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]

Financial Performance - For the year ended December 31, 2024, the company's revenue was HKD 499,332,000, representing a 62.3% increase from HKD 307,363,000 in 2023[11] - The company reported a loss before tax of HKD 250,514,000 for 2024, compared to a loss of HKD 234,015,000 in 2023[11] - The company's net asset value decreased to HKD 1,799,933,000 in 2024 from HKD 2,091,674,000 in 2023[11] - The group reported a total revenue of approximately HKD 499.33 million for the year ended December 31, 2024, representing a 62.5% increase from HKD 307.36 million in 2023[24] - The gross profit for the year was approximately HKD 72.32 million, with a gross margin of 14.48%, down from 34.95% in 2023, primarily due to low-margin hardware products[26] - The company recorded a pre-tax loss of approximately HKD 250.51 million for the year, compared to a loss of approximately HKD 234.02 million for the year ended December 31, 2023[36] - The company recorded an income tax expense of approximately HKD 1.64 million for the year, compared to an income tax credit of approximately HKD 13.02 million for the previous year[36] - The company recorded a net loss attributable to the company's owners for the fiscal year of HKD (252,158,000), compared to HKD (220,931,000) in the previous year, indicating a 14.1% increase in losses[123] - The group reported a loss of HKD 252,158,000 for the year ended December 31, 2024[188] Product Development and Market Expansion - The company launched the Coolpad Y70Lite and the Daguang 3 series smartphones in collaboration with China Mobile, with the Daguang 3 featuring naked-eye 3D technology[16] - The company expanded its product line to include over ten categories such as cloud tablets, smart wearables, and smart health devices in 2024[17] - The company has established partnerships with over ten cross-border platforms, including SHEIN, TikTok, and AliExpress, to enhance its market reach[16] - The company is focusing on expanding its product line to include smart wearables, smart education, smart home, security, and health care, integrating AI, IoT, and cloud computing technologies[52] - The company plans to enhance its smartphone product line by integrating AI technology and optimizing user experience, aiming for a comprehensive transformation into a diversified ecosystem[52] - The company has completed the deep integration with the AI model "DeepSeek," enhancing product intelligence and user experience, particularly in emerging markets[53] Digital Currency and Cryptocurrency Business - The company is actively exploring opportunities in the Web 3.0 digital currency business starting from the second half of 2023[4] - Revenue from cryptocurrency business surged to HKD 97.68 million, a significant increase of 1,043.8% compared to HKD 8.54 million in the previous year[24] - The group plans to acquire a cryptocurrency mining hosting service company by 2025 to enhance its digital currency operations and achieve vertical integration[21] - The company has deployed servers in North America with an effective computing power of 1,504,800 TH/s, accumulating approximately 187.32 BTC by the end of 2024[18] - The company intends to pursue upstream acquisitions in the digital currency sector in 2025, targeting companies that provide cryptocurrency mining hosting services[55] Operational Efficiency and Cost Management - The sales and distribution expenses decreased to approximately HKD 30.17 million, a reduction of 15.5% from HKD 35.70 million in the previous year[27] - Administrative and other operating expenses increased by 9.7% to approximately HKD 298.84 million, but as a percentage of total revenue, it decreased from 88.89% in 2023 to 59.85% in 2024[28] - Operating expenses increased by 9.37% to approximately HKD 298.84 million, while the percentage of operating expenses to total revenue decreased from 88.89% to 59.85%[35] Corporate Governance and Management - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[60] - The company held four board meetings during the year, but did not hold an annual general meeting due to delays in the annual performance review[68] - The chairman and CEO roles are currently held by Mr. Chen Jia Jun, with the board believing this structure does not harm the balance of power between the board and management[63] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring they provide unbiased judgment on company matters[66] - The company has established three committees: the nomination committee, the remuneration committee, and the audit committee, each with specific responsibilities[71] - The company has mechanisms in place for internal controls and checks to ensure clear responsibilities between the board and management[59] - The remuneration committee evaluated the performance and compensation of directors and senior management, holding two meetings