Financial Performance - The company achieved a revenue of RMB 4.31 billion in 2024, maintaining a record of positive same-store sales growth for 30 consecutive quarters[10]. - Total revenue for the fiscal year ended December 31, 2024, was RMB 4,314.1 million, an increase of 41.4% compared to RMB 3,050.7 million in 2023[22]. - The adjusted net profit for 2024 was RMB 1.312 billion, marking the first year of positive after-tax reported net profit[10]. - The adjusted net profit for the fiscal year was RMB 131.2 million, a significant increase of 1,394.2% from RMB 8.8 million in 2023[22]. - Net profit for FY2024 was RMB 55.2 million, compared to a net loss of RMB 26.6 million in FY2023[52]. - The adjusted EBITDA for 2024 was RMB 495.16 million, up from RMB 301.74 million in 2023, reflecting a growth of 64.2%[59]. - The adjusted EBITDA margin improved to 11.5% in 2024, compared to 9.9% in 2023[59]. - Store-level EBITDA reached RMB 831.37 million in 2024, an increase from RMB 576.62 million in 2023, representing a growth of 44.1%[61]. - The store-level EBITDA margin was 19.3% in 2024, slightly up from 18.9% in 2023[61]. Store Expansion - A total of 240 new stores were opened in 2024, bringing the total to 1,008 stores across 39 cities by December 31, 2024[11]. - The company plans to open approximately 300 new stores in 2025, with 82 already opened and 26 under construction as of March 14, 2025[13]. - The number of cities entered increased to 39 as of December 31, 2024, up from 29 in the previous year[18]. - The company opened 240 new stores during the reporting period, bringing the total to 1,008 stores by the end of the year, with 371 located in Shanghai and Beijing, and 637 in new growth markets[24]. Membership Growth - The membership program grew from 14.6 million at the end of 2023 to 24.5 million by December 31, 2024, adding nearly 10 million new members in one year[12]. - Membership numbers grew to 24.5 million, up from 19.4 million in the previous year[20]. - Membership increased from 14.6 million as of December 31, 2023, to 24.5 million as of December 31, 2024, with member contributions to total revenue rising from 59.2% to 64.5%[27]. Operational Efficiency - The average payback period for the 80 new stores opened in 18 new cities from December 2023 to December 2024 was within 12 months[11]. - Same-store sales growth for the fiscal year was 2.5%, compared to 8.9% in the previous year[19]. - EBITDA at the store level reached RMB 831.4 million, up 44.2% from RMB 576.6 million in the previous year[22]. - The EBITDA margin at the store level improved to 19.3%, an increase of 0.4 percentage points from 18.9%[22]. - The operating profit margin at the store level improved to 14.5%, an increase of 0.7 percentage points from 13.8%[22]. Cost Management - Raw material and supply costs increased by 39.8% to RMB 1,169.8 million, but the percentage of these costs to revenue decreased from 27.4% to 27.1%[36]. - Employee compensation expenses rose by 28.1% to RMB 1,509.5 million, compared to RMB 1,178.7 million in the fiscal year 2023[38]. - Rent expenses rose to RMB 428.2 million in FY2024, a 39.2% increase from RMB 307.7 million in FY2023, while rent expenses as a percentage of revenue decreased from 10.1% to 9.9%[41]. - Utilities expenses rose to RMB 164.1 million in FY2024, a 42.9% increase from RMB 114.8 million in FY2023, with utilities expenses as a percentage of revenue remaining stable[44]. - Advertising and promotion expenses increased to RMB 217.6 million in FY2024, a 36.7% increase from RMB 159.2 million in FY2023, while the percentage of total revenue decreased from 5.2% to 5.0%[46]. Employee Growth - As of December 31, 2024, the total number of full-time employees is 9,160, an increase of 40.0% from 6,536 on December 31, 2023[75]. - The total employee cost for the fiscal year 2024 is RMB 1,509.5 million, up from RMB 1,178.7 million in 2023, representing a year-over-year increase of 28.1%[76]. - The company has 19,640 part-time employees as of December 31, 2024, compared to 15,635 on December 31, 2023, indicating a growth of 25.0%[75]. Awards and Recognition - The company received several awards in 2024, including the Best Digitalization Award and the title of Best Employer from Mercer[12]. - The company received the "2024 Best Employer" award from Mercer, marking the third consecutive year of this recognition[77]. Corporate Governance - The board did not recommend the distribution of a final dividend for the 2024 fiscal year, similar to 2023[101]. - The company has no pledged assets or contingent liabilities as of December 31, 2024[72][73]. - The company has not entered into any derivative instruments to hedge foreign exchange risks but will monitor the situation closely[74]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2024[71]. Future Plans and Investments - The company has not made or held any significant investments during the fiscal year 2024[70]. - The company has no significant future investment or capital asset plans beyond what is disclosed in the management discussion and analysis section[80]. - The expected timeline for utilizing the net proceeds for store expansion has been extended from the end of 2025 to the end of 2026[191]. Social Responsibility - The company is committed to social responsibility, employee welfare, environmental protection, and community contributions[197]. - The company made charitable donations in the form of food, amounting to approximately RMB 22,300 during the reporting period[198]. - There are no significant lawsuits or claims threatening the company or its subsidiaries as of December 31, 2024[199]. - The company has complied with all relevant laws and regulations without any significant violations during the reporting period[200].

