Financial Performance - The group's unaudited revenue for the six months ended January 31, 2025, was approximately SGD 5,027,000, a decrease of about SGD 2,464,000 compared to SGD 7,491,023 for the same period in 2024[5] - The group reported an unaudited loss of approximately SGD 1,097,000 for the six months ended January 31, 2025, compared to an unaudited loss of about SGD 760,000 for the same period in 2024[5] - Gross profit for the six months ended January 31, 2025, was SGD 1,156,045, down from SGD 1,723,141 in the same period of 2024, representing a decline of approximately 32.9%[6] - The basic and diluted loss per share for the six months ended January 31, 2025, was SGD 0.51, compared to SGD 0.91 for the same period in 2024[7] - The total revenue for the six months ended January 31, 2025, was SGD 5,026,764, down from SGD 7,491,023 in 2024, reflecting a decline of approximately 33%[20] - The company reported a pre-tax loss attributable to owners of SGD (1,097,007) for the six months ended January 31, 2025, compared to a loss of SGD (760,370) in 2024, representing an increase in loss of approximately 44%[28] - The company's total other income for the six months ended January 31, 2025, was SGD 39,339, down from SGD 81,799 in 2024, indicating a decline of approximately 52%[22] - Other income decreased from approximately 82,000 SGD for the six months ended January 31, 2024, to approximately 39,000 SGD for the six months ended January 31, 2025, mainly due to a reduction in received subsidies[39] - The group recorded a loss of approximately 1,097,000 SGD for the six months ended January 31, 2025, due to the combined impact of the aforementioned factors[41] Dividend and Equity - The board of directors did not recommend the payment of an interim dividend for the six months ended January 31, 2025[5] - The company did not declare an interim dividend for the six months ended January 31, 2025, consistent with the previous year[30] - The group's total equity as of January 31, 2025, was SGD 1,839,000, down from SGD 2,875,039 as of July 31, 2024[8] Assets and Liabilities - Total assets less current liabilities as of January 31, 2025, amounted to SGD 2,120,213, a decrease from SGD 3,308,156 as of July 31, 2024[8] - Cash and cash equivalents decreased by SGD 3,101,542 during the six months ended January 31, 2025, compared to an increase of SGD 631,403 in the same period of 2024[10] - The group's net cash used in operating activities was SGD 1,451,296 for the six months ended January 31, 2025, compared to SGD 400,666 for the same period in 2024[10] - As of January 31, 2025, the group's cash and cash equivalents were approximately 1,076,000 SGD, a decrease of approximately 3,078,000 SGD or 74.10% from the balance as of July 31, 2024[43] - Trade receivables increased to SGD 844,763 as of January 31, 2025, from SGD 588,287 as of July 31, 2024[8] - The total cost of asset acquisitions for the six months ended January 31, 2025, was approximately 485,000 SGD, compared to 5,000 SGD for the same period in 2024[31] Operational Changes - The group employed a total of 69 employees as of January 31, 2025, down from 96 employees in 2024, including 2 executive directors[42] - Administrative expenses decreased from approximately 2,389,000 SGD for the six months ended January 31, 2024, to approximately 2,088,000 SGD for the six months ended January 31, 2025, driven by cost-saving measures[40] - Interest expenses for bank and other borrowings decreased to SGD 29,902 from SGD 39,006, a reduction of approximately 23%[24] Government Grants and Financing - Government grants recognized during the period amounted to SGD 15,741, significantly lower than SGD 36,769 in the previous year, indicating a decrease of about 57%[22] - As of January 31, 2025, the group's factoring financing is secured by trade receivables amounting to approximately SGD 668,000, an increase from SGD 437,000 as of July 31, 2024[48] - The company entered into a bond agreement on August 10, 2023, with a principal amount of HKD 6,000,000 (approximately SGD 1,029,000) at an annual interest rate of 10%, which was fully repaid within six months[49] Strategic Initiatives - The company aims to deepen relationships with existing clients and explore new business opportunities to expand market share and implement new business strategies[51] - The group completed a rights issue on July 11, 2024, raising approximately 14,400,000 HKD (about 2,500,000 SGD) with 143,040,093 shares subscribed[45] - The net proceeds from the rights issue were allocated for upgrading the group's ERP system and hiring more employees in Singapore, with a total planned allocation of 13.50 million HKD[46] Governance and Compliance - The Audit Committee was established on June 20, 2016, consisting of three independent non-executive directors[62] - The Audit Committee's main responsibilities include reviewing the group's financial statements and reports, and assessing significant financial reporting judgments[62] - The Audit Committee has reviewed the unaudited condensed consolidated results for the six months ended January 31, 2025[62] - There are no significant events after the reporting period ending January 31, 2025, up to the date of this report[61] - The company has adopted a stock option plan effective for ten years from June 14, 2018, with no stock options granted, lapsed, exercised, or canceled during the reporting period[59] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the six months ending January 31, 2025[55] - The group has no significant contingent liabilities as of January 31, 2025, consistent with the previous period ending July 31, 2024[50]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to HKD 8,959 million from HKD 10,823 million in 2023, representing a decline of approximately 17.2%[8] - The core profit attributable to shareholders for 2024 was HKD 493 million, down from HKD 1,033 million in 2023, indicating a decrease of about 52.3%[8] - The total assets of the company as of December 31, 2024, were RMB 91,938 million, down from RMB 100,998 million in 2023, a decrease of about 8.9%[9] - The net profit attributable to shareholders in 2024 was RMB 180 million, a decrease of 78% from RMB 810 million in 2023[171] - The company's revenue for 2024 decreased by 16% to RMB 8.173 billion, down from RMB 9.752 billion in 2023, primarily due to a 26% drop in confirmed property sales[164] - Property sales in 2024 amounted to RMB 4.356 billion, compared to RMB 5.898 billion in 2023, with significant contributions from Wuhan Tiandi Yunting Phase III, generating RMB 4.138 billion[164] - The total revenue from property sales for the group was RMB 7.962 billion in 2024, compared to RMB 38.565 billion in 2023[122] - The total cash and bank deposits reached RMB 7.734 billion[43] - The financial expenses for 2024 totaled RMB 2.027 billion, down from RMB 2.167 billion in 2023, with interest expenses decreasing by 12% to RMB 2.058 billion[169] Property Sales and Development - The total confirmed property sales (including joint ventures and associates) amounted to RMB 7.962 billion[43] - The company achieved a total contract sales amount of RMB 15.055 billion, including RMB 14.553 billion from residential property sales and RMB 502 million from commercial property sales[120] - Residential property sales accounted for 97% of the total sales in 2024, with an average selling price of RMB 134,900 per square meter, up from RMB 56,700 per square meter in 2023[124] - The company confirmed property sales totaled RMB 7.962 billion in 2024, with an average selling price of RMB 25,500 per square meter, primarily impacted by a reduction in residential property completions[121] - The company has successfully developed and sold approximately 246,000 square meters of residential units in the Panlong Tiandi project from 2019 to 2024, with the last phase recording over 2,000 subscription applications[72] - The company has entered into a partnership with Yongye Group to develop the "Cuihu Tiandi" high-end residential project in the Shanghai Xintiandi community[54] - The company