with full attendance[72] - The audit committee conducted three meetings, reviewing the company's financial performance and internal control systems, with all members present[76] - The nomination committee held two meetings, recommending the reappointment of directors for the upcoming annual general meeting[77] Shareholder Communication and Dividend Policy - The company emphasizes the importance of effective communication with shareholders and provides information through its website and the stock exchange[95] - The company maintains a stable and sustainable dividend policy, considering current business conditions, future income, and financial status[97] - The company does not recommend the payment of any final dividend for the fiscal year, considering its operational needs[120] - The company has not made any changes to its articles of association during the year[101] Legal and Compliance Matters - The company faced civil lawsuits from suppliers demanding repayment of overdue accounts totaling RMB 4,368,000 (approximately HKD 4,648,000)[33] - There were no legal proceedings related to corruption against the company or its employees during the year[99] - The company has established a whistleblowing policy to maintain high standards of integrity and ethics, allowing employees and stakeholders to report misconduct confidentially[100] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, particularly those affecting its operations in mainland China, Hong Kong, and the United States[140] Employee and Workforce Management - Employee costs for the year amounted to approximately HKD 105.35 million, an increase from HKD 97.33 million in 2023[178] - The group had 225 employees as of December 31, 2024, down from 299 employees in 2023[178] Related Party Transactions and Shareholder Structure - The largest shareholder, Mr. Chen Jiajun, holds 3,131,355,500 shares, representing approximately 19.12% of the issued share capital[165] - The company has confirmed that all related party transactions comply with the pricing principles and have been approved by the board[162] - The independent auditor has issued an unqualified opinion on the company's related party transactions, confirming adherence to the relevant agreements[162] Risk Management - The company has identified key risks including profit risk, supply chain management risk, and cost growth risk, which may impact its financial condition and development prospects[117] - The board is responsible for the risk management and internal control systems, which are designed to manage foreign exchange risks and provide reasonable assurance against material misstatements or losses[84] Audit and Financial Reporting - The group’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of its financial position[188] - The independent auditor's report highlighted significant uncertainties regarding the group's ability to continue as a going concern[188] - The audit committee consists of three independent non-executive directors who reviewed the group's annual performance[170]

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 673.6 million, representing an increase of approximately 6.9% compared to RMB 630.2 million for FY2023[14]. - Gross profit for the Reporting Period amounted to approximately RMB 100.7 million, compared to approximately RMB 93.4 million for FY2023[14]. - The net profit after tax for the Reporting Period was approximately RMB 49.2 million, compared to an adjusted net profit of approximately RMB 39.9 million for FY2023, excluding non-recurring listing expenses of RMB 12 million[15]. - Revenue increased from approximately RMB630.2 million for FY2023 to approximately RMB673.6 million for FY2024, representing an increase of approximately 6.9%[34]. - The increase in revenue was primarily due to a rise in the number of projects in property cleaning services during the reporting period[37]. - Cost of services rose from approximately RMB536.7 million for FY2023 to approximately RMB572.9 million for FY2024, reflecting an increase of approximately 6.7%[35]. - Gross profit for the reporting period was approximately RMB100.7 million, compared to approximately RMB93.4 million for FY2023, with a stable gross profit margin of approximately 14.9%[36]. - Other income, gains, and losses decreased from approximately RMB6.4 million for FY2023 to approximately RMB2.4 million for FY2024, a decline of approximately 62.5%[40]. - Selling and marketing expenses decreased from approximately RMB5.1 million for FY2023 to approximately RMB4.0 million for FY2024, representing a decrease of approximately 21.6%[41]. - Income tax expenses rose from approximately RMB4.5 million for FY2023 to approximately RMB10.0 million during the Reporting Period, primarily due to deferred tax effects from fair value gains on financial assets[44][50]. - Net profit increased from approximately RMB27.9 million for FY2023 to