Financial Performance - The company's revenue for 2024 reached RMB 1,790,774 thousand, representing a year-on-year growth of 50.2%[15] - The adjusted net loss for 2024 was RMB 64,331 thousand, a decrease of 294.6% compared to the previous year[16] - Gross profit for 2024 was RMB 127,689 thousand, with a gross margin of 7.1%[8] - Total revenue for the reporting period was approximately RMB 1,790,774 thousand, representing a year-on-year growth of about 50.2% compared to RMB 1,192,040 thousand in the same period last year[32] - The significant revenue increase was primarily driven by business expansion and enhanced reputation among existing and potential clients, along with a substantial rise in revenue from Douyin business[32] - The overall gross profit for the company was approximately RMB 127,689 thousand, reflecting an increase of about 8.4% year-on-year from RMB 117,846 thousand in the same period of 2023[39] - The company's net loss for the reporting period was RMB 185,572 thousand, a decline of about 661.4% compared to a net profit of RMB 33,055 thousand in the same period of 2023[48] Assets and Liabilities - The total assets increased to RMB 838,450 thousand in 2024, up from RMB 775,029 thousand in 2023[12] - The total liabilities rose to RMB 356,045 thousand in 2024, compared to RMB 197,013 thousand in 2023[12] - The liquidity ratio for 2024 was 2.1, down from 2.9 in 2023, indicating a decrease in short-term financial health[12] - Total equity as of December 31, 2024, was RMB 482,405 thousand, down from RMB 578,016 thousand as of December 31, 2023[52] - Current assets increased to RMB 744,963 thousand as of December 31, 2024, compared to RMB 579,342 thousand in 2023, primarily due to an increase in accounts receivable[53] Operational Strategy - The company plans to enhance its focus on large clients and optimize operational capabilities to reduce customer acquisition costs in 2025[19] - The collaboration with the Douyin platform has been deepened to help clients lower customer acquisition costs and achieve multi-channel sales growth[17] - The company aims to leverage short videos, live streaming, and influencer distribution to boost client sales in the upcoming year[19] - The company focuses on new consumer verticals and integrated marketing services, which include content marketing, digital marketing, public relations planning, media advertising, and SaaS interactive marketing capabilities[24] - The company aims to leverage AI technology to empower full-chain marketing, enhancing both marketing and capital capabilities[30] Expenses and Costs - The cost of sales for the reporting period was approximately RMB 1,663,085 thousand, an increase of about 54.8% year-on-year from RMB 1,074,194 thousand in the same period of 2023[34] - Sales and marketing expenses amounted to approximately RMB 53,109 thousand, a significant increase of about 741.8% year-on-year from RMB 6,309 thousand in the same period of 2023[40] - The provision for impairment losses on accounts receivable and other financial assets was approximately RMB 128,837 thousand, a year-on-year increase of about 96.4% from RMB 65,607 thousand in the same period of 2023[42] - Other income for the reporting period was approximately RMB 7,749 thousand, a decrease of about 26.4% year-on-year from RMB 10,528 thousand in the same period of 2023[43] Management and Governance - The management team is experienced, with the founder and chairman having over 15 years of experience in the marketing industry[31] - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight[112] - The board consists of nine members, including four executive directors, one non-executive director, and four independent non-executive directors, with a gender composition of five female and four male directors[161] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[176] - The audit committee is chaired by an independent non-executive director with appropriate professional qualifications[177] Share Capital and Fundraising - A total of 400,000,000 shares were offered at HKD 0.15 per share, representing a discount of approximately 34.50% from the market price at the time of the underwriting agreement[65] - The net proceeds from the fundraising activities amounted to approximately HKD 267.30 million, with 19.3% (approximately HKD 51.6 million) reallocated for establishing a joint venture[63] - The company plans to allocate 14.7% (approximately HKD 39.2 million) of the net proceeds to enhance the development of its SaaS interactive marketing platform[64] - The company announced a share consolidation, merging every 20 existing shares into 1 new share, which will increase the authorized share capital from HKD 1,000,000 to HKD 2,000,000[71] Corporate Social Responsibility - The company is committed to social responsibility, promoting employee welfare, and sustainable growth through environmental protection measures[107] - The company has implemented measures to reduce its environmental impact, such as energy conservation and promoting paperless operations[107] - The company is committed to creating effective and sustainable benefits for local communities