will continue to leverage its existing advantages in the mid-to-high-end market to enhance product competitiveness and brand influence, aiming for growth opportunities in high-quality products[54] Rental and Income Performance - The rental and related income for 2024 was RMB 9,752 million, a decrease from RMB 11,396 million in 2023, reflecting a decline of approximately 14.4%[11] - The overall rental income for 2024 reached RMB 2.456 billion, a 2% increase from RMB 2.398 billion in 2023, primarily driven by additional rental contributions from the opening of Panlong Tiandi[141] - The total rental income, including contributions from joint ventures, is projected to grow by 9% year-on-year to RMB 3.547 billion in 2024, with 77% of this income coming from properties in Shanghai[141] - The rental income from Shanghai Xintiandi reached RMB 488 million in 2024, up 7% from RMB 457 million in 2023, with an occupancy rate of 96%[142] - The rental rates for retail properties and mature office buildings were maintained at 94% and 91% respectively, indicating strong demand and stability in the commercial property sector[48] Sustainability and Environmental Initiatives - The company achieved a 100% renewable energy usage rate in its "Shanghai Xintiandi" and "Nanjing International Financial Center" properties, increasing the group's renewable energy usage rate to 35%[34] - The intensity of Scope 1 and Scope 2 carbon emissions was cumulatively reduced by 51.3% compared to the 2019 baseline, while Scope 3 tenant emissions intensity decreased by 28.1%[34] - The group received the "Climate Change Leadership Award" from CDP in 2024 and was included in the "CDP Climate Change A List," highlighting its leadership in climate governance and information disclosure[51] - The proportion of renewable energy usage in the group's overall operations increased from 20% in 2023 to 35% in 2024, marking significant progress in sustainability efforts[49] Debt Management and Financial Strategy - The company plans to repay USD 493.5 million in senior notes due on August 24, 2024, and USD 490 million due on March 3, 2025, as part of its prudent capital management strategy[29] - The group successfully repaid offshore debts totaling RMB 45.2 billion since 2021, including USD 490 million in senior notes due in March 2025, demonstrating prudent capital management[52] - The company has repaid a total of USD 493.5 million in senior notes as of August 2024, demonstrating its commitment to financial responsibility[112] - The company maintained a net asset liability ratio of 52% as of December 31, 2024, with total cash and bank deposits reaching RMB 7.734 billion[112] Market Conditions and Economic Outlook - The group anticipates ongoing adjustments in the Chinese real estate market due to geopolitical uncertainties, despite signs of recovery in first-tier cities[53] - In 2024, China's GDP growth rate was boosted to 5% due to economic stimulus policies, although the real estate market continued to decline, with a 10.6% drop in real estate investment[188] - The new residential sales and total construction area in China decreased by 17.6% and 14.1% respectively in 2024, but the decline has started to ease in the second half of the year[189] - Shanghai's Grade A office buildings saw a net absorption increase of 24.7% to 476,000 square meters in 2024, driven by demand from upgraded and diversified tenant portfolios[190] Future Plans and Strategic Initiatives - The company plans to continue implementing a "light asset strategy" to expand its business and explore innovative business models[43] - The company aims to actively explore innovative business models to adapt to the complex market environment[54] - The company plans to launch the next batch of villas and townhouses by the end of 2025, depending on construction progress and government approvals[124] - The company plans to continue expanding its asset management services and seek more collaboration opportunities with other organizations[144]

Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 11,550.68 million, a 37.5% increase from RMB 8,423.62 million in 2023[12]. - Gross profit for 2024 was RMB 4,521.95 million, up 34.1% from RMB 3,370.29 million in 2023[12]. - The company's net profit attributable to shareholders was RMB 1,450.80 million, representing a 111.8% increase compared to RMB 686.43 million in 2023[12]. - Earnings per share for 2024 was RMB 0.35, compared to RMB 0.14 in 2023, marking a 150% increase[12]. - Revenue for the year was approximately RMB 11,550,680,000, representing a year-over-year increase of about 37.12% due to rising gold prices and increased sales volume[22]. - Net profit for the year was approximately RMB 1,851,333,000, marking a significant increase of about 120.81% from the previous year, driven by higher gold prices and increased production and sales[23]. - Basic and diluted earnings per share attributable to ordinary shareholders were approximately RMB 0.35, reflecting a year-over-year increase of about 150.00%[24]. - The gross margin for the year was approximately 39.15%, a decrease of about 0.86% from 40.01% in 2023[53]. Assets and Liabilities - Total assets as of December 31, 2024, reached RMB 53,567.95 million, an increase of 14.5% from RMB 46,867.40 million in 2023[13]. - The company's total liabilities increased to RMB 28,375.65 million from RMB 24,623.07 million in 2023, reflecting a 15.5% rise[13]. - Cash and cash equivalents decreased to RMB 2,029.83 million from RMB 2,916.10 million in 2023, a decline of 30.4%[13]. - The group's total outstanding bank loans and other borrowings amounted to approximately RMB 12,984,719,000, an increase from RMB 9,767,317,000, with about RMB 7,573,647,000 due within one year[62]. - The leverage ratio as of December 31, 2024, was 43.4%, up from 42.1% the previous year, primarily due to an increase in debt levels[64]. Production and Resources - The total gold production for the year reached 26,449.73 kg (approximately 850,377.84 ounces), an increase of about 7.15% compared to the previous year[21]. - The company holds approximately 46.50 million ounces of gold mineral resources and about 16.63 million ounces of recoverable gold reserves as of December 31, 2024[10]. - The company expanded its gold resources by 261.16 tons in 2024, bringing total gold resources to 1,446.16 tons, with a recoverable amount of 517.54 tons[32]. - The total proven and probable gold reserves amount to 258.58 million tons with an average grade of 2.44 g/t, yielding a total metal content of 630.27 tons[37]. - The total measured and indicated gold resources stand at 216.98 million tons with an average grade of 2.36 g/t, equating to 512.75 tons of metal[37]. Strategic Initiatives - The company aims to achieve a production strategy of "half in the province, half outside" and is targeting a "double H" development model for international competitiveness[10]. - The company plans to enhance its technological advantages and cost efficiency in gold production to sustain growth in future years[10]. - The company aims to enhance production capacity and operational efficiency as part of its strategic focus for 2025, which is a critical year for achieving its "14th Five-Year" goals[17]. - The company is committed to maintaining a sustainable and innovative operational strategy to enhance long-term shareholder value[19]. - The company plans to invest RMB 142 million in geological exploration throughout the year to enhance resource growth[74]. Market and Economic Conditions - The international gold market experienced strong performance in 2024, with prices reaching a peak of USD 2,790.07 per ounce on October 31, driven by inflation concerns and geopolitical factors[29]. - The average international gold price for the year was $2,388.64 per ounce, with a peak of $2,790.07 and a low of $1,984.08[30]. - The increase in gold production was primarily attributed to overseas acquisitions of mines and an increase in refining and processing output[21]. Corporate Governance and Compliance - The company has established a safety