approximately RMB49.2 million during the Reporting Period, with a net profit margin rising from 4.4% to 7.3%[45][51]. - Total employee benefit expenses increased to RMB 379.9 million in FY2024 from RMB 351.3 million in FY2023, representing an increase of approximately 8.5%[88]. Cash Flow and Capital Management - Cash and cash equivalents stood at approximately RMB 92.5 million as of December 31, 2024, indicating healthy cash flow[15]. - Cash, bank balances, and restricted bank deposits were approximately RMB92.5 million as of December 31, 2024, down from RMB150.4 million as of December 31, 2023[55][56]. - The Group issued 130,980,000 new shares at a price of HK$0.305 each, raising net proceeds of approximately HK$39.35 million for acquisitions and working capital[52][53]. - The company successfully offered 414,375,000 shares at HK$0.32 per share, raising approximately HK$73.5 million in net proceeds from the global offering[71]. - As of December 31, 2024, the unutilized net proceeds amounted to HK$50.2 million, with a full utilization expected by December 2026[74]. - The establishment of new branch offices is planned to utilize 48.9% of the total net proceeds, amounting to HK$36.0 million[74]. - Capital expenditure for the Reporting Period amounted to approximately RMB18.7 million, compared to RMB11.7 million for FY2023[59][65]. Business Expansion and Strategy - The company plans to expand its presence in both existing and new markets, leveraging its experience in cleaning and maintenance services[18]. - There is an intention to replicate the business model in other regions of the PRC with strong demand for property cleaning services[18]. - The company is exploring opportunities for potential acquisitions and investments in cleaning and maintenance service providers in the Greater Bay Area[18]. - The focus will also be on tendering for cleaning services in major infrastructures expected to be completed in the near future[18]. - Future business expansion will be supported by access to capital markets for fundraising through equity and/or debt[29]. - The company aims to explore opportunities in recycling waste materials and manufacturing environmentally friendly biodegradable materials[30]. - The investment in Best Technology (Shenzhen) Inc. (BTI) represents 19.5% of the shares held, with a carrying value of RMB101,160,000, accounting for approximately 17.7% of the total assets of the Group[80][81]. - The investment in BTI generated a fair value gain of RMB37,258,000 during the reporting period[81]. - The company aims to enhance its operational capabilities in waste management through the acquisition of BTI, which aligns with its growth strategy[82][83]. Corporate Governance and Management - The company acknowledges the support from shareholders, investors, and the community as integral to its development[19]. - The listing on the Main Board of The Stock Exchange of Hong Kong Limited on December 5, 2023, marks a significant milestone for the company[12]. - The Group's strategic planning and management are overseen by experienced executives, including Mr. Li Chenghua and Mr. Chen Liming, both of whom have over 24 years of experience in the cleaning service industry[92][98]. - The company is committed to achieving good corporate governance, focusing on creating long-term sustainable growth for shareholders and delivering long-term value to all stakeholders[137]. - The Board is responsible for overall strategic planning, management, operation, and business development of the Group[139]. - The Board meets regularly to monitor business development and financial performance of the Group[140]. - The company adopted all code provisions in the Corporate Governance Code as its own code on corporate governance practices[137]. - The company complied with the code provisions set out in part 2 of the CG Code, with the exception of code provision C.2.1[138]. - The company has a structured approach to risk management and operational plans[139]. - The management is responsible for the procurement of cleaning products and equipment of the Group[140]. - The company has a dedicated marketing director overseeing tendering and marketing activities[133]. - The administrative manager is responsible for overall supervision of operations and managing internal relationships[129]. - The procurement manager supervises and manages the procurement of cleaning products and equipment[131]. - The Board comprises two executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[146]. - Four Board meetings were held during the year, with all executive Directors attending all meetings[150]. - Independent non-executive Directors provide independent views and input to support the Board's responsibilities[144]. - The Company has established mechanisms to ensure compliance with corporate governance practices and legal requirements[145]. - The Board reviews the effectiveness