through initiatives such as corporate philanthropy and employee volunteer work[157] Risks and Compliance - The company faces significant risks including reliance on clients from the fast-moving consumer goods, footwear, and real estate sectors, which could impact operations[110] - The company has implemented various policies and systems to ensure compliance with anti-corruption and anti-money laundering regulations[190] - The board is responsible for risk management and internal control systems, which are reviewed annually for effectiveness[187] Employee and Director Information - As of December 31, 2023, the company had a total of 131 employees, emphasizing the importance of attracting and retaining qualified personnel[62] - The total employee cost for the reporting period was RMB 25,917,000, an increase from RMB 22,643,000 in the same period last year, primarily due to fluctuations in employee numbers[62] - The total remuneration paid to directors was approximately RMB 4,182 thousand[180] - The total remuneration for the five highest-paid individuals (excluding directors) was approximately RMB 1,330 thousand for the same fiscal year[180]

Financial Performance - For the year ended 31 December 2024, the Group reported revenue of RMB 40,770,075, representing a 94.5% increase compared to RMB 20,960,968 in 2023[18]. - Gross profit for the same period was RMB 6,235,537, which is a 137.0% increase from RMB 2,630,992 in 2023[18]. - The loss attributable to owners of the parent decreased slightly to RMB (7,863,349) from RMB (7,991,050), reflecting a 1.6% improvement[18]. - The Group recorded a loss attributable to owners of the parent of approximately RMB 7.863 billion due to impairment provisions and fair value losses on investment properties[29][32]. - The Group achieved recognised property sales income of approximately RMB 38.843 billion in 2024, representing a year-on-year increase of approximately 103.4%[68]. - The average selling price of properties rose to RMB 14,907 per sq.m. in 2024, reflecting a significant year-on-year increase of approximately 82.8%[68]. - The total revenue for 2024 increased by approximately 94.5% to approximately RMB 40.770 billion from approximately RMB 20.961 billion in 2023[80]. - Property management fees increased by approximately 3.2% to approximately RMB 1.202 billion in 2024, driven by an increase in the number and floor area of properties under management[82]. - Rental income grew by approximately 9.2% to approximately RMB 578.634 million in 2024, mainly due to contributions from newly opened shopping malls[83]. Assets and Liabilities - Total assets as of 31 December 2024 were RMB 128,285,226, down 23.6% from RMB 167,889,687 in 2023[20]. - Cash and bank balances decreased by 37.3% to RMB 4,045,017 from RMB 6,448,926 in 2023[20]. - Total liabilities decreased by 20.1% to RMB (117,715,353) from RMB (147,407,361) in 2023[20]. - Total equity fell by 48.4% to RMB 10,569,873 compared to RMB 20,482,326 in 2023[20]. - The Group's total assets pledged to secure bank and other borrowings and domestic bonds amounted to RMB 63,437,677,000 in 2024, slightly down from RMB 63,579,208,000 in 2023[121]. - Total borrowings as of December 31, 2024, amounted to RMB 35,418,566,000, a slight decrease from RMB 35,907,119,000 in 2023[116]. - As of December 31, 2024, the net gearing ratio was approximately 296.8%, a significant increase from 143.8% as of December 31, 2023[122][125]. Sales and Market Performance - Contracted sales amounted to approximately RMB 11.226 billion, with a contracted sales area of approximately 1.23 million sq.m, representing a year-on-year decrease of approximately 59.6% and 46.5%, respectively[30][33]. - The four cities with the largest contracted sales were Hangzhou, Beijing, Nanjing, and Suzhou, accounting for approximately 40.3% of the total contracted sales amount[31]. - The Yangtze River Delta Economic Zone accounted for approximately 41.3% of the total contracted sales amount, with sales of approximately RMB 4.640 billion[64]. - The sales of newly developed national commodity houses in 2024 amounted to approximately RMB 9,675 billion, a year-on-year decrease of 17.1%[49]. - The sales area of newly developed national commodity houses was approximately 974 million sq.m., representing a year-on-year decrease of 12.9%[49]. Operational Strategy and Development - The Company aims to maintain a proactive and prudent development strategy to secure its regional leading position[6]. - The Group plans to enhance property project management, ensure project progress, and improve product quality to meet the demand for improved properties[36][38]. - The Group will deepen regional business management of shopping mall operations and enhance operational performance through targeted strategies[40]. - The Group prioritizes "Ensuring Delivery" in its business operations, aiming for excellence and strengthening competitiveness in its "Two Wings" business[41]. - The Group's focus on long-term rental apartments and shopping malls is part of its strategy to enhance operational efficiency[65]. Governance and Management - The company has a strong