and environmental committee to ensure compliance with environmental protection laws and regulations[139]. - The company has maintained a good relationship with customers throughout the year, emphasizing the importance of customer feedback[143]. - The company has not reported any significant violations of applicable laws and regulations during the year[140]. - The independent auditor has issued an unqualified opinion on the disclosed continuing connected transactions for the fiscal year ending December 31, 2024[185]. - The independent non-executive directors have confirmed that the continuing connected transactions were conducted under normal business terms and in the overall interest of shareholders[183]. Shareholder Returns - The board of directors proposed a cash dividend of RMB 0.05 per share, up from RMB 0.04 per share in the previous year[25]. - The anticipated distribution of dividends is subject to approval at the annual general meeting scheduled for June 2, 2025[26]. - The company declared a final cash dividend of RMB 0.04 per share for the fiscal year ending December 31, 2024, consistent with the previous year[113]. - The distributable reserves as of December 31, 2024, amounted to approximately RMB 5,301,104,000, an increase from RMB 4,379,653,000 in 2023[119]. Employee and Social Responsibility - The company has a total of 7,036 employees as of December 31, 2024, and invested RMB 4.3578 million in employee training during the year[146]. - The company made charitable donations totaling RMB 28,074,061 during the year, up from RMB 15,814,870 in 2023[124]. - The company has been recognized for its contributions to rural construction and civil action initiatives, highlighting its commitment to social responsibility[95]. Research and Development - The company has a strong focus on research and development of new products and technologies, although specific details were not provided in the extracted content[110]. - Research and development investments have increased by 25%, focusing on sustainable technologies and resource recycling[92].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 80,650,914, an increase from RMB 80,418,075 in 2023, representing a growth of 0.29%[13] - Profit before taxation increased to RMB 6,059,654 in 2024, up from RMB 4,779,461 in 2023, marking a growth of 26.8%[13] - The profit attributable to owners of the company reached RMB 3,734,429 in 2024, compared to RMB 3,117,461 in 2023, reflecting a year-on-year increase of 19.7%[13] - The basic earnings per share for 2024 was reported at 66.28 RMB cents, compared to 55.33 RMB cents in 2023, indicating a significant increase[13] - For the full year 2024, the Group's revenue grew 0.3% year-on-year to RMB 80.651 billion[58] - EBITDA grew 17.3% year-on-year to RMB 9.628 billion[58] - Profit attributable to shareholders increased by 19.8% year-on-year to RMB 3.734 billion[58] - Basic earnings per share rose by RMB 10.95 cents to RMB 66.28 cents[58] Market Position and Strategy - The company's market capitalization as of December 31, 2024, was HK$57 billion[12] - The company aims to strengthen its logistics and sales network with the goal of becoming the largest group for Chinese instant food and beverages globally[12] - The company has established a strategic alliance with PepsiCo for the beverage business in China, enhancing its market position[9] - The company plans to enhance investment in product innovation, branding, and channel expansion to ensure robust operations through 2025[35] - The company aims to strengthen the emotional connection with young consumer groups through targeted marketing strategies[34] - The company is focused on integrating digital technologies to enhance operational efficiency and consumer engagement[34] Sales and Distribution - The group operates an extensive sales network with 357 sales offices and 271 warehouses, serving 67,215 wholesalers and 220,623 direct retailers as of December 31, 2024[11] - The number of direct retailers increased to 217,087 in 2023, up from 254,975 in 2022, indicating a strategic focus on refining channel operations[29] - The company reported a total of 76,875 wholesalers in 2023, a slight increase from 76,528 in 2022, indicating stable distribution channels[29] Product Performance - Revenue from instant noodles declined 1.3% year-on-year to RMB 28.414 billion, accounting for 35.2% of total revenue[60] - Revenue from beverages grew 1.3% year-on-year to RMB 51.621 billion, representing 64.0% of total revenue[60] - The gross profit margin for the instant noodles business improved by 1.6 percentage points to 28.6% year-on-year, which helped offset the revenue decline[65] - The beverage business generated a gross profit of RMB 18,236.19 million with a gross profit margin of 35.3%, reflecting an 11.5% increase in gross profit year-on-year[62] Innovation and Product Development - The Group introduced advanced aerospace food technology, becoming the first instant noodle company to obtain a patent for aerospace application, enhancing product quality and technological strength[69] - The "Fresh Q Noodles" set a new benchmark in the non-fried noodle market, leading industry innovation with its fresh and chewy texture[73] - The "Golden Stock Beef" flavor from the "Soup Chef" line received widespread consumer praise, indicating successful product innovation[73] - The "Master Kong Mini Bucket" product line targeted outdoor and midnight snack scenarios, achieving steady sales growth[70] - The "Sugar-free Jasmine Green Tea" was launched, made from 100% hand-picked Hengzhou jasmine, catering to the health-conscious consumer trend[80] Financial Management and Cash Flow - The Group generated a net cash inflow of RMB8.264 billion from operating activities and a net cash outflow of RMB2.856 billion from investing activities during the year[93] - As of December 31, 2024, the Group's bank deposits and cash amounted to RMB16.003 billion, an increase of RMB1.264 billion compared to December 31, 2023[94] - The Group's total assets and total liabilities were RMB53.149 billion and RMB35.534 billion respectively, with a debt ratio of 66.9%, down by 0.7 percentage points from the previous year[95] - The gearing ratio improved from -7.3% as of December 31, 2023 to -19.3% in the current period[95] Sustainability and ESG Initiatives - The company is committed to social responsibility, aiming to create lasting value for consumers and rich returns for shareholders[112] - The Sustainable Development Committee oversees the Group's ESG governance and performance, ensuring compliance with relevant laws and regulations[126] - Master Kong emphasizes sustainable development with a mission to promote Chinese food culture and aims to resonate its development with consumer interests[131] - The Company has identified five core ESG tasks: food safety construction, product responsibilities, energy conservation and environmental protection, win-win partnerships, and corporate contribution[133] - Master Kong actively promotes research projects on salt reduction, sugar reduction, fat reduction, and nutritional fortification to meet consumer health needs[141] Food Safety Management - The company has established a food safety management structure that includes various specialized groups to ensure comprehensive supervision of the food safety system[190] - Master Kong has implemented the Management Measures for Retrospective Withdrawal of Products to trace production factors and recover defective products promptly[190] - The company conducts over 1,500 food safety risk monitoring indicators and performs more than 3.5 million quality tests annually[189] - In 2024, there were no product recalls for safety and health reasons in products sold or shipped by Master Kong[192] Employee Development and Talent Management - The Group recruited over 3,500 fresh graduates and hosted nearly 1,000 college students for internships, enhancing its grassroots talent pool[105] - The Leadership Empowerment Center was launched in May 2024, focusing on empowering core talent in management and strategy[99] Awards and Recognition - Master Kong was selected for the 2024 Fortune China 500 List, reflecting its exceptional innovation capabilities and profitability[165] - The Chief Financial Office of Master Kong received the "Value Cooperation Partner" title from China Merchants Bank for its focus on digital financial innovation[167] - Master Kong was honored with two Forbes China 2024 ESG Awards for its achievements in product innovation and sustainable development[168]