of risk management and internal control systems regularly[145]. - The Company emphasizes continuous professional development for Directors and senior management[145]. Director Appointments and Committees - Dr. Wang Hui appointed as independent non-executive Director on July 26, 2024, with over 25 years of experience in corporate finance and accounting[106]. - Ms. Cheung Bo Man appointed as independent non-executive Director on November 14, 2023, with over 12 years of experience in the legal industry[108]. - Ms. Yau Yin Hung appointed as independent non-executive Director on November 14, 2023, with approximately 13 years of experience in the banking industry[113]. - Mr. Xing Guojun serves as managing director of the Group, with approximately 20 years of managerial experience in the cleaning service industry[119]. - Dr. Wang is the chairperson of the audit committee and investment committee, ensuring independent judgement on key issues[106]. - Ms. Cheung is the chairperson of the remuneration committee, contributing to corporate governance[108]. - Ms. Yau is the chairperson of the nomination committee, overseeing the appointment of directors[113]. - Mr. Xing has been with the Group since November 2002, demonstrating long-term commitment and leadership[119]. - The Company has established a Nomination Committee comprising three Independent Non-Executive Directors (INEDs) to review the Board's structure and composition[174]. - The Nomination Committee is responsible for assessing the independence of INEDs and making recommendations for the appointment or re-appointment of Directors[175]. - The Remuneration Committee, comprising three INEDs, is responsible for recommending the Company's remuneration policy and structure for directors and senior management[167]. - The nomination committee held two meetings during the year ended December 31, 2024[191]. - The audit committee conducted five meetings in the year ended December 31, 2024[197]. - The investment committee met once during the year ended December 31, 2024[199]. - The audit committee is responsible for reviewing the Group's risk management and internal control systems, as well as financial reporting[193]. - The company established an audit committee comprising three independent non-executive directors[192]. - According to the Articles of Association, one-third of the directors must retire by rotation at each annual general meeting[189]. - Independent non-executive directors' terms are set for one year starting from December 5, 2023[194]. - Directors appointed to fill casual vacancies hold office until the first annual general meeting after their appointment[190]. - The Company will disclose the tenure of each existing INED if all have served more than nine years[185]. - If an INED has served more than nine years, their further appointment requires a separate resolution approved by Shareholders[184]. Employee Engagement and Development - The number of employees rose to 8,160 as of December 31, 2024, compared to 7,086 on December 31, 2023, indicating a growth of about 15.2%[88]. - The company has adopted a share option scheme to provide incentives or rewards to its staff, enhancing employee engagement and retention[88]. - Directors participated in continuous professional development activities, including training on corporate governance and directors' responsibilities[163]. - The Company ensures that one-third of all Directors retire by rotation at each annual general meeting[161]. - The Company has established a written procedure for Directors to seek external independent professional advice at reasonable costs[156]. - The Company has adopted a standard code of conduct for securities trading by Directors and related employees[170].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 25% year-over-year growth[1]. - The company reported a net profit margin of 15%, indicating strong operational efficiency and cost management[10]. - The group recorded a net profit of approximately RMB 0.1 million in FY2024, a decrease of approximately RMB 22.5 million or 99.5% from RMB 22.6 million in FY2023[47]. - The overall gross profit decreased by approximately RMB 16.9 million or 19.7% to about RMB 68.6 million in fiscal year 2024, with a gross margin decline from approximately 33.0% to 25.0%[38]. - Revenue from the integrated IT solutions service segment increased by approximately RMB 46.0 million or 32.6% to RMB 187.1 million in fiscal year 2024, driven by increased customer demand[36][38]. - Revenue from independent IT services decreased by approximately RMB 28.4 million or 67.1% to RMB 13.9 million in fiscal year 2024, primarily due to reduced customer demand[37]. - The company recorded revenue of approximately RMB 274.7 million for the fiscal year 2024, representing a growth of about 6.0% compared to RMB 259.1 million in fiscal year 2023[36]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[5]. - The