management team with over 29 years of real estate development experience among its founders, which supports strategic decision-making[170][171]. - The company has established subsidiaries in the PRC, Hong Kong, the Cayman Islands, and the British Virgin Islands, indicating a broad market presence[174][176]. - The company emphasizes the importance of corporate governance and has established various committees to ensure compliance and effective management[182][183]. - The company has a corporate governance committee chaired by Huang Youquan, emphasizing its focus on governance practices[173]. - The independent non-executive director, Ting Leung Huel Stephen, has over 40 years of experience in accounting and auditing, contributing to the board's expertise[178]. Employee and Customer Relations - As of December 31, 2024, the Group employed a total of 6,201 employees, a decrease from 6,845 employees in 2023, with total employee costs approximately RMB 660,062,000 compared to RMB 943,489,000 in 2023[136]. - The male-to-female ratio in the workforce is approximately 1:0.57, with 3,950 male employees and 2,251 female employees, which the Board considers satisfactory[136]. - The Group emphasizes customer satisfaction and has conducted a residential customer satisfaction survey to gather feedback and improve project quality and services[149]. - The company maintains strong relationships with existing and potential clients, emphasizing customer satisfaction through various feedback channels and surveys[153]. Future Outlook - Looking forward to 2025, the Group expects the real estate market to continue to bottom out, with anticipated government policies to boost market confidence[35][38]. - The real estate market in China is expected to bottom out due to government policies aimed at stabilizing the market[48].

Financial Performance - As of December 31, 2024, Anhui Sihai reported total assets of approximately RMB 119 million and liabilities of about RMB 70.43 million, with equity attributable to owners of approximately RMB 48.8 million[14]. - The revenue generated during the same period was approximately RMB 158 million, resulting in an operating loss of RMB 1.3 million[14]. - The total revenue for the group in 2024 was RMB 442 million, representing a year-on-year growth of 38.2%[15]. - The new business segments, liquor sales and education/training services, performed exceptionally well, with liquor sales revenue reaching RMB 102 million, a year-on-year increase of 95.3%, and education/training services revenue reaching RMB 67.91 million, a year-on-year increase of 146.2%[15]. - Anhui Sihai's assets grew by 27.67% year-on-year, but its revenue only increased by 2.22%, and its profit decreased by 169.05% due to asset impairment losses[15]. - The assets of Anhui Sihai accounted for 20% of the group's total assets, while its revenue contributed 35.78% to the group's total revenue, but its profit only represented 0.05% of the group's total profitability[15]. Legal Matters - The court issued an asset preservation order on November 5, 2024, freezing the 65% equity stake in Anhui Sihai held by Yangzhou Huayin Commercial Chain, valued at RMB 32.5 million[3]. - The board found no factual or legal basis for the claims made by Nanjing Haihuaitong regarding the zero-cost transfer of the 65% equity stake[5]. - Nanjing Haihuaitong's lawsuit was dismissed by the court on April 18, 2025, rejecting all claims made against Yangzhou Huayin Commercial Chain[10]. - The ongoing litigation with Huainan Jianle involves a claim for RMB 61.08 million, with potential implications for the pledged equity in Anhui Sihai[12]. - The company intends to apply to the court to lift the restrictions on the 65% equity stake in Anhui Sihai following the court's supportive ruling[10]. - The group is committed to updating any developments regarding the Haihui Tong lawsuit and Huainan Jianle lawsuit[16]. Corporate Governance - The transfer of rights and obligations included the assumption of significant debts by Yangzhou Huayin Commercial Chain, which the board believes does not harm creditor interests[5]. - The estimated payment obligation under the supplementary agreement related to Anhui Sihai's 65% equity stake is approximately RMB 53.56 million, subject to final negotiations with Mr. Jin[11]. - The board of directors includes four executive directors and three independent non-executive directors, ensuring a diverse governance structure[17]. Asset Management - Anhui Sihai continues to operate normally, and the asset preservation order has not significantly impacted the company's business operations or financial condition[14]. - The potential sale of 65% of Anhui Sihai's equity would not affect the company's equity structure, business operations, assets, or liabilities significantly[15]. - The net asset value of Anhui Sihai was reported as (RMB 40,583,155), with non-controlling interests at RMB 14,204,104 and other current liabilities at RMB 53,560,000[15]. - The estimated proceeds from the potential sale of Anhui Sihai were RMB 27,180,950, leading to a post-sale net asset value of RMB 223,227,982[15].