Financial Performance - For the year ended December 31, 2024, the company's revenue was approximately RMB 6,780.7 million, a decrease of 18.5% year-on-year, while net profit was approximately RMB 13.7 million, an increase of 14.1% year-on-year[14]. - The gross profit margin for 2024 was 4.09%, slightly down from 4.14% in 2023[11]. - In 2024, the total revenue of the company was approximately RMB 6,780.7 million, representing a year-on-year decrease of about 18.5%[42]. - The net profit for the year was approximately RMB 13.7 million, showing an increase of about 14.1% compared to the previous year[42]. - Gross profit decreased by approximately 19.4% from RMB 344.1 million in 2023 to approximately RMB 277.5 million in 2024, with a gross margin slightly declining from 4.14% to 4.09%[55]. - Other income and gains increased by approximately 23.9% from RMB 17.8 million in 2023 to approximately RMB 22.1 million in 2024, primarily due to fair value gains on financial assets[56]. - Administrative expenses decreased by approximately 10.8% from RMB 173.0 million in 2023 to approximately RMB 154.2 million in 2024, reflecting effective cost control measures[57]. - Net impairment losses on financial and contract assets decreased by approximately 22.6% from RMB 129.7 million in 2023 to approximately RMB 100.4 million in 2024, due to improved credit risk management[58]. - The company reported a net profit of approximately RMB 13.7 million for the year ended December 31, 2024, an increase of 14.1% from RMB 12.0 million in 2023, with a net profit margin rising from 0.1% to 0.2%[64]. Contracts and Projects - The total amount of new contracts signed in 2024 exceeded RMB 4.49 billion, including significant projects such as the Yiwu International E-commerce Digital Port Industrial Park[15]. - The total value of new contracts signed was approximately RMB 4,490.8 million, indicating a strategic optimization of the business portfolio[47]. - The company completed contracts worth RMB 31.8 billion from public tenders, accounting for 70.8% of its business[47]. - The company secured major projects, including a contract worth RMB 8.2 billion for the Yiwu International E-commerce Digital Port Industrial Park[48]. - The construction contracting business contributed approximately 98.8% of total revenue, with residential construction accounting for 40.0% and industrial construction for 30.3% in 2024[53]. Assets and Liabilities - As of December 31, 2024, total equity amounted to RMB 1,639.8 million, with a capital debt ratio of 16.0%[11]. - Non-current assets were valued at RMB 477.7 million, while current assets were RMB 5,836.9 million[11]. - Cash and cash equivalents decreased from approximately RMB 263.6 million in 2023 to approximately RMB 184.0 million in 2024[65]. - Contract assets decreased by approximately 8.2% from RMB 3,142.0 million in 2023 to approximately RMB 2,883.5 million in 2024, consistent with the decline in revenue[67]. - Trade receivables and notes receivable decreased by approximately 2.5% from RMB 2,217.7 million as of December 31, 2023, to RMB 2,162.6 million as of December 31, 2024, primarily due to a 58.2% reduction in notes receivable and an increase in impairment provisions by 52.6%[68]. - Trade payables and notes payable decreased by approximately 13.3% from RMB 3,775.7 million as of December 31, 2023, to RMB 3,274.3 million as of December 31, 2024[69]. - Total interest-bearing borrowings decreased from RMB 665.8 million in 2023 to RMB 575.2 million in 2024, with short-term borrowings of RMB 458.5 million due within one year[70]. - The debt-to-equity ratio remained stable at approximately 15.9% for 2023 and 16% for 2024[71]. Management and Governance - The company has a management team with extensive experience in the construction industry, with members having over 30 years of experience on average[21][24]. - The management team includes professionals with advanced qualifications, such as senior economic engineer and senior construction engineer certifications[22][24]. - The company emphasizes continuous professional development, with executives pursuing advanced degrees and certifications throughout their careers[22][26]. - The board of directors includes independent non-executive members with significant academic and legal expertise, contributing to corporate governance[25][26]. - The company has established a comprehensive internal control system that effectively mitigates risks and ensures compliance with relevant laws and regulations[164]. - The board consists of six executive directors and three independent non-executive directors, fully complying with the corporate governance code since the fiscal year ending December 31, 2024[154]. - The company has established four board committees: Audit Committee, Remuneration and Nomination Committee, and Strategic Committee, to oversee various aspects of the company's affairs[177]. - The audit committee, established on December 23, 2015, is responsible for reviewing and supervising the company's financial reporting procedures and internal control systems[188]. - The remuneration and nomination committee evaluates the overall remuneration policy and structure for all directors and senior management, ensuring no director decides their own remuneration[189]. Strategic Focus and Future Outlook - The company is focusing on digital transformation through smart construction, with projects like the Tongxiang Feng Zikai Art Center and Tongxiang Traditional Chinese Medicine Hospital adopting "BIM + Smart Construction" management models[15]. - Looking ahead to 2025, the company aims to embrace the new era of smart construction driven by innovations in AI, 5G, and blockchain technology[16]. - The company plans to maintain a focus on quality improvement and foundational strengthening as part of its strategic actions for future growth[16]. - The company expects the construction industry to benefit from policy support and product improvements, with a focus on technological innovation and resource integration to strengthen competitive advantages[81]. - The company is committed to expanding its market presence and enhancing operational efficiency through strategic initiatives[21][24]. Shareholder Information - As of December 31, 2024, Mr. Lu Yaoneng holds 204,000,000 shares of domestic shares, representing 38.25% of the company's total equity[116]. - Major shareholder Jujian Holdings owns approximately 51% of the company, with Mr. Lu Yaoneng controlling about 51.33% of Jujian Holdings[118]. - The group did not recommend a final dividend for the year ending December 31, 2024, compared to 2.0 HK cents per share (pre-tax) in 2023[99]. - The group's available reserves for distribution to shareholders as of December 31, 2024, amounted to RMB 768.5 million, a decrease from RMB 779.8 million in 2023[111]. Risk Management - The group faced significant financial risks, primarily credit risk and liquidity risk, which are regularly assessed and managed by the management team[91]. - The management team regularly evaluates key operations for risk assessment to implement appropriate risk responses[92]. - The group is committed to sustainable development and has implemented multi-faceted risk analysis regarding environmental, social, and governance issues[95]. - The group has established compliance procedures to ensure adherence to applicable laws and regulations that significantly impact its operations[95]. Corporate Social Responsibility - The group made charitable donations of approximately RMB 0.13 million for the year ended December 31, 2024, compared to RMB 0.87 million in 2023[152].