company aims to expand its global market presence, particularly targeting the ASEAN market, focusing on smart cities and educational informationization[33]. - New product launches are expected to contribute an additional $100 million in revenue, with a focus on innovative technology solutions[4]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 30%[3]. Research and Development - Research and development expenses increased by 20%, reflecting the company's commitment to innovation and new technology[7]. - The company established a cloud computing R&D center in Shenzhen in February 2024 and an AI R&D center in Beijing in July 2024 to enhance its technological capabilities[31]. - The company plans to launch a new generation of intelligent computing integrated machines and enhance its investment in AI large models and domestic information technology innovation applications[33]. - The company is focusing on technological innovation as a core driver, integrating AI and cloud computing with the real economy[29]. Environmental, Social, and Governance (ESG) Initiatives - The board of directors emphasized the importance of environmental, social, and governance (ESG) initiatives in future business strategies[9]. - The ESG report details the company's efforts and achievements in sustainability and social responsibility during the fiscal year ending December 31, 2024[172]. - The company is committed to environmental sustainability and compliance with relevant environmental laws and regulations[72]. - The company has established communication channels to effectively address stakeholder feedback, which is crucial for sustainable development[176]. - The company has identified key ESG issues through an annual materiality assessment, focusing on customer privacy and data protection, employee health and safety, and labor standards[184]. Operational Efficiency - The company plans to implement a new customer engagement strategy, aiming to improve customer retention rates by 10%[8]. - Sales expenses decreased by approximately RMB 0.6 million or 9.1% to about RMB 6.5 million in fiscal year 2024, mainly due to reductions in employee costs and marketing expenses[40]. - Administrative expenses decreased by approximately RMB 16.1 million or 38.7% from RMB 41.7 million in FY2023 to RMB 25.6 million in FY2024[41]. - Financial costs rose by approximately RMB 1.6 million or 15.2% from RMB 10.5 million in FY2023 to RMB 12.1 million in FY2024, mainly due to increased average bank and other loan balances[45]. Corporate Governance - The board of directors consists of nine members, including six executive directors and three independent non-executive directors[128]. - The company has established three committees under the board: the audit committee, remuneration committee, and nomination committee, each with clear written terms of reference[138]. - The audit committee consists of three members, with the chairman possessing appropriate professional accounting qualifications[139]. - The company has adopted a written guideline for securities trading by employees who may be aware of non-public price-sensitive information, with no violations reported[127]. Employee and Stakeholder Relations - The group employed approximately 180 employees as of December 31, 2024, providing competitive compensation and benefits[55]. - The company aims to achieve a more balanced gender ratio among employees and will continue to monitor and evaluate its diversity policy[146]. - The company maintains good relationships with employees, customers, and suppliers, with no significant disputes reported during the period[71]. Financial Position and Investments - The group’s debt-to-equity ratio as of December 31, 2024, is approximately 69.9%, an increase from 57.9% as of December 31, 2023[58]. - The group has no significant contingent liabilities as of December 31, 2024[60]. - The group has not engaged in any significant investments or acquisitions during the reporting period[75]. - The group made charitable donations of approximately RMB 0.2 million during the reporting period, compared to none in the 2023 fiscal year[74].

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 company recorded other income and gains of HKD 10,873,000, down from HKD 49,816,000 in the previous year[5]. - The income tax expense for the year ended December 31, 2024, was HKD 8,327,000, compared to HKD 4,154,000 for 2023, reflecting a significant increase[25]. - The basic loss per share for the year ended December 31, 2024, was HKD (124,383,000), while the basic profit for 2023 was HKD 47,293,000, indicating a substantial decline in profitability[29]. - The total borrowings at the end of the reporting period were approximately HKD 389,500,000, an increase from approximately HKD 364,700,000 in the previous year[52]. - The company's cash and bank balances at the end of the reporting period were