaled approximately RMB200,000, compared to RMB139,000 in 2023[185] - Charitable donations made by the group during the year totaled approximately RMB 200,000, compared to RMB 139,000 in 2023[192]