Financial Performance - Revenue for 2024 reached RMB 956,853,000, a 33.1% increase from RMB 718,487,000 in 2023[13] - Gross profit for 2024 was RMB 101,288,000, with a gross margin of 10.6%, down from 12.2% in 2023[13] - Net profit attributable to equity shareholders for 2024 was RMB 19,320,000, representing a net profit margin of 2.0%, compared to 1.6% in 2023[13] - In 2024, the company's revenue and profit reached approximately RMB 956.9 million and RMB 19.3 million, representing an increase of about 33.2% and 71.5% respectively compared to the previous year[51] - Net profit increased from approximately RMB 11.3 million for the year ended December 31, 2023, to approximately RMB 19.3 million for the year ended December 31, 2024, representing a growth of about 71.5%[74] - Gross profit increased by approximately 15.5% from about RMB 87.7 million to about RMB 101.3 million, while gross margin decreased from 12.2% to 10.6%[66] Assets and Liabilities - Non-current assets increased to RMB 1,133,345,000 in 2024 from RMB 1,001,275,000 in 2023[18] - Current assets rose to RMB 710,242,000 in 2024, up from RMB 637,865,000 in 2023[18] - Current liabilities increased to RMB 666,232,000 in 2024, compared to RMB 482,859,000 in 2023[18] - The debt-to-equity ratio for 2024 was 31.8%, up from 24.7% in 2023[18] - Cash and cash equivalents increased to approximately RMB 57.5 million as of December 31, 2024, from approximately RMB 40.6 million as of December 31, 2023, due to increased borrowings[75] - Trade receivables and notes decreased from approximately RMB 270.5 million as of December 31, 2023, to approximately RMB 257.6 million as of December 31, 2024, a decrease of about 4.8%[76] - Trade payables and notes increased from approximately RMB 280.8 million as of December 31, 2023, to approximately RMB 373.0 million as of December 31, 2024, an increase of about 32.8%[77] - Interest-bearing borrowings rose from approximately RMB 243.5 million as of December 31, 2023, to approximately RMB 316.5 million as of December 31, 2024[78] Market and Sales - In 2024, the company achieved a significant revenue increase of approximately 33.2% to about RMB 956.9 million, with sales of new energy vehicle products accounting for approximately 31.6% of total revenue[23] - The company sold products worth approximately RMB 301.5 million to BYD, representing about 31.5% of the group's total sales[24] - The company has successfully captured opportunities in the rapidly growing new energy vehicle sector, leading to substantial capital expenditure investments[23] - The production and sales of new energy vehicles in China reached 12.9 million units each, with year-on-year growth of 34.4% and 35.5% respectively, making up 40.9% of total vehicle sales[47] - The total vehicle production and sales in China for 2024 were approximately 31.3 million and 31.4 million units, with year-on-year growth of about 3.7% and 4.5%[46] - The export of vehicles from China reached 5.9 million units in 2024, marking a year-on-year increase of approximately 19.3%[46] Strategic Focus and Future Plans - Future strategies include expanding market presence and enhancing research and development capabilities[12] - The company plans to enhance collaboration with new energy vehicle enterprises and explore more customer opportunities in 2025[28] - The company aims to expand its overseas market and increase product exports as part of its growth strategy[28] - The company is focusing on research and development to understand future industry trends, including new material applications and technologies[25] - The company is committed to maintaining growth and delivering sustainable long-term value to shareholders[29] Corporate Governance - The company emphasizes the importance of corporate governance and compliance, with independent directors ensuring accountability and transparency in operations[38] - The board includes independent non-executive directors with over 27 years of experience in accounting, corporate finance, compliance, and auditing, ensuring robust governance[38] - The company maintains a high level of corporate governance and has adopted the corporate governance code as per the listing rules, with the board consisting of four executive directors and three independent non-executive directors[137] - The board has mechanisms in place to ensure independent opinions are obtained, and these mechanisms were deemed effective during the fiscal year ending December 31, 2024[160] - The company has established internal controls and risk management procedures to address various operational, financial, and market risks[102] Risk Management - The company faces significant operational risks due to reliance on a few major clients, which could adversely affect financial performance if any client reduces orders[94] - The company is exposed to financial risks including interest rate risk, credit risk, and liquidity risk, which are regularly assessed by management[95] - The company is committed to sustainable development and has initiated multi-faceted risk analysis regarding environmental, social, and governance issues[105] Shareholder Information - The company proposed a final dividend of HKD 0.02 per share for the year ending December 31, 2024, up from HKD 0.015 per share in 2023[113] - The distributable reserves of the company as of December 31, 2024, are RMB 822 million, down from RMB 932 million as of December 31, 2023[126] - The board retains the discretion to update or modify the dividend policy based on various factors including operational performance and financial condition[117] - The annual general meeting is scheduled for May 30, 2025, where the proposed dividend will be subject to shareholder approval[120] Management and Leadership - The company has a strong leadership team with extensive experience in the manufacturing and financial sectors, including over 22 years in the cylinder and cylinder head manufacturing industry[35][36][37] - The company has a diverse management team with expertise in various sectors, including automotive and technology, which supports its growth strategy[40] - The leadership team has a proven track record of navigating the company through market changes and restructuring processes since its inception[35][36][37] - The company is actively involved in strategic decision-making processes that leverage the extensive experience of its board members in various industries[41] Audit and Compliance - KPMG has resigned as the company's auditor effective November 28, 2024, due to a disagreement over audit fees, and Fuhua Mazars has been appointed as the new auditor[165] - The audit committee held three meetings during the year and reviewed the financial statements for the six months ending June 30, 2024, and the year ending December 31, 2024[182] - The audit committee recommended the reappointment of the external auditor for the upcoming annual general meeting, confirming no disagreements with the board regarding the auditor's replacement[182]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately HKD 205.8 million, an increase of about HKD 37.6 million or 22.3% compared to HKD 168.2 million for the fiscal year ending December 31, 2023[10] - The profit attributable to equity holders for the year was HKD 8.7 million, a decrease of approximately HKD 5.2 million or 37.3% from HKD 13.9 million in the previous year[10] - The group's revenue increased from approximately HKD 168.2 million for the year ended December 31, 2023, to approximately HKD 205.8 million for the year ended December 31, 2024, representing a growth of about 22.3% or approximately HKD 37.6 million[18] - Gross profit decreased from approximately HKD 20.7 million to approximately HKD 17.7 million, a decline of about 14.4%, with the gross profit margin dropping from approximately 12.3% to 8.6%[21] - Other