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue increase of 13% to approximately HKD 1,968,000,000 compared to the previous year[9]. - The group reported a loss attributable to shareholders of approximately HKD 118,000,000, an improvement from a loss of HKD 239,000,000 in 2023[9]. - The group’s consolidated revenue for the fiscal year ending December 31, 2024, increased by 13% to approximately HKD 1,968,000,000, compared to HKD 1,740,000,000 in 2023[47]. - The revenue from the dyeing and finishing machinery segment was approximately HKD 1,527,000,000, accounting for 78% of the group's total revenue, representing a 19% increase from HKD 1,288,000,000 in the previous year[48]. - The stainless steel casting segment generated revenue of approximately HKD 385,000,000, accounting for 19% of total revenue, a slight decrease of 2% from HKD 394,000,000 in the previous year[60]. - The stainless steel trading segment generated revenue of approximately HKD 56 million, representing 3% of the group's total revenue, a slight decline of 3% from HKD 58 million in the previous year[68]. - The basic and diluted loss per share for the year was HKD 0.1076, compared to HKD 0.2169 in the previous year[47]. Market and Sales Strategy - The sales breakdown for 2024 shows that dyeing machinery accounted for 78% of total revenue, stainless steel castings for 19%, and stainless steel materials for the remaining 3%[9]. - In 2024, the revenue from mainland China represented 43% of total sales, while Hong Kong contributed 3%[21]. - The company aims to increase its market share by 3% through targeted marketing strategies[9]. - The company plans to increase R&D investment to develop high-cost performance products that meet market demand[12]. - The company will focus on technology upgrades and customized solutions in the dyeing machinery manufacturing sector to meet evolving customer needs[10]. - Market expansion plans include entering two new international markets by Q3 2024[6]. Operational Efficiency and Cost Management - The company aims to enhance production efficiency and expand capacity to ensure stable business operations[10]. - Operational efficiency improvements are projected to reduce costs by 5% in the next quarter[8]. - The company is implementing cost control measures across all operational areas to maintain cash flow and manage financial stability[52]. - The group plans to enhance operational efficiency and control costs while continuing to focus on core business development and product design improvements[73]. Research and Development - The company is investing in new technology development, allocating $10 million for R&D in the upcoming fiscal year[5]. - The company plans to increase investment in R&D to provide higher value products and improve production efficiency through automation and digital transformation[59]. Corporate Governance - The board of directors is responsible for strategic direction and overall policy, ensuring effective leadership and monitoring of the company's affairs[87]. - The board has established three committees: the Nomination Committee, the Remuneration Committee, and the Audit Committee, each with clear written terms of reference[99]. - The company conducts regular reviews of its corporate governance policies and practices to ensure compliance with legal and regulatory requirements[98]. - The company promotes its core values and strategies across all levels of employees, integrating them into business decisions and operations[92]. Financial Management and Stability - The group’s debt ratio increased to 96% as of December 31, 2024, compared to 89% the previous year[84]. - The current ratio as of December 31, 2024, was 0.59, slightly up from 0.56 the previous year[84]. - The net cash inflow from operating activities for the fiscal year ending December 31, 2024, was approximately HKD 165 million[83]. - Employee costs for the fiscal year 2024 amounted to approximately HKD 521 million, accounting for 26% of operating revenue, down from 32% in the previous year[82]. Future Outlook - The company anticipates moderate global economic growth in 2025, supported by the restructuring of manufacturing industry supply chains in developing economies[12]. - The company acknowledges the ongoing challenges posed by geopolitical tensions and trade protectionism affecting global economic recovery[12]. - The group expects business conditions to remain very challenging this year, with a negative market outlook impacting overseas markets[79]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[127]. - The board will consider various factors, including financial performance and capital expenditure needs, when deciding on future dividend declarations[133]. - The board has decided not to recommend any final dividend for the year ending December 31, 2024, resulting in no dividends being declared for the entire year[137].

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

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

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

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

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