approximately HKD 4,600,000, down from approximately HKD 9,800,000 in the previous year[52]. Assets and Liabilities - Total assets decreased to HKD 915,921,000 from HKD 1,275,209,000 year-over-year, indicating a reduction in current assets[7]. - The company's non-current assets decreased to HKD 39,799,000 from HKD 51,076,000, reflecting a decline in property, plant, and equipment[7]. - The company's total equity decreased to HKD 354,665,000 from HKD 500,138,000, indicating a significant reduction in shareholder equity[8]. - Trade and other receivables decreased to HKD 911,212,000 from HKD 1,135,753,000, showing a decline in receivables[7]. - Trade receivables decreased to HKD 238,477,000 in 2024 from HKD 396,841,000 in 2023, showing a reduction 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 decline of about 20%[31]. - The accumulated impairment for trade receivables increased to HKD 95,216,000 in 2024 from HKD 41,835,000 in 2023, indicating a rise of approximately 128%[33]. - The total trade payables and notes payable decreased to HKD 165,687,000 in 2024 from HKD 419,042,000 in 2023, reflecting a reduction of about 60%[34]. Employee Costs - Total employee costs in 2024 were HKD 17,364, an increase of 72.2% from 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]. Corporate Changes - The company has undergone a name change from "China Finance Investment Holdings Limited" to "Congyu Intelligent Agricultural Holdings Limited" effective June 19, 2024[9]. - The company changed its name to Congyu Intelligent Agricultural Holdings Limited effective July 15, 2024[57]. Market and Operations - The company has over 90% of its non-current assets and revenue located in China, indicating a strong reliance on the Chinese market[18]. - 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 has established long-term stable partnerships with multiple nearby farms and agricultural companies to expand its agricultural base, ensuring food safety and supply for 120 million people in the Greater Bay Area[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]. - The company is seeking vertical integration business opportunities to increase revenue sources, including providing distribution services for agricultural products, seafood, and meat products in China[69]. Governance and Compliance - The company has complied with the corporate governance code, with some deviations noted regarding the attendance of independent non-executive directors at the annual general meeting[71][72]. - The roles of the chairman and CEO are clearly separated, with the chairman leading the board in policy and strategy formulation, while the CEO is responsible for executing board-approved decisions[73]. - The company has established internal control systems to safeguard shareholder investments and company assets, ensuring effective risk management[75]. - The company has adopted an anti-corruption policy and established a reporting process to encourage employees to report misconduct in a safe and confidential environment[76]. - The board is responsible for evaluating and determining the nature and extent of risks acceptable to the group in achieving its strategic objectives[77]. - The audit committee continuously reviews significant risk management and internal control systems, including financial, operational, and compliance controls[78]. - The group has established risk management procedures to address all significant risks related to its business, with strategies categorized into risk retention, avoidance, sharing, and transfer[77]. - The internal control system is designed to minimize adverse impacts from risks associated with business objectives, providing reasonable but not absolute assurance against material misstatements or losses[78]. - The audit committee consists of three independent non-executive directors, who review the group's consolidated performance and accounting principles during the reporting period[80]. - The external auditor has confirmed that the financial figures for the year ending December 31, 2024, are consistent with the group's consolidated financial statements[81]. Future Plans and Announcements - The company plans to continue controlling costs and leveraging existing resources to enhance the development potential of agricultural products and expand its customer base[45]. - The company will suspend shareholder registration from May 28, 2025, to June 2, 2025, to facilitate attendance at the annual general meeting[82]. - The company plans to publish its annual results and report on its website and the stock exchange's website at an appropriate time[83]. - The board meeting to consider and approve the annual results for 2024 is scheduled for April 22, 2025[84]. - Trading of the company's shares was suspended on April 1, 2025, pending the announcement of the annual results, with a request for resumption submitted for April 23, 2025[85].