income and net other (losses)/gains decreased by approximately HKD 2.9 million or 67.5%, from approximately HKD 4.3 million to approximately HKD 1.4 million, mainly due to a reduction in bank interest income[22] - The total comprehensive income for the year ended December 31, 2024, was approximately HKD 8.7 million, a decrease of about HKD 5.2 million or 37.3% compared to HKD 13.9 million for the year ended December 31, 2023[27] Cash and Assets - As of December 31, 2024, the company's cash and bank balances were approximately HKD 63.4 million, a decrease of about HKD 51.1 million or 44.7% from HKD 114.6 million as of December 31, 2023[10] - Cash and bank balances decreased by approximately HKD 51.2 million or 44.7%, from approximately HKD 114.6 million to approximately HKD 63.4 million, primarily due to dividend payments of approximately HKD 70.0 million during the year[30] - The debt-to-equity ratio increased from approximately 0.5% to approximately 1.4% due to a decrease in equity attributable to the company's shareholders[35] - The current ratio decreased from approximately 7.0 times to approximately 3.6 times, with net current assets dropping from approximately HKD 137.2 million to approximately HKD 74.9 million[36] Contracts and Operations - The company secured 20 contracts during the fiscal year, with a total contract value of approximately HKD 806.1 million, of which 3 contracts valued at HKD 47.1 million were completed[16] - There are currently 17 ongoing contracts with a total value of approximately HKD 759.0 million as of December 31, 2024[16] - The company is focused on expanding its operations in slope engineering, which includes various services such as installing protective nets and drainage systems[17] - Four new clients contributed to five engineering project contracts with an estimated total value of HKD 287.7 million, addressing the risk of limited customer numbers[38] Market and Economic Conditions - The company remains cautious about future business prospects due to uncertainties in labor and material costs influenced by macroeconomic conditions[12] - The company has experienced challenges due to geopolitical tensions and economic uncertainties, impacting its overall performance outlook[12] - The Hong Kong government plans to increase spending on landslide prevention from HKD 1 billion to HKD 1.3 billion in 2025, which is expected to benefit the company's operations[12] - The government plans to increase spending on landslide prevention from HKD 1 billion to HKD 1.3 billion in 2025, indicating potential growth opportunities for the group[54] Corporate Governance - The company is committed to high standards of corporate governance, having adopted the principles and code provisions of the Corporate Governance Code since its GEM listing on December 13, 2019[75] - The company maintains a focus on compliance and governance through its independent directors and committees[62] - The board consists of six members, with four being independent non-executive directors, exceeding one-third of the board as per listing rules[78] - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, each with defined written terms of reference[91] - The board is responsible for approving financial statements and annual budgets, as well as monitoring business performance[82] Risk Management - The company has established a risk management and internal control system to ensure the accuracy and reliability of presented data[134] - The board is responsible for maintaining effective risk management and internal control systems to protect the company's assets and shareholder interests[130] - The independent auditor is responsible for auditing and confirming the financial statements of the group, reporting any control deficiencies to management[135] Environmental, Social, and Governance (ESG) - The ESG report outlines the company's commitment to sustainable development and responsible environmental, social, and governance management for the fiscal year ending December 31, 2024[157] - The board of directors is responsible for establishing ESG goals, developing sustainable strategies, and reviewing performance[158] - The company identifies 15 key ESG issues through a comprehensive materiality assessment to focus on areas with significant impact on long-term sustainability and value creation[166] - The company has achieved ISO 14001:2015 certification for its environmental management system, demonstrating compliance with internationally recognized standards[169] Employee and Management - As of December 31, 2024, the group had 150 employees, an increase from 119 employees in 2023, with total employee costs approximately HKD 57.1 million, unchanged from 2023[41] - The company’s management team regularly reviews employee compensation policies to ensure competitiveness and compliance[82] - The company emphasizes gender diversity at all levels and is taking measures to promote it through recruitment and career development opportunities for women[118] Shareholder Communication - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[153] - The company has established a shareholder communication policy to provide balanced and comprehensible information to shareholders and investors[153] - Shareholders have the right to convene special general meetings if they hold at least 10% of the voting rights[149]

Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB 16,126.5 million, representing a 19.7% increase from RMB 13,471.2 million in 2023[14]. - The gross profit for the same period was RMB 2,266.8 million, up by 16.6% compared to RMB 1,943.7 million in 2023[14]. - Profit attributable to owners of the parent was approximately RMB 566.4 million, a slight increase of 5.8% from RMB 535.4 million in 2023[14]. - The Group's profit for the year was RMB 563.5 million, which reflects a decrease of 0.8% from RMB 567.8 million in 2023[14]. - Basic earnings per share increased to RMB 0.41 in 2024 from RMB 0.39 in 2023, based on a weighted average of 1,373,897,419 shares[16]. - The financial highlights indicate a strong performance in revenue growth, despite a slight decline in overall profit for the year[16]. Dividends - The Board recommended a final dividend of 7 HK cents per share for the year ended December 31, 2024, consistent with the previous year[17]. - An interim dividend of 4 HK cents per share was declared and paid during the year[17]. - The Group continues to maintain a stable dividend policy, reflecting its commitment to returning value to shareholders[17]. Revenue Growth by Segment - Leoch achieved RMB16.1 billion in revenue for 2024, a 19.7% increase from 2023, driven by diversified product offerings and expanded sales channels[22]. - SLI Batteries revenue surged 60.9% to RMB5.9 billion, supported by the rising adoption of AGM and EFB technologies in start-stop systems[27]. - Data Centre and Network Batteries revenue grew 9% to RMB6.9 billion, driven by sustained demand for data center and telecom solutions[31]. - Motive Power Batteries revenue increased by 19.2% to RMB1.4 billion, fueled by trends in e-commerce logistics and industrial automation[31]. - EMEA region revenue increased by 42.3%, demonstrating strong performance across multiple segments[33]. - Americas region achieved growth of 20.1%, primarily driven by expanding demand for Energy Storage Systems (ESS)[33]. Market Trends and Strategic Initiatives - The company is well-positioned to capitalize on trends in renewable energy storage and electric vehicles, leveraging its diversified portfolio[26]. - AGM and EFB technology offerings were significantly expanded to align with the automotive industry's transition towards electrification[37]. - The acquisition of Yuasa Battery (Guangdong) strengthened aftermarket distribution channels for the Group[38]. - Rising shipping costs and reduced tax incentives in China pose significant challenges for 2024, prompting the company to optimize operations and diversify raw material sources[42]. - A strategic spin-off of Leoch Energy Inc. is planned for February 2025 to unlock value and enhance focus on regional growth opportunities[49]. Research and Development - The company plans to enhance its development of Battery Management Systems (BMS), Energy Storage Systems (ESS), and AI-driven Energy Management Systems (EMS) by 2025[43]. - The company plans to increase R&D investment to improve performance indicators of core products, including high-power lead-acid batteries and high-density lithium-ion energy storage systems[107]. - The company aims to develop energy management systems that integrate artificial intelligence for improved efficiency and safety in lithium battery projects[133]. Challenges and Operational Efficiency - Challenges in the recycling business included the removal of government incentives, impacting profitability and cash flow for reinvestment[73]. - The Group plans to enhance operational efficiency through digital means and optimize cost structure while incorporating sustainable development goals into strategic planning[138]. - The Group's manufacturing network will cover China, Southeast Asia, South Asia, and North America to ensure supply chain resilience and delivery efficiency[137]. Financial Position and Assets - Trade receivables increased by 14.1% to RMB 3,704.3 million, reflecting higher sales volumes[179]. - Inventories rose by 22.4% to RMB 3,365.2 million, driven by strong demand in the power solutions business and the acquisition of a subsidiary[174]. - The Group's net current assets increased to RMB 1,296.2 million as of December 31, 2024, from RMB 1,160.7 million in 2023, with cash and bank deposits decreasing to RMB 1,406.0 million from RMB 2,529.1 million[187]. - Bank borrowings increased to RMB 5,121.5 million as of December 31, 2024, compared to RMB 4,457.4 million in 2023, with all borrowings being interest-bearing[187]. - The Group's gearing ratio rose to 35.3% as of December 31, 2024, up from 31.6% in 2023, calculated by dividing total borrowings by total assets[191]. Future Outlook - The Group expects to achieve double-digit revenue and profit growth by 2025, further consolidating its leading position in the global energy solution provider field[138]. - The global data center market size is expected to exceed USD 300 billion by 2025, with an average annual growth rate of over 15%[107]. - The lithium-ion battery market is expected to surpass USD 400 billion by 2030, with a CAGR of 25%-30% in the energy storage sector and 20%-25% in the automotive battery sector[110]. - The global energy storage market is forecasted to exceed USD 500 billion by 2025, with lithium-ion systems accounting for over 80% of the market share[111].

Financial Performance - The company reported a revenue of approximately HKD 1,253,000,000 for the year ended December 31, 2024, a decrease of about 12.9% compared to HKD 1,439,400,000 for the same period last year[4]. - The gross profit for the reporting period was approximately HKD 45,800,000, which is an increase of about 0.5% from HKD 45,600,000 in the previous year[4]. - The net loss for the year was approximately HKD 128,700,000, compared to a net profit of HKD 51,400,000 in the prior year[4]. - Basic loss per share was HKD 32.80, a significant decline from earnings of HKD 12.47 per share in the previous year[6]. - The agricultural and meat products business revenue decreased by about 12.9% to approximately HKD 1,253,000,000, influenced by the economic downturn in China[45]. - The total revenue from other income and gains was HKD 10,873 in 2024, a decrease of 78.1% from HKD 49,816 in 2023[20]. Assets and Liabilities - Total assets decreased to HKD 915,921,000 from HKD 1,275,209,000 year-on-year, indicating a reduction in asset base[7]. - Current liabilities decreased to HKD 568,560,000 from HKD 789,077,000, reflecting improved liquidity management[7]. - The company’s equity attributable to owners decreased to HKD 353,487,000 from HKD 499,856,000, reflecting a decline in shareholder value[8]. - Trade receivables decreased to HKD 238,477,000 in 2024 from HKD 396,841,000 in 2023, indicating a decline of approximately 40%[31]. - The total amount of trade and other receivables was HKD 911,212,000 in 2024, down from HKD 1,135,753,000 in 2023, representing a decrease of about 19.8%[31]. - The total trade payables and notes payable decreased to HKD 165,687,000 in 2024 from HKD 419,042,000 in 2023, a decline of approximately 60.5%[34]. Cash Flow and Financing - The company’s cash and bank balances decreased to HKD 4,575,000 from HKD 7,654,000, indicating a tighter cash position[7]. - The company's financing costs decreased to HKD 18,406 in 2024 from HKD 19,100 in 2023, reflecting a reduction of 3.6%[22]. - The company recorded a significant impairment loss on goodwill amounting to HKD 1,457,000, which was not present in the previous year[5]. - The company reported a significant decrease in interest income from banks, which fell to HKD 25 in 2024 from HKD 1,600 in 2023[20]. - The company's total borrowings at the end of the reporting period were approximately HKD 389,500,000, an increase from HKD 364,700,000 in the previous year[52]. Employee Costs - Total employee costs in 2024 were HKD 17,364, an increase of 72.2% compared to HKD 10,106 in 2023[23]. - Total employee costs during the reporting period amounted to HKD 17,400,000, compared to HKD 10,100,000 in 2023[65]. Strategic Focus and Business Development - The company plans to focus on agricultural product cultivation, processing, and trading, as well as seafood and meat products trading as part of its core business strategy[9]. - The company is actively developing agricultural products and meat products, including poultry, seafood, and prepared foods, and has begun supplying products to supermarkets and online platforms in China[68]. - The company is exploring various cooperation models with e-commerce operators and online sales platforms to enhance online sales of its agricultural and meat products, thereby diversifying its revenue sources[69]. - The company aims to promote high-quality agricultural products into households in the Greater Bay Area, contributing to national rural revitalization and supporting local food security initiatives[69]. Risk Management and Governance - The board is responsible for evaluating and determining the nature and extent of risks acceptable to achieve the group's strategic objectives, ensuring an effective risk management and internal control system is in place[77]. - The audit committee continuously reviews significant risk management and internal control systems, including financial, operational, and compliance controls[78]. - The company has engaged external consultants to perform internal credit review functions and assess the effectiveness of internal control systems and risk management functions annually[78]. - The nature and extent of significant risks faced by the group have not changed during the reporting period, and no significant control deficiencies were identified[78]. Regulatory and Reporting Matters - The company is currently analyzing the impact of the new Hong Kong Financial Reporting Standards on its consolidated financial statements[15]. - The group's financial statements for the year ending December 31, 2024, have been verified by the external auditor, but no assurance is provided on the preliminary announcement[81]. - The company plans to publish its annual results and report on its website and the stock exchange's website at an appropriate time[83]. - Trading of the company's shares was suspended on April 1, 2025, pending the announcement of the annual results for 2024, and will resume on April 23, 2025[85].