Financial Performance - The company achieved a revenue of approximately RMB 1,365.1 million for the year ended December 31, 2024, an increase of about RMB 51.8 million or approximately 3.9% compared to RMB 1,313.3 million in 2023[8]. - Gross profit was approximately RMB 349.6 million, up by about RMB 13.4 million or approximately 4.0% from RMB 336.2 million in the previous year[8]. - Net profit after tax decreased to approximately RMB 86.6 million, down by about RMB 27.5 million or approximately 24.1% from RMB 114.1 million in 2023[8]. - The property management service revenue reached approximately RMB 1,077.9 million, an increase of about RMB 90.4 million or approximately 9.2% from RMB 987.5 million in 2023[22]. - Community value-added service revenue rose by approximately RMB 4.5 million or 1.8% to approximately RMB 258.0 million for the year ended December 31, 2024[31]. - Non-owner value-added service revenue decreased by approximately RMB 43.1 million or 59.6% to approximately RMB 29.2 million for the year ended December 31, 2024[33]. - The gross profit from property management services increased by approximately RMB 20.4 million or about 9.3% to approximately RMB 238.8 million in 2024[46]. - The gross profit from community value-added services increased by approximately RMB 6.4 million or about 6.5% to approximately RMB 105.1 million in 2024, with the gross profit margin rising from 38.9% to 40.7%[47]. - The gross profit from non-owner value-added services decreased by approximately RMB 13.4 million or about 69.8% to approximately RMB 5.8 million in 2024, with the gross profit margin dropping from 26.5% to 19.8%[48]. Operational Growth - The total number of properties managed increased to 394, with a total managed area of approximately 62.2 million square meters, representing an increase of about 6.4 million square meters or approximately 11.5% from 2023[9]. - The total number of contracted projects rose to 422, with a total contracted area of approximately 70.2 million square meters, an increase of about 5.5 million square meters or approximately 8.5% compared to 2023[9]. - The number of managed projects increased from 335 to 394, contributing to the growth in property management service revenue[35]. - The company expanded its geographical coverage to 45 cities across 18 provinces and municipalities, enhancing its market presence significantly[25]. - The company actively pursued market expansion, adding over 80 new contracted projects during the year, showcasing strong market competitiveness and growth potential[22]. Corporate Governance - The board consists of eight members, including two executive directors, two non-executive directors, and four independent non-executive directors as of December 31, 2024[98]. - The company has adopted and complied with the Corporate Governance Code as per the Listing Rules Appendix C1 for the year ending December 31, 2024[95]. - The board has ensured that at least three independent non-executive directors are appointed, with one possessing appropriate professional qualifications or accounting expertise as required by Listing Rules 3.10(1) and 3.10(2)[101]. - The company has arranged appropriate liability insurance for directors and senior management to cover compensation liabilities arising from corporate activities for the year[97]. - The board is responsible for overseeing the company's business, strategic decisions, and performance, ensuring objective decisions in the best interest of the company[97]. Employee and Shareholder Engagement - The employee cost totaled approximately RMB 425.8 million for the year ended December 31, 2024, down from RMB 446.5 million in 2023, with a workforce of 4,951 employees[71]. - The company has established various communication channels for shareholders to directly engage with the board[153]. - All resolutions presented at the shareholders' meetings are subject to voting in accordance with listing rules, with results published promptly[154]. - Each director participated in at least 15 hours of relevant professional training to update their knowledge and skills during the year[106]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's main business in property management services in China and includes key environmental performance indicators[160]. - The company aims to expand the scope and depth of its sustainability performance monitoring in the future[160]. - The company has established a comprehensive environmental management system and obtained ISO 14001:2015 certification, ensuring compliance with environmental laws and regulations[191]. - The company has identified nine key issues for focus, including energy consumption, employee welfare, occupational health and safety, and customer data privacy, which will be highlighted in the report[190]. - The company has implemented risk mitigation measures and internal controls to manage identified environmental, social, and governance risks[179]. Sustainability and Environmental Performance - The company’s nitrogen oxide emissions decreased significantly from 203.18 kg in 2023 to 29.43 kg in 2024, representing a reduction of approximately 85.5%[196]. - Total greenhouse gas emissions (Scope 1, 2, and 3) dropped from 57,580.14 tons CO2 equivalent in 2023 to 38,676.21 tons CO2 equivalent in 2024, a decrease of about 32.8%[196]. - The company achieved a greenhouse gas reduction of 1.27 tons CO2 equivalent in 2024, up from 0.9 tons in 2023, indicating a positive trend in emissions management[196]. - The total energy consumption for the company reached 93,526.45 thousand kWh in 2024, compared to 90,536.66 thousand kWh in 2023, marking an increase of about 3.3%[200]. - The company encourages employees to use video or phone conferencing instead of business travel to reduce greenhouse gas emissions[197].