Financial Performance - For the year ended December 31, 2024, the company's revenue increased to RMB 2,435,830, up from RMB 2,390,517 in 2023, representing a growth of approximately 1.9%[7] - The profit attributable to the owners of the company for 2024 was RMB 36,392, a significant recovery from a loss of RMB 17,553 in 2023[7] - The return on equity attributable to the owners improved to 3.25% in 2024, compared to a loss of 1.61% in 2023[12] - The Group's total revenue for the twelve months ended December 31, 2024, was approximately RMB2,435,830,000, representing a year-on-year increase of 1.90% from RMB2,390,517,000 in 2023[40] - The Group achieved a gross profit of RMB293,879,000, with a gross profit margin of approximately 12.06%, up from 11.29% in the previous year[40] - Profit before tax for 2024 was RMB 33,069,000, compared to a loss of RMB 17,678,000 in 2023, indicating a significant turnaround in performance[144] - The gross profit for the year was RMB293,879,000, an increase of 8.85% from RMB269,996,000 in 2023[102] Dividends and Shareholder Returns - The company declared a dividend per share of RMB 2.00 for 2024, doubling from RMB 1.00 in 2023[13] - The Group's cash dividend for the year is RMB2.00 cents per share[47] - The board has recommended a final dividend of RMB 2 cents per share for the year ended December 31, 2024, compared to RMB 1 cent per share in 2023[128] Market and Industry Trends - The domestic papermaking industry saw a gradual introduction of new production capacity, leading to a relatively sufficient supply of raw paper[38] - Despite low overall demand in downstream sectors, festive factors in the fourth quarter boosted market demand, supporting rising paper prices[38] - The global economy showed unexpected resilience in 2024, with China's proactive fiscal policies aiding economic recovery[33] - The consumer market showed signs of recovery in the second half of 2024, aided by national policy efforts and seasonal demand[67] - In 2025, domestic demand is expected to be the primary driver of China's economic growth, leading to increased demand for high-quality paper and packaging products[91] Operational Efficiency and Capacity - The Group's vertically integrated industrial chain includes waste paper recycling, packaging paper manufacturing, and production of paper-based packaging products[78] - The Group has 8 packaging paper production lines with a total designed annual capacity of 900,000 tons as of December 31, 2024, making it one of the leading producers in Guangdong[80][81] - The planned annual capacity for corrugated cartons is 298,323,000 square meters, while the planned capacity for honeycomb paper-based products is 11,008,000 square meters[83][84] - The actual capacity utilization rate for the No. 1 paper machine in Zhongshan was 91.77% in 2024, compared to 91.31% in 2023[82] - The effective capacity utilization rate for the new No. 2 corrugated cartons production line was 91.76% in 2024[86] Financial Position and Cash Flow - As of December 31, 2024, the group's net assets increased to RMB 1,406,942,000 from RMB 1,370,638,000 in 2023[132] - The current ratio improved from 1.04 in 2023 to 1.18 in 2024, indicating better short-term financial health[132] - The net cash outflow from operating activities for 2024 was RMB 417,901,000, compared to RMB 120,773,000 in 2023[133] - The net cash inflow from financing activities amounted to RMB 619,310,000 in 2024, reflecting increased borrowing activities[134] - The net gearing ratio increased to 70.23% in 2024 from 61.96% in 2023, indicating a higher level of debt relative to equity[132] Cost Management - The cost of sales increased from RMB2,120,521,000 in 2023 to RMB2,141,951,000 in 2024, representing an increase of 1.01%[99] - Distribution and selling expenses increased by approximately 2.37% from RMB86,334,000 in 2023 to RMB88,381,000 in 2024[114] - Administrative expenses decreased by approximately 4.17% from RMB138,972,000 in 2023 to RMB133,183,000 in 2024[115] - Research and development expenses decreased from RMB90,235,000 in 2023 to RMB86,688,000 in 2024, representing approximately 3.56% of sales revenue[117] Human Resources and Management - As of December 31, 2024, the Group employed 2,705 employees, an increase from 2,615 employees in the previous year, with total staff costs amounting to RMB 308,669,000, up from RMB 287,052,000[167][172] - The total number of employees in production and quality control functions is 1,797, representing 66.43% of the total workforce[173][172] - The Group plans to optimize human resources and promote a younger management team to adapt to transformative changes in the industry[92] Risks and Challenges - The Group's packaging business faces significant competition, with operational risks stemming from macroeconomic policy adjustments and rising raw material prices impacting profitability[179][180][181] - The Group's operational risks include potential increases in costs due to tightening environmental protection policies in China[179][186] Governance and Compliance - The Board of Directors consists of nine members, including five Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition of skills and experience[198] - The Company has received annual confirmations of independence from each Independent Non-executive Director, adhering to the independence guidelines set out in Rule 3.13 of the Listing Rules[199] - The Board assesses a director's independence on a case-by-case basis, considering factors such as business acumen, industry experience, and professional qualifications, rather than solely on tenure[200]